COST OPTIMIZATION AND RISK MANAGEMENT PROGRAM FOR THE FUEL SUPPLY NETWORK OF DELTA MAHAKAM MARINE OPERATION
PT Pertamina Hulu Mahakam (PHM) is an oil and gas company currently operating in Mahakam PSC. In order to support production activities, the company utilizes marine fleets in the Delta Mahakam area. PHM procures a service contract mechanism from the vessel owner and separately liaises with another c...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/80685 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT Pertamina Hulu Mahakam (PHM) is an oil and gas company currently operating in Mahakam PSC. In order to support production activities, the company utilizes marine fleets in the Delta Mahakam area. PHM procures a service contract mechanism from the vessel owner and separately liaises with another contractor to conduct fuel provision for those marine fleets.
The stakeholders highly encourage cost optimization programs to ensure business profitability. Operational fuel expenses constitute a significant component of the annual budget and have become the highlight of the cost reduction initiative. The risk management program is evaluated to ensure streamlined implementation with minimal disturbance impact. Four main criteria (operational expenses, service reliability, value creation, health, safety, and environment) exist to establish the best supply network for the company. Revamping the fuel supply network with four alternatives (direct shipment, distribution center, hybrid network, vendor-managed inventory) is studied to evaluate the company's associated risks and potential benefits.
The analytical hierarchy process (AHP) decision-making process is applied to determine the best fuel supply network in the Mahakam area. The hybrid network shows the highest rating at 33.7% at a 0.5% consistency ratio based on the evaluation from subject matter experts. Supply chain risk management uses Failure Mode Effect Analysis (FMEA) to avoid disruption in company operations. The hybrid network has the lowest total risk priority number compared with other alternatives, with 212 points.
The implementation plan for the hybrid network is provided to support the realization of the project and obtain cost savings for the company. The program highlights the top three risk issues: personnel injury, oil spill accidents, stock losses, and discrepancies.
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