1. The Evolution of PROTON 2. PROTON Challenges 3. Economic

Memperkasa Ekonomi Ummah Melalui Pemantapan Jaringan Tempatan dan
Penerokaan Berkesan Dalam Pasaran Global: Persiapan Mendepani Cabaran Baru
Ekonomi Dunia”
Oleh
DATO’ HAJI SYED ZAINAL ABIDIN SYED MOHAMED TAHIR
Managing Director
PROTON Holdings Berhad
1.
2.
3.
4.
The Evolution of PROTON
PROTON Challenges
Economic Value Chain
Conclusion
1. The Evolution of PROTON
PROTON spearheads Malaysia’s Automotive Project Three primary national policy
objectives
To spearhead the
automotive industrialization
process and manufacturing
industries
To acquire and upgrade
technology and industrial
skills within the
automotive manufacturing
industry
1
To strengthen the
international
competitiveness of
Malaysia’s industrial
capability
Transforming PROTON
Proton evolved from Assembly to Design & Manufacturing in 1996, which involves
R&D, Product Design and Engine & Tooling Manufacturing
IP
High Technology
High Knowledge Application
Value Chain
Progressive
Own
Product
Design
Regressive
High
Labor
CKD
RND
Assemble
Localise
50%
Engine
Manufacture
Investment levels
15 years
Milestones
Snapshot of PROTON’s Journey
1983 Permodalan Otomobil
Nasional (PROTON) incorporated
1994
PERDANA
2008
2001
1997
SATRIA GTi and
PERDANA V6
1980
First unveiling of
CamPro at
Lotus, England
1990
1986 Proton
Saga is first exported to
UK and proceeds to win
awards at British
International Motor Show
1985 Official
launch of National
car , PROTON
SAGA by Tun Dr.
Mahathir
NEW SAGA
2003
2006
PROTON
Tanjung Malim
SATRIA NEO
2000
1995
SATRIA
1993 WIRA
2005
2000
1996
SAVVY
WAJA
PERSONA
- PUTRA
1,000,000th
production
2007
proton car
2004
GEN.2
- PROTON acquires
Lotus Group
2
2002
ARENA
PROTON Investments
Contributing to domestic investment: Capital investments in Malaysia to date exceeds
RM 8 billion
Building
Shah Alam Plant, Medium Volume Factory,
Casting Plant, ETM Factory, R&D Centre,
Tanjung Malim Plant
Equipment
Automated assembly line, cathodic electrodeposition facilities, iron casting &
machining, ETM assembly
Research and Development
Styling studio, CAD/CAM facilities,
component & materials test labs, climatic
chamber, engine development facilities, test
track, noise lab
3
PROTON Organization
Group Manpower Status
Company
Manpower Status
Perusahaan Otomobil Nasional Sdn Bhd
5,458
Proton Edar Sdn Bhd
1,974
PROTON Tanjung Malim Sdn Bhd
2,832
Miyazu (Malaysia) Sdn Bhd
312
Lotus Group International Ltd
Overseas Subsidiaries*
1,240
187
TOTAL
12,003
* Overseas Subsidiaries include Proton Edar Indonesia, Proton Cars Australia,
Proton Cars UK, and Proton Singapore
* Latest as October 2008.
4
2.
PROTON Challenges
PROTON is prepared to face the anticipated external challenges impacting the
global auto industry
Global OEMs suffering from
declining financial results
“Hyundai slashes
production”
“Ssangyong files
bankruptcy”
“Toyota Motor warned it
would suffer its first loss
since it began reporting
financial results 68 years
ago”
“Honda shifted into crisis
mode, slashing sales and
profit forecasts, delaying
plant openings, cutting
executive pay and axing the
NSX sports car program to
rein in costs”
Key challenges facing the
industry …
PROTON’s way of
withstanding the challenges
Changing structure of
demand to smaller and more
fuel efficient vehicles
Human Capital Development
Development and leadership
training programs to boost
competencies
Slowing growth of demand
due to diminishing consumer
confidence and stringent
financing
Product Innovation and
Improvement to gain the
competitive edge
Sustaining margins at times
of increasing costs and
competitive pressures
Global Expansion Program
to tap the world market with
value for money products
Volatile currency rates
adversely impact operations
and margins
“Renault freezes plans for
India plant”
1. The Evolution of PROTON
2. PROTON Challenges
 Human Capital Development
 Product Innovation and Service Improvements
 Global Expansion Program
3. Economic Value Chain
4. Conclusion
5
2.1
Human Capital Development
People Development: The right talent should have the right skill sets
Functional
Functional
Knowledge
Knowledge
Continually
build
understanding
of PROTON’s
products,
business and
industry
Business
Business
Knowledge
Knowledge
Cross-cultural
& global
perspective
Intellectual, technical
& business expertise
Values
Values
Caring,
honesty,
accountability
INDIVIDUAL
INDIVIDUAL
TALENT
TALENT
Global
Global
Knowledge
Knowledge
Performance
Performance
Consistently deliver
commitments
Talent Management System at PROTON
Having the right talents at the right places and at the right time.
The system will enable the executives to realize their full potential and talents.
It is tailored to individual role profile and it is divided into 2 programs, which are Career
Accelerators and Functional Breadth
Career
Accelerator
Functional
Breadth
Executive Development Program
training and development programs
Multi-business exposure via:
 staff transfers
 secondment
 special assignments
to give global experience and corporate exposure
Recruitment of expatriates and international employees to assimilate new
skills, knowledge & culture
6
People Development: Strategic collaboration to develop skills relevant to auto
industry
 Development of
new technologies
 Adding
'intellectual capital'
 Government policy
 R&D grants
UNIVERSITIES
1. Universiti Utara
Malaysia
2. Universiti Putra
Malaysia
3. Universiti
Teknologi
Malaysia
4. Kolej Komuniti
5. ..and others
GOVERNMENT
 Trade protection
 Regulations
INDUSTRY
 Engagement
 Application
 Commercialization
Leadership Development
To ensure that organisations have the leadership they need for the future:
Leadership Development
Training & development
Succession planning
- Identify top candidates for the
organisation’s most important valueadded jobs
- Development programs congruent to
the needs of job competency
Career management
Rewards & compensation
- Define a career path for development
- Measure job related behaviours
required to meet job responsibilities
Performance management
Recruiting & selection
- Plan objectives, performance coaching
and review between manager &
subordinate
- Attracting top talent
7
Leadership: Can it be Holistic?
Leading from the mind, the heart and the soul
Holistic leaders continuously strive towards creating a culture of openness, trust,
respect, participation, empowerment, and growth.
‘Holistic’ Leader
Intellectual
Technical &
business
knowledge
Emotional
Spiritual
Self-awareness,
self-regulation,
motivation,
empathy, and social
skills.
Virtuous behaviour:
Sabr (Patience)
Hikmah (Wisdom)
Tawakkul (Reliance on Allah)
Bai'yah (Allegiance)
Ihtisab (Accountability)
Focuses on Spiritual Aspects of Leadership
Within the
working
environment
Outside the
working
environment
 Azan (call for payers) in the
production and office area
 Regular talks on religious
and spiritual subjects among
employees
 Non work related activities
 Team building activities
 Sports & recreational
activities
To create and strengthen the spiritual awareness among leaders and employees
8
Communication Sessions
Communicating a clear sense of purpose and direction
Town Hall Session between MD and PROTON executives
SAGA Pre-production Launch by MD with workers and vendors
2.2 Product Innovation and Service Improvements
Moving Towards Platform Optimization
Target
Current
Savvy (A)
Iswara (B)
Satria
Neo (C)
Wira (C)
Gen.2 (C)
Saga (B)
?
(A/B)
?
(C/D)
Persona (C)
MPV
Waja (C/D)
Perdana (D)
7 platforms
9
3 platforms
2 platforms
Various models, variants and markets
Previous
Enhancing R&D capabilty through collaboration with Lotus
LOTUS: Company Introduction
• Located in Hethel, Norwich
• Colin Chapman built his first racing car in 1948,
eventually founding Lotus Engineering in 1952
PROTON acquired Lotus in 1996 to
increase engineering and R&D capabilities
Today Group Lotus is organised into 2 divisions:
1. Lotus Cars - builds world class, prestige, high
performance sports cars for sale
2. Lotus Engineering - automotive engineering
consultancy for vehicle manufacturers and suppliers
This allow Lotus to offer the full solution
from Concept through to Production
Development of Market Driven Products
Input from the market is
incorporated into the design
Market Driven Products
Through own research
Feedback from distributors and
customers
Results: Shortening Vehicle Development Time
10
Developing a completely new vehicle is a complex and highly detailed process, usually
taking 36 months from initial concept stage, to the production of a road-worthy model.
PROTON’s state-of-the-art facilities combined with the expertise of PROTON engineers
mean the process of developing new models has been reduced to 17 months.
PRODUCT
PLANNING
STYLING
POWERTRAIN
ENGINEERING DESIGN
TESTING & HOMOLOGATION
MANUFACTURING
PROTOTYPING
VENDORS
SUPPLIERS
Shortening vehicle development time from 3 years to 17 months
Results: Help PROTON regained market confidence and enhance brand image
PERSONA – Development Period* of 16 months
PERSONA - Best Model of the Year 2008
2008 Frost & Sullivan ASEAN Automotive Awards
PERSONA – 1st Place (Family Car)
Asian Auto – Bosch Fuel Efficiency Awards 2008
SAGA – Development Period* of 17 months
SAGA – ASEAN Car of the year 2008
Autocar Asean
SAGA – Best People’s Car
Asean Auto-VCA Industry Awards 2008
?
MPV – Development Period* of 18 months
*From model fix to SOP
11
Quality Improvement Initiatives
PROTON's tough attitude on quality
Quality is a thrust that PROTON strives to improve upon and it is a
challenge which we will have to resolve to make an impact globally
PROTON’s focus in every area of quality improvement:
• produce better products,
• implement more stringent systems and disciplines to abide
by the procedures,
• improve the manufacturing and engineering processes,
• practice customer-focused service at showrooms and
workshops, and
• extend the practice to vendors and dealers.
In August 2007, PROTON emerged with the greatest improvement in customer
satisfaction according to the J D Power Asia Pacific 2007 Malaysia Consumer
Satisfaction Index (CSI) Study.
Results: Solid team culture as a result of clear direction leads to improved quality
Concerns
per car
Imp
ro v
ing
tr
end
line
55.5%
64.2%
% concern-free
cars
PROTON came out with the greatest improvement in customer satisfaction
in J D Power Asia Pacific 2007 Malaysia Consumer Satisfaction Index (CSI)
Study.
12
2.3 Global Expansion Program
Global Expansion: Key thrusts for PROTON in the near future
Focus on high growth, regional markets
• Target ASEAN, China, India and the Middle East
North Africa (MENA) for economies of scale
• Leverage trade and cultural linkages to establish
presence
MARKETS
Move to market driven product development
• Adopt a value for money strategy
• The right car, right price and right time
PRODUCTS
Establish multiple production hubs
• Maximise localisation to reduce cost
• Complementation of key components
PRODUCTION
Export Strategy
UK
Growth area:
Asia (led by
China), Africa
and Middle
East
• •
•
CHINA
IRAN
•
•
.
INDIA
ASEAN
MIDDLE EAST & AFRICA
AUSTRALIA
PROTON will focus on expanding traditional markets like South Africa, Middle
East and develop new high-growth markets i.e. China, India and Indonesia
13
Through knowledge, sharing and unity, mutual benefit can be attained
PROTON’s and Lotus’
collaboration with KACST to:
• Effect technology transfer
• Assist in setting-up of
Automotive Development
Center
• Assist in manufacturing &
local parts development
3.
• Relationship established in 2001 for the
assembly and distribution of PROTON
products
• To date, almost 15,000 PROTON cars OTR
• 200 units of Waja taxis currently operating in
Tehran
• Gen.2 CKD assembly agreement recently
signed to allow Zagross Khodro to assemble
the Gen.2 model
• With a current plant capacity of 15k – 25k
(expandable to 50k), Iran can be PROTON’s
hub for the Middle East – North African market
Signing of Strategic Collaboration
Agreement with SAIPA on 2nd Aug
08 governing the following:
• Engine Development:
potential localisation and
production of CamPro
• Potential joint branding and
assembly of MPV LHD
• Model Development:
potential development of
new model based either on
new platform or PROTON’s
current platform
• R&D Activities: potential
engine integration; potential
full model change
Economic Value Chain
PROTON: A Local Company with Global Presence
UK
UK
United Kingdom
Turkey
ASIA
ASIA &
& INDIAN
INDIAN SUB-CONTINENT
SUB-CONTINENT
Syria
Kuwait
MIDDLE
MIDDLE EAST
EAST
Egypt
&
& SOUTH
SOUTH AFRICA
AFRICA
Iran
Qatar
Nepal
Taiwan
UAE
Sri
Lanka
Singapore
Malaysia
Brunei
Indonesia
KEY
• Proton own plant (3)
• CKD Assembly by
distributor(1)
• Distribution
Subsidiaries (4)
• Active Distributors (11)
AUSTRALASIA
AUSTRALASIA
South
Africa
Australia
14
Value Creation in Domestic Market (1/1)
MANUFACTURING
and
ENGINEERING
PROCUREMENT
SALE &
DISTRIBUTION
Total Vendor : 220
(Muslim Vendor : 77)
Employee : 8,290
(95% Muslim)
Total Sales Dealers : 232
(Muslim Dealers: 148)
Annual Business Volume
(for Muslim vendors)
RM 1.3 Billion+
Annual Employee Costs
(for Muslim Employees)
Annual Business Volume
(for Muslim Dealers)
RM 1.7 Billion*
RM 300 Million
*For
FOREIGN
40%
Year 2007
Direct Employees & dependants
MUSLIM
45%
22,000 (Muslims only)
Indirect Employees & Dependants
NON MUSLIM
15%
+ FY07/08
100,000 (Total)
COMPONENT PURCHASE VALUE
(TOTAL RM2.92 BILLION)
Value Creation in International Market (1/2)
Form collaboration with
• Zagross Khodro
Design
• SAIPA
• KACST
MANUFACTURING
Facilitating the collaboration of Malaysia
Vendors with Local Vendor in China &
Iran
Procurement
CKD Operations
• Iran ( Zagross Khodro )
Assembly
• Egypt
Under discussion
• Jordan
• China (Youngman)
15
Value Creation in International Market (2/2)
Gulf Countries
• Saudi
Business Volume
(USD Mil)
• Oman
• Bahrain
• Qatar
22
• UAE
Egypt
28
Syria
• Lebanon
DISTRIBUTION
33
• Iraq
Turkey
25
117
Iran
25
Indonesia
Others
• Brunei
6
• Bangladesh
1. The Evolution of PROTON
4.
Conclusion
Conclusion : What makes us different.
Muslim
business
Point 1
partners
Common Islam believe and
value system
Point 2
Muslim etiquette :
• trustworthiness
• respectful
• moderation
• humility
16
• Principle-led business
• Highest level of
professionalism
• Work-life balance
Characteristic of the Ummah
Verily never will Allah change the condition of a people until they change it themselves
(with their own souls)
Ar-Ra’d:11 Translation by Yusuf Ali
Thank You
17