PROPOSED IMPROVEMENT OF THE VENDOR EVALUATION AND SELECTION PROCESS USING RISK MANAGEMENT STRATEGY ANALYSIS AND ANALYTICAL HIERARCHY PROCESS (AHP) METHOD AT PT. PERTAMINA REFINERY UNIT VI I Komang Arie Ronny Wijaya
SBM ITB
Abstract
Storage tanks are an important facility in the oil and gas industrial process. In operation, storage tanks require periodic inspection, cleaning, and maintenance to maintain proper product quality and facility longevity. Storage tank maintenance is an essential service that extends the service life of storage tanks and is generally performed by external vendors. This makes the vendor evaluation and selection process crucial to ensure project completion according to the target.
The impact of poor vendor selection can result in delays in completing work. Based on data since 2015, 5 out of 8 storage tank maintenance projects running at PT. Pertamina RU VI experienced delays. This hampers operations, causes financial losses, and delays in work operations. Based on the conditions that occur, the company must make improvements in the evaluation process and vendor selection.
The purpose of this study is to identify the criteria for the selection of storage tank maintenance vendors, identify and analyze the risk management of each selected criteria, and use the Analytical Hierarchy Process (AHP) method to provide alternative solutions for improvement in the vendor selection process. The results of this study indicate the criteria and sub-criteria that are used as factors that determine the selection of vendors. As a solution to improve the evaluation process and vendor selection, the company must make improvements and add new evaluation criteria to the current evaluation standards used by the company by adding several criteria related to performance history, current workload, vendor management skills, and financial capability of the vendor.
