PROPOSED IMPROVEMENT OF THE VENDOR EVALUATION AND SELECTION PROCESS USING RISK MANAGEMENT STRATEGY ANALYSIS AND ANALYTICAL HIERARCHY PROCESS (AHP) METHOD AT PT. PERTAMINA REFINERY UNIT VI

• Main Author: Komang Arie Ronny Wijaya, I
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67232
• Institution: Institut Teknologi Bandung

Storage tanks are an important facility in the oil and gas industrial process because storage tanks are not only a storage place for products and raw materials but also function to maintain the smooth availability of products and raw materials and can protect products or raw materials from contaminants. In operation, storage tanks require periodic inspections, cleanings, and maintenance to maintain proper oil and gas quality as well as the longevity of the facility. Storage tank maintenance is an essential service that extends the service life of storage tanks. In general, storage tank maintenance is carried out by external vendors, so the vendor evaluation and selection process are crucical to ensure project completion according to the target. The impact of poor vendor selection can result in delays in the completion of work, which causes a negative impact on the company. It will hamper the company's operations, incur financial losses, and cause delays in work operations. This condition has been experienced by the company, where based on data since 2015, 5 out of 8 storage tank maintenance projects are experiencing delays. Based on this, the company must make improvements in the process of evaluating and selecting vendors. The purpose of this research is to identify the factors that determine vendor selection, identify and analyze risk management strategies, and the selection of alternative vendors using the Analytical Hierarchy Process (AHP) method to provide alternative solutions for improvement in the vendor selection process. The results of this study indicate the criteria and sub-criteria that are used as factors that determine the selection of vendors with the main criteria with the largest weights and percentages contained in the criteria for performance history, execution plans and methods, as well as vendor presentation capabilities. While vendor management expertise and financial capability have the lowest percentages. As a solution, companies are encouraged to focus more on and enhance each of the criteria required as a determining factor in vendor selection, especially the criteria for vendor management experience and financial performance, which are still classified as the lowest criteria.