Cost Analysis the Implementation of New Material: The Case Study of Cement Product

Abstract

This study will perform a cost analysis of using synthetic and natural gypsum by using the traditional costing method and to determine the investment analysis of the initiative strategy of gypsum synthetic. The research purpose is to compare the impact of gypsum synthetic implementation cost and gypsum natural consumption cost, and to find out whether the savings cost from gypsum synthetic consumption can cover the investment costs of implementing strategy. The existing calculation cost of material consumption products uses traditional costing methods, so this research is using this method that will compare the consumption costs between both Gypsum. Net present value and interest rate return methods are to determine the levels of investments needed to overcome problems in the consumption of synthetic gypsum. According to this research, the result of the net present value methods was IDR 1,543,004,654 and the interest rate return reaches 17.09%, for the planned case of 10 years, which means that this initiative is accepted and feasible to apply, it means that to produce cement, for the application of gypsum synthetic consumption as initiative strategy and application of 3 alternative strategies for these investment will result in positive impact for long-term decision.
 Keywords: cement industry, gypsum synthetic, production, cost analysis, traditional costing, net present value, internal rate return