DECISION MAKING MODEL IN SELECTION OF PROJECTS / PRODUCTS IN PT. SANGGAR SARANA BAJA USING ANALYTIC HIERARCHY PROCESS (AHP)

• Main Author: Normal, Wendra
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/40525
• Institution: Institut Teknologi Bandung

PT. Sanggar Sarana Baja ("SSB") is a company founded in 1977 that is engaged in the engineering and fabrication of heavy equipment for projects and products engaged in oil and gas, mining, power generation and transportation. In addition, the company provides site service services for repair, construction and maintenance of mine sites. Because the main segments of the company's business are oil gas and mining, the company's operational development is greatly affected by the fluctuations of this business. Since the peak of business achievement in 2012, the company's revenue has continued to decline, influenced by the drop in oil and coal prices to the lowest income level in 2016, and has begun to improve slightly in 2017. The situation in the 2012-2017 period caused several changes in the business landscape such as position & number of customers, projects, product variations and suppliers. In the internal SSB itself, it must address this decline by rationalizing and adjusting, especially in terms of labor and efficiency of machinery and production facilities and other supporting factors. This condition must then be properly addressed by SSB in choosing which projects/products they will work on. They must be able to prioritize which projects / products are most suitable with their profile capabilities and capacities, which ones will provide the best profitability. The purpose of this final project is to help SSB to design a project/product selection model based on the Analytic Hierarchy Process (AHP). In this AHP Model we determine what criteria and sub-criteria should be considered in selecting projects/products. Next, a paired comparison is performed to obtain the priority level of the selected criteria. There are four (4) criteria used in this study, namely; Profitability, Skill/Capability, Machinery & Support, and Customer Profiles. Skill/Capability Criteria and Customer Profiles each have three (3) sub-criteria. The alternative chosen are 9 project/product groups that have been produced by SSB in 2017 and before. For respondents who were asked for assessment in this study consisted of 20 people with rank level of Senior Management (2), Manager (8) and Officer (10). While in terms of functions, they can be grouped into Operational (11) and Non-Operational functions (9). This research subsequently produced the following criteria sequence: Skills/Capabilities (35.9%), Customer Profiles (28.5%), Profitability (21.8%) and finally Machinery & Support (13.8%). Continuing the processing of this data then produced the top 3 priority projects / products as follows: Man Hauler (6,897 points), Trailers (6,754 points) and Pressure Vessel (6,538 points). Based on the results of this study, we recommend a number of points such as: increasing competitiveness through engineering training, software and machine upgrades that are believed to significantly improve efficiency. In addition, SSB needs to start a vendor / subcont development program to expand production capacity. SSB also needs to provide more added value to each project/product produced and start standardizing the product manufacturing process. Finally, for some specific project groups, SSB should be selective in choosing or limiting the scope of work to be taken.