Principles 1- Long Term Business Thinking.ppt · P1 –LONG TERM BUSINESS THINKING 1.0 Long Term Business Thinking means all Decision Making Process are based on the company’s Vision,

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AMS 9 PRINCIPLES

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LONG TERM BUSINESS THINKING 1

TOTAL EMPLOYEE INVOLVEMENT & DEVELOPMENT2

3

45 6 7 8 9

P1 – LONG TERM BUSINESS THINKING

1.0 Long Term Business Thinking means all Decision

Making Process are based on the company’s

Vision, Mission, Values and Strategies

2.0 Help the organization to work, grow and align the2.0 Help the organization to work, grow and align the

whole organization towards a common long term

objective.

Vision, Missions and Values Form The Basis For The Decision Making Process

To Achieve Goals And Objectives

Vision Mission ManufacturingValues


Vision

Goals

And

Objectives

Mission Manufacturing

Strategies

Basis And Guidelines For Decision Makings

Values

1. Business Plan

2. Key Performance Indicators (KPI)

1. Business Plan

2. Key Performance Indicators (KPI)

INITIATIVES


3. Customers Satisfaction Survey (CSS)

4. Long Term Employee Development

3. Customers Satisfaction Survey (CSS)

4. Long Term Employee Development

1. Enhance Values For Customer, Society

Shareholders, Employees and The

Economy.

1. Enhance Values For Customer, Society

Shareholders, Employees and The

Economy.

APPLICATION OF THIS PRINCIPLE


Economy.

2. Work, Grow and Align The Whole

Organization Toward A Common Purpose.

Economy.

2. Work, Grow and Align The Whole

Organization Toward A Common Purpose.

VALUESWhat we believe in

MISSIONWhy we exist

VISIONWhat we want to

be

1.0 A business plan is the road map for

the company to move to the future.

2.0 This is developed through defining

the Vision, Mission, Values,

BUSINESS PLAN


EMPLOYEES OBJECTIVESWhat I need to do

STRATEGIC INITIATIVESWhat we need to do

OBJECTIVES / KPI SCORECARDImplementation and Focus

STRATEGIESOur Game Plan

What we believe in

STRATEGIC OUTCOMES

Satisfied

SHAREHOLDERS

Delighted

CUSTOMERS

Effective

PROCESSES

Motivated

WORKFORCE

the Vision, Mission, Values,

Strategies and Objectives of the

organization which lead to strategic

and personnel objectives.

3.0 In this way the whole organization is

directed to work, grow and align

towards a common long term goal.

1. Key Performance Indicators (KPI) are financial and non-financial metrics

used to quantify objectives that were set by the organization.

2. It will measure the performance and achievement of the organization.

3. The KPIs of the organization are cascaded down from top management to all

KEY PERFORMANCE INDICATORS


3. The KPIs of the organization are cascaded down from top management to all

employees.

4. The management shall monitor these KPIs monthly and take corrective

actions if the KPIs are not met.

5. These KPIs will be linked to employee performance management system

FinancialFinancial

Future GrowthsFuture Growths

Financial Related: Revenues, Profit,

Cash Flow and EBITDA etc.

Financial Related: Revenues, Profit,

Cash Flow and EBITDA etc.

New Business Development For

Future Growth – Long Term

New Business Development For

Future Growth – Long Term

4 COMPONENT OF KPI


Critical PrioritiesCritical Priorities

Key EnablersKey Enablers

KPIs Which Are Critical And To Be

Given Priorities – short term

KPIs Which Are Critical And To Be

Given Priorities – short term

Future Growth – Long TermFuture Growth – Long Term

Key Initiatives To Be Taken To Enable

The Achievement

Of Company’s Objectives

Key Initiatives To Be Taken To Enable

The Achievement

Of Company’s Objectives

VISION, MISSION AND VALUES

Delighting Customers, Associates, Society and sHareholders (CASH) through

• Best Value Products

• Excellent Practices

To Be A To Be A World Class ManufacturerWorld Class Manufacturer Of Small Engines and ComponentsOf Small Engines and Components

MISSIONMISSION

VISIONVISION

• Excellent Practices

• Safe and Harmonious Environment

• COntinuous Growth

• Positive Corporate Image

VIMIGOST FY09/10 : 11.11.08 KZ

10

Committed Committed ♦♦ Teamwork Teamwork ♦♦ Lean ThinkingLean Thinking♦♦ Proactive Proactive ♦♦ IntegrityIntegrity

VALUESVALUES

11

A.Financial 1.Revenue RM RM241 million 10%

2.PBT (exclude exceptional items & write back) RM RM19.8 million 30%

3.Dividend Payment % 50% of PAT 5%

4.Asset Turnover Times 2.2 2%

5.Inventory Turnover Times 9.5 2%

Sub-total 49%

B.Future Growth 1.Oil Pump In-house machining for KFVX-TC with Yamada Timeline February 2010 4%

2.Piston In-house machining for KVFX-TC with Honda Forging Timeline January 2010 4%

3.Mass Prod. Of KWWH engines Timeline January 2010 4%

12%

C.Critical Priorities 1.Customer Return Rate

-Domestic PPM 500ppm 2%

-Export (Machining Defects) PPM 50ppm 2%

- Export (Raw Cast Defects) PPM 1000ppm

2.Overall Equipment Effectiveness

-Casting % 70% 1%

-Engine Assembly % 88% 1%

-Machining % 88% 1%

3.Cost Saving Initiatives % of Turnover 1.5% 3%

4.Implementation of ERP System Points 1%

5.Human Resource

-Succession Planning Availability of No.2 Dec 09 2%

Sub-total

Category Key Performance Indicators Measurement TargetCEO

Weightage

KEY PERFORMANCE INDICATOR

12

-Succession Planning Availability of No.2 Dec 09 2%

- Employee Development Total Training Hrs. 48 Hrs/pax 2%

-Job Description for Key Positions 2%

-Competency Development 3%

6.Financial Reporting

-External Audit Rating Points 2%

-Monthly/Quarterly Reporting 2%

-Financial Competency 3%

27%

D.Key Enablers

1.Internal Audit Compliance to 10 days rule report Points 3%

Close out rate on FY findings

Overall rating on findings-High/Medium/Low

2.HMS Audit HMS Implementation rating-Platinum/Gold/Silver Rating Gold 2%

(including autonomous maintenance(step 2&3)

3.ERM Timely submission Points 3%

Accuracy of Risk Score

Adequacy of mitigating actions

System & Compliance

4.System Compliance Alignment with Group Directives Points 3%

5.Management Review Full compliance in terms of adequacy & frequency Points 1%

12%

100%

Sub-total

Sub-total

Grand Total

1. Customer Satisfaction Survey is carried out to measure whether the

company is meeting the customer expectations.

2. The survey will give insight on where changes should be made to

increase satisfaction.

3. Factors that are being measured are:

CUSTOMER SATISFACTION SURVEY


3. Factors that are being measured are:

Quality, Delivery (timeliness), Cost, Services (responsiveness and

helpfulness).

4. Results from the survey will be analyzed and corrective actions will

be taken in relation to the the unsatisfactory areas.

5. Customer Satisfaction Survey is being carried out at least once a

year.

Customer Satisfaction Survey

CUSTOMER SATISFACTION SURVEY


SurveyGet

FeedbackAnalyzeFeedback

Corrective Corrective Actions

Quality DeliveryCost

CompetitiveServices

1. To measure internal human asset satisfaction level in relation to

their involvement in productivity and quality improvement program.

2. To provide a medium for employees to contribute ideas and

comments pertaining to company activities, benefits and others that

EMPLOYEE SATISFACTION SURVEY


comments pertaining to company activities, benefits and others that

are related to their employment.

3. To assist management to determine area of improvement.

Note: Questions in the survey forms shall be designed to include

skill, knowledge, leadership, problem solving and employees’

perception.

Working committee

& selected staff

Do survey draft

STAGE 1 STAGE 2

Working committee

Do Summary

Do Analysis report

Working committee

EMPLOYEE SATISFACTION SURVEY


CEO’s

approval

Distribute / brief

survey form

All employees

fill up survey form

Working committee

propose corrective

actions

CEO’s approval

Do report

Display report at

notice board

All employees

read the report.

A portfolio is collection of products, projects, services or brands offered for sales by

a company. A Product Portfolio Analysis is done to understand the “positioning’ and

profitability or contribution of each product. The simplest technique to use is the:

Contribution Margin Analysis Technique. Other techniques like the Boston

Consulting Group (BCG) Analysis Technique could also be used.

The Contribution Margin Analysis Technique enables a company to decide which:

PRODUCT PORTFOLIO


� Parts that areWORTH KEEPING.

� Parts that need to be focused for COST IMPROVEMENT.

� Parts that need to be seriously considered to be DISCONTINUED.

� New parts to be INTRODUCED.

The above decisions will be made taking into account:• Additional Revenues• Additional Costs• Effects on Other Products (Cannabalization)• Competitors’ Reaction• The Overall Marketing Strategy Of The Company

Documents

Principles 1- Long Term Business Thinking.ppt · P1 –LONG TERM BUSINESS THINKING 1.0 Long Term Business Thinking means all Decision Making Process are based on the company’s Vision,