Abstract :

PT XXYZ is an oil and gas industry company that is a downstream company, namely a company that processes crude oil into various products that are ready to be transferred to the market. Oil and gas companies, especially PT XXYZ, are certainly faced with various challenges that need to be faced related to future business continuity, in the form of the challenge of substituting fossil sources with environmentally friendly energy followed by rapid technological developments. PT XXYZ is also faced with the challenge of always being able to respond to changes in demand in the market and able to maximize the production until distributing it to customers. PT XXYZ has a problem in CDU production which is not achieving the monthly production target. The company has loss 103.5 million barrels of products that can be produced which is equal to losing 8 million USD. The production monthly target is determined based on STS documents. Several factors that can affect production are quality of materials, quantity, unplanned shutdown/slowdown, operational limitation, and low intake. Based on the root cause analysis using the Ishikawa Diagram method, it is concluded that the main problem that may be solved by PT XXYZ is related to the supply activities and material readiness. Inventory management at PT XXYZ not implementing a policy to be able to control stock and avoid losses in inventory. PT XXYZ experienced stockout on various materials and the safety stock level tends to be stagnant and all materials have the same safety stock value. By carrying out inventory management using the Q-model, the company has a standard and policy for each crude oil material, so as to reduce the risk of stockout and hopefully will maximize the needs of CDU production. PT XXYZ gains more profits by saving 56.4 million USD in inventory cost and able to achieve the production target with 95% of service level.

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Keywords :

CDU production, Downstream business, Inventory Management System, Ishikawa Diagram, Oil and gas, STS document.

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