- Problem Definition
I had discussion with my manager concerning the selection of crew transport strategy to our site from Ternate. Two options available where 1st option is using speed boat combined with commercial vehicle in 5 hours travel time, and 2nd option with commercial aircraft straight to site in 30 minutes travel time. The consequence of option two is investment cost for upgrading existing airport to 2C ICAO airport class.
Figure 1 Option 1 and Option 2 Time Travel
Figure 2 Existing Airport
- Identify the Feasible Alternative
As explained above, the feasible options for crew transport from Ternate to site are option one using land transport and option two with aircraft.
- Development of the Outcome for Alternative
I use data input as present in Figure 3 and the BC ratio calculation result &  in Figure 4 hereinafter:
Figure 3 Data Input
Figure 4 BC Calculations for Available Options
- Selection Criteria
I have to give input to my manager in order for him to select the best option between land transport and air transport using BC ratio.
- Analysis and Comparison of the Alternative
Main drivers for the calculation are the initial investment for upgrading existing airport, saving or loss time per year after quantified it in amount of money based on plant production income per hour, and the transport cost for crew. The lower BC ratio of option one caused by loss time per year input as additional cost while this cost treated as benefit in option two. Also with BC ratio > 1 for option two indicated that we could go for project execution of this option if we select this option.
- Selection of the Preferred Alternative
Based on the calculation, I will recommend my manager to select option two for crew transport strategy from Ternate to our site.
- Performance Monitoring and the Post Evaluation of Result
This calculation doesn’t incorporate any events that cause delay for time travel especially for the selected option two (the BC ratio is not so high than one). In my calculation if the travel time is one hour then BC ratio is close to one and for 1.5 hours is less than one. On top of that I also should recommend the stand by crew strategy because plant processing income is the key factor for the Company.
WBN. (2012). Project Data for Airport Upgrading, Indonesia.
Kodoatie, Robert J. (1997). Analisis Ekonomi Teknik. Yogyakarta, Indonesia: Andi Offset.
Sullivan, William G., Wicks, Elin M., & C.Patrick, Koelling. (2012), Engineering Economy 15th Edition (pp. 428-443). New Jersey, United States: Prentice Hall.