COST ANALYSIS OF OUTSOURCING STRATEGY BY CVP METHOD IN MAINTENANCE TEAM OIL AND GAS COMPANY

• Main Author: Nugroho
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/54857
• Institution: Institut Teknologi Bandung

Currently Maintenance team having limited resource loading to support daily Operation activities, the impact is it will late to provide response time and increase maintenance cost for corrective job. In line with Company strategy, the position for retired maintenance employee (low grade tchnician) or employee who will move to other department will be not replaced even though the maintenance target activities are still the same. With this condition Company decided to apply outsource service contract for “backfill” low grade technician position. We use term “backfill” instead of replacing. This maintenance services are to provide resource unit rate (RUR) scheme short service activities and material/spare part procurement for materials that are not supplied by Warehouse. This contract home base is in Duri but area coverage to support all maintenance team across Sumatra Operation. Accelerate critical spare part for critical/consumable items, especially for Air Compressor, CVC pump and Water Injection Pump material to prevent upset condition or LPO/loss of production opportunity. However, maintenance activities are typically outside of the core business of production facilities, hence enterprises often fail to catch the opportunities that may originate by properly optimized management strategies. A strategic maintenance management should hence encompass the possibility of outsourcing maintenance activities to ensure the necessary perfomance of production systems, while allowing enterprises to concentrate their resources on their core activities. In order to be effectively undertaken an outsourcing strategy must be supported by a proper performance-oriented contract. This paper aims to provide an adequate methodology to overcome the problem of resource shortages and to determine the best alternative for the best human resource strategy based on the conditions of the oil and gas market around 2017-2018 where oil prices tend to be low at that time. The methodology here proposed is based upon the evaluation of the expected profit function of both the total revenue and the total cost, by performing a trade-off analysis on the basis of the transaction costs and CVP (Cost Volume Profit) analysis. In addition, this research also aims to see and predict how much budget will be given by new operators after transferring oil and gas block area to new stakeholders using linear regression analysis