ACHIEVING CRUDE OIL LIFTING PRODUCT TARGET TO INCREASE PROFITABILITY AT REFINERY UNIT VI, BALONGAN, INDONESIA

• Main Author: Fauzan, Faiz
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67265
• Institution: Institut Teknologi Bandung

Oil and gas are one of the energy sectors that as the main commodity provides by the company and are also prioritized by the state to meet the needs of the people. This sector facing many challenges including lessening world dependency on oil as an energy resource. The shifting of oil energy to more environment-friendly energy, unpredictable change in oil prices, and significant change in knowledge and technology encourage the company to always update its strategy to fulfill the market demand. Refinery Unit VI as a downstream business area, they have a responsibility to provide crude oil products that can be delivered to the market. The crude distillation unit (CDU) is the main unit to process the raw material to become the unfinished product and will be transferred to another process. Based on data, the CDU production activity not achieving the monthly target as it’s regulated in the STS document. With an average achievement of 96.8%, the company has lost 103.51 million barrels of products that can be delivered to the market. Based on the Ishikawa Diagram it’s stated to have four categories of causes which are supplier, materials, environment, and equipment/tools. It’s concluded that the root cause is in the material and supplier category that can be solve by RPO department. The lack of inventory control where there is no policy in inventory, and the stagnant safety stock value of each material that is often below its level. There is no material prioritization and no effective ordering plan which actually can save company costs in inventory. Using the proposed inventory management system (Q and P model), weighting material method, and AIL measurement can solve this problem. Q-model is the best fit model that is able to face any factors such as fluctuating demand and other unwanted situations that may occur. Based on the simulation and other results, Refinery Unit IV is able to increase its profits by achieving the monthly target, and also save inventory costs up to 65.4 million USD.