(jit) principles and systematic layout planning as tools to improve ...

8. Conclusion
The research, conducted in the Malaysian environment, focused on
Proton and its vendors operations with the objective of obtaining a
better understanding of the current practices, outcomes and issues in
the total supply system of the Malaysian automotive industry. It was
found that Proton, the primary car manufacturer, through its vendor
development programme, plays a very crucial role in developing and
extending comprehensive support to its supplier firms such as
matching, contact, research & development, financing, marketing and
promoting continuous performance improvement programmes. The
relationship is one of cooperative and long term.
However, there are existing problems, especially in the areas of new
product development, product quality, delivery of parts, costs and
financing. The lack of technical capability, reliance on bought-in technology,
the protected environment and limited volume for economies
of scale are factors that render the Malaysian automotive industry to be
not competitive on an international level. The local parts were developed,
in most cases, with cost penalty. To compete in the global marketplace,
a considerable cost reduction is needed. And, since about 80
per cent of the production costs are due to the costs of components and
materials, with labour and sundry costs the remaining 20 per cent,
reduction of cost of component parts is certainly more important than
cheaper labour and sundry costs.
The rapid progress of component parts industry in Malaysia was made
possible, to a great extent, by close collaboration through supplier
development efforts between Proton and its suppliers. Besides
assistance from Proton and also the Government, the component parts
manufacturers themselves have made most extensive effort over the
past twelve years under the entrepreneurial and leadership of the owners
and the key executives of the firms. For as long as such efforts and
cooperation are sustained, the local component parts industry is
expected to grow for a brighter future to cater for Malaysian as well as
the international market.
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