THE DESIGN OF CONTRACTOR MANAGEMENT PERFORMANCE INDICATOR USING IPMS FRAMEWORK Case Study : Maintenance Department of Concentrating Division PT Freeport Indonesia

• Main Author: HARTOMO (NIM : 29107135); Pembimbing: Dr. Ir. Dermawan Wibisono, M. Eng, WISNU
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/19685
• Institution: Institut Teknologi Bandung

PT Freeport Indonesia (PTFI) is one of the largest mining companies in the world with maximum capacity of 300.000 ton ore processed. Similarly with other mining industries, equipment including maintenance activities’ cost is the major cost element for the mining operation. A proper maintenance activity is essential to maximize the equipment availability and reliability. In relation <br /> <br /> <br /> with the recent monetary crisis, PTFI must control their production cost including maintenance activities by evaluating outsourcing efficiently. Proper outsourcing management process will affect the organizational result. Some evidence suggests organizations have failed obtaining desired benefits of outsourcing as it was only <br /> <br /> <br /> expected to have impact on financial factors without considering other issues such as long term strategic implications on the business. Several aspects that influences outsourcing effectiveness are: effective work process, reliable resources, contractor ability, customer identification, and integrated performance measurement system on customer and department vision/mision. Inabsence of performance measurement system in relation with those aspects influencing outsourcing, has caused inability to evaluate the outsourcing process within maintenance department to gain feedback or improvements. Performance measurement tool has been designed in this project to evaluate contractor utilization and performance using Integrated Performance Measurement System (IPMS) approach. The <br /> <br /> <br /> framework describes integrated model in evaluating outsourcing performance and utilization in maintenance department. The performance management system designed results in contractor utilization's indicators as organizational output achieved, which are cost performance, SHE compliance, production compliance and process compliance. Performance remapping on internal <br /> <br /> <br /> process and individual performance needs to be performed to prove its influences toward organizational output. <br /> <br /> <br /> A well coordination and cooperation from all related parties and comprehensive implementation phase within specific range of time are significant to achieve expected result. Three monthsduration trial project proposed will be evaluated in the end of 2009 to examine its implementation.