Articles

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.

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.