Design of Risk Mitigation Strategy for Procurement of Raw Materials to Glass Melting Furnace at PT AMFG

Abstract

Raw materials procurement is crucial in the sustainability of the glass manufacturing industry, including at PT Asahimas Flat Glass Tbk (AMFG). Procurement of raw materials that are not smooth can cause a significant loss and can cause production failure (unproduct) or shut off factory operations. The glass factory has the characteristics of a continuous factory where the smelting materials must be fed continuously because the smelting furnace operates continuously. There is no holistic research on raw material procurement risk management at PT AMFG. This research uses the House of Risk (HoR) approach to manage risk, which consists of 2 phases. The first phase is identifying risks in which risk events and agents are identified and measurement of severity and occurrence, also carried out levels and calculation of the aggregate risk potential (ARP) value. The second phase is risk management. The phase 1 HoR analysis result was carried out by direct discussion at PT AMFG or material supplier in the mine through scoring for each risk event, namely 65 risk events that can be identified through the planning, purchasing, mining/production, inspection, delivery and treatment process. From the Pareto chart, 9 potential risk agents must be prevented by evaluating using HoR stage 2, so that 17 preventive actions are obtained, of 10 preventive actions will be prioritized. One of the priority actions is the creation of an online monitoring dashboard application (Raw Material or RM-One) that can quickly update and monitor risk management from upstream (mining materials and other crucial raw materials) to downstream (factories). RM-One will help facilitate supply chain coordination, especially in preventive efforts against risks.