The Life Cycle Cost (LCC) Program, Solution For Your Heavy Equipment

This year’s construction business in Indonesia has seen a significant development, driven by rapid growth in the property market, the private investment, and the government spending for acceleration projects of the infrastructure development. This year, the government is targeting economic growth of 5.1% and the construction sector is one of the three priority driving factors The construction sector plays an important role in a country’s economy as the sector affects most of the country’s economic sectors and is a significant contributor for the infrastructure development, providing physical foundation on which the development and betterment of the public welfare can be realized. As known, within the 2015-2019 period, the government is targeting development of 15 new airports, 24 sea ports, 2,650-km national roads, 1,000-km toll roads, 3,258-km railways, and 60 roll-on/roll- off (ro-ro) vessels. To support development of these government infrastructures, the heavy equipment is needed and PT United Tractors Tbk (UT), Indonesia’s biggest market share holder in heavy equipment, has all types of the heavy equipment needed for any infrastructure project.

Taking into account that such an investment is not of a small amount of resources, UT not only is offering a quality product for the construction sector but also presenting solutions for the business partner in optimizing the heavy equipment’s performance through the Life Cycle Cost (LCC) concept.

Components of Life Cycle Cost
The Life Cycle Cost (LCC) is a concept for analyzing the most effective costs in a heavy equipment over a certain period of time (Life Cycle), from consideration for the purchase price, financing, operational costs in particular the fuel, repair and maintenance, operator(s), and up to resale value of a heavy equipment. Basic principle of the LCC is to minimize all costs, to improve productivity, and increase the resale value of the heavy equipment.

1. Price
   UT is offering a very competitive investment with all of superiority and quality of a heavy equipment (value for money).
2. Financing
   In cooperation with a well-known financing institution, UT is providing financing scheme that is tailored specifically to meet the business partner’s need.
3. Fuels
   The fuel is the component with a quite significant portion in a heavy equipment’s operation. With application of the best technology in each product, UT is committed only to giving a resilient, reliable, and fuel-efficient heavy equipment.
4. Repair and Maintenance
   UT not only acts as agent for quality heavy equipment but also offers excellent service through its after-sale service known as UT Guaranteed Product Support (UT-GPS). In addition to that, with the biggest number of the number of heavy equipment products across the country, highly-skilled mechanics and spare parts are easily accessed by the business partner in all UT’s distribution networks all over Indonesia.
5. Resale Value
   UT is the agent for superior and well-known products with high resale value. UT also owns a maintenance program for the heavy equipment, leaving the business partner’s worry behind for their needs of mechanics and spare-parts in a certain time. The program, known as Preventive Maintenance Package (PMP), an option at the time of purchase, is offering a guaranteed quality of the used equipment at the time the trade-in is carried out. A trade-in program may be offered by UT for the business partner’s fleet revitalization.

Low Maintenance Cost and Maintenance
Through UT’s Maintenance Strategy in the LCC, especially the PMP program, quality of the heavyequipment is more guaranteed and this will directly add to its resale value. In addition to that, UT also offers a spare-part package like Matsumura Parts (Matsumura stands for Komatsu Murah dan Berkualitas or literally means Affordable and High Quality) as solution for optimizing the replacement time during overhaul. For UT’s business partner in the construction sector, this is an added value program as it will minimize spare-part costs as packages of inner parts suited to their overhaul needs are available at a more competitive price and timely availability. With the component’s longer economic use, it simply and directly reduces maintenance expense.

UT is offering not only programs like the Fuel Reduction module for low fuel consumption but also the highly skilled manpower, providing the application engineer, the technical officer, and the instructor as the partner in evaluating and giving advice for the working efficiency that affects fuel consumption and maintenance of a heavy equipment.

The LCC concept would not be complete if addressing only costs for the heavy equipment since the productivity of the heavy equipment itself is an essential issue for UT business partner. By providing a high quality product, supported by a variety of the right product-support programs, UT supports creation of high productivity for its business partner’s operation. All in all, the low total cost, the high resale value, and the high productivity will make UT’s heavy equipment a high benefit product.

After-sales Service
UT, being a well-known heavy equipment distributor, certainly pays attention not only to the quality of products but also to the after-sale known as UT Guaranteed Product Support (UT GPS) that offers certainty in spare parts delivery, mechanics, and repair time should a problem arise. In addition, the UT GPS service is supported by operational networks with 20 branch offices, 22 site supports, 10 representative offices, and 14 mining offices.