DECISION ANALYSIS ON MITIGATING COVID19 OUTBREAK TO WORKFORCE SAFETY & HEALTH IN PT XYZ OPERATION EXCELLENCE PERSPECTIVE USING ANALYTIC HEIRARCHY PROCESS

• Main Author: Cahyono, Heru
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/55347
• Institution: Institut Teknologi Bandung

CVX, Fortune 500 top twenty energy company, has been on a journey to improve return in tough business environment which are the Company has worthy rivals who continue to get better, higher expectations from stakeholders, low oil price, and Covid19 outbreak. Therefore, XYZ, as CVX subsidiary who produce oil and gas in Indonesia, should also actively contribute in the journey. XYZ need to find the best streamline solution in every business aspect including natural gas processing in Northern Area of Operation Department which currently manages the following challenges: steep production decline, high gas plant operation & maintenance costs, resources gap, and negative feedbacks from stakeholders as the internal customers who are mandated to consume the gas minimizing operational expenditure needed to procure natural gas from third parties. Therefore, gas production system is categorized as low priority facilities refer to company business continuity plan and first to be shutdown during major business disruption such as resource reduction due to COVID 19 pandemic. Gas production shows a declining trend with average rate around 31% per year as the impact of the limitation of optimization efforts to the promising remaining gas potential that can be recovered in respond to budget and cost management changes in the Company due to current oil price environment. Consequently, gas plant operation and maintenance cost are significantly increased to mitigate the difference between equipment design basis with the actual gas composition, mostly associated gas, which cause severe internal corrosion and plugged by corrosion product. Further, gas production team stakeholders provide negative feedback since associated gas has more impurities such as H2O, CO2, and H2S content compared to non-associated gas which lead to extremely higher internal corrosion rate both for PGT gas turbine & HCT pipeline operation & maintenance. The last, but not least, issue is field personnel gap due to attrition, personnel development, and Covid19 outbreak. The situation and problem analysis on the eroding gas production system value is elaborated using fish bone diagram which confirmed that the most critical issue is the reduction of field personnel due to Covid19 outbreak which may lead to shut down several to all facilities in light oil production depend on the cases severity. The Analytic Hierarchy Process (AHP) elaborates on the decision-making process to define and select the alternative options in CVX operation excellence perspective as the main guideline on mitigating Covid19 outbreak to workforce safety and health; process safety, reliability, and integrity; environment; efficiency; and stakeholder. Five (5) criteria and seven (7) sub-criteria are defined to select the best solution during Covid19 outbreak in gas production team operation department. Considering Covid19 outbreak prevention protocol in Company workplace which limit offline meeting, experts’ opinions were gathered via online form using Microsoft Teams application where every pairwise question was designed using 2 questions using rating choice due to software limitation to make a pairwise question in one question completed with highlight explanation for each question and section. However, some experts were still need guidance in providing score using AHP frame through phone conversation by simplifying the choice into three option in the first approach 1 – 3 for some preference, 4 – 6 for moderate preference, and 7 – 9 for strong preference. The next approach was providing guideline for the experts to select score with reference to the previous selected preference range. Result of AHP calculation shows three (3) criteria as the main contributor to overall weight which are: workforce safety & health (0.54); process safety, reliability, and integrity (0.18); and environment (0.17). Sub-criteria in workforce safety & health, managing safe work and fit for duty, have the same weight. From the analysis result, operation mode change by merging gas plant operation with gathering station which located in the same area is the best solution which can fulfil most of operation excellence focus areas and significantly exceeding the other two alternatives: temporary shutdown gas plant operation and outsource gas plant operation. Alternative rank using AHP is very useful to help XYZ choose the streamline solution in operation excellence perspective which mostly has intangible criteria. This research help XYZ and may lead to permanent solution since it improves gas production system value by reducing operation cost by 10% from employee salary and lowering flaring intensity. It is aligned with both CVX next five years focuses in financial and environment.