IMPROVEMENT OF SERGAP CONSUMABLE MATERIALS INVENTORY MANAGEMENT IN COMMUNITY WAREHOUSE PT BADAK NGL FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By Melly Chandra Frayekti Student ID: 29121100 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG July 2023 i ABSTRACT IMPROVEMENT OF SERGAP CONSUMABLE MATERIALS INVENTORY MANAGEMENT IN COMMUNITY WAREHOUSE PT BADAK NGL By Melly Chandra Frayekti Student ID: 29121100 (Master of Business Administration Program) Housing Facility is one of supporting facilities in PT Badak NGL sites. This facility is maintained under General Support function. Maintenance activities consist of preventive & predictive maintenance, reactive maintenance and responsive maintenance. Which responsive maintenance is conducted by SERGAP, one of work unit under General Support. Material used by SERGAP to conduct minim repair in housing facility is provided by Community Warehouse. Maintenance by SERGAP often delayed due to out-of-stock material. Another impact of material stockout are the increasing cost of work order scheme and decreasing customer satisfaction. Through fishbone diagram analysis defined that there are three root causes of the problem, there are lack of knowledge, no standard operating procedures as the company policy and no controlling process of inventory control to maintain the record accuracy of material. Fixed-time period model is chosen as the most appropriate method based on several considerations such as period of inventory check, variety items, procurement technical methods, and the number of orders vary in each purchase. Service level expected of not stocking out material is 99% which is the value of service factor (z) equal 2,33. ABC classification method is conducted to 127 items of consumable material which category consist of plumbing, AC, electrical, and civil. Based on the ABC classification there are 26 items in class A (80% from total dollar value), 30 items in class B (15% from total dollar value) and 71 items in class C (5% from total dollar value). From 127 items consumable material of SERGAP compare with its average inventory level, so it can be concluded that 24 items are overstock, 58 items are understock, and 45 items are in sufficient stock. This study resulted that total potential costs saving through implementing the inventory management are $36.019,17. So, it is very important to keep the on-hand quantity in sufficient level stock. Keywords: Inventory Management, Record Accuracy Fixed-time Period model. ii ABSTRAK PENINGKATAN MANAJEMEN PERSEDIAAN MATERIAL CONSUMABLE UNTUK SERGAP DI COMMUNITY WAREHOUSE PT BADAK NGL Oleh Melly Chandra Frayekti 29121100 (Program Studi Magister Administrasi Bisnis) Fasilitas perumahan merupakan salah satu fasilitas pendukung yang ada di kilang PT Badak NGL. Perawatan fasilitas ini dilakukan oleh fungsi General Support. Aktifitas perawatan terdiri dari preventive & predictive maintenance dan reactive maintenance. Yang mana perbaikan minor dari reactive maintenance dilakukan oleh SERGAP yang merupakan salah satu unit kerja di bawah fungsi General Support. Material yang digunakan oleh SERGAP dalam melakukan perbaikan minor di fasilitas perumahan disediakan oleh Community Warehouse. Perbaikan oleh SERGAP sering mengalami keterlambatan dikarenakan kekosongan stok material. Dampak lain yang muncul dari kekosongan stok material adalah meningkatnya biaya dari skema work order dan menurunnya kepuasan pelanggan. Melalui analisis fishbone diagram didefinisikan bahwa terdapat tiga penyebab masalah utama, yaitu kurangnya pengetahuan, tidak adanya prosedur operasi standar sebagai kebijakan perusahaan, dan tidak ada proses pengendaliaan persediaan untuk menjaga keakuratan catatan material. Fixed-time period model dipilih sebagai metode yang paling sesuai berdasarkan beberapa pertimbangan seperti periode pengecekan persediaan, varietas barang, metode teknis pengadaan dan jumlah pesanan yang berbeda-beda di setiap pembeliannya. Tingkat pelayanan yang diharapkan dari tidak kehabisan persediaan material adalah 99% yang mana nilai service factor (z) sebesar 2.33. Metode klasifikasi ABC dilakukan terhadap 127 item material consumable yang terdiri dari beberapa kategori antara lain plumbing, AC, kelistrikan, sipil. Berdasarkan klasifikasi ABC ada 26 item di kelas A (80% dari total nilai dolar), 30 items di kelas B (15% dari total nilai dolar) dan 71 item di kelas C (5% dari total nilai dolar). Dari 127 item material consumable dari SERGAP dibandingkan dengan level persediaan rata- ratanya, sehingga dapat disimpulkan bahwa 24 item kelebihan persediaan, 58 item kekurangan persediaan dan 45 item dalam tingkat persediaan yang cukup. Potensi penghematan secara total dari mengimplementasikan manajemen persediaan sebesar $36.019,17. Sehingga sangat penting untuk menjaga agar kuantitas yang tersedia dalam jumlah yang cukup. Keywords: Manajemen Persediaan, Akurasi Pencatatan, Model Fixed-Time Period. v FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institut of Technology, and is open for public, provided that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceeded upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Frayekti, M.C. (2023): Improvement of SERGAP Consumable Materials Inventory Management in Community Warehouse PT Badak NGL, Masters’ Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. vi This final project is dedicated to my beloved little family, my husband, my daughter and my son who always supports me. vii ACKNOWLEDGEMENTS All praise to Allah SWT, for all of his blessing to complete my study in Master Business Administration, School of Business and Management, Institut Technologi Bandung I would like to express my deepest gratitude to Bapak Nur Budi Mulyono S.T, M.T. as my thesis supervisor for his time, guidance, patience and feedback during the process of writing and finishing this final project. Thank you for generously provided knowledge and expertise. In addition, thanks to all management and staff of PT Badak NGL, especially General Support for allowing author to do research inside the company and providing access to the necessary data and information for analysis I am also grateful to all my lectures and employees of School of Business and Management, my entire friends BLEMBA 65 IA ITB KALTIM, Institut Teknologi Bandung for their valuable time and knowledge. I could not have undertaken the MBA journey without the biggest support and pray from my husband, Abdul Wahab, who always keeps my spirit and motivation high and also wonderful kids, Raiya and Pijar, for always cheering me up. To my beloved parents, brother and sisters for their endless support. viii TABLE OF CONTENTS ABSTRACT ........................................................................................................... i ABSTRAK .......................................................................................................... ii VALIDATION PAGE ........................................................................................... iii DECLARATION OF NON-PLAGIARISM .......................................................... iv FINAL PROJECT GUIDANCE ............................................................................. v ACKNOWLEDGEMENTS ..................................................................................