malaysia automotive roadmap

MALAYSIA AUTOMOTIVE ROADMAP

HIGHLIGHTS

Malaysia Automotive Institute www.mai.org.my

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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.


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.


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.


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


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, public 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.


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..


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


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.


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,


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


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


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


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


Fig. 5 Technology Prioritisation Approach

CORRELATED

PRIORITY AREAS

TECHNOLOGY GENERIC TECHNOLOGY PRIORITY


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


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


TECHNOLOGY ROADMAP FOR GREEN MOBILITY INFRASTRUCTURE AND GREEN VEHICLE TECHNOLOGY

FIG 6 (b)

2015 2017 2019 2021 2023 2025 2014



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


TECHNOLOGY ROADMAP FOR GREEN MOBILITY INFRASTRUCTURE AND GREEN VEHICLE TECHNOLOGY (CONT.)

2015 2017 2019 2021 2023 2025 2014



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.



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



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


TECHNOLOGY GENERIC TECHNOLOGY GAP (LOCAL CAPABILITY)

VIRTUALLY NON EXISTANCE

WEAK MODERATE DEVELOPING EXISTING NEED ENHANCEMENT

- Emission/exhaust System & control

- Environmental Impact (Fuel cell)


- 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


- Fuel-Efficient

- EV Efficient


- Material Technology


TABLE 2 – TECHNOLOGY STRENGTH/GAPS


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




- Casting Technology


- Prototyping Technology


- 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)


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


TECHNOLOGY GENERIC TECHNOLOGY ENABLERS

INTENSIFY R&D

TECHNOLOGY

COLLABORATION

ENHANCE MANPOWER

ENHANCE FACILITIES

ENHANCE INVESTMENT

- Emission/exhaust System & control

- Environmental Impact (Fuel cell)


- 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


- Fuel-Efficient

- EV Efficient


- Material Technology


TABLE 3 – PRIORITISING ENABLERS


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




- Casting Technology


- Prototyping Technology


- 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.)


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.


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.


• 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


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 EEV development & usage

• Implement energy connectivity and emission free zone in cities and suburb

• Implement Road-worthy testing. • Intensify usage of green EEV

• 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


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.


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.


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


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


http://images.google.com/imgres?imgurl=http://www.harper-adams.ac.uk/undergraduate/img/uploaded/EngineeringCAD.jpg&imgrefurl=http://www.harper-adams.ac.uk/undergraduate/course.cfm?id=27&course_area=Engineering&usg=__X6XMACshkbRXfMaJ8PCaGuuq1HE=&h=270&w=242&sz=48&hl=en&start=124&um=1&tbnid=pZbmaCAZ9nGUlM:&tbnh=113&tbnw=101&prev=/images?q=Engineering+design+with+computer&ndsp=18&hl=en&rls=com.microsoft:en-us&sa=N&start=108&um=1

http://images.google.com/imgres?imgurl=http://amtec.kctcs.edu/images/Manufacturing-4.jpg&imgrefurl=http://amtec.kctcs.edu/index.cfm&usg=__G7LYbLDN2ulg_hFl-DuIcKMxypo=&h=360&w=480&sz=47&hl=en&start=3&um=1&tbnid=V0FEBdtaRyGOPM:&tbnh=97&tbnw=129&prev=/images?q=manufacturing+picture&hl=en&rls=com.microsoft:en-us&sa=X&um=1

http://images.google.com/imgres?imgurl=http://www.protaform.com/toolinganddesign.jpg&imgrefurl=http://www.protaform.com/toolinganddesign.html&usg=__CFsVT2QmYMZbPWVMZX-J8CS6Fz0=&h=353&w=614&sz=51&hl=en&start=46&um=1&tbnid=-4_dCzUhFosELM:&tbnh=78&tbnw=136&prev=/images?q=tooling+making&ndsp=18&hl=en&rls=com.microsoft:en-us&sa=N&start=36&um=1

http://images.google.com/imgres?imgurl=http://www.fev.com/data/images/2_2_1_cylinderhead.jpg&imgrefurl=http://www.fev.com/content/public/default.aspx?id=490&usg=__gE1ppnUEq175uxCkHrv515udhuw=&h=354&w=406&sz=40&hl=en&start=62&um=1&tbnid=MY790bq3jEX7rM:&tbnh=108&tbnw=124&prev=/images?q=component+engineering+design&ndsp=18&hl=en&rls=com.microsoft:en-us&sa=N&start=54&um=1

http://images.google.com/imgres?imgurl=http://www.sae.org/automag/techbriefs/11-2002/12.gif&imgrefurl=http://www.sae.org/automag/techbriefs/11-2002/page3.htm&usg=__L9mTXoun8QvxL2hK_DBVyRFTWz8=&h=375&w=450&sz=37&hl=en&start=1&um=1&tbnid=jrooRHCngTtWYM:&tbnh=106&tbnw=127&prev=/images?q=front+end+module&hl=en&rls=com.microsoft:en-us&um=1











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


• 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)


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


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


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


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


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


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.


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


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


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


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


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


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


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


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.


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:


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.


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.


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.


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.


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.


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.


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


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)


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)


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)


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)


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.


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.


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



OEM Car Manufacturers



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


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.


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


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……


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


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


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


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


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.


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


*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


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


MAI

QUP

Quality Used Parts [QUP] trading platform


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


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


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


Introducing End of Life Vehicle Policy


Introducing End of Life Vehicle Policy

Proposed Technology Framework for ELV / Recycling / Remanufacturing

91


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;


PUSPAKOM Private Vehicles Voluntary Inspection Result


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


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


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


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


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


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


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


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


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)


Automotive Parts Remanufacturing

AUTOMOTIVE REMANUFACTURING PROCESS


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


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.


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


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


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


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


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


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


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.


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.


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





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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


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


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


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


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.


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


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



OEM Car Manufacturers



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


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


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.

malaysia automotive roadmap

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