JIT in Malaysia
JIT in Malaysia
JIT in Malaysia
INTRODUCTION
1.0 Introduction
quantity of quality products on time that meet customers demands. The idea
Planning (MRP II), and Just-in-Time (JIT) techniques. In addition, Total Quality
profitable organisation.
Lean Manufacturing has evolved from production shop floor to the whole
supply chain [Hines et. al. (2004)]. The term itself is also extended to the terms
Thinking, Lean Consumption, Lean Solution, and Lean Supply Chain [Womack
et. al. (1990), Lamming (1996), Womack and Jones (2003), Womack and Jones
(2005a), Womack and Jones (2005b), Baines et. al. (2006)]. In this study,
1
Collaborative Lean Manufacturing Management (CLMM) is the term used for
this enhanced LMM that covers all areas within and across the organisation in
several car assembly factories in Selangor with the first car, Volvo 144 rolled off
seriously in car manufacturing and heavy industry. Now, after more than 20
years, there are four national-status car companies, i.e. PROTON, PERODUA
the Malaysias economy. Since its establishment in 1985, PROTON has proved
more than 60% of the car market in Malaysia [Ahmad (2003b)]. With this good
1995, which focusing on the manufacturing of small and compact cars. It is also
a successful project when PERODUA cars dominate the small car segment
2
market. The success of both companies is however contributed by the protection
by the government, which introduces and imposes various taxes to the imported
to reducing import duties for motor vehicles to 20 percent effective from January
2005 and subsequently to maximum of five percent from January 2008. In order
challenges of AFTA market opening, when the car sector is phased-in into the
CEPT scheme, this pre-emptive review of the car import duty structure has been
competitiveness, product quality and reliability, marketing (for local and export)
Malaysian market, including from Korea, India and China. For example,
Hyundai from Korea made the most significant gain in market share by
managing 3.3% of the total industry volume in 2005 although it only entered the
experienced a dip, for example PROTONs local market share fell to 29.7% in
2007 from 65% in 2000. This phenomenon had already been predicted eight
years before when former Director of PROTON, Yoshimi Fumio said [after
Sulong (2000)]:
3
When the ASEAN Free Trade Area (AFTA) provisions come into
effect in 2005, the PROTON market share could fall to only 30%...
cars and reduce the cost. The development of its Campro engine for Proton
Gen-2, which reduces production cost of 1015 % and the quality certification by
now to compete with more carmakers in the below 1,000cc category, where
previously it was one of only a few players in the segment [Kamiso (2004)].
within organisations, but also the Lean Manufacturing between the organisations
in the supply chain. All members in the LMM chain from suppliers to customers
must work together towards common objectives in order to make the Lean
organisations, there are still problems related to it. The problems include
high pressure to shop floor workers [Cusumano (1994), Hines et. al. (2004)].
4
With the realisation that the Lean Manufacturing concept is not fully
understood and adopted due to its business dynamic in nature, a frame work of
CLMM is needed to investigate the gap between the practice and ideal system.
change and commitment also play significant roles in the CLMM development.
1.3 Objectives
The problems stated in the previous section have motivated this research.
The main objective of this research is to investigate the recent state of Lean
developing and improving the CLMM. This main objective has led to the
and its supply chain. The model integrates factors that represent
development of CLMM.
5
(KBCLMM) structure. The KBCLMM structure is needed to enable the
development of system using an expert system shell, and embed the GAP
and validated to ensure the system works as planned, and has the
the organisations data and knowledge gained from the interview with the
work.
1.4 Methodology
operational of the KBCLMM System, and the verification and validation process.
6
Detailed
Development of
development of
conceptual model
Literature KBCLMM
of KBCLMM
Review Strategic Level
Yes
Strategic?
Detailed
No development of
KBCLMM
Operational Level
Yes
Refinement
Verification and
Validation
No
Finish
developing the research model and the design of questions and explanations
needed in the KB system. From the literature review process, the concepts,
scope and principles that influence the development of CLMM are formulated.
The first stage of the literature review relates to the Lean Manufacturing
Management and its relation to the development of CLMM, while in the second
stage, the review focuses on the tool (KB methodology) that supports the CLMM
7
consists of Organisation Environment, Business Collaborative and Lean
System. From the conceptual model, all components are transformed into the
KBCLMM System structure, which is embedded with the GAP and AHP
techniques, and thus, key areas of potential improvement in the CLMM are
identified for each activity along with the identification of both qualitative and
are also used to verify and validate several modules for their validity and
reliability.
policy makers in making new strategies and introducing new business policies.
8
1.6 Outline of the Thesis
This thesis consists of eight chapters. The introduction to the research, its
structure.
9
Competitive Priorities Perspective (Level 3), Organisation CLMM Capability
the research objectives, and recommendation for the future research are
presented.
10