A CASE STUDY OF PT. ROKATERA PRIMA INTERNAT

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IMPROVING THE PRODUCTION OF A COAL MINING PROJECT USING PROJECT MANAGEMENT APPROACH:

A CASE STUDY OF PT. ROKATERA PRIMA INTERNATIONAL

By

Alia Rizka Putri Prasetia 1-1212-105

BACHELOR’S DEGREE in

INDUSTRIAL ENGINEERING

FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

August 2016

Revision after Thesis Defense on July 21^st, 2016

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Alia Rizka Putri Prasetia I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Alia Rizka Putri Prasetia

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Student

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Approved by:

Dr. Ir. Yuki Indrayadi, MME

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Thesis Advisor

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Ir. Setijo Awibowo, MM

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Thesis Co-Advisor

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Dr. Ir. Gembong Baskoro, M. Sc

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Dean

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Alia Rizka Putri Prasetia ABSTRACT

IMPROVING THE PRODUCTION OF A COAL MINING PROJECT USING PROJECT MANAGEMENT APPROACH:

A CASE STUDY OF PT. ROKATERA PRIMA INTERNATIONAL

By

Alia Rizka Putri Prasetia Dr. Ir. Yuki Indrayadi, MME, Advisor

Setijo Awibowo, MM, Co-Advisor

SWISS GERMAN UNIVERSITY

Similar to characteristics of common projects, coal mining project is limited by budget, resources and time. Mismanagement of such project could be costly and causes time overruns which is unprofitable for the project sponsor. According to previous study, adoption of project management’s techniques could increase chances of success in such project. This study analyzed the execution of a coal mining project based on performances in time and production perspectives, determined occurring conflicts, and recommended solutions based on project management approach. Time and production analyses which were conducted as gap analyses between ideal and actual scenarios in the coal mining project of PT. Rokatera Prima International in Penajam have proven that current conventional management was inefficient. Further analyses show that the cause of the inefficiency could be pinpointed to the occurring conflicts within the project team. From these findings, conclusions and recommendations are taken.

Resulting recommendations include project’s restructuring and reorganization in plans and schedule, based on team’s organizational structure and responsibility assignment matrix constructed in this study, hence giving a better chance for the project to success.

Keywords: Project Management, Coal Mining Project, Schedule Analysis, Production Analysis, Conflict Management in Project Management.

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Alia Rizka Putri Prasetia DEDICATION

I dedicate this work to my beloved family, dearly friends, mentors, and lecturers, and fellow students that will be benefited from this study in the future.

Special dedication to my father, Iwan Prasetya, my mother, Almh. Lucy Veliana, and my brother, Alm. Rendi Rizky Mohammad Pratama.

May love and peace always linger upon us.

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Alia Rizka Putri Prasetia ACKNOWLEDGEMENTS

I wish to thank Allah SWT for countless opportunities, grace and bless that I can finish this thesis well.

I would like to thank my father, Iwan Prasetya, for always being supportive and helpful physically and morally for my thesis writing. His wisdom and sincere love have always been the greatest blessings and support. Countless gratitude for my mother and brother whom I can still feel the presences and love.

I also owe profound gratitude to my advisor, Dr. Ir. Yuki Indrayadi for his support, patience, helpful suggestions, guidances and recommendations. Regardless of his limited spare time, he was always being supportive and still would like to spare some time to help this thesis writing. Also, countless gratitude to Ir. Setijo Awibowo, MME.

my co-advisor who never stop believe in my work and always sending me positive vibes.

Many thanks to the project engineers of PT. Rokatera Prima International who have brotherly support my writings. I am very grateful for their time spared to provide data and information, regardless of their busy schedules, nights and days. Also to Mr.

Selamet Widodo and Mr. Sanjay Lakhiani, for letting me involved in the project and believe in me.

Lastly, many thanks for my classmates, SGU’s Industrial Engineers from the batch 2012, also my mentors and lecturers in SGU for all the best and worst times in the past four years. As for my closest friends; Dita, Reno, Dhika, Kelvin, Shelfy, Erick, Hilman, and Steven who always been with me and support me in my ups and downs, thank you very much for your sincerities in befriended with me. I wish many lucks for our exciting upcoming adventure is yet to come.

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Alia Rizka Putri Prasetia TABLE OF CONTENTS

Page

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 7

LIST OF FIGURES ... 9

LIST OF TABLES ... 10

LIST OF APPENDICES ... 12

CHAPTER 1 – INTRODUCTION ... 13

1.1 Background ... 13

1.2 Problem Statement ... 14

1.3 Thesis Objectives ... 14

1.4 Significant Study ... 15

1.5 Thesis Scope ... 15

1.6 Thesis Limitations ... 15

1.7 Expected Results ... 15

CHAPTER 2 – LITERATURE REVIEW ... 16

2.1 Project ... 16

2.2 Project Management ... 24

2.3 Coal Mining Project ... 37

2.4 Project Management in Mining Industry ... 39

2.5 Evaluation of Project ... 42

2.6 Analysis of Previous Study ... 43

CHAPTER 3 – THESIS METHODOLOGY ... 46

3.1 Project Overview ... 47

3.2 Project’s Schedule Analysis ... 52

3.3 Project’s Production Analysis ... 55

3.4 Project Management Evaluation ... 59

3.5 Conflict Analysis ... 62

3.6 Solutions Formulation ... 62

CHAPTER 4 – RESULTS AND DISCUSSIONS ... 63

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4.2 Work Breakdown Structure ... 64

4.3 Project Schedule ... 68

4.4 Production Analysis ... 78

4.5 Production Efficiency Analysis ... 82

4.6 Results of Project Evaluation ... 86

4.7 Solutions for The Indicated Conflict ... 94

CHAPTER 5 - CONCLUSIONS AND RECOMMENDATIONS ... 98

5.1 Conclusions ... 98

5.2 Future Research ... 99

5.3 Recommendations ... 99

GLOSSARY ... 101

REFERENCES ... 103

APPENDICES ... 105

CURRICULUM VITAE ... 116