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Margusano, Ardi Andra
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Decision Sciences, Operations Research & Management

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Proposed Improvement to Contract Management in Supply Department Margusano, Ardi Andra; Hermawan, Pri
Jurnal Aplikasi Manajemen Vol. 13 No. 2 (2015)
Publisher : Universitas Brawijaya, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/

Abstract

Coal mining industries currently are in unfavorable condition, therefore the Companyshall reduce the cost and/or increase efficiency in order to equalize the decrease of coalprice. Reducing the cost can be done by 2 methods either reducing the usage i.e. quantity byefficiency or reducing price which is usually done by negotiation as the main strategy of thecompany. Beside negotiation, appropriate contract management will deliver a good contributioneither directly or indirectly towards cost reduction. Symptom indicates a requirement ofimprovement to contract management. The solutions are efficient management, increasingstaffs'ability, increasing staffs'motivation, improvement of policy and procedure, developmentof simple spreadsheet, implementation of optimum cost strategy, owner estimation review,and holding regular socialization. Value added delivered by these solutions includesstaffs productivity, higher saving, better contract quality, higher bargaining position, minimizingloss of production day, and avoidance of additional cost.
Co-Authors Pri Hermawan