ANALYSIS OF RAW MATERIALS DELAY AT PT. XYZ USING THE HOUSE OF RISK (HOR) METHOD
Keywords:
Materials Delay, House of Risk, Aggregate Risk Potential, Effectiveness to DifficultyAbstract
PT. XYZ is one of the companies on Batam Island that fabricates steel construction or modules for the oil and gas industry. However, one of the company's major potential issues is obtaining raw materials in time for fabrication. The purpose of this study is to identify factors causing raw materials delays from the suppliers by determining risk events and risk agents using the House of Risk (HOR) method. The stages for identifying risks and evaluating the risk events and risk agents are performed by interviewing the relevant company staff using questionnaires. The research obtained as many as seven risk events and eleven risk causes, and the study is followed by conducting a correlation assessment process. Finally, producing them to determine the risk agents' ranking. Based on the Aggregate Risk Potential (ARP) of the HOR Model 1, there are three dominant risk agents described by the Pareto Diagram, namely, the Unavailability of the required raw materials (A1), the Changing of materials delivery schedule (A2), and the Negligence of vendors (A5). After obtaining priority order of eight strategies, four strategies resulted in an effectiveness of 80% of the total cumulative Effectiveness to Difficulty (ETD) ratio, namely, improving communication with vendors (PA1), increasing inspection and checking accuracy (PA2), conducting stricter vendor evaluations (PA3), and conducting efficient and economical budget planning and management (PA8).
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