Electric Wheelchair

PT. Savatron Indonesia is a manufacturing company that produces electric wheelchairs. The wheelchairs are designed to be utilized by not just a diffabled person but also the common users who should benefit from ease of daily mobility for instance an elderly. Domestically produced electric wheelchairs are a rarity Indonesia because most being sold are those imported from China, which equates to lower prices for lower quality, and those from North America which constitutes a higher quality and therefore price. This situation will provide the company a sizeable opportunity to thrive in. Our vision is, “To be the preferred partner in business and life by providing the affordable quality solutions to the diffabled.” By this creed, PT Savatron Indonesia will produce wheelchairs that are robust with quality and competitively priced. Other facts also reveal that the diffabled live among us in all countries of the world and in all layers of society. Wheelchair market driving forces include the fact that baby boomers are starting to hit age 65 resulting in growth in the population over age 65. As overall life expectancy increases, more wheelchairs are needed. Based on this opportunity PT Savatron Indonesia will export its products to overseas to Australia. Australia was chosen because of its geographical proximity and its citizens’ buying power. A “Cost Focus” strategy is suitable because of the company’s manufacturing nature and also because it offers a lower purchase price for its products which should drive the company to push down costs as low as possible without compromising quality. The Marketing Department will provide a solution for the diffabled and those who needs help in mobility in the form of the electric wheelchair with the brand, Papillon. The team will ensure fulfillment of all sales targets through an annual targeted sales growth of 10% and a targeted sales of 10.000 by the end of the fifth period (2015). To produce quality products with a minimal cost structure, Operations Department will emphasize on the production process efficiency to achieve a 60 minutes/unit cycle time. Tight supplier selection and evaluation will be done to support and ensure the best quality products. The Human Resources Department will do activities to achieve and maintain company efficiency and effectiveness through organization culture, organization planning, leadership, and appropriate human resources management activities. Turnover rates will also be kept at a maximum of 10% per year. The Finance Department believes this business plan is eligible and valuable to run because, on the most likely scenario, the NPV obtained is Rp 8.790.538.000,- and the value of IRR is 34%. The payback period is 2 years 8 months while the discounted payback period is 3 years 9 months.