THE PRODUCTIVITY PROJECT

The National Productivity Centre has been established as a joint project between the United Nations SpecialFund and the Federation Government with the International Labour Organisation appointed as the executingagency.

2. The purpose of the project is to train managers, supervisors, trade union executives and others as ameans towards:

(i) raising standards of management, including supervision at all levels; and

(ii) improving efficiency of industrial operations with particular reference to methods of increasingproductivity, of improving quality of output, of lowering costs and of developing constructive labour/management relations.

3. The Centre also serves as an adviser to Government and private industries on matters within thecompetence of its staff covering all aspects of productivity improvement techniques including disseminationof technical information about production methods. It also serves as a forum where the organisational andmanagerial problems of industry can be discussed.

4. Responsibility for administering and financing the Centre rests with the Ministry of Commerce andIndustry acting with the advice and assistance of an Advisory Council composed of representatives fromGovernment Ministries, University of Malaya, Employers' Organisations and Trades Unions.

INTERNATIONAL LABOUR ORGANISATION ADVISERS

Dr Avro Pukkila Ralph Bilberg

Harold WhitakerII..O Chief of Project

F. Taieth S. H. Arntsen

REPORT OF THE NATIONAL PRODUCTIVITYCENTRE 1965

March 1965-February 1966

This is the 4th Annual Report of the National Productivity Centre forthe period March 1965-February 1966, coinciding with the fourthoperational year under the Plan of Operation agreed to by the UnitedNations Special Fund, the International Labour Organisation and theMalaysian Government.

Despite the shortage of foreign and local personnel in the Centre,it has been a most interesting and eventful year as we ventured intoareas away from Kuala Lumpur. The Centre's staff conducted coursesin Sabah, Sarawak, Johore, Perak and Penang totalling twentv-eiehtformal courses which were attended by four hundred and eightyparticipants.

The Centre is pleased to note the increasing demand for managerialtraining in the industrial and commercial sectors, and at times theCentre had to reluctantly turn down requests to conduct courses awayfrom Kuala Lumpur due to limited staff and finance. It is envisaged inthe near future that with the setting up of the new Council under theNational Productivity Council (Incorporation) Act, 1966, the Centrewill be able to expand its training activities to all States of Malaysia.

With the enthusiastic support by the industries two ProductivityBulletins were published. It is hoped, that, in years to come, thebulletins will be the mouthpiece of the Industries and the Centre.

It is gratifying to state that the services of the officers of the Centreare being increasingly sought after by various private sectors to assistthem in improving and modifying their existing systems to expand theirproductive capacity to cope with the increasing demands for betterquality and services.

The Centre wishes to express its sincere appreciation to the AdvisoryCouncil, the various State Governments and Guest Lecturers who havereadily rallied to its assistance in bringing the activities of the Centreto the limelight.

With the continued full co-operation and assistance of the AdvisoryCouncil Members, industries and staff, the Centre feels confident thatthe future holds promise of still greater progress at the present highstandard of service.

NATIONAL PRODUCTIVITY CENTRE,PETALING JAVA,

SELANGOR,MALAYSIA

NATIONAL PRODUCTIVITY CENTRE ADVISORY COUNCIL (Alternate) Enche' Mansor bin Othman Majlis Amanah Ra'ayat

Members who served on the Council during the year under review Memberwere as follows:

Chairman ... Y.M. Raja Mohar bin Raja Secretary,Ministry of CommerceBadiozaman and Industry

Members ... Enche' Junid bin Haji Abdul Ministry of Commerce andRahim Industry

Enche' Thong Yaw Hong ... Economic Planning Unit, PrimeMinister's Department

Enche' Ismail bin Teh ... Ministry of Labour

Adviser

Secretary

Enche' Linn In Hua

Enche' H. Whitaker

Enche' S. A. Abishegam ...

United Chambers of Commerce

IIX) Chief Adviser

Director, N.P.C. (until October1965)

Observer

Enche' Abu Kassim bin Haji Director, N.P.C. (from OctoberMohamed 1965)

Enche' D. Blickenstaff ... United Nations Regional Repre-sentative

(Alternate)

Members

Enche' J. A. T. Perera

Enche' S. S. Nayagam

Enche' T. P. D. Nair

Dr George Lowe ...

Enche' Timothy Chin

Enche' J. S. Duthie

Malayan Council of Employers'Organisation Terms of Reference

Malayan Trades Union Congress "To advise the Minister of Commerce and Industry on—

University of Malaya

National Chamber of MalayanManufacturers

Dato' Abdul Rahman bin Majlis Amanah Ra'ayatMusa

(a) training and other programmes that will best serve specificlocal requirements and the country as a whole, having regardto the possible changes in the economy of the country;

(fc) ways and means of publicising, the aims and objects of theCentre and obtaining co-operation of employer and employeegroups; and

(c) matters connected with the administration of the Centre ingeneral."

The Council met on four occasions and during this period, a paperembodying a "Crash Programme" for the Centre was put up.

This paper was then tabled before Cabinet and in the third quarterof i965 Cabinet approved this programme in principle.

Crash Programme

The effects of the approval in principle meant—

(i) the granting of autonomy to the Centre;

(ii) the increase in Malaysian counterpart strength of six moreofficers, in addition to the existing establishment and includinga post of Deputy Director;

(iii) the addition of three new training units, viz.—

(a) Industrial Relations Unit;

(b) Sales and Marketing Unit;

(c) Light Industry Service Unit,

(iv) the extension of the Centre's activities to Sabah and Sarawak.

INTERNATIONAL STAFF

The full complement of ILO Advisers comprised of:

(1) Mr H. Whitaker (U.K.) ... Chief of Project

(2) Mr F. Taieth (Norway) ... Supervisory Training Adviser

(3) Mr H. Arntsen (Norway)

(4) Mr R. Bilberg (Norway)

(5) Dr A. Pukkila (Finland)

Industrial Engineering Adviser (until 18thJanuary, 1966)

Management Accounting Adviser (until 30thDecember, 1965)

Industrial Engineering Adviser (until 30th April,1965)

MALAYSIAN COUNTERPART

(1) Enche' S. A. Abishegam ... Director—Counterpart to ILO Chief of Project(until October 1965)

(2) Enche* Abu Kassim bin Hj. Training and Investigating Officer—SupervisoryTraining Counterpart (Acting Director from16th October, 1965)

Training and Investigating Officer—IndustrialEngineering Counterpart (Acting DeputyDirector from 16th October, 1965)

Mohamed

(3) Enche' Yip Phooi Thong

(4) Enche' V. Rasalingam

(5) Enche' Lee Soh Hoong

Che' Zainon binti Zainal Abidin served as Information Officer.

Training and Investigating Officer—ManagementAccounting Counterpart

Training and Investigating Officer—LightIndustry Service

RECRUITMENT, CONFERENCES AND ADVANCEDFELLOWSHIP

Recruitment

The National Productivity Centre is in the process of recruitingadditional Training and Investigating Officers.

Conference

Enche' Abu Kassim bin Haji Mohamed represented the Ministry ofCommerce and Industry at the formation of the Perlis MalayContractors' Association in Kangar, Perlis in April 1965. The Director,Enche' S. A. Abishegam, attended the inter-regional Seminar onIndustrial Relations organised by the ILO and the Danish Ministry ofForeign Affairs in Denmark in June 1965.

Management Accounting UnitNo. Course Venue

1 Cost Accounting and Budgetary Petaling JayaControl

1 Cost Accounting

1 Budgetary Control ...

1 Cost Accounting

Jobore Bahru

Petaling Jaya

Date

April 1965

July 1965

November 1965

February 1966

Survey

At the request of the Advisory Council, the Director and ILO Chiefof Project carried out a survey in Sabah and Sarawak in May 1965on productivity training.

FellowshipThe Training and Investigating Officer (Industrial Engineering), Enche'Yip Phooi Thong, left for United Kingdom. Switzerland, Norway andThailand on a six-month Advanced ILO Fellowship in early 1965 andreturned in July 1965.

TRAINING SUMMARY

Supervisory Training UnitNo. Course

Industrial Engineering UnitNo. Course2 Quality Control Courses Part II .

1 Evening Film-Show on "Safety" .

1 Quality Control Course Part I .1 Introduction to Management1 Appreciation Productivity Course.

VenuePetaling Jaya

Kuching, SarawakJesselton, Sabab ...

DaleMay 1965 andNovember 1965

July 1965August 1965September 1965November 1965

1 Institute—Groupwork and Discus-sion Leading

1 Institute—Job Simplification forSupervisors

1 Basic—Job Simplification for Super-visors

3 Institute—The Supervisor as aTrainer and Instructor

2 Basic—Groupwork and DiscussionLeading

2 Basic—The Supervisor as a Trainerand Instructor

3 Institute—Leadership and HumanRelations

4 Basic—Leadership and HumanRelations

1 Plantation Management Course—Personnel Management

Venue

Petaling Jaya

Jesselton, Sabah ...Petaling Jaya

Kuching, Sarawak

Petaling Jaya

Kuching, SarawakJesselton, Sabah ...

Petaling Jaya

Date

March 1965

April 1965

May 1965

November 1965February 1966

May and June1965

May 1965

September 1965

June, July andAugust 1965

June 1965

September 1965November 1965

August 1965

GeneralNo. Course Venue Date

3 Technical Courses for Malay Con- Kuala Lumpur ... July, Septembertractors and October

19651 Commercial Management and „ „ ... July 1965

Salesmanship Course—MalayanRailways

1 One-day Public Seminar by Mr J. „ „ ... „ „Marsh (Director, British Institute ofManagement)

In addition to the above formal courses, the officials of the Centre,on invitation, addressed members of the following nine organisationson one or more occasions—

Australian Graduates* Association.

Amalgamated National Union of Local Authorities Employees.

Bank Negara Malaysia—Executives' Training Courses.

F.L.D.A. Training School at Sungei Dusun, Tanjong Malim.

Government Staff Training Centre—Weekend Senior Officers'Course.

Ministry of Health—Public Health Practice Course.

National Mining Workers' Union of Malaya.

Rural Health Training School, Rembau, Negri Sembilan.

Royal Malaysian Police Training College, Kuala Kubu Bahru.

The Australian Society of Accountants, the Institute of CharteredSecretaries and the Certified and Corporate Accountants.

INDUSTRIAL ENGINEERING UNIT

Production Management ConferencesTwo Production Management Conferences were held for participantsfrom the Centre's five Production Management Courses conductedsince 1962. The two-day conference reviewed the progress made byparticipants in their respective enterprises after attending the Centre'sProduction Management Courses. The participants decided to meetoccasionally at the Centre and also visit each other's organisations.

Quality Control Course Part IIThis Quality Control Course Part II is a continuation of the "QualityControl Course Part I" conducted during the latter part of 1964. Sixteenparticipants attended the course. The course was phased as follows—

(1) Theoretical Training—{3rd to 14th May, 1965).(2) Practical Training in Own Plants—(17th May to 10th July,

1965).(3) Final Seminar—(14th and 15th July, 1965).

At the final Seminar in July, nine practical projects were presentedby the participants.

Quality Control Course Part IFollowing repeated requests made by manufacturing organisations, theCentre conducted a Quality Control Course Part I in August 1965phased as follows—

(1) Theoretical Training—(16th to 27th August, 1965).

(2) Practical Training in Own Plants—(30th August to 23rdOctober, 1965).

Twenty-five representatives with immediate Quality Control responsi-bilities attended the course.

Quality Control Course Part ItThe Quality Control Course Part II was conducted during the secondhalf of November. Eighteen participants attended the course. It wasphased as follows:

(1) Theoretical Training—(15th to 26th November, 1965).(2) Practical Training in Own Plants—(29th November to 7th

January, 1966).(3) Final Seminar—(13th to 14th January, 1966).

Factory Visit by the Work Sludy Course Participants.

MANAGEMENT ACCOUNTING UNITThe Management Accounting Unit conducted four formal coursesduring the period under review. In addition to the formal courses.industrial visits were made to organisations whose participants attendedthe courses and practical projects were initiated by the officer and ILOAdviser of this Unit

Cost Accounting and Budgetary Control CourseThis course was attended by 18 participants from manufacturing,commercial, mining, rubber, publishing, airways, hotels and accountingfirms. The following guest speakers assisted in giving lectures duringthe course.

Messrs W. C. Marshall. I.B.M.

Messrs A. F. Noppert, Business Systems and Equipment,

Messrs S. Senn. Nestle's Co. Ltd.

Messrs I. H. Hansen, East Asiatic Co.,

Messrs W. R. Stewart, M.I.D.F.L.

(1) Theoretical Training—19th April to 17th May, 1965.

(2) Practical Training—May to September 1965.

Cost Accounting CourseThis unit for the first time conducted a Cost Accounting Course inJohore Bahru for 28 participants. This course was conducted after

several requests were received from firms in that region. Mr A. F.Noppert of Business Systems and Equipment, assisted in giving lecturesduring the course.

(1) Theoretical Training—19th to 29th July, 1965.(2) Practical Training—July to October 1965.(3) Seminar—8th October, 1965.

The Hon'ble, the State Secretary, Johore, officially declared the courseopen. Eight projects were presented and discussed during the Seminar.

Budgetary Control CourseFollowing the enthusiastic response to Cost Accounting Course heldin July in Johore Bahru, a Budgetary Control Course was conductedfor 15 candidates.

The following guest lecturers assisted in giving lectures during thecourse.

Mr Johny Moo—International Computers and Tabulators.Mr M. J. Kerger—Hume Industries (FE) Ltd.(1) Theoretical Training—1st to llth November, 1965.(2) Practical Training in Own Organisation—November 1965 to

May 1966.

Six projects were carried out by participants with the assistance of theProductivity Centre.

Cost Accounting CourseA Cost Accounting Course was conducted for 20 participants fromCommerce and Industry.

Guest Speakers were—Mr A. F. Noppert, Business Systems and Equipment.Mr F, G. Bendell, National Cash Register.

Mr L. A. W. Edward, International Computers and Tabulators.

Mr A. Gopalakrishnan, Alcan Aluminium Ltd.

Mr Ramchand, Imperial Chemical Industries Ltd.

(1) Theoretical Training—14th to 25th February. 1966.

(2) Practical Training in Own Plant—28th March to 30th April,1966.

At the time of reporting, the Training and Investigating Officer isbusily coaching and giving practical help to four participants to setup their projects.

Participants of the Cost Accounting Course, Johore Bahru.19th-29thJuly, 1965.

SUPERVISORY TRAINING UNIT

In the Supervisory training field, the Centre offered both "Institute"training and "Basic" training in the following subjects:

Group Work and Discussion Leading.

Leadership and Human Relations.

Job Simplification for Supervisors.

The Supervisor as a Trainer and Instructor.

The term "Institute" is applied to the training of trainers. Thetraining is for a period of 10 full days for firms having 10 or moresupervisors. At the conclusion of the training the successful participantsare encouraged by the Centre to establish in-service supervisory trainingin their respective organisation.

The Basic Supervisory Course is meant for individual training. Thiscourse covers a period of 15 hours for each topic.

The Supervisory Training Unit of the Centre conducted 8 instituteand 9 basic courses during the period under review.

In-plant Training

The successful participants to the Centre's "Institute" courses haveconducted in-service supervisory training in their own respectiveorganisations. Sixty-six such in-plant training for 693 participants have

been carried out during this period. Participants for the followingcompanies conducted the training:

1. Bata Shoe Co. Ltd., Klang.

2. Eastern Smelting Co. Ltd., Penang.

3. Federal Development Land Authority, Kuala Lumpur.

4. Government Printing Department, Sabah.

5. Labour Department, Singapore.

6. MARA, Kuala Trengganu.

7. Malayan American Plantations Ltd., Kedah.

8. Malaysian E.M.E. Ministry of Defence.

9. Oxford University Press, Kuala Lumpur.

10. Perak River Hydro-Electric Power Co. Ltd., Ipoh,

11. P.W.D. Sabah.

12. R.A.O.C. Training Wing, Singapore.

13. Sabah State Railways.

14. United Plantations Ltd., Perak.

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Plantation Management Course—Personnel ManagementAt the request of the Vice-President of the M.P.I.E.A., the Centreorganised the above training which was held at the Centre's theatrettefrom 16th to 18 August, 1965.

Twenty-three managers and assistants from the various rubberplantations attended the course. This was the first course of its kindexclusively conducted for the managers. Guest lecturers who took partwere from the M.P.I.E.A., University of Malaya and the Ministry ofLabour.

Ministry of Defence

The Federation Electrical Mechanical Engineers of the Armed Forcesrequested the Centre to conduct courses for Senior Army Officers.After several discussions with representatives of the Ministry of Defencethe N.P.C. organised and conducted a special Institute course entitled"Leadership and Human Relations" at the Centre. The course wasconducted from 23rd August to 4th September, 1965.

GENERAL

Technical Course for Malay Contractors

Three technical courses for Malay contractors were held during 1965under the auspices of the Malay Secretariat, Ministry of Commerce andIndustry. The Centre designed the courses in conjunction with the RuralIndustrial Development Authority, the Public Works Department,Drainage and Irrigation Department, and the Attorney-General's office.

The three one-month residential courses were held at the IndustrialTraining Institute of the Ministry of Labour and were attended by64 Malay contractors registered with the P.W.D. under Class F and EX.

Commercial Management and Salesmanship Course—MalayanRailways

At the invitation of officials of the Malayan Railway, the Centreorganised and conducted a course entitled "Commercial Managementand Salesmanship Course" for commercial officers of the MalayanRailways from 5th to 9th July, 1965 at the Headquarters of theMalayan Railway Administration. Twelve officers attended this course.

Lecturers who took part in the course came from the MalayanRailway, University of Malaya, Shell Co. Ltd., and N.P.C. staff includingthe ILO advisers.

The General Manager, Malayan Railways commented that morecourses of this nature be conducted for his officers.

Sarawak

As a result of a preliminary survey carried out in Sarawak theSupervisory and Management Training Committee for Sarawak wasformed in Kuching with the Government Staff Training Officer as itsExecutive Officer. This group, together with the N.P.C., organisedthree training courses from September to October 1965.

The Courses were:

(1) Basic—"Supervisor as a Trainer and Instructor".

(2) Basic—"Leadership and Human Relations".

(3) Introduction to Management.

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In all ninety-six participants attended these training courses. TheDeputy Chief Minister of Sarawak, declared the training course open.The Chief Minister presented certificates of attendance at the closingsession during which high dignitaries including State Ministers, seniorgovernment officials and representatives of commerce and industry werepresent.

Sabah

The Acting Director of the Centre, Enche' Abu Kassim bin Hj.Mohamed, together with the ILO Supervisory Training Advisor, leftfor Sabah in November 1965. They conducted three courses, namely:

(1) Appreciation Productivity Course—Thirty-six top executivesfrom various organisations in Sabah attended this two-daycourse on 9th and 10th November, 1965.

(2) Institute Course—"The Supervisor as a Trainer and Instructor".Nine executives attended this intensive training course and fiveof them conducted in-plant training in their respective organi-sations soon after the course ended.

(3) Basic Course—"Leadership and Human Relations". Thirteenparticipants attended this fifteen-hour course.

One-Day Seminar by Mr John Marsh (Director, British Institute ofManagement). A public seminar was organised by the N.P.C. andconducted by Mr John Marsh, Director. British Institute of Management,on 30th July, 1965. The seminar held at the Dewan Tunku AbdulRahman attracted 300 executives. The seminar was officially declaredopen by the Hon'ble the Minister of Labour.

Mr Marsh was entertained to dinner during the same evening atHotel Merlin, Kuala Lumpur by some one hundred executives.

SPECIAL ACTIVITIES

Visit of the Director, B.I.M., Mr John Marsh

Mr Marsh visited Malaysia from 27th July, 1965 to 2nd August, 1965,under the auspices of the U.K. Department of Technical Co-operationand the U.K. High Commission. Besides the one-day seminar MrMarsh also held meetings with various organisations, employer bodies,N.P.C. Advisory Council, Chambers of Commerce, Manufacturers'Associations, Government officers and Ministers. He wound up histour with a talk to senior Government officials organised by theMinistry of Labour. Mr Marsh proceeded to Singapore for a one-weeklecture-tour in conjunction with the Singapore Institute of Management.

Malaysian Institute of Management

A growing interest in establishing a Malaysian Institute of Managementis actively supported by the Centre. At the Interim Council meeting ofthe Institute the Secretary of Commerce and Industry undertook togive full support and assistance from the Ministry. The Centre continuedto act as clearing house for the preliminary work in connection withthe Institute's formation.

Presentation of Certificates

The Centre held its annual Presentation of Certificates Ceremony on12th August, 1965, at the Industrial Training Institute, Ministry ofLabour. The Secretary, Commerce and Industry presented theCertificates on behalf of the Centre to 426 participants who attendedthe Centre's productivity courses. The ceremony was followed by lightrefreshment.

12

In addition, on 1st November, 1965, the Hon'ble the State Secretaryof Johore presented certificates to 15 participants who attended theCost Accounting Course conducted in Johore Bahru during July 1965.

A reception was held soon after the ceremony.

OPENING OF THE COST ACCOUNTING COURSEAND PRESENTATION OF CERTIFICATE,

JOHORE BAHRU

L-R: Messrs V. Rasalingam, H. Whitaker. the Hon'ble StaleSecretary of Johore Bahru, Dalo' Abdul Rahman, David Leeand Hussein bin Haji Noor.

PUBLICITY

Publicity of the Centre's training courses and activities were disseminatedby the Information Officer. The Centre wished to express its thanksto the press. Radio Malaysia. Television Malaysia and the Ministry ofInformation for their full co-operation in publicising the Centre'straining courses.

Radio ProgrammeThe staff of the Centre and course participants were interviewed onseveral occasions by the representatives of Radio Malaysia and thesetalks were broadcast both internally and overseas.

International PressThe Assistant Editor of the Asia Magazine visited the Centre andmaterials were made available to him for his article on MalaysianIndustrial Organisation.

A special TLO representative from Geneva spent sometime in KualaLumpur to take photographs of the activities of the productivity projecthere.FilmsPrivate organisations continued to use the services and facilitiesprovided by the Centre's Film Library, which expanded with theaddition of new training films.

LibraryThe Centre's Library maintained its services to the course participantsand lecturers.PublicationThe Centre produced its Productivity Bulletins for the first and secondhalf of 1965. The Centre appreciated the support by the Malaysianmanufacturers and commercial organisations which advertised their

13

products through this media. The publications were sent to overseasProductivity Centres, Malaysian Embassies. Foreign Embassies inMalaysia, Universities, local organisations and to individuals on request.

The Centre wishes to record its sincere thanks to all contributors ofarticles to the Centre's publications.

Staffing1. Puan Bidayah binti Mohd. All, Stenographer, left the Centre ontransfer to the Prime Minister's Department in August 1965.

2. Puan Habibah binti Baharom, Stenographer, left the Centre for apost in another organisation in February 1966.

3. Enche' Jamaluddin bin Kassim, Office-boy, left the Centre inDecember 1965, on reaching the age limit.

4. Puan Rohani binti Abdullah joined the Centre as a Typist inJanuary 1966.

5. Enche' Kharuddin bin Kassim joined the Centre as Office-boy inJanuary 1966.

14

Stall of National Productivity Centre.L-R: Messrs V, Rasalingam, Puan Zainon binti Zainal Abidin, Abu Kassim bin Haji Mohamed

(Director), Yip Phooi Thong and Lee Soh Hoong.

PART II

SUMMARY OF TECHNICAL REPORTS ON PROJECTS

INDUSTRIAL ENGINEERING UNIT

Presented at the Seminar U(h-15(h May, 1966

Checking of Raw Materials in Tissue Paper Factory

1. Range Chart was applied for test results on incoming raw material.The chart showed lack of control in the suppliers process and a trenddeveloping that, if not checked, would yield product outside thespecifications laid down by the buyer. The chart and the findings wouldbe used in negotiation with the vendor before the next lot of rawmaterial.

Sorting of Plywood

2. The final sorting of plywood before storage and shipping showedthat there were six different visual defects. The result of every daysorting was put down in a book, but no action was ever taken.

First step was to define and separate the different defects and tracethe reasons for them back to the different stages of production.

It was found that "Surfacing and Core Insufficiency" amounted toapproximately 60%, and it was mainly caused by careless operatorsin the assembly of veneer before the hot press. Instruction to workersand careful supervision had resulted in the following:

Period 24th to 31st May ... ... Rate of rejects=10.1%Period 3rd to 22nd lune ... ... Rate of rejects= 6.0%Period 28th June to 2nd July ... ... Rate of rejects= 5.4%

Bottling of Soft Drinks3. In bottling soft drinks, the manager wanted to use a control chartto keep an eye on the sugar content. Available instruments in thefactory did not give readings with sufficient accuracy. A moving RangeChart for monthly cost figures on sugar used, did not give the wantedinformation. Price functions distorted the picture, so the next experimentwas done by using quantity only based on the monthly inventory.

The chart showed that the inventory control was not accurate enoughto give the necessary information. The routine for inventory controlhad been changed to give more accurate data. The experimental meandetermined was very close to the expected mean; a new chart withcontrol limits was put up and used for control of sugar content.

Bonding Strength of Plywood4. The bonding strength of plywood is affected by many technicaland cost factors such as—moisture content, roughness of the coreveneer, mixing of the glue, spread of the glue, viscosity of the glue,assembly time, loading time, press temperature, pressure, pressing time,etc. This project is concerned with increasing the bonding strength.Due to all the factors influencing on the bonding strength, experimentsare still being conducted to increase bonding strength. A good qualitywas achieved by changing the formula for glue mixing but at a slightlyincreased cost.

Labelling Condensed Milk Tins5. Labelling tin was done by a machine and 4 operators at the speedof 150 tins per minute. The 4th operator checked the labels for defectsby taking samples of 48 tins (one case) and examining each tin.Approximately 30 cases were inspected during the day. The findingswere recorded on a form, and by the end of the day was sent to thelaboratory. The total rate of defects based on the last two months*

15

records was approximately 16%. There were 20 different causes fordefects, but one, "label out of square" amounted to 12.5%. As thepositioning of the label on the tin could be adjusted by the operatoron the machine, the following was decided to achieve a better result:

(a) Define a standard on "label out of square". So far this hadbeen left to the subjective judgment of the operator. Now1| mm was laid down as the limit and a gauge was provided.

(Z>) The operator inspecting the tin should put down the findingson a np-chart for each sample. The chart should be placed onthe machine in front of the operator. No control limits wereput down.

These two actions resulted in a reduction of "label out of square"from 12.5% and 0.65%, over a two weeks' period. Permanent controlcharts with control limits have resulted in a percentage less than 1%due to "out of square".

it was traced back to old, worn out brushes used when glueing thesole to the shoe. New, more narrow brushes were changed with theold ones. The management aimed to get the rate of defects down tohalf.

Testing Batteries

7. In a battery factory 4 different tests had been carried out on somebatteries taken out from the daily production every day over twoyears. The results were put down in a book and no action taken.Specifications were not known by the inspector.

The participant together with the new manager worked out 4different charts for these individual measurements and specificationlines drawn on the charts. The daily results were shown and discussedwith the supervisors. A comparison between a two months' periodbefore the introduction of the charts and the project period showed asteady increase in the quality characteristics.

Glueing of "Soles to Shoes"

6. In a shoe factory there was a 100% inspection before the pairswere packed and sent to storage. Shoes with minor defects were sentback for repair. Some could not be repaired and had to be scrapped.

A form showing 27 different types of defects was filled in by theinspector every hour of the day and signed by the supervisor. Afterone or two days the forms were thrown away.

The project started by making a p-chart. It showed that the rate ofdefects was approximately 7.3% and had been increasing the last days.The main reason for this was a defect called "Cementing Edged", and

Drying Plywood

8. In a plywood factory the veneer dryer was the bottle-neck. Thespeeds recommended by the manufacturer for the different species andthicknesses could not be maintained to keep the moisture content atthe desirable level. Instead of the "hit and miss" method that had beenused so far, it was decided to find out by capability studies the correctspeed under different conditions. Due to the many different types ofvariables and the short period—only two species with certainthicknesses could be investigated. The findings were the following:

(a) Mengkulang, thickness 1.5 mm and time 6 mins was in controlwith exhaust window openings of 10° and 30° (50° and 70°

16

did not show stable conditions). Time could be reduced to5 mins thus gaining a capacity of 20%.

(b) Mersawa, thickness 1.5 mm and 1.8 mm with speeds of 12.5mins and 15 mins respectively showed process completely outof control.

The capability studies went on to find assignable causes withthe objective of removing them.

Coating of Electric Cable

9. Capability studies were applied to the coating of a certain typeof electric cable with P.V.C. Due to the great deviation and the lowerspecification set by the British standard the average of the coatinghad to be set high. The studies showed that by switching over toanother dye that gave a much lesser deviation it was possible to savean appreciable quantity of an imported raw material on this single typeof cable without increasing the rejection rate.

MANAGEMENT ACCOUNTING UNIT

(a) A system was introduced to record the cost of printing andpublishing the Organisation's four main publications. Previouslythe organisation had the costs grouped in one and had somedifficulty in analysing the costs of the various publications tocalculate the profitability of each of them.

Since the introduction of this system the management hadtaken steps to eliminate some of the idle-time and excess overheadexpenses disclosed by the new system.

(b) Individual training on the job in their own organisation wasgiven to seven participants to carry out the respective functionsin their organisation—

(i) A Kadex-Card system was introduced for controllingstock movements. The participant was briefed on the pointsof management control.

(ii) The participant was taught and trained on the practicalmethods of analysing, interpreting and reporting thevariances appearing in the cost statements of his organisation.

(iii) Training was given on the various methods of approachfrom the financier's point of view in analysing the financialstability and the proper use of the funds by the recipientsof loans amounting to $50,000.

(iv) Training and assistance was rendered in detailing theexisting cost system and revising it to yield a moreinformative management report.

(v) The participant was trained to prepare a funds flow of hiscompany under the supervision of the manager of hiscompany. He was briefed on the uses of the funds flowstatements.

(vi) Training on the preparation of a sales and purchase budgetwas rendered. After a lapse of time the participant preparedthe forthcoming year's sales and purchase budgets.

(vii) The participant was trained to estimate and control theoverhead expenses of all the departments. This informationwas later used by the heads of sections to prepare theiroperation budgets.

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(c) The participant studied the whole manufacturing process of thefactory and established the cost centres. The cost collection formswere prepared and implemented within a period of four months.The participant was assisted by his factory manager in theimplementation of the above system.

(d) The participant studied the existing method of marketing hisfirm's manufactured products.

This firm was distributing the goods through 3 (three) Agents. TheAgents were at the same time promoting a similar product importedfrom a foreign country. The agents had the sole right to sell but theynever fulfilled their quota of sales. The sales amounted to only |capacity of production and the prices were very low.

The problem was whether to sell on its own in addition to the Agents'sales or withdraw the agency and establish its own market outlets.

The decision was taken to sell on its own in addition to the existingagency.

Guests Lecturers

The Centre wishes to thank the following executives for taking part asguests lecturers during the Centre's training courses:

Messrs J. A. Johnston ... University of Malaya

A. Gopalakrishnan Alcan Malayan Aluminium Co.

J. H. Hansen ... East Asiatic Co.

„ W. R. Stewart ... M.I.D.F.L.

Messrs Sung Siew Loon ... Ministry of Labour

J. A. T. Perera ... M.C.E.O.

W. C. Marshall ... I.B.M.

A. F. Noppert ... Business Systems and Equipments

S. Senn ... ... Nestle's Co. Ltd.

M. J. Kerger ... Hume Industries (FE) Ltd.

F. G. Bendell ... N.C.R.

L. Edward ... Industrial Computers & Tabulators

Mohd. Sidek binTa'at ... ... Ministry of Labour

P. K. Muniandy ... Ministry of Labour

D. H. Mitchell ... M.P.I.E.A.

Johny Moo

Ramachand

International Computers & Tabu-lators

Imperial Chemical Industries Ltd.

Hussein bin Hj.Noor ... ... State Secretariat Johore

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The Centre wishes to thank the managements of the followingOrganisations for having permitted the centre's staff and the participantsof the various courses to visit their factories and offices:

Metal Box (M) Ltd.

Dunlop (M) Ltd.

Hume Industries (M) Ltd.

Fraser & Neave (M) Ltd.

Utusan Melayu Press Ltd.

Alcan Malayan Aluminium Co. Ltd.

Selangor Pewter Co.

Jardine Waugh (M) Ltd.

Rothmans of Pall Mall (M) Ltd.

J.K.R. Workshop—Johore Bahru.

J.K.R. Workshop—Kuala Lumpur.

Hume Industries (FE) Ltd.—Singapore.

Malayan Breweries—Johore Bahru.

Ford Motor Co. Ltd.—Singapore.

Lee Pineapple Co. Ltd.—Johore Bahru.

J.K.R. Lunchoo Kauri—Johore Bahru.

Federal Industries—Johore Bahru.

United Plastics—Johore Bahru.

Malayan Zips Ltd.—Johore Bahru.

Malayan Weaving Mills Ltd.—Johore Bahru.

Malayan Veneer Ltd.—Johore Bahru.

South Pacific Textiles—Batu Pahat.

Public Utilities Board—Singapore.

Lever Brothers.

I.C.I. Head Office.

Statistics Department.

National Cash Register.

Keretapi Tanah Melayu.

Federal Iron Works.

Malayan Breweries—Kuala Lumpur.

United Plywood and Sawmills—Negeri Sembilan.

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DI-CHETAK DI-JABATAN CHETAK KERAMANCILEH THOR BENO CHONO, A.M.N., PENCHETAK KERAJAAN

KUALA LUMPUR1966