Business Process Reengineering of the Procurement Process at PT PAR an Oil and Gas Company

The procurement sub-department at PT PAR, an Indonesian oil and gas company, faced significant operational inefficiencies, causing project delays and a 10% budget overrun. An analysis of its auction-based workflow revealed that the performance decrease was due to numerous non-value-added activities. This paper details a Business Process Reengineering (BPR) initiative aimed at enhancing service performance. Through modeling and simulation with Bizagi Modeler, and while adhering to company regulations, two critical activities were modified. This targeted redesign successfully increased the procurement success rate by 29% and reduced the maximum processing time by 8.3% working days. The study concludes by recommending the adoption of the new process, supported by four key actions: minimizing waste activities, realigning the organizational structure, integrating software, and establishing a new standard operating procedure (SOP).