EFFECTIVENESS OF ABC ANALYSIS METHODS IN MATERIAL MANAGEMENT AT PT. PEMBANGKITAN JAWA BALI

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Recommended: The importance of material management

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...

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...ns on the ground with the functions that a prerequisite implementation methods / concepts , both in terms of material and technical management of organizational form and character of the company. For example , among others, the condition of completeness of the data material , material classification data, patterns of material requirements planning, inventory management , procurement patterns with existing methods used ABC analysis.

By using the theories and concept/method ABC analysis of existing as well as compliance with the form of the company, determined that the concept should be applied in the company. Then, determine what solutions can be done to resolve the problem. Next the solution set to best suit the expected performance criteria . The final step is to make a statement how to fix and determine the steps that must be done.

SCHEDULE AND BUDGET RESEARCH

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