business analysis to compare alternative between

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COMPANY

by

DHIKA MAHAPUTRA 1-1212-061

BACHELOR’S DEGREE in

INDUSTRIAL ENGINEERING

FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

August 2016

Revision after the Thesis Defense on Thursday, 19 July 2016

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Dhika Mahaputra STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Dhika Mahaputra

____________________________________________

Student Date

Approved by:

Ir. Triarti Saraswati, M. Eng

____________________________________________

Thesis Advisor Date

Kirina Boediardjo, ST, M. Sc

____________________________________________

Thesis Co-Advisor

Date

Dr. Ir. Gembong Baskoro, M. Sc

____________________________________________

Dean Date

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Dhika Mahaputra Business Analysis to Compare Alternative between Automated Guided Vehicle (AGV)

and Forklift Using Return on Investment (ROI) at Beverage Company

By

Dhika Mahaputra

Ir. Triarti Saraswati, M. Eng., Advisor Kirina Boediardjo, ST, M. Sc., Co-Advisor

SWISS GERMAN UNIVERSITY

This research study based on the study case in beverage company, especially in material handling equipment to deliver the raw material from storage to line in its manufacture.

The main purpose of this thesis is to compare two alternatives of material handling equipment that will be used in its manufacture, the two alternatives that will be compared are Automated Guided Vehicle (AGV) and powered industrial truck which is forklift. Methodology of this thesis research is based on economical comparison. One of these sources of cost is the number of vehicle needed to work the handling task. The analytical approach will be used to calculate the number of AGV needed. The result of the number AGV will be used to calculate the engineering economy analysis. For engineering economy analysis, Return on Investment (ROI) and Breakeven will be used to compare the alternative between AGV and forklift. The result is to find which alternative can be selected as the best alternative for the material handling equipment in beverage economy.

Keywords: AGV Implementation, Industrial Truck, Engineering Economy, Internal Rate of Return, Breakeven Analysis

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Dhika Mahaputra

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Dhika Mahaputra I dedicate this work to my beloved family, my friends, and my lecturers in Industrial

Engineering.

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Dhika Mahaputra ACKNOWLEDGEMENTS

First of all, I would like to give my gratitude to Allah SWT for giving me health and strength to finish this thesis work.

I would like to thank my family for the support that have given to me, especially to my parents for financial and mental support during my university life. I would like to give my appreciation to my advisor, Ms. Triarti Saraswati and my co-advisor, Ms. Kirina Boediardjo for patience and advice that have guided me during the completion of this thesis work. I also thank Infiniti Group for giving me knowledge and source for my thesis work.

A special thank you to my beloved Anindita Widianto Putri that always supports me during my studies and the completion of this thesis work and also drives me to a better life.

I would like to thank Otje Aria, Muhammad Hilman, Arief Rachim, and Willie Chandra for helping me finish my thesis work and always support me in my difficult time. Last but not least, I would like to thank Alia Rizka, Shelfy I., Kelvin Susanto, and my friends from Industrial Engineering batch 2012 for accompany me the last 4 years we spent together. Thank you for the memories, good times and bad times while I study in Swiss German University.

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Dhika Mahaputra TABLE OF CONTENTS

Page

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 7

LIST OF FIGURES ... 9

LIST OF TABLES ... 10

CHAPTER 1 – INTRODUCTION ... 11

1.1 Background... 11

1.2 Thesis Problem ... 12

1.3 Thesis Objectives... 12

1.4 Thesis Scope ... 12

1.5 Thesis Limitation ... 13

1.6 Thesis Organization ... 13

CHAPTER 2 – LITERATURE REVIEW ... 15

2.1 Material Transport Equipment ... 15

2.1.1 Automated Guided Vehicles (AGVs) ... 15

2.1.2 Industrial Trucks ... 20

2.2 Engineering Economy ... 21

2.2.1 Interest Rate and Rate of Return (ROR) ... 24

2.2.2 Breakeven ... 24

CHAPTER 3 – RESEARCH METHODS ... 26

3.1 Introduction ... 26

3.2 Problem Identification ... 27

3.3 Literature Review ... 27

3.4 Data Collection ... 27

3.5 Data Analysis ... 27

3.5.1 Analytical Approach of AGV ... 27

3.5.2 Incremental Analysis for Rate of Return: Multiple Alternatives ... 28

3.5.3 Breakeven Analysis between Two Alternatives ... 30

3.6 Conclusion ... 31

CHAPTER 4 – RESULTS AND DISCUSSIONS ... 32

4.1 Company Profile ... 32

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Dhika Mahaputra

4.2 Problem Formulation ... 33

4.3 Observation Result ... 33

4.4 Determination of Type of AGV ... 36

4.5 Data Analysis ... 36

4.5.1 Design path layout of AGV ... 36

4.5.1.1 Path Layout for PSA 1 ... 37

4.5.2 Analytical Approach of AGV ... 43

4.5.2.1 Calculation for PSA 1 Layout ... 43

4.5.2.4 Summary of path layout ... 53

4.5.2.5 Summary of number vehicle required... 53

4.5.3 Engineering Economy Case ... 54

4.5.3.1 Return on Investment ... 55

4.5.3.2 Breakeven Analysis ... 57

CHAPTER 5 – CONCLUSIONS AND RECOMMENDATIONS ... 62

5.1 Conclusions ... 62

5.2 Recommendations ... 63

5.3 Further Research ... 64

REFERENCES ... 66

APPENDICES ... 67

APPENDIX A – Using Spreadsheets and Microsoft Excel ... 67

A.1 Excel Functions Important to Thesis Work ... 67

A.3 A Goal Seek for Breakeven Analysis ... 68

APPENDIX B – Parameter for each alternative ... 70

B.1 Forklift ... 70

B.2 AGV ... 71

APPENDIX C – Specifications for Forklift and AGV ... 72

C.1 Forklift Specification ... 72

C.2 AGV Specification ... 72

APPENDIX D – Dimension for warehouse layout... 74

CURRICULUM VITAE ... 74