KNOWLEDGE MANAGEMENT READINESS LEVEL ANALYSIS USING ASIAN PRODUCTIVITY ORGANIZATION (APO) FRAMEWORK APPROACH AS AN EFFORT TO INCREASE INNOVATION RATE IN PT TRANS-PACIFIC PETROCHEMICAL INDOTAMA

• Main Author: Aji Prasetyo, Bayu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/74582
• Institution: Institut Teknologi Bandung

The petrochemical industry is one of the main drivers of national economic development because it has been able to make a significant contribution to increasing added value, employment, and foreign exchange, as well as making a major contribution to the formation of national competitiveness. PT TPPI was established on November 21, 1995. TPPI produces industrial products, which include petroleum refining, the chemical industry, chemical goods, and other specialized wholesale trade. There are two business development projects currently being run in PT TPPI. First, the Revamping Aromatic Project, which will increase petrochemical production in the form of paraxylene from 600 thousand tons to 780 thousand tons per year, is targeted for completion in 2023. Second, the New Olefin Project, led by Parent Company, includes the construction of a naphtha cracker, including downstream units with polyethylene (PE) products of 1 million tons per year and polypropylene (PP) products of 600 thousand tons per year, which is targeted for completion in 2024 to 2026. The Continuous Improvement Program (CIP) allows TPPI to continue to expand and innovate. This program was launched in 2021 with the goal of improving and building a program through evaluation activities that will later provide solutions. However, the number of teams or employees engaged in CIP activities is continuing to decline. The researcher recognizes the importance of KM application in TPPI because it will stimulate innovation and growth. Unfortunately, TPPI has no department or regulatory body that explicitly organizes KM. Even though TPPI has not expressly assigned or implemented KM, it has adopted KM principles, one example being the implementation of CIP. Those issues and reasons become the primary push for the researcher to conduct research on the knowledge management readiness level at TPPI. This study was conducted using quantitative and qualitative analysis methods. The quantitative analysis involved the KM readiness level measurement using the APO framework and the prioritization sequence determination using the AHP method. The data collection for quantitative analysis will be conducted using the random sampling survey method with assumptions of a 90% confidence level and a 10% margin of error. The two lowest scores were selected as the most urgent gaps to be reduced in the qualitative analysis. The data collection for qualitative analysis will be conducted using semi-structured interviews to explore the OFIs as business solutions and implementation plans. The finalization of business solutions and implementation plans is done through the analysis of the combination of OFIs and KM methods and tools based on the APO framework. The KM readiness level was spot on at 131, which categorized "Introduction (Expansion)" with the involvement of 16.67% of the total number of TPPI employees. The prioritization sequence analysis was achieved with the involvement of 13.03% of the total number of TPPI employees, with the results as follows: 1) learning and innovation; 2) people; 3) process; 4) knowledge process; 5) KM outcomes; 6) leadership; and 7) technology. The first two KM categories (learning & innovation and people) become focuses to be analyzed in the qualitative analysis. The qualitative data input method is obtained through narrative and semi-structured interviews, in which seven VPs participated out of ten. Through qualitative analysis, which is the combination of interview results, opportunity of improvements (OFIs), and KM methods and tools, researchers are able to develop 7 business solutions that are transformed into 15 implementation plans. The implementation plans are scheduled to take place in August 2023 to December 2024. 4. The possibility of innovation rate increasement is evident in results that are consistent with the cause-and-effect relationship of implementation plans that begins with each business solutions that is rationally and substantiated by the gathering and analysis of qualitative data. The overall results of this study require a lot of input and are far from perfect, but they can be used as a preliminary study for the establishment of an explicit KM development framework at TPPI, beginning with the KM implementation preparation stage, identifying KM contexts, building KM habitats, implementing KM, and evaluating KM. Simultaneously, this study also aims to build a culture in which knowledge is viewed as valuable and strategic resources that must be managed in order to facilitate and ensure the long-term viability of the huge TPPI business and development.