Shorten Lead Time of the Procurement Process in Aluminium Smelter

Abstract

Aluminium Smelter as a specific manufacture, certainly has various types of needs both in terms of materials, services and spare parts. This difference causes longer duration of procurement lead time which can cause disrupted production processes. Procurement Department as a department that serves the purchase request identifies the source of the problem that causes the procurement lead time process does not meet the standard lead time 45 working days for goods 60 working days for service. By using Ishikawa's Fishbone and Fault Tree Analyst, it was found that one of the causes of the long lead time of the procurement process was policy. Improvements were made in various aspects such as changes in procurement methods, authority, etc. In the 2019 SKDIR Procurement regulatory application, improvements in goods lead time which were originally from 88.54 working days to 61.90 working days and services from 105.9 working days to 52.62 working days.