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Investment analysis of a new paint shop in automotive industry

National Automotive Policy stated by year 2020, the automotive industry will provide 550,000 employment opportunities with involvement of 430 local vendors. In NAP 2014, government has given special emphasis on export of local production cars and increase localisation of automotive component. With t...

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Main Author: Osman, Hamizan
Format: Thesis
Language:English
English
Published: UTeM 2018
Subjects:
T Technology (General)
TL Motor vehicles. Aeronautics. Astronautics
Online Access:http://eprints.utem.edu.my/id/eprint/23451/1/Investment%20Analysis%20Of%20A%20New%20Paint%20Shop%20In%20Automotive%20Industry%20-%20Hamizan%20Osman%20-%2024%20Pages.pdf
http://eprints.utem.edu.my/id/eprint/23451/2/Investment%20analysis%20of%20a%20new%20paint%20shop%20in%20automotive%20industry.pdf
http://eprints.utem.edu.my/id/eprint/23451/
https://plh.utem.edu.my/cgi-bin/koha/opac-detail.pl?biblionumber=112837
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spelling my.utem.eprints.234512022-06-14T10:58:52Z http://eprints.utem.edu.my/id/eprint/23451/ Investment analysis of a new paint shop in automotive industry Osman, Hamizan T Technology (General) TL Motor vehicles. Aeronautics. Astronautics National Automotive Policy stated by year 2020, the automotive industry will provide 550,000 employment opportunities with involvement of 430 local vendors. In NAP 2014, government has given special emphasis on export of local production cars and increase localisation of automotive component. With the annual export target of 250,000 units, the quality of painting job in the manufacturing process must be at global standard and able to withstand the extended warranty of minimum 5 years. Paint shop, one of the important components in automotive industries is an essential process in automotive manufacturing. Comparable to Germans’ marque car, painting shop in Malaysia is not able to match with the quality standard and process specification due to inferior technology. It demands high quality result which may lead to adverse impact to environment and human safety. As such the selections of process and technology level are crucial to determine the level of quality, environment, and safety to workforce. All these aspects will directly give an impact to initial capital investment of the company. This thesis examines two alternatives faced by decision maker whether to maintain the current technology or to pursue new technology (challenger). Two approaches of study were employed i.e. the first one was a combination of team assessor where experts were invited to provide opinion, and benchmarking of available facilities. The second approach used is Investment Analysis (IA). IA test the robustness of the results of an intended investment in the presence of uncertainty. It was a combination of feasibility study where the challenger was assessed through financial analysis such as Net Present Value (NPV), Internal Rate of Return (IRR), and Pay-Back Period (PBP) .Value Analysis and Value Engineering (VA/VE) were used to justify the selection of technology of painting used. In the investment analysis, assessment factors such as sales of the car, manufacturing cost, time to deliver and level of investment were included. The results show that the challenger was preferable based on team assessor due to its technical superior over the current technology in terms of quality and safety. However, when it tested for feasibility study, the results were not encouraging. Then VA/VE method was used to investigate whether the challenger can fit financially to the requirement set at the beginning by the owner of the project. The final results approved that the challenger was selected. UTeM 2018 Thesis NonPeerReviewed text en http://eprints.utem.edu.my/id/eprint/23451/1/Investment%20Analysis%20Of%20A%20New%20Paint%20Shop%20In%20Automotive%20Industry%20-%20Hamizan%20Osman%20-%2024%20Pages.pdf text en http://eprints.utem.edu.my/id/eprint/23451/2/Investment%20analysis%20of%20a%20new%20paint%20shop%20in%20automotive%20industry.pdf Osman, Hamizan (2018) Investment analysis of a new paint shop in automotive industry. Masters thesis, Universiti Teknikal Malaysia Melaka. https://plh.utem.edu.my/cgi-bin/koha/opac-detail.pl?biblionumber=112837 TJ211.42.L64 2017
institution Universiti Teknikal Malaysia Melaka
building UTEM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknikal Malaysia Melaka
content_source UTEM Institutional Repository
url_provider http://eprints.utem.edu.my/
language English
English
topic T Technology (General)
TL Motor vehicles. Aeronautics. Astronautics
spellingShingle T Technology (General)
TL Motor vehicles. Aeronautics. Astronautics
Osman, Hamizan
Investment analysis of a new paint shop in automotive industry
description National Automotive Policy stated by year 2020, the automotive industry will provide 550,000 employment opportunities with involvement of 430 local vendors. In NAP 2014, government has given special emphasis on export of local production cars and increase localisation of automotive component. With the annual export target of 250,000 units, the quality of painting job in the manufacturing process must be at global standard and able to withstand the extended warranty of minimum 5 years. Paint shop, one of the important components in automotive industries is an essential process in automotive manufacturing. Comparable to Germans’ marque car, painting shop in Malaysia is not able to match with the quality standard and process specification due to inferior technology. It demands high quality result which may lead to adverse impact to environment and human safety. As such the selections of process and technology level are crucial to determine the level of quality, environment, and safety to workforce. All these aspects will directly give an impact to initial capital investment of the company. This thesis examines two alternatives faced by decision maker whether to maintain the current technology or to pursue new technology (challenger). Two approaches of study were employed i.e. the first one was a combination of team assessor where experts were invited to provide opinion, and benchmarking of available facilities. The second approach used is Investment Analysis (IA). IA test the robustness of the results of an intended investment in the presence of uncertainty. It was a combination of feasibility study where the challenger was assessed through financial analysis such as Net Present Value (NPV), Internal Rate of Return (IRR), and Pay-Back Period (PBP) .Value Analysis and Value Engineering (VA/VE) were used to justify the selection of technology of painting used. In the investment analysis, assessment factors such as sales of the car, manufacturing cost, time to deliver and level of investment were included. The results show that the challenger was preferable based on team assessor due to its technical superior over the current technology in terms of quality and safety. However, when it tested for feasibility study, the results were not encouraging. Then VA/VE method was used to investigate whether the challenger can fit financially to the requirement set at the beginning by the owner of the project. The final results approved that the challenger was selected.
format Thesis
author Osman, Hamizan
author_facet Osman, Hamizan
author_sort Osman, Hamizan
title Investment analysis of a new paint shop in automotive industry
title_short Investment analysis of a new paint shop in automotive industry
title_full Investment analysis of a new paint shop in automotive industry
title_fullStr Investment analysis of a new paint shop in automotive industry
title_full_unstemmed Investment analysis of a new paint shop in automotive industry
title_sort investment analysis of a new paint shop in automotive industry
publisher UTeM
publishDate 2018
url http://eprints.utem.edu.my/id/eprint/23451/1/Investment%20Analysis%20Of%20A%20New%20Paint%20Shop%20In%20Automotive%20Industry%20-%20Hamizan%20Osman%20-%2024%20Pages.pdf
http://eprints.utem.edu.my/id/eprint/23451/2/Investment%20analysis%20of%20a%20new%20paint%20shop%20in%20automotive%20industry.pdf
http://eprints.utem.edu.my/id/eprint/23451/
https://plh.utem.edu.my/cgi-bin/koha/opac-detail.pl?biblionumber=112837
_version_ 1736838080182091776
score 13.211869

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