THE USE OF MARKOV CHAIN METHOD IN SCHEDULING MACHINE MAINTENANCE TO MINIMIZE DAMAGE AND MAINTENANCE COST OF MILL MACHINE 303 AT UNIT 3 OF STEEL PIPE INDUSTRY OF INDONESIA LTD Indra Irdianto, Student ID: 07.2014.1.03048 Suhartini, S.T., M-T., Advisor ID: 112070 Department of Industrial Engineering, Faculty of Industrial Technology indrairdianto@gmail.com Abstract Steel Pipe Industry of Indonesia Ltd is a company producing steel pipe and galvanized steel pipe established in 1971 and located at Waru Gunung Village, Karang Pilang District, Surabaya City. This company has some production machines, one of which is mill machine to produce pipe. Big downtime due to frequent machine damage becomes the problem of this company as the cost will not be optimal. Irregular scheduling was the main cause of this problem. : This research aimed at minimizing damage cost of mill machine 303 and planning its maintenance so that the maintenance cost could be reduced. Markov Chain method was employed in this research. It is a method to predict or estimate the future condition just by investigating the past characters. The calculation of this method is not so complicated that can be a solution to plan schedule and maintenance of mill machine 303. The results of calculation by Markov Chain method obtained that the cost difference between PM and CM was categorized light by IDR 372,937,335 (68%). It became IDR 307,124,864 (56%) for medium damage and IDR 471,656,042 (86%) for heavy damage. Optimal maintenance will be got when the company proposes maintenance schedule within 12 days. Keywords: maintenance +heduling, m: maintenance cost, Markov Chain, machine e damage Translated from the original by TTATS Lanphcee SCOR StS 158/Abs/ILC/N2019