1.

0 Introduction

Operation management is defined as any activities that relate to the creation of goods
and services through the transformation of inputs to outputs. Activities creating goods and
services take place in all organizations. The ideal situation for a business organization is to
achieve an economic match of supply and demand. Having excess supply or excess capacity
is wasteful and costly which is having too little means lost opportunity and possible customer
dissatisfaction. The key functions on the supply side are operations and supply chains, and
sales and marketing on the demand side.

This course presents a process model of operations that describes inputs being
transformed into outputs within the boundary of an operations system. It also discusses the
role of operations managers, in particular the importance of focusing on suppliers and
customers who are outside this boundary, as well as on other aspects of the operations
system's external environment

While the operations function is responsible for producing products and or delivering
services, it needs the support and input from other areas of the organization. Business
organizations have three basic functional areas, which is finance, marketing, and operations.
It does not matter whether the business is a retail store, a hospital, a manufacturing firm, a car
wash, or some other type of business because all business organizations have these three
basic functions which is finance, marketing and operations for producing goods and
providing services.

Based on our interview, Perusahaan Tukang Kayu A.Hamid Sdn Bhd is an industrial
company for furniture. The founder of the company was Allahyarham Tuan Haji Abdul
Hamid Bin Ahmad in the year of 1952. It is one the earliest furniture industry in Johor totally
owned by Bumiputra. We produce aspects of categories in our productions that are basically
made out of local woods such as meranti like home furniture, offices, and schools and even
mimbar for mosque. The company have many experienced employees to make sure that their
company will always follow the customer need to provide goods and services.

1
 2.0 Objective Of Factory Visit

The objective of factory visit is to gain our knowledge about how a company or
industries manage the production of their product.
Another objectives is to provide students an insight regarding internal working of
companies.
Provide an excellent opportunity to interact with industries and know more about
industrial environment.
It provides students with an opportunity to learn practically through interaction,
working methods and employment practices.

3.0 Learning Outcome

At the end of the course, student should be able to :

1) Analyze industrial management problem and streamline by using suitable techniques

(PLO1, C4)

2) Demonstrate the ability to identify data requirements for successful implementation of

production and operation methods (PLO2, P4)

3) Organize and supervise production and operation in industry (PLO4, A4)

2
 4.0 Background of company
Perusahaan Tukang Kayu A. Hamid Sdn. Bhd. Is an industrial company for furniture. The
founder of the company is Tuan Haji Abdul Hamid bin Ahmad in year of 1952. It is one the
earliest furniture industry in Johor totally owned by Bumiputera. We produce aspects of
categories in our productions that are basilly made out of local woods like home furniture,
offices, and schools and even for mosque and surau.

Tuan Haji Abdul Hamid bin Ahmad was born in 1932 in Parit Hj Mohammad Bagan, Rengit
a small town located within the district of Batu Pahat in the state of Johor. He has indulged
himself in the art of carpentry since his early school days or more precisely, since he was at
the tender age of eight.

His talents in carpentry were initially devoted into helping his late grandfather Allahyarham
Hj Taib make doors, wooden planks for stairs, as well as repairation of houses.Tuan Haji
Abdul Hamid received his first education in Sekolah Merlong Rengit in 1941. However, his
education lasted for only two years until he was at the age of eleven in 1943, during which
began the brutal Japanese occupation of Malaysia (then known as 'Tanah Melayu').

Throughout and following the Japanese occupation of Tanah Melayu, Tuan Haji Abdul
Hamid seek solace and found peace in his love and passion for carpentry. This passion and
enthusiasm for carpentry has greatly assisted him in going through the hardships of life
during and post-Japanese occupation. Building houses was one of the things that Tuan Haji
Abdul Hamid specialized in before he started designing and creating furniture. His skill in the
construction of houses was in very popular demand at that time, that often, he would receive
new orders from customers while another customer's house was still under construction and
far from its completion. It was while he was deep in the business of house construction that
Tuan Haji Abdul Hamid began to expand his interest in carpentry and venture into the
creation of home furniture such as dining tables, armoires, beds, and sofas.

As his interest in creating furniture intensified and proliferated over the years, Tuan Haji
Abdul Hamid established a furniture business known today as Perusahaan Tukang Kayu A.
Hamid Sdn Bhd. It was the first Malay furniture to be established in the town of Batu Pahat,
and possibly one of the earliest Malay furniture business that sprang up in the state of Johor.
Responses from customers were very invigorating, the number of orders for furniture made
by customers tend to be so overwhelming, that Tuan Haji Abdul Hamid often had to work late
into the night, racing against time in order to reach customer's deadlines. At this time, his
workshop was located in Belahan Tampok, which is about eight kilometers from the main
road of Rengit, Pontian, Johor.

His profound interest in carpentry was largely encouraged by his family members, relatives,
as well as the neighbors and the locals, from whom he received a great amount of respect for
his works, and it was also boosted by the considerable amount of income earned from his
furniture. External influences from those close to him may have also proliferated his interest
in carpentry; his cousin, Allahyarham Hj Ihsan, as well as his neighbor, Allahyarham Hj
Suphie, were also said to be exceptional in constructing houses and making furniture. In

3
1952, Tuan Haji Abdul Hamid moved his workshop from Belahan Tampok to the small town
of Rengit, where he had rented a piece of land on which he constructed his new furniture
workshop. Business in Rengit boomed even harder than when he was in Belahan Tampok; he
found himself working increasingly harder in order to meet the demands of customers in
Rengit.

In his early involvement in the furniture business, due to the lack of equipment suppliers,
Tuan Haji Abdul Hamid was also compelled to take frequent trips to Singapore by
hitchhiking a truck owned by a Chinese tauke that transported bananas.

Tuan Haji Abdul Hamid had also seek advice and counsel from RIDA (MARA) while he was
still new in the furniture business. The MARA Officer at that time, Mr. Syed Rahman, and a
European engineer of RIDA has paid a visit to his furniture workshop in Rengit. Following
this visit, RIDA later sent Tuan Haji for a two-week course on carpentry in Deithelm (a
renowned furniture factory in Singapore). RIDA also approved his loan of RM 1,200, which
was contributed towards the purchase of machines appropriate for producing furniture. The
machines purchased were planer (mesin ketam), saw and drill. These machines had to be
bought in Singapore, as they were unavailable anywhere near Rengit at that time. Even
though his customer base in Rengit was strong, steady and still expanding, due to the total
absence of electricity and his determined will to take his business to a more commendable
level and transform it into an empire, in the year 1970, Tuan Haji Abdul Hamid decided to
move his business as well as his family to the town of Batu Pahat where there was a bigger
possibility of achieving his ambitious goals for his business. The land on which he built his
furniture factory which still stands to this day, in the very same location as when it was first
built, was rented at the price of RM 70 per month. After 10 years of renting this land,
however, the landlord eventually agreed to sell this land off to Tuan Haji Abdul Hamid.

Tuan Haji Abdul Hamid had been active in attracting Malay youth to indulge themselves in
the art of carpentry. As an employer, Tuan Haji Abdul Hamid did not only employ for the
sake of keeping the factory and therefore the business running, but also to teach and train his
employees how to make furniture. He has introduced the concept of 'simultaneous learning
and working.' Some of his trainers include Mr. Khamis of Khamis Perabot, Mr. Munajat of
Syarikat Ikatan Muhibah, and Mr. Hassan of Perusahaan Tukang Kayu A. Hamid.

Currently, furniture produced by Perusahaan Tukang Kayu A. Hamid Sdn Bhd is marketed
not only in the area around Lembah Kelang and in its birth state of Johor, but they are also
available in cities as far as Brunei Darussalam.

Tuan Haji Abdul Hamid's business was not restricted to the production and selling of
furniture only. Tuan Haji Abdul Hamid has also bought several pieces of land on which he
built houses for the purpose of selling it. He also produced water tanks with the measurement
of 5' x 4'. At the current moment, Tuan Haji Abdul Hamid is also aggressive into the palm oil
plantation business. In addition to this, he is also focusing on land and property management;
much of the land, shop lots, and houses in Johor and Klang Valley he owns are available for
rent.

4
 5.0 Organizational Structure of Operation Management

FOUNDER
Tuan Haji Abdul
Hamid bin
Ahmad

MANAGING
MARKETING
DIRECTOR

MARKETING MARKETING
Tuan Haji Abdul AND CRO WM, SE
Rahman Puan Hajah Tuan Abdul
Saliah Rashid

5.1 Operation Management Practices

There are only two operation management they practices, such as;

Aggregate Planning - The company got their overall strategy of their production and
their resources such as their wood (Melati) is enough for one years.
Maintainances control The company use this strategy to minimizes the breakdown
of equipment so that minimal disruption to the production process occur

6.0 Operation Management Practices And Performance

Range of scores Indicator

3.5-5 High

1.5-3.49 Medium

0-1.49 Low

5
6.1 Operation Management Decision Area

Operation management decision area Average score

Capacity 3.2

Supply network 2.6

Process technology 3.2

Development and organization 3.19

Operation management decision area

Average score

Operation management is the business function responsible for managing the process
of creation of goods and services. It involves planning, organizing, leading and controlling.
All the resources needed to produce a companys goods and services.

Based on the graph, the highest average scores for operation management decision
area is capacity and process technology which is 3.2 while the lowest average scores is
supply network which is 2.6.

6
6.2 Operation strategy

Operation strategy Average score

Quality strategy 3.6

Flexibility strategy 2.75

Delivery strategy 3.8

Cost strategy 4.67

Operation Strategy

Average scores

Operation strategy is the total pattern of decisions which shape the long term capabilities of
any types of operations and their contribution to the overall strategy.

Based on the graph, the highest average scores for operation strategy is cost strategy which is
4.67 while the lowest average scores is flexibility strategy which is 2.75.

7
6.3 Manufacturing Performance

Manufacturing performance Average score

Financial performance 4.33

Manufacturing performance 3.83

Manufacturing performance

manufacturing performance

Financial performance

average score

Based on the graph, the highest average scores for manufacturing performance is financial
performance which is 4.33 while the lowest average scores is manufacturing which is 3.83.

6.4 Firm Business Performance.

8
The type of company that we choose is catogerized as wood related company which is
located at Peserai, Batu Pahat. This company is a local ownership which is a family business
since 1967. This company has 20 number of employees and since last three years, this
company overall performance is no change. The company use the total quality management
as their system to improve and stabilize their company until now. Total Quality Management
also known as total productive maintenance, describes a management approach to long-term
success through customer satisfaction. In a total quality management effort, all members of
an organization participate in improving processes, products, services, and the culture in
which they work.

7.0 Marketing and Market Competitive

9
7.1 Marketing Strategy Of Firm

In the early year, of his contribution in furnishing sector, due to the lack of
machineries and tool he has to make frequent trips from Rengit to Singapore to make
the jobs done.
Meeting been held between him and RIDA (MARA) . Head officer at that time was
Encik Syed Rahman with his European engineer and they did visit his workshop in
Rengit. RIDA had sent him to attend the course in BEITHELM.
RIDA agreed to give loan of RM1200 and he went to Singapore and purchased three
machine, plane machine and machine for drifting.

7.2 Marketing Mix Strategy

During his stays in Pekan Rengit, he actively trained the Malay youth in furnishing.
He introduced the concept of work and study. The trainers that contribute with him are
Encik Khamis( Khamis Perabot), Encik Munajat (ikatan muhibbah), Encik Hassan
(Perusahaan Tukang Kayu A. Hamdi) .
Status of his business is widely spread across the country the famous location are in
Lembah Klang area, Johor and Brunei Darussalam.
Business of Tuan Haji Abdul Hamid is not only concerned for furnishing but he
widens the scope of his business since 1557 till now.

8.0 Discussions

10
8.1 Capacity

Capacity is defined as the ability to achieve, store or produce. For an organization,

capacity would be the ability of a given system to produce output within the specific
time period. In operations, management capacity is referred as an amount of the input
resources available to produce relative output over period of time.

Capacity Planning Classification;

Capacity planning based on the timeline is classified into three main
categories long range, medium range and short range.

Long Term Capacity: Long range capacity of an organization is dependent

on various other capacities like design capacity, production capacity,
sustainable capacity and effective capacity. Design capacity is the maximum
output possible as indicated by equipment manufacturer under ideal
working condition. Production capacity is the maximum output possible
from equipment under normal working condition or day. Sustainable
capacity is the maximum production level achievable in realistic work
condition and considering normal machine breakdown, maintenance, etc.

Medium Term Capacity: The strategic capacity planning undertaken by

organization for 2 to 3 years of a time frame is referred to as medium term
capacity planning.

Short Term Capacity: The strategic planning undertaken by organization for

a daily weekly or quarterly time frame is referred to as short term capacity
planning.

Perusahaan Tukang Kayu A. Hamid uses the right planning to increase the
productivity of their production and make sure to produce relative output
over period of time

8.2 Supply Network

Supply Network Planning (SNP) integrates purchasing, manufacturing, distribution,

and transportation so that comprehensive tactical planning and sourcing decisions can

11
 be simulated and implemented on the basis of a single, global consistent model.
Supply Network Planning uses advanced optimization techniques, based on
constraints and penalties, to plan product flow along the supply chain. The result is
optimal purchasing, production, and distribution decisions; reduced order fulfillment
times and inventory levels; and improved customer service.

Supply Network Planning is used to calculate quantities to be delivered to a location

in order to match customer demand and maintain the desired service level. Supply
Network Planningincludes both heuristics and mathematical optimization methods to
ensure that demand is covered and transportation, production, and warehousing
resources are operating within the specified capacities

Starting from a demand plan, Supply Network Planning determines a permissible

short- to medium-term plan for fulfilling the estimated sales volumes. This plan
covers both the quantities that must be transported between two locations (for
example, distribution center to customer or production plant to distribution center),
and the quantities to be produced and procured. When making a recommendation,
Supply Network Planning compares all logistical activities to the available capacity.

The Deployment function determines how and when inventory should be

deployed to distribution centers, customers, and vendor-managed inventory
accounts. It produces optimized distribution plans based on constraints
(such as transportation capacities) and business rules (such as minimum cost
approach, or replenishment strategies).

The Transport Load Builder (TLB) function maximizes transport capacities

by optimizing load building. In addition, the seamless integration with APO
Demand Planning supports an efficient S&OP process

8.4 Development & Organization

Theory and practice of planned, systematic change in the attitudes, beliefs and values of the
employees through creation and reinforcement of long- term training program. Organization
development is an action oriented. Its started with a careful organization-wide analysis of the

12
current situation and of the future requirement and employs technique. Its objective is to
enable the organization in adopting a better to the fast changing external environment of the
new markets, regulations, and technologies.

Based on our observation in the factory , we found that this company have higher long term
plans, quality culture and quality performance measured and control. This company also have
moderate in providing very substantial training and familiarization, ensuring very high degree
of data integrity and provide very substantial emphasis on process knowledge.

8.5 Quality Strategy

Quality strategy is the ability of a product or service to meet customer needs. There are two
ways quality improves profitability (1) sales gains via improved response, flexible pricing
and improved reputation.(2) reduced costs via increased productivity, lower rework and scrap
costs and lower warranty costs.

Based on our observation in the factory, they have competitive quality strategy that they used
in for fullfit customers demand. This company capably reduce defective rate and tried to
improve vendor and suppliers quality. It also obtained international quality certification by
sent Tuan Haji Abdul Hamid for a two-week course on carpentry in Deithelm at Singapore.

8.6 Flexibility strategy

Flexibility is the ability to respond with little penalty in time, cost, or customer value. This
may mean modular, moveable, or digitally controlled equipment. Flexibility also means the
development of sophisticated electronic equipment.

Based on the observation, this factory also has moderate flexibility to finished customer order
in on time by tried to reduce time to manufacture the product, reduce procurement lead
time, reduce set up time and reduce time to develop new product by systematic arrangement
of production.

8.7 Delivering strategy

Companioes that are good at organizational change management complete twice as many
strategic initiatives that meet their original time, budget and goals.

13
Based on this factory, they higher in increase delivering capacity, increase delivering speed
and improve technical assistance of services to customer thus improve after sales service but
moderate in improve pre- sale services and technical support.

8.8 Cost strategy

Costs can be divided by two categories, tangible and intangible. Tangible costs are those costs
that are readily identifiable and precisely measured. They included utilities, labor, materials,
taxes, depreciation, and other costs that the accounting department and management can
identify. Intangible costs are a category of location costs that cannot be easily quantified, such
as quality of life and government.

Based on this factory, they moderate on cost strategy because the unstable economy in wood
production. They need to overcome inconsistent change of cost that influences the production
itself.

8.9 Financial and Manufacturing Performance

Financial performance is a subjective measure of how well a firm can use assets from its
primary mode of business and generate revenues. This term is also used as a general measure
of a firm's overall financial health over a given period of time, and can be used to compare
similar firms across the same industry or to compare industries or sectors in aggregation.

Based on our observation in the factory , we found that this company have higher in return on
investment and profit. This company also have high in return on asset, return on sales, growth
in sales and also high in product cost per unit.

9.0 Recommendation

14
 Regardless of the size of the business, boosting productivity is essential to enhancing
gross profits and maintaining competitiveness. Productivity on the manufacturing floor
depends on a combination of efficient employees, equipment and processes. Driving
improvement in all of these areas involves examining the current practices in place and
making adjustments to systems, employee training and even the equipment used to generate
parts and components. Before you can adopt any method for productivity improvement,
you'll need to measure your existing output levels, create a baseline and implement solutions
for measuring change.

Examine the Existing Workflow. The first step is all about identifying pain points in
your current workflow. Analyze the people, technology and processes required for
productionas well as the procedures, communication tools and resources available
across the company. Consider using value mapping as an effective solution for
identifying and monitoring projects for process improvement; this strategy enables
managers to pinpoint issues and record how changes impact the overall system.

Update Business Processes. Share current workflow problems with project managers
to develop improvement plans for the manufacturing process. This could mean re-
assigning resources to different areas of the manufacturing floors, managing budgets
or becoming ISO certified. Be sure to systematically evaluate performance and
interpret any appropriate changes

Invest in Continued Employee Education. The manufacturing, machining and

cutting industries are constantly changingtheres always a new technology promising
to make manufacturing floors more efficient than ever. Technological advancements
often change the skills required for certain tasks, and workers will require access to
regular training to keep up with more advanced specialist skills

Have Realistic Expectations. Client expectations, pressures regarding production

and strict deadlines can contribute to unrealistic goals. When workload benchmarks
on the manufacturing floor are unattainable without some compromise to safety or

15
 quality, employees become dissatisfied, preventing the company from reaching labor
goals. To boost worker efficiency, it's important to set realistic, clearly defined
objectives that ensure a combination of punctuality, high-quality output and safe
procedures.

Invest in Maintenance. There's a link between the costs associated with downtime
and the time and budget invested into preventive measures. While new equipment can
boost productivity, it also requires maintenance to ensure that it continues working at
an optimum level. It is important that employees know how to troubleshoot instances
of system downtime, to quickly find root causes of errors. Don't be too quick to blame
the tool for problemsremember to think about the process, the blueprint, the material
and more.

10.0 Conclusion

Perusahaan Tukang Kayu A. Hamid has been able to manage all front of operations
management very effectively. The process technology that company uses ensures a

16
continuous flow of production. The process design and the facility design layout have been
planned and the arrangements have been made to use multi machines for a single product
very effectively. They have been using the standardised ways of operations management.

For capacity management, they use the U-shape of machine arrangement as they want to
make the optimum usage of space. The machine usage ratio for every machine is generally
100% if not more, which speaks highly of the maximum capacity utilisation.

For organisation system and production techniques, the company is using the JIT concept
which means that they are more concerned about maintaining the quality of the products and
do not want to go in after quantity.

The performance and improvement strategy of the company concentrates on the 4 important
Ps of the business. These Ps are philosophy, process, people and problem solving. This
company has made appropriate strategies and designed appropriate processes by involving
the people and empowering them to handle the problems.

Finally the suppliers of the company also form an important part and at them the suppliers
development is done through supplier relationship management. The suppliers are chosen
carefully and they are made to feel a part of the company and make sure that they adhere to
the company quality and time norms.

So, it could be easily concluded that Perusahaan Tukang Kayu A. Hamid could be the best
possible example to understand the importance of the operations management procedures.

11.0 Reference

17
1. Heizer, J. and Render, B. (2014). Operations Management. 11th Ed. New Jersey:
Pearson.
ISBN 13: 978-0-273-78707-5
2. Russell, S.R and Taylor, W. B III (2011). Operations Management. Hoboken: Wiley.
Call Number: TS155 .R87
3. Meredith, J.R and Shafer, M.S (2011). Operations Management. New Jersey : John
Wiley,
NJ. Call Number : TS155 .M474 2011
4. Stevenson, J.W (2012). Operations Management. New York: McGraw-Hill Irwin.
Call Number: TS155 .S73 2012
5. James R. Evans and David A. Collier (2007). Operations Management. Thomson:
Ohio.

12.0 Appendices

18
12.1 Group Photo

19
12.2 Individual Assignment ( Nazirul Izzat )

From this project assignment, I learned more about production and operation
management that can be used in factory. Learn to analyze and improve business processes in
services or in manufacturing by learning how to increase productivity and deliver higher
quality standards.

I also learn about the work processes approach is probably most familiar to factory. It
draws heavily on the principles of the quality management and how to increase the demand

20
and profit. Both focus on the need to redesign the processes to improve quality, cut costs,
reduce cycle times, or otherwise enhance operating performance.

After interview with this company, I get knowledge about operations management
functions differ depending upon the purpose of the organization. In a manufacturing setting
such as a factory, operations management would include designing efficient processes to
produce the product, and timely acquisition of raw materials.

Lastly, I would like to thanks to our beloved lecturer, Dr. Ng Kim Soon for his
guidance and help in performing task for our group project, appreciation also to Perusahaan
Tukang Kayu A.Hamid for the permission to visit their factory.

12.3 Individual Assignment. ( Nur Farahana )

From my observation in this project assignment, I have learned more about the
course that I have applied for this semester which is production and operation management.
This subject make me learned many things due to the group project about factory in Batu
Pahat.

I have learn about factory production and operation when we have interview with
Tuan Haji Abdul Rahman as the Director of Perusahaan Tukang Kayu A.Hamid and we also

21
have opportunity to see the process of making wood and furniture. This knowledge that I
have learned is important for me to know especially to get more information and
understanding for my degree studies.

Next, I also learn about the work processes approach is probably most familiar to factory. It
draws heavily on the principles of the quality management and how to increase the demand
and profit. Both focus on the need to redesign the processes to improve quality, cut costs,
reduce cycle times, or otherwise enhance operating performance. Despite these shared goals,
these two movements are strikingly similar on some points, but diverge on others.

For my example, the case management approach, in which in individuals or small team can
perform a series of tasks, such as the fulfilment of a customer order from beginning to end,
often with the help of information systems that reach throughout the organization. For this
reason, the focuses are less on understanding the details of current work processes and more
on inventing for future based on fundamentally new processes for this factory.

Last but not least, I would like to thanks to our beloved lecturer, Dr. Ng Kim Soon for his
guidance and help in performing task for our group project, appreciation also to Perusahaan
Tukang Kayu A.Hamid for the permission to visit their factory. Besides, I also would like to
thanks to my group projects member that always help me to do this assignment together and
also work hard to produce a good assignment with full of effort and responsibility until the
end.

12.4 Individual Assignment ( Azizah )

From this project assignment, I learned more about production and operation
management that can be used in factory. Learn to analyze and improve business processes in
services or in manufacturing by learning how to increase productivity and deliver higher
quality standards.

22
 I also learn about company production and operation when interview with Tuan Haji
Abdul Rahman and see the process of making wood product. This knowledge is vital to know
especially for more understanding that this course for my degree studies.

After interview with this company, I get knowledge about operations management
functions differ depending upon the purpose of the organization. In a manufacturing setting
such as a factory, operations management would include designing efficient processes to
produce the product, timely acquisition of raw materials, insuring adequate numbers of
properly trained workers, and proper maintenance of equipment.

I would like to thanks our lecturer, Dr. Ng Kim Soon for his guide in performing task
for our project, appreciation to the Perusahaan Tukang Kayu A. Hamid for the permission to
have the factory visit and thanks to our beloved friend that always stick together and also
work hard to produce a good assignment with all effort and responsibility.

12.5 Individual Assignment. ( Nurizzatul Nadirah )

Perusahaan Tukang Kayu A. Hamid is the well known furniture company in Johor Bharu. The
founder of the company is Tuan Haji Abdul Hamid bin Ahmad in the year of 1952. It is one
of the earliest furniture industry in Johor totally owned by Bumiputera. They produce aspects
of categories in their prouction that are basically made out of local woods (Meranti) like

23
home furniture, offices and schools even mimbar. Their furniture is marketed not only in area
around Lembah Klang and its birth state of Johor but there are also available in cities as far
as Brunei Darussalam.

From our visit to Perusahaan Tukang Kayu A.Hamid, we can see how the company itself
manage their manufacture of their product. As we know, the company had produced their
own furniture by using locals wood. They are still in the process of making traditional
furniture. What we can see, the manufacturing process is taking too long to produce a product
in a predetermined time period. After completion of the process, the delivery process take
time because of transportation problems.

For companies to maintain their competitive advantage they must continually look at
ways to keep their manufacturing efficient by eliminating deficiencies, monitoring
productivity and improve operational performance. For me, the company should find the best
way to improve their productivity. Such as, adopting new technology. Robots & humans
working together. As labour costs rise around the world, it is becoming increasingly critical
that manufacturers take steps to improve their output per worker to stay competitive.
Companies are finding that advances in robotics and other manufacturing automation
technologies offer some of the best opportunities to dramatically improve productivity.

Besides that, process optimisation. Processes tend to grow and evolve over time without
any real focus on efficiency or effectiveness. Delays and bottlenecks develop that hamper
workflow, increase processing times and drive up costs. Process optimisation helps
companies to reduce operating costs, improve capacity and improve quality and service
levels. Some of the overall benefits are elimination of non-value-added steps, improved
workflow, increased productivity and reduced operating costs.

Then, stay Organized. The number of lost dollars and wasted man-hours that result from
a lack of organization can be surprising. One surefire way to enhance productivity in any
environment is to ensure theres a well-organized place for everythingfrom materials, to
machine tools and documents. When organizing the company work area, think about the
layout of their machining equipment and tools and whether they currently maximize
efficiency. If not, consider rearranging the manufacturing floor to create a smoother
workflow.

And the last one is, Encourage Collaboration. The manufacturing floor is most
productive when everyone works together towards the same goal with as little waste and
conflict as possible. While focusing on work is important, it's also crucial to ensure that each
staff member feels comfortable as part of a team. The better the members of your team can
work together, the more they will encourage a productive workplace culture.

12.3 Group Peer Evaluation Assignment

24
12.4 Interview Questions

25
12.5 Permission Letter For Factory Visit

26
27