This research provides an analysis and evaluation of spare parts inventory management with
respect to the “Make” area of the supply chain framework, with reference to the maintenance
activities of cement production at PT Semen Indonesia Tbk. (PT SI). The aim of this analysis
is to highlight opportunities to reduce excessive maintenance spare stock levels and thus
reduce costs and improve company revenue. The goal of this report is to offer suggestion on
how to utilise industry best practice to reduce the inventory levels of maintenance stock
through the optimisation of maintenance planning an improved inventory management
practices, whilst minimising risk of maintenance downtime.
This research highlights a number of issues that result in excess spare parts stock levels. The
primary reason is cultural, the perception of long lead times and internal mistrust of the ERP
system has led to excessive ordering to create a safety stock buffer to cover perceived further
problems. This is based on limited past experiences and an internal system delay converting
purchase requisitions (PRs) the purchase orders (POs). Investigations also revealed that the
performance of PT SI’s supply chain management and process have not previously been
evaluation to determine the actual performance. An ABC analysis of the data found
approximately 93.6% of spare parts are in the CC category, which means they are considered
as dead stock (or obsolete), slow moving and or insurance stock. This CC category of stock
makes up 63.08% of the total value of all inventory on hand.

Supervisor: Hoetomo Lembito