ENHANCING PRODUCT SUPPORT PERFORMANCE & REVENUE THROUGH LOCALIZED SERVICE POINT : CASE STUDY AT PT XYZ IN TENGGARONG

Abstract

The intention of this study is to examine how localized service infrastructure can improve after-sales performance in remote mining operations. PT XYZ faced a persistent problem at its Tenggarong site, where On-Time In-Full (OTIF) delivery averaged only ~80%—below the 90% target—due to the 140 km distance from the nearest facility. This caused frequent delays, low customer satisfaction, and revenue capture of only ~50% of PT PKSM’s potential parts demand. The objective is to evaluate whether establishing a localized service point can raise OTIF, increase customer satisfaction, and secure full revenue potential. A mixed-method approach was employed, combining descriptive statistics, customer satisfaction surveys, root cause analysis, and a five-year financial feasibility simulation. Tools included DMAIC for problem structuring and financial models (NPV, IRR) for investment evaluation. Findings show OTIF could rise to ~95% (from ~83%), downtime incidents reduced by >70%, and satisfaction scores improved (e.g., delivery timeliness from 2.8 to 4.3 on a 5-point scale). Revenue is projected to grow ~74%, reaching IDR 24 billion annually. Financial analysis confirms feasibility with IRR ~75% and positive NPV; sensitivity scenarios still yield IRRs >50%. In summary, localized support points significantly enhance service reliability, strengthen customer trust, and deliver robust financial returns in remote industrial contexts.