OPTIMIZING MATERIAL MANAGEMENT IN UNDERGROUND DIVISION OF PT FREEPORT INDONESIA USING DISCRETE EVENT MODELLING

• Main Author: Febritirtana, Ibnu
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80068
• Institution: Institut Teknologi Bandung

PTFI, one of the largest copper and gold producer in the world, transform their mining operation from surface mine into underground (UG) mine. The move to underground mining is expected to extend the life of their mining operations to ensuring a steady supply of copper to meet the world's growing needs. By expanding to underground mine, PTFI aims to unlock new potential in copper extraction, ensuring a consistent and reliable supply of this essential metal to meet the ever-growing global needs. As demand for copper continues to surge, PTFI is actively increasing its production activities. This intensification is a direct response to the market's needs and reflects PTFI's commitment to maintaining its position as a key player in the global copper market. The transition to underground mining involves significant logistical and operational changes, requiring a steady flow of various supporting materials to sustain the heightened pace of production. Numerous challenges have arisen in the material management of underground (UG) mines, notably reflected in the growing volume of materials being circulated within the mine. This increase has necessitated an expansion in storage facilities to accommodate the escalating quantities of materials. Additionally, there is a notable issue with unused materials accumulating due to a mismatch between the quantities ordered and their actual usage in the mining operations. This imbalance highlights inefficiencies in the current material management system, underscoring the need for more streamlined and accurate processes to align material supply with actual demand in the UG mine environment. This Research focuses on improving the material management system through a variety of analytical techniques and methodologies. It seeks to enhance comprehension and obtain deeper insights into PTFI's existing material management procedures by employing both qualitative and quantitative analysis methods. A key component of the research involves conducting root cause analysis. This approach is crucial in identifying the primary factors contributing to the existing issues within the material management framework. By pinpointing these root causes, the study aims to address the core of the problem rather than just its symptoms. Furthermore, the research makes use of discrete event modeling. This technique is pivotal in creating a virtual representation of the existing material management system. Through this simulation, it becomes possible to observe the system's performance under various conditions and scenarios. This model is not only useful in analyzing the current state but also serves as a tool for developing and testing potential improvements. By simulating different scenarios, the study aims to identify more efficient and effective strategies for material management, thereby proposing tangible improvements to the existing system. This research will include a comprehensive cost analysis to evaluate and compare the cost incurred by the current system against those of each proposed scenario. The primary criterion for selecting the optimal scenario will be its effectiveness and efficiency, particularly in terms of cost reduction. The scenario that demonstrates the highest level of operational efficiency while incurring the lowest possible costs will be identified as the most suitable option. This approach ensures that the chosen strategy not only improve the material management system but also aligns with cost-effectiveness, making it a viable and sustainable solution for implementation.