In order for Malaysia to achieve its status as a developed nation, it is necessary for Malaysians to focus their energy and effort to increase the nation’s productivity rate to a higher level. Apart from promoting innovation, productivity had been identified as one of the key factors by the government in ensuring Malaysia to become a high income nation. One of the ways that a higher productivity rate can be achieved by the timber industry is by implementing Lean Management in their manufacturing system.
The Malaysian Timber Industry Board (MTIB) had been conducting the Lean Management Programme since 2014 and the results had been remarkable. 40 timber based companies had joined this programme and had a combined total amount of savings of over RM30.0 milllion per year. The savings included labor / overtime, number of workers, work space and maintenance.
What is Lean?
Lean refers to a collection of principles that are designed to give focus on the identification and elimination of any non-value added activities for any processes. Lean is based on Toyota Production System (TPS) which organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. Lean functions by eliminating anything that does not give any values to an organization (such as process). There are five principles of lean management:
• Identifying value from the perspectives of an organization
• Identifying value stream
• Allowing a smoother flow of service
• Providing service as it is being asked (just in time delivery)
• Aiming for perfection
Lean Management Programme’s Objectives
(a) Identifying the source of waste in any main processes and planning improvement counter measures
(b) Utilising Lean Management to increase the efficiency of any processes and operation which lead to higher productivity.
(c) Increases the efficiency of product delivery and customer satisfaction.
(d) Encouraging the sharing of best practices amongst organisations to become more productive and competitive
Why the timber industry need to join?
MTIB had conducted this programme yearly since 2014. As of 2016, 41 timber based companies had joined this programme. Those companies had managed to record a combined total amount of savings of RM33.6 million per year. This included savings of maintenance, overtime, space and inventory. In addition, there has also been an increase in the efficiency of facility layout as well as the encouragement of proper standard of operations (SOPs) in place. To quote one of our participants:
“I have never heard the word lean before we join this program. But today, lean practice helps us generate unconventional and effective solution for daily challenge. Improvement and lean effort also help us to increase our productivity by using less resources while the company can enjoy more benefits with our co-workers. Now we know how to map our process with VSM and other lean tools, in order to deliver premium products to the whole world, on time, at a competitive price.
We really appreciate MTIB’s effort to organise this program for this industries while a big thanks (to our consultant) who gives us a very great training and knowledge about lean manufacturing.”
Lean management improve the work processes in any manufacturing operations which includes floor layout plan, logistics management and maintenance. Therefore, waste can be avoided and thus resulted in increased productivity.
Each organisation who are selected to join this programme will undergo the following 3 phases:
(i) Phase 1: Lean Mindset Change
(ii) Phase 2: Development and Implementation of Lean Management Programme
(iii) Phase 3: Impact measurement, sharing of best practices
This programme is a combination of training, consultation, evaluation and best knowledge sharing practices that will enable each organisation to increase its productivity through improvements in the efficiency of its system, operation and management.
These programmes will be conducted and guided by expertly trained consultants from 6 - 8 months
This programme is FREE OF CHARGE. However, slots are very LIMITED
These programmes are expected to begin June / July 2017
Registration will be closed at 2 Jun 2017
It is crucial that the programme received high commitment from each company’s upper management. Each selected company are OBLIGATED to participate in all activities organised by MTIB throughout the duration of the programme.
Each selected companies are REQUIRED to sign a Memorandum of Agreement (MoA) with MTIB as a sign of commitment to complete the programme. In an event if the company failed to to complete the programme, a compound will be imposed to the company.