Customer Centricity is about how company optimising and aligning its resources, processes and structure to effectively meet the needs of customers. The leaders must also provide strategic direction that can be applied and ultimately lead the company to move forward in retaining existing customers and attracting new customers. This is very crucial as customers are now more relying their experiences across all departments in the company and not just the product or services that they receive from the company.
Sarandi Karya Nugraha , a leading hospital equipment manufacturer in Indonesia, has proven to be reliable a manufacturer of high quality equipment. The company has embarked on many productivity initiatives such as the productivity-gain sharing system that is able to promote better environment workplace . This is one way of retaining its employees who have worked with the company since 1997.
Wellmade Motors & Development Corporation, with over 25 years experienced in metal working has made a number of diversifications including precision technologies for the engineering services in machining/fabrication/welding of engine and metal component parts. One of the factors in retaining highly motivated employees is by providing reward to compensate employees for their efforts and contributions. The productivity-gain sharing is an end result of a well-planned productivity programme, where employees can best excel within a conducive working environment supported by the employer.
Composite material is one of important elements in manufacturing of aircraft components. Carbon Fibre Reinforced Polymer (CFRP) has been the main type of composite material used in CTRM. With the introduction of new ply cutting process, CTRM has benefited over RM4 million of cost saving and reduces material waste to landfill by two tons annually.
It was further discovered that the department at Proton only achieved 57.2 and 40 percent of front end assembly and clearance fitting accuracy fender with hood rates respectively. However, these performances did not match with the department KPIs of 80 and 85 percent respectively. A rework time of 120 seconds per car was in need before it can be sent to the warehouse. The implementation of the ICC initiatives provides a better solution in the reduction of defects during the fender and hood installation at the body assembly line. This has brought to an improvement of 87.5 percent and 80 percent respectively. This achievement has led Proton to save a cost of RM57,160 per year.
Sharp Manufacturing Corporation (M) Sdn Bhd (SMM) has targeted to increase daily production efficiency as well as to reduce loss time during auto process and working time cost. The implication of adding conveyor between loader and magazine change at AI checker process has reduced the lead time from 12,625 minutes to 10,605 minutes. Previously, this process needed about 25 days in producing the targeted value of 42,000 pieces per month. After the implementation of ICC, only 21 days are required to produce 44,500 pieces per month.
Innovative and Creative Circle brought tremendous benefits in overcoming the issue of high reject cases of damaged frame during the molding process. This ICC project has decreased damaged frame from an average of 9,740 units to 3,907 units, amounting to a 59% improvement.
The ICC project successfully achieved its target of 30 percent reduction in twin relay customer claims and improved process spoilage on wire defect reject. After the ICC project, the twin relay customer claim reduced to 0.702 ppm as compared to 2.755 ppm previously. The wire defect quantity also has reduced from 12,002 pieces to 1,916 pieces which amounting to a saving of RM5,864 per month.
The modification of single tray holder, double cylinder and unfit carrier have resulted an increase in productive time rate from 55.9 percent to 78.2 percent, amounting to a 39 percent improvement in productive time. Not only that, this improvement has also increased the total output production. Previously, it was recorded that the total output was 336,000 pieces, and has simultaneously increased to 459,000 pieces per week.
An ICC team at Amkor aimed to reduce 70 percent of high defect rate at DD2B production line which usually achieved a performance of 97.8 percent. By incorporating TRIZ invention solutions into the existing processes, the team has managed to reduce the defects by 70 percent improvement. Not only that, this has brought a positive impact to the marking defect rate as it has reduced to 0.35 percent from 1.16 percent previously.
Kulim (M) Berhad managed to resolve the problem of faulty Sterilised Fresh Fruit Bunches (FFB) Conveyor (SFC). SFC which appeared to play a crucial role in the daily operations benefitted from the approaches implemented through Innovative and Creative Circle. Overall, three improvements were done accordingly. To start of with, the installation of inverter took place, a newer position of SFC gear box were installed and finally application of bypass system. Now, there aren’t any cases of SFC break downs and this indeed brought a boost to efficiency in processes.
Petronas Penapisan (Terengganu) Sdn Bhd has based approaches through Innovative and Creative Circle to design and develop the Desorbent Sight Glass (DSG). DSG is made of carbon steel metal and is known for its durability towards high pressure and corrosion. This ground-breaking solution managed to overcome inefficiency during the sampling process of the desorbent. Prior to this, an average of 25 minutes was needed for the entire process from valve opening to draining oil contamination (DOC). However, only 2 minutes was recorded for the desorbent sampling process upon the installation of DSG into Desorbent Sump Tank Sample Box.
Extra rework activities were required and thus this increased operation cost to RM41,250 per month. After incorporating ICC initiatives, Proton has managed to obtain zero – defect performance and only 12 workers are needed as compared to 13 employees before. With no cases in unclean cylinder block, Proton manages to save cost of zero – defect performance by RM346,500 every year.
The capability of Delloyd in eliminating defects has increased customer satisfaction rate from 16 percent to 75 percent after implementing the e-Robotic’s system of blue ocean strategy. The issue of uninstalled parts does not occur and Delloyd has managed to achieve a zero defect rate as compared to having 595 cases previously. This has brought to a cost saving of RM25,593.
Maintaining a conducive workplace through implementation of Occupational Safety & Health (OSH) at Sapura Brake Technologies Sdn. Bhd. (2015)
Sapura Brake Technologies Sdn. Bhd. (SBT) is a subsidiary of Sapura Industrial Berhad which specializes in the production of brake technologies. In the year 2014, Sapura Brake Technologies had won the National OSH Award 2014 under the category of Small and Medium Enterprise Award from Ministry of Human Resources (MOHR) for their excellence in implementing occupational safety and health at the workplace.
ICC project is beneficial to PROTON in defeating the quality issues of the new model. With the implementation of the ICC Project, PROTON has successfully reduced the defect cases to 9 units monthly, indicating a reduction of 97 percent in reject rate. This achievement has reduced the DPH level to 20 and for the first time true performance has increased to 96 percent.
Productivity performance has increased to 25 pieces/ hour/ line/ headcount with the implementation of ICC project. Furthermore, Fuji Electric Malaysia only requires two sets of equipment for two short conveyers that amounts to RM1,087,100 as compared to RM2,717,750 (five sets of equipment) before the implementation of ICC project. Currently, the maintenance cost for the equipment totals to RM66,000 as compared to RM165,000 previously.
The implementation of the creative and innovative solution in improving the heat sink clamper has benefited the organisation and the ICC team member in terms of quality, cost, delivery, confidence and safety. The improvement managed to increase the quality of product by reducing the yield loss of Solder Void to 0.13 percent, leading to an increase of the yield to 97.8 percent with an output of 16.45 million of pieces per week. Whereas, the team attained intangible improvements of 81.8 percent in communication, QC tools, presentation skill and technical knowledge.
OPCOM’s annual production capacity reaches approximately 55,000 cable km, with a range from 2 core 192 core cables. With an introduction of 192 core cables as a new high core cable, it has increased the scrap cables for OPCOM. A team of five people was assigned to focus on the slotted core process area with the aim of reducing unplanned scrap values by 50 percent. LEAN implementation at OPCOM has reduced the lead time to 308 minutes/km instead of 417.3 minutes/km.
Time and motion distance study using VSM was incorporated into the ICC project to identify the non-value added activities causing time wastages. Out of 21 steps, three were identified as non-value added steps; four were value added steps while the remaining 14 steps required improvement. The total number of steps involved in the mark-cut to class/tape process was reduced to 18 steps as compared to 21 steps before the implementation of the ICC project. The introduction of FIFO trolley, reduction of recording items, fast quantity confirmation and incorporating Flow 3 into Flow 1 and Flow 2 have resulted a decrease in TAT at transistors EoL from 119 hours to 70 hours, amounting to a 40 percent improvement in time.
Sun Edison (SE) is among the world top solar wafer companies with a production capacity of solar wafer exceeding 800 MW annually. SE faced a problem of daily plant finished goods (FG) of solar wafer packed did not tally with the reported machine output quantity. The high variance between the reported machine output with actual packed wafer quantity was rectified by using the methods of counting good wafer, loss of wafer and review on the rework flow.
An amount of USD1.2 million of WIP components was stored at the warehouse which would incur losses in space and inventory cost due to overabundance of HSA components. It was unnecessary to store HSA components in the warehouse as a new method was being introduced. This initiative enables HSA components to be sent straight to the next processes without having to go to the warehouse. A scanning system is also revised to ensure only good HSA components are fed into the next production line.
The Petronas Penapisan (Terengganu) had aimed to eliminate the difficulties in removing hydrocarbon at First Flush Pit. The second target was to achieve a cost reduction in time and manpower during the Oil and Gas (O&G) removal from RM1,800 per month to RM300 per month. The Innovative and Creative Circle (ICC) activities have successfully reduced the O&G in Industrial Effluent Treatment System (IETS) from 182 ppm to 98 ppm.
Segamat Panel Borad’s (SPB) core business is to produce high quality wood based thin panels (MDF and Particleboard) with various sizes in thickness. SPB is producing an average of 6,000m3 or nearly 2.5 million square metres per month of premium grade thin panel MDF that fulfills international standards. In the past years, one of the main problems found was on chipper wood production process. After the implementation of LEAN project, SPB is able to reduce lead time by 10 minutes for the change over time.
Innovation always brought positive impacts to Sharp Manufacturing Corporation (M) Sdn. Bhd. (SMM) in terms of reducing cost of operations and defect rate, eliminating work inefficiency, improving quality and reducing wastages. The management had decided to reduce 30 percent of work-time wastages in one of the production processes. The new stencil method in bonding process was the initiative for resolving the problem of work-time wastages. From this initiative, SMM is able to produce 60,000 pieces within 16 days with an average of 21,360 minutes indicating a reduction of 55 percent in cycle time.
Agilent Technologies Malaysia has successfully implemented work – life balance initiatives which have reduced operating & productivity costs, absenteeism and insurance claims, while employees’ punctuality, commitment and performance has been growing every year. A complete transformation within 6 years from 2006 to 2012 has given Agilent a new dimension of excellent performance. This transformation was further complemented as Aon Hewitt Best Employee in 2013.
It was recorded in 2013 that the number of feedbacks not returned for hajj offers amounted to 103. The implementation of this ICC project has reduced the numbers from 103 cases to 0, indicating a 100 percent improvement. Not only that, the time taken in dealing with feedback that were not returned for hajj offers also has reduced to 1 day as compared to 16 days previously.
The innovation in the food disposal process at Kedah Medical Centre (KMM) has reduced the food disposal cost to 68.55 percent. Not only that, the utility cost has also decreased to RM 755 as compared to RM874 previously. Consequently, this innovation of developing bio-fruitful enzyme has helped in producing efficient work and this alone manages to save a total overtime cost of RM1,680 monthly. This has also contributed in a cost reduction of RM22,481 per year after the implementation of their ICC project.
Alam Flora Sdn. Bhd. had found that barrel chip and bracket of a suction hose was always damaged that had contributed to the increase in the maintenance cost of catch basin vehicle. The implementation of the ICC project has brought tremendous changes in the reduction of the maintenance and operation cost. The installation of adapter kit saves a total amount of RM426,500 annually. This is supported by the reduction in maintenance cost from RM530,100 previously to RM208,300 per annum.
The missing of maintenance service doors at Gelang Patah Interchange, amounting to a total of RM15,200 was resolved by PLUS using ICC approach. This problem solving approach had led PLUS to reduce electrical cable vandalism, illegal tapping of electricity supply, wastages in time in relation to work process and cost of maintenance and electricity. It also has brought tremendous changes in the reduction of the maintenance and operations cost. The installation of R5o6 screws on 2103 street lightings saves a total amount of RM336,480 annually.
ICC project has assisted KPJ Johor to save the operation cost on wages by RM6,431 in a year. Not only that, the time taken for food preparation has reduced to 2.5 hours as compared to 4.3 hours initially. Furthermore, only eight staff are required for the food preparation which is equivalent to an improvement of 38 percent of workforce.
Employees working in the vehicle inspection area are exposed to vehicle emissions as they come in contact with the smoke through inhalation or physical contact. These particles will lead to health issues especially related to respiratory. The ICC project successfully resolved this problem by eliminating non-compliances of PPE requirement, reducing the impact of vehicle emissions on wall at heavy vehicle (HV) and also reducing TSP reading from 4.389 mg/m3 to 4.059 mg/m3.
Waiting time is one of the factors that has to be improved at counter services for maintenance of customer satisfaction. In 2014, this similar problem is also faced by TH Johor whereby 54 percent of transactions on savings, withdrawals and application of new members took up more than 30 minutes of their waiting time. The average waiting time before LEAN was 37 minutes and 21 seconds and is finally reduced to 25 minutes and 54 seconds. These initiatives have assisted TH Johor to reduce their clients’ dissatisfaction feedback on waiting time to 19 percent instead of 25 percent previously.
In 2014, an internal audit conducted by Organisational Excellence department found that Brahim’s Airline Catering needed to be frugal on croissant as there was an excess of croissant on MH flights which did not match with the number of passengers. LEAN improvement project helped Brahim’s to save cost of over supply of croissants at RM2,842.39 per month. In a month, a total of RM45,207.70 has been saved in terms of raw materials. In a year, BAC manages to save wastages on the over supply of croissants at a total cost of RM576,601.
Previously, dispensing of medicines by KPJ Johor only achieved 61 percent of the outpatients treatment within 20 minutes of time. With LEAN, waiting time of preparing and dispensing medicines has improved to 20 minutes as compared to 30 minutes previously. The Quality Impact Assessment Standard has increased to 87.14 percent and there are no errors reported on receiving medication.
KPJ Perdana Specialist Hospital management team welcomes innovative ideas from hospital staff to bring about great positive changes in upholding to its name. Creative ideas among hospital staff are encouraged to be put into use such as shortening of waiting time for post natal care patients. Due to the increasing number of birth rates every year on rooms availability, LEAN approach has been introduced. This project is successfully implemented as it has reduced the discharge time for post natal patients from 5 hours to approximately 2 hours and 44 minutes. The lead time of discharging self-pay post natal patient is reduced to 2 hours and 44 minutes, an improvement of 46.8 percent.
The usage of Technical Finger has significantly reduced the cost of operations for the company. The usage of Technical Finger is able to eliminate difficulties in pulling and positioning the portable maintenance step. The biggest impact with this elimination of the non-value added factors is saving an amount of RM356,029 per year which was viewed as wastages. The operation cost for new process is now only RM26,978 indicating a reduction of 92 percent in operation cost.
The rubbish collection process at BUJ Technologies Enterprise took too long a time due to the many steps involved such as roll call, checking of vehicles and equipment, filling up diesel, rubbish collection, rubbish disposal, cleaning trucks and trucks storage. With the implementation of Kaizen, seven steps have been reduced to six processes. Lead time has improved to 480 minutes which is 12.53 percent saved on time. The processing time takes up 287 minutes and after LEAN, has reduced to 271 minutes, an improvement of 5.68 percent. Waiting time takes up 209 minutes instead of 261 minutes previously.
As one of the successful financial institutions in Malaysia, Maybank proactively and systematically has taken actions to ensure that they have the human resource capability to meet their current and future business requirements. Maybank has made talent management a critical force in their drive for excellence. It has been proven that within 5 years, Maybank has achieved targeted performance speedily with strong support contributed by all Maybankers.
Kualiti Alam Sdn. Bhd. is capable to provide treatments for 77 categories of scheduled waste known as toxic and hazardous wastes. The handling scheduled waste chain starts from collection, transportation, treatment and final disposal. This company has effectively and efficiently scheduled waste management processes and facilities that are able to preserve the environment from being exposed to pollution.
Telekom Malaysia (TM) launched TOP (Towards Operational Perfection), a 3-year LEAN transformation programme in 2009 to transform its end -to-end service value stream. It took 3 years for TM to complete their LEAN transformation journey which involves 14 end –to-end value streams at 800 locations nationwide.
Before the ICC project, FGV R&D has received 967 claims from workers that were related with difficulty in distributing Metarhizium Solid Substrate (MSS) at the oil palm re-plantation areas. After the implementation of GRAPs, the number of claims has been reduced to only 12. In terms of cost saving, FGV R&D has managed to reduce the operation cost from RM6,286 to RM2,658. Not only that, FGV R&D is able to reduce salary expenses as only 1,500 workers are needed for 15,000 hectare if compared to 3,750 workers previously. This has saved a total of RM86,535 of wages each year and has indeed increased the productivity performance of FGV R&D.
The process of obtaining a Commercial Vehicle License (CVL) can be very long and tedious. The whole process might take up anywhere between 1 to 5 months. It was recorded that in 2013, out of 7,286 CVL applications, only 4,850 applications were approved. The improvement project of removing unnecessary process and documentation was embarked in 2014 and able to reduce compliance cost to business (RM61 mil/year) and reduce operating cost to local council (RM9 mil/year).
In 2014, MPC together with InvestKL started an initiative to further reduce the processing time required for cargo clearance sing K8 at PKFZ Sdn. Bhd. Schlumberger was selected as the company for implementing this project improvement, due to the company’s latest business model in getting swift cargo clearance. Within just 4 months, the project improvement was completed and has improved Schlumberger’s service efficiencies and reliabilities towards customer commitment.
Baker Hughes (M) Sdn Bhd is a top tier oil and gas service provider company. Raw materials imported from Singapore, need to be transported to PKFZ first for duty exemption declaration prior to sending them out for value added activities in Johor Bahru and then re-transport them to Baker Hughes at PKFZ. By using Reducing Unnecessary Regulatory Burden (RURB) methodology, MPC, Royal Malaysian Customs Department (RMCD), Malaysian Investment DevelopmentAuthority (MIDA) together with PKFZ Sdn Bhd and Baker Hughes (M) Sdn Bhd had collaborated in developing the proposed solution for movement of their dutiable goods.
A collaboration was entered between MPC, Schlumberger, Department of Civil Aviation Malaysia (DCA) and Atomic Energy Licensing Board (AELB) to improve the government service delivery. Upon a series of consultation with the regulating bodies and stakeholders, AELB and DCA streamlined their processes by hastening and facilitating approval of the Dangerous Goods Permits . With this improvement, it is estimated that the country could achieve a 2 working-day approval time or at least meet the target of 3 days cycle time as the objective of this initiative.
i-REG is a holistic solution with the objective of improvising management system for new student registration at Universiti Teknikal Malaysia Melaka (UTeM). This holistic solution is applicable in any public or local universities as new student registration process is similar. Now, registration process only takes 4 minutes as compared to 29 minutes for every student, amounting to 86 percent improvement in the time taken.
The lengthy time taken during the academic advisory session had led advisors/lecturers to channel their working hours on advisory related issues rather than focusing on other equally essential tasks and duties namely innovative researches, publications and teaching itself. The Universiti Tun Hussein Onn Malaysia (UTHM) used ICC approach in resolving this issue that has shortened the academic advisory session to 8 minutes as compared to 30 minutes per session previously.
The mobile application was targeted to facilitate users who are of all levels, namely working or non-working to utilise the Government services. This application has not only succeeded in providing a user- friendly service but also has promoted paperless service thus contributed to a more environmental friendly service. The implementation of this innovative solution has managed to overcome the cost, distance, storage, time and weight that have initially contributed to the cause of expensive selling price and insufficient storage of the local development plan.
The Innovative and Creative Circle (ICC) project was mainly carried out by the Sarawak State Treasury Department with the objective to resolve the issue of delay in receiving remittance. A system known as e-Remittance was developed that is able to generate various types of reports and helps to accelerate the process of making precise decisions with regards to fund distribution. With this, all the transactions are computerised and the previous 16 steps in the remittance process is now brought down to 6 simple and proficient steps.
The main problem of wastage on issuance of assessment rates billing came from the valuation process of new residential properties in the past years. By using Lean solution, Dewan Bandaraya Kuching Utara found a solution to save time on valuation process before issuance of assessment rates billing for new residential properties. Out of the 26 steps, 11 steps were identified as value added and the 15 remaining steps were categorised as non-value added which had no purpose in value to the valuation process. The processing time takes 725 minutes and after LEAN, it has reduced to 497 minutes.
The application of LEAN principles and practices in Hospital Sultanah Nur Zaharah has dramatically improved on the time taken to dispense the First Dose (STAT) Antibiotics and this has increased the survival rate for adults’ patients. Now 30 percent of patients are able to receive antibiotics within an hour as compared to 0 percent before Kaizen actions are implemented.
HUSM strives to give the best services and facilities to patients’ demands by having the best quality and safety environment available such as in Extracorporeal Shock Wave Lithotripsy (ESWL) treatment. Previously, the ESWL procedure required five hours of treatment time and each patient had to undergo 47 long essential steps. By improving time taken on ESWL procedure, a larger number of patients could be treated. From a total of 47 steps, 27 non-value added steps were identified and needed to be eliminated as it had contributed to increase in waiting and process time of ESWL treatment.
At Jabatan Ketua Menteri Melaka, LEAN improvement process was implemented to speed up the officers’ end contract payment (Ganjaran Tamat Kontrak (GTK)) and also to enhance the delivery services. The conventional 24 processes involved from receiving new application up to the final stage of payments recorded. Now, JKMM has finally achieved in reducing non-value added steps to 13 processes which has taken up only 28 days as compared to 52.5 days.
LEAN approach has opened more doors of opportunities in the teaching line and LEAN thinking management is highly recognised as a standard practice in any organisation. Kolej Kemahiran Tinggi Mara (KKTM) has implemented LEAN project and from this initiative, the total delay time of obtaining training materials has improved to 240 minutes as compared to 960 minutes previously.
A scientific study revealed that rodents have been identified for spreading about 70 types of diseases to humans worldwide. The implementation of Transit Killer Rat (TKR) by Majlis Perbandaran Kauntan was proven efficient in controlling the population of rats in Kuantan particularly in business premises. With the usage of TKR, the total number of rodents captured has increased to 5,576 as compared to 2,599 indicating 107 percent improvement.
Plans for residential development in Majlis Perbandaran Kuantan is one of the main aims to bring modernisation and great development to the town. Fast approval on issuing residential plans is needed. LEAN project is beneficial to this organisation in overcoming all the hitches in expediting approvals of residential buildings of 1 – 4 units. After LEAN implementation, the approval only undergoes three processes as compared to 13 processes previously.
In pursue of promoting green technology, Malaysian Green Technology Corporation was established in 2010 with the aim to catalyse green technology deployment as Malaysia’s strategic engine for socio-economy growth. One of the initiatives in introducing the concept of green technology is through GEO building which was successfully technology features of Energy Efficiency, Renewable Energy and Rain Water Harvesting System. The GEO building is one of the national projects that is able to demonstrate to the industries on the importance and benefits of green technology implementation.
Putrajaya Health Office (Pejabat Kesihatan Wilayah Persekutuan Putrajaya) aims to offer high quality healthcare services which are affordable and accessible to their patients. LEAN helps this organisation by improving the patient waiting time from 153 minutes to 110 minutes only. Hence an additional of 30 patients are able to receive treatments for the day.
Tampin Hospital found that the process of cleaning and dressing bed sores for inpatients took longer time and inefficient. The solution to this problem was to create an equipment or tool that can be used to turn patient while the staff in charge is cleaning bed sores. An equipment known as Kejora Portable Bed was designed and developed which has significantly reduced the time spent on cleaning bed sores from 14 minutes to 2 minutes for one patient.
The initiatives from Innovative and Creative Circle (ICC) project are beneficial to UKM Medical Centre (UKMMC) in overcoming all the hitches in accelerating the asset budget application process. A system knowns as eKBBA was developed based on the ICC finding. Now, UKMMC is able to save time in work processing and customer response time by 5,076 minutes in a month. In terms of cost saving, this ICC project managed to save RM4.2 million in 2013 and 2015.
All officers at University Malaysia Terengganu (UMT) who further their education are required by the university to submit the scheduled academic progress report during the period of study leave. They are required to submit individual progress report once in every six months. Late in submitting the report had made UMT to implement an Innovative and Creative Circle (ICC) project for boosting productivity and efficiency. Online system for the submission of the academic progress reports known as e-Cube was developed and has successfully brought down the percentage of unsubmitted academic reports from 46.5 percent in 2010 to 7.2 percent in 2012.
The LEAN initiative is introduced to bring about a change to UPM services especially for the approval of application on development services. After the implementation of LEAN, this services has improved significantly with a shorter time of 8 days as compared to 15 days previously. The overall LEAN results achieved for this project are in the process time of only 424 minutes, waiting time are 3,480 minutes while lead time takes only 3,904 minutes.