Tag Archive for: Contractor Selection

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.