Cost and Benefit Analysis Between Sub-Contract System and Procurement of Machinery by Considering Production Costs (Case Study of UD. Wis Serangkai Teknik)

Andoyo, M. (2022) Cost and Benefit Analysis Between Sub-Contract System and Procurement of Machinery by Considering Production Costs (Case Study of UD. Wis Serangkai Teknik). Undergraduate thesis, Universitas 17 Agustus 1945 Surabaya.

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Abstract

A company certainly has a strategy in developing its business. One form of seriousness to make improvements is to plan investments both in terms of machinery or supporting operations.UD.Wis Serangkai Teknik is an UKM located in Gresik Regency, East Java. The resulting product is grated coconut.As demand increases, several problems arise, including late product delivery.Based on field observations, the basic obstacle experienced by UD is that it does not have the means of production and the sub-contracting process is considered inefficient.Thus, the authors are interested in conducting research on this subject with the title "Cost and Benefit Analysis between the sub-contract system and the procurement of machinery by considering production costs (case study of UD. Wis Serangai Teknik)".The aim is to provide alternative machine procurement solutions, by identifying between costs and benefits when using a sub contracting system and machine procurement is carried out or implemented.The achievement to be achieved is to obtain a comparison of production costs and capacity in these two conditions and also to obtain a feasibility status on the proposed machine procurement.After doing research and calculations as well as analysis, it was found that the results of the research on production costs incurred during sub-contracting were Rp.313,343 while the procurement of machinery was Rp.301,281 and production capacity when procurement was carried out increased so that the procurement of machinery was said to be more profitable. The results of the feasibility study, the machine procurement plan is said to be feasible. Obtained from the results of the Net Present ValueIDR 67,925,382, the percentage of Return On Investment is 34%, and the Payback period procurement capital 2 months 22 days.

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