Investigasi kesiapan implementasi concurrent engineering pada devisi general engineering PT. PAL Indonesia (Persero) - ITS Repository

  

By:

ARGON FAISAL MARCONI

2511100108

SUPERVISOR:

  

IMPLEMENTATION READINESS IN GENERAL

ENGINEERING DIVISION OF PT. PAL INDONESIA

(PERSERO)

PUTU DANA KARNINGSIH

  OUTLINE INTRODUCTION

  Background

Problem Formulation

Research Objective

  INTRODUCTION Research Benefit Research Scope

  BACKGROUND 15%

  Heavy and Civil Total world engineering

  GDP in 2020

  13%

  Total world General

  GDP in 2013 Construction

  Construction Industry Construction Project

  (Schilling,2013) Market %GDP

  7.8% GDP 2008 BACKGROUND

  Late Schedule

  Alwi et. Al (2002)

  Damage Material Waiting time for maintenance

  External conditions (26.79%)

  Hari et al (2009)

  Change of drawing document (21.43%) Condition of the field (19.64%)

  Sukirno Change of technical BACKGROUND

  NAVAL SHIP BUILDING MERCHANT OR COMMERCE SHIP BUILDING HARKAN SERVICE PRODUCT GENERAL ENGINEERING BACKGROUND 57% 30%

  New sector focus GENERAL ENGINEERING

  Edi Widiarto Powerplant

  Late material (KMPG, 2013) delivery

  (Agus, 2014)

  Inadequate expert DO “RECOVER”

  Increase By:

  High Frequency of Design Change Production increase speed, Cost 10%-20%

  Increase man power Increase BACKGROUND

  Evboumwan and Anumba (1998) defined Concurrent Engineering (CE) as an optimise the design of the

  “...attempt to project and its construction process to achieve reduced lead times, and improved quality and cost by the integration of design, fabrication, construction and erection activities and by

  GENERAL ENGINEERING

  maximising concurrency collaboration

  and in working practices”. BACKGROUND _{2. Assessment}

  (Pawar, et al., 1996)

  Readiness Assessment Readiness Level Problem Formulation how to minimize engineering design change that often occurred in General Engineering Division by implementing CE , and to measure the readiness level of CE implementation in General Engineering Division

  PT. PAL Indonesia (Persero) with BEACON Model Problem Formulation

  To know readiness level of CE implementation in General Engineering division PT. PAL Indonesia (Persero)

  Research Research Objective

  To provide recommendation for lowest factor

  Objective

  of readiness level to implement CE in General Engineering Division PT. PAL Indonesia (Persero). Research Research benefit

  Benefit

  know the readiness level of CE implementation. get improvement recommendation Research Scope LIMITATION

 This research is done until

improvement suggestion and

not until improvement

implementation.

  

This research is conducted in

General Engineering Division

PT PAL Indonesia (Persero)

  ASSUMPTION 

  There are no company policy changing that influence significantly to the research.

   The improvement suggestion can be done by the company

   Financial problem is not influence the project implementation

  Research scope

LITERATURE REVIEW

  Concurrent Engineering Concurrent Engineering in Construction Literature Review

  Readiness Assessment of Concurrent Engineering Summary of Previous Research

CONCURRENT ENGINEERING

  Winner (1998) defined CE as

  integrated , concurrent design of products and their related

  ‘ processes, including manufacture and support’ with the ultimate goal of customer satisfaction through the reduction of cost and

  time-to-market , and the improvement of product quality’

  (Soruce: Moges, 2007) CE IN CONSTRUCTION BENEFIT REASON TO ADOPT

READINESS ASSESSMENT BENEFIT

BEACON MODEL

   More effective and better in implementing CE in construction industry.

   Make the industry can evaluate and benchmark its project operation process.

  )

   Develop appropriate tools to implement CE in the industry

  , 2000 ba

   Make the industry can identify which area that need

  um

  an improvement or changes

  An dan

   Make the industry realized the needs of implement

SUMMARY OF PREVIOUS

  RESEARCH

  Khalfan et al. (2001) Khalfan et al. (2000)

  Cheria, S (2014) Marconi, F.A (2015)

  An investigation of the readiness of the Concurrent engineering readiness assessment of sub-contractors within the

  UK construction industry Preparing concurrent engineering implementation

  Investigation Of Concurrent Engineering Implementation

  Readiness In General Engineering Division of PT. Pal Indonesia (Persero) METHODOLOGY

METHODOLOGY

  Research Problem

  Literature CE Team

  Data Collection Objective

  Formulation Review

  Forming Determination

  Start A

  Field Study Problem Identification and Formulation Phase METHODOLOGY

  Research Problem

  Literature CE Team

  Data Collection Objective

  Formulation Review

  Development Determination

  Start A

  Field Study Problem Identification and Formulation Phase METHODOLOGY

  Field Study In Depth Interview

  Focus Group Discussion METHODOLOGY

  Field Study In Depth Interview

  Focus Group Discussion Data Collection

  CE Team Engineering design Procurement QC/QA METHODOLOGY

  Measuring BEACON

  Readiness level Conclusion and

  Questionnaire Gap Analysis Improvement of CE Suggestion

  Filling Implementation

  A END

  Assessment of CE Readiness Phase METHODOLOGY

  Score of questionnaire measure by summarize all of score from each question Measuring divided by number of question and times 4. Readiness level of CE

  Implementation Fill by Expert

  BEACON Questionnaire

  Filling NEVER SELDOM

1 SOMETIME

  OFTEN

  2

  3 METHODOLOGY

  Measuring BEACON

  Readiness level Conclusion and

  Questionnaire Gap Analysis Improvement of CE Suggestion

  Filling Implementation

  A END

  Assessment of CE Readiness Phase

CE READINESS ASSESSMENT

  Existing new project development CE implementation planning CE READINESS ASSESSMENT

  CE readiness assessment Improvement Existing New Project

_{Marketting Diivision PMO PPC Dept ENG Dept ADA Div MANPRO MES & RA Dept FV Dept QA GE Dept. CUST/AI}

Development _{START C IPP Accept from Head of division Design Schedule Contract receive material spec, list Paint estimation Annext to oder of material/eq} Document: _{Production Production schedule schedule Shop drw Marketing Bidding by division Project progress and constraint report Creating scope of workload Creating work} Inspection spec _{Create: Shop drw, Cutting equipment & picture Material/equip procurement process IPP Receive paint area data weight data Shop drw paint area data cutting plan weight data Material & verification Equipment progress Project C N Success? planning Organic data, weight data plan, pPaint area mat/eq Annex to Project Create: list of order Service process monitoring & Create PCCL Create PCCL Equipment equipment equipment Material/ Material/ Material/ Design schedule} Production & _{Y OK report Contract accept B Y Y using suggestion Sub contractor} enough? _{N paint estimation material spec coordination Project progress report ready? ready? Mat & Mat & Pers ` Pers N NCR N schedule and production Creating design C Production Production process process} A B _{Inspection Inspection invitation invitation List material and equioment Invite QA/Cust/ n by QA? inspectio} Need _{Y Inspection A Create Mo1 & M04 N by cust/ witness Need} AL _OK

CE Implementation Plan

  New Project of GE Division EPCI of Madura BD Field

  Jacket 100 Meters x 75 Meters Topside 75 meters x 25 meters x 19 meters CE Implementation Plan

• Engineering department In charged in coordinating of all of members during design phase of project implementation.
• Procurement department In charged of purchasing materials that is needed to fabricate the component after design phase.
• Fabrication & installation department In charged in fabricating component after design and material arrived.
• PPC department In charged in planning all activities from beginning of the project until the end of the project.
• QA/QC department

  In charged of product or component’s quality. The quality of components that have been CE Team fabricated has to meet customer requirement and quality regulation.

• Finance & Tax department In charged of managing budget in project development process.
• Marketing department

  In charged in getting order from client. Marketing member is also in charged to inform clear information about requirement of customer to all member of team CE Readiness Assessment Questionnaire Verification

EXPERT JUDGEMENT

  Assessment Questionnaire Verification

  Mr. Agus Budiyanto As

  General Manager Q Assessment Desired Condition Assessment

  Existing Condition Assessment Existing Condition and Existing Condition Q Assessment

  Filed by Mr. Bambang Setyawan As Deputy project manager Q Existing Condition Assessment

  AD HOC _REPEATABLE CHARACTERIZED _MANAGED OPTIMIZING ^{Management System Process Focus Organizational Framework Strategy Deployment Agility Team in Organization Discipline} _{Team Leadership and Management} ^{Quality Assurance Client Focus Communication Support Coordination Support}

^{Information Sharing}

^{Integration Support Task Support} TECHNOLOGY

  ELEMENT PROCESS

  ELEMENT Plot the result in Spider Diagram Desired Condition Q Assessment

  Filed by MrAgus Budiyanto As General manager of Division Q Desired Condition Assessment

  Plot the result in Spider Diagram _{AD HOC} REPEATABLE _{CHARACTERIZED} MANAGED _OPTIMIZING ^{Management System Process Focus Organizational Framework Strategy Deployment Agility Team in Organization Discipline} _{Team Leadership} ^{Quality Assurance} and Management ^{Client Focus Communication Support Coordination Support Information Sharing Integration Support Task Support}

  

TECHNOLOGY

ELEMENT

  PROCESS ELEMENT Q Existing Condition Analysis

  AD HOC _REPEATABLE CHARACTERIZED _MANAGED OPTIMIZING ^{Management System Process Focus Organizational Framework Strategy Deployment Agility Team in Organization Discipline} _{Team Leadership and Management}

^{Quality Assurance}

^{Client Focus Communication Support Coordination Support Information Sharing Integration Support Task Support} TECHNOLOGY

  ELEMENT PROCESS

  ELEMENT Existing Condition Q Analysis

TEAM IN ORGANIZATION

  Individual reward Team reward

EXISTING CONDITION

  IT System Q

Gap Analysis

  AD HOC _REPEATABLE CHARACTERIZED _MANAGED ^{Management System Process Focus Organizational Framework Strategy Deployment Agility Team in Organization} _{Discipline Quality Assurance} ^{Client Focus Communication Support Coordination Support Information Sharing Integration Support Task Support} TECHNOLOGY ELEMENT

  PROCESS ELEMENT AD HOC _REPEATABLE CHARACTERIZED _MANAGED ^{Management System Process Focus Organizational Framework Strategy Deployment Agility Team in Organization} _{Discipline Quality Assurance} ^{Client Focus Communication Support Coordination Support Information Sharing Integration Support Task Support}

  TECHNOLOGY ELEMENT PROCESS ELEMENT

  AD HOC _REPEATABLE CHARACTERIZED _MANAGED ^{Management System Process Focus Organizational Framework Strategy Deployment Agility Team in Organization} _{Discipline Quality Assurance} ^{Client Focus Communication Support Coordination Support Information Sharing Integration Support Task Support} TECHNOLOGY ELEMENT

  PROCESS ELEMENT

  IMPROVEMENT

  IMPROVEMENT

RECOMMENDATION RECOMMENDATION

FOR FOR

IT SYSTEM REWARD SYSTEM

  IMPROVEMENT Potential alternatives Extra Benefit Implementa Discussion

  

Benefit tion analysis plan Q

IMPROVEMENT ALTERNATIVES

  Stajkovic & Luthans, (1997)

  & Reward System Team Member of the month Personal Recognition

• 1 thank you card = a voucher for car wash
• 5 thank you card = a voucher for dinner in a restaurant

an integrated cross-functional software

IMPROVEMENT ALTERNATIVES

  that re-engineering the manufacturing process, distribution, finance, human resource and other business process in a company to increase the efficiency, agility, and profitability (O’Brien, 2005)

  MORSE SAP R/3 marine construction company content of messages exchanged between an LDAP client and an LDAP server. _LDAP

  IT System _{4 3 (Read/Write) Master LDAP Client 2}

  5 Q

IMPLEMENTATION PLAN

  (outstanding employee/group in term of performance) WHO

  WHAT (cash prizes, merchandize, etc) (the nomination procedures, committee, point system, etc)

  HOW

  Reward System

  (Nelson, 1994) an effort to increase motivation of team member.

  So, it can increase the readiness level of WHY

  Concurrent Engineering Implementation WHO Employee in each team

  The alternatives: thank you card,

  team member of the month,

  WHAT

  manager congratulates directly Q

IMPLEMENTATION PLAN

• The top management of PT PAL Indonesia (Persero) is commit to implement the improvement alternatives
• PT PAL Indonesia (Persero) has good financial ability to implement the improvement alternatives

  Assumption

• Understand why company want to implementer so they support

  IT System the improvement alternatives implementation

• All employee support the implementation process

Q

IMPLEMENTATION PLAN

  Project Busine Final Simula Validat prepar ss blue prepar tion ion ation print ation

  IT System project preparation, 2 weeks;

  Average Time: business blue print, 6 weeks;

  12 Months simulation, 10 weeks; validation, 21 weeks; (Fleisch et al., 2004) and final preparation, 13 weeks Q Implementation plan

  Total investment in year 1 = 10 x $220 = $2,200 Total investment in year 2 = 10 x $85 = $850

  

Invest yearly

  Total investment in year 3 = 10 x $85 = $850 And etc

  IT System

  Q BENEFIT ANALYSIS

• Motivation of all member of team will increase Expected benefits
• Build a better work environment • Savings $200,000 in a year. Savings = Expected cost reduction x total cost of production x number of project

  Reward System

  = 5% x $2,000,000 x 2 = $200,000

• In a year there are two milestone
• There are two teams for two projects in a year
• Team of the month cost Rp 200.000 once or equal to $15.9 or $127.22 in a year
• Thank you card reward cost thank you card reward is assumed

  Rp 1.000.000 once or equal to $79.51 or $636.08 in a year Assumption

• manager congratulates directly reward is assumed Rp 50.000 once or equal to $3.98 or $31.81 in a year

Q BENEFIT ANALYSIS

  BCR = savings/total cost = $200,000/ $127.22 = 1.572,125

  Team Member of the month Benefit

  BCR = savings/total cost = $200,000/ $636.08

  Cost

  = 314.43

  Ratio Thank You Card

  BCR = savings/total cost = $200,000/ $31.81 = 6.288,5 Q BENEFIT ANALYSIS

• Administrative costs of fax and telephone is going down Expected benefits
• Order processing will be simpler
• Support more integration between departments • Savings $200,000 in a year.

  Savings = Expected cost reduction x total cost of production x number of project SAP R/3

  = 5% x $2,000,000 x 2 = $200,000

• There are two teams for two projects in a year
• Planning horizon is 10 years Assumption

Q BENEFIT ANALYSIS $200,000

  savings

  1

  2

  9

  10 Cash Flow

  SAP R/3 Initial investment

  $1,790,000

• Calculate the outflow Net Present Value (NPV) The outflow NPV is $1,790,000. It because in the next years there are no outflow.
• Calculate the inflow NPV The interest rate (i) that used to calculate the NPV is 3%. The calculation of inflow NPV is explained below.

  1

  10

• …..+ FV/ (1+i) NPV = FV/ (1+i)

  1

  10

  = $200,000/ (1+0.03) + .........+ $200,000/ (1+0.03) = $618,307.90

• Calculate the ratio by dividing inflow NPV with outflow NPV

  Q BENEFIT ANALYSIS

• Support good integration between department Expected benefits
• Data is more safe and secure
• Administrative costs of fax and telephone is going down • Savings $200,000 in a year.

  Savings = Expected cost reduction x total cost of production x number of project = 5% x $2,000,000 x 2 = $200,000

• There are two teams for two projects in a year
• Planning horizon is 10 years Assumption

  $200,000 Q BENEFIT ANALYSIS

  1

  2

  9

  10 Cash Flow $850 $2200

• Calculate the outflow Net Present Value (NPV) The interest rate (i) that used to calculate the NPV is 3%. The calculation of outflow NPV is explained below.

10 NPV = FV/ (1+i) +…..+ FV/ (1+i)

  1

  10

  = $2,200/ (1+0.03) + $850/ (1+0.03) +…+$850/ (1+0.03) = $9,450.67

• Calculate the inflow NPV The interest rate (i) that used to calculate the NPV is 3%. The calculation of inflow NPV is explained below.

  1

10 NPV = FV/ (1+i) +…..+ FV/ (1+i)

  1

  10

  = $200,000/ (1+0.03) + …..+ $200,000/ (1+0.03) = $618,307.90

• Calculate the ratio by dividing inflow NPV with outflow NPV

  Q DISCUSSION Benefit Cost Ratio SWOT analysis

  Reward System Team Member of the month Thank You Card Q DISCUSSION Benefit Cost Ratio SWOT analysis

  IT System SAP R/3 Q DISCUSSION

IMPROVEMENT ALTERNATIVES 1.

  Thank You Card & 2.

  Team Member of the month & 3.

  & Q POTENTIAL EXTRA BENEFIT Improvement in _{rewarding system} ^{General Engineering} _{Division of PT PAL Indonesia (Persero) Increase Motivation Employee Increase employee discipline Implement Impact Impact}

  Extra benefit of reward system Potential extra benefit for other part from the improvement

CONCLUSION AND SUGGESTION

  

1. Based on the questionnaire result, General Engineering Division

PT PAL Indonesia (Persero) reached managed level and has total average score 74,65%. The average score for each element are 78% for process element , 72% for people element , 77% for project element and 72% for technology element . The parts that need to be improved is team in organization part in people element (58%) and integration support part in technology element (53%) which means both of them categorized to characterized level.

  

2. There are three alternatives to improve the readiness level of

Conclusion

  General Engineering division on team in organization part in people element. The first is implementing team member of the month . The second is implementing thank you card . The third is implementing a method that allow a top management or team leader congratulating directly to the team member who has best performance. To improve the readiness level of General Engineering division on integration support part in technology element, the alternatives are implement SAP R/3 and Lightweight Directory Access Protocol (LDAP).

  1. Suggestion for PT PAL Indonesia (Persero)  Top Management keep increasing the understanding about

  Concurrent Engineering 

  Before implement CE, top management of General Engineering Division PT PAL Indonesia (Persero) has to increase the commitment to solve the part with lowest value from the result of BEACON Model by implementing the improvement recommendation before implementing Concurrent Engineering.

   Top management also gives better understanding to the all Suggestion employees about Concurrent Engineering.

  2. Suggestion for Next Research  Focus Group Discussion (FGD) with CE team is an important activity to do. It better conduct FGD more than one time if it possible in order to make better understanding about CE in CE team member.

   Besides assess the company, it needs to assess the whole company supply chain.