IMPROVEMENT OF DRILLING AND COMPLETION MATERIAL WITHDRAWAL SYSTEM AT PT. CHEPACINDO THROUGH JUST IN TIME APPROVAL PROCESS

• Main Author: Irwan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/55020
• Institution: Institut Teknologi Bandung

Rig operation is critical activity in upstream oil production which manage by Drilling and Completion (D&C) department in PT. CHEPACINDO. D&C department manage multiple rig operation that operates 24 hours a day, 7 days a week (24-7) and covered all area of its operation in Riau province. To support material distribution for rig operation, D&C operates 24-hour material Go Down that are exist in 4 different areas in Sumatera. Particularly for operation in Duri area, during office hours, there are two sources of material supply; Warehouse and Go Down. The operation of these two facilities considered as redundancy and inefficient process that caused extra cost to operation. This is becoming the business issue of this research. The cost of this redundancy is contributed from manpower, transportation, heavy equipment, and utility cost with total per year around 3.4 billion rupiah. There are several factors involve in existing material distribution process such as operation hours, material buffer, approval process, etc. To identify the existing process and connection between the factors, swim lane diagram was used, and then the root cause was investigated using current reality tree. It was found that the operation of D&C Go Down during office hours and the delay purchase approval have caused this redundancy. By evaluating the material flow process started from development of material plan, purchase request, approval process and distribution it was found that the redundancy process can be eliminated by using just in time approval process, improved process review and adjustment of D&C Go down operation hours. Just in time approval process will enable immediate material withdrawal. There are several combinations of alternatives created as solution and the Kepner Tregoe method is used to select best solution. In the new procedure, purchase approval will be conducted by a delegated approver and an IT tool will be used to help speed up request review and validation. With this improvement, D&C Go Down can be closed during office hour while all material requests will be provided from Warehouse. Implementation of this new procedure will require several actions such as development of IT tools, delegation of Authority of material purchase approver from cost center owner and socialization of new procedure to all stakeholders. With the implementation of selected solution, redundancy of operating hours between D&C Go Down and Warehouse can be eliminated.