chapter 6 - Malaysia Productivity Corporation ( MPC)

PRODUCTIVITY PERFORMANCE OF THE MANUFACTURING SECTOR
means such as implementation of total quality
management (TQM), Innovative Creative Circle
(ICC), green technology, time management
practices and kaizen (continuous improvement) .
Some of the best practices observed in E&E subsector
include using ICC as tool to generate new
ideas in producing goods and services, product
arrangement as well as design and marketing.
Some of the technique includes problem solving to
simplify the steps taken to reduce the production
processes and the end result is cost saving and
increase in production. Innovation involves
moving from manual task to automation through
technology transfer or R&D. This involves working
closely with the various research institutions to
develop new processes which require minimum
manual labour.
Green technology is the application of the
environmental science and conserves the natural
resources. This practice is particularly important
for natural resource conservation and to avoid
environmental pollution.
Total Quality Management (TQM) is an integrative
philosophy of management for continuously
improving the quality of products and process. It
is a tool that strives to generate excellent impact
on the quality of products and services to enhance
productivity and competitiveness. The main
objective of this programme is to sustain customer
satisfaction through continuous improvement,
which is accomplished by systematic method
for problem solving, breakthrough achievement
and sustenance of good standardisation. TQM
Demonstration Project or the TQM Model Company
Project enables enterprises to adopt TQM best
practices in the development of a quality system.
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Quality management practice is management
quality cycle that refers to participation of
employees with management as a labour
management team in decision pertaining to the
operational activities of the organisation. One of
the popular quality initiatives is Kaizen. Kaizen
involves a continuous improvement of processes
in manufacturing, engineering and business
management. It refers to activities that continually
improve all functions and involve all employees
from CEO to assembly line workers. Kaizen aims
to eliminate waste and increase efficiency and
productivity.
Time management is important to increase
efficiency and productivity. It can be done through
redesigned, repacked, reallocated equipment
and any other kinds of arrangement that can
save working time. The utilisation of special tools
and automation will definitely save time in the
production process.
Strategies and Outlook
Malaysia’s economy is projected to experience
a steady pace of growth of more than 4% in
2012, despite facing greater challenges from
the external environment. However, the growth
will be supported by the acceleration of public
investment projects and sustaining strong
exports of commodities and resource-based
manufactured goods. It will also supported by
strong domestic consumer spending as a result of
increasing households’ income and employment
stability.
The manufacturing sector is expected to grow at
2.3% in 2012 due to lower external demand that
affect export-oriented manufacturing sub-sectors,