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The Indonesian Journal of Business Administration
Published by Institut Teknologi Bandung
ISSN : -     EISSN : -     DOI : -
Core Subject : Science,
Decision Sciences, Operations Research & Management
The Indonesia Journal of Business Administration(IJBA) is a business journal that bridges the gap between business research and practice, evaluating and reporting on new research to help readers identify and understand significant trends in their fields. The IJBA seeks to publish papers relating to business, broadly defined. It publishes articles that address both theoretical and practical issues in the broad areas of Business Strategy and Marketing, People and Knowledge Management, Entrepreneurship and Technology Management, Decision Making and Strategic Negotiation, Operation and Performance Management, and Business Risk and Finance.Contributing academicians and researchers are encouraged to address a variety of concerns relating to all areas of business. We also encourage students to use an interdisciplinary approach to analyzing a topic, which often yields interesting and novel papers. The published articles provide valuable insight into matters of broad intellectual and practical concern to academicians and business professionals. The Journalis published three times a year: in April, July and October. The journal is mainly an outlet of MBA ITB students to publish their final project works, although it also accepts articles written by students at masters level from other institutions. A published paper is an honor that will be unambiguously beneficial for professional and academic careers, especially for those who want to attend graduate/professional schools. This means that papers written in relations to Accounting, Economics, Finance, Marketing, Management, Operations Management, Information Systems, Business Law, Corporate Ethics, and Public Policy all qualify for submission. Information on the journal format can be found in the journal's website. The number of pages must be at 10 pages. After published, the journal article will be available electronically at the journal's website. Print ISSN: 2252-3464; Online ISSN: 2252-9284
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Articles 11 Documents
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Search results for , issue "Vol 4, No 10 (2015)" : 11 Documents clear
Fuel Ratio (liter/bcm) Reduction Through Fleet Management Optimization in Open Pit Coal Mining at PT. KPC Ramli, Denastri; Simatupang, Togar M
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract. On Pit Bendili Truck is the most contribution of Total fuel consumption. Its about 72 % of the total consumption. This Research focus on decreasing delays Trucks occurred when unproductive engine running and increase productivity Shovel especially on R9800B that actual productivity (2900 bcm/hr) is under plan (3100 bcm/hr). Queuing Truck is the most unproductive delay in Pit Bendili. Cycle time Truck depends on loading point and dumping point. It is a fix plan from Team Techincal, on this research is not focus on cycle time. Man and Method on operation are other factors that influencing of fuel ratio. The goal of the thesis is find dominant factor and give recommendation to production team in order to reduce fuel ratio until 3,19% from fuel ratio 1.43 ltr/bcm to 1.38 liter/bcm. And potential of cost saving from fuel consumption is US $ 748,985 from May to December 2015.Key words : Fuel Ratio, Shovel, Delay unproductive truck, Queuing, Shovel Productivity, overburden removed 
Information Technology Service Management Framework Selection through Analytic Hierarchy Process in an Energy Company Rachmadianto, Faisal; Adhiutama, Akbar
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstrac.tDependency of companies on Information Technology (IT) is increasing significantly for the last decade. IT infrastracture has risen so complex teamed with company requirement to cut costs and always adhere with regulation. It has pushed companies in searching processes in order to increase their efficiency in managing IT operations. The current IT organization model and services in one of the biggest oil and gas Company in Indonesia have been questioned by many customers regarding with its performance, service satisfaction and customer oriented process. The management through voice of customer demanded to have improvement in current IT service management processes. Information technology service management (ITSM) is a study to manage organizations or companies providing services of IT based on a customer’s point of view. It is required to change or shift to a service-oriented approach from technology-oriented in managing IT. It will make business process between IT and business change so that they will work together starting from defining until delivering IT services.To select the best ITSM frameworks that suit with the Company, Analytic Hierarchy Process (AHP) methodology is being applied. AHP as one of the multi criteria decision making approach with benefit, opportunity, cost, and risk (BOCR) analysis as the technique to determine the best alternatives of IT service management framework considering several factors of criteria and sub-criteria. It involves several employees across IT functions and customer representatives to develop these criteria. Based on AHP with BOCR analysis, this study concludes the solution of implementing Information Technology Infrastructure Library (ITIL) with End-to-End Model and Lean Sigma is the best alternative (0.4279). The solution is the best to improve customer satisfaction, closer business and IT alignment and quick IT response to manage business needs. The second priority of the solution is implement ITIL (0.2567) followed by Implement MOF (0.1678) and last priority is Implement CoBit (0.1475). The implication with this solution is to have reorganization that will need support from management of the company. To lead the big change, John Kotter's 8-step change model is being applied on the implementation plan.Keywords: Analytic Hierarchy Process, information technology service management, information technology infrastructure library 
Evaluation and Improvement of Metalurgy Key Performance Indicator at Concentrating Division PT. Freeport Indonesia Arief, Orvelly Prima; Simatupang, Togar M
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract.With the current condition of mining business that highly influenced by the volatility of metal commodity prices including copper and gold, the competition between other companies in the same industry demanded that the production process to be effective in order to achieve higher profit. Maintaining the production process and has a correct performance measurement system is critical. Therefore a key performance indicator need to be evaluated and developed to help monitor the performance of metallurgy department, that will help to achieve the production target. The current key performance indicator system has provided the technical team or metallurgist at the Concentrating division with a tool to track various process parameters on a daily basis. However, there is an opportunity to create a better tool of performance tracking for improved productivity, has a simplicity in its display but containing enough detail for quick troubleshooting of the problems, has a specific performance indicators required for different level of responsibility, and easy to use to monitor the process and help to achieve production target. In order to find the right key performance indicator as required by the metallurgy department, a framework developed from performance measurement concept of total quality management is selected. Because of its ability to be more focused on the improvement of internal business process. The critical success factor are used for the basis of selecting all parameters for the key performance indicator. The critical success factor can be identify and defined based on the mission of the metallurgy department and its business strategies. Combined with mineral processing theory to confirm and select the parameters used for metallurgy key performance indicators. Keywords: Metallurgy, Key Performance Indicators (KPI), Performance Measurement Framework, Critical Success Factor. 
Development and Establishment of Mining Equipment Component Management Strategy: A Consideration form Cost-Benefit Point of View Purwa, Anggra Wishnu; Adhiutama, Akbar
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract. In a coal mining operation, maintenance of mining equipment holds significant roles that influence overall productivities. From cost point of view, maintenance of mining equipment has a serious impact as well to the cost of production. And, on behalf of maintenance activities, the availability of components and the reliability of component supply is strategic because without components there is no maintenance of mining equipment. The main purpose of this thesis is to scrutinize the strategy of maintenance of mining equipment components that satisfy demand from mining equipment maintenance activities. This thesis suggests comprehending the knowledge and skill of managing the aspects of component maintenance; that will help supplying mining equipment components for maintenance activities in most efficient and effective ways.Key Words:Material Managements, Rotable Spare Parts Management, Repairable Spare Parts Management, Inventory Policy
Analysis of The Balanced Scorecard Implementation at Divisional Level in PT KPC to Rebuild Contextual Map for MOD Performance Management System Meiliza, .; Wibisono, Dermawan
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract – The Balanced Scorecard is one of Performance Management System invented by Kaplan and Norton that is widely used in many companies in the world. KPC (PT. Kaltim Prima Coal) started the Balanced Scorecard implementation at the end of year 2013 in three divisions; one of them was Mining Operation Division (MOD). But, according to observation during one year of implementation at the end of year 2014, it seemed that MOD management never used the Balanced Scorecard for performance review. Thus, a study was conducted to seek and analyze the root causes of the problem. In this study, researcher used purposive sampling because those being interviewed were chosen based on their position in the company. Primary data was gathered by doing interviews and discussion. Meanwhile, the sources of secondary data were company’s historical documents regarding Balanced Scorecard implementation in KPC.During interviews and discussions, it was concluded that there were three main aspects which caused the balanced Scorecard implementation failure. Current Balanced Scorecard strategy map, software used for scorecard automation, and implementation process itself were three main aspects that were being analyzed. The analyses results showed that there were three root causes of the problem; those were incomplete strategy map structure, limited software capability, and premature implementation. To solve the problem researcher suggests MOD to rebuild its current MOD Balanced Scorecard strategy map and modify software setting to solve limited software capability. The researcher also suggests MOD to involve personnel from other divisions which activities are related to MOD activities.
Performance and Maintenance Improvement of UG Electrical Equipment PT. Freeport Indonesia Bosco, Don; Simatupang, Togar M
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract. Operation movement from Grasberg to Underground requiring UG Electrical, as the sole electrical maintenances and services provider in underground area, to develop the best maintenance plan to improve effectiveness and efficiencies in performing both maintenances and services activity as there would be expansion in working area and additional equipment to be maintained. Business process reengineering approach is taken as guide in developing methodology to rectify and improve current problem in maintenances and services activity. Current situation analysis is done to describing and analyzing the current (as-is) process map, current symptoms and root cause problem, and resources and capability assessment. Desired target is described by analyzing customer needs and determining performance indicator to achieve it.The results of current versus desired target in performance will be used to analyze performance gap for each performance indicator and inhibitors that causing gap in performance. Development of adequate KPI is proposed in order to rectify gap in performance. New internal business process of maintenances and services also will be developed as activity guidance for all functional teams to achieve desired KPI. . Options in data acquisition, namely SAP, SCADA (equipment telemetry), and shift activity report are considered in order to provide adequate information in KPI’s dashboard development. Keywords: Maintenance plan, performance gap, business process, KPI, dashboard.
Operational Risk Management Case and Proposed Action Plan to Support Business Continuity at PT. Freeport Indonesia Yurizal, Ruky; Wiryono, Sudarso Kaderi
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract- Internal and external environmentalsituation changes and the company experienced  rapid growth followedby the increasing complexity of risk and its uncertainty in the operational activities undertaken by the company. This final project will focus on the issue of managing thepotentialriskof people at PT Freeport Indonesia, which could have an impact on mining activities and the delay resulted in the cessation of production activities as well as a reduction in the production of normal production capacity. Risks that have been and will be faced by PT Freeport  Indonesia can be affectingto Business Continuityin the futureand also could affect the potential problems and risks that might appear, therefore,to minimize any potential risks that may arise in the operational  activities,this  paper  will focus on how to implement the  Operational Risk Management  by emphasizing to people risk in regards to minimize and preventrisk to the operational activitiesof the company. The research comprisesof an analysis of the existing literature within the scope of Operational Risk Management and exploration of Risk Managementpractice that has beenapplied in the PT FreeportIndonesia today. The research approach is also through by benchmarking  against practices of Operational Risk Management at the company that has implemented  so in order to find and assess best practices that can be applied to the PT Freeport Indonesia. The research  data is predominantly  qualitative.  On the implementationof the Operational  Risk Managementplan will follow the rules of the sequence of steps Risk Managementby the accompaniment of Management commitment  and all organizational linesto make  risk managementand business continuity managementas a whole culture in the implementation  of the company's operation in preventing the impact of the risk without reducing the opportunity of corporate objectives to be achieved. Keywords: Risk, People Risk, Business Continuity, Operational Risk Management, Risk Management Abstract- Internal and external environmentalsituation changes and the companyexperienced  rapid growthfollowedby the increasing complexity of risk and its uncertainty in the operational activities undertaken by thecompany. This final project will focus on the issue of managing thepotentialriskof people at PT FreeportIndonesia, which could have an impacton mining activitiesand the delay resultedin the cessation of productionactivitiesas well as a reduction in the production of normal production capacity. Risks that have been and will befaced by PT Freeport  Indonesia can be affectingto Business Continuityin the futureand also could affect thepotentialproblems and risks that might appear,therefore,to minimizeany potentialrisks that may arise in theoperational  activities,this  paper  willfocus on how to implementthe  OperationalRiskManagement  byemphasizing to peoplerisk in regards to minimize and preventrisk to the operationalactivitiesof the company.The research comprisesof an analysis of the existing literaturewithin the scope of Operational Risk Managementand exploration of Risk Managementpractice that has beenapplied in the PT FreeportIndonesia today. Theresearchapproach is also through by benchmarking  against practices of OperationalRisk Management at thecompany that has implemented  so in order to find and assess best practices that can be applied to the PT FreeportIndonesia. The research  data is predominantly  qualitative.  On the implementationof the Operational  RiskManagementplan will follow the rules of the sequenceof steps Risk Managementby the accompaniment ofManagementcommitment  and all organizational linesto make  risk managementand business continuitymanagementas a whole culture in the implementation  of the company's operation in preventing the impact ofthe risk without reducing the opportunity of corporate objectives to be achieved.Keywords: Risk, People Risk, Business Continuity, Operational Risk Management, Risk Management 
Hot Line Work Resources Fulfillment Strategy Selection using SMART Methods Setyawan, Irfan Agus; Putro, Utomo Sarjono
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract. Electricity supply has become the main part of an industry process, even more in oil and gas industry. Operating a safe and reliable electric power system requires continues maintenance of all equipment from generation side until distribution side. Maintenance activities of transmission and distribution line could be performed either offline or online condition. Maintenance activities of transmission and distribution line that is conducted without shutting down the line or on energized line, it is called Hot Line Work. This maintenance method is needed to prevent production loss. Hot Line Work activities require specific and competence resource. In this study, we propose alternatives of Hot Line Work resources fulfillment strategy.In this study, Kepner-Tragoe Problem Analysis is applied to analyze the problem and Simple Multi Attribute Rating Technique (SMART) applied in decision making process. This method is utilized since SMART method allow complex problem to be decomposed into sets of simpler judgment. This simplicity influences directly on the understanding of the decision maker about the process used in the solution of the problem since the decision making process involving many decision makers from various background. Each steps of SMART method are combined with other tools to ease and facilitate the process. The TOWS matrix is used in alternative generation. Brainstorming tool is used in attribute identification. Interval scale form is used in measuring the weight of attribute and attribute value to each alternative. From the TOWS matrix, 4 alternatives are generated: hire new employee, use secondee contract, use service contract or use man-hours contract. Alternative 1 – hire new employee – place the highest position for cost needed and total benefit value. Alternative 2 – use secondee contract – place the second position in term of cost needed and total benefit value. The needed cost of Alternative 2 is one third than Alternative 1, but total benefit value is close to Alternative 1. Alternative 3 – use service contract – place the third position of total benefit value. Alternative 3 and Alternative 4 – use man-hours contract – has the same needed cost and it is slightly lower than Alternative 2, but the total benefit value is much lower than Alternative 2. 2 This study result the selected solution is Alternative 2 since it is intermediate choice. It cost Rp 2 Billion more than Alternative 3, but offers much higher benefits. By using Alternative 2, Electrical Department still could maintain safety, service quality, and salary and career path control of Hot Line Work resources, but the needed cost is moderate. From the sensitivity analysis, it is also robust that Alternative 2 is moderate choice.Keywords: Decision Analysis, Hot Line Work, Simple Multi Attribute Rating Technique, Resources Strategy
Strategy for Maintenance Cost Effectiveness of Fixed Plant Assets by using Life Cycle Cost Analysis and Monte Carlo Simulation to Achieve Production Targets of 2015 – 2021 at The Coal Processing and Handling Division
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract.The objective of this research is removing under performances in coal flow process at CPHD division KPC to achieve production target by using cost effective maintenance strategy. Performance gap analysis for existing eight assets during first quarter 2015 reveals that three assets running in below performance against the target. Therefore, the research focuses on the three failure assets. There are two alternative strategies, do nothing or upgrade.For both strategies are developed by using Monte Carlo Simulation to estimate reliability of the assets and Life Cycle Cost (LCC) model to find out annual cash outflow respectively during the life time of the assets, 2015 until 2021, the end of Coal Contract of Work (CCOW). Finally, Net Present Cost (NPC) analysis is developed to find out the lowest long term cost of ownership for both strategies. KPC produce three types of coal quality; 1) Prima, 2) Pinang and 3) Melawan since the beginning of production in 1991. Since 2013, KPC had been producing only the last two coals, because Prima coal reserve naturally diminished.The failure assets will cause the KPC unable to achieve the production target at the end of 2015 which amounted to 2,149,002 tons. The failure of asset is primarily because the existing assets were not designed for pinang and melawan quality, this leads to higher breakdown maintenance which will decrease capability of assets to perform its function.The result of the research recommends that CPHD should upgrade the failure assets to accommodate pinang and melawan coals. Therefore, KPC is able to achieve the production target of 2015 until 2021.Keywords: Cost effective maintenance, LCC, Monte Carlo simulation
Transition Management of Knowledge Workforce in The Grasberg Surface Mine and Underground Mine
The Indonesian Journal of Business Administration Vol 4, No 10 (2015)
Publisher : The Indonesian Journal of Business Administration

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Abstract – PT. Freeport Indonesia is a subsidiary company of Freeport McMoRan Copper & Gold Inc. (FCX) which hold 81.28% of its share, GOI (9.36%), and PT. Indocopper Investama (9.36%). PTFI was establish on April 8th, 1967, which the main business is produce and distributing concentrate copper and gold. Grasberg Surface Mine was contributing 80% of concentrate production for all PTFI revenue’s since 26 years ago and will be closure by early 2018. Safety slope stability issue is become the main reason to closure the Grasberg surface mine, then will be continued by using block cave technic of underground mine – Grasberg Block Caving ( GBC). Grasberg mineral district have a remaining deposit of minerals ore 2.4 million tons. In line with  the developing of infrastructure which estimating require of capital around US $ 16 billion since 4 years, GBC also posting the manpower requirement. In other side Grasberg will have a surplus manpower due to ramping down of production afterward the mine closure. Currently PTFI faced strategic problem related the manpower such as (i) termination of 1,271 Grasberg manpower is need huge cost for final payment, and will impacted to PTFI reputation as a mining operator in Indonesia and also negative impact to drop of share price (ii) the limitation of availability manpower experienced in underground miner to fulfil underground manpower requirement (iii) Grasberg workforce knowledge transition was built to assessment shifting the manpower from Grasberg to Underground mine (iv) Resistance of manpower mixing with gap competencies & skill to-be job in underground  need to be created strategy and approach (v) Timing gaps between Grasberg manpower released plan as supplied and underground mine manpower requirement schedule as demand have possibility disturbing the ore production goals.  Therefore in anticipation the manpower problem issue with some potential alternatives (i) Transition management program of knowledge workforce strategy and approach (ii) Enrichment and reskilling program of basic competencies (iii) Organizational change which lead by change management (iv) Involving all stakeholder to support change management.  Keywords: Knowledge Workforce, Transition Management, General Environment Analysis, Five Forces of Competitor, QSPM, The Jay Galbraith Star Model, Force Field Analysis, Change Management  

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