Supply Chain Implementation to Optimize Inventory Level by Using SRCM at PT. Semen Indonesia, Tbk.

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Budiarti, Ani and Ramadhan, Gilang (2016) Supply Chain Implementation to Optimize Inventory Level by Using SRCM at PT. Semen Indonesia, Tbk. Project Report. Sekolah Tinggi Manajemen IPMI, Jakarta Selatan. (Submitted)

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This research provides an analysis and evaluation of spare parts inventory management with respect to the “Make” area of the supply chain framework, with reference to the maintenance activities of cement production at PT Semen Indonesia Tbk. (PT SI). The aim of this analysis is to highlight opportunities to reduce excessive maintenance spare stock levels and thus reduce costs and improve company revenue. The goal of this report is to offer suggestion on how to utilise industry best practice to reduce the inventory levels of maintenance stock through the optimisation of maintenance planning an improved inventory management practices, whilst minimising risk of maintenance downtime. This research highlights a number of issues that result in excess spare parts stock levels. The primary reason is cultural, the perception of long lead times and internal mistrust of the ERP system has led to excessive ordering to create a safety stock buffer to cover perceived further problems. This is based on limited past experiences and an internal system delay converting purchase requisitions (PRs) the purchase orders (POs). Investigations also revealed that the performance of PT SI’s supply chain management and process have not previously been evaluation to determine the actual performance. An ABC analysis of the data found approximately 93.6% of spare parts are in the CC category, which means they are considered as dead stock (or obsolete), slow moving and or insurance stock. This CC category of stock makes up 63.08% of the total value of all inventory on hand. This report finds the company can reduce inventory levels of maintenance spare parts by using SRCM systems; preventing the inventory problems in the future (duplications, obsolete parts, long lead-time); and reducing the risk of maintenance down time by having good spare parts inventory management. S-RCM data is well-structured and conveyed via a logic tree. SRCM data can be developed by an experienced maintenance planner or maintenance technician with a good working knowledge of the equipment, and contains information directly related spares required to maintain equipment at the appropriate time required to avoid breakdown. Integrating S-RCM data in inventory control provided opportunities to effectively improving the inventory decisions and thereby reduce costs. S-RCM system has shown significant improvements for a number of company around the world (i.e.: NASA, Holcim RCM in Florence, Lafarge, etc.) and it is highly recommended that PT SI implement xi     this method. If such a method was adopted there is potential to reduce Rp.262,572,546,890,- of Non-Active parts in the future. Inventory management in supply chain management is the most critical aspect when building a successful supply chain management system, secondary to transportation in terms of money value, because of that the inventory team should have been chosen from the most influenced people in the company, who have the authority to make decisions within the supply chain division. Alternatively, it can be recommended that the use of a Third Party Logistics (3PL) company be used to ensure impartial decision making takes place. This option should be considered specific bonuses and KPIs for cost and dead stock reduction by put in place. Collaborate with universities to support research and development into alternative innovative methods should so be investigated.

Item Type: Monograph (Project Report)
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Library > GFP (Group Field Project)
Depositing User: Latifah Latifah
Date Deposited: 20 Jan 2020 03:49
Last Modified: 20 Jan 2020 03:57

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