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AT LEADING HEAVY EQUIPMENT DISTRIBUTOR COMPANY IN INDONESIA

By Baladi 2-1952-021

MASTER’S DEGREE in

MASTER OF MECHANICAL ENGINEERING – MANAGEMENT ENGINEERING

FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia

Februari 2021

Revision after Thesis Defense on February 3, 2021

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Baladi STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Baladi

_____________________________________________

Student Date

Approved by:

Dena Hendriana, B.Sc., S.M., Sc.D.

_____________________________________________

Thesis Advisor Date

Edi Sofyan, B.Eng., M.Eng., Ph.D.

_____________________________________________

Thesis Co-Advisor Date

Dr. Maulahikmah Galinium, S.Kom, M.Sc.

__________________________________________

Dean Date

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Baladi ABSTRACT

IMPROVING OF THE MECHANIC QUALIFICATION STANDARD RELATED WITH CUSTOMER SATISFACTION

AT LEADING HEAVY EQUIPMENT DISTRIBUTOR COMPANY IN INDONESIA

By Baladi

Dena Hendriana, B.Sc., S.M., Sc.D., Advisor Edi Sofyan, B.Eng., M.Eng., Ph.D., Co-Advisor

SWISS GERMAN UNIVERSITY

Product support services have an important role in the heavy equipment business because they are long-term relationship builder with customers which affects sales of heavy equipment. In product support services, mechanic has a dominant influence because apart from being a service provider, mechanic is also front liner who shapes customer perceptions regarding product support services. It makes mechanic as a top priority in the company's competency development programs. The main problem is how to align the mechanic development program with customer satisfaction. This study aims to arrange a competency development framework in the form of qualification standard which confirmed with customer satisfaction using the Quality Function Deployment (QFD). The corelation between qualification standard with customer satisfaction is analyzed by regression analysis on the Structural Equation Model (SEM) using the Ωnyq software. The finding of this research is the qualification standard with comprehensive requirements in Technical Operating Competency (TOC), Business Management Competency (BMC) and Behavior Competency (BC) has better and consistent impact to customer satisfaction.

Keywords: Competency Development Program, Customer Satisfaction, Heavy Equipment Business, Mechanic Qualification Standard, Product Support Services

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Baladi

© Copyright 2021 By Baladi All rights reserved

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Baladi DEDICATION

I dedicate this work for my beloved family, especially for my wife Ani Rosiyanti, my daughters, Mazaya Marsya Baladi and Mahdiya Raghda Baladi and my son Jayantaka Wangsa Baladi.

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Baladi ACKNOWLEDGEMENTS

I would like to thank to everyone for help in the writing and research process. Deep appreciation to my advisor Mr. Dena Hendriana, B.Sc., S.M., Sc.D., and my co advisor, Mr. Edi Sofyan, B.Eng., M.Eng., Ph.D., for all guidance and direction.

Especially for Mr. Edhie Sarwono, thank's for the opportunity to continue my study.

Thank you very much to Mr. Rudy Poerwanto and Mr. Agus Suyitno for the opportunity to research and permit data collection and also Mr. Andrie Permadi, Mr.

Yudistira and Miss Desy for the support and assistance in the customer satisfaction survey.

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Baladi TABLE OF CONTENTS

Page

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 7

LIST OF FIGURES ... 9

LIST OF TABLES... 11

CHAPTER 1 - INTRODUCTION ... 12

1.1 Background ... 12

1.1.1 Profile of the Company Studied ... 12

1.1.2 People Management on The Company Studied... 14

1.1.3 People Mechanic Development Program ... 15

1.2 Research Problem ... 18

1.3 Research Objective ... 20

1.4 Significance of Study ... 20

1.5 Research Questions ... 20

1.6 Hypothesis ... 20

CHAPTER 2 - LITERATURE REVIEW ... 21

2.1 Theoretical Perspectives ... 21

2.1.1 Qualification Standard ... 21

2.1.2 Customer Satisfaction ... 23

2.1.3 Quality Function Deployment (QFD) Method ... 24

2.1.4 Correlation Test ... 26

2.2 Previous Studies ... 26

CHAPTER 3 – RESEARCH METHODS ... 29

3.1 Research Methods ... 29

3.2 Research Design ... 31

3.2.1 Improving The Mechanic Qualification Standard ... 31

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Baladi 3.2.2 Analysis Impact of Improvement The Mechanic Qualification Standard

Related to Customer Satisfaction ... 35

3.3 The Existing Mechanic Qualification Standard ... 39

3.4 New Mechanic Qualification Standard Proposed ... 44

3.4.1 Voice of Customer ... 44

3.4.2 QFD Analysis for Develop The New Mechanic Qualification Standard ... 46

3.4.3 The Requirement of New Mechanic Qualification Standard ... 50

CHAPTER 4 – RESULTS AND DISCUSSIONS ... 56

4.1 Implementation the Proposed Qualifications of Mechanic ... 56

4.2 Result of Customer Satisfaction Survey... 60

4.3 Impact Analysis of Implementing the Proposed Mechanic Qualification Standard Related with Customer Satisfaction ... 62

CHAPTER 5 – CONCLUSION AND RECCOMENDATIONS ... 66

5.1 Conclusion ... 66

5.2 Recommendations ... 66

REFERENCES ... 67

CURRICULUM VITAE ... 71

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Baladi LIST OF FIGURES

Figures Page

1. Company Business Performance 2019 ... 14

2. Man Power Distribution at Product Support ... 15

3. Mechanic Development Cost ... 16

4. Man Hours of Mechanic Development ... 16

5. The Relation of Mechanic Competency, Development Program and Qualifications ... 17

6. Mechanic Qualification Level Movement ... 19

7. Service Division’s Customer Satisfaction Index ... 19

8. Improving IQF through Various Pathway ... 22

9. The House of Quality (HoQ) ... 25

10. Research Flowchart and Methods ... 29

11. Adaptation the House of Quality (HoQ) for Define the Qualification of Mechanic ... 32

12. Sample of Assessment Tools Content with Portfolio Adit and Interview Method in BNSP Standard ... 36

13. Mechanic Development Process up to Getting Points and Determining the Grade ... 39

14. Mechanic Qualification Based on Grade and Point groupings, and The Equivalence with Other Positions... 40

15. Distribution of Respondents on the Voice of Customer Survey Related to Mechanic Competency ... 44

16. Importance Rating – Competitiveness Map for Customer Requirement Analysis ... 48

17. Importance Rating – Competitiveness Map for Mechanic Competency ... 49

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Baladi 18. Behavior Competency Score from Questionnaire Results 360 Degrees ... 57 19. Comparison of Questionnaire 360-degree with Expert Assessor Result ... 58 20. Comparison the Distribution of Mechanic Qualification Based on Existing

Qualification with Proposed Qualification ... 59 21. Change of Mechanic Qualification Level from Existing Qualification if New

Qualification Standard is Applied ... 59 22. Distribution of Respondents on the Customer Satisfaction Related to Mechanic

Competency ... 60 23. Comparison the Regression of Mechanic Qualification Standard with Customer

Satisfaction from SEM Result ... 64

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Baladi LIST OF TABLES

Table Page

1. Thesis Research Placement in the Most Related Research ... 28

2. The Competency of Mechanic ... 33

3. Questionnaire Items to Explore Customer Requirements Related to the Performance and Quality of Mechanic ... 34

4. Likert Scale for the Level of Importance According to the Customer ... 34

5. Likert Scale for the Level of Competitiveness According to Customer ... 35

6. Questionnaire Items in BC Mechanic 360 Degrees Assessment... 38

7. Items of Customer Satisfaction Survey... 39

8. Technical Operating Competencies of Mechanic ... 41

9. Result of the Voice of Customer Survey Related to Mechanic Competency ... 45

10. QFD for Mechanic Competency ... 47

11. TOC Standard Requirement and Score ... 52

12. BMC Standard Requirement and Score ... 53

13. BC Standard Requirement and Score ... 55

14. Standard Score for Qualification Level of Mechanic ... 55

15. Summary Result of Customer Satisfaction Survey ... 61

16. Customer Satisfaction Score and Mode of Qualifications in Each Branch and Site Support ... 63

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