PRODUCTION PROCESSING PRODUCTION COSTS BUSINESS FEASIBILITY OF HOUSEHOLD WOVEN FABRIC INDUSTRY ENTERPRISES MICRO SMALL TO MEDIUM (UMKM) IN KEBON AYU VILLAGE, GERUNG DISTRICT, WEST LOMBOK REGENCY

Abstract

This research aims to determine the production process and production costs as well as the feasibility of home woven fabric industry businesses in Micro, Small and Medium Enterprises (MSMEs) in Kebon Ayu village, Gerung subdistrict, West Lombok Regency. The research method used was descriptive qualitative, involving 10 respondents from woven fabric home industry businesses as respondents who were determined purposively.

The results of research on the production process and the production costs incurred influence the results of woven fabric production, where the average production costs incurred are as low as Rp. 605,000 and as high as Rp. Highest IDR 1,568,000. From the results of the analysis using the R/C Ratio, economically the woven fabric home industry business in Kebon Ayu village is said to be efficient in production because the R/C Ratio is > 1, which means that the woven fabric home industry business is feasible to operate with an average of R /C Ratio above 1. Production can be increased by increasing production costs by using materials as efficiently as possible and working hours to meet sales targets. There is a need to modernize production equipment with weaving machines to increase production, which so far they work traditionally and still use a loom is not a machine.

Key Words: Production processing, Production Cost, Wovend Fabric Industry Enterprises