LNN GROUP

MAN POWER SUPPLY

COMPANY PROFILE

CONTENTS

1. Company Policy and Objective

2. Company profile

3. LNN Group of Companies

4. Profile of Key Personnel

5. What is the Competitive Edge in Human Capital Operation

6. Benefits of Outsource Employees

7. Rules and regulations

8. Time Frame

POLICY & OBJECTIVE

To be a LEADER in Outsource Management

To create a NEW CONCEPT of using the core business as a bridge to move towards manufacturing business

Objective:

Target:

Policy: LINKING NEW NETWORK

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COMPANY’S PROFILE

Established: October 2000

Located 3C, Tingkat 3, Plaza MPK, Jalan Pos Baru, 41300 Klang, Selangor Darul Ehsan

No. of Employees 800 workers

Paid up capital RM550,000 ordinary share of RM1.00 each

Core business Outsourcing Agent (Local and Foreign)

Managing Director Mr. Ng Cheng Ho

Company Secretary Miss Lim Puay Chuan

Micro Management Services Sdn Bhd

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LNN Group of Companies

LOCALCONTENT

AGENSI PEKERJAAN LNN

LNN TRADE WIND

LNN SYSTEM

RESOURCES RESOURCESRESOURCES

LNN GROUP

SPECIALIZATION

• Recruitment and

documentation

• Electronics

• Home appliances

• Services

• Automotive

NADA PERSADA

RESOURCES

LOCALCONTENT

LOCALCONTENT

FOREIGNCONTENT

• Factory worker

•Service industry

LNN Group of Companies

Total number of employee:

0

200

400

600

800

1000

1200

2002 2003 2004 2005 2006 2007 2008

Workers

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Profile of Key Personnel

Ng Cheng Ho• Managing Director of LNN Group of Company • Co-founder of LNN Group• 12 years experience in labour supply line

Ng Lay Leng

• Marketing Division Director

• Founder of LNN Group

• 17 years experience in labour supply line

Profile of Key Personnel (Con’t)

Lee Shian Li

• Business Development and Planning of LNN Group

• 5 years experience in Corporate Finance with one of the listed

company in Malaysia

• 3 years experience in outsourcing Company and build up the

automotive industry network for LNN System Sdn Bhd

Profile of Key Personnel (Con’t)

Darren Chong Shook Fui

• Business Adviser of LNN Group

• more then 5 years experience in retail and manufacturing local

and overseas business.

• Human Resource Training and development

Profile of Key Personnel (Con’t)

Raja Ahzian

• HR Coordinator of LNN Group

• 31 years HR experience with Multinational Company

• Currently in charge of Company’s administrative procedure and

interview candidates

Profile of Key Personnel (Con’t)

Ong Soo Yeak

• Head Supervisor of the Group

• more then 10 years experience with Multinational Company as

production planner

• Expert in planning and set up the factory procedure for factory

workers

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Group Financial Highlight

02000400060008000

100001200014000160001800020000

2003 2004 2005 2006 2007*

Revenue RM ('000)

• The decrease of the revenue from 2007 compare with 2006 is due to decrease the order/requisition

from the existing Company which affect by economy slow down. Return to Contents

Company History

LNN Trade Wind (9/1999)

LNN Trade Wind Sdn Bhd (10/2000)

Agensi Pekerjaan LNN Sdn Bhd (9/2003)

LNN System Sdn Bhd (4/2005)

Nada Persada Sdn Bhd (7/2006)

LNN Group of Companies

Corporate Clients from 2000 till up to date Panasonic HA Air-Conditioning (M) Sdn Bhd

Panasonic AVC Networks Kuala Lumpur Sdn Bhd

Matsushita Compressor and Motor Sdn Bhd

Matsushita Electronic Motor (M) Sdn Bhd (SP-Kedah)

Matsushita Display Device Malaysia Sdn Bhd

Matsushita Industrial Corpn Sdn Bhd

Sony Technology (M) Sdn Bhd

PHN Industry Sdn Bhd (Automotive Industry)

Maxell Electronic (M) Sdn Bhd

Flextronic Technology (Shah Alam) Sdn Bhd

Magnificient Diagraph Sdn Bhd (Carrefour Malaysia)

Sanden Air Conditioning Sdn Bhd

Autem Sdn Bhd

What is the Competitive Edge in Human Capital Operation

Attendance

Benefits

Retaining

Customers’ needs

What is the Competitive Edge in Human Capital Operation

Attendance Review LNN

Transport Control Transport / focus Provide transport to workers

Location Location constraints Provide accommodation within the factory areas

Commitment Frequent staying away due to family commitment

Our workers are from different states, e.g. Sabah, Sarawak, etc

What is the Competitive Edge in Human Capital Operation

Retaining Review LNN

Administration flaws

Due to administrative flaws

e.g. Salary not in time, lack of communication, accommodation not conducive

Salary according to the agreement with our staff

Management Office near to factory

Salary inequality

Salary inequality

-No standard salary

-Based on discretion

Salary according to agreement

No favoritism on gender discrimination

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Benefit of Outsource Employee

Company LNN

Human Capital No able to adhere to human capital requirement

e.g. EPF, Socso, etc

LNN pays to all employees after 6 months duration

Allowance Not all competitors pay the attendance allowance

Attendance allowances incentive to workers

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Customers Needs

Problem LNN Service

Attendance HR are busy due to inability e.g. Attendance, discipline and etc

Provide supervisors without cost incur to the Company

Discipline Customers’ needs are not capture pm regular basic

Our supervisors also act as coordinator between the company and the staff

Coordination Attendance flaws create downtime

Buffer system

Immediate replacement, terms required

Benefits of Men and Women

in our Employment

Medical treatment

EPF and SOCSO

Free transport

Uniforms andsafety shoes

Accommodation

Basic salary (attendance+

allowance)

Benefit of Outsource Workers

Comparison of permanent and contract workers

(Local worker)

No. Particulars

Permanent workers

Casual

worker

1. Salary RM 550/month RM ??/ per day

2. Overtime work (%) 1.5 1.5

3. Bonus (assumption) 2 months - Nil -

4. EPF 12% - Nil -

5. SOCSO 1.5% - Nil -

6. Personal insurance - Nil - - Nil -

7. Medical checking - Nil - - Nil -

8. Medical benefit Yes - Nil -

9. Accommodation (estimate) RM 80/month - Nil -

10. Transportation (estimate) RM 125/month - Nil -

11. Worker replacement period 2 weeks - Nil -

12. Production cost planning - No - Efficiency

Advantages of the Casual Workers

1. More cost effective – can be adjusted according to production plan

2. Supporting the production with a much effective and efficient ways of recruitment

3. Company management is free from tedious works i.e. payroll, management of the workers, long term workers benefit plan and etc.

Rules and Regulations

Company Procedures

and

System Implement in the Factory

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Supervisor responsibility

Overseeing the operation of contract workers

Monitor the daily attendance and report to HR Department

Monitor workers’ discipline in the factory

Attend meeting with production/ HR Department as and when needed

Liaise with line leader on workers’ situation in line

Weekly report to the company manager

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Recruitment System

• Recruitment

1. Fill in application form and brief interview in LNN office

2. Successful candidates will be given a short briefing on rules and

regulations of the company and salary

3. Application form will be sent to factory for comments and short listing.

4. Short listed candidates will be sent to factory for interview

5. Successful candidates will be sent for urine test and one day training

Operation System (Factory)

• Arrangement

Supervisor – LNN(full time in factory)

Manager (Office)

Leader LNN

Line A

Leader LNN

Line B

Leader LNN

Line C

Buffer System

Stand by buffer to replace worker absent/ MC

number of buffer depend on the average attendance

percentage (estimate 3-4%)

Immediate replacement of worker into line

Monthly report will be sent to HR Department for

verification

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Training System

Successful candidates will be sent for urine test

Workers will be given uniform and safety equipments

General training on the safety rules and regulations

will be conducted by the supervisor

Workers are required to undergo the training for 2

days before reporting for duty

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Time Frame for Local workers

Day 1 Day 2 Day 5 & 6Day 3 Day 4

Order from HR

Interview in Factory

Recruitment Time Frame

On going interview in office

Urine test & Training

Time Frame for Foreign workers

1 week 1 week 2 weeks1 week 2 weeks

Confirm from Co.

Interview and selection

Applying and buying of calling visa

Foreign agent to prepare passport

and medical report

Recruitment Time Frame

Touch down of foreign workers

Receiving the calling visa and VDR

2 weeks

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