Abstract :

After-sales service is critical in selling products such as heavy equipment, which require maintenance from mechanics who understand the product. PT. Elang is one of Indonesia’s heavy equipment distributors and provides service support after purchase. The company currently struggles to manage the mechanics for repair requests from customers. Most of the time, the mechanics are already dispatched for regular maintenance, so repair requests are challenging to respond quickly to because of the unpredictable nature of the case. Complaints and bad reviews on after-sales service lead to lost customers and significant revenue loss. This study aims to identify the gap between current and ideal capacity, look for the root causes through the business process review to find where improvement is needed and provide a suitable solution for the company. The qualitative and quantitative methods were used in this study. The qualitative method was through interviews and discussions with the head of service support and the branch operation head to understand the situation and process. The business process related to the issue was then analysed with Business Process Modeling and Notation (BPMN) and the root cause was found using the Current Reality Tree (CRT) method. The quantitative method was through the sales and capacity data collected from the company. The best alternative solution was selected using the Analytic Hierarchy Process (AHP) using XLSTAT. This study showed that the problem happened because of two root causes: an inadequate number of mechanics and no sufficient integrated system to support the information flow through related divisions. Three alternative solutions were proposed based on the root causes. After the AHP calculation and analysis, the results were confirmed with the head of service support, and it was concluded that the solution that could be implemented in the company is providing service points with a priority result of 71.03%. The next alternative is to implement the cloud ERP system with a result of 15.04% and outsource mechanics with a result of 13.93%. With this solution, the company considered a long-term approach with more sustainability and scalability criteria than ease of implementation. The order of criteria priorities are cost, effectiveness, sustainability, scalability, and ease of implementation, with a consecutive result of 47.87%, 24.3%, 12.64%, 6.6%, and 8.59%.

---

Keywords :

After-sales service, Analytic hierarchy process, Capacity Planning, Current Reality Tree, Heavy equipment

---

References :

1. 2024, Mar. Indonesia Construction Equipment Rental Market – Strategic Assessment and Forecast 2024-2029. https://www.arizton.com/market-reports/indonesia-construction-equipment-rental-market
2. Research and Markets. 2024, Feb 7. Indonesia Compact Construction Equipment Market Assessment & Forecast Report 2023-2029. Business Wire. https://www.businesswire.com/news/home/20240207697288/en/Indonesia-Compact-Construction-Equipment-Market-Assessment-Forecast-Report-2023-2029—ResearchAndMarkets.com
3. Setiono, T., Hendriana, D., Nasution, H., Baskoro, G., & Sofyan, E. 2021, December. The Effect of Increasing Mechanic Competence via Competence-Based Curriculum on Product Support Performance in Leading Indonesian Heavy Equipment Manufacturers. In 3rd International Conference on Business and Management of Technology (ICONBMT 2021) (pp. 139-145). Atlantis Press.
4. International Trade Administration. 2024, Jan 9. Import Tariffs. https://www.trade.gov/country-commercial-guides/indonesia-import-tariffs
5. Koesmoeljana, B. 2021, Nov 29. Wide ranging taxation changes in Indonesia under Tax Regulation Harmonization Law. EY. https://www.ey.com/en_id/tax-service/wide-ranging-taxation-changes-in-indonesia-under-tax-regulation-
6. Research and Markets. 2023, Aug 29. Indonesia Construction Equipment Market Report 2023-2029: Commodities Surge Fuels Market Boom – Excavators to Lead. PR Newswire. https://www.prnewswire.com/news-releases/indonesia-construction-equipment-market-report-2023-2029-commodities-surge-fuels-market-boom—excavators-to-lead-301912646.html
7. Wagner, S. M., Ullrich, K. K., & Transchel, S. 2014. The game plan for aligning the organization. Business Horizons, 57(2), 189-201.
8. Muzumdar, M., & Fontanella, J. 2006. The secrets to S&OP success. Supply chain management review, v. 10, no. 3 (Apr. 2006), p. 34-41: ill.
9. Pedroso, C. B., da Silva, A. L., & Tate, W. L. 2016. Sales and Operations Planning (S&OP): Insights from a multi-case study of Brazilian Organizations. International journal of production economics, 182, 213-229.
10. Nicolas, F. N. P., Thomé, A. M. T., & Hellingrath, B. 2021. Usage of information technology and business analytics within sales and operations planning: a systematic literature review. Brazilian Journal of Operations & Production Management, 18(3), 1-15.
11. Tate, W. L., Mollenkopf, D., Stank, T., & Da Silva, A. L. 2015. Integrating supply and demand. MIT sloan management review, 56(4), 16.
12. Slack, N., & Brandon-Jones, A. 2018. Operations and Process Management: Principles and Practice for Strategic Impact, 5th Edition. Pearson Education Limited.
13. Sala, R., Bertoni, M., Pirola, F., & Pezzotta, G. 2021. Data-based decision-making in maintenance service delivery: the D3M framework. Journal of Manufacturing Technology Management, 32(9), 122-141.
14. Ruiz, P. P., Foguem, B. K., & Grabot, B. 2014. Generating knowledge in maintenance from Experience Feedback. Knowledge-Based Systems, 68, 4-20.
15. Kumar, S., Purohit, B. S., Manjrekar, V., Singh, V., & Lad, B. K. 2018. Investigating the value of integrated operations planning: A case-based approach from automotive industry. International Journal of Production Research, 56(22), 6971-6992.
16. Mahlamäki, K., Niemi, A., Jokinen, J., & Borgman, J. (2016). Importance of maintenance data quality in extended warranty simulation. International Journal of COMADEM, 19(1).
17. Haddara, M., & Elragal, A. 2013. ERP lifecycle: a retirement case study. Information Resources Management Journal (IRMJ), 26(1), 1-11.
18. Bjelland, E., & Haddara, M. 2018. Evolution of ERP systems in the cloud: A study on system updates. Systems, 6(2), 22.
19. Mell, P., & Grance, T. 2011. The NIST definition of cloud computing.
20. Yasiukovich, S., & Haddara, M. (2020). Tracing the Clouds. A research taxonomy of cloud-ERP in SMEs. Scandinavian Journal of Information Systems, 32(2), 9.
21. Ginn, J., Stone, M., & Ekinci, Y. 2010. Customer retention management in the recession. Journal of Direct, Data and Digital Marketing Practice, 12, 115-127.
22. Sağlam, M., & El Montaser, S. 2021. The effect of customer relationship marketing in customer retention and customer acquisition. International Journal of Commerce and Finance, 7(1), 191.
23. Khan, R. U., Salamzadeh, Y., Iqbal, Q., & Yang, S. 2020. The impact of customer relationship management and company reputation on customer loyalty: The mediating role of customer satisfaction. Journal of Relationship Marketing, 21(1), 1-26.
24. El-Adly, M. I., & Eid, R. 2016. An empirical study of the relationship between shopping environment, customer perceived value, satisfaction, and loyalty in the UAE malls context. Journal of Retailing and Consumer Services, 31, 217-227.
25. Keshavarz, Y., & Jamshidi, D. 2018. Service quality evaluation and the mediating role of perceived value and customer satisfaction in customer loyalty. International Journal of tourism cities, 4(2), 220-244.
26. Balinado, J. R., Prasetyo, Y. T., Young, M. N., Persada, S. F., Miraja, B. A., & Redi, A. A. N. P. 2021. The effect of service quality on customer satisfaction in an automotive after-sales service. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 116.
27. Shokouhyar, S., Shokoohyar, S., & Safari, S. 2020. Research on the influence of after-sales service quality factors on customer satisfaction. Journal of Retailing and Consumer Services, 56, 102139.
28. Recker, J. 2010. Opportunities and constraints: the current struggle with BPMN. Business Process Management Journal, 16(1), 181-201.
29. Aagesen, G., & Krogstie, J. 2010. Analysis and design of business processes using BPMN. Handbook on Business Process Management 1: Introduction, Methods, and Information Systems, 213-235.
30. Dubani, Z., Soh, B., & Seeling, C. 2010. A novel design framework for business process modelling in automotive industry. In 2010 Fifth IEEE International Symposium on Electronic Design, Test & Applications (pp. 250-255). IEEE.
31. Scheinkopf, L. J. 1999. Thinking for a change: Putting the TOC thinking processes to use. CRC Press.
32. Gallo, S. A., & Maheut, J. 2023. Multi-Criteria Analysis for the Evaluation of Urban Freight Logistics Solutions: A Systematic Literature Review. Mathematics, 11(19), 4089.
33. Wallenius, J., Dyer, J. S., Fishburn, P. C., Steuer, R. E., Zionts, S., & Deb, K. 2008. Multiple criteria decision making, multiattribute utility theory: Recent accomplishments and what lies ahead. Management science, 54(7), 1336-1349.
34. Bargueno, D. R., Salomon, V. A. P., Marins, F. A. S., Palominos, P., & Marrone, L. A. 2021. State of the art review on the analytic hierarchy process and urban mobility. Mathematics, 9(24), 3179.
35. Saaty, T. L. 2001. Fundamentals of decision making and priority theory with the analytic hierarchy process (Vol. 6). RWS publications.
36. Saaty, T. L. 1977. A scaling method for priorities in hierarchical structures. Journal of mathematical psychology, 15(3), 234-281.
37. Saaty, T. L. 1980. The analytic hierarchy process (AHP). The Journal of the Operational Research Society, 41(11), 1073-1076.
38. Wedley, W. C. (1993). Consistency prediction for incomplete AHP matrices. Mathematical and computer modelling, 17(4-5), 151-161.
39. Pande, C. B., Moharir, K. N., Panneerselvam, B., Singh, S. K., Elbeltagi, A., Pham, Q. B., Varade, M. A., & Rajesh, J. 2021. Delineation of groundwater potential zones for sustainable development and planning using analytical hierarchy process (AHP), and MIF techniques. Applied Water Science, 11(12), 186.
40. Thompson, A. A., Gamble, J. E., Peteraf, M. A., Strickland III, A. J. 2020. Crafting and Executing Strategy: The Quest for Competitive Advantage, 22nd Edition. McGraw-Hill Education.
41. Elmonem, M. A.A., Nasr, E. S., & Geith, M. H. 2016. Benefits and challenges of cloud ERP systems–A systematic literature review. Future Computing and Informatics Journal, 1(1-2), 1-9.
42. Haddara, M., Fagerstrøm, A., & Mæland, B. 2015. Cloud ERP systems: Anatomy of adoption factors & attitudes. Journal of Enterprise Resource Planning Studies, 2015, 1-24.
43. Plaza, M., & Rohlf, K. 2008. Learning and performance in ERP implementation projects: A learning-curve model for analyzing and managing consulting costs. International Journal of Production Economics, 115(1), 72-85.
44. Basu, V., & Lederer, A. L. 2011. Agency theory and consultant management in enterprise resource planning systems implementation. ACM SIGMIS Database: the DATABASE for Advances in Information Systems, 42(3), 10-33.
45. Gupta, S., Misra, S. C., Kock, N., & Roubaud, D. 2018. Organizational, technological and extrinsic factors in the implementation of cloud ERP in SMEs. Journal of Organizational Change Management, 31(1), 83-102.
46. Mincsovics, G., Tan, T., & Alp, O. 2009. Integrated capacity and inventory management with capacity acquisition lead times. European Journal of Operational Research, 196(3), 949-958.