Cost Analysis of Outsourcing Strategy by CVP Method in Maintenance Team Oil and Gas Company
| Main Authors: | Nugroho, Nugroho; School of Business and Management, Institut Teknologi Bandung, Sukarno, Subiakto; School of Business and Management, Institut Teknologi Bandung |
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| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Proceedings of International Conference on Management in Emerging Markets (ICMEM) SBM ITB
, 2022
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| Online Access: |
https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4780 https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4780/1667 |
Daftar Isi:
- The maintenance team having limited resource loading to support daily Operation activities, the impact is a late response to conduct corrective jobs and impact on production target. In line with the Company strategy, the position for retired maintenance employee (low-grade technician) or employee who will be assigned to another department will be not replaced. The company decided to apply to outsource service contracts for a “backfill” low-grade technician position. These maintenance services are to provide resource unit rate (RUR) scheme short service activities and material/spare part procurement for materials that are not supplied by Company Warehouse.This paper aims to provide an adequate methodology by decision-making method Kepner Tregoe Analysis for problem analysis and SMART Analysis for decision analysis to overcome the problem of resource shortages and to determine the best alternative for the best human resource strategy based on the conditions of the oil and gas market around 2017-2018 where oil prices tend to be low at that time.The methodology here proposed is based upon the evaluation of the expected profit function of both the total revenue and the total cost, by performing a trade-off analysis based on the transaction costs and CVP (Cost Volume Profit) analysis. In addition, this research also aims to see how much budget will be given by new Operators after transferring oil and gas block concession on Aug 2021 to new stakeholders using linear regression analysis. Keywords: Outsourcing, decision analysis Kepner Tregoe and SMART, CVP/Cost Volume Profit Analysis