IMPROVING CONTRACTING PROCESS EFFICIENCY TO REDUCE LEAD-TIME IN PT BIRU OIL

• Main Author: Khaerani, Dita
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49286
• Institution: Institut Teknologi Bandung

Contracting process as the support backbone for PT Biru Oil operation is demanded to be delivered to the business owner in a fast manner and according to the expected timeline set by the company. Yet based on findings, there are rooms for improvement in several stages in contracting process in PT Biru Oil, time-wise, mostly at contract preparation stages and evaluation stages, prequalification and technical evaluation. These might potentially halt the operations due to incomplete goods/services needed and need to procure faster by doing bridging contract with a consequence of cost overrun as vendor can mark-up the price due to urgency. The purpose of this research is to analyze the bottleneck issue in contracting process at PT Biru Oil to later come up with improvement plan to reduce the longer contracting lead plan. This research started from analyzing findings to later come up with research objectives and framework by using Lean Six Sigma method. After ran through SIPOC analysis, Pareto analysis, and Coding method, the preliminary results show that SOWA, Prequalification, and Technical Evaluation stage are where the bottleneck issues occurred. The preliminary results were brought to further getting analyzed with Failure Mode and Effect Analysis and it was found that the root causes in the current contracting process in PT Biru Oil that might lead to longer contracting time are delay in submitting SOWA, error in technical evaluation, and delay in supplier qualification process. Based on the problem research above, improvements that can be implemented to reduce lead-time in the contracting process in PT Biru Oil are providing regular online-based training in developing a good quality SOW, establishing Work Breakdown Structure (WBS) to help keep track on contracting progress according to expected lead time, and integrating Artificial Intelligence as a step up to minimize human error, fasten the contracting process, and providing additional information fast and up-to-date.