INVESTMENT PROJECT ANALYSIS OF TOOLING MACHINE PROCUREMENT IN AUTOMOTIVE INDUSTRY (CASE STUDY: PT. HMI)

• Main Author: Bachtiar, Reza
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53194
• Institution: Institut Teknologi Bandung

PT. HMI is implementing the EURO4 project, which is to make all of its products have a standard EURO4 exhaust gas by 2021 to comply with the new Indonesian government regulations. PT. HMI is a company affiliated with a truck and bus manufacturing company from Japan whose main culture is Total Cost Management (TCM) which always seeks cost savings from the entire product life cycle. One method is to move component sourcing from Japan to Indonesia, including the EURO4 project. One of the components that will be moved is component X which will be created at vendor Y. Vendor Y provides two options for the tooling machine payment scheme. Investment Analysis is needed to determine which option will provide higher cost savings for PT. HMI. Investment Analysis is done by comparing the NPV of the relevant cash flow for each option. There are five influential variables, namely Exchange Rate, Inflation, Lifetime machine, Forecast Quantity Sold, and Cost of Capital. The result of the calculation shows that Option 2 gives a higher NPV, namely Rp. 6,445,507,736. To find out which variable is the most sensitive, a sensitivity analysis is performed on option 2 and it is found that the Exchange Rate is the most sensitive variable. Meanwhile, the Monte Carlo Simulation results show that the probability of the NPV below and above the base NPV is 90.28% and 9.72%, and there is no possibility that the NPV value will be negative.