Title: ANALYSIS OF OUTSOURCING STRATEGY USE

Author: Idris

Item Type : Thesis (Thesis)

Affiliations: Master of Management Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

 

Abstract

 

In order to achieve efficiency which is believed to be able to avoid bankruptcy, many methods and concepts have been developed. One of them is outsourcing. However, apart from promising a number of strategic benefits, it also brings the consequence of strategic risks. PT Djarum Kudus as one of the largest cigarette companies in Indonesia is required to implement efficiency in order to be able to compete in the global competitive climate. The outsourcing strategy carried out is machine maintenance activities at PT Djarum Kudus. This research uses a qualitative approach with a case study research design at PT. Holy Djarum. The flow of thinking starts from value chain analysis, identification of internal and external activities, to the outsourcing decision making stage. In carrying out the decision making process, there are three models that can be used sequentially, namely: (1) Strategic Vulnerability and Relationship Control Consideration Model, (2) Make or Buy Cost Analysis, and (3) Strategic Sourcing Model. The results of the research show that by considering the factors in the model, PT Djarum Kudus has the potential to establish outsourcing cooperation with PT Boma Bisma Indra (PT BBI) on machine maintenance activities at the facility with the following decisions: (1) Outsourcing strategy for machine maintenance activities at the facility PT Djarum Kudus is carried out with PT Boma Bisma Indra as the service provider; (2) The type of outsourcing carried out is complete outsourcing (buy) of facility machine maintenance activities; (3) Work contract agreements with service providers are carried out within the framework of long term contracts, by creating certain supervisory mechanisms that can balance the level of self-flexibility and the level of supervision required; (4) The optimal contract period is 4 years, after which re-evaluation can be carried out

 

Keywords: OUTSOURCING

 

Sources: http://repository.unair.ac.id/34819/