DECISION MAKING ANALYSIS TO DEVELOP OPERATIONAL SYSTEMS WORKFLOW OF PT. ENGGAL BANGUN JAYA

• Main Author: El Dinne Abdellah, Amel
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47021
• Institution: Institut Teknologi Bandung

Indonesia has a vision in strengthening the nation’s infrastructure to support economic developments and basic services. In 2018 alone, the construction sector contributed 10.36% of Indonesia’s GDP (Gross Domestic Product). The government and private party extensively invested and intensify the budget of infrastructure investments in various construction projects. Although the construction investments are increasing, the number of small-scale construction companies in Indonesia was declining over the year. Around ± 3,000 loss of small-scale companies in Indonesia between 2017 and 2018. Most of them are in critical condition, unable to sustain the business, where the competition is extremely fierce. In this case, severe problems in construction project such as cost overrun, schedule delay, and late payment was found during the research. Those conditions may lead the company to bankruptcy. To be able to sustain in construction business, the company could conduct business analysis to improve its business performance that related to the day-to-day business operation. This research examines one of the small-scale construction companies in Indonesia that faces linked problems in their business activity (operational, financial, and human resources). To analyze the factors that affect the business situation, this research is using RBV and VRIO framework as an internal analysis and PESTEL framework as an external analysis. SWOT analysis is used in this research to derive strategic implications for the company. Kepner-Tregoe (KT) Decision-Making Approach is used as a framework to analyze decision making, and the Causal Loop Diagram used as a tool to find the root cause of the problem. There are several main problems that exist in the company such as, financial constraints so that the company couldn’t meet the company's financial duty, ineffective and inefficient in performing projects, there is a high employee turnover, a decrease in income from over the years, and a high debt-to-assets ratio. Decision making to be analyzed is to find the best source of funds for the company. Business management solutions are obtained from KT Situation Appraisal, KT Problem Analysis, KT Decision Analysis, and KT Potential Problem Analysis. Conclusions, recommendations, and implementation plans are expected to improve the company’s business performance in the future as a holistic solution.