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Effectiveness Of Abc Analysis Methods In Material Management At Pt. Pembangkitan Jawa Bali

977 words - 4 pages

BACKGROUND

Generally Materials Management is one of the main components in the management of all types of companies. Materials management plays an important role in supporting the company's performance , which is related to customer satisfaction , cost of production and financial performance. With minimal inventory costs , companies can increase the ability to make investments and expand the capacity of the company.
PT . Pembangkitan Jawa Bali ( PJB ) is one state enterprise which manage power plant in Indonesia. PJB has various types and character of power plants which scattered throughout Java and Bali . CHD is responsible for managing power plants in the region of the island of Java and Bali with high availability . In the management material operations, PT. PJB using the ABC analysis method that has been conducted since 2007.

PROBLEM FORMULATION

In the company's operations, there is a failure of production that lowers the level of performance which stated on company’s key performance index. Performance index stated as the availability power plant to produce electricity. This number of availability is called Equivalent Availability Factor (EAF). Based on data from PT PJB, company has performance of EAF between 87.68 - 92.4 % in 2008-2012. The failure of production is possible due to several reasons , among others ; human error or machine error. To improve and maintain availability of power plant, required proper maintenance program. Maintenance program is supported by several resource, which are; human resource, tool, procedure and the last important is material/spare part.


Based on company’s data from 2008-2012 in PT. PJB, delays of maintenance program which caused by material failure ( out of stock ) reaches 14 % of the total deferred maintenance program, where the rate is quite significant as constraints in company’s operation.

Supposedly, the increase in the amount of inventory will improve service levels and lower the amount of WO delayed due to lack of spare parts . However , data based on the level of increase in the number of incompatible materials inventory service level and an increase in the number WO delayed due to unavailability of spare parts . Based on the data from PT . PJB, can stated that there are discrepancies between maintenance management and material management which using ABC analysis in their operational.

RESEARCH QUESTION

ABC analysis is a method in the business is often called selective control . Business with regard to prioritize control of material importance. In the ABC method in the analysis of PT . PJB, PT PJB only using 3 criteria, namely criticality , availability / lead time and usage value. In this study, the authors wanted to determine the effectiveness of the use of the criteria on the application of the ABC method in the analysis in the management of power plants owned by PJB, and whether there are other criteria that can be added to the existing criteria so that management can be more...

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