ANALYSIS ON BOTTLENECK ISSUES OF PROJECT CONTRACT PROCESS AT PT AMIN OIL

• Main Author: Ahadiani, Hafida
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35725
• Institution: Institut Teknologi Bandung

Oil and Gas Industry in Indonesia already supported Indonesia’s revenue since 1885. On the other hand, the industry situation is become more volatile due to the newest technology found in this world. PT Amin Oil (AO) is an Oil and Gas company that involved in the Indonesian oil and gas industry. To support the activities, AO both for operational and also technical for a specific project, AO accomplish through the procurement process. There is no system to show the document handling in AO to monitor the procurement process especially the tender progress. The lead time of the procurement process is regulated under PTK (Pedoman Tata Kerja) 007 because AO is still based on Product Sharing Contract system. However, some causes could generate longer lead time in generating a contract. Some causes generate longer lead time during the procurement process. It shows that there are bottleneck issues during the procurement process which generate longer lead time. The research methodology used in this research is using qualitative data method through interview three groups which involved in the procurement process at AO. Those three groups are the procurement executor, user, and also the vendor. The basis of the problem is using lead time data record from AO during January up to October 2018. The framework of this research is using Six Sigma with DMAIC (Define, Measure, Analyze, Improve, Control) methodology. The process of finding the root cause is defining the procurement process, followed by measuring the real problem through interviewing related respondents, after it author analyzes fishbone diagram, in the improvement phase will show the proposed solution, and for the control, phase suggests AO to use KPI to evaluate the process. There will be a finding and discussion sub-chapter to know the interview result compare to the literature such as a journal. This research will also relate to the project management about communication and also procurement management. Based on the analysis, the needs of information technology uses in the procurement process will also be considered in this research. The uses of technology will be the part proposed solution in this research. The impact of existing company who already used technology based to maximize the procurement performance will be used as the input of the analysis. Through the information technology application, it could increase the collaboration and transparency during the procurement process. The proposed solution of this research is using information technology-based procurement dashboard. Before creating the procurement dashboard in software-based, there will be a trial session using Microsoft Excel to maximize the software design which could generate more function on the procurement dashboard. This dashboard will show the latest progress and also the detail location of the document to inform each stakeholder about the current process. The recorded data will be able to use as the evaluation materials for the procurement process also for the procurement executor and the user. The implementation will conduct in one year, and it will begin with the extensive research to ensure the problem with more respondents before implementing the procurement dashboard.