Articles

Barriers for Business to Engage in Carbon Trading Through the Indonesian Carbon Exchange: An Analytical Hierarchy Process Approach

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This study investigates the barriers faced by businesses in participating in carbon trading through the Indonesia Carbon Exchange (IDXCarbon). Although Indonesia has committed to reduce greenhouse gas emissions by 31.89% with national efforts and 43.20% with international assistance, participation in IDXCarbon is still limited. Using the Analytical Hierarchy Process (AHP) method, this study identifies and ranks barriers based on expert evaluation in four main criteria:  Impact on Risk Management and Uncertainty; Impact on Business Operation and Strategy; Impact on Financial and Profitability, and Impact on Regulatory Compliance and Stakeholder Engagement. The main barriers identified were Concern Over Loss of Sustained Revenue; Lack of Company Understanding and Capability; Additional Explicit Costs; Bureaucratic Complexity; Low Level of Transparency; and Limited Trading Volume. The results of this study are expected to guide policymakers and business leaders in improving their effectiveness and participation in carbon trading, thereby contributing to Indonesia’s ambitious emissions reduction targets.

Improving Performance of Customer Relationship Management to Leverage Customer Loyalty (Case Study: MILKY CRM Loyalty Program)

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Customer Relationship Management (CRM) plays a crucial role for businesses as technology advances and consumer demands continue to rise. However, CRM implementation faces challenges from both external and internal factors within an organization. Ineffective CRM implementation can lead to customer dissatisfaction, decreased loyalty, reduced profitability, and missed business opportunities. This research aims to improve the MILKY CRM loyalty program by identifying the key root causes and proposing alternative solutions, ultimately determining the best alternative to enhance the program. The methodology includes in-depth interviews and analysis using the Kepner-Tregoe framework, which involves problem analysis, decision analysis, and potential problem analysis. Supported by external and internal analyses such as Porter’s Five Forces, Customer Journey Mapping, and an Integrated CRM Scorecard, the results are then utilized for a SWOT analysis.

The problem analysis identified 21 attributes as the root causes affecting MILKY CRM loyalty program performance. These attributes include Consumer Behaviour Change, Aggressiveness of Competitors, CRM Agency Capability, Healthcare Apps Strategic Partnership, Potential New Segments generated by New Entrants, CRM Differentiation, Strong Brand Reputation, Content Management, Ability Services Program, Customer Engagement, Customer Experience Improvement, Win Back Lapsed Customers, Incomplete metrics tracking on CRM scorecard, Financial Budget Constraints, Personalization Services & Rewards, Digital Acquisition Transition, Segmentation & Tiering Review, Balancing Strategy on Customer Acquisition & Retention, IT System Capabilities, and Human Capability on CRM. In the decision analysis section, alternative solutions were generated through TOWS analysis, and the best alternative was determined using the Analytical Hierarchy Process (AHP) tool. The top chosen strategy, Strategy #2: Optimizing CRM & Organizational Strategies for Enhanced Customer Engagement & Operational Efficiency (W/O Strategies), is recommended for future improvement. Focus areas include communication, resources, technology, and KPI metrics to mitigate potential problems. Overall, this research provides valuable insights and recommendations for enhancing the performance of the MILKY CRM loyalty program, ensuring its effectiveness in meeting customer needs and driving business success.

Proposed Business Strategic Improvement to Accelerate Waste Management Business Unit at Building Materials Company (Case Study at Cement Inc)

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The rising environmental concerns and regulatory measures in Indonesia have created new opportunities for the expansion of waste management services in the cement sector, specifically by utilizing thermal technology. The Waste Management Unit (WMU) of Cement Company presents substantial strategic opportunities for expansion and development. After undergoing a merger and acquisition, Cement Inc experienced a transformation and has now become a state-owned firm. This change offers WMU Cement Inc further opportunities for growth and expansion. The objective of this research is to identify the most effective strategy for the Waste Management Business Unit within the Cement Company using the Analytical Hierarchy Process. The study explores three fundamental research question: (1) What is the current situation for WMU Cement Inc in terms of market, money, customer, and organization? (2) What are the obstacles inside the organization and in the external environment that hinder the acceleration of waste management services in Indonesia, resulting in limited value creation for the company? (3) What are the suggested recommendations and strategic choices for the company to enhance its value absorption?

The study used the SWOT (Strengths, Weaknesses, Opportunities, and Threats) and AHP (Analytic Hierarchy Process) framework to perform a comprehensive evaluation and evaluate three strategic options for the waste management division: retaining it within the cement firm, expanding it to the cement group as a whole, or establishing it as an independent entity. The results of this study indicate that the most favorable choice (40.6%) is to establish WMU as a separate entity, which offers greater advantages compared to fully integrating with the parent company (30.9%) and keeping the current business operations (28.4%). By creating WMU as an independent organization, it may effectively avoid market and pricing cannibalization amongst its subsidiaries and optimize operations. WMU Cement Inc possesses the capacity to assume a leading role in waste management services by offering waste solutions to all SIG subsidiary plants and other cement makers, including ITP. The benefits of this method include autonomous operations, targeted management, rapid decision-making, and varied income streams achieved via the cultivation of specialized skills and expertise in waste management. This decision presents a chance to attract targeted investments and collaborations that promote innovation and expansion in waste management.

Optimizing Electrical System Performance at PTKP Coal Mining Company: Navigating Operational Challenges, Capitalizing on Load Growth, and Preparing for Future Energy Needs

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PTKP Coal Mining Company, a prominent player in the Indonesian coal mining industry, faces operational challenges in optimizing its power generation capacity following the termination of a contract with the national electricity company in 2020. This study employs a mixed-methods approach, combining qualitative insights from interviews with key stakeholders and quantitative data analysis using the Analytic Hierarchy Process (AHP), to provide a comprehensive and structured framework for project prioritization and resource allocation. The qualitative results reveal a multifaceted approach to addressing the company’s operational challenges, focusing on improving asset utilization, reassessing operational strategies, optimizing operational flexibility, and adapting to load changes. The AHP analysis offers a robust decision-making framework, considering multiple criteria such as economic feasibility, strategic alignment, regulatory compliance, technical feasibility, and environmental impact. The prioritization of projects showcases the strategic significance of each initiative, with Project E emerging as the top priority, followed by Project G, and Projects B, H, and M forming the middle tier. This structured approach enables PTKP Coal Mining Company to navigate complex challenges, remain agile in changing market conditions, and effectively leverage its assets and capabilities to achieve its objectives and drive long-term success. The study highlights the strengths of the AHP methodology in guiding strategic planning and resource distribution while shaping decision-making processes across the organization. However, the research also acknowledges limitations, such as the reliance on a small sample size, the focus on a single company, and the emphasis on the prioritization phase. Future research directions are proposed to address these limitations and further enhance the understanding and effectiveness of structured decision-making approaches in the energy sector and beyond, ultimately contributing to the alignment of corporate strategies with broader societal goals and sustainable development.

Application of the Analytical Hierarchy Process (AHP) for Innovative Technological Projects Evaluation and Prioritization in an FMCG Company

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The FMCG industry is known for its dynamic and competitive nature. To thrive in this business sector, companies must possess the ability to swiftly adapt to the market demand changes, continuously enhance operational efficiency and drive innovation. Those abilities are crucial for maintaining competitiveness and ensuring long term viability of the company. Over the past few decades, technology along with its advancement has emerged as a factor that disrupts the ecosystem of various industries by reshaping the way businesses operate and interact with the customers. In Indonesia, many organizations including FMCG companies have continuously embraced and adopted emerging and innovative technologies within their business operations. Although it offers various benefits for the companies, the execution process has usually encountered various challenges which causing the implementation projects to experiencing delays, especially during the decision-making process. This was also the case in one of the largest FMCG companies in Indonesia due to varying interpretations of project importance, as well as the absence of clear prioritization criteria and an unorganized decision-making process. In order to address the issues, the organization plans to develop a decision-making framework that harmonizes diverse stakeholder perspectives related to project importance based on a number of key criteria while also analyze the benefit and impact provided by the implemented technologies through the application of the Multi Criteria Decision Making (MCDM) approach using the Analytical Hierarchy Process (AHP) framework. There are three technology innovation projects to be analyzed and assessed in this research: AGV Implementation, and Digital Warehouse Management System, and Universal QR for Traceability. In order to evaluate the projects, eighteen criterion which are divided into eighteen sub criteria that has been established through Secondary Data Collection and Focus Group Discussion (FGD) process. The data were processed by leveraging the systematic decision-making structure provided by the AHP framework. The research yields two primary outcomes: a structured decision-making framework and a project prioritization scheme intended for application at the organization. The findings of the research highlight the critical role of structured decision-making in navigating the complexities of evaluating and prioritizing innovative technological projects, while also proposing a scalable model that can be repeatedly utilized by the company in the project evaluation and prioritization contexts.

Enhancing Community Participation in Corporate Social Responsibility Activities at PT. Prima Bara Nusantara through Improved Decision-Making Process

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Corporate Social Responsibility (CSR) is crucial for companies that have a substantial ecological footprint, such as coal mining in Indonesia. PT. PBN strives to achieve a harmonious combination of responsible behaviors and economic viability. However, attaining this equilibrium necessitates strong community engagement to alleviate negative effects and provide beneficial contributions at the local level. This study focuses on the underexplored issue of poor community participation in CSR initiatives within Indonesia’s coal mining sector. Although PT. PBN has made substantial investments in environmental and community activities, recent evaluations indicate a substantial disparity between stakeholder expectations and the level of actual participation in activities. Gaining insight into the factors contributing to this disparity is vital for the effectiveness of CSR endeavors, as the support of stakeholders and active involvement of the community are crucial for ensuring social sustainability and enduring stability. The study utilizes analyzed data from interviews conducted with both internal and external respondents. It uses problem tree analysis in order to uncover the root causes of low community participation. Focus group discussions are used to delve deeper into the objectives of Value-focused Thinking (VFT) and help determine which alternative solutions should be chosen. The integration of VFT with Analytical Hierarchy Process (AHP) aids decision-making by recognizing the criteria and sub-criteria used to evaluate solutions based on their values. The findings emphasize identifying skill gaps and providing formal acknowledgment to improve the sense of responsibility and involvement of the community in CSR initiatives. This is in line with PT. PBN’s commitment to its stakeholders and the sustainable development of the community in the long run. In the end, decision-makers give the utmost significance to the strategy of licensing and training, considering its long-term impact, effectiveness, resource availability, and ease of control.

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.

Applying an Analytical Hierarchy Process for Decision Making Business Strategy in CV. Optik President

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Vision is one of the vital organs of the human body which has a very fundamental role for life. With good eyesight, this can help people improve their quality of life. The eyeglass market is anticipated to develop over the next several years as a result of a variety of factors, including expanding populations, a demographic shift toward older age groups, and changing lifestyles characterized by a higher reliance on digital gadgets. Of course, the COVID-19 pandemic is also one of the factors that increases eye disease because most people use gadgets in their lives, causing symptoms of digital eye strain. In this way, this is a supporting factor in the development of the optical market. The market is expanding the fastest in the Asia Pacific region, with a growth rate of 13.5%. Offline optical retail stores provide significant promise and value. These physical businesses provide customers with an immersive and tangible shopping experience that is unmatched by internet shopping. To guarantee that customers receive accurate prescriptions and distinctive eyewear options, optometrists and store staff offer customized services like frame fittings, professional eye exams, and expert lens consultations. In actual storefronts, customers may physically try on frames to assess fit, comfort, and style. Trained staff members are available to provide timely assistance. Furthermore, a wide range of eyewear options, including designer brands and niche goods, are usually available in these stores, giving customers the opportunity to peruse and select from a diverse inventory. Furthermore, optical retail stores foster confidence and trust, particularly among those who appreciate in-person interactions or have certain vision needs that necessitate expert guidance. By looking at this market development, the company wants to expand, targeting West Karawang, East Karawang and Cikarang as targets for opening their branches. using the Analytical Hierarchy Process (AHP) method will be able to improve the quality of decision making that will be produced by the company starting from developing criteria and sub-criteria which can ultimately determine the best alternative. The results of this research provide recommendations for new criteria and sub-criteria for the company and also determine which location of the three alternatives the company will provide.

Total Productive Maintenance Strategy to Increase Overall Equipment Effectiveness of Integrated Filling Machine N2 Vaccine Production Pt. Xyz

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 In the midst of production process to fulfilling the needs of n2 vaccine, several problems occur and cause the production process to be hampered. The high frequency of breakdowns that occurred became problems that results in longer production process and some products become rejected and cannot be absorbed as a whole to meet the production needs. Preventive maintenance that have been conducted so far are considered not optimal because there are more breakdown maintenance than preventive maintenance. History of the breakdown shows that 35% of the total number of production batches experiences failure of the machine in the production process experiences failure of the production process. The results of the study using quantitative analysis show that the OEE of the integrated Filling Machine is only 55%, far below the ideal OEE standard of 95%. A qualitative analysis also conducted to further explores the cause of the bottlenecks in the production process which involves the production and maintenance unit.

Study and analyses are conducted to find the root cause of high disturbances that results in losses and obstacle to production process. By using current reality tree, found that the main cause of the bottleneck in the production process on the high number of the breakdown in the Integrated Filling Machine is lack in maintenance activity which the preventive maintenance that conducted doesn’t have clear procedure then coupled with the maintenance team’s habit that prefer to work in breakdown maintenance than preventive maintenance.

To solve the problem three alternative solutions are prepared to be choose. The alternative solutions are Autonomous Maintenance, Planned Maintenance, and Principal’s service agreement. All of the alternative solution is selected with consideration of production needs with their respected advantages and disadvantages. Of the three alternative solutions provided, Analytical Hierarchy process will be conducted to determine which alternative is more likely to be implemented. Planned maintenance was chosen as the best solution that meet the needs of each stakeholder with the most mitigable risks and has advantages that can solve the problems that occur.

Improving a Two-Way Interaction Customer Service Platform in Company X using AHP

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The Covid-19 Pandemic has accelerated mass digitalization in most human activities, including in the construction industry. As a response to the social restriction policy during the pandemic, customers and companies have preferred doing business online. Company X has already launched an online customer service platform that could be maximally used during the social restriction policy. This platform uses SST (Self-Service Technology) to let customers perform their service independently. However, the platform was ineffectively utilized due to a lack of sense of two-way interaction. The stakeholders suggested adding a new feature based on the customer’s aspirations and the company’s considerations. During the development, understanding the relationship between the user and the system must be learned through HCI (Human-Computer Interaction). This research is primarily focused on the factors that affect layout design. The method to obtain a new feature in this customer service platform is using Analytical Hierarchy Process (AHP) to minimize inconsistencies while considering the new features.