IMPACT OF OPTIMIZING WARRANTY OPPORTUNITY COST THROUGH DATA DRIVEN POLICY TO ENHANCE FINANCIAL PERFORMANCE IN LEADING HEAVY EQUIPMENT COMPANY

Abstract

This thesis aims to optimize the warranty opportunity cost and enhance the financial performance of a leading heavy equipment company in Indonesia by developing an out-of-warranty policy and a data-driven approach. The thesis uses the DMAIC methodology, which consists of five phases: Define, Measure, Analyze, Improve, and Control. The thesis also employs various tools and techniques, such as focus group discussions, fishbone diagrams, analytical hierarchy process, and design thinking. The thesis proposes a new out-of-warranty policy that provides goodwill service for products that are less than 36 months old and have medium utilization and charges the pro-rate costs. The thesis also develops a prototype of a dashboard that displays the key performance indicators of the warranty process. The thesis concludes that the proposed solution can reduce the warranty costs, increase customer satisfaction, and improve the company's financial performance.