Proposed Strategy of Heavy Equipment Overhaul: Case Study of a Coal Mining Contractor in Indonesia

The ICE Newcastle's coal price jumped sharply to an all-time high in the first half of 2022 at $440 from $50 during the peak of the COVID-19 pandemic in Q3 2020. Indonesia took advantage of the situation, not only the government and mining owners (mining license holders) which are preparing all the resources to rapidly increase capacity, but also the mining contractors who serve mining owners are forced to pursue this opportunity. The opportunity must be followed by the preparation such as manpower, infrastructure, and heavy equipment. All companies are doing the same way to compete in increasing their capacity, so the problem is the availability of heavy equipment that is limited in bullish conditions. Overhauling the existing heavy equipment is one of the solutions because instead of ensuring the heavy equipment availability, the overhaul maintenance also gives a benefit for a cheaper price upfront (50%-70% of the new heavy equipment). However, that condition impacted too on the overhaul maintenance such as the difficulties in planning the number of overhauls, lack of preparation manpower, the material rarity, etc. Meanwhile, overhaul execution requires several resources that are ready at the time before the start of execution, so the preparation of the overhaul maintenance in fluctuation conditions is challenging. Determine the proposed strategy for overhaul maintenance to tackle the issue in the future and how to implement should be defined to prevent obstacles for mining contractor business, especially in overhaul maintenance for company Alpha.