1.0 INTRODUCTION In this assignment of Student in Enterprise Programme (SIEP), I have choose one company based on criteria that have been stated in guidelines to conduct a training for 10 days in order to complete the task given in this assignment. After much consideration, I has choose a company named Honda Malaysia Sdn. Bhd (Private Limited Company) which a partnership company between Honda Motor Co. Ltd. of Japan, DRB-HICOM Berhad and Oriental Holdings Berhad. This company origin is from Japan. Private Limited company describe as a company that offers limited liability, or legal protection for its shareholders but that places certain restrictions on its ownership. These restrictions are defined in the company's by laws or regulations and are meant to prevent any hostile takeover attempt. As a first step for UMK students, the Faculty Entrepreneurship and Business have created a subject called Student in Enterprise Programmed (SIEP) where all students University Malaysia Kelantan business faculty must enroll in the subject. SIEP is an exceptional project to be carried out by the students for 10 days. Students can choose any company to do business and work there to gain experience in business and how to run a business. SIEP is the early exposure of students to the business world. Through this project, students can gain experience and have greater knowledge concerning the world of business. I personally gained many benefits through this assignment and get to know more about how a company being operated and how they handle their daily operation. I can explore how this company handle their logistic and how they manage their production in daily activity. I need to acquire more knowledge about how a company being operated in order to train myself to enter employment sector and to face global growth in business especially in logistic industry. I also find out that in a big industry, management is very important in order to make daily operation runs smoothly with low risk of problems. A large company need to use a system that suitable for their company and social environment in order to success in their business.
2.0 COMPANY BACKGROUND 3.1 Honda Malaysia Sdn. Bhd. Honda Malaysia Sdn. Bhd. is a partnership company that sells automotive product such as car and spare parts for all variant of Honda cars. The birth of this company is on 15 November 2000 when Honda Motor Co. Ltd. of Japan, DRB-HICOM Berhad and Oriental Holdings Berhad commit to create Honda Malaysia Sdn. Bhd. together. The company was started in 2001 and start operating on 17 January 2003. The company is located at PT 75-79, Hicom Pegoh Industrial Park, 78000 Alor Gajah, Malacca. top management for Honda Malaysia Sdn Bhd is Mr. Yoichiro Ueno as the CEO, Mr. Roslan Bin Abdullah as the President and COO of HMSB while the vice president is Mr. Yoshihiro Suematsu and incorporate on 15th November 2000. Honda Malaysia have 4 branches in Malaysia located at Petaling Jaya as the Sales Office, at Bukit Jelutong as the Spare Parts Warehouse, at Bangi as the Pre-Delivery Inspection Centre and lastly at Alor Gajah Melaka as the Head Quarters. Honda has wider it production by opening new plant to increase number of car being produced where on 16th April 2014 official opening for Line 2 production line has being launched. Basically the production at Line 2 just the same with Line 1 but in Line 2 they have using better technology equipment where most of the process being replace from human being process to robot process. This makes the process easier by using less manpower. Besides that, this line can produce consistence production if no problem involving the machine occurs. 3.2 Product and services Honda produce 50,000 unit cars per year and currently it produces 6 types of model which are City, Civic, CR-V, CR-Z, Accord and recently new models has being launched which is Jazz. The car models as shown in Figure 2.3. Each of these main models composes of variety of types and it is called as variance. There are 11 total variances for 6 types of Honda Malaysia product. Accord and Civic has three variances while City and Jazz have two variances while CR-V and CR-Z has one variance only. Apart from these 6 products, the drive shaft also had been manufactured at Honda Malaysia and supplied to other factories.
3.0 MARKETING STRARERGY Marketing strategy is the fundamental goal of increasing sales and achieving a sustainable competitive advantage. Marketing strategies includes all basic, short-term, and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives. i. Make The Best Quality Cars One of the marketing strategy that used by this company is creating a best quality of car that can be trusted by customer. The company is straight about the quality of car that produced by their factory. Their engineer and supervisor put a lot of attention during the production to make sure the car produced by the factory is in the best quality condition. In order to have the best quality cars, they also put a lot of quality inspector in every department. This method really helps this company ensure the car produced are in the best quality that the company wanted the car to be. ii. Promotion Honda Malaysia Snd. Bhd. always find a way to make people attracted to buy their cars. In order to do that, they also do promotion such as rebate for every purchase, free gift and free maintenance service. For car such as Honda City, Honda Jazz and all Hybrid variant, customer will get rebate for the purchase. This is because Honda Malaysia try to encourage people to buy their product and into protect the environment. Honda Malaysia is famous with their technology about hybrid car that can protect the environment from pollution. Honda are try to make their product as greener as possible so their product will be icon for another car manufacture. Besides, all customer want their car to be services well. So Honda Malaysia provide 2 years free maintenance service and a lot of service center around Malaysia. They also provide professional mechanic in every service center to ensure the service are done according to the standard that have been issued by Honda Malaysia.
4.0 SWOT ANALYSIS SWOT analysis is a situation analysis based on what student has learned and see during the practical time it is about internal strength and weakness of an organization, and also an external opportunities and threats faced by it are closely examined to a chart strategy. Moreover, SWOT refers to strengths, weakness, opportunities, and threats. It is used for evaluating the start-up of a business and came to the conclusion that either it is good or not a good idea. 5.3 Strength Firstly, what I have gotten while doing my practical at the Honda Malaysia Sdn. Bhd. is about their strength, they can quickly solve the problem or issue. This company are very sensitive about any issue that happen in their company, and this issue will be settle as soon as possible to prevent any problem or waste time if their can’t follow the original plan. This company have a good management in handling their company and employees. Their also have good communication between each department so this can simplified work for this company. As for the employees, they have a good toleration with each other so they can avoid stress among the employees. The employees of this company also have a good discipline. 5.4 Weakness Next all company have their own weakness, as the weakness of Honda Malaysia Sdn. Bhd. is their only have one way communication, for example what employees have suggest and give a new idea to their boss but unfortunately their boss is ignore all that. Employees for this company also have to work day and night shift and this have cause a problem to certain employee that can’t work in shift. Then line system that combine all work in one department make it be an irregular system that troublesome employees. This is their big weakness because if one machine or works takes time to be done so there will be a waste of time. 5.5 Opportunity The opportunity in this company is, it is located in Alor Gajah industrial park, so there is a lot of people will come and ask for a job. There also many supplier nearby so they can reduce the cost. Honda Malaysia Sdn Bhd have a big opportunity to expand the business because there still a lot of land that can be used to build a new factory, so the company can produce more outcome in the future. 5.6 Threats The treat for Honda Malaysia Sdn Bhd is many contract employees resign because they didn’t get the benefits like permanent worker gets. For example, the permanent employees get benefits such as 6 month bonus twice a year, priority to do overtime work, their also get increase salary each year. The rest time for this company employees is very limited that only 40 minutes for lunch break, 15 minutes for morning coffee break and 10 minute for high tea. So the worker will feel very exhausted. Compare to other company like Infineon Company that offers one hour lunch break, 30 minute coffee break for morning and evening.
5.0 EXPOSURE SCOPE AND ACTIVITY DURING TRAINING 6.7 Exposure Scope While serving in Honda Malaysia, I was exposed to a variety of skills required when operating a business. I need to learn how to operate the machine, stock management, and clean the operation line. Between management skills I learned during the work here is the managerial skill and resourcing skill. In handling a company, a manager needs to learn and master managerial skill in order to manage company employee wisely. That is what I learn during my SIEP training. Encik Masri show to his worker about something that need to do when he did not come to company like handling the operation line and when variant of car change. In resourcing skill, I can learn how to be a good manager for the company and employee to. Mr. Masri always gave support and teaches the employee first before they start working. He always changes the employee’s duties from one position to another position so that the employee can perform various functions in the operation line. Besides, the employee can increase their individual skill at the same time. Therefore, employees are not only focused on the one skills of working and able to perform a variety of tasks beyond their skill. I can also improve my self-achievement in the face of various types of customers. Before this, my self-esteem with the public made it difficult for me to interact with people. It is undeniable that on my first day of work, I was quite cold serving customers and less to give their views on the product. However, I have always given guidance by En.Arif and always learn from the experience so I was able to discard nervousness in myself while dealing with customers. I realized that in the business world, the relationship between the dealer and the customer is very important to further develop the business. 6.8 Activity During my training, I have done many activity. All the activity are recorded and the summary of activity are stated below. Day 1 | In my first day in Honda Malaysia, i meet the person that will guide me in 10 days of my training. Mr. Masri bin Wakiman is a man who responsible to guide me here. Mr. Masri is working as manager in painting department. He is very friendly and easy to talk with. Mr. Masri bring me visiting all station in painting department. Mr. Masri. He also recommends me to do all my training in repair station because all the final work of panting department is located here. He also tell me what are the work that being done by repair station and he also teach me how the work being done. | Day 2 | For my second day of training, I learn new thing here. Mr. Masri tell me to do something in order to help him. He told me to learn how to fill in the information from the repair station to painting department system. I need to fill in information such as chassis number, total numbers of car that being repaired, car variant and colors. While I am doing this, Mr. Masri always around me to supervise me and to avoid me doing mistakes. I also learn how to make a request document for the equipment that will be use in repair station. | Day 3 | For my third day of training, Mr. Masri told me to replace one of the worker that absent. I have placed into final quality control. The work that I do today is same like yesterday but this time I am the one who fill in the information into document before the information being sent to the manager. | Day 4 | The fourth day of my training, I’ve been told to the same work as yesterday. I work faster today because I’ve get used to this work. Mr. Masri also told me if I have free time gap in my work, he tell me to help other worker. With this, I can enhance my skill in doing all work in repair station. | Day 5 | On my fifth day training, I learned how to do a quality inspection to car body according to document with list standards of quality. But I only responsible to check the back boot of car body. While I an doing this work, the senior worker always double check my work in order to avoid me to do mistakes | Day 6 | The sixth day, I’ve been told to do the same work as yesterday. But today I do quality inspection to all body section. But, in order to make work faster, I work together with senior worker. He also watch my work just in case I do mistakes on my work that have been done. | Day 7 | On seventh day. I’ve been told to learn how to make a report about broken machine and if there is serious repair to car body needed. The report need to face station leader first then go to department leader. The report need to be specifically stated the problem or repair that needed to be done. Besides, I also do the same work as yesterday. | Day 8 | On my eighth day of training, I requested to do something different as before that needed skills to be done. Mr. Masri agreed and he place me into repair station on painting repair. In there, I learn how to repair broken or miss spray part of cars body. Mr. Masri ask their worker to teach me how to do the work. | Day 9 | On ninth day, I continue doing yesterday’s work in order to enhance my skills while doing that work such as spray, sanding and polishing. I only do minor repair to car body. Besides, I also help senior worker repairing major defect on car body. | Day 10 | On my last day of training, I’ve been required to collect all data from the usage of equipment such as gloves, sand paper and polishing compound and calculate the total exceed of equipment used. In my final day, Mr. Masri only tell me to done easy tasks so that I can explore to all department to see how assembly plants runs production of car. |
6.0 CONTRIBUTION TO COMPANY Any contribution is given as awards or aid either in the form of money, ideas and energy. Although I was only given the opportunity to work for 10 days, I was given the opportunity to provide any further ideas for smoothen the operation of the business. As Honda Malaysia received new worker every day, it’s hard to teach them to do any work in operation line. Then, I contributed ideas on how to make a new worker learn how to do their work instantly. Usually, new worker only placed in the operation line and learn how to do the work with only watching other worker do the work. This method makes a lot of trouble because new worker makes many mistakes that can affect the quality of car. So I gave an idea to manager to let senior worker work together with new worker so that senior worker can teach and at the same time observe the new worker. With this method, defect can be decreased so the quality check station don’t need to return the car’s body to repair station again. This method may affect operation time for the department because the worker that should working is helping new worker but its’s only last for a half day. In my observation, after lunch hour, the new worker can do their work with their own and decrease the risk in making mistakes. Once, I also a new worker so I have experienced how working without nobody to ask. It’s hard and I always makes mistakes. Besides, I was given an opportunity to handle the needs of the operation line with Mr. Masri observation. The requirement such as paint, magic compound, polishing compound, paper roll, sand paper, glove, cleaning cloth and safety suit. While I am doing this work, I see a lot of waste is being done in assembly line. The worker keep changing their gloves and duster. So I recommend to Mr. Masri to reuse all the glove that still can be used again.
7.0 DISCUSSION Honda cars nowadays gaining more attention about their design, quality and price of car. Many car manufacture are investing a lot of money in order to make good car and eco-friendly car. While the automobile is a commonly used product in Malaysia and all around the world, it is an extremely complex and technologically sophisticated one. So Honda Malaysia need to find a way how to compete with other car manufacture such Toyota, Nissan, Mazda and local automotive manufacture like Proton and Perodua. Manufacturing new cars requires state-of-the-art technological methods and processes. In order to do that Honda nowadays has invest more money on research in technology and design of car. We can see such a drastic change in Honda’s car design language especially in Jazz and civic model. Along with design, Honda also put new technology that more eco-friendly to their car. In order to improve product quality and efficiency in production, Honda Malaysia invest a large amount of time and money into developing and improving the manufacturing process, and rely heavily on research and technological innovation. Over the last decade, significant technological development has taken place, changing and reinventing how motor vehicles are produced. Technology has increasingly altered the manufacturing process for motor vehicles. While cars are produced at faster rates, Honda Malaysia must continue to balance increased productivity and efficiency with quality and innovation. Modern technologies used in advancing manufacturing for the automotive industry include programmable machines and tools, high speed data communication and data management, virtual manufacturing and complex visualization techniques and much more. Automatic technology has become an essential part of Honda assembly plants. A typical assembly plant uses several hundred robots to build and paint the vehicle body frame. While robotic technology continues to grow in Honda assembly plants, the technology does have limitations, especially in performing more delicate tasks. Sometimes, automatic robot technology can makes big trouble to the assembly line when it can’t work properly. In looking at trends in global automobile manufacturing, Japanese automakers have been leaders in stream-lined manufacturing process systems. These methods have been adopted by Honda Malaysia manufacturing plants worldwide. These efforts were pursued in order to increase productivity and product quality of Honda car. Other automakers initially showed considerable gaps in manufacturing plant productivity, however the gap in productivity with Honda assembly plants have been narrowed substantially in the last several years. 8.0 RECOMMENDATION 9.9 Short Term Planning 9.10.1 Hire More Permanent Employee Honda Malaysia are lack of permanent employee because they have policy that the only 50% of employee can be permanent worker and the rest are filled with contract worker. This sometimes can be hard for the company because every day their worker are changing and this will make the production line will be lack of experienced worker. This also can cause trouble to the company due to problems that contract worker done during the production. They need to change the policy at least 80% of the employee need to get status as permanent worker so that the company can reduce the problems that occurs. 9.10.2 Change Production Line System Honda Malaysia are currently using 1 line system that sometimes making the production time longer. The problem occurs when one of station having big problems such as machine breakdown, major problem to car body that takes much time to be solved by one station and when the production line change the variant of car produced. This will makes all the all the line stopped and all department will be affected by this. For solution, the company need to change the 1 line system to 3 or 4 line system. This will solve the problems because if one line stopped, another line still operating and car body that queued can be operated in another line. 9.10 Long Term Planning 9.11.3 Build More Factory Now, Honda Malaysia only have 2 factory that located nearby and it still can’t accommodate the demand of customer. According to the information given, customer need to waits sometimes 3 to 4 months to get car that they have ordered. If this continue, customer will change mind and go for another brand. The only solution company can make is by building more factory so they can produce more cars and reduce the waiting time for customer to get their car. 9.11.4 Use New Technology for All Factory Recently only Line 2 factory that uses latest technology in production line while Line 1 factory still didn’t upgrade their technology. In line 2 factory, they use automatic line system which the component and car body are moved by machine like train system. In line 1 Factory, the worker need to move the car body use their own strength. This will cause back pain to many worker because the car body is heavy and need at least 2 worker to move it. Besides, this will makes the production time longer. So, they also need to upgrade the facilities of the old factory to solve all the problems and achieve better result in production quality.
9.11.5 Specialization for Every Factory In order to accommodate the demand of customer and building more factory, specialization need to be done for each factory. Honda Malaysia currently producing 6 variant of cars which is Jazz, City, CR-V, Accord, Civic, and CR-Z. Currently they produce car in 2 factory called Line 1 Factory and Line 2 Factiry. Line1 factory produced car variant such as City, CR-V, and Jazz while the other variant are produced in Line 2 Factory. In future if there more new factory build, they need to do specialization such as one factory for one variant of car. With this, the company can reduce the lag time during production when they want to change variant of car produced. Besides, they also can focus on the quality of that variant.
9.0 CONCLUSSION As conclusion, I have obtained lots of new experience, knowledge, and information regarding to the course in my study to be an entrepreneur in the future. I also learned how to manage the small business. Even it is a small business but it also very tough if we do not have the knowledge to handle and manage the business. For the 10 days I was practical, the owner give the respond and shared the experience how to start the business. The 10 days practical experience have given me a new vision and a better understanding for a new learner of the prospect and chances to be grabbed and the achievement to hold on, in becoming a successful entrepreneur and start my own business. I have implemented my best creativity and all the interpersonal skills to finish this training and this report successfully. I have gained a deep interest in being an entrepreneur through the learning of the basic ideas and knowledge on how to run a business in a proper way and manage a business and its administration in a good manner.
APPEDIX
Figure 1: Repairing paint
Figure 2 : Collecting information from car.
Figure 3 : Repair station line
Figure 4 : Assembly line