PROPOSED STRATEGY OF MRO OPTIMIZATION IN COST-EFFECTIVE PROGRAM BY USING KEPNER-TREGOE ANALYSIS AND ANALYTICAL HIERARCHY PROCESS (AHP)

Abstract

ADC Company is a global company that operates since the year 2000 that has an issue with Maintenance Repair and Operations (MRO) in its system. The current performance and objectives show that they need to take a look at something that can be done possibly and take the initiative that can be improving the company’s performance, especially in this kind of situation. The current setup of Maintenance Repair and Operations or MRO of this company has shown the value that this company has 43% Non-Moving Spare Part (PNM-SP) Material value that is excessive and has turned into a particular issue for the Company, which is supposed to be their fresh money that can be operated further. This inefficient inventory due to significant Potential Non-Moving Spare Part (PNM-SP) Materials all across the years has resulted in the inefficiency of Operational Expenditures (OPEX) which costs the company unused/ never used bought materials associated with handling and maintaining costs produced by those (PNM-SP) materials. The higher the inventory value and the remaining items/materials that cannot be utilized, then the worse the inventory performance reflects. Therefore, the business problem could be identified and further transformed into a problem statement. The objectives of this research are to overcome or reduce the volume of Potential Non-Moving Spare parts (PNM-SP) Materials in our organization, and what tactics or alternative solutions exist to avoid massive Potential Non-Moving Spare parts (PNM-SP) Materials, along with the precautions that should be taken in the event happens in the future, by using Kepner Tregoe Analysis and Analytical Hierarchy Process (AHP). As the result, observed there are 2 quick win actions that can be initiated, those are “Review Item Criticality and removal follow-up” and “Review the calculation and Quantity” consecutively, consistently selected by both Analytical Hierarchy Process (AHP) and Kepner-Tregoe Analysis that has potential effect for the company to sustain and growing up further.