Productivity Improvement by Retrofit Concept in Auto Parts Factories

This research studied five different machines from five auto parts factories. It was aimed to improve the productivity of those machines by applying retrofit concept along with reverse engineering technique. It was found that all machines were needed to add new technology to their original systems. After that economic decision analysis was made to decide whether retrofitting was worthy or not. The analysis showed that Internal Rate of Return (IRR) of all investments were higher than Minimum Acceptable Rate of Return (MARR) and the payback periods were less than 3 years. Therefore, the investment should be made. The next step was to add new components to each machine and then compare the production rate with the original systems. It was found that productivity of each machine was improved.