Proceedings of the Business Innovation and Engineering Conference 2020 (BIEC 2020)

Analysis of Waste of Cost Factors During Engineering Phase of EPC Project with Lean Thinking (Case Study: PT.XYZ)

Authors
Esaputra Mangarul Rajagukguk, Muslim Efendi Harahap
Corresponding Author
Esaputra Mangarul Rajagukguk
Available Online 28 July 2021.
DOI
https://doi.org/10.2991/aebmr.k.210727.027How to use a DOI?
Keywords
EPC, engineering phase, waste, lean information
Abstract

An engineering, procurement, and construction (EPC) company is challenged to compete in a cut-throat industry with many competitors and slim profit margin. Previous studies revealed that 70% of activities in a construction project are non-value adding which diminish productivity and profitability. As well as at PT. XYZ, the historical results showed that most of projects run by this company ended up in delay and cost overrun. Those previous studies had concluded that the most common factor that leads to project delay and cost overrun was poor design in engineering phase. This paper aims to identify the waste factors affecting cost during the engineering phase of EPC project at PT. XYZ. Lean information framework was utilized to identify and analyze the waste factors. Based on the extensive literature review, it was identified that there were 28 waste factors which can be classified into six groups of wastes. A questionnaire was designed and distributed to 48 participants to be filled out to investigate the dominant waste factors. The factor analysis, correlative test, descriptive and relative index analysis were then carried out. The results showed that the dominant waste factors are waiting for the needed documents, the long and far meetings, waiting for feedback information, waiting for the document approval, outdated information, and producing dummy document. The managerial implications are PT. XYZ should focus on efficient planning, streamlined information flow, pull-based planning activities, continuous improvement, and human resource development.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the Business Innovation and Engineering Conference 2020 (BIEC 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
28 July 2021
ISBN
978-94-6239-409-4
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.210727.027How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Esaputra Mangarul Rajagukguk
AU  - Muslim Efendi Harahap
PY  - 2021
DA  - 2021/07/28
TI  - Analysis of Waste of Cost Factors During Engineering Phase of EPC Project with Lean Thinking (Case Study: PT.XYZ)
BT  - Proceedings of the Business Innovation and Engineering Conference 2020 (BIEC 2020)
PB  - Atlantis Press
SP  - 151
EP  - 157
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210727.027
DO  - https://doi.org/10.2991/aebmr.k.210727.027
ID  - Rajagukguk2021
ER  -