STRATEGY TO IMPROVE LABOR PRODUCTIVITY IN PT FREEPOT INDONESIA'S UNDERGROUND MINING PROJECT

Inzi Almuntadzar,M Syamsul Maarif,Lukman M Baga

doi:10.17358/jabm.7.2.241

Inzi Almuntadzar, M Syamsul Maarif + Show 1 more

Open Access

https://doi.org/10.17358/jabm.7.2.241

Copy DOI

Abstract

Poor productivity of labor construction causes project cost to increase and project completion schedule behind target. Underground mining company such as PT Freeport Indonesia (PTFI) struggle to overcome problem with productivity. It is critical for mining underground company to keep up labor productivity due to importance of mining production. Therefore, the purpose of this research are: (1) to identify the factors that influence labor productivity; (2) to formulate alternative strategies to increase the productivity; and (3) to formulate recommendations carried out by PTFI in order to increase the productivity. This research use literature review and expert discussion to identify factors affecting labor productivity in the construction industry. The analytical Hierarchy Process (AHP) method used to find the best strategies to increase labor productivity. The result of this research showed that the factors that has the most influence is labor management, the most influencing actor is construction management, the most important goal is to improve project management implementation and the best strategy to increase labor productivity is to create a Project Management Office (PMO) system. The recommendation that can be given is that PTFI needs to develop guidelines and programs for PMO system development and apply PMO to all PTFI mining activity. Keywords: Analytical Hierarchy Process (AHP), Labor productivity, Project Management Office (PMO), Strategies, Underground mining

Highlights

Labor productivity has become an often-discussed topic in the construction industry since it affects the costs and schedule of construction projects
According to Central Statistics Agency (BPS), the construction industry sector contributes approximately 10% of Indonesia’s Gross Domestic Product (GDP) so it is important for stakeholders who are involved to maintain labor productivity in order to continue giving contribution to the company and the state
The purpose of this study is to identify the factors that mostly influence the productivity of underground mining project labor, formulate alternative strategies, and provide recommendations for PT Freeport Indonesia (PTFI) to increase labor productivity

Summary

Introduction

Labor productivity has become an often-discussed topic in the construction industry since it affects the costs and schedule of construction projects. Construction companies aim to keep great labor productivity so that company profits are not affected. The importance of labor productivity to construction projects forces construction companies to take measurements to keep an effective labor productivity. The definition of productivity is the ratio between input and output This comparison model can be used according to the orientation applied such as economy, construction, and activity (Thomas et al 1990). Earned manhours are the sum of labor manhours earned according to the physical achievement of progress. Actual manhours are the sum of labor manhours spend to achieve progress. A measurement that uses working hours provides flexibility and usually suitable for the construction industry since there are various activities involved. The difficulty of measuring CLP using working hours is usually caused by a different perspective in terms of progress achievement. It is important to clarify before conduct measurement

Objectives

Methods

Conclusion