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Re a dine s s A s s e s s m e nt I n dus t r y 4WRD ( M y i 4.0 -RA ) a n d
P r o duct i v i t y I m p r ov e me nt f o r E n t e r pr i s e ( S P P E) S c h e m e
M A L A Y S I A P R O D U C T I V I T Y C O R P O R A T I O N
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E N T E R P R I S E P R O D U C T I V I T Y P R O G R A M M E F O R
C H E M I C A L I N D U S T R I E S
P E N A N G
2 8 A U G U S T 2 0 1 9
SECTORS NEED TO ELEVATE PRODUCTIVITY LEVELS - MPB
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Productivity & Competitiveness:
Push Factors
Driving Transformation, Powering Growth
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY
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Building Workforce of the
Future
NATIONAL-LEVEL INITIATIVES Outline policy priorities to uplift national productivity
Driving Digitalisation and
Innovation (Industry 4.0)
Making Industry Accountable
for Productivity
Machine&
Equipment
Retails
SECTORAL-LEVEL INITIATIVES Outline explicit sector strategies to address sector-level productivity barriers
ENTERPRISE-LEVEL INITIATIVESOutline specific enterprise strategies to enhance operations related to productivity improvement
Forging a Robust Ecosystem
Securing a Strong
Implementation Mechanism
ICT
Productivity Metrics Toolkit
Enterprise Productivity Diagnostic
(EPD)
To be led by core government ministries
and agencies
Targets governance of productivity
policies impacting all economic sectors
To be led by management at enterprises
(including SMEs) with guidance from
sector Productivity Nexus
Targets productivity improvement at
enterprise level
To be led by key industry associations
and anchor enterprises for each sect
Targets acceleration of productivity
uplift, impacting large enterprises and
SMEs at sector level
Tourism
Agro-Food
Chemicals
E&E
Professional Services
Private Healthcare
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INDUSTRY4WRD
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Industry4WRD: National Policy on Industry 4.0
“I believe that the Industry4WRD: National Policy on Industry 4.0
would enable the manufacturing sector to move into Industry 4.0
and along the way contribute to fulfilling Malaysia’s commitment
to the United Nation’s Sustainable Development Goals (SDGs).”
YAB Tun Dr. Mahathir bin Mohamad
31 October 2018, MITI
“Industry4WRD is Malaysia’s response to Industry 4.0 and
beyond, that calls for transformation of manufacturing sector and
its related services to be smarter and stronger, driven by people,
process and technology”
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The self RA registration is free of charge RM27,000 Per Assessment
(Maximum) Plus Other Fund (Soft Loan)
Pre Q Assessment Survey (RA)
Assessment Body (AB)
Intervention Plan
500 Companies 60 Companies
• Pre-qualification survey – 20 questions on applicant’s background and infrastructure they have for businesses in assisting in Industry 4.0
COST
Target
Intervention Fund Management System
Total Grant Allocation of RM45 million (2019 )
Online Self Registration Onsite Assessment by AB for Industry4WRD-RA ProgramMethod
Manufacturing & Manufacturing Related Services (Including LLC, MNC and SME)Sector
DATA PLATFORM FOR ALL MANUFACTURING COMPANIESPROFILING | RATING | REPORTING
• Onsite assessment based on the Industry4WRD-RA Framework (Advanced Manufacturing and ICT)
• RA Processes1) Training2) Understudy / Practical3) Certified Assessor
• AB for 500 companies:• Each AB team = min. 2
assessors
• Intervention is based on the Industry4WRD-RA report –future Industry 4.0 incentives
• To be undertaken by ABs’ and other registered Consultants & System Integrators
Reporting
• The fund to be managed by MIDA• To develop a system to manage the
Intervention Fund (IF) allocation starting from RA to Intervention Plan1) Reporting2) Dashboard
• Data comprises of: 1) Past2) Current3) Future
Dashboard
Industry4WRD – High Level Diagram INDUSTRY4WRD MAPPING – RA & INTERVENTION PROCESS
O V E R V I E W - I N D U S T R Y 4 W R D
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INTERVENTION PROGRAM
60 SMEs
(RM 30m)
READINESS ASSESSMENT
500 SMEs
(RM 15m)
MIGRATION AND TRANSFORMATION OF
INDUSTRY4WRD PROGRAM
2019-2021
2019
Industry4WRD-RA Steering Committee (S. Dir. MITI)
Industry4WRD-RA Technical Committee (Dir MITI)
Secretariat(Industry 4.0 Unit, MITI)
Assessment Body A
Assessment Body B
Assessment Body C
Assessment Body D
Secretariat(MPC)
Main Responsibilities (TC)
• Create guidelines for selections of SMEs eligible for government-funded RA.
• Evaluate and recommend Assessment Body (AB) application to SC.• Consolidate and validate assessment reports and provide
recommendation/summary report to SC.• Recommendation to SC for communication plan
Members (Government & Industry)MITI, MIDA, MATRADE, SME Corp, DoSM, MDeC, CyberSecurity, MPC, NanoMalaysia, FMM, SMEA
FFunding
(MOF)
Industry4WRDCouncil
(YBM MITI)
RRegulatory
(MITI)
TTechnology
(MESTECC)
IInfrastructure
( KKMM)
SSkills
(MOHR/MOE)
Secretariat(Industry 4.0 Unit, MITI)
High Level Task Force(TKSU MITI)
Bi-Annual
Quarterly
Governance Structure of Readiness Assessment
Main Responsibilities (SC)
• Monitor implementation and report of RA & IP progress to TWG-R• Policy direction & risk management of RA & IP• Approve changes in target, achievement, cost of RA & IP• Selection of ABs & endorse of companies of RA & IP and• Endorse guidelines of Industry4WRD & IP proposed by TC.
Members (Government & Industry)MITI, MOF, MEA, MESTECC, MED, MPC, FMM, SMEA
A Verify/Validate companies applications and communications with companies and AB’s
BManaging the selection and qualification of the Assessment Body (AB)
C
DTo be involved in the Promotion / Outreach program
THE ROLE OF MPC AS A SECRETARIAT FOR INDUSTRY4WRD RA
CTo monitor assessment process by AB’s and analysis of RA reports
ETo be involved in other tasks related to other requirement by MITI/TC/SC, including the reimbursement?
Roles of MPC’s as Secretariat to TECHNICAL COMMITTEE
Provide indication on the level of readiness for an
organization in the adoption of Industry 4.0 elements
To identify areas of improvement in each dimension
To recommend further actions to improve efficiency and
productivity
To develop industries adoption baseline
Proposed as pre-requisite for future industry 4.0
incentives
Gaps
Improve
National baseline
Pre-requisite
The Myi4.0-RA is aimed to…
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3
4
5Assess1
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Industry4WRD - Readiness Assessment
A comprehensive programme to help firms assess their capabilities and readinessto adopt Industry 4.0 technologies and processes, using a pre-determined set ofindicators to understand their present capabilities and gaps
*The module for manufacturing related services (MRS) is expected to be included in RAby Q4 2019.
WHAT IS INDUSTRY 4.0
Source: Prof. Christian ROSER,KIT
Censor, Data
collection
IoT
Big DataAI
Robotics
Physical Space
Cyber Space
Connected Industry
Digital data & info exchange Advanced Technology Everything Real-Time
Connected & Collaborated Through Cyber Physical System
(CPS)
T H E I 4 . 0 E N A B L E R S
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T H E B E N E F I T S
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06 01
02
0304
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INCREASE SALES/ REVENUE AND HIGH VALUE ADDED ACTIVITY
BEYOND HUMAN COMPETENCIES AND REAL TIME CYBER PHYSICAL SYSTEM
ELIMINATE WASTE AND HIDDEN COST
INCREASE PRODUCTIVITY AND
ELIMINATE DATA MANIPULATION
IMPROVE PEOPLE’S ATTITUDE & SKILLS
REDUCE FOREIGN LABOR & ON TIME
DELIVERY (OTD)
The Assessor
Training
Exam
Certified Assessor
Mock Audit /practical
The Company
Public announcement/ Awareness
Company register interest
Myi4.0-RA Technical/Steering Committee Review/Endorsement
Assessment process takes place
Prepare full report-Shift Factors, Band, Pain Points and Recommendation
Table to Myi4.0-RA Technical/Steering Committee Review/Endorsement
Inform AB’s & Details
Apply online atwww.miti.gov.my/
industry4wrd
T H E R E A D I N E S S A S S E S S M E N T ( R A ) P R O C E S S F L O W
Selections & Qualifying
Industry4WRD Readiness Assessment
Sales Turnover :
RM300,000 - RM50 Million
and/or employees :
5 - 200
60% Malaysian equity
Selection
CriteriaMANUFACTURING
MANUFACTURING RELATED SERVICES
Sales Turnover :
RM300,000 - RM20 Million
and/or employees : 5 - 75.
OWNERSHIPS
Focus Sectors
• Automotive• Transport• Textiles• Pharmaceutical• Metal• Food Processing• Services
The leading industry in Malaysia’s
manufacturing Sector, contributing significantly to the country’s exports and employment
Electrical & Electronics
One of the key areas for growth and development, focusing on high value-added and high technology
industry
Machinery & Equipment
One of the catalytic industries in the
country with rapid growth due to the
availability of oil and gas as feedstock
Chemical
Spans across an extremely wide
range of industries from rubber and latex, plastics, machinery and
engineering support and electronics
Medical Devices
A strategic sector with high growth potential in the
country’sindustrialisation and
technological development programme
Aerospace Other Sectors
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C R I T E R I A M O D E L
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Focuses on peopleand the entireorganisation.
Emphasis on strategies towardshaving a right setof workforce
Focuses on management systemin running businessoperations, supplychain and productlifecycle.
Emphasis onsmart and strategicpublic-privatepartnerships, security,sustainability andproduct co-creation.
Focuses on theapplication ofintelligent, connectedand automatedtechnologies.
Measured at threedifferent layers of thebusiness: Shop floor,enterprise and facility
PROCESS
• The manufacturing system is so flexible that it can cater for mass customization with very short change over time and manned by 1 operator only. (SMARTLine: laminated product for pastry product), is equipped with IoT, SCADA System and Vision System with analytical capability for problem detection within the production line and give instant alert signal.
• Horizontal Integration-An integrated supply chain system has been implemented across the whole organization except the interface with the customers & suppliers.
TECHNOLOGY• All business management systems (ERP,
CRM, HRM, and Financial) within the enterprise are computerized and connected through internal network, but without analytical capability.
• Has performed Vertical integration by having all production process machines integrated to one MES system in the production shop floor
• Technology pillars adopted
o System integration
o Cybersecurity
o Big data analytics
o Internet of Things (IoT)
o Cloud
PEOPLE
Top Management Technology Savviness
• The management and technical personnel-in-charge are very technology savvy. A clear vision, direction and a documented strategy to adopt the I4.0 in its core business have been put in place.
• The entire team is aggressively driving the company towards having an intelligent production plant that fully self-managed, self-administered with virtually no human intervention in the near future.
Summary– Findings at XYZ Sdn Bhd
Snapshot of findings
SUMMARY – Recommendation at ABC Sdn BhdPROFILE SCORE
HIGHLIGHT AND LOWLIGHT
Learner(49 %)
HIGHLIGHT
Management shows interest to excel and move forward, willing to take time to learn more about the i4.0 concepts
A lot of new opportunity can benefit the organization once i4.0 concepts being adopted including adopting a new business model in digital sales and marketing and improving the overall business operation management
LOWLIGHT
Pain points are mainly related to the operational issues (raw material, machine unplanned downtime and Human issues-skill, discipline and mind-set)
PAIN -POINT
1. Higher downtime and lack of automation during process changeover.
2. Manual production planning
3. Real time production performance monitoring is not visible.
BEST PRACTICES BY THE INDUSTRIES
1. Quick change system with automated machine
2. ERP, MES and 3D Experience Platform
3. Dashboard monitoring system with ANDON
OPPORTUNITIES
1. Implement vertical and horizontal integration.
2. Human Capital dan Development Plan-Training on i4.0 at all level
Industry4WRD RA Profile and Scoring
Process Technology
People
READINESS PROFILE SCORE GENERAL DESCRIPTION
Conventional 0% - 20% Operation remains “as is” with no intention or initiative into Industry 4.0 adoption
Newcomer 21% - 40% Has interest to pursue Industry 4.0 but with none or very minimal efforts or initiatives
Learner 41% - 60% Has interest to pursue pilot line Industry 4.0 adoption in operation, with existence of planning and strategies, efforts or simple and patches of initiatives being implemented. Ready for some system adoption
Experienced 61% - 90% Has pursued small to medium scale Industry 4.0 adoption initiatives in operation, horizontal integration and ready for large scale system adoption
Leader 91% -100%
Has implemented large scale Industry 4.0 adoption initiatives (company-wide) and system integration
T H E I N T E R V E N T I O N P R O C E S S F L O W
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Onsite assessment
Apply for
financial incentive
(MIDA, MIDF, BPMB,
SJPP/PROKHAS, etc.)
Evaluation Report by
Technical & endorsement at
Steering Committee
RE
AD
INE
SS
AS
SE
SS
ME
NT
BU
SIN
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S
INT
ER
VE
NT
ION
Development of Project Proposal-
ROI, Programs and Selected KPI
(OEE), Budget Costing,
implementation Plan
Company Received
RA report
Company Establish Project Team
and Seek Technology and
Solutions Provider
Carry Out Detail Study from RA
Recommendation
Project Implementation
Post Project Assessment
for Effectiveness
Evaluation
INDUSTRY4WRD GRANT
Problem
Outcome Solution
URL: http://www.miti.gov.my
URL: http://www.mpc..gov.myDownload: M Productivity Mobile App from Apple Store or Play Store
Readiness Assessment Online Applications
Industry4WRD Readiness AssessmentOnline Application
• Part 1 of 4 –• Company Profile
• Company’s main activity• Manufacturing
• Part 2 of 4 – Interest in Industry 4.0
• Part 3 of 4 – Technology Know How
• Part 4 of 4 – Term of Agreement
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SPPE
• Enhancing SMEs towards more competitive in the productivity management system application and innovation program.
• Ability to feature best practices and long-term productivity achievements
OBJECTIVES OF SPPE
28Malaysia Business Excellence Framework
1. UNDER MPB INITIATIVE- ENTERPRISE LEVEL, STARTED IN 2017- 2021
2. INTERVENTION GRANT FOR SMEs IN PRODUCTIVITY IMPLEMENTATION IMPROVEMENT PROGRAM
3. EACH SMEs ALLOCATED WITH RM40,000 WITH TRAINING & CONSULTATION PACKAGE
4. COMMITMENT FEES OF RM2,000-RM5,000 PER COMPANY
O V E R V I E W - S P P E
ITEM/YEAR 2017 2018 2019 2020 TOTAL
NO. OF SME s 125 150 150 175 600
ACTUAL 123 152 171 - 446
BEST PRACTICES 12 15 15 18 60
ALLOCATION RM 5m RM 6m RM 6m RM 7m RM 24m
Intervention ProgramCases and Other Remarks
5S/QE Focusses on Quality Environment 5S program- Seiri, Seiton, Seiso, Seiso dan Seiketsu.
Process Improvements
•Innovative & Creative Circles/ Team Excellence•Six sigma process improvement •Kaizen and Others
LEAN Management Reduced wastage at the work place
Quality System or Standard:
ISO/GMP/FSMS/ HACCP
•QMS ISO 9001:2018•EMS ISO 14001:2012•OHSAS 18001•Standard GMP/HACCP/ ISO 22000 and Others
TPM
Total Productive Maintenance refers to machine/asset maintenance for the improvements of OEE (Overall Equipment Effectiveness)•Level 1-6
PLWSProductivity-Linked Wage System – system that measures wages based on productivity
Others
•IT development system or Digitilisation•High Performance Companies Through Process Improvement, Business Management and Accounting
SPPE INTERVENTION MODULES
PHASE 1 ACTIVITIES
1 SMEs Qualifications and Engagement2 Productivity Culture Team Building3 Pre-Diagnostics and Business Excellence Assessment
PHASE 2
4
Interventiona. Base Line Study (PGM) & Action Plans a. Training- Core Competenciesb. Consultation and Advisory Visits
5 Monitoring 6 Life Long Learning Engagement Program- Bench Marking
PHASE 37 Post-Diagnostic- BEF Reviews8 Selection and Sharing of Best Practices
6-1
0 m
on
ths
Scoring Interpretation
SCORE BAND INTERPRETATION
800 and above Excellent Refined adoption of BEF and demonstrated
significant impact on performance and exceeding
many international standards and benchmarks700 - 799
600 - 699
400 - 599
200 - 399
Below 200
Best in Class
Good Practice
Achiever
Practitioner
System
Implementer
Initial Adopter
Integrated adoption of BEF with significant impact
on business performance
Aligned adopted BEF and able to link to major
business performance
Adopted BEF with sporadic achievements
Early adopter of BE with necessary systems/
standards implemented
Getting started with relevant health check
assessment
EARLY
STAGE
MATURE
STAGE
INTERMEDIATE
STAGE
REGISTRATION
IDENTIFICATION/SELECTION
CONTRACT
INTERVENTION/EXECUTION
CLOSURE/MONITORING
POST DIGNOSTICS
PROCESS FLOW- SPPE/MPB
PRE-DIGNOSTICS
SELECTION OF BEST
PRACTICES
PHASE 1
PHASE 2
PHASE 3
SHARING
APPROVAL- TC
ENDORSEMENT - SC
CONSULTANT SELECTIONOFFERING & PROPOSAL
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Components of Pre & Post Diagnostic – PGM/BE
Productivity Gain Measurement
Elements of BE:1.Leadership2.Planning3.Information4.Customer5.People6.Process7.Results
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Sekreteriat SPPE-MPB
Perbadanan Produktiviti Malaysia (MPC)
Lorong Produktiviti Off Jalan Sultan,
46200 Petaling Jaya, Selangor Darul Ehsan.
Tel: 03-7955 7266 Faks: 03-03-7957 8068
PIC.:
Zainudin Elias ([email protected])
Abdul Malek Mohamad Aripin ([email protected])
Further information…….
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MINISTRY OF INTERNATIONAL TRADE
AND INDUSTRY
MPC Industry4WRD Unit