IMPLEMENTATION SHARED SERVICE AT PT BARA CASE STUDY : CENTRALIZATION OF LOGISTICS & PLANT MAINTENANCE DEPARTMENT

• Main Author: Candra Wijaya (NIM 29114015), Rinto
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24013
• Institution: Institut Teknologi Bandung

PT BARA is a local mining company that based in Batulicin, Tanah Bumbu Regency, <br /> <br /> <br /> <br /> <br /> <br /> South Kalimantan. Its working areas (projects) are mostly in coal and mineral extraction <br /> <br /> <br /> <br /> <br /> <br /> (mining) at South Kalimantan. The economic downturn perceived since 2011 which is <br /> <br /> <br /> <br /> <br /> <br /> indicated by the decline in economic growth, trigged the sharp drop in global coal demand <br /> <br /> <br /> <br /> <br /> <br /> (especially from China). The drop of demand and price of coal also impacted to PT BARA <br /> <br /> <br /> <br /> <br /> <br /> company financial and operational performance. Short-term efficiency alternatives <br /> <br /> <br /> <br /> <br /> <br /> already been done such as employee rationalization, cutting subcontractor rate, reduce <br /> <br /> <br /> <br /> <br /> <br /> working hours, and other efficiency actions. However, we should still need <br /> <br /> <br /> <br /> <br /> <br /> comprehensive solution to make the operation more efficient in a long-term period. <br /> <br /> <br /> <br /> <br /> <br /> This project starts from Business Issue that explore current problems in the operational <br /> <br /> <br /> <br /> <br /> <br /> level with this current decentralization organization. One of long-term solution that will <br /> <br /> <br /> <br /> <br /> <br /> be developed in this final project is Reorganization by Centralization of Supporting & <br /> <br /> <br /> <br /> <br /> <br /> Common Departments & Activities across the companies group, with Logistics (Supply <br /> <br /> <br /> <br /> <br /> <br /> Chain) and Plant Maintenance departments will be as pilot project. Propose organization <br /> <br /> <br /> <br /> <br /> <br /> is centralization as shared service. Shared Services is an innovative approach to <br /> <br /> <br /> <br /> <br /> <br /> standardizing and streamlining the delivery of common processes in one or several <br /> <br /> <br /> <br /> <br /> <br /> physical locations and leads to a clearer (internal) customer relationship because of <br /> <br /> <br /> <br /> <br /> <br /> having a well-defined service level agreement. vii <br /> <br /> <br /> <br /> <br /> <br /> The implementation of shared services expect to give benefits by reduce over-employees <br /> <br /> <br /> <br /> <br /> <br /> and employee cost; expected economic of scales benefit is10-25% from major equipment <br /> <br /> <br /> <br /> <br /> <br /> vendors discount amount; the simplified process, reduced redundancies of process, easy <br /> <br /> <br /> <br /> <br /> <br /> to communicate both from internal users and external parties, and standard process with <br /> <br /> <br /> <br /> <br /> <br /> best practice applied; current facilities and working equipments can be optimized and <br /> <br /> <br /> <br /> <br /> <br /> utilized to support all operations; leveraging technology, specialized skills people, and <br /> <br /> <br /> <br /> <br /> <br /> best process improved quality of work in the operation and better control in single <br /> <br /> <br /> <br /> <br /> <br /> management and monitor. To enhance more benefits from these new organizations, the <br /> <br /> <br /> <br /> <br /> <br /> implementation should have adequate socialization, comprehensive review of process, <br /> <br /> <br /> <br /> <br /> <br /> procedure and people, and strict asset and cost allocation. This concept also can be applied <br /> <br /> <br /> <br /> <br /> <br /> into another support department across the group such as human capital management, <br /> <br /> <br /> <br /> <br /> <br /> safety health environmental, information technology, facility management, legal <br /> <br /> <br /> <br /> <br /> <br /> corporate affair, and finance accounting. However, the implementation can’t be same for <br /> <br /> <br /> <br /> <br /> <br /> these departments those have different nature of business and values.