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Lean Management Programme

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
  1. Identifying the source of waste in any main processes and planning improvement counter measures
  2. Utilising Lean Management to increase the efficiency of any processes and operation which lead to higher productivity.
  3. Increases the efficiency of product delivery and customer satisfaction.
  4. 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:
  1. Phase 1: Lean Mindset Change
  2. Phase 2: Development and Implementation of Lean Management Programme
  3. 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

Closing Date
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.

Requirements For Lean

Each participants must fulfill the following critierias to apply for the programmes :
  1. Fill in the Lean 2017 application form;
  2. Company must be incorporated in Peninsular Malaysia;
  3. Registered with MTIB;
  4. Priority is given if company participated in any of the following programes
    • 'Malaysian Pride'
    • SCORE
    • MCORE
    • Any other governmental initiatives to develope the timber industry
  5. Application must include the following:
    • Amount of workers (Please specify amount of local and foreign workers)
    • Company revenue in 2015 and 2016
    • Total product export for 2015 and 2016
    • Form 24 and 49 as per Akta Syarikat 1965
    • Memorandum of Article
    • Pictures factory's inner and outer surroundings
    • Pictures of company products
    • Factory settlement status
    • Company insolvency report status
All documents must be prepared in folio form. Inability to follow or fulfill all stated requirements will resulted in your appication being NOT CONSIDERED or DENIED by MTIB. All information shall only be used internally by MTIB and will be considered PRIVATE & CONFIDENTIAL.

Forward all documents to the following address:

Ketua Pengarah
Lembaga Perindustrian Kayu Malaysia (MTIB)
Tingkat 13- 17,Menara PGRM, No. 8, Jalan Pudul Ulu, Cheras
56100 Kuala Lumpur
(U/P : Pengarah Perancangan Strategik & Hal Ehwal Korporat)

Site Visits
In order to determine the company suitability for the programme, MTIB representatives will be conducting site visits to the company.

Based on the provided document and results from the site visits, MTIB shall decide on the companies that will be offered to join the programmes. All decisions are FINAL

Further Information
Please refer to the following officers.
En. Shamsul Azman Abdul Aziz (tel; 03-92822235 ext 1367/ fax; 03-92810729 /shamsulazman[at]mtib[dot]gov[dot]my).
En. Rasfan Akram Hj. Akmal (tel; 03-92822235 ext 1316/ fax ; 03-92810729 / rasfan[at]mtib[dot]gov[dot]my),

MTIB Lean Management Programme 2017
Phase Activities Target Purpose Location Duration Month
1 2 3 4 5 6
1 Lean Awareness Programme Top Management of all participated companies Basic Lean Training To be determined 1 day            
Lean Intensive Workshop and Value Stream Mapping All employees Exposure of Lean Management and identification of processes to be improved Participant’s companies 2 days            
2 Visit 1 Current Status Follow up 1 day            
Visit 2 1 day            
Visit 3 1 day            
3 Presentation to MTIB Presentation to MTIB 1 day            
Presentation at Lean Creanova Programme (to be determined) Presentation of Lean result To be determined 1 day            
* Contents of this programme are under the purview of MTIB and shall be subjected to change from time to time without prior notice

Last Updated: 10 August 2023