Determining the best alternative to build and operate a new coal crushing facilities: Analytical hierarchy process approach

https://doi.org/10.35912/jomabs.v2i1.2393
Published: Sep 26, 2024

Abstract:

Purpose: This study examines the increase in national coal production in Indonesia and its impact on PT. KLM is one of the largest coal producers in the country. With rising production and shifting global market needs, this study aims to analyze the necessity of building a new Coal Crushing Facility next to the South Pinang Extension #2 area, including evaluating costs and the best strategies for its implementation.

Methods: The research methodology involves analyzing problem trees and stakeholders to uncover business complexities and identify the root causes of issues. Qualitative data were collected using semi-structured interviews. All alternatives were evaluated using Value-Focused Thinking (VFT), and the Analytic Hierarchy Process (AHP) method was employed to determine the best alternative assisted by the Super Decision application.

Results: Based on interviews conducted with subject matter experts (SMEs) and the analysis, three funding solutions were identified: 1. owned by self-financing, and 2. Own by Leasing 3. Rental Scheme.

Limitations: The limitations of this study are that it was sourced from an internal company and gathered from outside the company. An alternative option was produced based on extensive collaborative discussions and interview sessions conducted with subject matter experts within the company.

Contributions: This study provides valuable guidelines for selecting alternative financing to build and operate new coal crushing facilities at South Pinang Extension #2.

Keywords:
1. Life of Mine (LOM)
2. Alternative
3. Crusher
4. Rental
5. Economic Evaluation
Authors:
1 . Kondar Paido Simatupang
Institut Teknologi Bandung, Indonesia
2 . Meditya Wasesa
Institut Teknologi Bandung, Indonesia
View PDF
How to Cite
Simatupang, K. P., & Wasesa, M. (2024). Determining the best alternative to build and operate a new coal crushing facilities: Analytical hierarchy process approach. Journal of Multidisciplinary Academic Business Studies, 2(1), 1–22. https://doi.org/10.35912/jomabs.v2i1.2393
Download Citation
  1. Endnote/Zotero/Mendeley (RIS)
  2. BibTeX

Downloads

Download data is not yet available.
Issue & Section
Vol. 2 No. 1 (2024): November
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

    Baron, J. V. (2023). Blackboard system and students’ academic performance: an experimental study in the Philippines. Journal of Social, Humanity, and Education, 3(3), 173-184.

    Françozo, R. V., & Belderrain, M. C. N. (2022). A problem structuring method framework for value-focused thinking. EURO Journal on Decision Processes, 10, 100014.

    Freeman, R. (1984). Strategic management: A stakeholder approach.

    Hossain, A., Khatun, M., & Shanjabin, S. (2023). Impact of person-job fit and person-organization fit on employee engagement: Moderating role of supervisor support. Annals of Human Resource Management Research, 3(2), 97-114.

    Keeney, R. (1992). Value-focused thinking: A path to creative decisionmaking.

    Keeney, R. L. (1996). Value-focused thinking: Identifying decision opportunities and creating alternatives. European journal of operational research, 92(3), 537-549.

    Krej?í, J., & Stoklasa, J. (2018). Aggregation in the analytic hierarchy process: Why weighted geometric mean should be used instead of weighted arithmetic mean. Expert Systems with Applications, 114, 97-106.

    Mabhanda, W. (2024). The role of green innovation in promoting sustainable economic development in Gweru, Zimbabwe. Journal of Sustainable Tourism and Entrepreneurship, 5(2), 93-109.

    Russo, R. d. F., & Camanho, R. (2015). Criteria in AHP: A systematic review of literature. Procedia Computer Science, 55, 1123-1132.

    Saaty, R. W. (1987). The analytic hierarchy process—what it is and how it is used. Mathematical modelling, 9(3-5), 161-176.

    Saaty, T. L. (1990). How to make a decision: the analytic hierarchy process. European journal of operational research, 48(1), 9-26.

    Sileyew, K. J. (2019). Research design and methodology (Vol. 7): Cyberspace.

    Snowden, D. (2021). Cynefin: weaving sense-making into the fabric of our world: Cognitive Edge-The Cynefin Company.

    Suganda, A. S., & Aprianingsih, A. (2024). Strategies for Promoting Bancassurance Products in West Java: A Study of Bank XXX's Internal and External Factors. Journal of Multidisciplinary Academic Business Studies, 1(2), 175-192.

    Sulaiman, E., Fitralisma, G., Fata, M. A., & Nawawi, R. (2023). Empowering local communities engagement: Rural tourism and business innovation for SDGs desa. Journal of Sustainable Tourism and Entrepreneurship, 4(3), 331-344.

  1. Baron, J. V. (2023). Blackboard system and students’ academic performance: an experimental study in the Philippines. Journal of Social, Humanity, and Education, 3(3), 173-184.
  2. Françozo, R. V., & Belderrain, M. C. N. (2022). A problem structuring method framework for value-focused thinking. EURO Journal on Decision Processes, 10, 100014.
  3. Freeman, R. (1984). Strategic management: A stakeholder approach.
  4. Hossain, A., Khatun, M., & Shanjabin, S. (2023). Impact of person-job fit and person-organization fit on employee engagement: Moderating role of supervisor support. Annals of Human Resource Management Research, 3(2), 97-114.
  5. Keeney, R. (1992). Value-focused thinking: A path to creative decisionmaking.
  6. Keeney, R. L. (1996). Value-focused thinking: Identifying decision opportunities and creating alternatives. European journal of operational research, 92(3), 537-549.
  7. Krej?í, J., & Stoklasa, J. (2018). Aggregation in the analytic hierarchy process: Why weighted geometric mean should be used instead of weighted arithmetic mean. Expert Systems with Applications, 114, 97-106.
  8. Mabhanda, W. (2024). The role of green innovation in promoting sustainable economic development in Gweru, Zimbabwe. Journal of Sustainable Tourism and Entrepreneurship, 5(2), 93-109.
  9. Russo, R. d. F., & Camanho, R. (2015). Criteria in AHP: A systematic review of literature. Procedia Computer Science, 55, 1123-1132.
  10. Saaty, R. W. (1987). The analytic hierarchy process—what it is and how it is used. Mathematical modelling, 9(3-5), 161-176.
  11. Saaty, T. L. (1990). How to make a decision: the analytic hierarchy process. European journal of operational research, 48(1), 9-26.
  12. Sileyew, K. J. (2019). Research design and methodology (Vol. 7): Cyberspace.
  13. Snowden, D. (2021). Cynefin: weaving sense-making into the fabric of our world: Cognitive Edge-The Cynefin Company.
  14. Suganda, A. S., & Aprianingsih, A. (2024). Strategies for Promoting Bancassurance Products in West Java: A Study of Bank XXX's Internal and External Factors. Journal of Multidisciplinary Academic Business Studies, 1(2), 175-192.
  15. Sulaiman, E., Fitralisma, G., Fata, M. A., & Nawawi, R. (2023). Empowering local communities engagement: Rural tourism and business innovation for SDGs desa. Journal of Sustainable Tourism and Entrepreneurship, 4(3), 331-344.