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4. SCOPE AND LIMITATIONS OF THE STUDY<br />

This study w<strong>as</strong> conducted in Perusahaan O<strong>to</strong>mobil N<strong>as</strong>ional Berhad<br />

(Pro<strong>to</strong>n) <strong>and</strong> its suppliers (component parts manufacturers). The scope<br />

of the study h<strong>as</strong> been delimited in a number of ways. First, the study<br />

is confined <strong>to</strong> the p<strong>as</strong>senger car industry only. This is considered very<br />

representative <strong>as</strong> the p<strong>as</strong>senger cars dominate more than 70 per cent of<br />

the <strong>to</strong>tal product mix of the industry while the rest were commercial<br />

vehicles such <strong>as</strong> buses, lorries, taxi & hire cars, etc. Second, the study<br />

will be delimited <strong>to</strong> Pro<strong>to</strong>n <strong>and</strong> its vendors (140 firms). It is<br />

considered <strong>to</strong> be well represented <strong>as</strong> Pro<strong>to</strong>n produces <strong>and</strong> sell about 70<br />

per cent of the <strong>to</strong>tal production <strong>and</strong> sales of p<strong>as</strong>senger cars in Malaysia,<br />

thus, it is the back-bone of the industry. In order <strong>to</strong> seek answers <strong>to</strong> the<br />

research questions, this study will only cover the area of supplier<br />

development between Pro<strong>to</strong>n <strong>and</strong> its primary or first tier suppliers (see<br />

Figure 1).<br />

FIGURE 1<br />

Scope <strong>and</strong> Focus of the Study<br />

PROTON<br />

(Primary Buyer Firm)<br />

In house + Local + imported Parts<br />

= Pro<strong>to</strong>n Car<br />

Supply<br />

System<br />

Supply of<br />

Component Parts<br />

Primary Suppliers (1st Tier)<br />

Component Parts Manufactuers<br />

(Complete Components <strong>and</strong> Sub-<strong>as</strong>semblies)<br />

Body parts, Engine Parts, Drive, Transmission Parts,<br />

Steering Parts, Suspension Parts, Electrical Parts, Trim<br />

<strong>and</strong> Upholstery Parts, Paints, Sealents, General Parts,<br />

etc<br />

Secondary Suppliers (2nd Tier)<br />

Raw Materials <strong>and</strong> Small Parts Suppliers<br />

Ferrous, non-ferrous, pl<strong>as</strong>tic resins, rubber<br />

compound, textiles, ceramics, forging, c<strong>as</strong>ting, bolts,<br />

nuts, screws, etc.<br />

Supplier Development<br />

• Identification & Selection<br />

• Matching<br />

• Contact<br />

• Research & Development<br />

• Financing<br />

Product & Producing<br />

Technology Required<br />

Specification

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