OPTIMIZING MAINTENANCE INVENTORY MANAGEMENT TO IMPROVE OPERATIONAL EFFICIENCY, ASSET RELIABILITY AND FINANCIAL PERFORMANCE

Abstract

This study investigates the root causes of slow-moving and non-moving maintenance inventory accumulation and develops an integrated inventory optimization framework to improve inventory turnover while maintaining asset reliability. A convergent mixed-methods case study was conducted at PT Pertamina Patra Niaga–Refinery Operations Directorate (PT PPN), combining semi-structured interviews with cross-functional stakeholders and quantitative inventory analysis using an integrated ABC–VED–FSN classification approach. The findings reveal five interconnected root causes of inventory inefficiency, including the absence of criticality-based inventory segmentation, poor master data quality, inadequate inventory review mechanisms, disposal governance constraints, and conservative procurement planning practices. The study proposes a differentiated inventory treatment strategy integrated with Reliability-Centered Spare Parts (RCSP) principles, enabling organizations to distinguish between strategically justified inventory and inefficient stock accumulation. The proposed framework contributes to the maintenance inventory management literature by integrating inventory value, movement behavior, operational criticality, and reliability considerations within a single decision-making model. Managerially, the framework provides a practical roadmap for improving inventory turnover, reducing provisioning exposure, releasing working capital, and strengthening inventory governance without compromising operational continuity. The results offer valuable insights for refinery operations and other asset-intensive industries facing similar inventory optimization challenges.