THE DESIGN OF EPCm PROJECT PROCUREMENT MANAGEMENT SYSTEM IN LI QUID NATURAL GAS COMPANY (CASE: XYZ COMPANY LIMITED) By RONNY EKAPUTRA 29114560 MAGISTER OF BUSINESS ADMINISTRATION BANDUNG INSTITUTE OF TECHNOLOGY BANDUNG 2017 ii PERANCANGAN SYSTEM MANAJEME N PROCUREMENT PADA PROYEK EPCm DI PERUSAHAAN GAS ALAM CAIR (XYZ COMPANY LIMITED) RONNY EKAPUTRA / NIM: 29114560 Tanggal Lulus Ujian Akhir (22 March 2017) Tanggal Wisuda (21 July 2017) Program Pasca Sarjana, Institut Teknologi Bandung 2017 Pembimbing Tugas Akhir: Ir. Muhammad Hanafi, MBA, IPM ABSTRAK XYZ Company memiliki kontrak jangka panjang untuk Engineeirng, Procurement and Construction management (EPCm) dengan ABC Company dalam melaksanakan proyek-proyek brownfield. Keterlambatan pengiriman equipment telah mengakibatkan jadwal konstruksi terlambat, penambahan biaya projek, dan ketidakpuasan pemilik proyek. Penelitian dilakukan terbatas pada proses pengadaan dan pengiriman peralatan. Tujuannya adalah untuk menemukan root cause proses pengadaan dan pengiriman, untuk memiliki perbaikan proses pengadaan yang lebih efektif dan dapat diandalkan untuk projek-projek berikutnya. Metodologi penelitian didasarkan pada urutan kegiatan dimulai dengan identifikasi masalah, pengumpulan data dari proyek-proyek yang dipilih, pertanyaan penelitian berdasarkan tujuan penelitian, tinjauan pustaka, wawancara pengguna EPCm dipilih dari praktisi proyek, melakukan data analisis dengan metode Current Reality Tree (CRT) dan analisa masalah dari PMBOK ®), identifikasi root cause, kesimpulan, dan rekomendasi. Qualitative interview dengan masing-masing pimpinan proyek yang bersangkutan dilakukan untuk mengidentifikasi gejala. Metode Current Reality Tree digunakan untuk mengidentifikasi root cause. Peneliti mengusulkan tiga unsur dari kerangka kerja dari Project Procurement Management process, yaitu Rencana, Pelaksana dan Kontrol untuk menganalisis masalah dari masing-masing kasus. Akar penyebab telah dipetakan, dari Procurement Management Process dan jumlah tertinggi berada pada Control procurement management process. Mitigasi yang diusulkan untuk pelaksanaan diambil dari tindakan ke depan berdasarkan akar penyebab yang diidentifikasi. Tindakan didistribusikan di seluruh Procurement Management Process Framework yaitu perbaikan alur kerja proses pembelian, Risk Register Management, tingkat pemeriksaan Inspection Test Plan (ITP) dalam meningkatkan tahap produksi, dan Record Management System Implementation. Kata Kunci: Perbaikan Sistem Manajemen pengadaan, fokus pada proses pengontrolan pengadaan. iii THE DESIGN OF EPCm PROJECT PROCUREMENT MANAGEMENT SYSTEM IN LI QUID NATURAL GAS COMPANY (XYZ COMPANY LIMITED) RONNY EKAPUTRA / NIM: 29114560 Date of Final Examination (March 22, 2017) Date of Graduation (July 21, 2017) Master of Business Administration Program-ITB Final Project Counsellor: Ir. Muhammad Hanafi, MBA, IPM ABSTRACT XYZ Company has long term Engineering Procurement and Construction management (EPCm) contract with ABC Company in executing brownfield projects. Delayed equipment deliveries resulted in construction schedule delay, project budget over run, and client’s dissatisfaction. Research is limited to procurement process and equipment delivery. The objective is to find the root cause of procurement process and equipment delivery delays, and proposal towards an effective and reliable procurement process for further implementation. Research methodology is based on sequence of activities starting with problems identification, data collection from selected projects, research questionnaires is based on research objectives, literature reviews, interview with selected EPCm users and project practitioners, data analysis (perform current reality tree and analyze from PMBOK®), root cause identifications, conclusions, and implementations. Qualitative interviews with respective project leads were conducted to identify the symptoms. Current Reality Tree (CRT) method has been used to identify the root cause from the symptoms. Researcher has addressed three elements of Project Procurement Management process framework, i.e. Plan, Conduct and Control to analyze the issues from respective cases. Root cause has been mapped, from this Procurement Management Process and the highest number is located in the Control procurement management process. Proposed mitigations for implementation are taken from the forward actions based on the identified root causes. The actions are distributed across the entire Procurement Management Process framework i.e. Procurement process work flow improvements, Risk Register management, Inspection Test Plan (ITP) inspection level in production stage increase, and diligent Record Management System implementation. Keyword: Procurement Management System improvement, focus on the control procurement process iv PERANCANGAN SYSTEM MANAJEME N PROCUREMENT PADA PROYEK EPCm DI PERUSAHAAN GAS ALAM CAIR (XYZ COMPANY LIMITED) Oleh: RONNY EKAPUTRA NIM : 29114560 Program Studi Manajemen Administrasi Bisnis Sekolah Bisnis dan Manajemen Institut Teknologi Bandung Menyetujui, Pembimbing Akademik: Ir. Muhammad Hanafi, MBA, IPM v ACKNOWLEDGEMENT Sincere and gratitude to Allah SWT by His grace and bless to complete this final project. This is to fulfill a requirement study in Master of Business and Administration Graduate Program, Bandung Institute of Technology. On this opportunity, Author would like to express a special thanks to: 1. Ir. Muhammad Hanafi, MBA, IPM as my final project advisor that had patiently given me direction, idea, and guidance to complete this final project. 2. My wife Laela Nuryantini, and my children Adrian Irshad and Velika Aldeakira for keeping support and patience. 3. Project team: Noryani Osman (P530 XYZ Company Project Manager), Aysha Al Mohannadi (P545 XYZ Company Senior Project Engineer), Ali Anany (P522 XYZ Company Senior Project Engineer), Tin M. Htwe (ABC Company Project Engineer), Santosh Kale (ABC Company Project Engineer) for their sharing on data research and interview protocol. 4. All of my colleague in BLEMBA Doha for all of their spirit. I do understand imperfection of this final project and with all my humble, I accept any critiques and suggestion on this research are highly sought and hope this research will be beneficial for those whose need it. Doha, March 2017 Author Ronny Ekaputra NIM#11294560 vi TABLE OF CONTENT ABSTRAK ........................................................................................................................................... ii  ABSTRACT ....................................................................................................................................... iii  ACKNOWLEDGEMENT ................................................................................................................... v  TABLE OF CONTENT ...................................................................................................................... vi  LIST OF FIGURES ............................................................................................................................ ix  LIST OF TABLES ............................................................................................................................... x  LIST OF APPENDIES ....................................................................................................................... xi  1. INTRODUCTION ...................................................................................................................... 1  Background ..............................................................................................................