Decision Making Analysis in Phase 7 Road to Support A 54 MT Production Plan at PT Kusan Girimulya Wijaya

Abstract

In response to its plan to increase annual coal production to 54 million tons, PT Kusan Girimulya Wijaya (PT KGW) faces operational and logistical challenges related to transport infrastructure. Historically reliant on Phase #4 as the primary road from pit to port, the introduction of new disposal routes from KGU Pit to KGS Void—featuring 25 fleets and three crossing points—has raised concerns over safety, congestion, and productivity loss. This study aimed to identify and evaluate the optimal infrastructure development alternative to support the increased production target. Using a qualitative approach, data were gathered through interviews, field observations, and document analysis. The research employed Kepner-Tregoe Problem Analysis to diagnose root causes and was followed by Focus Group Discussions (FGDs) utilizing Value Focused Thinking (VFT) to formulate alternative road development options: Construct Phase #4, Construct Phase #7, and Construct Phase #7b. These alternatives were assessed using the Simple Multi-Attribute Rating Technique (SMART), incorporating cost (CAPEX and OPEX), safety, operational efficiency, corporate image, and duration as criteria. Results showed Construct Phase #7b as the optimal choice, offering the lowest cost ($308 million) and highest benefit value (79.55). The study demonstrates the importance of strategic mine planning and decision-support methodologies in managing production scale-ups while ensuring cost-effectiveness and operational sustainability. Future research is suggested to evaluate the long-term implementation performance and explore digital monitoring solutions to further enhance resilience in mine transport systems.