Articles

Optimizing Strategy for Property Development Plan Changes: A Multi-Criteria Decision-Making Approach Using AHP Methods (Case Study: Project Bumi Cipta 3 Jakarta)

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This study examines the optimization strategy of property development plan changes for Bumi Cipta 3 Jakarta, a project by PT Cipta Bangun Property, one of the largest property companies in Indonesia. The analysis uses the Analytic Hierarchy Process (AHP), a multi-criteria decision-making (MCDM) method. The project is motivated by significant post-pandemic shifts in office space demand within Jakarta’s Central Business District. The study identifies four alternative development options: continuing with the office tower plan, or pivoting to an apartment, data center, or hospital. By interviewing key decision-makers and using the AHP method, the research evaluates financial and non-financial criteria, such as market attractiveness and site analysis. The findings suggest that the hospital alternative offers the highest potential in both financial returns and market alignment, followed by the data center and apartment projects. Strategic recommendations are provided to prioritize the hospital project while keeping the other alternatives in consideration for phased development, thus ensuring flexibility in response to future market conditions.

Decision Making to Choose Communication Network System for Teleremote Dozer Operation Using Analytic Hierarchy Process

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One type of heavy equipment is a mining material pushing tool called a dozer. Dozers generally work in areas near cliffs that are prone to landslides, where these areas can be classified as dangerous areas. New technology is needed to increase the safety of dozer operators from the threat of danger when operating a dozer. Teleremote dozers are one method that can reduce the risk of accidents that can happen to dozer operators. Instead of operating the dozer from inside the cabin, the operator operates the dozer via a remote control device.

There is an important aspect in operating a teleremote dozer, namely the need for a signal that will transmit data and commands from the remote control to the dozer unit operating in the field. Good and uninterrupted signal quality is the main key to good teleremote dozer operations with minimal risk.

The wireless signal network system currently used by companies will enter its obsolete period. However, the old system was tough and not easily damaged. There are strategic options for supporting the signal network for teleremote dozer operations: maintaining the old network system, replacing it with a new one, or using the old and new systems in a hybrid manner. Because there will only be one strategy chosen, a decision must be made. The SWOT AHP method is used for decision making regarding the strategy to be taken. The results of the AHP SWOT will produce a strategy, which will become a benchmark for making subsequent alternatives. Determining alternative types of network systems to support teleremote dozer operations will use the AHP method.

Determining The Contract Service Strategy at Coal Terminal Maintenance to Address Contractor’s Inability to Maintain Availability of Fixed Plants in Supporting Shipments Activities at PTKPC a Case Study PTKPC, East Kutai, East Kalimantan, Indonesia

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PTKPC, a coal producer, was facing challenges due to a permit transition in December 2021 from Coal Mining Contract of Work (PKP2B) to Special Mining Business License (IUPK). This change increases operational costs with added royalty rates, value-added tax, and profit-sharing obligations. To address this issue, the company decided to streamline contractors in each department in all business units, consolidating various tasks under one umbrella contract. The goal is to provide a big volume of work, potentially lowering rates and reducing PTKPC’s operational costs. However, relying on a single contractor for crucial operations, as seen in the Coal Terminal Maintenance Department (CTMD), introduces risks. The sole contract winner, PTPB, struggles to meet obligations since the contract’s initiation on December 1, 2021. The average contract fulfillment since commencement date is 86% of 100% desired target, disrupting fixed plant Coal Terminal maintenance activities. Physical availability is 93%, below the 94% target, increasing CTMD’s maintenance costs by $0.059 per ton. This research seeks to identify the root causes of PTPB’s inability to fulfill contractual duties and explore alternative solutions. and then from all the existing alternatives, what is the best alternative in responding to this condition. Utilizing primary and secondary data from PTPB’s monthly proforma invoices, contract scope, and CTMD’s monthly reports, the research employs methodologies like problem tree analysis and stakeholder analysis to unravel business complexities and identify root cause of the problems. Qualitative data collection methods, including focused group discussions (FGD) and semi-structured interviews, will be used to determine alternatives. These alternatives will be assessed using the Value-Focused Thinking (VFT) methodology. The Analytic Hierarchy Process (AHP) methodology, assisted by the AHP Super Decision application, will determine the best alternative: the “Implementation of Warnings and Penalties to PTPB”. Implementing this alternative demonstrates PTKPC’s commitment to stakeholders, ensuring contractor accountability without disrupting fixed plant maintenance. Penalty funds will support CTMD’s financial viability, funding additional resources for tasks beyond PTPB’s capacity. This strategy may be applied to other contracts within PTKPC.

Cost Optimization and Risk Management Program for the Fuel Supply Network in an Oil & Gas Swamp Operation

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Marine activity is a critical part of an oil & gas company that operates in the swamp area. The company utilizes rigs, barges, and boats to achieve maximum production. Fuel supply for marine fleets is highly essential to ensure smooth operation. Since fuel cost becomes one of the biggest components of operating expenses (OPEX), the stakeholders highly encourage cost optimization programs to ensure business profitability. However, any optimization program shall have a robust risk management program to avoid disturbance in the operation and potential financial losses.

The research aims to select the best fuel supply network in the swamp operation area of an oil & gas company using four criteria (operational expenses, service reliability, value creation, and health safety & environment) based on the literature review and subject matter experts’ analysis. The study will analyze several alternatives using the Analytical Hierarchy Process (AHP) as a decision-making tool and Failure Mode Effect Analysis (FMEA) as the risk management method. The result shows that the hybrid network has the highest rating in AHP with a 33.7% rating and the lowest total risk priority number with 212 points.

Analytical Hierarchy Process as a Priority Strategy for Handling Bad Debts in Cooperatives

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The Kediri City Government and the Regional Development Planning Agency are committed to accelerating the economic recovery of the Kediri city community after the impact of the Covid-19 pandemic, by focusing on MSME capital, the program named Kredit Usaha Melayani Warga or abbreviated as KOPERASI provides very low interest loans of 2% per year for business people in Kediri city. In the utilization of this credit, it turns out that there are still bottlenecks in installments, which if allowed to continue, will have an impact on financial losses and also not achieve the goal of community economic recovery. So that the government needs an in-depth study as a real form of handling bad credit and also the concept of effective and efficient KOPERASI program governance. This research uses a quantitative descriptive approach, by applying the Analytical Hierarchy Process (AHP) method. Starting from making questionnaires and determining respondents. The respondents selected were 7 experts, namely, officials at the Kediri City Cooperative & UMTK Office, lecturers at the Faculty of Economics, Universitas Nusantara PGRI Kediri, and MSME beneficiaries of the KOPERASI program. Then the answers are assessed and compared to produce a scale as a determination of the most effective method of overcoming bad credit.

Project Selection of Indonesian Local Oil and Gas Service Company Using Analytical Hierarchy Process (AHP)

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PT Duta Wisesa Servisindo or PT. DWS is a local Indonesian company that offers services in the oil and gas sector. This company was founded in 2015 when world oil prices were falling and used this momentum to invest in assets, especially in cementing units used for drilling and workover work. At the beginning of the establishment of PT. DWS believes that they can become the main local Indonesian oil and gas services company in Indonesia, because many local competitors stopped their businesses during the 2015 crisis.

In 2023, world oil prices have improved, at the end of 2023 PT. DWS received 4 job offers from SOE and private sector to work on in early 2024, namely the Jambi Project, Lampung Project, Jambi Project and Cepu Project, but due to unit limitations, this company could only choose 3 job offers to work on. Because PT. DWS does not yet have a decision-making process. In this research, the Analytical Hierarchy Process or AHP is used to provide recommendations for 3 projects that are recommended to be taken by the company.

In this AHP assessment, the criteria used as assessment parameters are marketing and sales, customers, financial feasibility, administration and project specifications, each of these criteria has several sub-criteria with a total of 13 sub-criteria. Based on the assessment, the criterion with the highest weight is financial feasibility (51.4%) and the sub-criterion with the highest weight is ability to pay (22.9%). After the assessment was carried out, based on the ranking, the 3 projects that were recommended to be taken were the Jambi project (33.4%), Cepu Project (30.7%) and Lampung Project (19%). Based on the assessment results, it can be seen that service users from the BUMN sector dominate compared to the private sector because they have the ability to pay and have high profitability compared to private companies, even though private companies are superior in terms of payment, administration and equipment requirements.

Proposed Improvement of Contractor Selection for Maintenance of Reactor Effluent Air Cooler Using Value-Focused Thinking and Analytic Hierarchy Process at PT KPI RU V Balikpapan

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PT KPI RU V Balikpapan performs turnaround to ensure equipment reliability for domestic oil and natural gas production. The Reactor Effluent Air Cooler (REAC) is an important refinery secondary process equipment. Experience in earlier maintenance showed that repeated work on the equipment’s welding tube required further repair processes until it met welding compliance criteria. REAC repair rejections exceeded the 2% target at 43%. Welding on furnaces and tubes was repeated, consequently resulting in delays of work completion that may cost money. The study identified contractor selection criteria using Value-Focused Thinking (VFT). After consulting Subject Matter Experts and Management, five contractor selection criteria were identified: Safety and Health, Technical Ability, Management Capability, Reputation, and Financial. The contractor selection consider uses the Analytic Hierarchy Process (AHP) based on selection criteria. Contractor APL is the best alternative with a 57% score. AHP methods on goods and services procurement can improve contractor selection at the pre-qualification or tender evaluation phase.

Job Cat Egory Prioritization and Selection in PT.MAI 88 Using Analytical Hierarchy Process (AHP)

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PT. MAI 88, one of the government company divisions in the Pekanbaru City which operates in the fields of Public Works, Spatial Planning, Housing, Settlement Areas and Land. PT.MAI 88 experienced difficulties, namely that material resources were not allocated properly. With the main aim of prioritizing the procurement of goods for road and bridge construction maintenance, this research focuses on one of the uses of Multicriteria Decision Making (MCDM), namely the Analytical Hierarchy Process (AHP) to determine the ranking of each construction goods procurement job. The AHP method itself has been discussed with stakeholders involved in the project. It has four categories and thirteen subcategories that have been determined and lead to 12 job alternatives. The results of the AHP show that the criteria with the highest weight starts from Urgency followed by Public Satisfaction, Quality, and Cost Management. Then for the Sub criteria with the highest weight, namely Reports from local public, followed by Traffic Management, Long-term Durability and Reliability, Compliance with specifications and Standards, Labor Cost, Public Safety, Rent Construction Equipment, Resources Availability, Material Cost, Public Engagement and Communication, Stakeholder Expectations, Ease of Installation and Integration, and finally Subcontractor Cost. The alternatives with the highest weight are Procurement of Road Signs, Procurement of “Urugan Pilihan”, Procurement of Base A Stones, Procurement of Base B Stones, Procurement of Several Construction Equipment, Procurement of Asphalt Concrete Binder Course, Procurement of Non-subsidized diesel fuel , Procurement of Dump Truck, Procurement of Binder Absorbent layer, Procurement of material for Culvert Channels and Boxes, Procurement of Construction Retaining Wall, Procurement of Cementation Work.

Decision Analysis to Improve Company’s Time Utilization during Clove Harvest-Interval Using Analytical Hierarchy Process and Situation Appraisal

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Indonesia is a country that has very diverse natural resources, one of which is spices. Various kinds of spices such as cloves, nutmeg, ginger, turmeric, candlenut, pepper, cinnamon, and vanilla are what make Indonesian spices known worldwide and contribute to the country’s economy. Clove is a typical Indonesian spice originating from the Maluku islands (Ternate and Tidore). Currently, cloves have been cultivated in various regions in Indonesia, namely Java, Central Kalimantan, East Kalimantan, Sulawesi, and others. Clove season in Indonesia occurs once or twice a year, namely from April to May and October to November. The farmers will harvest ripe clove flowers, then the clove flowers are dried in the sun and processed as raw materials for the production of cigarettes, cosmetics, and others. CV. Rempah Jaya is one of the leading and best clove suppliers in Indonesia. Especially variations of cloves such as whole cloves, clove oil, dried clove leaves, dried clove stems, and clove ash. Usually, the supply of cloves to the cigarette factory is held every few months in large quantities, so a lot of spare time is available before sending it to the factory. Therefore CV. Rempah Jaya needs the right work to be done when there is a time vacuum. The purpose of this study is to increase the time utilization of CV companies. Rempah Jaya during the clove harvest interval. In this study, a situation analysis was carried out using the Kepner-Tregoe method, then external and internal analysis was carried out using Mendelow’s Matrix and SWOT Analysis methods. After that, root cause analysis was carried out using Ishikawa Diagram. Then the decision-making process is carried out using the Analytical Hierarchy Process (AHP) method. From the results of the AHP method, alternative values were obtained for the three available criteria, namely oil distillation, spice mixtures, and collaboration with the food and beverage industry with values of 0.64, 0.19, and 0.17.

Infrastructure Spin-Off Decision in the Telecommunication Company: Project Valuation and AHP Analysis

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The telecommunication industry faced a negative headwind due to the emergence of OTT (over the top) services, resulting in lower service prices, limited network-based services, and increased network capex. This led to a scissor effect, with significant growth in capex and stagnant revenue growth. To address this, European operators spun off the service telecommunication company (ServCo) and the telecommunications network provider company (InfraCo, NetCo, and FiberCo), a strategy in the consolidation of the telecommunications industry. One of leading Telco Company in South East Asia currently conducting a diversification strategy review to encourage growth by leveraging its market leadership in the FTTH (Fiber to the Home) business.

                  This study calculates the business potential and valuation of each potential scenario implemented by Telco Company using DCF and conducts a decision analysis using the AHP method to determine the most appropriate scenario. After calculating the projections and valuation, the authors conduct interviews with experts to weigh each criteria required and targeted by ServCo for analysis using AHP.