By
Roman Kusumohardono 11407039
BACHELOR’S DEGREE in
INDUSTRIAL ENGINEERING
FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
August 2018
Revision after the Thesis Defense on 19 July 2018
Roman Kusumohardono STATEMENT BY THE AUTHOR
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.
Roman Kusumohardono
_____________________________________________
Student Date
Approved by:
Ir. Triarti Saraswati, M.Eng.
_____________________________________________
Thesis Advisor Date
Dr. Eng. Sumarsono, S.T., M.T.
_____________________________________________
Thesis Co-Advisor Date
Dr. Irvan S. Kartawiria, S.T., M.Sc.
_____________________________________________
Dean Date
Roman Kusumohardono ABSTRACT
MINIMIZATION OF LEAD TIME FOR SAND TRAP USING VALUE STREAM MAPPING: A CASE STUDY AT PT. HALLIBURTON INDONESIA
By
Roman Kusumohardono Ir. Triarti Saraswati, M.Eng.
Dr. Eng. Sumarsono, S.T., M.T.
SWISS GERMAN UNIVERSITY
PT. Halliburton Indonesia is a provider of products and services to the energy industry which mainly supports the exploration of oil and gas in Indonesia. Sand Trap is one of Halliburton’s chemical products used in the oil field to prevent producing sand or sand movements in an oil well. The product lead time is 4 months which any disruption will lead to Non-Productive Time (NPT). The company expect to have an increase in demand for Sand Trap in the following years. The objective of the research is to minimize the lead time. To analyze the problem, the main tools used is value stream mapping. Value stream mapping is a quality management tool used to analyze activities or processes that take a product or services from the beginning to the customer. It highlights whether a process is value added. In addition, there are set of tools used to identify the root-cause problems which are Pareto chart and cause-and-effect diagram.
The quality tools will be used to identify the root-cause problems lies within the processes. Through drawing of the current and future state of value stream mapping, improvements are suggested towards the company which resulted in impacts towards the lead time and cost of the product.
Keywords: Value Stream Mapping, Waste, Current State, Future State, Oil & Gas
Roman Kusumohardono
© Copyright 2018 by Roman Kusumohardono
All rights reserved
Roman Kusumohardono DEDICATION
I dedicate this thesis for my beloved parents, girlfriend, and friends who have provided endless supports throughout the joys and sorrows.
Cheers.
Roman Kusumohardono ACKNOWLEDGEMENTS
I would like to express my gratitude to Allah SWT for without him I would not be able to complete this research.
I wish to thank my advisor Ir. Triarti Saraswati, M.Eng. and my co-advisor Dr. Eng.
Sumarsono, S.T., M.T. to which I owe profound gratitude for the guidances, recommendations and suggestions in conducting this research.
Many thanks to Ms. Angel Astaman, my supervisor who has spared her limited times and constantly encouraging me to go beyond my limit. I also would like to thank the employees at PT. Halliburton Indonesia who have been continuously supporting and always being helpful towards me throughout the research.
Many thanks to my classmates and friends for the constant support. I will cherish the moments we went through together.
My deepest gratitude for my parents and my family for because of them I can be who I am today. Last but not the least, I would like to thank my girlfriend Safira Janet Isabella who has spared most of her time to support me and constantly remind me that I am greater than what I believe.
Roman Kusumohardono 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
CHAPTER 1 - INTRODUCTION ... 11
1.1 Background ... 11
1.2 Research Problem ... 13
1.3 Research Objectives ... 13
1.4 Significance of Study ... 13
1.5 Research Questions ... 13
CHAPTER 2 - LITERATURE REVIEW ... 14
2.1 Oil & Gas Industry ... 14
2.1.1 Upstream (E&P) ... 15
2.1.2 Tender ... 16
2.2 Supply Chain ... 16
2.2.1 Demand Management ... 18
2.2.2 Procurement ... 19
2.2.3 Logistics ... 20
2.3 Lead Time ... 21
2.4 Lean Manufacturing ... 24
2.5 Business Process ... 27
2.5.1 Business Process Re-engineering... 28
2.5.2 Operations Management ... 29
CHAPTER 3 – RESEARCH METHODS ... 32
3.1 Problem Identification ... 34
3.2 Literature Review ... 34
3.3 Data Collection Method ... 35
3.3.1 Interview ... 35
3.3.2 Inventory Record... 36
3.4 Data Processing ... 36
Roman Kusumohardono
3.4.1 Business Process ... 37
3.4.2 Material Classification ... 37
3.5 Analyze ... 38
3.5.1 Swim Lane Diagram ... 39
3.5.2 Lead Time Condition ... 40
3.5.3 Develop & Analyze Using Value Stream Mapping ... 40
3.5.4 Develop & Analyze Using Pareto Chart ... 45
3.5.5 Develop & Analyze Using Cause-Effect Diagram ... 46
3.6 Develop Solutions ... 47
3.7 Create Recommendation ... 49
CHAPTER 4 – RESULTS AND DISCUSSIONS ... 50
4.1 Company Overview ... 50
4.2 Sand Trap ... 53
4.3 Problem ... 57
4.4 Develop Business Process ... 57
4.5 Value Stream Map – Current State Analysis ... 62
4.6 Pareto Analysis ... 65
4.7 Cause-and-Effect Analysis ... 67
4.7.1 Material ... 67
4.7.2 Man ... 69
4.7.3 Environment ... 70
4.7.4 Method ... 71
4.7.5 Concluding Remark ... 72
4.8 Improvements ... 73
4.8.1 Localization ... 75
4.8.2 Reengineer ... 86
4.9 Control ... 95
CHAPTER 5 – CONCLUSIONS AND RECCOMENDATIONS ... 96
5.1 Conclusions ... 96
5.2 Recommendations ... 97
GLOSSARY ... 98
REFERENCES ... 100
APPENDICES ... 104
CURRICULUM VITAE ... 117
