The Influence of Inventory Service Level and Equipment Criticality on Equipment Uptime Through MRO Inventory as an Intervening Variable (Case Study At PT. ABC)

The oil and gas production field of PT ABC located in Central Java has been operating for 10 years with a gas production capacity of 70 MMSCFD, making it one of the largest gas production fields in Indonesia. However, in the past 4 years, there have been fluctuations in production and a decrease in equipment uptime due to breakdowns in the production facility equipment. The results of the problem analysis indicate that the cause of the decrease in equipment uptime is the constraint on the availability of equipment spare parts in MRO (Maintenance, Repair, and Operation) activities, thus it is necessary to identify the factors that can influence equipment uptime. The purpose of this research is to determine (1) the effect of inventory service level on MRO inventory at PT. ABC; (2) the effect of equipment criticality on MRO inventory at PT. ABC; (3) the effect of MRO inventory on equipment uptime; (4) the effect of inventory service level on equipment uptime through MRO inventory at PT. ABC; and (5) the effect of equipment criticality on equipment uptime through MRO inventory at PT. ABC. The research method is quantitative, using secondary data obtained from PT. ABC's reports. Data analysis uses the Structural Equation Model (SEM) operated with SmartPLS software. The results of this study indicate that (1) inventory service level has a significantly positive effect on MRO inventory. A higher service level at PT. ABC indicates a greater likelihood of promptly meeting the material/spare parts needs of the MRO inventory; (2) equipment criticality has a significantly positive impact on the MRO inventory. The implementation of criticality assessment using the SECE method at PT. ABC can focus MRO inventory management on the most important spare parts to minimize equipment downtime and carrying costs; (3) MRO inventory has a significantly positive impact on equipment uptime. The optimal performance of MRO inventory can overcome material shortage constraints; (4) inventory service level has a significantly positive impact on equipment uptime through MRO inventory. A high service level has a greater likelihood of meeting spare parts needs in the MRO inventory, ensuring that MRO activities are not disrupted and can improve equipment uptime; and (5) equipment criticality has a significant positive impact on equipment uptime through MRO inventory. Prioritizing maintenance and parts management with equipment criticality assessment can improve MRO inventory performance and equipment uptime.