CONTRACTOR EVALUATION AND SELECTION WITH ANALYTIC HIERARCHY PROCESS METHOD FOR PROGRAMMABLE LOGIC CONTROLLER PROGRAMMING SERVICES AT PT FREEPORT INDONESIA
Crusher conveyor systems in the underground mine serve as the backbone of the company’s copper mining operations in Papua – Indonesia, which necessitate PLC programming to enhance automation capabilities in mining operations. Contract Department of SCM Division is assigned an imperative task of cont...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/80727 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Crusher conveyor systems in the underground mine serve as the backbone of the company’s copper mining operations in Papua – Indonesia, which necessitate PLC programming to enhance automation capabilities in mining operations. Contract Department of SCM Division is assigned an imperative task of contractor evaluation and selection for the PLC programming at PT Freeport Indonesia, given the company lacks the core competence and resources to conduct such services.
The research study integrates theoretical insights on contractor selection, MCDM theory and AHP method, combined with industry benchmarks implemented by Contract Department of SCM) Division of PT Freeport Indonesia to define a robust set of selection criteria and their respective weights from company’s expert judgements as the basis to evaluate and assess the contractors.
Implementing quantitative research methodology and Analytic Hierarchy Process method based on the selected criteria and sub-criteria, the research study utilizes primary data of expert judgment and secondary data of contractor quotations to develop integrative scoring system and provides recommendation of the best contractor with the highest final rating to be awarded the PLC programming projects in PT Freeport Indonesia.
The research study uncovers the most relevant criteria for PLC programming services in PT Freeport Indonesia as project comprehension, price analysis, organization experience & project performance, and workforce composition. After running the AHP model, Contractor B emerged as the most superior contractor to conduct the required PLC services.
In conclusion, this research study provides relevant and most important contractor selection criteria for PLC programming services and the recommended contractor for the higher company’s management to make informed decisions regarding PLC programming services for company’s mining operations.
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