IMPROVING GROSS PROFIT THROUGH STRATEGIC SALES AND COST CONTROL FOR NON FULL MAINTENANCE CONTRACTS : A CASE STUDY AT UT TANJUNGREDEB

Abstract

This research aims to improve the Gross Profit Margin (GPM) of the Non-Full Maintenance Contract (NFMC) Service at United Tractors Tanjung Redeb (UT TJR). As of March 2025, revenue achievement only reached 68% of the target, with highly fluctuating monthly gross profit margins—ranging from -20.4% in January to +40% in February and dropping again to -23% in March. These inconsistencies indicate inefficiencies in sales execution and cost control. The study applies the DMAIC (Define, Measure, Analyze, Improve, Control) methodology, a Six Sigma-based approach, to identify root causes and implement structured improvements. Data analysis includes transaction trends, customer behavior, and cost structure, supported by tools such as the Fishbone Diagram and Pareto Analysis. Key findings point to underutilized service capacity, misaligned sales targeting, and irregular cost postings as contributors to GPM instability. Improvement efforts focus on reactivating dormant customer segments, optimizing service transaction volume, as a sales strategy and enhancing cost monitoring practices to increase Gross profit margin. This research contributes practical strategies for improving profitability in service-based industries through better sales management and cost efficiency.