Optimizing Overall Equipment Effectiveness Using Kepner-Tregoe Decision Analysis: A Case Study of Semi-lean Pumps in Ammonia Plant 2 of PT Pupuk Kalimantan Timur

The increasing demand for Ammonia production requires innovative approaches to ensure equipment reliability and operational efficiency in its production facility. This study employs a multi-faceted approach to address the challenges associated with the reliability of Semi-lean Pump 107-JB in Ammonia Plant 2 of PT Pupuk Kalimantan Timur, a critical equipment in its production facility. Utilizing the Kepner-Tregoe Decision Analysis Method, the study evaluates various alternative solutions to enhance the pump’s reliability and overall equipment effectiveness (OEE). The research identifies the root causes of the pump’s low reliability, indicated by its declining OEE from 2021-2022. It is done through a series of OEE calculations, 6 Big Losses analysis, and Current Reality Tree analysis. Four major phenomena contributed to the issue: inadequate maintenance procedures and equipment, pump operation beyond its design capacity, insufficient training and competency of manpower, and improper material selection and compatibility testing. The study employs a combination of SCAMPER techniques and the Kepner-Tregoe Decision Analysis framework to develop feasible alternative solutions, which categorizes evaluation criteria into ‘Musts’ and ‘Wants.’ Factors such as cost, feasibility, and potential impact on OEE are assessed. Among the alternatives evaluated, implementing IoT Probe Sensors for real-time monitoring emerged as the most effective solution, addressing the research objective. The thesis culminates in the development and execution of a Maintenance Implementation Plan, which is subsequently assessed through OEE performance metrics. Post-implementation, the Semi-lean Pump 107-JB is estimated to experience an increase in OEE from 63.63% in 2022 to 96.74% in 2024, significantly reducing downtime and contributing an estimated savings of $12.6 million to the company. The research provides actionable insights for improving Semi-lean Pump 107-JB’s reliability. It offers a structured methodology for evaluating alternative solutions for similar applications in industrial settings, particularly rotating equipment in the petrochemical industry.