THE IMPROVEMENT OF LAND SETTLEMENT PROCESS THROUGH DMAIC METHODOLOGY

• Main Author: Agung Setiadi D E, Djaka
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/51036
• Institution: Institut Teknologi Bandung

PT. Green Energy Land Indonesia (GELI) is a subsidiary of GELI Corporation, one of the leading energy companies in the world. PT. GELI is now in the effort of doing remediation for 192 sites contaminated by crude oil. However, this remediation effort needs permission from the landowner impacted by crude oil contamination from the result of PT. GELI operation in the past. Land access permission given by the land owner is needed by PT. GELI so that the company can do the clean-up activity as regulated by the law. The activity of obtaining land access from the landowner is called the process of Land Settlement. Concession contract of PT. GELI will end in August 2021. It means that PT. GELI has a severely limited time to solve all activities of environmental remediation. Land team need to complete all the land settlement process to remaining of 162 sites within 6 months. Therefore, Project team need to improve cycle time from average of 4 months to 2.5 months per site. The combination of DMAIC and Decision Analysis methodologies will be used to explore and solve the issue. DMAIC (Define, Measure, Analyze, Improve, Control), which known as a structured approach for problem-solving and process improvement, was selected as an approach as PT. GELI has adopted it as a proven tool in process improvement for all its worldwide operations. Five Why are used to identify the root cause of the low number of sites ready for remediation in the Analyze phase. Based on the analysis performed, prioritization processes need to be improved and developed in the land settlement process. A combination of SMART and AHP will be applied in the Improve phase and used to develop prioritization tools. Prioritization tools are required to minimize the gap and transition to the expected outcome with short cycle time in the land settlement process. The direct rating of SMART provides simplicity and transparency of the prioritization process. Meanwhile, the pairwise comparison of AHP allows the use of qualitative as well as quantitative criteria in supporting the group decision-making process. AHP cannot be fully implemented since it is difficult to compare all the alternatives and assign different priority numbers. This difficulty will be resolved by using a direct rating method, which rating a large number of alternatives quickly with satisfactory results. A combination of both methods is the best fit to be applied to the prioritization tools. With strong support from leadership and collaboration between Land HIS teams and Project Management teams, the average cycle time successfully reduce from 4 months to 2.5 months and this has an impact on increasing the number of sites that are ready for remediation. This result is obtained after improvement actions are implemented during the first six months in the Control phase.