1. The Evolution of PROTON 2. PROTON Challenges 3 ...ii.islam.gov.my/muamalat/static/pdf/13 JAN...
Transcript of 1. The Evolution of PROTON 2. PROTON Challenges 3 ...ii.islam.gov.my/muamalat/static/pdf/13 JAN...
1
Memperkasa Ekonomi Ummah Melalui Pemantapan Jaringan Tempatan dan Penerokaan Berkesan Dalam Pasaran Global: Persiapan Mendepani Cabaran Baru
Ekonomi Dunia”
Oleh
DATO’ HAJI SYED ZAINAL ABIDIN SYED MOHAMED TAHIRManaging Director
PROTON Holdings Berhad
1. The Evolution of PROTON2. PROTON Challenges 3. Economic Value Chain 4. Conclusion
1. The Evolution of PROTON
PROTON spearheads Malaysia’s Automotive Project Three primary national policy objectives
To spearhead the automotive industrialization process and manufacturing
industries
To acquire and upgrade technology and industrial
skills within the automotive manufacturing
industry
To strengthen the international
competitiveness of Malaysia’s industrial
capability
2
Transforming PROTONTransforming PROTON
CKD
AssembleLocalise
50%
High TechnologyHigh Knowledge Application
EngineManufacture
RND
OwnProductDesign
Value Chain
Investment levels
15 years
Regressive
IPIP
HighLabor
Progressive
Proton evolved from Assembly to Design & Manufacturing in 1996, which involves R&D, Product Design and Engine & Tooling Manufacturing
1980 1990 2000
1983 Permodalan Otomobil
Nasional (PROTON) incorporated
1985 Official
launch of National car , PROTON SAGA by Tun Dr. Mahathir
1986 Proton
Saga is first exported to UK and proceeds to win awards at British International Motor Show
1993 WIRA
1994 PERDANA
1995 SATRIA 1996
- PUTRA
- 1,000,000th proton car production
- PROTON acquires Lotus Group
1997 SATRIA GTi andPERDANA V6
2000 WAJA
2001 First unveiling ofCamPro at Lotus, England
2002 ARENA
2004 GEN.2
2003 PROTON Tanjung Malim
2005 SAVVY
2006 SATRIA NEO
2007PERSONA
2008NEW SAGA
MilestonesMilestonesSnapshot of Snapshot of PROTONPROTON’’ss JourneyJourney
1980 1990 2000
1983 Permodalan Otomobil
Nasional (PROTON) incorporated
1985 Official
launch of National car , PROTON SAGA by Tun Dr. Mahathir
1986 Proton
Saga is first exported to UK and proceeds to win awards at British International Motor Show
1993 WIRA
1994 PERDANA
1995 SATRIA 1996
- PUTRA
- 1,000,000th proton car production
- PROTON acquires Lotus Group
1997 SATRIA GTi andPERDANA V6
2000 WAJA
2001 First unveiling ofCamPro at Lotus, England
2002 ARENA
2004 GEN.2
2003 PROTON Tanjung Malim
2005 SAVVY
2006 SATRIA NEO
2007PERSONA
2008NEW SAGA
MilestonesMilestonesSnapshot of Snapshot of PROTONPROTON’’ss JourneyJourney
3
PROTON Investments
Contributing to domestic investment: Capital investments in Malaysia to date exceeds RM 8 billion
BuildingShah Alam Plant, Medium Volume Factory, Casting Plant, ETM Factory, R&D Centre, Tanjung Malim Plant
EquipmentAutomated assembly line, cathodic electro-deposition facilities, iron casting & machining, ETM assembly
Research and DevelopmentStyling studio, CAD/CAM facilities, component & materials test labs, climatic chamber, engine development facilities, test track, noise lab
4
PROTON OrganizationGroup Manpower Status
Company Manpower Status
Perusahaan Otomobil Nasional Sdn Bhd 5,458
Proton Edar Sdn Bhd 1,974
PROTON Tanjung Malim Sdn Bhd 2,832
Miyazu (Malaysia) Sdn Bhd 312
Lotus Group International Ltd 1,240
Overseas Subsidiaries* 187
TOTAL 12,003
* Overseas Subsidiaries include Proton Edar Indonesia, Proton Cars Australia, Proton Cars UK, and Proton Singapore* Latest as October 2008.
5
2. PROTON Challenges
PROTON is prepared to face the anticipated external challenges impacting the global auto industry
1. The Evolution of PROTON2. PROTON Challenges
Human Capital Development Product Innovation and Service Improvements Global Expansion Program
3. Economic Value Chain4. Conclusion
Changing structure of demand to smaller and more fuel efficient vehicles
Slowing growth of demand due to diminishing consumer confidence and stringent financing
Sustaining margins at times of increasing costs and competitive pressures
Volatile currency rates adversely impact operations and margins
Human Capital Development Development and leadership training programs to boost competencies
Product Innovation and Improvement to gain the competitive edge
Global Expansion Program to tap the world market with value for money products
Key challenges facing the industry …
Global OEMs suffering from declining financial results
PROTON’s way of withstanding the challenges
“Hyundai slashes production”
“Ssangyong files bankruptcy”
“Toyota Motor warned it would suffer its first loss since it began reporting financial results 68 years ago”
“Honda shifted into crisis mode, slashing sales and profit forecasts, delaying plant openings, cutting executive pay and axing the NSX sports car program to rein in costs”
“Renault freezes plans for India plant”
6
2.1 Human Capital Development
People Development: The right talent should have the right skill sets
Talent Management System at PROTON
BusinessKnowledge
BusinessKnowledge
Global Knowledge
Global Knowledge PerformancePerformance
ValuesValues
Functional Knowledge
Functional Knowledge
INDIVIDUALTALENT
INDIVIDUALTALENT
BusinessKnowledge
BusinessKnowledge
Global Knowledge
Global Knowledge PerformancePerformance
ValuesValues
Functional Knowledge
Functional Knowledge
INDIVIDUALTALENT
INDIVIDUALTALENT
Intellectual, technical & business expertise
Consistently deliver commitments
Cross-cultural & global perspective
Continually build understanding of PROTON’sproducts, business and industry
Caring, honesty, accountability
Executive Development Program training and development programs
Multi-business exposure via: staff transfers secondment special assignments
Career Accelerator
Functional Breadth
to give global experience and corporate exposure
Having the right talents at the right places and at the right time. The system will enable the executives to realize their full potential and talents.
It is tailored to individual role profile and it is divided into 2 programs, which are Career Accelerators and Functional Breadth
Recruitment of expatriates and international employees to assimilate new skills, knowledge & culture
7
People Development: Strategic collaboration to develop skills relevant to auto industry
Leadership Development
GOVERNMENT
INDUSTRY
UNIVERSITIES GOVERNMENT
INDUSTRY
UNIVERSITIES
Government policy
R&D grants
Trade protection
Regulations
Development of new technologies
Adding'intellectual capital'
Engagement
Application
Commercialization
1. Universiti UtaraMalaysia
2. Universiti PutraMalaysia
3. UniversitiTeknologiMalaysia
4. Kolej Komuniti5. ..and others
To ensure that organisations have the leadership they need for the future:
Leadership Development
Recruiting & selection
Rewards & compensation
Succession planning Training & development
Career management
- Development programs congruent to the needs of job competency
Performance management
- Plan objectives, performance coaching and review between manager & subordinate
- Measure job related behavioursrequired to meet job responsibilities
- Attracting top talent
- Identify top candidates for the organisation’s most important value-added jobs
- Define a career path for development
8
Leadership: Can it be Holistic?
Focuses on Spiritual Aspects of Leadership
Holistic leaders continuously strive towards creating a culture of openness, trust, respect, participation, empowerment, and growth.
Self-awareness, self-regulation, motivation, empathy, and social skills.
Leading from the mind, the heart and the soul
‘Holistic’ Leader
Intellectual Emotional Spiritual
Virtuous behaviour:Sabr (Patience) Hikmah (Wisdom) Tawakkul (Reliance on Allah) Bai'yah (Allegiance) Ihtisab (Accountability)
Technical & business knowledge
Azan (call for payers) in the production and office area
Regular talks on religious and spiritual subjects among employees
Non work related activities
Team building activities Sports & recreational
activities
To create and strengthen the spiritual awareness among leaders and employees
Within the working
environment
Outside the working
environment
9
Communication SessionsCommunicating a clear sense of purpose and direction
2.2 Product Innovation and Service Improvements
Moving Towards Platform Optimization
SAGA Pre-production Launch by MD with workers and vendors
Town Hall Session between MD and PROTON executives
Previous
Iswara (B)
SatriaNeo (C)
Wira (C)
Waja (C/D)
Gen.2 (C)
Perdana (D)
7 platforms 3 platforms
Target
MPV
Saga (B)
Persona (C)
Savvy (A)
(A/B)
(C/D)
2 platforms
?
?
Current
Vario
us m
odel
s, v
aria
nts
and
mar
kets
10
Enhancing R&D capabilty through collaboration with Lotus
Development of Market Driven Products
Results: Shortening Vehicle Development Time
Market Driven Products
Input from the market is incorporated into the design
Through own research
Feedback from distributors and customers
LOTUS: Company Introduction• Located in Hethel, Norwich
• Colin Chapman built his first racing car in 1948, eventually founding Lotus Engineering in 1952
PROTON acquired Lotus in 1996 to increase engineering and R&D capabilities
Today Group Lotus is organised into 2 divisions:1. Lotus Cars - builds world class, prestige, high performance sports cars for sale 2. Lotus Engineering - automotive engineering consultancy for vehicle manufacturers and suppliers
This allow Lotus to offer the full solution from Concept through to Production
11
Results: Help PROTON regained market confidence and enhance brand image
PRODUCT PLANNING
PROTOTYPING
STYLING
TESTING & HOMOLOGATION
ENGINEERING DESIGN
POWERTRAIN
MANUFACTURINGVENDORS
SUPPLIERS
Shortening vehicle development time from 3 years to 17 months
Developing a completely new vehicle is a complex and highly detailed process, usually taking 36 months from initial concept stage, to the production of a road-worthy model.
PROTON’s state-of-the-art facilities combined with the expertise of PROTON engineers mean the process of developing new models has been reduced to 17 months.
PERSONA – Development Period* of 16 months
PERSONA - Best Model of the Year 2008
2008 Frost & Sullivan ASEAN Automotive Awards
PERSONA – 1st Place (Family Car)
Asian Auto – Bosch Fuel Efficiency Awards 2008
SAGA – Development Period* of 17 months
SAGA – ASEAN Car of the year 2008
Autocar Asean
SAGA – Best People’s Car
Asean Auto-VCA Industry Awards 2008
? MPV – Development Period* of 18 months
*From model fix to SOP
12
Quality Improvement InitiativesPROTON's tough attitude on quality
Results: Solid team culture as a result of clear direction leads to improved quality
PROTON’s focus in every area of quality improvement:
• produce better products,
• implement more stringent systems and disciplines to abide by the procedures,
• improve the manufacturing and engineering processes,
• practice customer-focused service at showrooms and workshops, and
• extend the practice to vendors and dealers.
Quality is a thrust that PROTON strives to improve upon and it is a challenge which we will have to resolve to make an impact globally
In August 2007, PROTON emerged with the greatest improvement in customer satisfaction according to the J D Power Asia Pacific 2007 Malaysia Consumer Satisfaction Index (CSI) Study.
Concerns per car
% concern-free cars
Improving trendline
55.5% 64.2%
PROTON came out with the greatest improvement in customer satisfaction in J D Power Asia Pacific 2007 Malaysia Consumer Satisfaction Index (CSI)
Study.
13
2.3 Global Expansion Program
Global Expansion: Key thrusts for PROTON in the near future
Export Strategy
Establish multiple production hubs• Maximise localisation to reduce cost• Complementation of key components
Move to market driven product development • Adopt a value for money strategy• The right car, right price and right time
Focus on high growth, regional markets• Target ASEAN, China, India and the Middle East
North Africa (MENA) for economies of scale• Leverage trade and cultural linkages to establish
presence
PRODUCTS
MARKETS
PRODUCTION
•
•
••
•.
CHINA
UK
MIDDLE EAST & AFRICA
AUSTRALIA
ASEAN
IRAN
Growth area: Asia (led by
China), Africa and Middle
East
INDIA
PROTON will focus on expanding traditional markets like South Africa, Middle East and develop new high-growth markets i.e. China, India and Indonesia
14
Through knowledge, sharing and unity, mutual benefit can be attained
3. Economic Value Chain
PROTON: A Local Company with Global Presence
PROTON’s and Lotus’collaboration with KACST to:
• Effect technology transfer• Assist in setting-up of
Automotive Development Center
• Assist in manufacturing & local parts development
• Relationship established in 2001 for the assembly and distribution of PROTON products
• To date, almost 15,000 PROTON cars OTR• 200 units of Waja taxis currently operating in
Tehran • Gen.2 CKD assembly agreement recently
signed to allow Zagross Khodro to assemble the Gen.2 model
• With a current plant capacity of 15k – 25k (expandable to 50k), Iran can be PROTON’shub for the Middle East – North African market
Signing of Strategic Collaboration Agreement with SAIPA on 2nd Aug 08 governing the following:
• Engine Development: potential localisation and production of CamPro
• Potential joint branding and assembly of MPV LHD
• Model Development: potential development of new model based either on new platform or PROTON’scurrent platform
• R&D Activities: potential engine integration; potential full model change
KEY • Proton own plant (3)• CKD Assembly by
distributor(1)• Distribution
Subsidiaries (4)• Active Distributors (11)
Australia
Malaysia
Taiwan
IndonesiaBrunei
Nepal
Singapore
Sri Lanka
KuwaitEgypt
Syria
UAE
QatarIran
United Kingdom
UKUK
MIDDLE EAST& SOUTH AFRICA
MIDDLE EAST& SOUTH AFRICA
AUSTRALASIAAUSTRALASIA
ASIA & INDIAN SUB-CONTINENTASIA & INDIAN SUB-CONTINENTTurkey
South Africa
15
Value Creation in Domestic Market (1/1)
Value Creation in International Market (1/2)
PROCUREMENT MANUFACTURING
andENGINEERING
SALE & DISTRIBUTION
Total Vendor : 220(Muslim Vendor : 77)
Annual Business Volume(for Muslim vendors)
RM 1.3 Billion+
Employee : 8,290(95% Muslim)
Annual Employee Costs(for Muslim Employees)
RM 300 Million
Total Sales Dealers : 232(Muslim Dealers: 148)
Annual Business Volume(for Muslim Dealers)
RM 1.7 Billion*
NON MUSLIM15%
MUSLIM45%
FOREIGN40%
+ FY07/08 COMPONENT PURCHASE VALUE (TOTAL RM2.92 BILLION)
Direct Employees & dependants
22,000 (Muslims only)
Indirect Employees & Dependants
100,000 (Total)
*For Year 2007
MANUFACTURING
Design
Procurement
Assembly
Form collaboration with
• Zagross Khodro
• SAIPA
• KACST
CKD Operations
• Iran ( Zagross Khodro )
• Egypt
• Jordan
• China (Youngman)
Facilitating the collaboration of Malaysia Vendors with Local Vendor in China & Iran
Under discussion
16
Value Creation in International Market (2/2)
1. The Evolution of PROTON
4. Conclusion
Conclusion : What makes us different.
Gulf Countries
Egypt
Syria
Turkey
Iran
Indonesia
Others
Business Volume (USD Mil)
6
25
117
25
33
28
22
DISTRIBUTION
• Brunei
• Bangladesh
• Lebanon
• Iraq
• Saudi
• Oman
• Bahrain
• Qatar
• UAE
Point 1
Common Islam believe and value system
Point 2
Muslim etiquette :• trustworthiness • respectful • moderation • humility
• Principle-led business• Highest level of professionalism
• Work-life balance
Muslim
business
partners
17
Characteristic of the Ummah
Verily never will Allah change the condition of a people until they change it themselves(with their own souls)
Ar-Ra’d:11 Translation by Yusuf Ali
Thank You