AGW 617/3

Operation Strategy
Graduate School of Business
Universiti Sains alaysia
Se!ester ""# Acade!ic Session $%13/$%1&
'a!e(
)arti*an Aso+an ,-GS %$$&/1$.
/ong 0ing /i ,-GS %%&1/1$.
Solihaton 2ani! Binti 2ali! ,SGS%&33/11.
-ro4ect 5itle ( ain operations of -roton addressing
product/service design# supply net6or+s and operations
strategies
TABLE OF CONTENTS
1
Background of PROTON
2
Background of PROTON 3
SWOT Analysis of PROTON 4
Issues and Concerns in Proton 7
Oerations of Proton !
Reco""endation #$
Conclusion #3
Aendi% #4
References #&

T'e (alaysian go)ern"ent took a )ery long ter" strategic )ie* to create an
auto"o+ile industry, Alt'oug' t'e esta+lis'"ent Proton arose in t'e -!.$s/ t'e national
industry auto"oti)e 'ad +egun in -!&#/ *'en 0ord (otor Co"any of (alaya *as
incororated and +egan oeration *it' -& e"loyees fitting *'eels/ doing +ody reair and
aint touc'1u *ork in a rented s'o in Singaore, T'en/ in -!&# and later in -!&3/
(alaysian go)ern"ent initiated to "o)e t'e roduction in local area,
T'e esta+lis'"ent of Proton Sdn, B'd, started *'en t'e C2O of (itsu+is'i
Cororation )isited (alaysia in Octo+er -!.-/ *'en Tun (a'at'ir (o'a""ad ruled as
(alaysian ri"e "inister, Tun (a'at'ir roosed a 3oint )enture to "anufacture national
car, T'en/ in -!.# a tea" *as assigned at 4ICO( 54ea)y Industries Cororation of
(alaysia6 to do a researc' and sign a settle"ent *it' (itsu+is'i,
Proton *as launc'ed on 7t' (ay -!.3 *it' t'e ai" of +uilding a national car, Proton
is t'e first esta+lis'ed auto"o+ile co"any in (alaysia t'at "anufactures/ asse"+le and sell
"otor )e'icles and related roducts/ including accessories/ sare arts and ot'er co"onents,
T'e goal of t'is national car ro3ect is to rise u t'e (alaysian industriali7ation, Proton used
t'e tec'nology of (itsu+is'i and its 'ard*are arts, Proton Saga *as officially launc'ed in
t'e year of -!.8, It *as (alaysia9s first do"estically roduced car and is still sold in
(alaysia and ot'er countries today,
(alaysia "ade an enor"ous lea in t'e year -!.$s and -!!$s +y e"erging as t'e
fastest de)eloing country across t'e AS2AN region, T'e leaders'i of :r, (a'at'ir *as t'e
one *'o introduced in a national de)elo"ent olicy docu"ent entitled ;ision #$#$, T'e
ortfolio of Proton "odels includes t'e Wa3a/ t'e <en#/ Arena/ Sa))y/ Satria Neo, T'e range
of -,3/ -,8/ -,&/ -,. and #,$ litre engines satisfies a *ide sectru" of custo"ers +ot' locally
and a+road, Proton cars are e%orted to "ore t'an 8$ countries *orld*ide, =ey e%ort
"arkets include Australia/ Singaore/ t'e 0ar 2ast and t'e >=,
T'e 'ead?uarters is in S'a' Ala"/ (alaysia/ includes t'e original (ain Plant and
(ulti ;e'icle 0actory 5(;06, T'e (ain Plant9s caacity is -8$/$$$ units *'ile t'e (;0
caacity is 8$/$$$ gi)ing a total caacity of #$$/$$$ units er year, Proton9s total *orkforce
in (alaysia totals 3ust o)er &/$$$ ersonnel *orking in all areas of )e'icle design/ R@:/
roduction and "anufacturing,
Proton took a "a3or ste for*ard in ugrading its engineering caa+ilities *'en it
ac?uired a s'are in Aotus <rou International in Octo+er -!!&, T'is stake *as increased to
-$$B in #$$3, Since t'e ac?uisition/ ersonnel fro" Aotus are closely in)ol)ed in Proton9s
ne* "odel de)elo"ent/ *it' a tea" of engineers er"anently +ased at t'e design and
3
de)elo"ent centre in (alaysia, Proton *as u+licly listed on t'e =uala Au"ur Stock
2%c'ange in -!!#/ and it *as ac?uired +y :RB 1 4ICO( in early #$-#, Proton is strongly
recogni7ed in t'e industry and it is t'e +iggest auto"o+iles "anufactures in (alaysia, Strong
industry recognition *ould furt'er en'ance t'e +rand i"age of t'e co"any and gi)es it a
co"etiti)e ad)antage,
SWOT Analysis of PROTON
Strengths
Proton9s strengt' lies in its co"etiti)ely riced roduct, Its e%tensi)e nation*ide
distri+ution net*ork 'els t'e industry to "o)e for*ard *it' t'e suort fro" (alaysian
go)ern"ent, It 'as t'e recognition leading to a strong +rand i"age in (alaysia, Proton
started to 'a)e a strong focus on R@: ro3ects in t'eir future lans,
Weaknesses
Proton relies "ore on t'e concentrated oeration as itCs o)er deendence on t'e
(alaysian "arket, As it goes +y/ Proton9s cas' osition *as declining, It *as redicted t'at it
could reduce t'e a)aila+ility of resources to ursue gro*t' lans,
Oortunities
Proton )entures into strategic alliances as it e%and its roduct ortfolio +y signing u
into strategic agree"ents and strengt'en its osition in t'e industry, Colla+orations *it'in
industry layers could ena+le PROTON to do "any t'ings, T'roug' researc' and
de)elo"ent "ore inno)ati)e roducts could +e in)ented/ ensure t'at PROTON as a +rand
na"e re"ains in t'e industry/ and also en'ances ne* oortunities glo+ally,
Threats
Proton faces intense co"etition in its "arket seg"ents, T'eir close ri)als *ould +e
Perodua/ Toyota and 4onda, T'e +asic co"etition *ould on t'e ricing/ ser)ice ?uality/
de)elo"ent and custo"er ser)ice, T'e go)ern"ent 'ad also tig'tened t'e e"ission
standards align *it' t'e 9<o <reen9 ca"aign,
!eneration "
(a3ority of Proton9s users are fro" generation D/ *'o are +orn in t'e "id1-!.$ and
later, In a glo+al sur)ey of consu"ers in year #$-4/ <en D consu"ers *ill account for
4
aro%i"ately &-B of t'e car1+uying oulation in t'e ne%t t'ree years, Consu"er <en D is
"ore focused on afforda+ility and racticality, It is "ore on to t'e style and features of t'e
)e'icle, <en D concerns "ore on t'e fuel efficiency/ needed features/ relia+ility and t'e
integration of t'e features,
E#ectation of !eneration "
To cature t'e attention of <en D/ t'e co"any "ust use fe* fa"ous "edia sources
to attract t'eir interest, T'e fa"ous "edia usage *ill +e t'e Internet/ *'ere an Internet
strategy 'ad to +e used, An interacti)e *e+ site is needed *'ic' ro)ides na"e/ location/
offerings/ +ackground and contact infor"ation,
$% Afforda&ility
Wit' 4.,. "illion consu"ers lanning to urc'ase or lease a car in t'e ne%t t'ree
years/ t'e oortunity to cater to t'is generation is co"ing on fast, (aking t'at urc'ase
afforda+le is t'e to riority to <en D, A study reorted &4B of <en D consu"ers lo)e t'eir
cars/ yet t'ey are t'ree ti"es "ore likely t'an ot'er generations to a+andon t'eir )e'icles if
t'ey +eco"e too costly,
'% Fuel Efficiency
Doung consu"ers *ant fuel efficiency to co"e fro" ne* tec'nology in order to sa)e
gas and "oney, :ue to t'e rice increase in etrol/ fuel efficiency is +eing considered as one
of t'e "ain concern in car1+uying decision,
(% Be a)aila&le '*+,
No*adays t'e consu"ers are collecting t'e infor"ation *'ene)er t'ey *ant and 'o*
t'ey *ant at any ti"e, <en D in articular 'as +eco"e 'a+it to instant gratification and t'ey
refer to recei)e lots of feed+ack *'et'er is ositi)e or negati)e, T'ey are so i"atient and
need ans*ers i""ediately, T'us *e "ust +e careful to take t'at into consideration *'en
"arketing *it' <en D, (oreo)er/ We+ site and listings on our We+ sites/ also consider
'a)ing a +log site/ for e%a"le Proton 0an Clu+ age or +logs, 0or Proton Insira/ t'ey do
'a)e a clu+ *e+ age *'ic' is PROTON INSPIRA CA>B, T'is allo*s users of roton
Insira to interact *it' eac' ot'er a+out t'eir oinions and ro+le"s,
*% Listen
5
<en D is )ery oti"istic and e%ressi)e and "aking t'eir oint is )ital for t'e",
Aisten carefully to t'eir *ants and needs *it' t'at analy7e t'eir +e'a)iour carefully,
According to a Cone Business study in Sete"+er #$$./ !4B of eole using social "edia
trust a co"any s'ould 'a)e a resence aearance in social "edia and .4B +elie)e a
co"any s'ould go furt'er a'ead t'an 3ust 'a)ing a resence and s'ould also interact *it' its
consu"ers )ia social "edia,
-% Be creati)ity
T'e <en D likes to 3u"+le e)eryt'ing into one and kee it ne*, So your ad)ertising
skills and tec'ni?ues to t'e" need to +e creati)e in order to gra+ t'eir attention, T'ings
youC)e done in t'e ast "ay not necessarily *ork for t'e future urose, Being inno)ati)e
"inded and t'inking outside t'e +o% skills is i"ortant, T'is concet gi)es users lots of
fle%i+ility route *it' t'eir resonses and also allo*s for lenty of roo" for fun and creati)e
interretation,
.ssues and Concern
Alt'oug' Proton 'ad gone t'roug' nu"erous ac'ie)e"ents in t'e recent years/ t'ere
are fe* talking oints *'ere it 'ig'lig'ts t'e ro+le"s t'at Proton for t'e ast decade, T'e
ro+le" *it' Proton 4oldings B'd is t'at it feels t'at (alaysia o*es it a li)ing, It *ants to
continue to "ake rofits at t'e e%ense of (alaysians, It does not reali7e t'at #8 years is too
6
old for it to +e +a+ied 5P,<unasegara"/ #$-$6,
Proton *ants to 3oint )enture *it' Perusa'aan Oto"o+il =edua or kno*n also as
Perodua, In t'ese recent years t'ey 'a)e surassed Proton in sales and turn out to +e t'e
"arket leader, But Perodua is a reluctant +ride and its to "anage"ent 'as oenly/ and
understanda+ly/ e%ressed oosition against t'e "erger +ecause it gi)es no +enefit to
Perodua *'ile +eing otentially rat'er 'ar"ful 5P,<unasegara"/ #$-$6, T'is 'ad lead Proton
to find a tec'nological "erger *it' a 'ig' reutation and large "anufacturer,
0ro" t'e o+ser)ation/ *ere identified t'e ro+le" *'ere+y it co"e fro" t'ese joint-
venture talks *ere unsuccessful and (< Ro)er su+se?uently collased and it *as ac?uired
*it' anot'er 2uroean car "anufacturer t'roug' "erger, Increased co"etition and
li+eralisation *it'in t'e do"estic auto"oti)e industry/ raidly c'anging trends and industry
c'allenges/ Proton found out t'at it is a need to re1strategi7e 'o* it s'ould co"ete, It *as
clear t'at Proton can utilise its li"ited resources "ore efficiently )ia strategic colla+orations
rat'er t'an going it alone, T'e study found t'at Proton e"loyed a artial art of JIT in t'eir
roduction acti)ity, Si"son et al, 5-!!.6 +elie)e t'at t'is could +e a otential core of
co"etence for Proton, T'e "ain factor t'at ena+led Proton to "aintain its EIT syste" is its
)endor de)elo"ent syste",
Proton 4oldings Sdn B'd alies process strategy intends to "ake lo*1)olu"e/ 'ig'
)ariety roduction in laced called 3o+ s'os, In addition/ t'is also ena+les roton to ac'ie)e
econo"ies of scale in order to reduce rice 5'o*e)er/ t'is strategy 'as not yet e%isted
+ecause of lo* le)el of de"and t'at result in lo* le)el of roduction6,
T'e study "ade a decision to find out so"e of t'e factors t'at fro" t'e product
design, 2%a"le esta+lis'ing ne* factory/ introducing ne* "odels/ tec'nology de)elo"ent/
'u"an caital de)elo"ent and ?uality en'ance"ent, It is also to find out *'et'er t'e
ricing of Proton car "atc'es t'e standard of its ?uality, We also look into ProtonCs custo"er
ser)ice ?uality and deli)ery of its ser)ices t'roug'out t'e *'ole (alaysia, Aart of t'at/ *e
'ad look onto t'e erfor"ance and ?uality of t'e Proton roducts t'at 'a)e +een
"anufactured and auto"ated in (alaysia,
7
T'e role of supply chain management in e%tending EIT fro" an internal aroac' to
an e%ternal aroac' 'as +een docu"ented, 4o*e)er/ t'ere is so"e argu"ent offer ad)ice on
se)eral co""on itfalls in dealing *it' suly c'ain in)entory, Proton decided to *ork
closely *it' t'e )endors to ensure continuous i"ro)e"ent in ?uality and efficiency is
i"le"ented, Proton found t'at t'ey "ust foresee t'e inefficiencies *it'in t'eir factories
i"ro)ing once ?uality i"ro)es and e%ect t'is to translate into auto"atic cost sa)ings,
T'erefore/ all of t'ose s'ould +e identified and analy7ed/ in order to i"ro)e t'e
ser)ice *'ic' su+se?uently could +uild and "aintain t'e relations'i +et*een t'e co"any
and t'eir custo"ers and as a result/ t'e custo"ers *ould satisfy *it' t'e ser)ice ro)ided,
T'is is i"ortant for i"ro)ing t'eir +usiness erfor"ance and relations'i to deli)er a F'ig'
standard ?ualityG of ser)ices in order to ac'ie)e t'e Ftotal custo"ersC satisfactionG for t'eir
custo"ers, In addition/ Proton 4oldings s'ould s'o* t'at t'ey care a+out t'eir custo"ers
*'ic' is i"ortant to ro3ect t'e i"age of a customer-oriented ro)ider in ensuring long1
ter" relations'is and as a smart company/ Proton 4oldings s'ould ai"s to delig't t'eir
custo"ers +y ro"ising only *'at t'ey can ser)ice/ and ser)ice "ore t'an t'ey ro"ise,
Oerations of Proton /oldings
The &rief history of Proton
T'e (alaysian go)ern"ent took a )ery long ter" strategic )ie* to create an auto"o+ile
industry, Alt'oug' t'e esta+lis'"ent Proton arose in t'e -!.$s/ t'e national industry
auto"oti)e 'ad +egun in -!&#/ *'en 0ord (otor Co"any of (alaya *as incororated and
+egan oeration *it' -& e"loyees fitting *'eels/ doing +ody reair and aint touc'1u *ork
8
in a rented s'o in Singaore, T'en/ in -!&# and later in -!&3/ (alaysian go)ern"ent
initiated to "o)e t'e roduction in local area 5Si"son et al/ -!!.6,
T'e esta+lis'"ent of Proton Sdn, B'd, Started *'en t'e C2O of (itsu+is'i Cororation
)isited (alaysia in Octo+er -!.-/ *'en Tun (a'at'ir (o'a""ad ruled as (alaysian ri"e
"inister, Tun (a'at'ir roosed a 3oint )enture to "anufacture national car, T'en/ in -!.# a
tea" *as assigned at 4ICO( 54ea)y Industries Cororation of (alaysia6 to do a researc'
and sign a settle"ent *it' (itsu+is'i,
Based on tec'nology and arts fro" (itsu+is'i (otors/ roduction of t'e first "odel/ t'e
Proton Saga +egan in Sete"+er -!.8 at its first "anufacturing lant in S'a' Ala"/
Selangor, Initially/ t'e co"onents of t'e car *ere entirely "anufactured +y (itsu+is'i +ut
slo*ly local arts *ere +eing used as tec'nologies *ere transferred and skills *ere gained,
T'e -$$/$$$t' Proton Saga *as roduced in Eanuary -!.!, >ntil t'e end of t'e -!!$s/ t'e
car9s logo featured t'e crest fro" (alaysia9s coat of ar"s/ featuring a crescent and a fourteen1
ointed star, T'e ne* Proton logo features a styli7ed tiger 'ead,
In -!!3/ a "odel called Proton Wira *as introduced +ased on t'e (itsu+is'i AancerHColt,
(ore t'an ##$/$$$ units *ere sold +et*een -!!& and -!!., Proton Perdana/ +ased on t'e
(itsu+is'i <alantH2terna/ *as first roduced in -!!8/ intended for 'ig'er end "arket, By
#$$# Proton 'eld a "arket s'are of o)er &$ er cent in (alaysia/ *'ic' *as reduced to
+arely 3$ ercent +y #$$8 and is e%ected to reduce furt'er in #$$. *'en A0TA "andates
reduce i"ort tariffs to a "a%i"u" of 8B, Proton Wa3a 5Proton I"ian in >=6 is t'e first car
"odel designed internally +y Proton, It *as launc'ed in early #$$-,
Wit' t'e ac?uisition of Aotus tec'nologies in -!!& fro" ACBN 4oldings 5a co"any o*ned
+y t'e sa"e erson *'o o*ned Bugatti6/ Proton 'as gained an additional source of
engineering and auto"oti)e e%ertise, T'is led to t'e roduction of Proton <en1# *'ic' *as
code na"e Wira Relace"ent (odel 5WR(6 +efore t'e launc', T'e <en1# is t'e first of cars
to +e "anufactured and asse"+led at t'e ne* "anufacturing lant in Tan3ung (ali"/ Perak
*'ic' is art of Proton City de)elo"ent ro3ect, T'e lant *as oened in #$$4, On Eune ./
#$$8 Proton introduced t'e second "odel to +e "anufactured in Tan3ung (ali"/ t'e -/#$$ cc
81door suer1"ini/ t'e Proton Sa))y, Bot' t'e <en1# and Sa))y/ *ere "odels t'at (<
Ro)er *as looking to re+adge *'en t'e Britis' fir" entered into colla+oration talks *it'
9
Proton, 4o*e)er t'ese 3oint1)enture talks *ere unsuccessful and (< Ro)er su+se?uently
collased and it *as ac?uired *it' anot'er 2uroean car "anufacturer t'roug' "erger,
Proton strategic lan and 0ust .n Ti1e 20.T%
Since t'e -!.&/ Proton 'as de)eloed t*o "ain strategic lansI t'ose are Industrial (aster
Plan 5I(P6 - and #, T'e "ain goal in t'ese t*o "aster lans is to "o)e t'e stage of
roduction fro" Co"letely =nock :o*n 5C=:6 Car to Co"lete (ade Aocally 5C(A6
Car, T'e I(P - 5i"le"ented effecti)ely in -!.&1-!!86 'as t'ree "ain o+3ecti)esJ
a6 2nsure raid e%ansion of t'e econo"y t'roug' a surt in gro*t' of "anufacturing sector
+6 Pro"ote efficient and oti"u" utili7ation of natural resources t'roug' )alue1added
"anufacturing acti)ities
c6 Aay foundation for t'e de)elo"ent of local tec'nological caa+ilities
Wit' t'ese lans/ Proton tried to ac'ie)e an industrial1strengt' car "anufacturer and
contri+ute to national econo"ic gro*t' +y ro)iding 3o+s for (alaysian citi7ens,
After Proton "ade a successful atte"t fro" t'e sales of Saga/ Proton initiated anot'er
strategic lan called I(P# in -!!8 *it' si% "ain o+3ecti)es/ t'ose areJ
a6 Indigenous researc' and de)elo"ent tec'nology
+6 :esign caa+ilities
c6 Integrated suorting industries
d6 International "arketing
e6 :e)elo"ent of o*n +rand
f6 World class/ *orld sale
Based fro" t'e o+3ecti)es a+o)e/ *e can notice t'at Proton 'ad an a"+ition to +e a art of
glo+al car "anufacturer, As e%lained in age - a+o)e/ Proton ac'ie)ed t'is goal +y
ac?uiring tec'nologies fro" Aotus Inc, in -!!&, In fact/ Proton 'ad done t'is since -!.& *it'
t'eir Saga/ alt'oug' it is not stated in t'e I(P -, T'ey 'ad e%orted to "ore t'an 8$ countries
around t'e glo+e/ *it' "ain "arket s'are in Australia/ Sout' 2ast Asia/ Africa/ and >nited
=ingdo",
Aike*ise/ Proton "o)e furt'er +y e%anding t'e roduction t'roug' t'e esta+lis'"ent of ne*
lant in Tan3ung (ali" 5Perak State6 *it' si7e fi)e ti"es +igger t'an S'a' Ala" lant, In
10
addition/ t'e ne* lant also e?uied *it' so'isticated car "anufacturing tec'nology and
i"ro)e"ent in roduction line, T'e i"ro)e"ent in roduction line fro" rocess focus to
asse"+ly line is t'e i"ortant feature t'at 'els Proton to increase its caacity, Wit' t'e ne*
lant Proton can increase its roduction fro" #3$/$$$ cars er year to one "illion cars er
year,
:esite t'e u+lic sceticis" and negati)e critics fro" custo"er and ot'er stake'olders
recently 5due to dro in sales6/ Proton in fact 'as a state1of1art oeration strategy 5alt'oug' it
'as not reac'ed t'e so'isticated le)el yet6, Si"son et al 5-!!.6/ e%lained a+out t'is fact in
t'eir researc', Si"son and 'is colleagues analysed t'e le)el of EIT i"le"entation in Proton
S'a' Ala" (anufacturing lant at t'at ti"e,
T'e study found t'at Proton e"loyed a artial art of EIT in t'eir roduction acti)ity,
Si"son et al, 5-!!.6 +elie)e t'at t'is could +e a otential core of co"etence for Proton, In
addition/ ProtonCs strategy to co"ete in rice *it' ot'er car "anufacturer adds anot'er
)alue in its co"etiti)e ad)antage, 0or e%a"le/ Proton Saga 'as a lo*er rice co"ared to
ot'er +rands in Sedan1tye car,
0urt'er"ore/ t'e "ain factor t'at ena+led Proton to "aintain its EIT syste" is its )endor
de)elo"ent syste", Wit' t'e syste"/ it is ossi+le to ensure t'at arts and co"onents are
sent at t'e rig't ti"e *it' less in)entory cost and *it'out reducing t'eir ?uality 5Si"son et
al/ -!!.6,
W'atCs "ore/ Si"son et al 5-!!.6 argue t'at Proton also 'as ot'er suorting "ec'anis"s
suc' as t'e Kuality/ Cost/ :eli)ery 5KC:6 targets and t'e F3(G and F#SG i"ro)e"ent
"ec'anis", T'e F3(G 5Mura/ Muri and Muda6 aroac' is an i"ro)e"ent rogra""e
*'ic' focuses on t'e eli"ination of t'ese F3(sG, T'ese are/ according to ProtonJ
a6 Irregularities 5Mura6J often caused +y une)en erfor"ance/ lack of coordination in
oerations and t'e reair of re3ected arts
+6 2%cessi)eness 5Muri6J can +e t'e result of o)er1ro)ision in ProtonCs oerations
c6 Wastefulness 5Muda6J results fro" unnecessary *ork and oerational *aste *'ic' 'as
occurred in t'e factory
11
In addition to t'e F3(G i"ro)e"ent rogra""e Proton uses t'e F#SG aroac' to ac'ie)e
its o+3ecti)es, T'e F#SG re?uires tidying u 5Seiri6 and ensuring t'at t'ings are ut in lace
5Seiton6, T'is F#SG aroac' is only a art of t'e F8SG kaizen "o)e"ent/ of *'ic' t'e ot'er
t'ree areJ Seiso 5clean u6/ Seiketsu 5ersonal cleanliness6 and Shitsuke 5disciline6, To
i"le"ent t'ese rogra""es/ ten tea"s co"rising fi)e eole eac' fro" )arious
deart"ents and sulier reresentati)es *ere for"ed at Proton to suort t'e KC: targets,
Process Strategy
<enerally seaking/ Proton alies rocess focus in its rocess strategy in S'a' Ala"
"anufacturing lant, As e%lained +y 4ei7er and Render 5#$$46/ t'is strategy intends to
"ake lo*1)olu"e/ 'ig' )ariety roduction in laces called 3o+ s'os, T'e syste" alied in
S'a' Ala" "anufacturing lant ro)ed to +e a successful atte"t/ "aking it ossi+le for
roton to roduce Saga/ Wira/ and Satria for "ore t'an -$$/$$$ units 5alt'oug' it is still
considered under caacity6,
(oreo)er/ t'e esta+lis'"ent of Tan3ung (ali" "anufacturing lant signifies Proton long1
ter" goal to ac'ie)e increase in outut roduction, In addition/ t'is also ena+les roton to
ac'ie)e econo"ies of scale in order to reduce rice 5'o*e)er/ t'is strategy 'as not yet e%isted
+ecause of lo* le)el of de"and t'at result in lo* le)el of roduction6,
E#erience
Si"son et al. 5-!!.6 +elie)e t'at Proton co"etiti)e ad)antage co"es *it'out dou+t fro"
t'e e%erience it gained since t'e first tea" *as initiated in 4ICO( in -!.3, A strategic
alliance +y 3oint )enture allo*s t'e tec'nology to +e assed fro" *ell1kno*n "ultinational
car "anufacturer suc' as (itsu+is'i/ Renault/ and Peugeot to local eole, T'us/ it *ill
i"ro)e 'u"an caital in (alaysia, Aike*ise/ 3oint )enture also gi)es e%erience to Proton
in i"ro)ing its oeration "anage"ent,
T'ere is a good "o)e"ent to "aintain roton situation fro" t'e red flag, Recently +y
introducing ersona/ t'ey s'o* t'at *it' launc'ing ne* "odel t'ey are a+le to cature t'eir
12
lost "arket s'are, T'ey also 'a)e tried to control t'eir costs and ac'ie)e oerational
efficiency and roduct ortfolio rationali7ation as *ell as increase e%orts to +oost earnings,
Wit' t'ose strategies t'ey *ere a+le to reduce t'eir lossI net loss narro*ed to R(4&,. "il in
t'e first ?uarter t'is year co"ared *it' R(8.,& "il a year earlier desite lo*er re)enue of
R(-,-+il against R(-,4 +il re)iously, T'e "ost i"ortant e)ents *'ic' 'a)e taken lace in
Proton Co"any in recent year are listed +elo*J
Product design
a% Esta&lishing ne3 factory
Pre)iously roton 'ad one lant in Shah Ala1 *it' its co"+ined caacity of #$$/$$$ units
annually/ co"rises t'e "ain factory *'ic' roduces t'e Saga/ Wira/ Perdana and Arena
"odels/ and t'e "ediu" )olu"e factory *'ic' roduces t'e Wa3a and C'ancellor "odels for
t'e do"estic and e%ort "arkets, ProtonCs casting/ engine and trans"ission factories are also
located in S'a' Ala" and t'ese facilities are caa+le of roducing -.$/$$$ units of Ca"Pro
engines er year, T'e S'a' Ala" lant also sulies C=: 5Co"letely =nocked1:o*n6
arts and co"onents to Lagros1='odro in Iran to asse"+le and "arket Proton )e'icles in
t'e (iddle 2ast region, In t'e eriod under re)ie*/ -/74$ )e'icle sets *ere deli)ered for
asse"+ly, In t'e eriod under re)ie*/ )arious initiati)es focusing on i"ro)ing t'e ?uality of
roducts/ oerational efficiency and ne* roduct )ariants and introductions/ *ere
i"le"ented,
Recently Proton esta+lis'es t'e ultra1"odern "anufacturing and asse"+ly lant in Tan3ung
(ali" *it' annual caacity of -8$/$$$ units and is caa+le of roducing t'ree different
latfor"s and "ultile )ariants, T'is lant consists of engine/ sta"ing/ +ody asse"+ly/
ainting and final asse"+ly facilities/ inclusi)e of end1of1line )e'icle testing e?ui"ent t'at
is fully integrated into ProtonCs Auto"ated1Asse"+ly Aine Controller 5PAAC6 alication,
T'e Tan3ung (ali" lant 'as t'e otential of asse"+ling u to one "illion )e'icles/
to dateI only #4$ acres of t'e total -/#.$ acres 'a)e +een de)eloed, In t'e eriod under
re)ie*/ se)eral initiati)es ai"ed at i"ro)ing t'e ?uality of roducts and oerational
efficiency as *ell as ne* roducts )ariant and introductions *ere i"le"ented,
Concurrently/ rearations for t'e <en,# and Sa))y A4:1e%ort )ariants/ including a ne*
Satria "odel/ are +eing undertaken and t'ese "odels s'ould +e ready in t'e ne%t financial
13
year, T'e financial year sa* t'e Tan3ung (ali" lantCs +uilt u ?uality i"ro)ing +y al"ost
#8B/ *'ile its cost er unit *as reduced +y -B,
&% .ntroducing ne3 1odels
In recent year/ t'ey are trying to cature t'e s'are "arket +y launc'ing ne* "odels/ it *as
started +y introducing <2N1# and after t'at t'ey co"e u *it' Ne* Satria and recently *it'
Persona, It could +e an efficient strategy +ecause as *e can see in ta+le #,- t'e leading
co"anies generate t'e "ain ortion of t'eir sales fro" ne* roducts,
0or introducing ne* "odels t'ey design t'e roduct de)elo"ent syste" *'ic' is )ery
efficient/ *e can see t'e c'anges on t'e roductHser)ice design as a +enc'"ark on t'e
co"anyCs e)olution, In order to de)elo a co"lete ne* "odel/ it re?uired a co"licated
and 'ig'ly detailed rocess, 0or Proton itself/ usually it takes 3& "ont's fro" initial concet
stage/ to t'e roduction of a road1*ort'y "odel, Proton 'as tried +y using facilities co"+ined
*it' t'e e%ertise of Proton engineers reduce t'e rocess of de)eloing ne* "odels to #4
"ont's, T'ese are so"e ideas of concet de)elo"ent t'at i"le"ent recently +y Proton,
5Please refer to t'e Ta+le - in t'e Aendi%6
As it is o+)ious fro" t'e ta+le -/ t'e ne* "odel de)elo"ent +egins *it' Concet
For1ulation/ in t'is stage a +rainstor"ing rocess take lace/ trying to forecast e%actly *'at
custo"er *ill e%ect and need fro" t'e car,
Idea Sketc'es are 'and1dra*n and "odelled using co"uter tools like AAIAS, S"all Scale
5-J3 ratios6 is +uilt/ and uon concet aro)al/ t'e concet *ill rogress to t'e 4esign
4e)elo1ent 'ase, T'is 'ase of t'e de)elo"ent +egins to fill in t'e details of t'e concet
car/ suorted +y so'isticated digiti7ing layout lanning co"uter "odelling soft*are
*'ic' creates e%ternal surface 5A1surface6 data for for" and s'ae, A -J- full1si7e scale
"odel is +uilt/ finis'ed and ainted/ and if t'is is aro)ed/ a Styling12ngineering 0easi+ility
study e%a"ines t'e racticality of +ody engineering and car internal syste"s installations/
*'ile 3: co"uter "odelling adds refine"ents to t'e co"uter si"ulated "odel/ toget'er
*it' internal surface data 5B1surface6, Engineering 4e)elo1ent 'ase is fro" t'e (odel
0i%I engineers roduce co"onent dra*ings and si"ultaneously si"ulate t'e roerties of
+ody s'ell rigidity/ strengt' and cras'*ort'iness/ using Co"uter Aided 2ngineering 5CA26
to co"ly *it' safety standards, Prototye 4e)elo1ent 'ase in)ol)e Soft Tooling arts
14
are *'ic' *ere de)eloed *it' t'e secified designs @ "aterials ProtonCs Prototye S'o is
a+le to asse"+le and roduce t'e 0inal rototye car testing @ )alidation, T'e last 'ase
is Testing 4e)elo1ent5 At t'is 'ase/ nor"ally it *ill offer co"re'ensi)e testing for
Co"onent/ (aterial/ Safety/ Strengt' and Co"lete ;e'icle ;alidation,
c% Technology de)elo1ent
Proton also 'as tried to continue to kee a+reast of tec'nological ad)ance"ents in t'e
auto"oti)e industry +y undertaking ro3ects t'at ai" to en'ance t'e tec'nical kno*1'o* and
caa+ilities in 'ig'1tec'nology areas to ro)ide otential long1ter" +enefits, So"e of t'ese
ne* tec'nologies areJ
ALUMINIUM !"#$"MAN%! %"$SS$&!" 'A()
Proton 'ad de)eloed a concet rototye t'at utilises t'e ;ersatile ;e'icle Arc'itecture
5;;A6 t'at *as de)eloed t'roug' Aotus 2ngineering, T'e APM *as +uilt *it' alu"iniu"
+ased ;;A o*ered +y a ;& suerc'arged engine and is a se)en1seat crosso)er )e'icle,
%$M$SI*! MA*!"IAL "!S!A"%+
T'e Aotus 2uroa S *'ic' "ade its de+ut along *it' t'e APM at t'e <ene)a (otor s'o*
signifies t'e <rouCs intent to en'ance Proton kno*ledge and caa+ilities in t'e area of
co"osite "aterials, T'e end roduct sa* a lo* )olu"e roduction line set u at t'e S'a'
Ala" "anufacturing facility, T'e 2uroa ro3ect 'ad also esta+lis'ed an industrial
artners'i +et*een Proton and Co"osite Tec'nology Researc' (alaysia,
A"ALL!L +,-"I. !L!%*"I% &!+I%L! '+!&)
Proton 'ad e"+arked on a ro3ect *it' t'e Aotus <rou to de)elo a 'y+rid )e'icle caa+le
of running on eit'er electricity or gasoline, T'ey argue t'at t'is rogra""e ai"s to ele)ate
Proton tec'nology to a le)el t'at is on ar *it' t'eir glo+al co"etitors +y creating an
alternati)e )e'icle for t'e future *'ic' ro)ides custo"ers *it' +etter fuel econo"y/ reduced
e"issions and unco"ro"ising erfor"ance,
15
d% /u1an caital de)elo1ent
One of t'e oeration "anage"ent critical decisions is e"'asi7ing on 'u"an de)elo"ent,
T'erefore Proton 'as found t'at t'ey s'ould also focus on t'is area, 2)ery e"loyee/
reresentati)e and e)en t'e +usiness artners "ust not only understand *'at is re?uired of
t'e" and 'a)e t'e aroriate resources at 'and/ "ore i"ortantlyI t'ey "ust +e e?uied
*it' t'e rig't kno*ledge and skills, As (anaging :irector of Proton "entioned/ Ft'e eole
are t'e greatest assetG, So t'ey ro)ide "ore training for t'eir staff,
e% 6uality enhance1ent
Proton *as a*are of t'e nu"erous ?uality co"laints t'at "ay lague t'e +rand, T'ey
started to offer +etter ?uality roducts, T'ey intend to ut t'e +est ractices into e)ery car
t'at rolls out of t'e factory, It is going to +e done )ia training/ 'a)ing "anagers and
suer)isors fre?uently conducting c'ecks/ t'roug' )isuali7ation/ and t'roug' a strong +elief
in ?uality, T'ey also set 'ig'er +enc'"arks, A Kuality I"ro)e"ent Co""ittee 'as +een
tasked *it' coordinating and i"ro)ing all ?uality rogra""ed found to +e inconsistent in
t'e ast, T'eir rocesses and relations'is *it' )endors are also +eing re)ie*ed so t'at all
arties understand t'eir resecti)e roles in ensuring ?uality roducts,
Suly chain net3ork
A co""unity of suliers 'as de)eloed in t'e )icinity of t'e lant co"le% ensuring
effecti)e and efficient logistics net*ork, To date/ "ore t'an -$ "a3or "odules and syste"
suliers are oerating in t'e Proton City ;endor Park, T'e role of suly c'ain "anage"ent
in e%tending EIT fro" an internal aroac' to an e%ternal aroac' 'as +een docu"ented,
4o*e)er/ t'ere is so"e argu"ent offer ad)ice on se)eral co""on itfalls in dealing *it'
suly c'ain in)entory, Pre)iously/ Proton 'as "entioned to reduce t'e -/7$$ t'ird arty
suliers of ra* "aterials and ot'er non1auto"oti)e co"onents and *ill deal directly *it'
t'e source, T'is *ill "ini"i7e transactions t'at do not create any )alue for Proton, T'ey try
to re)ie* roduction rocess to eli"inate any inefficiency in "ano*er and "ac'inery, T'e
reductions in suliers *'ic' *ere o+ser)ed in t'at *ork *ere due to c'anging fro" "ultile
16
to single source suliers, T'e "ain ad)antages as Proton said/ *ere found to +e +etter
?uality/ reduced costs and t'e a+ility to roduce roducts *'ic' are 'ig'ly desira+le in t'e
"arketlace, T'ere *as also t'e +enefit of )ertical integration +ut *it'out actually taking
o)er co"anies, T'e disad)antages *ere seen as t'e cost in)ol)ed/ t'e oenness re?uired +y
t'e de)elo"ent rocess and t'e need to "anage c'ange, T'ere *as also e"'asis on long1
ter" strategy associated *it' de)eloing t'e sulier +ase, Also in Proton #$$& strategic
lanning for #$$&/ t'eir focus is to reduce t'eir "iddle "an of sulier for ra* "aterial,
T'erefore/ t'is strategy is 'eling Proton in reducing t'e roduction cost,
4istri&ution channel de)elo1ent
As a national car co"any and as t'e +ack+one of (alaysiaCs auto"oti)e industry/ Proton
'as +ot' a national and social o+ligation to ensure t'at local distri+utors 'a)e t'e necessary
e%ertise/ resources/ skills/ international accreditation and co"etiti)e edge to take
(alaysiaCs co"onent "anufacturing industry se)eral notc'es u, Proton decided to *ork
closely *it' t'e )endors to ensure continuous i"ro)e"ent in ?uality and efficiency is
i"le"ented, Proton found t'at t'ey "ust foresee t'e inefficiencies *it'in t'eir factories
i"ro)ing once ?uality i"ro)es and e%ect t'is to translate into auto"atic cost
sa)ings, T'ey also found t'at t'ey 'a)e to reduce t'eir )endor and reorgani7e t'e"/ as a
result t'ey started to reduce )endorsC nu"+er and t'eir lan is to 'a)e only #$$ )endors +y
end #$$. instead of 3-$ outlets t'ey 'a)e no*, T'ey also try to initiate a rogra" to
consolidate our dealer net*ork syste", It can 'el t'e" to 'a)e "ore control on t'e" and
reduce t'eir costs, In recent years Proton 'as oened ne* "arkets ,Saudi Ara+ia and Pakistan
are t'e latest to +e enetrated +y Proton/ and t'ey +elie)e t'at *ill start s'o*ing results
*it'in t'e future financial year,
In lig't of t'e increased co"etition and li+eralisation *it'in t'e do"estic auto"oti)e
industry/ raidly c'anging trends and industry c'allenges/ Proton 'as to re1strategi7e 'o* it
s'ould co"ete, It is clear t'at Proton can utilise its li"ited resources "ore efficiently )ia
strategic colla+orations rat'er t'an going it alone, Proton does not 'a)e t'e lu%ury of ti"e to
de)elo t'e necessary range of roducts fro" scratc', Conse?uently/ t'e re)ious oerating
strategy to de)elo "ultile latfor"s in1'ouse 'as to +e re)a"ed to reflect current
17
c'allenges, T'us t'e ursuit of strategic alliances *it' international artners for "utual
+enefit,
0oint )enture strategies
Because of increased co"etition and li+eralisation *it'in t'e do"estic auto"oti)e industry/
raidly c'anging trends and industry c'allenges/ Proton found out t'at it is a need to re1
strategi7e 'o* it s'ould co"ete, It *as clear t'at Proton can utilise its li"ited resources
"ore efficiently )ia strategic colla+orations rat'er t'an going it alone, Proton +elie)es t'at
t'ey do not 'a)e enoug' ti"e to de)elo t'e necessary range of roducts fro" scratc',
Conse?uently/ t'e re)ious oerating strategy to de)elo "ultile latfor"s in1'ouse 'as to
+e re)a"ed to reflect current c'allenges,
In t'e last year/ Proton undertook a re)ie* of its alliance and colla+oration strategy, Clearly/
t'e roosed colla+oration in t'e ast could not "eet t'e secific needs of t'e <rou at t'e
"o"ent, <oing for*ard/ Proton starts to find colla+orati)e strategy t'at is fle%i+le/ +alanced/
"utually +eneficial and secifically tailored for t'e grou re?uire"ents, It focuses on
esta+lis'ing colla+orations ai"ed at ac?uiring t'e rig't tec'nology/ e%ertise and kno*1'o*
to +eco"e a co"etiti)e car "anufacturer glo+ally, As t'ey "entioned t'ese colla+orations
are also for t'e urose of ac?uiring roducts/ *'ere aroriate/ to oti"ise caacity usage
and e)en for gaining "arket access,
Proton could concei)a+ly esta+lis' alliances and colla+orations *it' different artners for
different uroses, It is in line *it' t'is ne* 'iloso'y t'at on 3 0e+ruary #$$&/ Proton
entered into a (e"orandu" of >nderstanding *it' Eaanese auto"aker/ (itsu+is'i (otor
Cororation 5F(itsu+is'iG6, T'e colla+oration *it' (itsu+is'i is art of t'e Product Alliance
strategy and t'ey +elie)e it can 'el Proton to ?uickly de)elo additional roducts and
tec'nical e%ertise in secific areas, In addition to t'e agree"ent *it' (itsu+is'i/ Proton 'ad
also entered into a (e"orandu" of >nderstanding *it' C'ery Auto"o+ile Co"any
Ai"ited 5FC'eryG6 on #3 (ay #$$&, T'e +usiness arrange"ent *it' C'ery ro)ides t'e
oortunity for +ot' co"anies to *ork toget'er/ a"ongst ot'ers/ to co1source "aterials and
co"onents, Proton )ia Aotus 2ngineering (alaysia/ 'ad also entered into a (e"orandu" of
>nderstanding *it' Ein'ua1Doung"an Auto"o+ile Ai"ited 5FEin'ua1Doung"anG6 on #3
18
(ay #$$&, T'e colla+oration *it' Ein'ua1Doung"an is articularly significant fro" a
+usiness standoint as it ro)ides Proton *it' t'e oortunity to i"ro)e its re)enue
generating caa+ilities fro" t'e licensing of so"e of t'e <rouCs tec'nologies, (ore
i"ortantly/ t'is colla+oration *ill also assist in introducing ProtonCs roducts to C'ina/ one
of t'e "ost )i+rant auto"oti)e "arkets in t'e *orld,
Reco11endation
As for t'e reco""endation/ 'ere are t'e fe* suggestion t'at can actually i"ro)e t'e
oerations in Proton,
a% /u1an Resources 4e)elo1ent
4u"an resource de)elo"ent re"ained t'e key riority in e?uiing e"loyees *it'
kno*ledge and skills to face t'e c'allenges a'ead in an increasingly kno*ledge +ased
econo"y, T'erefore/ *e s'ould focus on t'is area, 2)ery e"loyee/ reresentati)e and e)en
t'e +usiness artners "ust not only understand *'at is re?uired of t'e" and 'a)e t'e
aroriate resources at 'and/ "ore i"ortantlyI t'ey "ust +e e?uied *it' t'e rig't
kno*ledge and skills, :ue to t'at/ *e *ould like introducing and i"le"enting an internal as
*ell as t'e e%ternal training rogra""ed *'ic' conducted for all e"loyees to de)elo and
en'ance t'eir co"etencies in infor"ation co""unications tec'nology and custo"er
ser)ice, (oreo)er/ *e *ant to 'a)e a good relations'i *it' t'eir staffs 5custo"ers and car
distri+ution centre6, (eaning to say/ *e *ant to treat t'eir staff like an a"+assador to gat'er
feed+ack fro" custo"ers a+out *'at custo"er *ant, 4a)ing a good relations'i *ill
"oti)ate e)ery e"loyee to increase t'e roducti)ity, In addition/ *e *ould like in still t'e
+rand o*ners'i of national car in t'eir "ind set t'roug'out t'e lengt' and +readt' of t'e
organi7ation if t'ey struggle to i"ro)e t'e"sel)es,
19
&% Product 4e)elo1ent and 4esign
:r,Badrul/ 4ead of Strategic (anage"ent of Proton/ 'e says t'at Proton no* is roducing
)e'icles t'at are not only e%citing/ of a di)erse range and "odel/ +ut also t'ose t'at are in line
*it' *'at t'e "arket *ants and of +etter and 'ig'er ?uality, T'erefore/ t'ey can de)elo ne*
cars of its o*n and colla+oration *it' ot'er car "akers/ to relace so"e of ProtonCs e%isting
"odels *'ic' 'a)e +een on t'e road for too long, In ter" of tec'nological ad)ance/ Proton
'as t'e e%ertise and it is slig'tly +etter t'an ot'er de)eloing country like in Indonesia/
T'ailand and (yan"ar,
In "o)ing for*ard/ *e suggested t'e co"any s'ould e"'asi7e on t'e electronic +usiness
alications like Syste"s Alications Progra""ed 5SAP6 *'ic' 'as +een i"le"ent +y
4onda, T'is syste" offers "ore functionality to cater for future syste" integration *it' ot'er
syste"s, Wit' t'e increasing gro*t' in t'e (alaysian internet oulation/ *e also suggested
to for" a tea" to introduce electronic co""erce to en'ance deli)ery c'annels,
c% Cost .1ro)e1ents
In t'e oeration "anage"ent ersecti)e/ cost i"ro)e"ents or cost sa)ings do not
necessarily translate into lo*er or c'eaer ?uality roducts and ser)ices, Instead/
i"ro)e"ents focus on t'e entire net*orkCs a+ility to oerate in a "ore roducti)e and
efficient "anner t'us furt'er reducing *astage or unnecessary costs, Re)ie* t'e nu"+er of
outlets *e 'a)e against t'e )olu"e *e *ant to us' and *ill initiate a rogra""ed to
consolidate t'e dealer of t'e net*ork syste", T'is *ill translate into +etter resonse and cost
efficiencies, I"ro)e"ents in ?uality and factory efficiencies *ill furt'er contri+ute to cost
sa)ings, As a national car co"any and as t'e +ack+one of (alaysiaCs auto"oti)e industry/
Proton 'as +ot' a national and social o+ligation to ensure t'at local )endors 'a)e t'e
necessary e%ertise/ resources/ skills/ international accreditation and co"etiti)e edge to take
(alaysiaCs co"onent "anufacturing industry se)eral notc'es u, We t'ink t'e co"any
s'ould *ork closely *it' t'e )endors to ensure continuous i"ro)e"ent in ?uality and
efficiency is i"le"ented, As a "anufacturer/ *e "ust re)ie* t'at )endors not 3ust as t'e
+usiness artnersI Proton needs one anot'er to sur)i)e, <oing for*ard/ Proton "ust allocate
t'e resources and *ork 'and1in1'and *it' t'eir )endors to i"ro)e t'e situation +y reducing
any inefficiencies, We suggest t'at Proton "ust foresee t'e inefficiencies *it'in t'eir
20
factories i"ro)ing once ?uality i"ro)es and e%ect t'is to translate into auto"atic cost
sa)ings,
Besides t'at/ *e *ould like to address so"e argu"ent on t'e inefficiency *it'in t'e t*o
lants 5S'a' Ala" Plant and Tan3ung (ali" Plant6, We *ould so"e'o* tend to roosed of
closing one lant and e%ect to translate into auto"atic cost sa)ings, We *ill also re)ie* t'e
entire suly c'ain fro" t'e co"onents and roduction/ to sales and "arketing, Anot'er
t'ing *e *ould like to raise u is a+out t'e inefficiencies undou+tedly e%ist, (any )endors
do not rise to t'e le)el of ?uality *'ic' "ay result in "any re3ections *'ic' directly i"act
on cost, Anot'er ele"ent on cost is a+out t'e after sales ser)ice acti)ities *'ic' *e looks in
ter" of deli)ery, T'is is )ery i"ortant oint to ensure custo"er loyalty and trust, We *ould
introduce t'e EIT syste" as an indicator to con)ince t'e custo"er in an efficient "anner, If
Proton kees delaying t'e deli)ery/ it results in increasing in costs like transortation cost/
*are'ousing cost and also t'e oerating cost, Ot'er initiati)es 'ere *ill also include creating
synergies in logistics/ distri+ution/ sare1arts and training, We "ust +ear in "ind t'at Proton
is no longer in t'e +usiness of 3ust "anufacturing and selling cars/ +ut "ust/ 'o*e)er/
undertake "easures to en'ance its re/ in and ost1custo"er ser)ice efforts,
d% Lack of 1arket research
We t'ink anot'er ro+le" t'at PROTON 'as to sol)e it/ is a+out "arket researc', >sually
t'ey do not 'a)e enoug' and accurate esti"ation a+out "arket and its direction, T'ey created
ne* car *it'out attention to custo"ers need, It is o+)ious t'at t'ey offered "odels t'at
catered to li"ited "arket, Aike Satria Ne* or <2N# *'ic' *ere for nic'e custo"ers, T'ey
'a)e to roduce t'at catered to a +roader "arket, So t'ey need to 'a)e enoug' infor"ation
a+out "arket and its needs, W'it recise "arket researc' t'ey can reac' t'is ai",
e% Strategic Alliance and Partnershi
T'is strong strategic alliance 'as resulted in a *in1*in situation/ +ringing Proton closer
to*ards it is goal of +eco"ing t'e king of co"act cars in not only (alaysia +ut t'e region,
It lans to ra" u roduction at Cikarang/ Indonesia lant +y #8B in rearation for ne*
"odels and increased e%ort, In ti"es of rising oil rices/ co"act cars are gaining oularity
+ecause of t'e ercetion t'at t'ey are "ore fuel efficient/ t'oug' t'is is not al*ays t'e
case, We t'ink t'e "ost ro+le" t'at need to figure out is t'is area, Again/ as a national car/
Proton 'as a lot of o+3ecti)es to fulfil, 4o*e)er/ to fulfil t'e need of t'e consu"er lifestyle
21
re?uest for (P; and S>; tye of car/ Proton needs to find a suita+le artner *'o is already
a +ig layer in t'e industry, Since/ it is t'e fastest gro*ing "arket seg"ent in (alaysia/
t'erefore/ Proton needs to co"ete as *ell fulfil t'e needs of consu"er, T'e one otion *e
'a)e of entering t'is seg"ent is to engage strategic artners'is and alliances, 4ere/ a
strategic alliance "ay not necessarily in)ol)e e?uity articiation, T'ere are "any ot'er
for"s of cooeration including t'e s'aring of resources, In todayCs auto industry/ it is
co""on for t*o to t'ree auto "anufacturers to colla+orate to sa)e on cost/ ti"e and
de)elo"ent e%enditure and in t'e rocess o+tain a larger )olu"e, Once *e identify *'o
'as t'ese attracti)e roducts/ it is a+out courting t'e" to see if t'ey are *illing to *ork *it'
us in a *in1*in situation, T'e ro+le"s t'at can +e occur include *rongly c'oose t'e artner,
Secondly/ t'e artner is un*illingness to s'are t'e tec'nology, Besides t'at/ t'e strategic
alliance only "ay +e successful if t'ey a+le to resent toget'er in a "arket,
Conclusion
As a conclusion/ *e ackno*ledge t'at PROTON needs to regain its sales and "arket s'are as
t'e leading car +rand in t'e do"estic "arket/ "ainly t'roug' t'e consolidated effort on sales
oerations and ?uality i"ro)e"ent, T'e e%ort re)enue and +rand resence a+road "ust
also +e increased, On to of it/ custo"er satisfaction is an i"ortant ele"ent *'ere )arious
initiati)es *ill +e rolled out to "ake t'e e%erience of o*ning a PROTON/ a satisfying one,
Additionally/ i"ro)e"ents on "anufacturing oerations/ roduction syste"s and urc'asing
rocessesI as *ell as t'e consolidation of )endors/ s'all deli)er a +etter financial osition for
PROTON, At t'e sa"e ti"e/ *e *ill also e%lore strategic colla+orations and alliances/
*'ic' *ill for" t'e +ase for PROTONCs future roducts/ i"ro)ed ?uality and oerational
efficiency, We *ill also i"le"ent a "ore structured 'u"an caital de)elo"ent
rogra""ed *it' an e"'asis on tec'nical training and e%osure to t'e *orldCs +est
ractices/ and/ conduct t'is on an ongoing +asis, In recognition of t'e fact t'at t'e eole are
t'e co"anyCs key asset/ *e *ill deloy e%erienced and skilled ersonnel to key suort
functions to strengt'en our co"etiti)e edge in our "arkets,
22
Aendi# 7 Ta&le $
Concet 4e)elo1ent
Concet Aro)al
Concet 0or"ulation Idea Sketc'es Scale (odel
Rendering :igitalH (anual -J3 Scale "odel "illing @ "anual
4esign 4e)elo1ent
(odel Aro)al (odel 0i%
:igitali7ing Surface (odelling -J- scale Clay (odel
5"illing6
-J- scale Clay (odel
5"illing6
Surface
Refine"ent Prearation
AAIAS :ata @ CATIA :ata
Prearation
0inis'ing @ Painting

Surface @ Part C'ecking
Tec'nical 0HS
2ngineering study
Body @ installation
23
Engineering 8 Testing 4e)eloe1ent
(aster (odel
Production Surface Prototying Co"lete Testing 0inal Production Surface
B Class CATIA Surface
(aking
;e'icle Build u Co"onent @ co"lete
;e'icle ;alidation
A Class :ata Surface
(aking
Aayout :ra*ing Part :ra*ing
2ngineering :ata Production :ata Production Prearation
24
25
References
Book
4ei7er/ E, and Render/ B, #$$4, $perations Mana/ement 0
th
!dition, Pearson Prentice 4allJ
Singaore,
Annual Reort for Proton 5#$$#1#$$76
Case Study and Research Paer
I"/ E,4, and Aee/ S,(, -!.!, Implementation of Just-In-Time Systems in US
Manufacturing Firms, International Eournal of Oerations and Production (anage"ent/
;ol, ! No, -/ 81-4,
Si"son/ (,/ Sykes/ <, and A+dulla'/ A, -!!., Case StudyJ Transitory JIT at Proton Cars
Malaysia, International Eournal of P'ysical :istri+ution and Aogistics (anage"ent/ ;ol, #.
No, #/ , -#-1-4#, (CB >ni)ersity Press,
Naug'ton/ =, 5#$-46, (ost <en D Consu"ers Plan to Buy 4ig'1Tec' Cars/ Sur)ey Says,
Retrie)ed fro" 'ttJHH***,+loo"+erg,co"Hne*sH#$-41$-1-&H"ost1gen1y1consu"ers1
lan1to1+uy1'ig'1tec'1cars1sur)ey1s'o*s,'t"l, :ate AccessedJ -. Aril #$-4,
Proton Cars >= 5#$-46, A+out >s1Background, Retrie)ed fro" 'ttJHH***,roton,co,ukH
a+outH+ackground,', :ate AccessedJ -. Aril #$-4,
PROTON 4oldings Ber'ad 5#$-46, A+out14istory, Retrie)ed fro" 'ttJHHcororate,roton,
co"HenHA+outHBrandH4istory,as%, :ate AccessedJ -. Aril #$-4,
WikiSWOT 5#$-46, Proton SWOT Analysis, Retrie)ed fro" 'ttJHH***,*ikis*ot,co"H
SWOTH4NHroton,'t"l, :ate AccessedJ -. Aril #$-4,
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