Cost analysis of manufacturing resources planning : case study of a battery plant | |
| Author | Thu Si |
| Call Number | AIT Thesis no. IE-91-26 |
| Subject(s) | Production planning Cost effectiveness Battery industry |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | Nowadays, a large number of manufacturing companies are seeking to achieve competitive edges by adopting the advanced manufacturing systems such as robotic, computer aided design, engineering and manufacturing (CAD, CAB, CAM) and Manufacturing Resources Planning (MRP II) into their companies. Before the equipment for these systems can be purchased, funds must be allocated, and in the majority of manufacturing companies, a formal justification must be prepared. Justification considers the benefits that will be achieved by the installation of the system concerned. This study involves the economic justification of Manufacturing Resources Planning (MRP II) in a battery plant. The reason for This study is to help managers in the company make decisions about whether to invest in MRP II or to concentrate financial and management resources on improving other aspects of the company's operation which can reduce the problems currently faced in the company and improve the customer service, productivity etc. due to very competitive battery business in Thailand. This study is generally organized into four steps. In the first step, pre-requisites of MRP II are considered whether the MR p II system can be applied in the company or not. After deciding the system's fit with the company, as second step, the areas of costs to be invested are analyzed. In order to recover the costs incurred, benefit models are developed in step three to calculate the savings. Along with step three, implementation steps are also provided. Finally, financial evaluation is performed using discounted cash f1ow techniques (DCF) such as net present value (NPV) and internal rate of return (IRR). This package is programmed in DBASE IV language. The study also considers, in quantifying the benefits, the MRP II system not only as a means of improving shop floor efficiency, but also as a means of improving company-wide effects. The results of the analysis show that the installation of the MRP II system in the company is a worthwhile investment depicting a yield of 66.14 per cent internal rate of return (IRR) and a net present value (NPV) of Baht 27,063,704. |
| Year | 1991 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Industrial Engineering (IE) |
| Chairperson(s) | Bohez, Erik L.J. |
| Examination Committee(s) | Oudheusden, Dirk L. van ;Tabucanon, Mario T. |
| Scholarship Donor(s) | The Government of Australia |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 1991 |