Nap 2014 Roadmaps - Highlights
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Transcript of Nap 2014 Roadmaps - Highlights
MALAYSIA AUTOMOTIVE ROADMAP
HIGHLIGHTS
Malaysia Automotive Institute www.mai.org.my
Disclaimer All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Malaysia Automotive Institute (MAI) accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All information is provided without warranty, and Malaysia Automotive Institute makes no representation of warranty of any kind as to the accuracy or completeness of any information hereto contained.
All right reserved. All information contained in this publication was prepared by Malaysia Automotive Institute for the use of the local industry stakeholders, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher.
1 INTRODUCTION
Recently, on the 20th January 2014, the “National Automotive Policy (NAP) 2014” was launched, with a vision of transforming the competitiveness of the Malaysian automotive industry to face the global challenges. Over the years, the Malaysia automotive industry has declined in terms of both total production volume and total industry volume. Malaysia used to lead the automotive production and sales in the ASEAN region but now ranked third, producing some 650,000 vehicles per year. The local automotive industry is facing stiff competition in this era of globalization and technologies are changing rapidly to address the global energy constraint and environmental pressure to reduce the effects of greenhouse gases. In view of this decline and challenges ahead, the government has taken the initiative to conduct an overall assessment and in depth review of the NAP 2009, revamp the policy and put forth measures to stop the decline and to address pertaining issues in transforming and making the Malaysian automotive industry competitive. NAP 2014 has studied the structural issues affecting the local automotive industry and adopted measures to overcome these challenges to meet the global quality, cost and delivery requirements, and at the same time aligning the industry in meeting the requirements of the international safety regulation of vehicles.
1 Introduction
Malaysia Automotive Roadmap – Highlight
2 BACKGROUND
2 Background
The NAP 2006 and its 2009 review, to some extend, managed to steer and stabilise the local automotive industry in facing the residual effects inherited from the 1997 financial currency crisis. However, progressive needs to implement the agendas of the FTAs signed between governments saw the emergence of new challenges facing the local automotive industries. The ASEAN Economic Community (AEC) blueprint due for implementation in 2015 calls for a comprehensive reinstatement of the Malaysia NAP favourable for the nation automotive sector to partake in the new business environment of the AEC. The successful implementation of the AEC shall lead to the ASEAN region in becoming; firstly a single market and production base, secondly a highly competitive region economically, thirdly equitable economic development, and fourthly fully integrated into the global economy. The effect on the nation economy due to the currency crisis were significant on the overall advancement of automotive industry, in particular in the field of product development, R&D, automation and human capital essential to position the industry at par with other global players. The currency crisis has driven the Malaysian automotive industry into despair but remained agile to continue to seek survival solutions to remain in business. The insertion of the first NAP in March 2006 was a step towards regulating measures to help sustain the local automotive endeavours and essentially the document was formulated to transform and to integrate the local automotive industry into the regional and the global industry network, which were becoming liberal and competitive. The 2006 NAP was reviewed and was published on October 2009 introducing measures to uplift the capabilities and competitiveness of the local automotive industries in line with the on-going market liberalisation. The review outlaid measures to create a conducive investment environment towards enhancing high value added automotive manufacturing locally utilising latest advanced technology.
Malaysia Automotive Roadmap – Highlight
In its desire to be part of the regional and global community, Malaysia had pursued and cemented many Free Trade Agreements (FTAs) from 2005 onwards bearing both positive and negative outcomes to the business communities, in particular the automotive sectors. The downside of the liberalisation efforts was evident by the downward trend on market captivities between the two national car manufacturers. Today PROTON and PERODUA both control some 60% of the local vehicles market share losing their grip on the 80% share they previously held. Climatic change and energy security have now become two major global concerns setting the biggest challenges facing the automotive industry worldwide. Unpredictable weather patterns, natural catastrophes and changes in the natural environment are being attributed to the global warming phenomena and this indirectly being pointed out to CO2 emission as the major cause. The need for a global response on the environment concerns has further elevate pressure on the automotive industry with two major challenges, namely; fuel saving and emission reduction. Vehicles are required to be efficient ensuring fuel saving and “green” enough in CO2 emission, two interconnecting parameters of vehicles which require extensive developmental endeavours. The NAP 2014 was therefore crafted focusing on the objectives of enhancing the competitive advantage of the local automotive industry and to develop environmentally friendly automotive manufacturing ecosystem and their outputs. The main objectives of the document are to; • Promote a competitive and sustainable local automotive industry including the national car companies; • Develop Malaysia as the regional automotive hub in energy efficient vehicles (EEV); • Promote increase of value added activities in a sustainable manner while continuously developing the local
capabilities; • Promote increase in exports for vehicles and automotive components; • Promote participation of Bumiputera companies in the total value chain of the local automotive industry; • Safeguard consumers’ interest by offering safer and better quality products at competitive price.
Malaysia Automotive Roadmap – Highlight
The Policy instruments laid out by the NAP 2013 are centred on six thrust areas; • Investment • Technology and Engineering • Market expansion • Supply Chain Development for components and replacement parts • Automotive Human capital development • Safety and environment Government endeavours to develop the nation automotive sector has passed a period of 30 years, during which many lessons are learned by the industry players, the bureaucrat and the public at large. Opinions may varies on the weightage given as to the success of the Malaysian automotive industrial endeavours thus far, but undeniably those experiences and lessons learned during that period are vital recipe for the formulation of a new era for the industry moving forward. In short, NAP 2014 is about creating a new direction for the automotive industry. Trade liberalization and environment friendly adaptation in turn are the guiding principles of the document. Policy instruments put forward are geared towards enhancing the overall capability and competitiveness of the local industries able to position themselves on the regional and global stage, while the entire automotive ecosystem are to fulfil the global communities desire to “green” the planet earth.
Malaysia Automotive Roadmap – Highlight
3 THE MALAYSIAN AUTOMOTIVE ROADMAP
3 The Malaysia Automotive Roadmaps To complement the execution of the NAP 2014, there are 6 roadmaps and implementation plans have been
developed and the roadmaps will be under the supervision of Ministry of International Trade and Industry (MITI) and the Malaysia Automotive Institute (MAI) shall act as the agency to coordinate, implement and monitor the programmes. These roadmaps are to serve as guidelines to achieve the transformation objective of the local automotive industry and the outline of these roadmaps are as follows. 1 Malaysia Automotive Technology Roadmap (MATR)
The MATR entails the latest green technology development that is in line with the development of the global automotive industry. The roadmap includes guidelines towards the rationalization of the industry towards achieving an environmental friendly supply value chain, enhancing competitiveness and ensuring the sustainability of the local automotive industry.
2 Malaysia Automotive Supply Chain Development Roadmap
The Supply Chain Development Roadmap aims to continuously enhance the component and spare parts manufacturers competitiveness in the aspect of efficiency and operational effectiveness. The roadmap consists measures to improve quality, operational and business management systems as well as to increase capability in the areas of testing and validation.
3 Malaysia Automotive Human Capital Development Roadmap The Human Capital Roadmap outlines a continuous plan towards developing competent workforce at every level within the automotive industry. This roadmap also includes plans to develop specific local
Malaysia Automotive Roadmap – Highlight
skilled labour such as in the automated production and component of hybrid as well as engine and transmissions. This will assist in reducing dependency of the less skilled foreign workers and consequently producing a more local skilled worker with high-income salary. The importance of human capital development cannot be undervalued. In this sense, MAI will play the role to strategize planning and implementation in collaboration with industry players, pubic and private institutions such as the International College of Automotive Malaysia (ICAM) in Pekan and others.
4 Malaysia Automotive Remanufacturing Roadmap The Remanufacturing roadmap outlines detail criteria of remanufacturing as well as the standards and
best practices that will be used by the local industry players in transforming Malaysia as the hub for automotive remanufacturing activities. In addition the roadmap introduces measures to optimize recyclability and recoverability levels of used components in order to support Government aspiration to green the overall supply value chain of the local automotive industry.
5 Development of Automotive Authorized Treatment Facilities (ATF) Framework The ATF framework shall serves as guideline to transform the automotive after sales businesses in
relation to the effort in developing a green and sustainable automotive industry within the sales, service, spare parts and repair sectors.
6 Malaysia Automotive Bumiputera Development Roadmap The Bumiputera Development Roadmap details out activities related to technology development, human
capital and supply chain to increase the competitiveness of Bumiputera’s companies within the automotive industry. These activities are in line with Government's efforts to strengthen economy of Bumiputera and produce Bumiputera entrepreneurs that are more competitive.
Malaysia Automotive Roadmap – Highlight
Figure 1 depicts the entire automotive ecosystem. The Original Equipment Manufacturers, OEMs, are the key players in the structure contributing towards producing the end product to the market place. The OEMs lead the design activities by conceptualising and visualising the new models of a vehicle as well as finalising its specifications. The vendors community in turn support the parts and components requirements of the OEMs and are generally involved in the design and development of the parts and components meeting the specifications stipulated by the OEMs. Once the vehicles entered the market place, the aftermarket community supports the vehicles operationalization providing safe and convenience mobility for the general public. The aftermarket contributes to the important role of scrapping, recycling and remanufacturing the used parts at the end of the vehicles useful life. The automotive ecosystem is supported by various functioning organisations such finance, insurances, testing centres, engineering establishments, R&D organisations etc., whom may operate independently or in some form of affiliations to the OEMs, vendors community and the aftermarket community. It is within the automotive ecosystem as portrait in figure 1 that the above prescribed roadmaps were identified and formulated to provide the relevant guidelines for further enhancement of the national automotive industry..
Malaysia Automotive Roadmap – Highlight
FIGURE 1 – AUTOMOTIVE INDUSTRIAL ECOSYSTEM
RAW MATERIAL SUPPLIERS
FINANCIAL
MOULDS, DIES JIGS & FIXTURES
INSURANCES
R&D ORGANISATIONS
UNIVERSITIES & TRAINING ORGANISATIONS
AUTOMATION & ROBOTICS
PROTOTYPING CENTRES
VEHICLE TESTING CENTERS
VEHICLE INSPECTION CENTERS
Malaysia Automotive Roadmap – Highlight
4 Brief Outline of Each Roadmap
4.1 Malaysia Automotive Technology Roadmap (MATR)
MATR is a supplementary document to the NAP 2014 charting the technology development roadmap envisioned to further assist the development of the automotive industry towards achieving the macro objective of the NAP 2014 via; 1) Adoption, adaptation and innovation of green technology within the automotive supply chain focusing
on product development, process development, manufacturing and customer aftersales services. 2 Development of appropriate standardisation and testing regulations within the manufacturing industries
and aftersales 3 Infrastructure development to support the “green” automotive products and ecosystem. The development of MATR includes several crucial measures such as: • reducing carbon emission; • improving fuel consumption; and • enhancing safety & security.
A brief account intended to give the gist of the contents of each of the roadmaps is presented herein.
Malaysia Automotive Roadmap – Highlight
MATR APPROACH
Timeframe
In setting the timeframe for the MATR, the most suitable guideline adopted is the forecasted evolution of the “Energy Efficient Vehicle (EEV)” from “Internal Combustion Engine (ICE)” to full “Electric Vehicles (EV)” as portrait in figure 2 and figure 3. Although non EEV classified ICE vehicles are expected to be in use for sometimes in the near future, the aggressiveness on the part of the automakers to introduce their EEV and EV will soon capture a sizeable portion of the Malaysian automotive market. The current approach towards EEV are centred on two routes , namely; 1) Continuous improvement on the current ICE engine to meet the EEV classification and specification.
Clean diesel propelled vehicles favoured by most of the European automakers are now penetrating the Malaysian market, and sooner than expected the fossil diesel may be replaced by biodiesel and other biofuels which will be more environmentally friendly.
2) Combination of ICE and electric motor (hybrid) is now getting popular amongst Malaysian consumers and the technology, a route of choice amongst the Asian automakers especially the Japanese, has proven to be a successful transitional alternative prior to full electric vehicle usage.
Fuel cell driven automotive, although technologically viable, may not be in the market place in the very near future. Hence it is considered too far fetch to be included in the current MATR, which is intended to be within the timeframe ending 2025,
Malaysia Automotive Roadmap – Highlight
Automotive Industry Transformation Route
TIME FRAME
Internal Combustion
Engine (ICE)
ICE + Electric Hybrid Engine
PRESENT
Global Automotive Roadmap
Fuel Cell
2040 Energy
Efficient ICE
FOSSIL FUEL
FOSSIL FUEL + ELECTRIC
- EEV DIESEL - BIODIESEL - SYNTHETIC FUEL
FULL ELECTRIC
HYDROGEN FUEL
Electric
2030
2020
ROUTE 1
ROUTE 2
FIG 2
Malaysia Automotive Roadmap – Highlight
Market Entrance Development Phase Electric
2014 2015 2017 2019 2021 2023 2025
Development Phase
Full Utilization
Full Utilization
Market Entrance
Fuel-Cell
Hybrid
ICE
Basis of the Roadmap Was Based on the Projection of Vehicle Demand 2013 - 2025 *Based on Consultation with Malaysian and Global Automotive Stakeholders **MAI Analysis
Development and Market Entrance for Vehicle with
Greater Fuel Efficiency
*Significant growth of diesel-based vehicle in
passenger segment
*Growth of Alternative-Fuel Mixture Vehicle (Bio-
Petrol, Bio-Diesel etc.)
Demand for Mild and Full Hybrid Electric Vehicle
Full Utilization of Plug-in Hybrid Electric Vehicle
(PHEV)
**Notable Growth of EV for City Consumption
MALAYSIA AUTOMOTIVE TECHNOLOGY PROJECTION (2013 – 2025)
FIG 3
Malaysia Automotive Roadmap – Highlight
Technology Prioritisation
Correlation exercise of the NAP 2014 thrust areas to the Automotive Manufacturing Ecosystem has established six Correlates for technology development as shown in figure 4 and figure 5. Table 1 charts the Priority Areas corresponding to each of the six Correlates followed by the enlisting of the Technology Generic important for the development of the automotive industry within the country. Technology Priority are then identified for Technology Generic of each vehicle type, namely; Internal combustion Engine (ICE), Hybrid, Electric and Fuel Cell. Technology Priority for each type of vehicle were enlisted thus forming their respective Technology Roadmap. It is noteworthy that the Technology Priority listed for each vehicle type is not exhaustive but under the current MATR timeframe the listed technologies are of higher priority. Fig. 5 schematically depict the Technology Prioritisation approach prescribed above and Fig 6, shows the consolidated technology priorities for implementation within the timeframe for the MATR. Developmental approach is proposed for each of the Technology Generic identified following the sequence of implementation in the order of “Adoption”, “Adaption” and “Innovation” depicted in Table 1. Five developmental approach are categorised as follows; • Adoption – Technology acquisition (or Technology Transfer) • Adaption – Design and Engineering and Testing Technology • Innovation – Materials Development and Technology and/or Process Development
The MATR identifies; 24 Priority Areas, 32 Technology Generics and 75 Technology Priorities as guidance for technology development and enhancement need to be diligently implemented towards achieving the Energy Efficient Vehicle (EEV) production in Malaysia
Malaysia Automotive Roadmap – Highlight
AUTOMOTIVE INDUSTRIAL ECOSYSTEM
PR
E P
RO
DU
CTI
ON
MANUFACTURING VEHICLE DESIGN - BODY AND
INTERIOR - POWERTRAIN - E & E - ETC
PROTOTYPING
TESTING POWERTRAIN
ASSEMBLY
BODY PRESS
BODY ASSEMBLY
PAINTING VEHICLES ASSEMBLY
OEMs
SALE
S
AFTERMARKET
SPARE PARTS Parts Wholesalers/ Distributors/Retailers
SERVICING & REPAIRS Independent & Franchised Workshops Tyre Service Shops Accessories Shops
USED PARTS Used Parts Importers Used Parts Dealers
REMANUFACTURED PARTS Parts Remanufacturers Remanufactured Parts Dealers
VEHICLE INSPECTION CENTRES Puspakom [PDI/Periodic/ Mandatory]
AUTO RECYCLING (AUTHORIZED TREATMENT FACILITIES) Car Dismantlers Salvage Operators Scrap Metal Dealers
USED CARS Used Car Dealers Pre-Owned Cars Dealers
BODY & INTERIOR - FLOORING & INSULATION - INTERIORS & FITTINGS - DASHBOARD & ACCASSORIES - DOORS AND WINDSCREENS - SEATS & UPHOLSTERY - STEERING & FITTINGS
POWERTRAIN - ENGINE COMPONENTS & PARTS - BRAKING SYSTEM - EXHAUST SYSTEM - COOLING SYSTEM - FUEL SYSTEM - SUSPENSION & STEERING SYSTEM - TRANSMISSION SYSTEM
ELECTRICAL & ELECTRONICS - BATTERY - GAUGES & METERS - IGNITION SYSTEM - LIGHTING & SIGNALING - SENSORS - CHARGING SYSTEM - SWITCHES - WIRE HARNESS - INFOTAINMENT & TELEMATICS
MISCELLANEOUS PARTS - AIRBAG MODULE - ALARM & SECURITY - CENTRAL LOCKING SYSTEM - ENGINE COMPUTER MGMT SYSTEM - ENGINE CONTROL UNIT - CRUISE CONTROL UNIT - ABS - ETC..
VENDORS COMMUNITY
CO
MP
ETIT
IVEN
ESS
-C
OST
RED
UC
TIO
N
-Q
UA
LITY
MG
MT
GREEN MOBILITY INFRASTRUCTURAL SUPPORT - CHARGING INFRASTRUCTURE - FUEL POLICY (EURO STD)
TECHNOLOGY ENHANCEMENT
- MOULD AND DIE - ALUMINIUM AND IRON
FOUNDRIES - DESIGN ENGINEERING AND
PROTOTYPING - AUTOMOTIVE GRADE
MATERIALS; - PLASTIC & COMPOSITE
ENGINEERING - DIGITAL ENGINEERING
GREEN VEHICLES TECHNOLOGY - VEHICLE DESIGN AND DEVELOPMENT - POWERTRAIN AND RELATED CONTROL
SYSTEM DEVELOPMENT - LIGHT WEIGHT VEHICLE BODY - VEHICLE ENGINEERING & PROTOTYPING - PROCESS DEVELOPMENT FOR
MANUFACTURING
RAW MATERIAL SUPPLIERS
FINANCIAL
MOULDS, DIES JIGS & FIXTURES
INSURANCES
R&D ORGANISATIONS
UNIVERSITIES & TRAINING ORGANISATIONS
AUTOMATION & ROBOTICS
PROTOTYPING CENTRES
VEHICLE TESTING CENTERS
VEHICLE INSPECTION CENTERS
FIG 4 – Correlation of NAP 2014 trust areas to automotive ecosystem
Malaysia Automotive Roadmap – Highlight
Fig. 5 Technology Prioritisation Approach
CORRELATED
PRIORITY AREAS
TECHNOLOGY GENERIC TECHNOLOGY PRIORITY
Malaysia Automotive Roadmap – Highlight
NAP 2014 - MATR
CORRELATION PRIORITY AREAS TECHNOLOGY GENERIC
TECH. ACQUISITION
DESIGN &
ENGINEERING
TESTING TECH.
MATERIALS DEV and R&D
TECH. AND/OR
PROCESSES DEV. & R&D
ENVIRONMENTAL
EMMISSION - Emission/exhaust System & control - Environmental Impact
●
● ● ● ●
●
3R GREENING ENTIRE SUPPLY CHAIN GREENING AFTERSALES
- Recycling Technology & processes
- ELV Recycling ● ● ●
ENERGY SAVING - Energy Recovery Technology ● ● ● ●
SAFETY AND SECURITY
VEHICLE SAFETY TESTING - Active Safety and Passive Safety ● ● ● ●
SAFER VEHICLE DESIGN - Safety related components , Systems & Gadgets ● ● ● ●
TELEMATICS - Networking and vehicle interface technology ● ● ● ●
GREEN MOBILITY INFRASTRUCTURAL SUPPORT
CHARGING INFRASTRUCTURE - Energy Connectivity ● ●
FUEL DEVELOPMENT - Fuel economy/Air quality Improvement - Green/alternative Fuel
● ● ● ●
GREEN VEHICLE TECHNOLOGY
VEHICLE DESIGN AND DEVELOPMENT - Green/ECO/EEV Car Design & Development Tech ● ● ● ●
POWERTRAIN AND RELATED CONTROL SYSTEM DEVELOPMENT
- Fuel-Efficient - EV Efficient - Weight reduction powertrain
● ● ● ● ●
LIGHT WEIGHT VEHICLE BODY - Material Technology ● ● ● ● ● VEHICLE ENG. & PROTOTYPING - Vehicle Prototyping & Testing ● ● ● ● ● PROCESS/MANUFACTURING - Automation and Robotic
- Tooling tech. for light materials ● ● ● ● ● AFTERSALE - Road-worthy Inspection
- Vehicle afterlife technology ● ●
TECHNOLOGY ENHANCEMENTS
TOOLING DESIGN & MAKING - Complex moulds & dies - Large Moulds & Dies ● ● ● ● ●
ALUMINIUM AND IRON FOUNDRIES - Casting Technology ● ● ● DESIGN ENGINEERING AND PROTOTYPING - Components design & making ● ● ●
AUTOMOTIVE GRADE MATERIALS - High strength Light steel - Light Weight Metals ● ● ● ● ●
PLASTIC & COMPOSITE MATERIALS - Advance Plastic - Polymer composite ● ● ● ● ●
DIGITAL ENGINEERING - Software application ●
COMPETITIVENESS COST REDUCTION - Cost Management Techniques ● ● QUALITY MGMT - Quality System Technology ● ●
TABLE 1 – CORRELATION TABLE ADOPT ADAPT INNOVATE
Malaysia Automotive Roadmap – Highlight
PRIORITY AREAS TECHNOLOGY GENERIC TECHNOLOGY PRIORITY
Emission
- Emission/exhaust System & control - Environmental Impact
- Post combustion - Combustion & Fuel-
injection - Exhaust after
treatment
- Hybrid Powertrain Emission Technology
- Ozone layer impact
study and viability of fuel cell automotive technology
3R Green Supply Chain Green After-Sales
- Recycling Technologies
- ELV Recycling
- Solid Waste - Liquid waste - Rubber& polymers
waste
- Batery recycling & treatment
- Dismantling & Treatment tech.
Energy Saving - Energy Recovery technology
- Development of full NGV green powertrain
- Stop & Go Technology - Kinetic Energy
Recovery system - Renewable Energy for
EV
Vehicle Safety Testing - Active Safety and Passive Safety
- Virtual testing technology
Safer Vehicle Design - Safety related components, system & Gadgets
- Crash Avoidance - Driver Assistance - Post-Crash Survivability - Pedestrian Safety
Telematics - Networking and vehicle interface technology
- Location system - Communication
system - Navigation system - Mayday system - Infotainment
Adopt Adapt Innovate
TECHNOLOGY ROADMAP FOR ENVIRONMENTAL, SAFETY AND SECURITY
FIG 6 (a)
2015 2017 2019 2021 2023 2025 2014
Malaysia Automotive Roadmap – Highlight
TECHNOLOGY ROADMAP FOR GREEN MOBILITY INFRASTRUCTURE AND GREEN VEHICLE TECHNOLOGY
FIG 6 (b)
2015 2017 2019 2021 2023 2025 2014
Adopt Adapt Innovate
PRIORITY AREAS TECHNOLOGY GENERIC TECHNOLOGY PRIORITY
Charging Infrastructure - Energy Connectivity
- V2H (Vehicle-to-Home)
- V2G (Vehicle-to-Grid)
- Fast Charging system
- Hydrogen production, transportation and distribution
Fuel Development
- Fuel economy/Air quality Improvement - Green/alternative Fuel
- Devices or additive improve fuel economy/air quality
- Biomass - Algae based fuel - Biodiesel
- EV Battery
Manufacturing
- Hydrogen production
Vehicle Design & Development
- Green/ECO/EEV Car Design & Development Tech
- Body design - Undercarriage - Interior - Accessories
- Electric Vehicle Design
- Fuel Cell Vehicle
Design
Malaysia Automotive Roadmap – Highlight
TECHNOLOGY ROADMAP FOR GREEN MOBILITY INFRASTRUCTURE AND GREEN VEHICLE TECHNOLOGY (CONT.)
2015 2017 2019 2021 2023 2025 2014
Adopt Adapt Innovate
PRIORITY AREAS TECHNOLOGY GENERIC TECHNOLOGY PRIORITY
Powertrain and Related Control System Development
- Fuel-Efficient
- EV Efficient
- Weight reduction powertrain
- Diesel/Fossil fuel/ biomass powertrain
- Electric motor - Series/parallel hybrid
- Battery technology - Power Electronic - Traction Motor and
generator - EMC/EMI
- Engine Downsizing
- Light weight
components
- Light weight components for EV
- Fuel Cell powertrain
Light-weight Vehicle Body - Material Technology - Light metal body
- Composite material
Vehicle Engineering & Prototyping
- Vehicle Prototyping & Testing
- Prototyping technology
- Soft Tooling
Process & Manufacturing Development
- Automation and Robotic
- Tooling Tech. for light materials
- Control System - Industrial robot
- Tool design - Tool making
After-sales
- Road-worthy Inspection
- Vehicle afterlife technology
- On Vehicle Inspection
- Reused and recycling technology
FIG 6 (b) Cont.
Malaysia Automotive Roadmap – Highlight
PRIORITY AREAS TECHNOLOGY GENERIC TECHNOLOGY PRIORITY
Tooling Design & Making
- Complex moulds & dies
- Large Moulds & Dies
- Tooling design software
- Large mould base & die set
- Heat treatment
Aluminium & Iron Foundries - Casting Technology
- Materials technology - Melting technology - Pattern making
Design Engineering & Prototyping
- Components design & making
- CAD-CAM system & software
- 3D modeling
Automotive Grade Materials
- High strength Light steel
- Light weight Metals
- Material Dev. And testing
- Pilot production
Plastic & Composite Engineering
- Advance Plastic
- Polymer composite
- Advanced Plastic Development
- Composite material. development
Digital Engineering - Software application - Component testing simulation
Cost Reduction - Cost Management
Techniques - Computerised cost
control
Quality Management - Quality System
Technology - Computerised Quality
system
TECHNOLOGY ROADMAP FOR TECHNOLOGY ENHANCEMENT AND COMPETITIVENESS
FIG 6 (c)
2015 2017 2019 2021 2023 2025 2014
Adopt Adapt Innovate
Malaysia Automotive Roadmap – Highlight
Technology Strength (Gaps)
Table 2 attempts to rate the current level of capabilities of the Technology Generic within the local automotive industry. The exercise is intended to identify the areas of strengths or gaps so as to prioritise enhancement initiatives moving forwards to be undertake taken by the relevant stakeholders. The strengths or gaps for each of the technology generic classification are; 1 Virtually non existent – the technology is practically non existence locally 2 Weak – has been in operation but relatively not contributing to the need of local automotive 3 Moderate – has been in operation but unable to supports the full requirement of the local automotive
industry. 4 Developing – has been an acceptable producer for the market need but unable to support local volume
requirement 5 Existing and need enhancement – able to support fully local volume requirement but need
enhancement to export The following are the number in each technology generics group for technology development prioritisation; • Virtually non existent 1 • Weak 9 • Moderate 10 • Developing 13 • Existing and need enhancement 2
Malaysia Automotive Roadmap – Highlight
TECHNOLOGY GENERIC TECHNOLOGY GAP (LOCAL CAPABILITY)
VIRTUALLY NON EXISTANCE
WEAK MODERATE DEVELOPING EXISTING NEED ENHANCEMENT
- Emission/exhaust System & control
- Environmental Impact (Fuel cell)
- Recycling Technology & processes
- ELV Recycling
- Energy Recovery technology
- Active Safety and Passive Safety
- Safety related components Systems and Gadgets
- Networking and vehicle interface technology
- Energy Connectivity
- Fuel economy/Air quality Improvement
- Green/alternative Fuel
- Green/ECO/EEV Car Design & Development Tech
- Fuel-Efficient
- EV Efficient
- Weight reduction powertrain
- Material Technology
- Vehicle Prototyping & Testing
TABLE 2 – TECHNOLOGY STRENGTH/GAPS
Malaysia Automotive Roadmap – Highlight
TECHNOLOGY GENERIC TECHNOLOGY GAP (LOCAL CAPABILITY)
VIRTUALLY NON EXIXTANCE
WEAK MODERATE DEVELOPING EXISTING NEED ENHANCEMENT
- Automation
- Robotic
- Tooling tech. for light materials
- Road-worthy testing
- Vehicle afterlife technology
- Complex moulds & dies
- Large Moulds & Dies
- Casting Technology
- Components design & making
- Prototyping Technology
- High strength Light steel
- Automotive grade polymer
- Light Weight Materials
- Advance Plastic
- Polymer/light metal composite
- Software application
- Cost Management Techniques
- Quality System Technology
TABLE 2 – TECHNOLOGY STRENGTH/GAPS (Cont)
Malaysia Automotive Roadmap – Highlight
Prioritised Enablers
Table 3 identifies appropriate enablers to enhance the current strength or gaps of each of the technology generic identifies in table 2. The table indicates the priority ranking of each enabler requiring the level of attention by the stakeholders. The enablers enlisted are; 1 Intensify R&D 2 Enhance Technological collaboration 3 Enhance manpower capabilities. 4 Enhance facilities 5 Enhance Investment The following are the number in each of the technology generics group for prioritisation of enablers are ; • Intensification of R&D 11 • Enhancement of Technological collaboration 15 • Enhancement of manpower capabilities. 10 • Enhancement of facilities 25 • Enhance Investment 14
Malaysia Automotive Roadmap – Highlight
TECHNOLOGY GENERIC TECHNOLOGY ENABLERS
INTENSIFY R&D
TECHNOLOGY
COLLABORATION
ENHANCE MANPOWER
ENHANCE FACILITIES
ENHANCE INVESTMENT
- Emission/exhaust System & control
- Environmental Impact (Fuel cell)
- Recycling Technology & processes
- ELV Recycling
- Energy Recovery Technology
- Active Safety and Passive Safety
- Safety related components Systems and Gadgets
- Networking and vehicle interface technology
- Energy Connectivity
- Fuel economy/Air quality Improvement
- Green/alternative Fuel
- Green/ECO/EEV Car Design & Development Tech
- Fuel-Efficient
- EV Efficient
- Weight reduction powertrain
- Material Technology
- Vehicle Prototyping & Testing
TABLE 3 – PRIORITISING ENABLERS
Malaysia Automotive Roadmap – Highlight
TECHNOLOGY GENERIC TECHNOLOGY ENABLERS
INTENSIFY R&D
TECHNOLOGY
COLLABORATION
ENHANCE MANPOWER
ENHANCE FACILITIES
ENHANCE INVESTMENT
- Automation
- Robotic
- Tooling tech. for light materials
- Road-worthy testing
- Vehicle afterlife technology
- Complex moulds & dies
- Large Moulds & Dies
- Casting Technology
- Components design & making
- Prototyping Technology
- High strength Light steel
- Automotive grade polymer
- Light Weight Materials
- Advance Plastic
- Polymer/light metal composite
- Software application
- Cost Management Techniques
- Quality System Technology
TABLE 3 – PRIORITISING ENABLERS (cont.)
Malaysia Automotive Roadmap – Highlight
MATR & INCENTIVES
The NAP 2014 – MATR Co-relationship has narrowed-down several priority areas with linked with adopt, adapt and innovate approaches. In matching the incentives and the co-relationship’s priority areas, any activities that have the element of both or either Adapt (design & engineering, testing technology) and Innovate (materials development and R&D, technology and / or process development and R&D) shall entitled for incentives under the definition of Highly Critical Value Added Component and R&D. Other elements under consideration shall include Fuel Efficiency and Carbon Emission. The endorsement of eligibility of the activities for incentives will fall under the jurisdiction of a Special Task Force headed by Ministry of Finance (MOF) and comprise members of central ministries and agencies such as MITI, MOSTI, MIDA, industrial representatives and Malaysia Automotive Council (MAC). MAI shall act as the secretariat of this Special Task Force.
Malaysia Automotive Roadmap – Highlight
RECOMMENDATIONS Technology Generic Grouping Based on the strengths (gaps) and enablers presented earlier, the technology generics are grouped and
are classified , as shown in Figure 8, as follows;
1. Environment and Infrastructure 2. Industry Structure And Development 3. Vehicle Design 4. Manufacturing Support 5. Product Development 6. R&D and Technology Development
Recommendation for Affirmative Actions Recommendation Table 4 summarises the recommended affirmative actions to be to be considered by stakeholders in developing of the nation towards becoming the EEV hub for the region, and the proposed actions are categorised in short, medium and long terms perspectives.
Malaysia Automotive Roadmap – Highlight
• Emission/exhaust System & control
• Environmental Impact
• Recycling Technology & processes
• ELV Recycling
• Energy Saving/security tech.
• Active Safety and Passive Safety
• Safety related components , Systems & Gadgets
• Networking and vehicle interface technology
• Energy Connectivity • Fuel economy/Air quality Improvement
• Green/alternative Fuel
• Green/ECO/EEV Car Design & Development Tech
• Fuel-Efficient
• EV Efficient
• Weight reduction powertrain
• Material Technology
• Vehicle Prototyping & Testing
• Automation and Robotic
• Tooling tech. for light materials
• Road-worthy Inspection
• Vehicle afterlife technology
• Complex moulds & dies
• Large Moulds & Dies
• Casting Technology
• Components design & making
• High strength Light steel
• Light Weight Metals
• Advance Plastic
• Polymer composite
• Software application
• Cost Management Techniques
• Quality System Technology
TECHNOLOGY GENERIC
ENVIRONMENT AND INFRASTRUCTURE
• Emission/exhaust System & control
• Environmental Impact
• Energy Connectivity • Road-worthy Inspection
INDUSTRY STRUCTURE AND DEVELOPMENT
• Recycling Technology & processes
• ELV Recycling • Fuel economy/Air quality
Improvement • Automation and Robotic • Vehicle afterlife technology • Cost Management Techniques
• Quality System Technology
MANUFACTURING SUPPORT
• Tooling tech. for light materials • Complex moulds & dies • Large Moulds & Dies • Casting Technology
R&D AND TECHNOLOGY DEVELOPMENT
• Energy Saving/security tech.
• Green/alternative Fuel • Fuel-Efficient • EV Efficient • Material Technology • High strength Light steel • Light Weight Metals • Advance Plastic • Polymer composite
PRODUCT DEVELOPMENT
• Active Safety and Passive Safety
• Safety related components , Systems & Gadgets
• Networking and vehicle interface technology
VEHICLE DESIGN
• Green/ECO/EEV Car Design & Development Tech
• Weight reduction powertrain
• Vehicle Prototyping & Testing
• Components design & making
• Software application
FIGURE 8 - TECHNOLGY GENERIC FOR AFFIRMATIVE ACTIONS
Malaysia Automotive Roadmap – Highlight
TARGETS
ENVIRONMENT AND INFRASTRUCTURE
INDUSTRY STRUCTURE AND DEVELOPMENT
R&D AND TECHNOLOGY DEVELOPMENT
VEHICLE DESIGN
MANUFACTURING SUPPORT
PRODUCT DEVELOPMENT (VEHICLE INTERIOR)
SUPPORTS
SHORT TERM (2014 – 2017) MEDIUM TERM (2018 – 2021) LONG TERM (2022 – 2025)
TABLE 4 – RECOMMENDED AFFIRMATIVE ACTIONS
• Enhance Automotive ELV Recycling activities • Enhance Automation and Robotic in industry • Introduce fuel economy (km/litre) target • Enhance cost and quality management
• Regulate Automotive ELV Recycling activities
• Regulate fuel economy (km/litre) target
• Enhance casting capabilities able to support large moulds and dies making
• Enhance complex moulds and dies design capabilities for all sizes
• Develop tooling technology for light metal and metal composites
• Develop local EV and component design capabilities
• Develop and localise EV powertrain technology
• Enhance local EV and component design capabilities
• Initiate fuel cell design and development activities
• Set long term target on CO2 reduction, • Conduct study on energy connectivity • Review Road-worthy testing programme. • Enhance green EENGV development & usage
• Implement energy connectivity and emission free zone in cities and suburb
• Implement Road-worthy testing. • Intensify usage of green EENGV
• Nationwide implementation of energy connectivity.
• Initiate viability study for Fuel Cell vehicle
• Develop local capability to produce Active, Passive and related Safety devises
• Enhance design and development in Telematics
• Enhance R&D activities in Fuels Efficient and Energy Saving Technology
• Enhance Biofuel R&D • Enhance light weight materials R&D in High
Strength Light Steel , Advanced Polymer, Polymer Composite
• Enhance R&D activities in Battery Technology for EV
• Intensify Biofuel R&D • Intensify Light weight material
development
• Enhance local design capabilities in ICE EEV/ ECO cars and components design
• Develop local capability in EEV powertrain • Enhance Prototyping technology • Enhance software application in design
• Manufacture light weight High Strength steel
• Manufacture Advance Polymer raw materials
• Manufacture Polymer Composite raw material.
• Localise Battery Manufacture for EV • Manufacture kenaf composite parts
and components
MANPOWER FINANCIAL FACILITIES
• Initiate EV battery recycling activity • Regulate EV battery disposal
• Initiate R&D in fuel cell technology
• Enhance parts development using “kanaf” fibre composite.
• Develop product for business diversification of local vendors to maximise machine utilisation
POLICY
Malaysia Automotive Roadmap – Highlight
Conclusive Remarks
The MATR is a guiding document serving as the platform for further elaborations by the automotive stakeholders and industrial community in the national pursue to established Malaysia as the hub for Energy Efficient Vehicle (EEV). The MATR approach correlates relevant policy instruments prescribed in the NAP 2014 to the local automotive ecosystem, and thereby technology generics were established for industrial community to consider acting upon in elevating local capabilities to face the challenges ahead. The document also examine some of the technology priorities within each technology generic and background of each of these technology priorities were briefly described. The technology priorities are non exhaustive, but those listed in the document are technologies currently in need of serious attentions. Over the last 30 years involvement in the automotive manufacturing arena, Malaysian industries have respectively established many technology strengths to support the vehicle manufacturing activities and the parts and components supply chain. However there are areas still in need of enhancement and more so as new materials and processes required in the EEV venture may render some of the current technological capability less useful. Demand for lighter yet high strength materials for parts manufacture in the EEV may insist on different process routes requiring new highly skilled and knowledge workforce to produce. Vehicle design and powertrain evolutions is now rapidly advancing in their sophistications, in all aspects albeit technological and materials selections, as the global demand towards energy efficient and environmentally friendly mobility is on the rise. Translating the current Internal combustion technology progressively to more efficient and green powertrains and later to be replaced by completely new powertrain of electric and fuel cell concepts are massive challenges and industrial structural changes awaiting the local automakers. MATR herein suggests the technological areas in need of attention in the next ten years, both enhancements and development, for later necessity to adapt the local industry with forthcoming change demand. Conclusively the document hope to entice community awareness and courage to step up the nation ability to embark on the development of the nation future automotive endeavours towards a respected EEV manufacturing capability.
Malaysia Automotive Roadmap – Highlight
4.2 MALAYSIA AUTOMOTIVE SUPPLY CHAIN DEVELOPMENT (SCD)
ROADMAP
4.2 Malaysia Automotive Supply Chain Development (SCD) Roadmap
In line with the NAP 2014 targets; to promote a competitive and sustainable domestic automotive industry, and to develop world-class vendors. Domestic vendors will be transformed to become global and regional level component manufacturers, the Malaysia Automotive Supply Chain Development Roadmap is tailored towards achieving the following objectives: 1 To improve local automotive vendors to achieve global vendor capabilities 2 To enhance the development & operation effectiveness of the components and replacement parts
supply chain
Table 5 : Global automotive industry trends and challenges :
External Customer
Competition Industry
• Legislation (environment,
safety, others)
• Raw material and energy cost
• Exchange and interest rate
• Stagnation demand and price
pressure in established
markets
• Segmentation and polarization
(low cost vs. premium)
• Decreasing loyalty
• Quickly entering every
segment
• Moving targets – everyone
optimizing or restructuring
• Global game (eg: aggressive
Asian companies, new
entrants)
• Global overcapacity
• Complex alliances,
partnership, M&As
• Consolidating ecosystem
(suppliers, dealer groups)
Table 5 shows the most significant global automotive industry trends and challenges influencing the development of the Supply Chain Roadmaps.
Malaysia Automotive Roadmap – Highlight
1 World-class vendors:
Figure 9 illustrates the action plans to achieve the world class status amongst the capable local vendors, starting with the internal focus followed by external focus as the vendors capabilities are gradually elevated.
Development steps under the SCD
Diversification • Realistic
(Competency Audit) • Relative • (Competitive
Analysis) • Relevant • (Market Analysis)
Marketing • Placement • Price • Promotion • Product volume
Export • Growth • Need/Desire • Willingness • Understanding • Preparedness • Target/s • Country • Sector • Customer • Product • Service
Business Plan • Competencies • Strategies • Actions • Tracking • Managing Risk • Alignment
Operations • Competitive • Lean • Kaizen • Processes
People • Leadership • Culture • Attitude • Drive • Change
Management
Internal focus
External focus Fig 9
Malaysia Automotive Roadmap – Highlight
2 Improve local vendors capabilities in-line with the NAP 2014 requirements : • Based on the supplier competitiveness level (SCL)
Supplier is able to perform its own research on the product improvement, ideas, conceptual outcome and propose to the OEM.
Component idea, concept and requirement given by the OEM Supplier will come out with component design, detail specification
and component manufacturing Supplier are able to improve and giving alternative to OEM
Detail Component specification given by the OEM Supplier responsible to perform component tooling design, testing
,production facilities and manufacture the component Supplier able to warrant part reliability
Component design , drawing and specification given by OEM Supplier responsible to design and fabricate production facilities
and manufacture the component
Component Specification , Design and production facilities prepared by OEM
Supplier concentrated in production and maintaining the facilities
Level 5
Level 4
Level 3
Level 2
Level 1
Production Process
Design Product
Spec Product Design R&D
Fig 10
Malaysia Automotive Roadmap – Highlight
Level1 Level 2 Level 3 Level 4 Level 5
Global Automotive Supplier Level
Engineering services
Component supplier / Tier 2
Engineering services
Component supplier / Tier
2
Original Design Manufacturer
(ODM)
Module supplier / Tier 1
Module supplier / Tier 1
• Currently only a handful of the local vendors have attained level 3 of the SCL able to maintain their production capabilities, process design and providing product specifications. Henceforth product design and in-house R&D are the main focus of improvement
Gap to be
improved
Malaysian Supplier Level
Fig 11
Malaysia Automotive Roadmap – Highlight
• The followings are the target sit for local vendors to achieve global vendor capability or SCL;
i. To Improve 180 vendors to achieve level 5 according to the global definition
ii. To Improve 150 vendors to achieve level 4 according to the global definition
iii. To Improve 100 vendors to achieve level 3 according to the global definition
• Currently there are a total 34,685 entities link to the automotive components and replacement parts supply chain, employing between 170,000 to 240,000 workforce.
• Focus will be given to enhance the development and operation effectiveness of the components and replacement parts supply chain through the enhancement of ;
i. Quality system management
ii. Operation system management
iii. Business system management
iv. capability, capacity and validation
• Automotive Supply Chain Development Programme:
Available programme under MAI to support the automotive supply chain development :
i. Lean Production System (LPS)
ii. Automotive Supplier Excellence Programme (ASEP)
Malaysia Automotive Roadmap – Highlight
i) Lean Production System (LPS)
LPS is defined as a systematic approach to identify and eliminate waste (non-value added) activities through continuous improvement. Adapted from Toyota Production System (TPS), this system is proven able to bring benefits to implemented company including in reducing cost of operation, producing high quality of product and fast delivery.
LPS started as one of the Malaysia Japan Automotive Industries Cooperation (MAJAICO) programmes under the Malaysia Japan Economic Partnership Agreement signed in July 2006. MAJAICO is a five years project that helps Malaysian Automotive Industries in various fields from the technical base to the business negotiations.
The LPS programme is now under the purview
of the Malaysia Automotive Institute (MAI) since 2011.
Fig 12
Malaysia Automotive Roadmap – Highlight
Figure 13 - LPS Programme Flow
Company Selection
Program Proposal
Working Committee
Meeting
Steering Committee
Meeting
Top Mgmt Training &
Briefing
LPS Seminar
LPS Interim Audit
LPS Coaching (6mths)
LPS Interim Presentation
LPS Final Audit LPS Final Presentation
MAI LPS Community
Fig 13
Malaysia Automotive Roadmap – Highlight
Always Kaizen and revise the standard and comply to it
Super model company level
Follow the standard to all company area Teach LPS to other lines &
other companies
Not exactly follow the standard Can do Kaizen independently
Have standard but not follow Have LPS Kaizen experience with
guidance from others
No standard No LPS experience
Level 5
Level 4
Level 3
Level 2
Level 1
1. Model company condition 2. Maintenance & improvement
system 3. 5S 4. Visualization 5. Manpower skill training 6. Target accomplishment situation
of work
7. Next process pull 8. Smooth process flow 9. Takt production 10. Stop at completion 11. Stop at abnormality
Evaluation Items
Factory Management LPS Practice
Each
participant is
required to
achieve Level
3.0 and above
Figure 14 - LPS evaluation Flow
Malaysia Automotive Roadmap – Highlight
StepⅠ
Back to basic for a beautiful plant : 2 S , Standardization & Build up communication tool, MIFC
Fundamental problems *Safety *Rule & Standard (SOP) *2S -> 3S->5S *Visual Management (MIERUKA) *Education and training
StepⅡ
Process stability problems *Process Control (Capacity & Planning) *Quality Control (Quality Gate & Feedback) *PM (M/C Breakdown Reduction) *Skill (Practical) training
StepⅢ
Ori
gin
al a
ctiv
ity
of
eac
h
com
pan
y A
ctiv
ity
of
LPS
②:Takt Time Production
③:Pull Production ( JIT)
①:Flow production *Small lot size
Figure 15 - LPS Implementation Steps
Malaysia Automotive Roadmap – Highlight
Graduate in MAI LPS Programme
Registration as SLDN company
Appoint Kaizen Leader as SLDN Coacher based on available NOSS
Certified Kaizen Leader based on their competency thru Sijil Kemahiran Malaysia (SKM) using Pentauliahan Pencapaian Terdahulu (PPT)
Company upgrading through the implementation of Automotive Supplier Excellence Programme (ASEP)
Figure 15 - LPS Implementation Roadmap
Malaysia Automotive Roadmap – Highlight
i) Automotive Supplier Excellence Programme (ASEP)
The main objective of ASEP programme is to elevate the local automotive suppliers to world class levels of competitiveness & sustainability by provision of technical assistance & consultancy to; Increase their throughput/productivity in order to improve the competitiveness. Gain a better understanding to optimize resources, improve activities and deliver the best
return for their company. Discipline and structure their business processes to help the company management to
improve their capabilities, and increase the sustainability of their company. ASEP will assist the local vendors in benchmarking themselves against the global automotive supply chain. The exercise will compare the current situation of the local vendors against those vendors in developing or developed country such as; Australia, India, Japan and North America whom has implemented their respective ASEP programmes. The outcome of the ASEP comparison exercises will provide Malaysia with its own ASEP programmes to suit the business culture of the local automotive in order to enhance the industry competitiveness.
Malaysia Automotive Roadmap – Highlight
ASEP Assessment Books Competencies Covered Under 5 Books
Description of Each Competency
Book of : 1. Management &
Leadership
2. Manufacturing & Quality
3. Financial Practices & Performance
4. Procurement and
Project Management
5. People and Performance
Management & Leadership Processes to develop and executes strategic and operational visions
Financial Systems & Practices Processes to manage financial information.
Cost Structures & Analysis Tools Processes to understands products’ costs and tools to controls them.
Global Sourcing & Marketing Strategies Processes to get engages in the global industry.
Supply Chain Integration Processes to integrates suppliers and customers in product development and manufacturing
Customer Focus Processes to understands customers’ needs and disperses the knowledge internally
New Model Introduction Capability Processes to adopts & facilitate new product development.
Manufacturing & Quality The processes of managing quality through the manufacturing process.
Safety The extent to which the company manages the safety of its employees
Technology Investment Processes to develops and manages technology, including production technology
People & Performance Processes to manages workforce engagement.
Figure 16 – ASEP assessment Books & Competencies
Malaysia Automotive Roadmap – Highlight
1. An initial meeting with MAI & suppliers to gain a common understanding and commitment. During the initial visit:
•Distribute Initial Questionnaire
•Signing ASEP non-disclosure agreement
2. A comprehensive 1 day company-wide assessment involving all areas of the business, to establish baseline.
•Assess by using 5 ASEP assessment books
•Involving all related person for each competencies covered under the 5 books
3. Meeting to discuss the outputs of the assessment, including Benchmark Report and Improvement Plans.
•Generate the Benchmark Report
•Identified specific improvement plans
4. Implement first 2 projects. Project based on the prioritized IP or company selection.
•6 months coaching duration
•Continuous project monitoring, analysis & final review.
5. Implement additional projects.
•Additional projects based on the improvement plans
•Optional
6. Annual re-assessment to track progress and improvement.
1. Initial Visit
6. Monitor & Re-asses
5. Additional Projects
4. Initial Projects
3. Report & IPs
2. Assessment
Figure 17 – ASEP Programme Flow
Malaysia Automotive Roadmap – Highlight
Role Responsibilities
Coach • Able to coach companies based on company needs with their expertise.
Client Managers • Window person between MAI and company (suppliers)
• Manage the assessors, coaches and report on the project to MAI
Assessors
• Assess company using Malaysian ASEP assessment tools, identify all projects & generate
report.
• Priorities the improvement projects
• The relation between the coach, client managers & assessors are shown on the figure
below;
Figure 18 – ASEP Roles and Responsibilities
Malaysia Automotive Roadmap – Highlight
Industry Players
Confirm date for assessment and send
questionnaire
Participant
and
Assessor
Participant Complete questionnaire
MAI Input data,
Prepare Assessment Books
Receive completed
questionnaire
Conduct one-day
Assessment
Print Assessment Books, provide to assessor
Assessor Input data to
the Assessment
Tool
Prepare Benchmark Report
Write Improvement Plans (from templates)
Report back to Participant
Client Manager
Provide Feedback
Receive Feedback
Print Benchmark Report, Improvement Plans, provide to Assessor
Compile IP Report book
Figure 19 – ASEP Overall Assessment Process Flow
Malaysia Automotive Roadmap – Highlight
Programme 2013-2014 2014-2017 2017-2020
ASEP • Pilot Project • G1-G5 • G6-G10
LPS • ATEA Phase I
• G1 - G4
• ATEA Phase II
• G5 - G6
• Upgrading G1-G6
6 ASEP companies
60 ASEP companies
for 2014
80 ASEP companies
for 2015
Total of 500 ASEP
companies by 2020
63 LPS
companies
120 LPS companies until year
2015
• Target To Achieve Until Year 2020
Figure 20 – ASEP Targets towards 2020
Malaysia Automotive Roadmap – Highlight
Total of 500 LPS
Companies by 2020
Supplier Competitiveness
Level (SCL)
Lean Production System (LPS)
Automotive Supplier Excellence
Programme (ASEP)
1
Lvl 3 and above
X
2
X
3
X
Lvl 3 and above
4
X
X
5
X
X
X
Main Target SCL Level 3~5
Figure 21 – Comparison between the level of SCL, LPS & ASEP
Malaysia Automotive Roadmap – Highlight
DEP, TCP, ICOE
The overall goal of the Supply Chain Development roadmap is guide the local automotive industry to globally competitive with a structured framework using the established quality mechanisms developed and experienced by the international automotive players such; the “Automotive Supplier Excellence Programme (ASEP)” and the Lean Production System (LPS).
ASEP & LPS are designed to assist Malaysian automotive supply base in achieving competitiveness and sustainability. These programmes are viewed as a unique opportunity for vendors to position themselves on the road to growth and a sustainable future in-line with the NAP 2014 requirements.
Through the creation of an independent, best-in-class benchmarking process and targeted automotive supply chain development, ASEP and LPS will enable Malaysian automotive suppliers to achieve world-class capability and competency levels in the future.
Conclusive Remarks
Malaysia Automotive Roadmap – Highlight
4.3 MALAYSIAN AUTOMOTIVE HUMAN CAPITAL (MAHR) ROADMAP
4.3 Malaysia Automotive Human Capital (MAHR) Roadmap
MAHR will focus on; Detailing the on-going development of human capital in the automotive industry at all levels from
2014 to 2020 to realize the target set in the National Automotive Policy (NAP) 2014.
Improving the quality of existing Human Capital Development programmes at all levels.
Outlines the implementation plan to create specialized automotive industry talents in critical areas for example hybrid components and engines transmissions.
Train competent workforces with various skills and ready for process automation to reduce dependency on unskilled foreign workers and help create skilled local workforces with high incomes.
Assessment and Gap Study
Thrusts
Implementation Plan
The roadmap is centred on assessment and gap analysis of the HCD requirement by the automotive industry . Thrust areas were identified and implementation plans put forward.
Malaysia Automotive Roadmap – Highlight
Assessment and Gap analysis
A study was conducted on the current scenario and future needs on Human Capital for Automotive Industry in Malaysia. Figure 22 demonstrates the human capital development areas as the automotive industry moves forward towards 2017. Manpower requirement is driven by the industry growth and the objectives are set in the NAP 2014
Design & Development
Testing
Vehicle Electronics
Telematics
Maintenance & quality
PPC & Logistic
Distribution & Aftersale
Manufacturing , Assembly and Services
Engine Mfg
Production
Transmission design
Technology Development
1985 (IMP1) -
Assembly Based Industry
Lean Technology
Connected vehicles
Transmission Mfg Green cars
Future Automotive
Production Technology
Areas to be developed through enhancing R&D and Design capability
Current areas to be enhanced
1
2
3
2017 - Energy
Efficient Vehicle (EEV) Hub Re
Manufacturing
Fig - 22
Three Focus growth areas requiring Human Capital Development Programmes:
Malaysia Automotive Roadmap – Highlight
Outcome
• Competent workforce
• High Income
earner • Less
dependency on foreign worker
Current Program
• Industrial Skills Enhancement (INSEP)
• Graduate Employability Program (GED) (Not customized to Automotive Ind. needs)
• Non existent
Cu
rrent
• Unemployed Grad • Unsuitable Grad • Highly dependant
on foreign worker • Low paid
Employment scenario
Futu
re
• Immediately Employable Manpower
Industry Needs
• Improve Quality • Improve Cost • Improve Delivery
Propose Program
1) Customizing INSEP to auto needs • INSEP CQE,TDM, • INSEP PDD,PDE
2) Digital Eng. Program (DEP)
3)Industry lead Professional Cert(IPC) • Giat MARA • Polyteknik • Kolej Komuniti
4) Lean Mfg
1)Industry Driven Graduate Program • Apprenticeship • IPC (Giat Mara, KK,
Poly ..) 2) University
Specialization Program Fig - 23
Figure 23 demonstrates the current employment scenario verse industry needs. The current training programmes focus extensively on generic skill development but lacks the curriculum contents required by the industry to achieve the desires output on quality, cost and delivery. Under the HCD roadmap programmes are proposed a diverse skill required in the automotive industry to elevate the manpower suited for automotive industrial needs.
Malaysia Automotive Roadmap – Highlight
Table 6 shows the target set by the NAP 2014 in term of human capital development, where more focus towards the EEV industry.
To fulfil the industry needs human capital development will focus on the following areas;
Job category Number
Designer 6,900
Engineer 8,400
Executive 16,720
Technician 15,000
Skilled worker 40,500
Total 87,520
By the year 2020, is targeted at 80
percent of the foreign workforce in the
manufacturing sector can be replaced by
skilled and semi-skilled local.
Table 6
1. Product and Process design capability.
2. Competent and immediate employable engineer.
3. Competent semi-skilled and skilled worker to improve process efficiency and effectiveness.
4. Knowledgeable management team to lead to company to enhance competitiveness.
5. Awareness on latest industry trends and country policy.
Malaysia Automotive Roadmap – Highlight
Thrust areas
In consultation with the industry, the results of the assessment and gap study, identifies the following thrust areas are in need of immediate attention; 1. Promote Digital Engineering 2. Adopt and adapt technical engineering based education 3. Leverage on vocational based training 4. Introduce new and review existing curriculum and skills standard 5. Continual Learning
Thrust 1 - Promote Digital Engineering Digital engineering is a process to realize highly complex product design and production process design
capability through computer, information, modelling technology and simulation applications that includes Computer Aided Design (CAD), Computer Aided Manufacturing (CAM) Product Lifecycle Management (PLM) etc.
Inability of some automotive vendors to invest or to exploit the digital engineering system for their parts design and development contributes to many acute problems faced by the OEMs in their vehicle design endeavours
Malaysian automotive manufacturing community have no alternative but to aggressive pursuit the Digital Engineering Practice soonest possible in order to remain competitive.
Malaysia Automotive Roadmap – Highlight
Thrust 2 - Adopt and adapt technical engineering based education While academic education is important for the development of research and technology in the country,
technical education is crucial to support the government’s vision to become industrialized country by year 2020.
The technical education is particularly important for automotive industry that based on advanced technology. Competent personnel with technical background are required in design, prototype, manufacturing, service maintenance, remanufacturing and recycling.
Thrust 3 - Leverage on vocational based training The Government vision to transform the technical education and vocational training (TEVT) sector in a
move to make TEVT more appealing to students.
Automotive industry (manufacturing) alone required 55,500 technical workers (technician, skilled and semi-skilled workers) by 2020 for manufacturing sector to develop Malaysia as a regional hub for Energy Efficient Vehicles (EEV).
Automotive industry needs skilled automotive workforce specializing such as in automated production, autonomous maintenance and quality control that will allow the industry to increase automation and multi skilling.
Malaysia Automotive Roadmap – Highlight
Thrust 4 - Introduce new and review existing curriculum and skills standard The technology in vehicle design and manufacturing has improve tremendously to meet the
requirements of various stakeholders. Conventional skilled workers that mainly focus on manual operation are not competitive. They are expected not only to handle the processes but also to perform basic maintenance and conduct trouble shooting.
In order to train competent worker with above skills, the skills development programme must be based on curriculum and skills standard that are up to date and industry driven.
Thrust 5 - Continual Learning High competition in the automotive industry has forced all car manufacturers to shorten the model
development cycle time from 6 to 7 years to 3 to 4 years. Not only that, the technology is changing rapidly to meet the global trends like low fuel consumptions, low carbon emission, light weight, safety, affordability etc.
All of the above requirements can onlybe achieved through application of advanced technology. In order to remain competitive, the automotive community have no choice but to adopt the continual learning approach and it should involve at all levels of the workforce, from working level up to top management level.
Malaysia Automotive Roadmap – Highlight
Implementation Plan
MHCD roadmap has detailed out the HCD programmes in the automotive industry at all levels from 2014 to 2020 in the following areas; 1. Digital Engineering Prototyping (DEP) 2. Automotive Industry Certification Engineering(AICE) 3. Automotive Industry Graduate Apprenticeship 4. Industry Led Professional Certificate (IPC) 5. Review Occupational Skills Standard 6. Customized Human Capital Development (CHCD) Implementation Plan 1 -Digital Engineering Prototyping (DEP) The objective of the programme is to accelerate the enhancement of design and engineering capability within the automotive industry, especially the component vendors, through digital engineering application. Approach; To provide a common platform through shared facilities, software and prototyping hardware in Design,
Simulation and Analysis for automotive parts.
To provide experts to assist the designers during the entire design work.
To provide skill enhancement training in engineering design through customized and specific problem based learning; and experts during actual development.
Malaysia Automotive Roadmap – Highlight
The Digital Engineering Prototyping (DEP) module is developed based on the model reflected in figure 24. Figure 25 shows the annual set target to achieve of 6,000 designers, draughtsman having CAD/CAE capabilities by 2020
Figure 24
435 985
1685
2435
3235
4075
4975
5900
6900
0
1000
2000
3000
4000
5000
6000
7000
8000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Target no. of Designer (Accumulative by Year)
Figure 25
Malaysia Automotive Roadmap – Highlight
Implementation Plan 2 - Automotive Industry Certification Engineering (AICE) The objective of the plan is to enhance the working competency of newly graduated engineers in areas of product quality and process improvement and to expose the engineering graduates in critical thinking, problem solving approaches and negotiation skills. Approach AICE is a one year programme and the selected participants will initially undergo a two months intensive training at MAI, while the balance ten months they will be assigned to serve as trainee engineers at their respective sponsor company. Upon completion of the programme the engineers will be awarded “Automotive Industry Certified Engineer Certificate” and will subsequently commence their permanent employment with the sponsor company.
530 1080
1780 2530
3370 4400
5600
7100
8400
0
2000
4000
6000
8000
10000
2012 2013 2014 2015 2016 2017 2018 2019 2020
No. of AICE Engineer (Accumulative by Year)
Malaysia Automotive Roadmap – Highlight
Implementation Plan 3 - Automotive Graduate Apprenticeship Programme The objective of the plan is to create well trained and competent manpower that are immediately relevant(employable) to the automotive industry upon graduation. Approach Apprentices will have workshop training during their semester where they will be released in particular
days for the workshop led by industry.
The programme is aimed at exposing the apprentices to the real life working environment so as to gain the essential skills, understand the working culture and to accumulate invaluable industrial experiences.
MAI will collaborate with public and private higher learning institute like UTeM, UiTM, UMP and others.
Competent Engineer
Classroom training
Industry attachment
Classroom training
Industry attachment and identify
project
Classroom training
Industrial Project
Classroom training
Industry attachment
Year 1 Year 2 Year 3 Year 4
Knowledge Skills, Experience & Culture
60 360
660 960
1360
1760
2160
2560
3000
0
500
1000
1500
2000
2500
3000
3500
2012 2013 2014 2015 2016 2017 2018 2019 2020
Target no. of Apprentice (Accumulative by Year)
Malaysia Automotive Roadmap – Highlight
Implementation Plan 4 - Industry Led Professional Certificate Programme (IPC) The objective of the plan is to transform graduating students from existing training institutions or schools as skilled automotive workforce replacing the low skilled foreign workers that ultimately will create high income workforce in the automotive sector . . Approach Train newly graduates students from skilled training institutions to become skilled workforce specializing
such as in automated production, autonomous maintenance and quality control in the automotive industry.
MAI is collaborating with the existing training institutions in Malaysia to prevent replication of affords. Among the institutions are Polytechnic, JTM, IKBN and ICAM.
Training Institute
Vendors - Foreign workers (operators) with low skills at entry level -Difficulty to recruit local operators
Upgrade
- Automation - Multi Skilling - Autonomous maintenance
SPM school leavers &
graduate students
Multi skills worker that meet the industry need and expectation in the
areas that predefined by Industries
Transform
1,200 3,200 6,200
10,200 15,200
23,200
32,200
43,200
55,500
-
10,000
20,000
30,000
40,000
50,000
60,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Target no. of IPC Trainees (Accumulative by Year)
Malaysia Automotive Roadmap – Highlight
Implementation Plan 5 - Review Occupational Skills Standard The objective of the plan is to ensure the National Occupational Skills Standard (NOSS) related to automotive industry are up to date, sufficient and follow the industry trends. . Approach Malaysia Automotive Institute (MAI) as Industry Lead Body (ILB) appointed by Jabatan Pembangunan Kemahiran (JPK) for the automotive industry is responsible to coordinate between the industry and training institutions to ensure both parties come together to develop relevant curriculum and skills standard for Malaysia automotive industry.
Implementation Plan 6 - Review Occupational Skills Standard The objective of the plan is to conduct customized company-wide Human Capital Development Programme for Automotive company. . Approach Perform Training Need Analysis (TNA) and Training Need Identification (TNI) with manager of each departments and develop customized human capital development plan. ( refer below figure for details flow)
Malaysia Automotive Roadmap – Highlight
Conclusion
1. Human Capital Development for the automotive industry must be driven by industry.
2. Human Capital Development for the automotive industry should consider the technology trends and government policy.
3. MAI as a focal point for the automotive industry should create a platform for educators and industry players to come together to discuss the way forward in Human Capital Development.
4. Continual learning should be encouraged for the existing workers in the automotive industry to maintain their productivity and competitiveness.
5. This roadmap should be reviewed periodically with all stakeholders to ensure it is relevant to the current automotive industry scenario.
Malaysia Automotive Roadmap – Highlight
4.4 DEVELOPMENT OF AUTOMOTIVE AUTHORIZED TREATMENT FACILITIES (ATF) FRAMEWORK
4.4 Malaysia Automotive Aftermarket
Aftermarket operations contain all activities related to maintaining a car after its initial sale and until the end of its lifecycle; which encompasses all parts and services purchased for vehicles after the original sale, including replacement parts, accessories, lubricants, appearance products and service repairs, as well as additional innovative services that help to optimize the use of the vehicle.
Malaysia Automotive Roadmap – Highlight
Source: Census of Distributive Trade 2009 – DOS Malaysia
REPLACE
Used Cars
DEALERS
[New Cars]
Vehicles Owners
SPARE PARTS Parts Manufacturers /Wholesalers / Distributors / Parts Retailers
SERVICING & REPAIRS Independent Workshops Franchised Workshops Tyre Service Shops Accessories Shops
USED PARTS Used Parts Importers Used Parts Dealers
REMANUFACTURED PARTS Parts Remanufacturers Remanufactured Parts Dealers
OEM Car Manufacturers
USED CARS Used Car Dealers Pre-Owned Cars Dealers
AUTO RECYCLING (AUTHORIZED TREATMENT FACILITIES) Car Dismantlers Salvage Operators Scrap Metal Dealers
CAR IMPORTERS
Safe & Comfortable Driving Experience
Servicing & Repairs
Ownership
Ownership
Ownership
Accident Repairs / Vehicle Inspections
Parts Purchases
VEHICLE INSPECTION CENTRES Puspakom [PDI / Periodic / Mandatory]
Malaysian Aftermarket Basing on the analysis of the motor vehicle population in Malaysia, at as 31 December 2012 there are 10,349,686 motor cars out of a total of 22,713,018 motor vehicles. These 10.3 million motor cars consist of: 2.8 million cars LESS THAN 5 years old 2.4 million cars BETWEEN 5 to 10 years old 5.1 million cars MORE THAN 10 years old (with 3.3 million EXCEED 15 years old)
Aftermarket
Ecosystem
Malaysia Automotive Roadmap – Highlight
74
NAP 2014 and Transformation of the Aftermarket
NAP 2014 focus on green automotive initiatives does not stop at just aiming to create Malaysia
the hub for Energy Efficient Vehicles; but also focus on the aftermarket factor of automotive,
which is one of the main economic contributors to the country GDP; albeit it also contribute to
environmental matters in terms of resources and environmental depletions.
To capitalize on the opportunity to compete in the soon-to-be liberalised automobile industry
arena envisaged by the Malaysian NAP 2014, the year 2014 would be the start for the transformation of the highly fragmented Malaysian automotive aftermarket.
The fragmented Malaysian aftermarket need to break through their traditional course of action
and focus more on developing true unique and innovative business propositions through looking
for new collaboration that opens up the value chain either horizontally or vertically and especially
focusing on continually developing service innovations, without losing their focus on consumers’
requirements.
Malaysian aftermarket operators need to transform the way they currently operate and support
key roles along the supply chain to become more competitive.
Malaysia Automotive Roadmap – Highlight
NAP 2014 FRAMEWORK on Safety, Security & Environment 1) Promote vehicle safety through
Use of Standards across safety related Used and New Parts & Components; End of Life Vehicle Policy; Vehicle Inspection Policy
2) Promote environment through
Implementation of Euro 4M Adopt 3R (Reduce, Reuse and Recycle) Transform Recycling industry to Remanufacturing industry Transform After Market into a regulated industry towards environment and consumer focus
3) VTA Technical Service Provider
Malaysia Automotive Roadmap – Highlight
To effectively meeting the objectives of the NAP 2014 strategic thrust of Safety, Security and Environment, the Government and the automotive industry stakeholders must work together on ensuring the necessary steps are taken. The steps include many activities, such as: To transform After Market into a regulated industry towards environment and consumer focus
To prepare new and enhance existing infrastructure to support ELV policy
To transform and enhance of the existing automotive part recycling industry;
To develop & promote the infrastructures for remanufacturing;
To promote the creation & adoption of industry codes and standards;
To formulate safety & environment related automotive policies and enactments;
To conduct public education and promote consumer acceptance
AN AGENDA FOR ACTION……
Malaysia Automotive Roadmap – Highlight
Transforming the Aftermarket
Transform Aftermarket into regulated industry towards environment & customer focus through the adoption and use of industry driven Standard Operating Procedures (SOPs) in line with the “4Ms” (Man, Method, Machine and
Material) will drive efficiencies and safety through proper repairs.
• Up-skill Existing Capabilities & Capacities
• Empowering with emerging technologies in the field of energy efficient vehicle, telematics, navigation and infotainment.
MAN
• Accessing to & adopting researched vehicle repair methods
• Adoption of the ISO (MAI-4R1S) System METHOD
• Use of proper tools and equipment
MACHINE
• Promoting the use of mandatory standardized parts certified to meet defined quality and safety specifications MATERIAL
Malaysia Automotive Roadmap – Highlight
MAN : MAI HCD Initiatives
Recognition of Prior Achievement (SKM PPT Program) Recognizing & Certifying Working Technicians with minimum years of confirmed working experiences with the SKMs Extension Programs (MAI IPC Program) A Program that offers up-to-date training, for already qualified automotive technicians, in areas of automotive repair that have changed significantly in the past few years Apprenticeship Programs (SLDN Program) An entry level program for young school leavers to acquire a comprehensive base of skills and experience to begin their career in the automotive aftersales industry MAI IPC Aftersales (Continuous Professional Development) ATA – Automotive Technician Accreditation AMA – Automotive Management Accreditation An industry driven voluntary scheme which tests the current competence of individuals working in the retail automotive industry, who are committed to an ethical code of conduct
Malaysia Automotive Roadmap – Highlight
METHODS : MAI System Standards Initiatives Transforming the aftermarket through the adoption and use of industry driven Standard Operating Procedures (SOPs) supported by innovative Workshop Management System (WMS) Workshop to be 4R1S certified for services focusing to improve: Management Responsibility Process Control
Tech Standards SOP
Outcome based processes Efficiency Effectiveness
Customer Relationship Management Continuous Improvement
Business management development
Providing a platform for Workshop Management System.
Customized workshop accounting system Profit/Losses Balance Sheet
Workshop Service manual
Invoicing and Pricing Instant Service History Customer Details and Information Vehicle Information Stock Control & Parts Annual Management Planning
Malaysia Automotive Roadmap – Highlight
MACHINES (TECHNOLOGY) Workshops Upgrading
MAI will continue to facilitate KPDNKK to provide the proper and correct tools and equipment
to automotive workshops participating in the Automotive Workshops Transformation Program
(ATOMS) where SME workshops are provide soft loans to upgrade their capabilities.
Workshop Management System
MAI is currently studying a proposal to introduce customized and standardized Workshop
Management Systems with view to assist Workshop Operators to used it to better manage
and market their businesses
Lean Production System
Following the successes MAI achieved with the local components manufacturers, MAI is
current embarking on a plan to introduce lean production system and management to the
aftersales industry
Malaysia Automotive Roadmap – Highlight
MATERIAL Promoting the use of mandatory standardized parts certified to meet defined quality and safety specifications will ensure not only safe and proper repairs, but also enhanced work productivity. To further supplement the aim of the VTA program, the NAP 2014 will also promote the gradual introduction and enforcement of mandatory standards for aftermarket parts and components. To sustain and enhance the local aftermarket parts manufacturers, coupled with the emphasis on harmonization, MAI will facilitate KPDNKK and Standards Malaysia to research for the Malaysian Standards “equivalent-conformance” to UNECE safety standards; where special stipulation will be adopted and added to the “MS” Standard safety regulations.
Malaysia Automotive Roadmap – Highlight
Regularizing the Used Parts Industry To transform used part industry and to promote remanufacturing through creation and adoption of an industry driven systems supported codes and standards with focus towards safety and environmental factors
SNAPSHOTS OF USED PARTS INDUSTRY*
5,266 business entities in the used parts trading
90%++ of the used parts are imported
5-10% of the used parts are from local sources
85% of the local used parts are unusable
18% of the imported used parts are unusable
65 % (on average) of the imported used parts are for local consumption
35% are to be re-exported to Middle East and African countries
Imported used parts are 50% cheaper than the original new parts
NAP 2014 will promote and facilitate the Used Parts Stakeholders to work and support an industry-driven comprehensive trading platform supported by an industry endorsed SOPs, that provides on-line and real-time marketplace for the trading of quality used parts
Malaysia Automotive Roadmap – Highlight
*Source: MAARA Report 2010 by UUM - 2010
This platform will be linkable with the WMS of RSRs which will facilitate the systemization of the aftermarket supply chain, and promote trading efficiencies and transparencies. A JPK sanctioned National Occupational Skill Standards (NOSS) will be developed where Stakeholders will be trained on parts recycling and remanufacturing procedures and adoption of environmental guidelines NAP 2014 will promulgate policies to introduce End-of-Life vehicle regime which will be supported by Authorized Treatment Facilities to enable ELV processing NAP 2014 will promote regulations that drive “Extended Producer Responsibility” and ‘4Rs’ practices that substantially decrease the final “waste” of a product by improving product design and thorough the 4Rs of “Reduce, Reuse, Recycle and Remanufacture
Malaysia Automotive Roadmap – Highlight
Core Summary of ELV & Extended Producer Responsibility requirements:
Restrictions on the use of certain heavy metals in vehicle and component manufacture
Design for Dismantle-ability / Recyclability
Marking of certain rubber and plastic vehicle components
Publication of design and dismantling information
Introduction of a Certificate of Destruction
“Free take-back” of vehicles put on the market by OEMs
Licensing of Authorised Treatment Facilities, and the site and operating standards with which they must
comply
Malaysia Automotive Roadmap – Highlight
MAI
QUP
Quality Used Parts [QUP] trading platform
Malaysia Automotive Roadmap – Highlight
What is End Of Life Vehicle End Life Vehicle is a vehicle that has come to the end of its useful life. End Life Vehicles consist of either written off vehicles due to wear and tear OR “total loss” due to accidents
What happens to End Of Life Vehicles? The End Of Life Vehicles that are picked up and taken to Authorized Treatment Facilities (ATF’s) where the de-pollution takes place before dismantling or recycling occurs.
Why End of Life Vehicle Policy? To prevent the build-up of waste accumulated by ELV vehicles by promoting and initiating the collection, reuse and recycling of their components, working toward the final goal of a sustainable environment.
86
Malaysia Automotive Roadmap – Highlight
Authorised Treatment Facility (ATF) ATFs are sites that have been licensed to accept ELV motor vehicles, and are able to comply with the requirements of the ELV regulations. ATFs are more commonly referred to as dismantlers, scrap yards, salvage yards or breakers yards. They also possess the ability and willingness to invest in environmental protection and improvement. ATFs must have a waste management licence from appropriate Environmental Agency and must meet standards to ensure that they:
store and treat ELVs in a way that does not harm the environment;
remove all hazardous components and liquids (known as ‘depollution’);
recycle, store and dispose of the parts appropriately
Malaysia Automotive Roadmap – Highlight
Automotive Dismantlers [Used Part Dealers / Workshops/ Salvage Yards]
Parts Recovery Hulks
Reusable Parts
Magnetic Separations
Air Separations
Ferrous Scraps
Non Ferrous Scraps
Auto Shredder Residues (ASR)
Landfill or Energy Recovery
Recycling Company (New Products)
Bumpers Doors Lightings etc
Engines Transmissions Alternators Compressors etc
Battery Fluids Tyres etc
Plastics Glass Others
• Cu Au Za • Pb Ni
• Workshops • Car Dealers • Insurance Cos • Last Owner
• Workshops • Part Dealers • Car Owners
Sales
Sales
Sales
Automotive Shredder
Remanufactured Parts
Other Parts
Non-Ferrous Metal
Recover to Reuse
Recover to Recycle
Authorized Treatment Facility
END OF LIFE VEHICLES RECYCLING PROCESS
88
Malaysia Automotive Roadmap – Highlight
Introducing End of Life Vehicle Policy
Malaysia Automotive Roadmap – Highlight
Introducing End of Life Vehicle Policy
Malaysia Automotive Roadmap – Highlight
Introducing End of Life Vehicle Policy
Proposed Technology Framework for ELV / Recycling / Remanufacturing
91
Malaysia Automotive Roadmap – Highlight
Promoting Mandatory Vehicle Inspections
The Road Transport Ordinance 1959 requires all commercial vehicles to be subjected to mandatory inspections; and this makes up only 9% of the total number of registered vehicles in the country. Thus the roadworthiness condition for the remaining 90% of the vehicle population in Malaysia is entirely unknown, and therefore largely dubious. There are more than 10 million registered private cars on the road in Malaysia. The PUSPAKOM private initiative on voluntary inspection conducted over a 5-year period (2008 – 2012) indicated the followings: Private vehicle owners’ awareness of car roadworthiness and importance declined over the 5-year
period; In 2012 alone, 59% of those vehicles inspected were found to have technical failures Most private vehicles inspected failed due to brake ineffectiveness and side slip problems, which
contributed to more than 40% of the total failures;
Malaysia Automotive Roadmap – Highlight
PUSPAKOM Private Vehicles Voluntary Inspection Result
Malaysia Automotive Roadmap – Highlight
Moving Forward
Promote Motoring Community awareness and education on vehicle maintenance and inspections
Formulate plans for supporting infrastructures and socio-economical enablers to support the vehicle
inspection and the end of life vehicle regimes
Facilitate training and up-skilling of the automotive industry workforce in the fields vehicle repairs and maintenance; as well as vehicle inspections
Identify and recommend institutional and technical infrastructure requirements regarding the implementations of standards and regulations relating to vehicle maintenance and inspections
Establishing regional / international collaborations for Technical Services and resource sharing
Malaysia Automotive Roadmap – Highlight
Deploy MAI-IPC AICE & Programs using JPK sanctioned PPT / SLDN Platforms
Develop
‘4R1S’
Standards
NOSS Creation
EEV & REMAN
2104 2015 2016 2017 2018 2019 2020
Continual Review of NOSS & Training Program Contents
Develop & Deploy Workshop Management System
Promoting Voluntary Vehicle Inspection
Review need
for Mandatory
VI post 2020
RE
GU
LA
RIZ
E A
FT
ER
MA
RK
ET
P
RO
MO
TE
SA
FE
TY
& E
NV
IRO
NM
EN
T
Facilitate the formulations of Parts Standards
Review & Upgrade WMS
TIMELINE: DEVELOPING AUTHORIZED TREATMENT FACILITIES FRAMEWORK
Establish &
Promote
VTA STDs
Implement
EURO 4M
Standard
Promote Consumer Perceptions & QUP & Businesses
Deploy e-platform for QUP trading
Establish
Policies &
Technical
Standards
for ELV &
3Rs
AU
TH
OR
IZE
D T
RE
AT
ME
NT
FA
CIL
ITIE
S
Promote & Facilitate Business Investment in ELV & QUP
Businesses
MAI-NAP INITIATIVES
Way Forward : Collaboration Effort is Required by All Stakeholders
OEMs • Technology developments & Promotion
of EEVs
• Collaborated with technology providers
for EEV
• Capture new business opportunities -
Malaysia as a regional hub
• Practice Extended Producer
Responsibility
• Promote Design for Recyclability
• Support End of Life Vehicle Programs
• Promote Remanufacturing
Aftermarket
HCD: Green Jobs Capability enhancement
CSD: Promotion of Authorized Treatment
Facilities ;
Transforming Recyclers & Rebuilders to
Remanufacturers
TD: Standardize Business Process; Promote
Environmental friendly Standard Operation
Practices;
Data Management ; Standards & Compliances
Consumers Recipient of the benefits – both economic and environmental
Awareness of Green Automotive Technologies & environment
Consumer Educations on green automotive initiatives & ELV
programs
Mindset or perceptions on green ( recycled or remanufactured)
parts
Government • Legislative & Policy framework
• Policies on infrastructure network
for green automotive
• Incentive and subsidies to encourage
adoption of green automotive products
• MAI facilitate & managing government
agencies in formulating the regulatory
framework for the implementation of
Green Initiatives of NAP 2014
eg: KeTTHA; MOT; MOF MOSTI,
KPDNKK
Supporting Industries • Work with Power/Utilities Companies
to deploy & supply charging infrastructure
• Work with Energy/Oil Companies to deploy
& supply clean diesel or gasoline fuel
• Work with raw materials manufacturers of
steel, plastics & composite
Malaysia Automotive Roadmap – Highlight
4.5 MALAYSIAN AUTOMOTIVE REMANUFACTURING DEVELOPMENT ROADMAP
Global concerns for climate change and the green house gas effects has prompted governments and industries to seriously consider green manufacturing or productions. These concerns also implicates the global automotive industry, which is one of the major contributors to GHG effects. Remanufacturing activity in the automotive industry is known to be a sustainable business proposition, which also helps to minimize the negative impacts of end of life vehicle to the environment. This has raise the Malaysian Government concern for years. The 10th Malaysian Plan (2011-2015) called for building an environment that enhances quality of life. According to the plan, the Malaysian Government has introduce new legislation and incentives to ensure that all industries and consumers comply with the measures necessary to take on the country’s environmental problems through practice of Reduce, Reuse and Recycle – 3R. Achieving the aims of the 10th Malaysia Plan will be further enhanced with the implementation of the green automotive recommendations of the NAP 2014
4.5 Malaysia Automotive Remanufacturing development Roadmap
Malaysia Automotive Roadmap – Highlight
With Malaysia's existing manufacturing base, and the availability of an established and sound used/recycle parts industry, it has the potential to build a strong remanufacturing industry. The green initiatives of NAP 2014 will promote and facilitate the develop the remanufacturing through the “incentivizing & transforming” the existing Used Parts dealers to valued add their businesses to be remanufacturers. The NAP 2014 initiatives will support skills development for remanufacturing; establish a quality control framework around an official remanufacturing definition and quality seal for remanufactured products; clarify trade conditions for remanufactured goods; and, promote the supply and demand for remanufactured products through environmental policies. During the next five years, the NAP 2014 through its green and safety initiatives will strengthen support for pilot companies in automotive components remanufacturing. It will also take measures to promote qualified remanufactured products and boost recycling. As remanufacturing requires support from other sectors such as professional recycling, disassembling and cleaning, the NAP 2014 would promote the construction of policies and programs that will enable these developments. NAP 2014 would also enhance the role of research institutions and companies in pushing forward technological innovation in the remanufacturing sector; with aim to consider establishing an automotive remanufacturing research centre.
NAP 2014 & Automotive Parts Remanufacturing
Malaysia Automotive Roadmap – Highlight
What is Remanufacturing?
• Remanufacturing is a process where used parts are disassemble, clean, repair, and reassemble to be use again.
• Remanufacture ensures the same product quality, durability and performance as new components while maintaining sustainability of resources
• Remanufacturing is an emerging industry of strategic importance which encompasses energy savings, and environmental protection.
• Compared with making new products, remanufacturing is estimated to save energy by 60%, and raw materials by 70%, while it also substantially reduces air pollutants.
Nature
Materials Waste Manufacturing Products Usage
Remanufacturing
Reuse Recycle Disposal
Malaysia Automotive Roadmap – Highlight
Remanufacturing is…
The reduction of :
The Increase of :
Green House Gases -
Raw Material Use -
Landfill Waste -
Energy Use -
Water Use -
-Extended Producer Responsibility
-Recycling Jobs
-Sustainable Industry Profitability
-Affordable Development
-Controlled Industrial Processes
Malaysia Automotive Roadmap – Highlight
Remanufactured product should consist a value-added process which making it a new or different product from its original.
102
Remanufacturing and the ‘3Rs’
PRODUCT RECOVERY
REUSE RECYCLE REMANUFACTURE
Certain parts / products will be collected and reuse back as ‘used’ parts.
Certain parts / products will be recycled back into raw material.
Certain parts / products will undergoes special treatment and restore as a value-added, new parts
Malaysia Automotive Roadmap – Highlight
RAW MATERIAL VENDOR MANUFACTURER USER
• PARTS • VEHICLE • REPAIR
RECYCLE REMANUFACTURE
REUSE REDUCE
REDUCE REUSE RECYCLE REMANUFACTURE
Definition 1.Reducing parts and components of the vehicle to make it lighter and more efficient.
2.Reducing energy sources.
3.Reducing cost of parts.
Reusing parts that has been repaired and reconditioned.
Recycling the recyclable parts back into raw materials. The recycled raw materials are then used to production automotive parts.
Remanufacturing of automotive parts inoperative, failed or worn out. Part Components are cleaned, replaced, reconditioned, reassembled and tested .
Components Replacing metal parts with aluminium or durable plastic.
Any non-moving parts that hardly been worn and torn, e.g. airbag.
Recyclable materials: • Metal • Plastic • Glass • Rubber • Fibre.
Starters, alternators, clutches, brake calipers, wiper motors, engines and transmissions and equipment s.
REUSE, REDUCE, RECYCLE & REMANUFACTURE
Malaysia Automotive Roadmap – Highlight
104
Rebuilt Rebuilt is synonymous with remanufacturing when used in connection with motor vehicle parts and systems but not the entire vehicle. Refurbished Refurbished is synonymous with remanufacturing of furniture systems for offices, hotel lobbies, and hospitals. Recharged Recharged is synonymous with remanufacturing when used in connection with imaging products, such as laser toner cartridges. Factory Reconditioned or Recertified Factory reconditioned or recertified is synonymous with remanufacturing when referring to consumer products, such as electrical hand tools.
REMANUFACTURING COMMONLY ASSOCIATED WITH:
Source: Golisano Sustainability Institute of the Rochester Institute of Technology (Dr. Nabil Nasr)
Malaysia Automotive Roadmap – Highlight
Automotive Parts Remanufacturing
AUTOMOTIVE REMANUFACTURING PROCESS
Malaysia Automotive Roadmap – Highlight
106
TYPES OF REMANUFACTURING PRODUCTS
Remanufactured products include:
• A/C Compressors
• Alternators
• Engines
• Fuel System Components
• Rack and Pinion Steering
• Starters
• Steering Gear Boxes
• Transmissions
• Turbochargers
• Water Pumps
Malaysia Automotive Roadmap – Highlight
Remanufacturing reclaims:
Material Energy from Casting, Machining, etc. Labor from original processes Capital Function/Design Intent
Reduces energy costs and environmental impact of:
• Raw materials and natural resources • Manufacturing products • Shipping components and final product
What are the environment savings?
• Saves enough natural resources to fill a train 1,100 miles long! • Saves enough energy to power 6 million automobiles!
REMANUFACTURING: GAINS & CHALLENGES
Approximately 85% of the energy expended in the manufacture of an original product is preserved in
the remanufactured product.
Malaysia Automotive Roadmap – Highlight
CONSUMER ASPECT
Gain access to like-new products at lower prices than new goods
A remanufactured part normally costs 50% to 75% of the cost of a comparable new one and
customarily carries the same warranty.
Caters customers with ended-warranty vehicles
BENEFITS & CONTRIBUTION FROM REMANUFACTURING INDUSTRY
SAFETY ADHERENCE & COMPLIANCE
PROTECTION TOWARDS CUSTOMER’S RIGHT
GENERATION OF SKILLED MANPOWER
VALUE-ADDED TO THE AUTOMOTIVE INDUSTRY
CONTRIBUTION TOWARDS NATIONAL INCOME
Malaysia Automotive Roadmap – Highlight
Automotive Parts Remanufacturing In Malaysia Implementation Plan
In the field of automotive remanufacturing, there is still no legislation that distinguishes the use of a fully tested, OE quality part from a part salvaged from a scrap yard. This needs resolving, and fast for the safety of road users and to protect the reputation of the automotive remanufacturing industry.
We need to clearly define the term ‘remanufactured’. There is a big difference between a reused, a
refurbished or repaired part and remanufactured part
European Association of Automotive Suppliers (CLEPA) defines a remanufactured part as: ‘fulfilling a similar function to the original part. Manufactured using a standardised industrialized process in line with specific technical specifications. The industrialized process incorporates defined core management standards. A remanufactured spare part is warranted as a new spare part.’
Remanufacturing Issues There are numerous legal, regulatory, and other issues which affect remanufacturers on a daily basis. Some of the main issues affecting remanufacturing are: Core valuation Intellectual property and anti-trust matters Federal, state and local government recycled-content procurement procedures Design for Remanufacturing Government Economic Incentives
Malaysia Automotive Roadmap – Highlight
Implementation Challenges . There are some challenges in implementing the plan to boost the remanufacturing industry:
Lack of cores or part supplies to be remanufactured
May jeopardize the new product business Remanufacturing concept acceptance by consumers Lack of government legislation, policies and initiatives Remanufacturing modern automotive electronics and hydraulics;
o Complexity & Availability of replacement parts o Information and Data o Parts proliferations
Identification of Remanufacturing Industry
Business Approach
Secured Core Flow
Regulation, policy and initiatives
Others
Expected Future Transformation of Malaysia
Malaysia Automotive Roadmap – Highlight
Overview of Proposed Plan
Import of component parts / local
parts
Inspection
(ensure safety and quality specification
standards)
Remanufacturing
(using a combination of imported parts and
locally sourced parts. Localisation of auto-
parts is targeted at 30% - 50% of total production.)
Quality Check
(accordance to PUSPAKOM* standards)
Circuit Testing
(be tested on a purpose-built
circuit within the plant premises)
Complete Remanufactured
Vehicle
Malaysia Automotive Roadmap – Highlight
How to Achieve this?
Introduction of proper Governance through standards and regulations
• Collaboration among Government Agencies and Local Authorities
• Willingness and support from MAARA, FAWOAM, FEMPTAM and other related
associations
Promotion and awareness programmes
• National Driven Advertisement
• Forum/Conference/Symposium/Dialogue
• Creation of new business models and new jobs
Malaysia Automotive Roadmap – Highlight
1. Apply import-related measures specifically concerning used goods only to used goods and refrain from applying them to remanufactured goods.
2. Refrain from applying import prohibitions against all remanufactured goods or against remanufactured goods in specific sectors.
3. Treat remanufactured goods like corresponding new goods when applying tariffs or other border charges.
4. Generally apply technical regulations, conformity assessment procedures, and documentation and import licensing requirements concerning new goods to remanufactured goods.
Proposed Government Initiatives
Malaysia Automotive Roadmap – Highlight
Deploy
MAI-IPC
AICE &
Programs
on 4S1R
Develop
‘4R1S’
Standards
NOSS Creation
REMAN
2104 2015 2016 2017 2018 2019 2020
Continual Review of NOSS & Training Program Contents
Enhance e-platform for REMAN Parts trading
Deploy 4R1S
System &
Pilot REMAN
& Biz Models
Promote Consumer Perceptions of REMAN Product & Businesses
RE
MA
NU
FA
CT
UR
ING
Review & Upgrade 4R1S Standards
TIMELINE: AUTOMOTIVE REMANUFACTURING DEVELOPMENT C
AP
AC
ITY
BU
ILD
ING
Deploy MAI-IPC JPK SLDN Programs for Entry Level Technicians
Deploy MAI-IPC JPK PPT on REMAN for Working Technicians
SU
PP
LY
CH
AIN
DE
V.
Promote R&D on technique & equipment for REMAN processing
Research & Establish REMAN Policy & regulations
Develop ‘technology & information’ platform for green automotive design
TE
CH
NO
LO
GY
DE
V.
Promote & Facilitate REMAN Business Investments
4.6 MALAYSIAN AUTOMOTIVE BUMIPUTRA DEVELOPMENT ROADMAP
4.6 Malaysia Automotive Bumiputra development Roadmap (ABDR)
Malaysian automotive industry is entering a new era of liberalisation and globalisation, where competitiveness is key to any business endeavour within the sector to be successful. Henceforth initiatives towards Bumiputra participations in the industry must be tailored to ensure their participations will be sustainable and remained competitive in the longer terms. The objective of the Automotive Bumiputra Development roadmap (ABDR) is to detail out programmes and activities related to technology development, human capital and supply chain to increase the competitiveness of Bumiputera’s companies and communities within the automotive industry. These activities are in line with Government's efforts to strengthen economy of Bumiputera and produce Bumiputera entrepreneurs that are more competitive. Hence, ABDR will focus on TWO initiatives; 1 To enhance the EXISTING BUMIPUTERA VENDORS able to compete and continue to participate in
the nation automotive businesses, in particular the new EEV venture.
2 To facilitate development of NEW BUMIPUTERA ENTREPRENEURS, comprise of younger generation and matured and well exposed Bumuputera automotive employees, in automotive technology and skills and to expose them in the automotive supply chain so as to initiate new interest amongst Bumiputera to enter the supply network, vendors and the aftermarket communities.
Malaysia Automotive Roadmap – Highlight
1 Programme for Existing Bumiputera Vendors
All the earlier prescribed roadmaps incorporated human capital development programmes which are applicable for most of the initiative to develop Bumiputera to enter the automotive business. More importantly the Supply Chain Development roadmap which is more relevant for the existing vendors to participate in order to enhance their competitiveness.
Malaysia Automotive Roadmap – Highlight
Diversification • Realistic
(Competency Audit)
• Relative • (Competitive
Analysis) • Relevant • (Market Analysis)
Marketing • Placement • Price • Promotion • Product
volume
Export • Growth • Need/Desi
re • Willingnes
s • Understan
ding • Preparedn
ess • Target/s
• Country • Sector • Customer • Product • Service
Business Plan • Competencies • Strategies • Actions • Tracking • Managing Risk • Alignment
Operations • Competiti
ve • Lean • Kaizen • Processes
People • Leadership • Culture • Attitude • Drive • Change
Management
Internal focus
External focus
Supplier are able to perform its own research on the product improvement, ideas, conceptual outcome and propose to the OEM.
Component idea, concept and requirement given by the OEM Supplier will come out with component design, detail
specification and component manufacturing Supplier are able to improve and giving alternative to OEM
Detail Component specification given by the OEM Supplier responsible to perform component tooling design,
testing ,production facilities and manufacture the component Supplier able to warrant part reliability
Component design , drawing and specification given by OEM Supplier responsible to design and fabricate production
facilities and manufacture the component
Component Specification , Design and production facilities prepared by OEM
Supplier concentrated in production and maintaining the facilities
Level 5
Level 4
Level 3
Level 2
Level 1
Production Process
Design Product
Spec Product Design R&D
Graduate in MAI LPS Programme
Registration as SLDN company
Appoint Kaizen Leader as SLDN Coacher based on available NOSS
Certified Kaizen Leader based on their competency thru Sijil Kemahiran Malaysia (SKM) using Pentauliahan Pencapaian Terdahulu (PPT)
Company upgrading through the implementation of Automotive Supplier Excellence Programme (ASEP)
LPS Implementation Roadmap
1. An initial meeting with MAI & suppliers to gain a common understanding and commitment. During the initial visit:
•Distribute Initial Questionnaire
•Signing ASEP non-disclosure agreement
2. A comprehensive 1 day company-wide assessment involving all areas of the business, to establish baseline.
•Assess by using 5 ASEP assessment books
•Involving all related person for each competencies covered under the 5 books
3. Meeting to discuss the outputs of the assessment, including Benchmark Report and Improvement Plans.
•Generate the Benchmark Report
•Identified specific improvement plans
4. Implement first 2 projects. Project based on the prioritized IP or company selection.
•6 months coaching duration
•Continuous project monitoring, analysis & final review.
5. Implement additional projects.
•Additional projects based on the improvement plans
•Optional
6. Annual re-assessment to track progress and improvement.
1. Initial Visit
6. Monitor & Re-asses
5. Additional Projects
4. Initial Projects
3. Report & IPs
2. Assessment
ASEP Programme Flow
Competitive Level
Malaysia Automotive Roadmap – Highlight
Characteristics of entrepreneurs are key to their successful business ventures. To ensure the successful implementation of the ABDR and its programmes, clear understanding of entrepreneurial characteristics is essential and will become the fundamental selection parameters for participants in all the programmes. Key characteristics of entrepreneurs are; Risk Taker - Businesses is risky. Entrepreneurs minimise risk through research, planning, and skill
development. Perceptive - Entrepreneurs view problems and challenges as opportunities Curious - Entrepreneurs like to know how things work. They take the time and initiative to pursue
the unknown. Imaginative - Entrepreneurs are creative. They imagine solutions to problems will encourage them to
create new products and generate ideas. Persistent - True entrepreneurs face bureaucracy, make mistakes, receive criticism, and deal with
money, family, or stress problems. But they still stick to their dreams of seeing the venture succeed.
Goal-setting - Entrepreneurs are motivated by the excitement of staring a new business. Once achieved,
they seek out new goals or ventures to try.
Entrepreneur Profiling
2 Programme for New Bumiputera Automotive Businesses
Malaysia Automotive Roadmap – Highlight
Hardworking - Entrepreneurs need a great deal of energy to see a venture start and succeed. Yet
they are not deterred by the long hours to achieve their goal. Self-confident - Entrepreneurs believe in themselves. Their self-confidence takes care of any doubts
they may have. Flexible - Entrepreneurs must be flexible in order to adapt to changing trends, markets,
technologies, rules, and economic environments. Independent - An entrepreneur’s desire for control and the ability to make decisions often makes it
difficult for them to work in a controlled environment.
EMPLOYEE
SELF-EMPLOYED
LOW
MANAGER, ADMINISTRATOR
HIGH
HIGH
INVENTER ENTREPRENEUR C
reat
ive
& In
no
vati
ve
Managerial Skill, Business Knowhow & Networked
Entrepreneur developmental route
Apart from having the above characteristics, the diagram demonstrates two routes towards entrepreneurship; 1 Self developed through talent
2 Developed through career
Entrepreneurial Development Framework
Malaysia Automotive Roadmap – Highlight
Entrepreneurial Development Stages
Entrepreneurial profiling described earlier reflect the importance of instilling business cultures within each of the new entrepreneur to be developed. The culture cannot be attained solely from classroom lectures instead broad exposure to both the business world and its players is more effective. Hence the roadmap envision to develop the Bumiputra entrepreneurs through the following three stages;
INSTIL WORKING AND BUSINESS CULTURE
EXPOSE TO REAL BUSINESS SETUP AND RELEVANT
TECHNOLOGIES
ESTABLISH COMPREHENSIVE BUSINESS SET UP AND PLANS
STAGE 1 STAGE 3 STAGE 2
MO
NIT
OR
ING
&
SU
PP
OR
T
Framework
Figure 25 illustrates the required framework to encourage and to assist Bumiputra in their business participation in the entire automotive ecosystem. Foundation to the framework is the establishment of a community network amongst potential Bumiputera entrepreneurs and the automotive community so as to instil the initial business culture amongst the entrepreneurs. The network shall be known as “MAI Entrepreneurs Club (MEC)”
Entrepreneurial Development Framework
Malaysia Automotive Roadmap – Highlight
DEVELOP TECHNICAL KNOWHOW,
MANAGEMENT SKILL AND
SUPPLY CHAIN EXPOSURE
BUSINESS VENTURE INDIVIDUALLY PARTNERSHIP JOINT VENTURE CONTRACT MFG
IDENTIFY POTENTIALLY
HIGH QUALITY SELF DRIVEN
ENTREPRENEURS
MAI ENTREPRENEURS CORPORATIVE CLUB
- INTERACTION - GUEST LECTURE ON INDUSTRY STATUS
AND BUSINESS OPPORTUNITIES - ORGANISE ENTREPRENEURIAL EVENTS
GRADUATED STUDENTS
AUTO EMPLOYEES
EARLY RETIRED CIVIL SERVANTS
SELF EMPLOYED
JOIN
MEMBERS ON INVITATION
- CEO OF LOCAL OEMS - ALL EXISTING VENDORS - ACADEMIA & R&D COMMUNITIES - RELEVANT OEM MANAGERIAL STAFF - FINANCIAL INSTITUTIONS
PRIVATE INDIVIDUALS
OTHER BUMIPUTRA DEV. PROG PARTICIPANTS.
STAGE 1 - ENTREPRENEURS IDENTIFICATION AND CULTURING STAGE
STAGE 2 - ENTREPRENEURS DEVELOPMENT STAGE
PROGRAMME 1 MENTORING
PROGRAMME 2 INDUSTRIAL EXPOSURE &
ATTACHMENT
PROGRAMME 3 VALUE CHAIN
EXPOSURE PROGRAMME 4 INTER AGENCIES
EXPOSURE
STAGE 3 – BUSINESS VENTURE
PROJECT PAPER FACTORY LAYOUT & TECHNOLOGY SELECTION
GRADUATING STUDENTS
FIGURE 25
Malaysia Automotive Roadmap – Highlight
The MEC will organise regular gathering inviting prominent vendors and automotive players with the participations by the potential selected entrepreneurs. Networking programmes will be organised at each gathering so that the entrepreneurs will have the opportunities to network with the experience vendors, businessmen and corporate managers. This will expedite learning process and fast culturing the young entrepreneurs into business world. Other events such as industrial visits will be organised to expose the new entrepreneurs to real manufacturing and business environment. MEC is open to graduating and graduate students, auto employees, early aged retired civil servant. Self employed, private individuals and those Bumiputera businessmen under any Bumiputera Development Schemes. Subscribing to MEC, the young entrepreneurs will undergo the; STAGE 1 Programme 1 – Mentoring Industry experts will be made available to help guide and nurture the young entrepreneurs throughout the entire entrepreneur development programme and serve as guidance while attending to MEC activities. STAGE 2 Programme 2 – Industrial Exposure and attachment The entrepreneurs will have the opportunity to request for industrial exposure and attachment wherever possible to industries for their benefits in preparing their future business endeavours. In this respect they will be expose to the entire supply network, support industries, engineering supports and other essential support to operationalize the future business.
Malaysia Automotive Roadmap – Highlight
Programme 3 – Value Chain Exposure The new entrepreneurs will undergo the next programme 3 where they will be expose to the entire automotive manufacturing value change. This will assist them to identify business potential within the value chain and understand the network involved in achieving their business vision. Similarly they will be exposed to the entire Aftermarket value chain should their interest are prone to this sector.
Design & Development
Testing
Vehicle Electronics
Telematics
Maintenance & quality
PPC & Logistic
Distribution & Aftersale
Manufacturing , Assembly and Services
Engine Mfg
Production
Transmission design
Technology Development
Assembly Based Industry
Lean Technology
Connected vehicles
Transmission Mfg Green cars
Future Automotive
Production Technology
Areas to be developed through enhancing R&D and Design capability
Current areas to be enhanced
1
2
3
Energy Efficient Vehicle (EEV)
Re Manufacturing
Fig - 26
Malaysia Automotive Roadmap – Highlight
Programme 4 – Inter Agencies Exposure There are other Bumiputera entrepreneurial development agencies such as “Perbadanan Usahawan Nasinal Berhad”, SME Bank, MARA etc., that not only provide various package for entrepreneurs business endeavours, they too provide financial packages and assistance which will be relevant for the Bumiputera Automotive Development initiative. The programme entails visiting the said organisations and attending their promotional lectures beneficial for stage three of the pro
REPLACE
Used Cars
DEALERS
[New Cars]
Vehicles Owners
SPARE PARTS Parts Manufacturers /Wholesalers / Distributors / Parts Retailers
SERVICING & REPAIRS Independent Workshops Franchised Workshops Tyre Service Shops Accessories Shops
USED PARTS Used Parts Importers Used Parts Dealers
REMANUFACTURED PARTS Parts Remanufacturers Remanufactured Parts Dealers
OEM Car Manufacturers
USED CARS Used Car Dealers Pre-Owned Cars Dealers
AUTO RECYCLING (AUTHORIZED TREATMENT FACILITIES) Car Dismantlers Salvage Operators Scrap Metal Dealers
CAR IMPORTERS
Safe & Comfortable Driving Experience
Servicing & Repairs
Ownership
Ownership
Ownership
Accident Repairs / Vehicle Inspections
Parts Purchases
VEHICLE INSPECTION CENTRES Puspakom [PDI / Periodic / Mandatory]
Aftermarket Value Chain
Malaysia Automotive Roadmap – Highlight
STAGE 4 Stage 4 is where the entrepreneurs will embark on developing their businesses. The mode of business establishment can be in the form of; individual enterprise, partnership, joint venture or even contract manufacturing. At this stage the mentoring programme will play more heavier role of assisting in the planning of the business. Questions may be asked’ • Does the entrepreneur have good ideas and the courage to give the business a chance? • Is the entrepreneur prepared to meet and master the test of strategy and competitive advantage? • Have the entrepreneur identify a market niche that is being missed by other established firms? • Have the entrepreneur identify a new market that has not yet been discovered by existing firms? • Can the entrepreneur generate first-mover advantage by exploiting a niche or entering a market before
competitors?
Satisfied with the outcomes, planning for the business will be assisted, to include; • Industry analysis • Company description • Product and services description • Market description • Marketing strategy • Operations description • Staffing description • Financial projection • Capital needs • Milestones
5 CONCLUSION
Malaysia Automotive Roadmap – Highlight
Conclusion To ensure that the measures outlined in the NAP 2014 could be effectively implemented, these roadmaps that refer to the future development of domestic automotive industry have been established. These roadmaps shall serves as an implementing guidelines to the industry stakeholders in order to enhance the capability and competitiveness of the local automotive industry. These roadmaps will be under the supervision of the Ministry of International Trade and Industry (MITI) and the Malaysia Automotive Institute (MAI) is the agency to coordinate and implement programmes as outlined. The automotive is an important industry to Malaysia with a GDP contribution of 3.2 %, total export of RM5.3 billion, total investment of RM5 billion (January-October 2013: RM3 billion) and total workforce of 550,000 in the year 2012. It is forecasted the industry will contribute 10 per cent to the country’s GDP in 2020 where the vehicle production is expected to increase to 1.35 million units. In term of employment, the automotive industry is expected to create an additional 150,000 employment opportunities by 2020. To ensure a sustainable Malaysian automotive industry, the Government will take various steps to ensure that the automotive industry is competitive domestically and globally. Other than introducing new measures that are align with the global and regional technology changes and latest automotive development, the NAP 2014 also aims for Malaysia to be the regional EEV hub by the year 2020.