ANALYSIS AND PROPOSAL OF OUTSOURCING STRATEGY OF ENGINEERING, CONSTRUCTION AND CONSTRUCTION SUPERVISION SERVICES FOR SURFACE FACILITIES AS PART OF OPERATIONS STRATEGY OF PT CHEVRON PACIFIC INDONESIA

In the past two decades, along with the fluctuation of oil and gas price in the market and the changes of labor law, outsourcing strategy for engineering, construction and construction supervision for surface facilities at PT Chevron Pacific Indonesia (CPI) had revolutionized. Revolution was began w...

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Bibliographic Details
Main Author: SIGIT PRATOPO, ST (NIM: 29106364) ; Pembimbing: Dr. Ir. Gatot Yudoko, IGNATIUS
Format: Theses
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/18672
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Institution: Institut Teknologi Bandung
Language: Indonesia
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Summary:In the past two decades, along with the fluctuation of oil and gas price in the market and the changes of labor law, outsourcing strategy for engineering, construction and construction supervision for surface facilities at PT Chevron Pacific Indonesia (CPI) had revolutionized. Revolution was began when CPI had to turned‐around because of long duration effect of the monetary crisis in 1997 and the changes with the politician leadership that caused changes in labor behavior and production cost increased, while oil and gas prices in the international market at that time stayed at 20 US Dollar per barrel. In this condition CPI had done a radical changes on its outsourcing strategy for engineering, construction and construction supervision activities from outsourcing Resident Contractor (RC) model to outsourcing Flexible Program Management (FPM) model. The FPM model that was began in 2005, in one side has been succesfully closing the gap of professional shortage due to Voluntary Resignation Program (VRP) happended a year before and has been successfully addresing weaknesses of the RC mode. However, in other side, the FPM model also had key learnings that need to be improved. Due to the revolution and key learnings from the FPM model, CPI needs to formulate and implement the right outsourcing model as part of its operation strategy to fullfil the needs for engineering, construction and construction supervision services for the next 5 years to ensure operations sustainability of the surface facilities business to meet oil production target demanded by government of Indonesia through BPMIGAS. Using several tools such as CRT, FRT and CPDEP, CPI has been doing efforts to choose, mature the alternative and develop new outsourcing model called CS‐PMECS. The implementation plan of the CS‐PMECS outsourcing model will be done by stages (short term and long term) and has been started in the early 2008.