DESIGN OF VENDOR MANAGED INVENTORY (VMI) SYSTEM IN PROCUREMENT OF SPARE PART CONSTRUCTION EQUIPMENT

• Main Author: NIM 94516010, SUSILA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31159
• Institution: Institut Teknologi Bandung

The fierce business competition in the construction industry has forced PT. WIKA to enhance its competitiveness.An important factor that can improve construction company’s competitiveness is the timeliness of project’s completion. The completion timeliness is directly related with the construction equipment’s availbility. PT. WIKA DPK is therefore holding a vital role to ensure equipments’ availibity to support PT. WIKA project’s success. This vital role comes from a fact that, one of the main factor of the project’s tardinessis the equipment unavailability. The tardiness mainly caused by the long repairment time, which resulted from the unpunctual sparepart procurement process. Some of the root cause for the long sparepart procurement’s time are bearucracy problem and the poor planning from a system which is not integrated. Therefore to overcome the problem it is necessary to improve speed in the internal procurement process, by ensuring the sparepart readily available within the seller's inventory. The Vendor Managed Inventory (VMI) model which has not been widely used for the construction project is suit to the problem characteristics. Therefore the objective of this research is to design a VMI model which match the characteristic of construction equipment’s sparepart. <br /> <br /> The study started with preleminary study, followed by VMI model design which started by the classification stage, followed by spare part mapping using Kraljic Portfolio in which AHP method was used for weighting criteria of Strategic Impact and Supply Risk. The design was then tested using simulation. Once the model has been validated and verified, the implementation process and managerial impact were analyzed. The study summerised by a conclusion and suggestion. The spare part categorization stage produces two categories of spare parts, namely Leverage and Strategic, each of which can be grouped to use the appropriate VMI design for each category. This study provides a more detailed selection of VMI spare parts with specified criteria that will impact on the cost (strategic) or impact the risk (risk) as well as how to give the weight of each criterion. <br /> <br /> The result of this research shows that the VMI model proper for construction equipment spare part category is the Close collaboration VMI and 3PL Based VMI model. The validation of the model revealed that the procurement process using proposed VMI model is significantly faster and provide a more measurable system due to informtion transparency and the web based system used. Not all types of spare parts will use VMI cooperation in the procurement process due to consideration of the inventory cost and the vendor focus that need to maintain the critical inventory.