principles 1- long term business thinking.ppt · p1 –long term business thinking 1.0 long term...
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AMS 9 PRINCIPLES
VISUAL MANAGEMENTP
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LONG TERM BUSINESS THINKING 1
TOTAL EMPLOYEE INVOLVEMENT & DEVELOPMENT2
3
45 6 7 8 9
P1 – LONG TERM BUSINESS THINKING
1.0 Long Term Business Thinking means all Decision
Making Process are based on the company’s
Vision, Mission, Values and Strategies
2.0 Help the organization to work, grow and align the2.0 Help the organization to work, grow and align the
whole organization towards a common long term
objective.
Vision, Missions and Values Form The Basis For The Decision Making Process
To Achieve Goals And Objectives
Vision Mission ManufacturingValues
P1 – LONG TERM BUSINESS THINKING
Vision
Goals
And
Objectives
Mission Manufacturing
Strategies
Basis And Guidelines For Decision Makings
Values
1. Business Plan
2. Key Performance Indicators (KPI)
1. Business Plan
2. Key Performance Indicators (KPI)
INITIATIVES
P1 – LONG TERM BUSINESS THINKING
3. Customers Satisfaction Survey (CSS)
4. Long Term Employee Development
3. Customers Satisfaction Survey (CSS)
4. Long Term Employee Development
1. Enhance Values For Customer, Society
Shareholders, Employees and The
Economy.
1. Enhance Values For Customer, Society
Shareholders, Employees and The
Economy.
APPLICATION OF THIS PRINCIPLE
P1 – LONG TERM BUSINESS THINKING
Economy.
2. Work, Grow and Align The Whole
Organization Toward A Common Purpose.
Economy.
2. Work, Grow and Align The Whole
Organization Toward A Common Purpose.
VALUESWhat we believe in
MISSIONWhy we exist
VISIONWhat we want to
be
1.0 A business plan is the road map for
the company to move to the future.
2.0 This is developed through defining
the Vision, Mission, Values,
BUSINESS PLAN
P1 – LONG TERM BUSINESS THINKING
EMPLOYEES OBJECTIVESWhat I need to do
STRATEGIC INITIATIVESWhat we need to do
OBJECTIVES / KPI SCORECARDImplementation and Focus
STRATEGIESOur Game Plan
What we believe in
STRATEGIC OUTCOMES
Satisfied
SHAREHOLDERS
Delighted
CUSTOMERS
Effective
PROCESSES
Motivated
WORKFORCE
the Vision, Mission, Values,
Strategies and Objectives of the
organization which lead to strategic
and personnel objectives.
3.0 In this way the whole organization is
directed to work, grow and align
towards a common long term goal.
1. Key Performance Indicators (KPI) are financial and non-financial metrics
used to quantify objectives that were set by the organization.
2. It will measure the performance and achievement of the organization.
3. The KPIs of the organization are cascaded down from top management to all
KEY PERFORMANCE INDICATORS
P1 – LONG TERM BUSINESS THINKING
3. The KPIs of the organization are cascaded down from top management to all
employees.
4. The management shall monitor these KPIs monthly and take corrective
actions if the KPIs are not met.
5. These KPIs will be linked to employee performance management system
FinancialFinancial
Future GrowthsFuture Growths
Financial Related: Revenues, Profit,
Cash Flow and EBITDA etc.
Financial Related: Revenues, Profit,
Cash Flow and EBITDA etc.
New Business Development For
Future Growth – Long Term
New Business Development For
Future Growth – Long Term
4 COMPONENT OF KPI
P1 – LONG TERM BUSINESS THINKING
Critical PrioritiesCritical Priorities
Key EnablersKey Enablers
KPIs Which Are Critical And To Be
Given Priorities – short term
KPIs Which Are Critical And To Be
Given Priorities – short term
Future Growth – Long TermFuture Growth – Long Term
Key Initiatives To Be Taken To Enable
The Achievement
Of Company’s Objectives
Key Initiatives To Be Taken To Enable
The Achievement
Of Company’s Objectives
VISION, MISSION AND VALUES
Delighting Customers, Associates, Society and sHareholders (CASH) through
• Best Value Products
• Excellent Practices
To Be A To Be A World Class ManufacturerWorld Class Manufacturer Of Small Engines and ComponentsOf Small Engines and Components
MISSIONMISSION
VISIONVISION
• Excellent Practices
• Safe and Harmonious Environment
• COntinuous Growth
• Positive Corporate Image
VIMIGOST FY09/10 : 11.11.08 KZ
10
Committed Committed ♦♦ Teamwork Teamwork ♦♦ Lean ThinkingLean Thinking♦♦ Proactive Proactive ♦♦ IntegrityIntegrity
VALUESVALUES
11
A.Financial 1.Revenue RM RM241 million 10%
2.PBT (exclude exceptional items & write back) RM RM19.8 million 30%
3.Dividend Payment % 50% of PAT 5%
4.Asset Turnover Times 2.2 2%
5.Inventory Turnover Times 9.5 2%
Sub-total 49%
B.Future Growth 1.Oil Pump In-house machining for KFVX-TC with Yamada Timeline February 2010 4%
2.Piston In-house machining for KVFX-TC with Honda Forging Timeline January 2010 4%
3.Mass Prod. Of KWWH engines Timeline January 2010 4%
12%
C.Critical Priorities 1.Customer Return Rate
-Domestic PPM 500ppm 2%
-Export (Machining Defects) PPM 50ppm 2%
- Export (Raw Cast Defects) PPM 1000ppm
2.Overall Equipment Effectiveness
-Casting % 70% 1%
-Engine Assembly % 88% 1%
-Machining % 88% 1%
3.Cost Saving Initiatives % of Turnover 1.5% 3%
4.Implementation of ERP System Points 1%
5.Human Resource
-Succession Planning Availability of No.2 Dec 09 2%
Sub-total
Category Key Performance Indicators Measurement TargetCEO
Weightage
KEY PERFORMANCE INDICATOR
12
-Succession Planning Availability of No.2 Dec 09 2%
- Employee Development Total Training Hrs. 48 Hrs/pax 2%
-Job Description for Key Positions 2%
-Competency Development 3%
6.Financial Reporting
-External Audit Rating Points 2%
-Monthly/Quarterly Reporting 2%
-Financial Competency 3%
27%
D.Key Enablers
1.Internal Audit Compliance to 10 days rule report Points 3%
Close out rate on FY findings
Overall rating on findings-High/Medium/Low
2.HMS Audit HMS Implementation rating-Platinum/Gold/Silver Rating Gold 2%
(including autonomous maintenance(step 2&3)
3.ERM Timely submission Points 3%
Accuracy of Risk Score
Adequacy of mitigating actions
System & Compliance
4.System Compliance Alignment with Group Directives Points 3%
5.Management Review Full compliance in terms of adequacy & frequency Points 1%
12%
100%
Sub-total
Sub-total
Grand Total
1. Customer Satisfaction Survey is carried out to measure whether the
company is meeting the customer expectations.
2. The survey will give insight on where changes should be made to
increase satisfaction.
3. Factors that are being measured are:
CUSTOMER SATISFACTION SURVEY
P1 – LONG TERM BUSINESS THINKING
3. Factors that are being measured are:
Quality, Delivery (timeliness), Cost, Services (responsiveness and
helpfulness).
4. Results from the survey will be analyzed and corrective actions will
be taken in relation to the the unsatisfactory areas.
5. Customer Satisfaction Survey is being carried out at least once a
year.
Customer Satisfaction Survey
CUSTOMER SATISFACTION SURVEY
P1 – LONG TERM BUSINESS THINKING
SurveyGet
FeedbackAnalyzeFeedback
Corrective Corrective Actions
Quality DeliveryCost
CompetitiveServices
1. To measure internal human asset satisfaction level in relation to
their involvement in productivity and quality improvement program.
2. To provide a medium for employees to contribute ideas and
comments pertaining to company activities, benefits and others that
EMPLOYEE SATISFACTION SURVEY
P1 – LONG TERM BUSINESS THINKING
comments pertaining to company activities, benefits and others that
are related to their employment.
3. To assist management to determine area of improvement.
Note: Questions in the survey forms shall be designed to include
skill, knowledge, leadership, problem solving and employees’
perception.
Working committee
& selected staff
Do survey draft
STAGE 1 STAGE 2
Working committee
Do Summary
Do Analysis report
Working committee
EMPLOYEE SATISFACTION SURVEY
P1 – LONG TERM BUSINESS THINKING
CEO’s
approval
Distribute / brief
survey form
All employees
fill up survey form
Working committee
propose corrective
actions
CEO’s approval
Do report
Display report at
notice board
All employees
read the report.
A portfolio is collection of products, projects, services or brands offered for sales by
a company. A Product Portfolio Analysis is done to understand the “positioning’ and
profitability or contribution of each product. The simplest technique to use is the:
Contribution Margin Analysis Technique. Other techniques like the Boston
Consulting Group (BCG) Analysis Technique could also be used.
The Contribution Margin Analysis Technique enables a company to decide which:
PRODUCT PORTFOLIO
P1 – LONG TERM BUSINESS THINKING
� Parts that areWORTH KEEPING.
� Parts that need to be focused for COST IMPROVEMENT.
� Parts that need to be seriously considered to be DISCONTINUED.
� New parts to be INTRODUCED.
The above decisions will be made taking into account:• Additional Revenues• Additional Costs• Effects on Other Products (Cannabalization)• Competitors’ Reaction• The Overall Marketing Strategy Of The Company