NON-PRODUCTIVE WORKING HOURS REDUCTION IN CENTRAL SERVICES DIVISION PT FREEPORT INDONESIA

• Main Author: BIRINGKANAE 29115279, SUMARNIWAN
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24417
• Institution: Institut Teknologi Bandung

Central Services is the division that responsible to provide service in developing and constructing <br /> <br /> required infrastructure to support mining operation in PT Freeport Indonesia (PTFI), a <br /> <br /> multinational mining company operated in Indonesia. In early 2017, the Government of Indonesia <br /> <br /> has issued a Government Regulation No 1,2017 on mineral export relaxation that require Contract <br /> <br /> of Work holders to change its contract to Special Mining Business Permit and pay the custom <br /> <br /> duty to be able to export. As a consequence to the regulation, PTFI cannot market or export the <br /> <br /> copper concentrate to overseas buyers, which causes PTFI not to be able to market 60% <br /> <br /> production of the copper concentrate. Because of the limited domestic market that can <br /> <br /> accommodate the company's products, then the production process is reduced. This limited <br /> <br /> operation has affect into reduction of work force in all divisions including Central Services. This <br /> <br /> reduction is done when Central Services is in progress of developing the infrastructure in the <br /> <br /> underground mining that targeted for completion within 3 years. To achieve the target with limited <br /> <br /> time and reduced manpower, it is necessary to enhance the work effectiveness and efficiency of <br /> <br /> overall Central Services Division. <br /> <br /> This final project discusses on the reduction of non-productive hours in Central Services Division <br /> <br /> using DMAIC approach. From the measurement, we can know that about 50% of the work-hours <br /> <br /> are a non-productive hours. Equipment unavailability, material unavailability, and waiting <br /> <br /> transportation are the largest contributors to the non-productive hours. Productivity can be <br /> <br /> affected if required equipment or material cannot be in the time and place it should be. Current <br /> <br /> transportation process and supply cannot fulfill the demand resulting in employees arriving late <br /> <br /> in the work area. Minimizing waiting time in these 3 aspects would bring a great impact. <br /> <br /> The tools and techniques leading to improvement are described in this paper in accordance with <br /> <br /> the five phases of DMAIC methodology: define, measure, analyze, improve, and control. <br /> <br /> Identifying opportunities for improvement is done by capturing the voice of the customer through <br /> <br /> field observation, Focus Group Discussion, and interview with division representatives. Project <br /> <br /> Management approach is used to implement the recommended solutions that include 8 subinitiatives: <br /> <br /> <br /> coordination improvement, car pool services, transportation arrangement, integrated <br /> <br /> material tracking, procurement planning improvement, regular stock take process, equipment <br /> <br /> dispatch system, and administration improvement. The project team then determine the <br /> <br /> prioritization of the list initiatives by constructing an impact – effort matrix. Based on the <br /> <br /> assessment result, project team agreed to deploy the initiatives into 3 stages to make it easier to <br /> <br /> be executed. <br /> <br /> To ensure that Central Services is ready and able to implement the new and improved business <br /> <br /> process, a Change management is established as structured approach to support each individuals <br /> <br /> within Central Services to shift from current process of business to the better states.