DECISIONS ANALYSIS OF CONTRACTOR SELECTION PT. ERICSSON INDONESIA USING ANALYTICAL HIERARCHY PROCESS METHOD

Abstract

Selection of contractors is one of the important things in the completion of a project activity for the company. Selection of contractors is a multi-criteria problem that includes both quantitative and qualitative factors. One method that can be used for the selection of contractors is the AHP (Analytical Hierarchy Process) method This research is conducted in PT Ericsson Indonesia one of the telecommunication vendors that will develop the partnership relationship with the service provider contractor Installation, troubleshooting and commissioning In this research will be discussed some of the problems are what criteria are the benchmarks of contractor selection at PT Ericsson Indonesia and which criteria are priority in contractor selection, how is the assessment or priority to the contractor for each criterion used as the benchmark of contractor selection, which contractor should be selected for working on telecommunication projects in PT Ericsson Indonesia, and what are the advantages of the AHP method compared to the previous contractor selection The samples of this study are the decision makers and those within the department who know the contractor's performance. sampling knots using judgment sampling because the AHP method requires dependence on a group of experts according to the type of related specialist in decision making.

This research uses AHP method assisted by expert choice software. The results of the assessment of the importance of the criteria in the selection of contractors resulted in the following priority / weighting scales: priority I quality (0.409), priority II price (0.199), priority III capacity (0.148), priority IV Tools (0.077), priority V capability (0.069), priority VI experience (0.037), priority VII finance (0.035) and priority VIII OHS (0.026). From the result of the assessment of the level of alternative interest in the selection of contractors, the ranking scale is as follows: 1st rank of contractor Telaga Pitu (0.467), rank II Synergy contractor (0.322), rank III contractor One Zero (0.211). This study also found that the selection of contractors with AHP method is better than the selection of contractors that already exist in PT.Ericsson Indonesia, because in AHP method there is consistency factor in the assessment, there is a measurement scale to get scores and priorities that can be measured simultaneously where in an existing method, it is not available. Based on the above analysis, the suggestion that can be given is, if the company will develop relationship with the contractor, the company can use AHP method for contractor selection, and the company is select Telaga Pitu contractor as the contractor for the company because the contractor is judging criteria as the contractor with the highest overall value. With this partnership, it is expected to help Ericsson Ericsson company in completing the project target provided by the operator.