INTEGRATED DECISION-MAKING APPROACH TO SOLVE OWNER ESTIMATE OVERDUE PROBLEM IN SERVICES PROCUREMENT ACTIVITY, CASE STUDY: PT BADAK NGL

• Main Author: Destrianda, Widi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/57493
• Institution: Institut Teknologi Bandung

PT Badak NGL prepares its own independent cost estimate, namely Owner Estimate, to serve as a benchmark for evaluating the bidder’s offer. In the past few years, the Owner Estimate can’t meet the completion time target. The potential impact for an LNG plant is a loss of approximately USD 402 thousand from the gas losses due to the train trip. Five of eight common causes of the procurement delay comes from within the internal organization. To improve the procurement activity as a whole, PT Badak NGL must improve internal effectiveness to conduct the procurement process by ensuring the Owner Estimate’s completion target is achieved. Avoiding delays in the procurement process can save time and money. The root causes of the problem are obtained using Kepner-Tregoe problem analysis. The criteria and alternatives solution is generated using the Value-Focused Thinking (VFT) approach. The combination of the Best-Worst Method (BWM) and Analytic Hierarchy Process (AHP) is used in conjunction to select the most appropriate solution to the problem. BWM is conducted to obtain the weight of the criteria, while AHP is undertaken to get the score of subcriteria and alternatives. Sensitivity analysis is conducted to check the robustness of the selected solution. Discrete-Event Simulation (DES) is performed to devise evidence-based implementation scenarios that the decision-makers can implement without making complex considerations. The root causes of the Owner Estimate overdue problem are the expired software license and insufficient manning quantity. Several alternatives solutions can be generated to solve the problem: renew software license, increase the number of Estimators, use alternative software, and create a substitute application to calculate Owner Estimate. By conducting Multi-Criteria Decision-Making (MCDM), the best solution is to increase the number of Estimators. Implementation Scenario can be obtained depending on the number of Services Purchase Requisition received by the Procurement Section. From this research, the integrated decision-making approach is proven to effectively solve the problem in developing a solution that is easy to implement by the decision-makers.