Engineering economics of cranio-maxillofacial (CMF) degradable implant production in indonesia

Shabrina Fadhilah, Anna Amalyah Agus, Prasetyanugraheni Kreshanti, Hendri D.S. Budiono, Sugeng Supriadi, Yudan Whulanza

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

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.

Original languageEnglish
Title of host publicationRecent Progress on
Subtitle of host publicationMechanical, Infrastructure and Industrial Engineering - Proceedings of the International Symposium on Advances in Mechanical Engineering, ISAME 2019: Quality in Research 2019
Editors Nahry, Dwinanti Rika Marthanty
PublisherAmerican Institute of Physics Inc.
ISBN (Electronic)9780735419865
DOIs
Publication statusPublished - 6 May 2020
Event16th International Conference on Quality in Research, QiR 2019 - 2019 International Symposium on Advances in Mechanical Engineering, ISAME 2019 - Padang, Indonesia
Duration: 22 Jul 201924 Jul 2019

Publication series

NameAIP Conference Proceedings
Volume2227
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference16th International Conference on Quality in Research, QiR 2019 - 2019 International Symposium on Advances in Mechanical Engineering, ISAME 2019
Country/TerritoryIndonesia
CityPadang
Period22/07/1924/07/19

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