PSS Application on Business Process Improvement of Equipment Pool System in Mining Company

This research identifies challenges in the management of heavy equipment in a mining company, particularly in the face of increasing operational costs. This research aims to explore and implement strategies that can enhance the efficiency and effectiveness of the equipment pool system. The objectives are to increase equipment utilization, improve inter-division collaboration, and propose potential cost-saving measures. The study pinpoints the weaknesses in the current equipment pool system, primarily triggered by sudden and unplanned requests, leading to suboptimal utilization and decision- making. By examining performance availability and utilization metrics for quantitative data and interviewing the respondents for qualitative data, the research highlights the DMAIC framework to produce alternative solutions and answer the research objectives. Each phase of the DMAIC framework is utilized to elaborate the business problem and solution through the utilization of Kepner-Tregoe Problem Analysis, Product-service System, and Business Process Mapping improvements. The results of the study highlight considerable opportunities for improving equipment utilization through enhanced coordination and sharing practices across different divisions. Key contributors to underutilization were identified, leading to the proposal of a centralized equipment pool system. The implications of implementing this system are significant for the company. The introduction of a more collaborative and cost-efficient approach to managing heavy equipment is anticipated to result in notable cost savings and heightened operational efficiency. Furthermore, the insights and framework developed through this study can serve as a valuable model for other large-scale mining operations encountering similar challenges.