- Problem Evaluation
Location of the new Fuel Terminal is one critical factor that determines operational success. Especially in build new fuel terminal, we must consider at least two aspects such as land aspect and sea aspect. The fact is very hard to find the location that has both aspects perfectly like example building project of a New Fuel Terminal in Dumai. But if we get the best one it has already bought or developed, so we have to choose the optimum location.
- Development of feasible alternatives
In the beginning there are three alternative locations in Dumai for build new Fuel Terminal, among others:
- Patra Dok Dumai
- Beside Refinery
- Beside Existing Terminal
Figure 1. Alternative of a New Fuel Terminal Location in Dumai
Our purpose is build a sea feed Terminal so the third alternative which don’t have coastline can be eliminated. So The Team will choose two locations to build new Fuel Terminal to meet minimum operational criteria.
- Development the outcome for each alternative
Choosing the optimum location is decision making strategy. There are some theories in Multi-Attribute Decision Making that can help us to find the optimum (Table 1). In this case we use “Additive Weighting Technique” because base on our team discussion each criteria have different relative importance. With this technique we can find the best (Optimum) location based on calculation between weighted / rank and scoring of the criteria.
Table 1. Multi-Attribute Decision Making Technique
The find the best location by using Additive Weighting Technique, First we have to do is select the criteria of land and sea aspect. Second, we make a weighting of the criteria. Weighting criteria may come from proportional rank of the criteria or expert judgment. Third, we give a number (Likert scale 1-3) in every criteria and time it with the weighting of every criteria. So we can choose the location with the highest score.
Table 2. Additive Weighting Technique Step
- Selection of criteria
Summary result of the weighting criteria each alternative as follow :
Table 3. Weighting Land Aspect Criteria
Table 4. Weighting Sea Aspect Criteria
Base on sum result of Table 3 and Table 4, Patra Dok Dumai location gets the highest score.
- Analysis and comparison of the alternative
Additive weighting calculation show Patra Dok Dumai location gets higher score in sea aspect criteria but lower score in land aspect criteria. It indicate this location is not the best but the optimum alternative that we have.
- Alternative selection
Choose the optimum not the best alternative is not a bad decision. It could be happen as long as they pass minimum requirement of operational success and we already prepare all of the mitigation of the risk.
- Performance monitoring & Post Evaluation Result
Even we already have the chosen alternative base on operational aspect also we have to evaluate the alternative base on economic aspect. Maybe in economic view our alternative not feasible to run so must go back to beginning and do this iteration until we get feasible alternative both on operational and economic aspect.
- Planning Planet. (2017). Multi-Attribute Decision Making. Retrieved from http://www.planningplanet.com/guild/gpccar/managing-change-the-owners-perspective Figures 8-14
- Sullivan, G. W., Wicks, M. E., &Koelling, C. P.(2014). Engineering economy 16th Edition. Chapter 14 – Decision Making Considering Multiattributes., pp.559-608.
- Norris, G. A., & Marshall, H. E. (1995). Multiattribute decision analysis method for evaluating buildings and building systems. National Institute of Standards and Technology.