LONG-TERM CAPACITY PLANNING FOR CUPOLA FURNACE DIES CASTING MANUFACTURE USING ESTIMATION PRODUCT APPROACH

Abstract

Manage capacity planning is constantly facing the challenge of producing products while reducing cost. The challenge is to fit the demand with the order. Nowadays dies products are still being produced in homogenous market due to the complexity and high variance of the products. In such a production capacity planning is of vital importance as resources need to be cleverly managed in order to obtain a high utilization. However, with high demand all required process and estimation. The estimation cost of the products is used in order to determine the amount of capacity required to produce them. The better can the long-term capacity planning to will affect the operational. The process needs to determine the demand and the break-even point to get the alternatives. This research aims at revealing the connection between long term capacity planning and the estimated product cost in cupola furnace. A secondary is furthermore to find the best method to get the lowest cost and best quality for the subcontract that can fulfill the demand for long-term. The expected result to find the interest result is the break-even point approximately around 7.000 until 8.000 units. The profit with Rp39.440.000 and the product about 20.000 Kg and volume of the capacity is 40m2.