PROPOSED COST OPTIMIZATION USING OPERATIONAL EXCELLENCE IN COAL MINE PARAPATAN SITE, EAST KALIMANTAN
The effects of the Covid-19 are still happening and coal price will continue to deteriorate. Pressure towards the sector coal company will continue in 2020 as the industry and power plant sector experienced a slow down as export destination countries decrease their energy consumption. The rise...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/53065 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The effects of the Covid-19 are still happening and coal price will continue to deteriorate.
Pressure towards the sector coal company will continue in 2020 as the industry and power
plant sector experienced a slow down as export destination countries decrease their energy
consumption. The rise and fall of coal price gives a significant impact to the coal industry.
As a mature coal producer Berau Coal has strengths for surviving in economic issues.
Therefore, required to reduce mining costs during hardship situation and have to continues
improvement in mining operation in order to enhance the level of competitive position.
Based on analysis of business issue external and internal, the level strategy has to
implemented is cost leadership. In term of that strategy required the implementation of
Operation Excellence management system gives a company the benefits of lower costs,
increased efficiencies, fewer injuries, and maximum sustainable returns on operating
assets. The implementation operation excellence in this research to be focused on the
program based on result the root cause analysis which become impact to achievement of
coal production target, safety improvement and mining costs reduction.
Operational Excellence framework was initiated by Top Management to state Business
Expectations and then take the following steps; setting production targets and costs,
implementation and monitoring. The output of this process is expected to be a benchmark
of Process performance. Analyze outputs and identify opportunities for improvement
through diagnostic analysis and good practice / benchmark comparisons. The result of
diagnostic analysis will be used to produce improvement recommendation that can be
affecting the Work Planning and Scheduling, Production Target revision, and the changes
in available resources and also delivering feedback regarding the initial business
expectation will be helpful for Top level management in making further decision.
Implementation roll-out by Instituting systems and processes to enable continuous
improvement.
Cost Optimization Using Operational Excellence as a business solution by the result of
business analysis are Safety improvement, operational project improvement initiatives
(OPII), equipment productivity improvement by Joint improvement program (JIP) and
changes in mining method. In terms of mine strategy, Pit selection with higher level of
confidence and lower cost. Specific to operation method, this research proposes and
recommended to application of surface miner and invest bridge conveyor in order to
achieve more excellence operation in terms of: social issues and safety. The financial
projection of Parapatan mine still yields a positive NPV is projected to be USD 82.39
million, 69% IRR, and payback period 4,13 years, thus, still support the financial
sustainability pillar of related mine project. The operational expenditure also decreases
25% for overburden removal and 65% for coal processing. |
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