USING THE KEPNER-TREGOE & ANALYTICAL HIERARCHY PROCESS FOR STRATEGIC PROJECT EXECUTION TO RDMP RU V BALIKPAPAN PROJECT

• Main Author: Fransco, Pancar
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80696
• Institution: Institut Teknologi Bandung

Following The “Peraturan Presiden Republik Indonesia” No. 146 Tahun 2015 about Implementation of Oil Refinery Development in The Country which was declared by President of Republik Indonesia (RI) aiming to provide guidelines for the implementation of construction and development of oil refineries and to realize national energy security through increasing the supply of fuel and other products in an integrated manner. The President decree has assigned PT. PERTAMINA (Persero) as National Oil State Owned Company with government to the construction of oil refineries which PERTAMINA (Persero) acts as PJK (“Penanggung Jawab Kegiatan”). As the pilot project to this assignment, PT. PERTAMINA (Persero) has initiated Refinery Development Master Plan (RDMP) which was pioneered by RDMP RU V Balikpapan. PERTAMINA Refinery Unit V (RU V), located in Balikpapan City, East Kalimantan having existing capacity around 260,000 BOPD (Barrel Oil Per Day) which has been divided into Primary Process (Crude Distillation Unit & High Vacuum Unit) and Secondary Process (Hydro Catalytic Cracking Unit) including others Process Units such as Platforming, Hydrogen Manufacturing Unit, Treating Unit, Oil Movement, Offsites & Jetty, and so on. Through RDMP RU V Balikpapan Project, is aimed to increase capacity of 100,000 BOPD to the existing Refinery Unit V Balikpapan, increasing refinery product (Fuel and Petrochemical) such as increase in diesel fuel of 30,000 BOPD and new propylene product of 230,000 tons per year, increasing the quality of fuel product from Euro II to Euro V standard, increasing the Nelson Complexity Index (NCI) from 3,7 to 8,0 by additional conversion unit to produce much more higher yield value product from 75% to 96%, increasing the flexibility on Crude Processing which having higher sulfur contamination. The total project cost is estimated around USD 6.5 Billion, which was started with the funding from PT. PERTAMINA (Persero). The scheme for project funding has been considered to go through Project Financing mechanism with the projection for the funding will be earned is expected around USD 3.1 Billion. To execute RDMP RU V Balikpapan Project, PT. PERTAMINA (Persero) has established affiliates company named as PT. Kilang Pertamina Balikpapan as Special Purpose Vehicle (SPV) which has been assigned to the task of executing and supervising the RDMP RU V Balikpapan Project as National Strategic Project. The Contract for RDMP RU V Balikpapan Project was signed on December 10th, 2018. The Kick Off Meeting has established effective date from February 28th, 2019, with the duration 53 months. As time goes by, until October 25th, 2022, the overall project has achieved 61.99% (actual) vs 95.81% (Plan Baseline). The project delay has been suffered mainly caused by Covid-19 pandemic which affecting to the progress of the project that having difficulties on ensuring schedule for starting fabrication/manufacturing of equipment/material, material on site, manpower loading, and the construction activity. So, the author would like to approach the mitigation plan in terms of finding solution to the project delay that has to be accelerated from various sector based on the root cause analysis by using theoretical approach through two methods which are Kepner-Tregoe Problem Analysis and Fault Tree Analysis. At the end of the thesis, based on the available alternative business solution items for each root cause factor, the author establishes an implementation plan as one the objective of this thesis that is deemed as strategy and plan from the best-selected solution through The Analytic Hierarchy Process (AHP) to accelerate the project completion and also to achieve economical margin value including all parameter and variables as it has been defined as per investment decision.