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    TRANSFORMATION . INNOVATION . PARTNERSHIPTRANSFORMATION . INNOVATION . PARTNERSHIP

    By:Burhanuddin Saidin

    DirectorOrganisational Capacity Development Division

    Malaysia Productivity Corporation27 May 2010

    INTI University College,INTI University College, NilaiNilai

    MPC Role in Enhancing SMEMPC Role in Enhancing SMEDevelopment in MalaysiaDevelopment in Malaysia

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    AGENDA:AGENDA:--

    MPC:MPC:-- An OverviewAn Overview

    Malaysias Competitiveness RankingMalaysias Competitiveness Ranking

    About SMEs in MalaysiaAbout SMEs in Malaysia

    Transforming SMEs into Global PlayersTransforming SMEs into Global Players

    The simple act of paying positive attention to people has a

    great deal to do with productivity ~ Thomas J. Peters

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    INTRODUCTIONINTRODUCTION

    The new nameThe new name

    Malaysia ProductivityMalaysia Productivity

    CorporationCorporation

    waswas gazettedgazetted onon21st February 200821st February 2008

    1962 20081991

    Joint projectbetween the UnitedNations and the

    Federal Government

    with lLO as theexecuting agency

    National ProductivityCouncil(Incorporation) ActNo.19 amended as

    the NationalProductivityCorporation

    NationalProductivity

    Centre

    NationalProductivity

    Corporation

    MalaysiaProductivity

    Corporation

    Quality is both thinking why something is done, and why it is done thatway; then thinking differently to improve it~ Mr. Ohno, Chairman of Toyota

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    MPC OFFICES

    MPC HQ, P. Jaya

    MPC SouthernRegion

    Johor Bahru

    COE on Leadership

    MPC Sarawak

    Kuching

    COE on

    Creativity and

    Innovativeness

    MPC Sabah

    Kota

    Kinabalu

    COE on

    Talent

    Management

    MPC Northern

    Region Kepala

    Batas

    COE on

    Teambuilding

    MPC East Coast

    Region Kuantan

    COE on

    Productivity

    Measurement

    MPC State Office

    Kota Bharu

    MPC State Office

    Kuala Terengganu

    No initiatives is possible unless the people in theorganization enact, support and sustain it

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    VISION

    The leadingThe leading organisationorganisation in productivity enhancement for globalin productivity enhancement for globalcompetitiveness and innovationcompetitiveness and innovation

    MISSION

    To deliver high impact services towards achieving performanceTo deliver high impact services towards achieving performance

    excellence through innovation for the betterment of life.excellence through innovation for the betterment of life.

    MPC VISION & MISSION

    Public ServiceDirectorGeneral

    QualityAward 2003

    Efficiency ServiceAward 1999

    United NationsPublic ServiceAward 2004

    Minister ofHumanResourceAward

    2003

    Human ResourceDevelopment

    Council Award 2007

    Change yourapproach untilyougetthe resultyou want

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    STRATEGIC FOCUS

    1960s 1990 2000 2005

    ManagementTraining &AdvisoryServices

    Research &

    SystemsDevelopment

    Year

    1995

    Benchmarking

    &Best Practices

    2010

    Productivity& EfficiencyEnhancement

    Competitiveness& Innovation

    Excusesare only made for failure

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    In lifeIn life the only constant is ChangeonlyconstantisChange

    P&Q RESEARCH

    BENCHMARKING &

    BEST PRACTICES

    P&Q PROMOTION

    TRAINING

    SYSTEMS DEVELOPMENT

    PRODUCTIVITY,

    COMPETITIVENESS

    & INNOVATION

    Private Sector:

    SMEs

    Manufacturing

    Services

    Public Sector:

    Local Authorities

    Land and District

    Offices State Governments

    Schools and HigherInstitutions

    CORE

    ACTIVITIES

    STRATEGIC

    FOCUS

    TARGET

    GROUPS

    CORE ACTIVITIESCORE ACTIVITIES

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    PUBLICPUBLIC PRIVATEPRIVATE PARTNERSHIPPARTNERSHIP

    PRIVATE SECTOR

    PUBLIC SECTOR

    INTERNATIONAL

    TRADE & NDUSTRY

    ASSOCIATIONS

    SMEs

    EDUCATION

    LOCAL

    AUTHORITIES/DISTRICT & LANDOFFICE

    STATE

    GOVERNMENTS

    IMD

    APO

    FRAUNHOFER

    WEF

    IPA

    JICA

    MANUFACTURING

    SERVICES

    MSM

    EfficiencyService Award

    1999

    Note: MSM:- Maastricht School of Management

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    CONSULTATIVE PANELS

    ProductivityProductivityMeasurementMeasurement

    LogisticsLogistics

    ICTICT

    AgricultureAgriculture

    HumanHuman

    ResourcesResources

    DevelopmentDevelopmentFinancialFinancial

    InstitutionsInstitutionsManufacturingManufacturing

    EnergyEnergy& Utilities& Utilities

    HospitalityHospitality

    HealthcareHealthcare

    InnovationInnovation& Creativity& Creativity

    ConstructionConstruction

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    COMPETITIVENESSCOMPETITIVENESS

    The degree to which Nation

    can produce goods and services

    which meet the test of international markets

    while the people can earn a standard of living

    that is both rising and sustainable

    over the long-run

    It is not the quantitybut the qualityof knowledge which

    determines the mind's dignity

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    COMPETITIVENESS ANDECONOMIC DEVELOPMENT

    Global Trade andInvestment

    Socio-EconomicPolicies

    DevelopedEconomies

    SustainableDevelopment

    ICT

    Economy

    Competitiveness

    Productivity

    Itisnotthebigthatiseatingthesmall, itisthefast

    thatiseatingtheslow

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    COMPETITIVENESS MODEL

    ECONOMIC PERFORMANCE

    GOVERNMENT EFFICIENCY

    COMPETITIVENESS

    OF NATIONS

    SUSTAINABILITY

    ADDED VALUE CREATION

    COMPETITIVENESS OF

    COMPANIES

    BUSINESS EFFICIENCY

    INFRASTRUCTURE

    Source: IMD WorldCompetitiveness

    Yearbook

    Researchyouridea. Seeifthere'sademand. Alotof peoplehavegreat

    ideas, buttheydon'tknowifthere'saneed forit. Youalsohavetoresearchyour competition ~ MagicJohnson

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    MALAYSIAS COMPETITIVENESSTRENDS

    1

    1

    11

    1

    1

    Thequalityofanorganizationcanneverexceedthequality

    ofthemindsthatmakeitup

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    Country 2010 2009 Country 2008 2009

    Singapore 1 3 Qatar 15 14

    Hong Kong 2 2 Germany 16 13

    USA 3 1 Israel 17 24

    Switzerland 4 4 China Mainland 18 20

    Australia 5 7 Finland 19 9

    Sweden 6 6 New Zealand 20 15

    Canada 7 8 Ireland 21 19

    Taiwan 8 23 United Kingdom 22 21

    Norway

    Malaysia

    9 11 Korea 23 27

    Malaysia 10 18 France 24 28

    Luxembourg 11 12 Belgium 25 22

    Netherlands 12 10 Thailand 26 26

    Denmark 13 5 Japan 27 17

    Austria 14 16 Chile 28 25

    MALAYSIAS COMPETITIVENESS

    Overall Performance Ranking 2010 (58 economies)

    Productivity is neveran accident. It is always the result of a commitment to

    excellence, intelligent planning, and focused effort~ Paul J. Meyer

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    MALAYSIAS COMPETITIVENESS RANKING

    Competitiveness Factor2010

    (n=58)2009

    (n=57)2008

    (n=55)

    Overall 10 18 19

    Economic Performance 8 12 10

    Government Efficiency 19 21 19

    Business Efficiency 14 15 19

    Infrastructure 25 26 27

    Source: IMD WorldCompetitiveness Variousissues

    Realexcellencedoesnotcomecheaply. A certainpricemustbepaidin

    termsofpractice, patience, andpersistencenaturalabilitynotwithstanding~ StephenCovey

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    DEFINITION OF SMEs Micro-enterprise Small enterprise Medium enterprise

    Manufacturing,

    Manufacturing-

    Related Services

    and Agro-based

    industries

    Sales turnover ofless than

    RM250,000 OR

    full time

    employees less

    than 5

    Sales turnoverbetween

    RM250,000 and

    less than RM10

    million OR full

    time employees

    between 5 and50

    Sales turnoverbetween RM10

    million and RM25

    million OR full time

    employees

    between 51 and

    150

    Services, Primary

    Agriculture and

    Information &

    Communication

    Technology (ICT)

    Sales turnover of

    less than

    RM200,000 OR

    full time

    employees lessthan 5

    Sales turnover

    between

    RM200,000 and

    less than RM1

    million OR fulltime employees

    between 5 and

    19

    Sales turnover

    between RM1

    million and RM5

    million OR full time

    employeesbetween 20 and 50

    Ifyou knowyourstrengthitnever becomesaweakness. Ifthemarket

    knowsyourstrengththenitbecomesaweakness~ ShailendraSingh

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    UNIQUE FEATURES OF SMEs

    have an owner/manager with few generic businessskills or a particular technical expertise

    have personal assets committed as security for the

    business

    operate flexibly rather than on a strict observance ofregulations

    have a vision and outlook that is bounded by theskills and experience of the founder/owner and tight

    resource constraints operate in provincial areas, be a key part of the

    social fabric of the community

    Anorganization'sabilitytolearn, andtranslatethatlearninginto

    actionrapidly, istheultimatecompetitiveadvantage~ Jack Welch

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    IMPORTANCE OF SMEs

    The significance of SMEs is associated primarily

    with their role in stimulating economic growth.

    Other significant contributions of SMEs:

    Because they are labour-intensive, SMEs createemployment opportunities.

    SMEs enhance regional development and createmore equitable income distribution due to their

    location and ongoing expansion throughout thebroader community.

    Excellenceistheunlimitedabilitytoimprovethequalityof

    whatyouhavetooffer ~ Rick Pitino

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    SMEs play a vital complementary role in relation tolarger firms--as suppliers and distributors.

    SMEs serve as a training ground for developing the

    skills of workers and entrepreneurs.

    The presence of SMEs curbs the monopoly power oflarger firms and provides the structure of theeconomy with greater flexibility.

    Thus, a country can reduce its vulnerability tofinancial crises by strengthening its SMEs.

    IMPORTANCE OF SMEs

    Tocreatesomethingexceptional,yourmindsetmustbe

    relentlesslyfocusedonthesmallestdetail~ GiorgioArmani

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    SOME FACTS & FIGURES

    A total of 99.2% (552,849 companies in operation)of all manufacturing and service businesses areSMEs and the majority of SMEs (86.6%) are in theservices sector.

    Employment- SMEs accounted for 56.4% of the totalworkforce.

    GDP-SMEs contributed 33% of the total output.

    Total Export-SMEs contributed 19%.(Ref: SMIDEC 2009)

    ThebestwaytohaveagoodideaistohavealotofideasThebestwaytohaveagoodideaistohavealotofideas~~ LinusLinus Pauling, 1958Pauling, 1958

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    Contribution of SMEs to Gross Domestic

    Product, Employment, and Export by Sector

    in 2005

    22

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    COMPOSITION OF SMEs IN MALAYSIA

    Based on Census on Establishments and Enterprise 2005, out of99.2% of SMEs, the services sector comprise 474,706 (86.6 percent), followed by 39,376 (7.2 per cent) in the manufacturingsector and 34,225 (6.2%) in the agriculture sector.

    6.2%7.2%

    86.6%

    Service

    Manufacturing

    Agriculture

    Itisbynomeanscertain, thatthingswillbebetter whentheychange, butwhen

    theyshould becomebetter, theyhavetochange ~ GeorgeC. Lichtenberg

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    24

    Contribution of SMEs in Services Sector, 2005

    *Health include hospital,

    medical, dental and veterinaryservices, herbalist, homeopathy

    and foot reflexology

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    25

    Contribution of SMEs in Manufacturing Sector, 2005

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    Contribution of SMEs in Agriculture Sector, 2005

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    ChallengingIssues

    f. Government

    Policies/

    Incentive

    e. Infrastructure

    d. Financialc. Human

    Resource

    b. Technology

    a. Market

    SMEsSMEs::-- CHALLENGING ISSUESCHALLENGING ISSUES

    NotFinance. NotStrategy. Nottechnology. Itisteamworkthatremainsthe

    ultimatecompetitiveadvantage, bothbecauseitissopowerfulandsorare

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    TRANSFORMING SMEs INTOTRANSFORMING SMEs INTO

    GLOBAL PLAYERSGLOBAL PLAYERS

    United NationsPublic Service

    Award 2004

    Anemployeeisourstrategic- partner, achange- agent, anorganisation-

    builder, aprocess- facilitatorandaboveall, achampion-of- excellence.

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    Vertically integrated

    Local, regional, national

    Rigidly committed Functional

    Machine based

    Hierarchical

    Efficient, Stable

    Cost Oriented

    Shareholderfocused

    Production driven

    Production Quality Mindset

    Price focused Goal

    The Old SMEs

    Networked, independent

    Global

    Flexible, learning Cross functional

    Information based

    Flat, empowered

    Innovative Enterprise

    Speed Oriented

    Stakeholderfocused

    Customer driven

    Total Quality Mindset

    Value focused Vision

    The Emerging SMEs

    HOW?

    THE EMERGING SMEs

    Createanurgencytochangebylisteningtocustomersandcommunicatingtheir

    concernstoemployees. Customer-drivenchangemotivatesemployeestoengageincontinuousimprovement

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    SMEs AS GLOBAL PLAYERS

    Certification Standards Procedures

    Measurement Quality ManagementSystem

    SYSTEMS

    LeadershipTalent Development Centres ofExcellence

    Vendor Programme BEST Value Creation

    HUMAN CAPITAL

    PRODUCTIVITY EFFICIENCY COMPETITIVENESS

    Management Innovation Best Practices Service Innovation

    Information ManagementSystem & ICT Applications

    Process Innovation

    INNOVATION

    Habitbreaking, theprerequisiteforchangeand renewal, needmorethanasimple

    decision. Ittakesmotivation, desireand will. Crisiscanprovidethatandalltoooftenisthesoleforceforchange ~ RobertH. Waterman

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    31

    PRODUCTIVITY IMPROVEMENTINITIATIVES FOR SMEs

    ProgrammeProgramme

    Capacity DevelopmentCapacity Development

    Quality Systems Development and CertificationQuality Systems Development and Certification

    IndustryE

    xcellenceA

    wardIndustryE

    xcellenceA

    ward

    Development ofExcellent Companies: Model CompanyDevelopment ofExcellent Companies: Model Company

    Best Practices ManagementBest Practices Management

    Performance / Productivity MeasurementPerformance / Productivity Measurement

    Information Management System & ICT ApplicationsInformation Management System & ICT Applications

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    PEOPLE EXCELLENCEPOLICY EXCELLENCE

    PROCESS EXCELLENCEPRODUCT EXCELLENCEPRACTICE EXCELLENCE

    PERFORMANCE EXCELLENCE

    ORGANISATIONAL EXCELLENCE (6Ps)

    ProsesProses

    Progressisimpossiblewithoutchange, andthereforethosewhocannot

    changetheirmindscannotchangeanything~ GeorgeBernard Shaw

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    MPC SMEs DEVELOPMENT VALUE CHAIN

    SMEs

    Customers

    (large local and

    foreign

    companies

    MPC

    Partners

    New product development in-line

    with needs of customers

    Technology and Information Supportfor Innovation

    SMEs access information through connectionchannels provided by MPC

    Multiple programmes approach and sharinginformation system

    Database of best practices that featuresdynamic replenishment, direct fulfillment andpractical applications.

    The flows of information

    and assistance betweenMPC to SMEs and MPC to

    partners need to be further

    strengthened

    Nobodytalksofentrepreneurshipassurvival, butthat's

    exactlywhatitis. ~ AnitaRoddick

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    FOCUSED AREASy Entrepreneurship development programme

    y Training programme in SME entrepreneurship development.

    y Enhancing SME-sector skills and knowledge inmanagement, quality enhancement and deliveryimprovements initiatives.

    y Fostering SME capabilities for inter-firm networkingand linkages

    y Tracking and benchmarking SME capabilities,dynamism and competitiveness.

    yEnhancing SME Marketing Capabilities

    y Enhancing SME capabilities in and reliance on ICTsand e-commerce

    Persistenceisthetwinsisterofexcellence. Oneisamatter

    of quality;theother, amatteroftime

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    MPC - SME DEVELOPMENT PARTNERS

    MarketingInstitutions

    Trade InstitutesIndustrialAssociations

    Govn. Departments Chambers in the region

    Financial SupportInstitutions

    BanksSMIDECDevelopment Plan

    Partners

    Consultants

    Ex MPC

    Industries Player

    MPC Programmes

    Business

    Model Templates

    Best Practices

    Data &

    Information

    SMEs

    Competitiveness

    SME as a Global

    Player

    SMEs

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    CAPACITY DEVELOPMENTCAPACITY DEVELOPMENT

    TRANSFORMATIONAL LEADERSHIP

    INNOVATION & CREATIVITY

    QUALITY ENHANCING INNOVATION

    SYSTEM

    PROCESS EFFICIENCY

    INNOVATIVE CUSTOMER RELATIONSHIP

    INTERNATIONAL PROGRAMME

    PERFORMANCE EXCELLENCE

    KNOWLEDGEABLE Know what to do,Know what to do,

    SKILLFULL Know how to do it,Know how to do it,

    VIRTUE Do it correctly.Do it correctly.

    Whatweseedependsmainlyonwhatwelook for~ Sir

    JohnLubbock

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    DEVELOPING K-WORKFORCE

    TEAMTEAMBUILDINGBUILDING

    WORKSHOPWORKSHOP

    FORUMFORUM

    TRAININGTRAININGMEETINGMEETING

    SEMINARSEMINARCONVENTIONCONVENTION FOCUS GROUPFOCUS GROUP

    The quality of an organization can neverexceed the quality of theminds that make it up

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    P&Q RESEARCH AND SYSTEMS DEVELOPMENTP&Q RESEARCH AND SYSTEMS DEVELOPMENT

    ISO 9001:2008

    PENGURUSAN KUALITI MENYELURUH (TQM)

    INNOVATIVE & CREATIVE CIRCLE

    QUALITY ENVIRONMENT (5S)

    PRODUCTIVITY MEASURENT

    BENCHMARKING

    BALANCED SCORECARD

    T

    OTA

    L PRODU

    CT

    IVE MA

    INT

    ENAN

    CE

    PRODUCTIVITY-LINKED WAGE SYSTEM

    CUSTOMER SATISFACTION MEASUREMENT

    EMPLOYEE SATISFACTION MEASUREMENT

    IF YOU CANNOT

    MEASURE, YOU

    CANNOT MANAGE

    Qualitymeansdoingitrightwhennooneislooking

    ~ HenryFord

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    INDUSTRY EXCELLENCE AWARD &

    CERTIFICATION PROGRAMMES

    Secretariat for:Secretariat for:

    Prime Minister Quality AwardPrime Minister Quality Award(Private Sector)(Private Sector)

    Quality Management ExcellenceQuality Management ExcellenceAward (Private Sector)Award (Private Sector)

    Productivity Award since 1999Productivity Award since 1999

    Assessment is based on six productivityAssessment is based on six productivityindicators and productivity improvementindicators and productivity improvementinitiativesinitiatives

    Assessors for OtherAwardsAssessors for OtherAwards National Award for ManagementNational Award for Management

    Accounting (NAfMA)Accounting (NAfMA) Product Excellence AwardProduct Excellence Award States Quality AwardStates Quality Award

    DPMM AwardDPMM Award Petronas HSEAwardPetronas HSEAward Academic Award MOHEAcademic Award MOHE Malaysia Retailers AssociationMalaysia Retailers Association

    (MRA) Award(MRA) Award

    CertificationCertification

    Quality Environment (5S)Quality Environment (5S)

    Training ofTrainersTraining ofTrainers

    TeambuildingTeambuilding

    Innovative and Creative CirclesInnovative and Creative Circles((ICCsICCs))

    Total Productive Maintenance (TPM)Total Productive Maintenance (TPM)

    Inthesearchfor qualitytheresnosuchthingasgoodenough. Theres

    neverafinishline. Thereis, however, astartingline~ K. Theodor Krantz,VELCRO

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    y Model1: TQM Model5: Process ImprovementSix Sigma, BPR,ICCy Model2: QE (5S) Model6: Performance MeasurementSystem- BSC, KPI

    y Model3: TPM Model7: ICT & E-Commerce

    y Model4: Lean ManagementSystem Model8: MarketingExcellence

    Model 1

    Model 2

    Model 3r

    Model SME

    MPC

    MODEL COMPANY - MULTIPLE PROGRAMMES

    Benchmark- Templates

    Benchmark- Database

    Excellence is not a skill. It is an attitude~ Ralph Marston

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    BEST PRACTICES MANAGEMENTBEST PRACTICES MANAGEMENT

    MALAYSIABENCHMARKING INDEX (MBI)

    COMMUNITIES OF PRACTICE (CoPs)

    BENCHMARKING ONLINE NETWORKING

    DATA

    BA

    SE (BON

    D) On-Line e-Benchmark System

    BPNet Knowledge Management

    BP Public Sector

    HR Suite

    BP PUBLICATION

    BENCHMARKING PROJECT

    BP VISIT/MISSION

    Don't strive to be perfect. Strive forexcellence

    ~ Victoria Principle

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    Promoting BestPractices through Benchmarking

    Programmes and Activities

    BONDBOND e-benchmarke-benchmark BP NetBP Net HR SuiteHR Suite

    Benchmarking On-line Networking Database (BOND)

    E-Benchmark System provides real time competitivescore and ranking on key performance measures

    BP Net is a communication tools which allows CoPmembers to capture, disseminate and share

    knowledge and best practices. HR Suite addresses the Best Practices ofHuman

    Resource Management and Development

    Received United Nation Public Service Award 2004(Innovation)

    United NationPublicService

    Award 2004

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    Promoting BestPractices through Benchmarking

    Programmes and Activities

    Malaysia Benchmarking Index (MBI)

    Provides a worldwide perspective onbenchmarks

    Over 100,000 company datasets in thedatabase

    Enable local enterprises to build onexisting strengths as well as working

    to develop areas that requireimprovement.

    Excellenceisdoingordinarythingsextraordinarilywell~

    JohnW. Gardner

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    AGENDA ON INNOVATION ANDCREATIVITY

    ProgrammeProgramme on QCC was first launched in 1982 byon QCC was first launched in 1982 by

    Y.A.B. Prime MinisterY.A.B. Prime Minister

    Establishment ofEstablishment of CoECoE on Creativity andon Creativity and

    InnovativenessInnovativeness

    ICCICC ProgrammesProgrammes for Public and Private Sectorsfor Public and Private Sectors

    MPC internal ICC comprising 40 circlesMPC internal ICC comprising 40 circles

    Innovation Jam 2008 (generated 993 ideas)Innovation Jam 2008 (generated 993 ideas)

    Innovation Jam 2009 (held on 11 July 2009)Innovation Jam 2009 (held on 11 July 2009)

    Nurturing innovative and creative circles (Nurturing innovative and creative circles (ICCsICCs) in) in

    creating value forcreating value for organisationorganisation

    Paintamasterpiecedaily. Alwaysautographyour work

    withexcellence~ GregHickman

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    2,078 ICC projects2,078 ICC projects

    19,747 participants19,747 participants

    1,205 organisations1,205 organisations

    RM 738.2 million savingsRM 738.2 million savings

    Recognitions and awardsRecognitions and awards

    for successful ICC projectsfor successful ICC projects

    Type ofAchievementTotal

    InnovativeInnovativebreakthroughbreakthrough

    218218

    Improvement inImprovement inproduct andproduct andservicesservices

    198198

    Reducing downtimeReducing downtime 7777

    Enhancing jobEnhancing jobeffectivenesseffectiveness

    176176

    ICC CONVENTIONS 2004 -2008

    Innovationdistinguishesbetweenaleaderandafollower

    ~ SteveJobs

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    SHARING THE PRODUCTIVITYSHARING THE PRODUCTIVITY

    CAKECAKE

    Anounceofperformanceisworthpoundsofpromises

    ~ MaeWest

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    NATIONAL AGENDA ONNATIONAL AGENDA ON

    PRODUCTIVITYPRODUCTIVITY--LINKED WAGE SYSTEMLINKED WAGE SYSTEM

    (PLWS)(PLWS) Ninth Malaysia PlanNinth Malaysia Plan

    .to enhance competitiveness, resilience and.to enhance competitiveness, resilience and labourlabour

    productivity,f

    irms will also be encouraged to implement the PLWSproductivity,f

    irms will also be encouraged to implement the PLWS Third Industrial Master PlanThird Industrial Master Plan

    To enhance competitiveness, the wider adoption ofremunerationTo enhance competitiveness, the wider adoption ofremuneration

    systems, based on productivity and performance (e.g. the PLWS)systems, based on productivity and performance (e.g. the PLWS)

    needs to be encouraged at the firm levelneeds to be encouraged at the firm level

    Anynecessaryworkthatpaysanhonestwage carriesits

    ownhonorand dignity ~ W. KellyGriffith

    PRODUCTIVITYPRODUCTIVITY LINKEDLINKED

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    PRODUCTIVITYPRODUCTIVITY--LINKEDLINKED

    WAGE SYSTEM (PLWS)WAGE SYSTEM (PLWS)

    Establishes a closer link between wages and productivity so as toEstablishes a closer link between wages and productivity so as toenhance competitiveness.enhance competitiveness.

    Ensures that wage increases commensurate with higher productivityEnsures that wage increases commensurate with higher productivitygrowth.growth.

    Companies with PLWS ElementsCompanies with PLWS Elementsin Collective Agreementsin Collective Agreements

    2001 ~ 20042001 ~ 2004 2005 ~ 20082005 ~ 2008

    691691 749749

    Impact of PLWS ImplementationImpact of PLWS Implementation 2006 (%)2006 (%) 2008 (%)2008 (%)

    ProductivityProductivity 2.642.64 5.175.17

    Staff TurnoverStaff Turnover 5.215.21 2.132.13AbsenteeismAbsenteeism 8.808.80 4.174.17

    Rejects and ReworksRejects and Reworks 5.335.33 2.852.85

    Givethelaborerhiswagebeforehisperspirationbedry~

    ProphetMuhammads.a.w.

    COMMUNICATING EXCELLENCE

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    COMMUNICATING EXCELLENCE

    THROUGH PUBLICATIONS

    Value-added information onProductivity, Quality,

    Competitiveness, Best Practicesand SMEs

    COMMUNICATING EXCELLENCE THROUGH WEB

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    COMMUNICATING EXCELLENCE THROUGH WEB

    MPC WEBSITEMPC WEBSITE

    www.mpc.gov.mywww.mpc.gov.my

    BENCHMARKING ONLINEBENCHMARKING ONLINE

    NETWORKING DATABASE (BOND)NETWORKING DATABASE (BOND)

    MANUFACTURING PRODUCTIVITYMANUFACTURING PRODUCTIVITY

    INDICATORINDICATOR

    TRAINING AND E-LEARNING

    MANAGEMENT SYSTEM

    EE--LEARNING MODULESLEARNING MODULES

    Along withsuccesscomesareputationfor wisdom

    ~ Euripides

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    IMPACT STUDY 2008

    90% SMEs surveyed recorded between 2%-10%

    growth in productivity, sales and profitability;

    86% SMEs achieved a reduction of 5%-10% in

    accident rate; and

    40% SMEs reported between 7%- 10% reduction

    in customer complaints, absenteeism, rework and

    reject rates.

    90% SMEs surveyed recorded between 2%-10%

    growth in productivity, sales and profitability;

    86% SMEs achieved a reduction of 5%-10% in

    accident rate; and

    40% SMEs reported between 7%- 10% reduction

    in customer complaints, absenteeism, rework and

    reject rates.

    Successdoesnotconsistinnevermakingblunders, butin

    nevermakingthesameoneasecondtime ~ JoshBillings

    CURRENT CALLS FOR INNOVATION

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    Formulate newFormulate new economiceconomicmodelmodel based onbased on

    innovation,innovation, creativitycreativity andandhigh valuehigh value

    (Invest Malaysia, June 30, 2009)(Invest Malaysia, June 30, 2009)

    CURRENT CALLS FOR INNOVATION

    Innovationisthecentralissueineconomicprosperity

    ~ MichaelPorter

    CURRENT CALLS FOR INNOVATION

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    If we canIf we can tie productivity withtie productivity withinnovation and creativityinnovation and creativity,, thethe

    improvements in problem solvingimprovements in problem solvingwill seewill see a quantum leapa quantum leap instead ofinstead of

    just being incrementaljust being incremental

    (Y.A.B.(Y.A.B. DatoDato' Sri' Sri MohdMohd NajibNajib TunTun AbdulAbdul RazakRazak,,

    May 5, 2009)May 5, 2009)

    CURRENT CALLS FOR INNOVATION

    Innovationistheabilitytoseechangeasanopportunity-

    notathreat

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    STRATEGIES TOSTRATEGIES TO

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    STRATEGIES TOSTRATEGIES TOTRANSFORMATIONTRANSFORMATION

    Transformationinvisionandconsciousnesswill

    automaticallycreatefavorablecircumstances~Innerspace

    STRATEGIES TO INNOVATIONSTRATEGIES TO INNOVATION

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    STRATEGIES TO INNOVATIONSTRATEGIES TO INNOVATION

    "Theessentialpartofcreativityisnotbeingafraidtofail~ EdwinH. Land

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    INNOVATION

    PROGRAMMES

    InnovationSystem

    DevelopmentPortal Service

    QualityMeasurement

    alent

    Development

    CompetencyBuilding

    ServicesSector

    BusinessSolutionsLinkages

    BestPractices

    eferralCentre

    LeanManagement

    & OperationalEfficiency

    ElectronicSystem

    SolutionsServices

    InnovationA

    warenessProgrammes

    STRATEGIES TO PARTNERSHIPSTRATEGIES TO PARTNERSHIP

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    STRATEGIES TO PARTNERSHIPSTRATEGIES TO PARTNERSHIP

    Leverage on partners and network :

    Intensify publicIntensify public--private partnerships (PPP)private partnerships (PPP)programmesprogrammes for larger outreach and higherfor larger outreach and higher

    impactimpact

    Strengthen selected high impactStrengthen selected high impactcollaborativecollaborative programmesprogrammes to enhanceto enhance

    visibilityvisibility

    utsource conventional trainingutsource conventional trainingprogrammesprogrammes

    Itisnotonlyoneperson'swork, it'sreallyapartnershipand

    collaborationduringalltheseyears~ Christo

    IMPACTIMPACT

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    IMPACTIMPACT Breakthrough in costs efficiency and operationalBreakthrough in costs efficiency and operational

    efficiencyefficiency

    Quantum leap reduction in rework and reject ratesQuantum leap reduction in rework and reject rates

    Enhanced products and services performanceEnhanced products and services performance

    Accelerated growth in productivity and profitabilityAccelerated growth in productivity and profitability

    Strengthen the country competitivenessStrengthen the country competitiveness

    Increased number oforganization with world classIncreased number oforganization with world class

    practicespractices

    Foster a society with strong innovation capabilitiesFoster a society with strong innovation capabilities

    Physicalstrengthcanneverpermanentlywithstand

    the impact ofspiritualforce~ FranklinD. Roosevelt

    HOW?HOW?

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    HOW?HOW?

    Reviewing existingReviewing existing programmesprogrammes and activitiesand activities Applying methods such as the use ofcase studies,Applying methods such as the use ofcase studies,

    Leveraging on publicLeveraging on public--private partnershipprivate partnership

    Expanding strategic alliances with internationalExpanding strategic alliances with internationalorganizations/ institutionsorganizations/ institutions

    Intensifying dissemination ofknowledgeIntensifying dissemination ofknowledge

    Enhancing the use of ICT and eEnhancing the use of ICT and e--learninglearning

    Creating bigger pool ofmodel companies as impetusCreating bigger pool ofmodel companies as impetusfor growthfor growth

    Hewhoknowsbestknowshowlittleheknows

    ~ ThomasJefferson

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    Raising perception level through changesin mindset and attitude;

    Mitigating global crisis through non-fiscalmeasures;

    Creating a platform for sharing of bestpractices through the MalaysiaBenchmarking Index (MBI) repository;

    Instilling culture of excellence throughvalue creation and talent for creativity andinnovation.

    CHALLENGES

    Acceptthechallengessothatyoumayfeeltheexhilaration

    ofvictory~ GeneralGeorgeS. Patton

    Values for Success Challenges

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    Values for Success

    1. Teamwork

    2. Discipline

    3. Diligent

    4. Respectfor Time

    5. HonouringOnes Word

    6. Dedicationto Work

    7. Eff iciencyin

    Implementation of Tasks

    8. Placementof Larger

    Community Above Self

    Challenges

    One Malaysia

    People First

    Performance Now

    -YAB Dato' SriMohd. Najib Tun AbdulRazak, 24 March 2009 & 3 April2009

    Successisthegood fortunethatcomesfromaspiration,

    desperation, perspirationandinspiration~ EvanEsar

    THE 7Rs SUCCESS FACTORS

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    THE 7Rs SUCCESS FACTORS

    Review & Rationalise

    Realign & Reconcile

    Rules and reforms

    Renovate and reengineer

    Retrain and regulate

    Replicate and record

    Reward and recognition

    Thesecretofsuccessistoknowsomethingnobodyelse

    knows~ AristotleOnassis

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    mulumire

    ksznm dzikuj

    webale nnyo

    choucran

    hvala

    blagodarya

    blagadariu

    merces

    xie xie hvala ti tak

    Bedankt!por diras

    kiitos

    tante grazie

    arigatou

    go-MOB-dah

    grazzi

    danubat

    Tusen takk mamnun

    dzienkuje

    muito

    obrigado multimesc asante sanatesekkur

    ederim

    www.mpc.gov.mywww.mpc.gov.my

    Asknotwhatyourcountrycandoforyou, ask whatyoucan

    doforyourcountry JohnF. Kennedy

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    ASIAN PRODUCTIVITY

    ORGANIZATION

    ASIAN PRODUCTIVITY

    ORGANIZATION

    INDUSTRY /

    TRADEASSOCIATIONS

    PUBLICAGENCIES

    Global Benchmarking

    Network

    Global Benchmarking

    Network

    World Economic ForumWorld Economic Forum

    WorldAssociation of Industrial

    andTechnological Research

    Organisations

    WorldAssociation of Industrial

    andTechnological Research

    Organisations

    Institute forManagement

    Development

    Institute forManagement

    Development

    OURPARTNERS

    OURPARTNERS

    Japan International

    Cooperation Agency

    Japan International

    Cooperation Agency