FEASIBILITY STUDY OF CLOTHING MANUFACTURER OF UD SONY KONVEKSI

• Main Author: Zakiy Kumaralitha, Wyalapuspa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/39505
• Institution: Institut Teknologi Bandung

UD Sony Konveksi (SONY) is a producer, retailer, and wholesaler of school uniform in Pasar Klewer Solo, Cental Java. They have changed the market segment in 2015, from providing daily wear clothes and uniform into providing uniform only, from major company loss due to a force majeure. Ibu Hartiningsih, the owner, co-founder, and general manager, is planning to avoid long-term debt and its usury (riba). In the end of last year, the long-term debt owed by the company had been paid off completely. Facing difficulties in their business aspects, Ibu Hartiningsih realized the ineffective and unorganized business system that the company currently adopts, and she is planning to revamp the business by redefining the company’s goal and investing on professional business management. Therefore, SONY is planning to invest on new fixed asset and new business system. The fixed asset investment is comprised of replacing the unproductive existing machinery with the new one, whilst the new business system investment is comprised of the restructuration of company organization. This research study will evaluate the investment plan of SONY using feasibility analysis, capital budgeting techniques, and risk analysis using Monte Carlo simulation. The result shows that the investment plan is feasible from the positive NPV, PI more than 1.0, IRR higher than cost of capital, and PP that suits the owner’s criterion. Thus, obtained from this research a recommendation that the company should execute the investment plan.