BUILDING A BETTER IMAGE OF PT.

PLN (Persero)
BY ENHANCING THE RELIABILITY OF
POWER GENERATION UNITS













By:
Bakhtiar Indra Kurniawan NIP: 840932160-I
Handariansah NIP: 851033093-I
Indah Hanika Sari NIP: 840933172-I







PT. INDONESIA POWER
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BUILDING A BETTER IMAGE OF PT. PLN (Persero)
BY ENHANCING THE RELIABILITY OF
POWER GENERATION UNITS

Bakhtiar Indra K / (840932160I); Handariansah/ (851033093I); Indah Hanika Sari/ (840933172I)
PT. INDONESIA POWER
UBP SEMARANG


EXECUTIVE SUMMARY


PT. PLN (Persero) as a state owned company which operates in generating, transmitting and
distributing electricity to Indonesian citizen needs a good image to gain customers trust. The main
issues to build the image are to avoid rolling blackout and quality disturbance, particularly in the
power generating system as the upstream of its business line. The first step to build the image, starts
from ensuring the availability of power generation units because when the source is not available then
it will be harder to build the image at the transmission and distribution sides. After the availability of
electricity production is achieved, then the next step is to ensure the reliability in another section
such as transmission and distribution. If all steps have been fulfilled, rolling blackout and quality
disturbance will be eliminated so that the image of PT. PLN (Persero) will be better. PT. Indonesia
Power as subsidiary of PT. PLN (Persero) company which has a main target to produce electricity
must support its holding company by ensuring the first step in building the image.
PT. Indonesia Power needs strategic plans to create a good performance power plants. In PT.
Indonesia Power, asset management is one of the strategic programs that has been stated in the long
term strategic planning and it is the best practice to reach a good power plant management
performance. Asset management implementation will enhance the generating units operation and
maintenance performance.
Reliability management is one of the six pillars in asset management which holds important
roles in maintaining the availability and reliability of the power plants as one of the important asset in
the company. Reliability improvement management can be divided into three main parts, including:
task identification, task execution and task measurement. By continously improving these three parts
in reliability management, it will minimize the probability of equipment failures. Furthermore, the
power plant reliability and availability can be achieved. In the end, reliable power generating units as
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the only way to generate electricity will become the basic foundation to support and enhance the
image of PT. PLN (Persero).

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CHAPTER I
INTRODUCTION


The word of Image shows reputation and public perception of something to people. Image
of a company is crucial, because it gains peoples trust. The better the image is, the easier people will
trust and rely on a product or a company. On the contrary, bad image will cause destruction for
costumers trust and lead dissatisfaction toward a company.
PT. PLN (Persero) as a state-owned company which operates in generating, transmitting and
distributing electricity to Indonesian also needs a good image to satisfy stakeholders of the company.
A good image is a strong point that leads the company to become a World Class Company. In an
effort to build a trustworthy image, PT. PLN (Persero) has 2 (two) concerns. First, it has to ensure the
amount of electricity supply based on demand. Failing to comply the demands will increase
possibility of rolling blackout. Second, it should ensure the quality of electricity supply according to
the standards. A good quality of electricity is stability in frequency and voltage. The unstable
frequency and voltage will influence all of the system including generating system, transmission
system and distributing system. In generating and transmission system, unstable electricity quality
may increase blackout potential to the grid system. In distribution system, unstable electricity quality
may cause damage to industrial and household electronic equipments.
Based on these concerns, PT. Indonesia Power as a subsidiary of PT. PLN (Persero) has
responsibility to support its image. To build the image, the first step would be providing reliable
power generating units, because the electricity is the output of this process. By providing a good
quality of electricity production and fulfilling the reliability of the power generation unit, then the
concern can be moved to make reliable electricity transmission and distribution. For that reason, PT.
Indonesia Power has implemented asset management as noted as one of the strategic programs that
has been stated in the long term strategic planning and it is the best practice to get a good power plant
management performance.






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CHAPTER II
RELIABILITY IMPROVEMENT MANAGEMENT

2.1 Introduction to Asset Management
The reliability of electrical supply can be reached if the power plants management runs well.
Power plants are the main sources of electricity supply for PT. Indonesia Power that should provide
electricity power due to the users demand. When the production does not fulfill the demands, the
rolling blackout and quality disturbance will happen. Then the dissatisfaction and negative public
perception occur.
By doing so, developing public satisfaction towards PT. Indonesia Power is ensure the
reliability of electricity production. Here, a good business processes to increase company
performances are needed. There is a power plant management which is based on an asset
management; it is one of the methods that can be used to increase power plant performance as the
main source electricity supply to users. The method consists on several programs of power plant
management asset to be implemented, as follows:

1. Developing availability of power plant through:
Work Planning & Control Management
Work Planning and control management is focusing on the optimization of
maintenance planning (daily, weekly, monthly and annual) to insure that all of the
working programs are planned, implemented, evaluated, controlled, and improved based
on good management rules.
Outage Management
Outage Management is a process to organize all the maintenance tasks. It is needed
by power plant when it comes out from electricity transmission system that is planned.
Synergies and synchronized process in outage management involve activities such as:
planning, preparation, controlling, monitoring, evaluating and continuous action on
maintenance outage management programs.
Material and Fuel Managements
Material and fuel management is a part of supply chain management that must be
imp\lemented effectively. The implementation of material and fuel management includes
maintenance control planning, inventory management, warehouse and material
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purchasing. They are integrated on the information technology system in order to achieve
four rights: right in quantity, quality, time and price.

2. Enhancing Reliability of Power Plant
Reliability Management
Reliability management is activity to ensure all equipments can be operated
continuously to their limit and avoid equipments failure. Above all that, successful
reliability management implementation will reduce operational and maintenance cost.
Operation Management
Operation Management is activity to guarantee power plants to operate efficiently
and continuously according to the target and contract agreement such as; fulfillment of
security, health, safety and environment standards. Operation management includes the
following activities such as:
o Perform operational planning based on system needs and availability of power plants
o Perform the operation, setting the working hours of operation and equipment tests
o Human resources optimizing and first line maintenance
o Load optimizing and operation performance
o Manage fuel according to periodical operation needs
o Operate the power plant on emergency situation
o Perform communication and report from power production and readiness of power
plant for both P3B and PT. Indonesia Power head office.
3. Efficiency Management
Management Efficiency is an activity to manage power plants by doing planning,
analysis, simulation and optimization tools to work at its optimum point and ensure the power
plants operate efficiently. Efficiency Management includes the following activities:
Operational data monitoring
Analysis, simulation, and optimization
Cost and benefits analysis
Improvements recommendation
Perform continuous improvement
Evaluation

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4. Integrated Management System
Integrated Management System (IMS) is a management system that integrates all the
business components into one coherent system, so that the management may complete
activities and organizational problems in the most efficient way, in order to achieve the
vision, mission and improve the image of the organization. In this context, the integrated
system is the Quality Management System (QMS) based on ISO 9001, Environmental
Management System (EMS) based on ISO 14001 and Safety Management System and Health
(SMK3) based on OHSAS 18001. The purpose of each integrated system is as follows:
1. By keeping the clauses of ISO 9001 will manifest the purpose of organization to
obtain customer satisfaction.
2. By keeping the clauses of ISO 14001 will manifest the corporate social responsibility
of the organization.
3. By keeping the clauses of OHSAS 18001 will manifest the purpose of organization to
give protection to all employees in the working area.


Figure 1: Power generation units management process and mechanism

From the figure above, we can see the importance of all pillars in asset management. The
pillars are Work Planning And Control (WPC), Outage, Material and Fuel, Operation, Reliability and
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Efficiency Management. All of the pillars are supported by Integrated Management System,
Integrated Information System and Human & Organization Competency. To make it into a business
process, Risk Management should be implemented to analyze all risks probabilities from all
components. All of the processes from each pillar will create a business process.
Strategic generating plan describes the targets and strategies for the business process. When
the business process is implemented, certain value of performance index can be achieved. This
performance index will be measured and evaluated to see the lag between performance and the
programs. If the performance index falls below the targets, continuous improvement is needed to push
performance index up. Continuous improvement covers physical, knowledge, and human asset
optimization. Furthermore, continuous improvement can be applied to generation plan if the
performance index reached the target.

2.2 Reliability Improvement Management Program
Two main factors that determine the availability of power plants are reliability and
maintainability. In this case, in order to improve reliability of power generation particularly and the
performance generally, reliability and operation managements are required.
Reliability management Improvement program is an activity to prevent failures of the
equipment when operated, not having derating, with the optimum cost, by minimizing or eliminating
the cause of failure, and perform optimization process (scheme Figure below) by assessment to all
equipments (baseline) and prioritization of equipment or System Equipment Reliability
Prioritization (SERP). Results of both processes are used as a reference for determining the priority
of equipment. They require an investigation using Failure Mode Effect Analysis (FMEA) and Root
Cause Failure Analysis (RCFA). Action plans or Failure Defense Task (FDT) and/or
recommendations are the output from the investigation.

Figure 2: Reliability improvement management diagram
Engineering Division
RENDALHAR Division
Executor: Operator/Maintenance
Division
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Action plans and recommendations from FMEA and RCFA made by engineering division
will be given to the Planning and Control Maintenance division (RENDALHAR) for planning and
scheduling of its execution time. The examples of the recommendation or action plan are PDM
scheduling, preventive maintenance, modifications, etc. After the execution of the recommendation or
the action plan is done, the next step is to evaluate or measure the effectiveness of the result. They are
evaluated and measured based on equipment failures. If the results of the recommendation didnt
eliminate equipment failure means the recommendation is less effective. Then the process of
reliability improvement would start again from SERP process. This is continuous cycle of
improvement. Continuous improvement process will establish a new baseline against the actual
conditions of the power plants. Finally, doing the tasks execution of continuous improvement as a
part of reliability management process can minimize the failures. By doing so, power plant reliability
can be achieved.






















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CHAPTER III
CONCLUSION


Availability of power generation units can be achieved if reliability and maintainability
(maintenance rate) are well guarded. This can be obtained through the implementation of power
generation based on asset management business process mechanism, involves: WPC, Outage
Management, Materials and Fuel Management, Reliability Management, Operation Management,
Efficiency Management, Integrated Management System, Integrated Information and Risk
Management.
By carrying out the process of continuous improvement in reliability management, it will
minimize the failure of the generating equipment so that reliability can be achieved. Reliability of the
generating equipment will enhance the readiness and availability of electricity production for the
community. The availability of electrical power ultimately can reduce the interference from the
electrical power supply for the fulfillment of production according to demand. When PT. Indonesia
Power have reached excelent reliability of its generating units, as the upstream of electricity
production, it could support its holding company, PT. PLN (Persero) to enhance its image in the eyes
of public.

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REFERENCE


Satuan Manajemen Resiko PT. PLN (Persero) (2009). Panduan Tata Kelola dan Identifikasi Risiko
Bidang Pembangkitan. Jakarta: PT. PLN (Persero)
Zio, E. (2007). An Introduction to The Basics of Reliability and Risk Analysis. Singapore: World
Scientific Publishing Co. Pte. Ltd.