TY - GEN
T1 - Engineering economics of cranio-maxillofacial (CMF) degradable implant production in indonesia
AU - Fadhilah, Shabrina
AU - Agus, Anna Amalyah
AU - Kreshanti, Prasetyanugraheni
AU - Budiono, Hendri D.S.
AU - Supriadi, Sugeng
AU - Whulanza, Yudan
N1 - Funding Information:
We have been developed CMF Titanium Implant since mid of 2017 funded by the Ministry of Higher Education and Research in a project so-called Biomaterial Teaching Industry [5-6]. Overall, the characteristics and
Funding Information:
However, all available CMF implant in Indonesia is still imported from other countries that make them relatively expensive because of the shipment and taxes. Therefore this research is studying the feasibility of manufacturing CMF implants locally. This study aims to determine the economics analysis by comparing three different scenarios of implant product development. The first scenario was establishing a new facility to develop a fresh line production of the CMF implant (degradable type) separate with titanium type. The second scenario was a new product development (NPD) activity to expand the business of a titanium implant manufacturer. Lastly, the third scenario was eliminating most NPD costs that can be categorized as a pre-operating cost by getting funding from the government agency such as the Indonesian Endowment Fund (LPDP) through its innovation grant. Then, the company uses the property right by using the license as monetizing back to the university as an entity of government body. Ultimately, we will be able to have a preliminary financial analysis that complements the technical feasibility of CMF biodegradable implant.
Funding Information:
This research was supported by the Universitas Indonesia Grant PIT9 in 2019 with Contract Number: NKB-0084/UN2.R3.1/HKP.05.00/2019. The research activity was an initiative project of LPDP Rispro Invitasi 2019. Thanks also to Mr. Paulus Napitulu (PT Dynaplast) for the part of the injection machine trial.
Publisher Copyright:
© 2020 Author(s).
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020/5/6
Y1 - 2020/5/6
N2 - One effort to develop the medical devices industry in Indonesia is to downstream research products that have been carried out by a research institution. Currently, many research institutes that work in the biomedical engineering field have focused on developing medical devices that have funding support from a government agency of Indonesia. However, a pre-financial study is also needed to be carried out to understand the profitability and business model that proposed with a manufacturer. This paper aims to calculate economic parameters from various scenarios that involved the pre-operation cost to develop a new model. A new product development (NPD) is needed to gain more sales volume to the existing medical device manufacturer. However, this activity is not cheap and mostly needs new investment. Therefore, we iterated various scenarios such as: establishing a new production line, expanding new products apart from an existing product, getting grant support from government trough collaboration with a research institute, and expanding sales volume to profitable parameter. Our calculation shows that the involvement of a government agency, i.e., LPDP and research institute through new product development, will empower the manufacturer. Ultimately, the profit will return to the research institute as licensing the product property right to the corresponding manufacturer. Here, we showed that a new product of biodegradable cranio-maxillofacial implant would have a Net Present Value (NPV) around -12.7 billion IDR to establish the line production. However, we also showed various scenarios to enable us to have NPV of 6.0 billion IDR.
AB - One effort to develop the medical devices industry in Indonesia is to downstream research products that have been carried out by a research institution. Currently, many research institutes that work in the biomedical engineering field have focused on developing medical devices that have funding support from a government agency of Indonesia. However, a pre-financial study is also needed to be carried out to understand the profitability and business model that proposed with a manufacturer. This paper aims to calculate economic parameters from various scenarios that involved the pre-operation cost to develop a new model. A new product development (NPD) is needed to gain more sales volume to the existing medical device manufacturer. However, this activity is not cheap and mostly needs new investment. Therefore, we iterated various scenarios such as: establishing a new production line, expanding new products apart from an existing product, getting grant support from government trough collaboration with a research institute, and expanding sales volume to profitable parameter. Our calculation shows that the involvement of a government agency, i.e., LPDP and research institute through new product development, will empower the manufacturer. Ultimately, the profit will return to the research institute as licensing the product property right to the corresponding manufacturer. Here, we showed that a new product of biodegradable cranio-maxillofacial implant would have a Net Present Value (NPV) around -12.7 billion IDR to establish the line production. However, we also showed various scenarios to enable us to have NPV of 6.0 billion IDR.
UR - http://www.scopus.com/inward/record.url?scp=85096394856&partnerID=8YFLogxK
U2 - 10.1063/5.0000875
DO - 10.1063/5.0000875
M3 - Conference contribution
AN - SCOPUS:85096394856
T3 - AIP Conference Proceedings
BT - Recent Progress on
A2 - Nahry, null
A2 - Marthanty, Dwinanti Rika
PB - American Institute of Physics Inc.
T2 - 16th International Conference on Quality in Research, QiR 2019 - 2019 International Symposium on Advances in Mechanical Engineering, ISAME 2019
Y2 - 22 July 2019 through 24 July 2019
ER -