Industries Engineering Economics Value of Local Enterprise Ceramic in Ratchaburi Province

Abstract

        The purpose of the study was to study production cost and engineering economics of RLECI for grouping the small, medium and large industries (23 factories). The first research methodology was the total data collection of production and selling prices of products in order to create a database for grouping the price of each product, cost analysis of production, and engineering economics. The research found that production cost was equal to 109.10, 37.96, and 29.35 Baht; Discount Payback Period (DPB) was equal to 3.41, 11.58, and 12.48 years; Net Present Value (NPV) was equal to 491,329,430, 272,764,578, and 166,917,267 baht; Internal Rate of Return (IRR) was equal to 36.15%, 15.9%, and 14.48%; and B/C Ratio was equal to 6.60, 3.52, and 3.08, respectively. For sensitivity analysis, in all 3 cases it was found that the small industries should be invested in, because DPB < 12 years and IRR > 12%. This showed that RLECI had investment worthiness in the future for small industries.