Analysis and Design of Information System To

Develop Budget Plan of Work Program & Budget in

Oil and Gas Production Sharing Contract
Contractor
Case Study: PT X, PSC Contractor
 Abstract—The objective of this qualitative study is to perform
analysis and analysis and design of information system to
develop budget planning of Work Program & Budget oil and gas
production sharing contract contractor using the Framework for
the Application of System Technique (FAST) method. This study
concluded that information system design to develop budget plan
can support data collecting and processing in order to improve
the budget development efficiency and budget quality.
Keywords— budget, analysis and design of information
system, FAST method
will perform the system analysis and conceptual design
stages using Framework for the Application of System
Thinking (FAST) method that integrates several approaches
that applied to prioritize the problems and the system that to
be developed (Whitten dan Bentley, 2007). As illustrated in
Fig. 1, FAST method consists of eight (8) stages, that are
scope definition, problem analysis, requirement analysis,
logical design, decision analysis, physical design and
integration, constructing and testing, and installation and
delivery.

I. INTRODUCTION
Oil and gas industry is one of the contributors to
Indonesia national income. The industry is grouped into two
activities, that are upstream activities which conducts
exploration and production and downstream activities which
conduct processing, transportation and marketing.
The management of upstream oil and gas business
activities involves three parties, that are government as the
owner of natural resources, SKK Migas as the organization
who manage the activities, and Production Sharing Contract
(PSC) contractor as the operator. One of the tools used in the
implementation of upstream activities is Work Program and
Budget (WP&B) that is short-term plan which consists of
detailed annual work plan and budget. The WP&B that has
Figure 1 Process of FAST Methodology System Development
been approved by SKK Migas become the company's
guideline in carrying out activities for a budget year.
The WP&B development process in PT X, one of oil and
gas PSC contractor, is currently performed manually and
coordinated by Budget sub-section of Finance department,
which consists of one employee and one team lead. The
manual process requires a lot of time and might result in an
inaccurate budget plan.
Based on this background, the problems that will be
discussed in this study is to analyze and design the
information system to support the preparation of WP&B,
especially the budget plan, so that it can reduce manual
processes in data collection and processing, and can improve
the budget plan quality.
The objective of this study is to produce analysis and
design of information system to develop budget plan of
WP&B that is able to simplify data collection, reduce manual
processes in data processing, simplify coordination between
related parties, and facilitate access to budget information

II. THEORETICAL REVIEW

Budget planning is an important part of the company's
financial planning, to plan and allocate financial resources to
recipient and company activities in a period of time (Turban,
et al. 2008, 276). Information system is a system that
collects, processes, stores, analyzes, and disseminates
information for specific purposes, and includes people,
procedures, physical facilities, and operate in an
environment. Computer-based information system is
information system that uses computers to do some or all of
its tasks (Turban, et al. 2008, 16).
System development life cycle, consists of 5 (five)
stages, namely system analysis, conceptual design, physical
design, implementation and conversion, and operations and
maintenance (Romney and Steinbart 2012, 601). This study
 Conceptual design consists of process modeling and data
modeling. Process modeling is a technique to organize and
document the processes of a system. This study is using Data
Flow Diagram (DFD), a logic model of data and process, that
describe the data source, data direction, data flows,
transformation process, and data stores (Romney dan
Steinbart, 2012). Data modeling is a technique to define
business requirements for a database and to organize and
document data. This study is using Entity Relationship
Diagram (ERD), a data model that uses notations to describe
data in the context of the entity and the relationships
described by the data.
of problems, opportunities, and directives is written in Table
I.
TABLE I. PROBLEMS, OPPORTUNITIES AND DIRECTIVES
Problems Budget preparing process takes a long time
because it is done manually using excel files
Information is spread in many excel files
without integrity guarantee
Errors are very likely to occur
Opportunities Need to arrange a budget in a short time
Directives Management direction to improve the budget
preparation process, to support Management

III. RESEARCH METHOD in decision making

This study is conducted using qualitative research

methods, through a case study. Qualitative approach is a Second stage is problems analysis, to study and
method of research that was taken based on a particular understand problems, opportunities, and direction as a whole
phenomenon or describes the events that occur and provides so that system analysis can be performed well. List of current
solutions through recommendations which made based on problems with expected improvements are compiled using
deep contextual analysis, experiences based on personal performance, information, economy, control, efficiency, and
opinion and intuition related to the phenomenon or event service (PIECES) framework (Whitten and Bentley, 2007) is
(Sekaran, 2003). written in Table 2.
Data sources used in this study are primary and
secondary data. Primary data are information and facts that TABLE II. PROBLEMS AND EXPECTED IMPROVEMENTS
are related and relevant directly in the research. Primary data No Problems Expected PIECES
was obtained from interviews with the parties involved in
Improvements Category
budgeting process and through documents and reports
1 Budget preparing Data needed to compile Performance
currently used by the company. Secondary data is all
information and facts that are indirectly related and relevant process takes a long the budget is entered
in this study. Secondary data was obtained through literature time, because it is into the information
study and company guidance in budgeting process to get done manually system to speed up the
overview of the problems.
budget compiler in
obtaining data
IV. DISCUSSION AND RESULTS 2 Data is collected in Facilitate users to input Information
PT X is a Production Sharing Contract contractor who excel files, so there data into the system,
has the right to manage a block or working area to carry out
is risks of data facilitate users to
oil and gas exploration and exploitation activities in
Indonesia. Budget plan preparation in PT X involves many integrity conduct data review
parties. In this study, the information system is analyzed and and approval processes
designed to support the development of revenue budget, 3 Budgeting process Shorten time in data Economy
personnel budget, departmental budget, project budget, and takes a long time collection and
company budget. compilation process
PT X is currently using a simple budget preparation 4 Difficult to monitor Data collection is done Control
system. Budget preparation process is conducted manually the data collection through system so that
using Microsoft Excel. Budget data is obtained from data and requires manual it is easily monitored
provider in the form of Microsoft Excel files, compiled and
coordination by the budget officer
processed into a company budget using Microsoft Excel.
This system is very vulnerable to errors because there is no between budget
guarantee data correctness and is very dependent on budget officers and data
officer accuracy. provider
Stages in FAST analysis method (Whitten and Bentley, 5 Budgeting takes a Budgeting can be done Efficiency
2007) are scope definition, problems analysis, requirements long time and automatically using the
analysis, logical design, decision analysis, physical design budget officer system
and integration, construction and testing, and installation and accuracy, because it
delivery. In this study, the stages that will be carried out are
scope definition, problems analysis, requirements analysis, is done manually
6 Difficult to map the Facilitate mapping Efficiency
and logical design.
company budget to between budget data
First stage in analysis and design information system is to
the company's chart and company's chart of
determine the scope of the system to be developed, by
determining the problems, opportunities and directives. List of accounts accounts
No Problems Expected PIECES
Improvements Category
7 Report preparation Report is generated by Service
takes a long time system, using data
and is often stored in the system
inaccurate because
of lack of data
integrity

The third stage is requirements analysis to analyze

system specification that can give solution for problems
encountered. From described problems above, the system to
be developed must able to do the following: simplify the data
collecting process, facilitate budget data review and approval
process, facilitate coordination process between relevant
parties, simplify the budget compiling process into company
budget and reports with specified formats, simplify budget
data mapping process into company chart of accounts.
This study is using use case model to describe system
functional requirements. Steps taken in developing use case
model are identify business actors, identify business
requirements use case, prepare use case diagram, and prepare
use case narration. Example of a use case diagram is shown
in Fig. 2.
Figure 3 Data Context Model
After developing Context Data Model, data modeling
process is continued by developing key-based data model
and fully attributed data model. Key-based data model
describes the key identity that relates between entities and
Fully Attributed Data Model describes entities and their
attributes.
Second step in logical design is process modeling using
Data Flow Diagrams (DFD) to show the input, process, and
output of the system. First step in process modeling is to
develop context data flow diagram to describe the system
scope, as depicted in Fig. 4. External agents specified in this
study is written in Table 3.

TABLE III. EXTERNAL AGENTS

No External Description
Agent
1 Budget - Prepares master data needed in the
Officer budget process, namely master data cost
center, internal assumptions, expenditure
type, gl account
- Compiles budget data and develops
budget report
- Maps budget data into the chart of the
Figure 2 Use case Budget System company's account so it can be used in
company’s accounting system
This fourth stage in analysis and design information 2 Commercial Responsible to prepare revenue budget by
system is logical design which consist of process modeling, providing sales target quantity and product
data modeling, and user interface modeling. price
3 Human Provides data to construct personnel budget:
First step in logical design is data modeling, a tecnique to
define the database system requirements. In this study data Resource salary, benefit, training
modeling was done using entity relationship diagram (ERD). Department
Fig. 3 shows data context model to show simple relationships 4 Departemen Provides data to construct departmental
between entities for the budget system. budget: business trip, business meal,
professional membership
5 BOD Receives and requires budget reports to assist
in decision making
6 PIC Project Provides data to construct project budget
 Figure 4 Context Data Flow Diagram
Second step in process modeling is to develop Functional
Decomposition Diagram (FDD) to describe system
components and their functions. This study classified budget
system into five sub-systems that are 1.0 Revenue Budget,
2.0 Personnel Budget, 3.0 Departmental Budget, 4.0 Project
Budget, and 5.0 Company Budget. Every sub-system has its
own sub-system that detailed up to the smallest sub-system
call event as descripbed in Event Decomposition Diagram
(EDD). Fig. 4 and Fig. 5 show FDD and EDD for the budget
system.
Figure 5 Functional Decomposition Diagram
Figure 6 Event Decomposition Diagram
Last step in process modeling is to create Event Diagram
using Event Decomposition Diagram as a reference. Event
diagrams illustrate what inputs are needed in an event, the
output produced, and the data store used. Example of event
diagram is shown in Fig. 6.
Figure 7 Event Diagram for Company Budget
Last step in process modeling is to develop user interface
design, to create an interface design that is efficient, easy to
use, and easily understood by users. The budget system user
interface is divided into five large menus according to the
sub-system defined on Functional Decomposition Diagrams,
as depicted in Fig. 8.
Figure 8 User interface design for budget system
V. CONCLUSION
Based on the analysis and discussion results, FAST
method provides agile modeling of system development
because it can be used to support the development of
information systems quickly, perform a structured system
analysis, support utilization of information technology, and
perform object-oriented analysis and design.
An information system to develop budget plan can be
very useful in budget plan preparation because it can:
provide convenience for parties involved in the budget
preparation process, minimize errors in compiling data,
minimize errors that caused by inaccurate data, facilitate
coordination in the data collection process, facilitate budget
compilation process into company budget report either by
using SKK Migas format or using company chart of
accounts, and facilitate relevant parties to to access
information and budget reports.
 Limitations faced by the author in conducting this study
at PT X are the study does not cover all the budget
preparation conducted in the company. One of budget
preparation that is excluded is the preparation of operational
budget because currently the process is too complicated and
requires a lot of manual coordination between the KKKS and
SKK Migas. Other limitation is the study did not perform all
the stages in FAST method because of time limitation in
completing this study.

VI. SUGGESTION
Suggestions for further research for analysis and design
information system to develop budget plan at PT X is to
continue the information system analysis and design by
performing next stages in FAST method until it reaches the
system testing stage. Other suggestion is to conduct further
research by including the process of establishing operational
budget in the budget system to provide an information
system that support whole budget plan preparation process.

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