ACT4131

MANAGEMENT ACCOUNTING III

INDUSTRY VISIT REPORT
ZELLECO ENGINEERING SDN BHD
(29th SEPTEMBER 2016)

NAME
MATRIC
NUMBER
LECTURER

MOHAMMAD HANIF BIN MD ALI

173425
DR. NOR AZIAH BINTI ABU KASIM

INTRODUCTION
Industrial visit was carried out at Zelleco Engineering Sdn Bhd on 29th September 2016
especially for semester seven students that taking Management Accounting III course.
The main objective behind the visit was to make student aware about how various
activities related to management accounting practice are carried out in company and
give exposure to student about theory that learned in class with the real business
situation. I along with other 80 students left for visit at 7.30 a.m. and took about two
hours to cover the distance. The company is located in Rawang Integrated Industrial Park
in Rawang. As soon as we reached company we were guided by general manager, Mr.
Wan Jamaludin bin Wan Abdul Malik to canteen where a orientation of company was
given by him about history and how company was established. After introduction all
students were divided in three groups according to our class and were headed by one
staff of company who helped them to understand how production is carried out in
company and how company reach their customer. The staff bring us to the factory to
have some look about the production process are conducted in that company. After the
visit in the factory, we were back to cafeteria to have lunch. After lunch, we were given
presentation by Mr. Mokhtar about accounting process that conducted by the company.
Company Background
Zelleco Engineering Sdn. Bhd. known as ZELLECO an established engineering company
started operations in 1994. It specializes in all range steel fabrication works for Power,
Oil & Gas, Telecommunication and Building industries. Its 8.5 acres of fabrication yard is
strategically located at the Rawang Integrated Industrial Park, Selangor, beside the NSE
(North South Expressway). With its current paid up at RM 17.1 million (USD4.5 million),
ZELLECO has an excellent track record and has successfully participated in major
projects

in

Malaysia

and

overseas

especially

in

Electrical

Power

Industry,

Telecommunication Industry and General Building Structures. The plant is well equipped
with machineries with Computer Numerically Controlled (CNC) types can efficiently
undertake any fabrication structure of steel angles, beams, channels, sections, plates
and pipes. The plant is equally equipped with lifting equipments up to 30 MT to support
the fabrication activities. The Engineering and Designs are using the reputable software
enable ZELLECO to offer wider products range. Its production capacity is 24,000 MT
(maximum depending on the type of structures) steel output per annum, making
ZELLECO as one of the largest steel fabricator in Malaysia.

Finding
From the explanation, the company production activity is project-based where company
get project by tendering with Tenaga Nasional Berhad. The main product of the company
is telecommunication tower and they need to get the tender for making and assembling
it. To prepare the tender documents, The contract department need cooperate with
accounting department to prepare the budget. According to them, budget of the project
is prepare based on the weight of raw material use in that project and other costs
related are also based on that.
In class, I learned that, for the big item production, the production is done according to
flow of process. But in the factory of this company, the flow is not too be seen. The
company should improve their arrangement of their factory to make its more easy if it
has flow process system.
In the factory, I find a lot signboard of safety precautions that need to follow by all staffs
and workers of the factory likes no smoking area and need to wear safety helmet in the
factory. But from my observation, most of the workers were not wearing safety helmet
and also a lots of cigarette butts on the floor in the factory. That means that, the safety
issue were taking granted by some of workers in the factory even though management
was rule some procedure that need to handle the staffs and workers. For my
suggestions, the manager need to make the timely visit to make sure the workers do
right things and something bad can be prevent.
The general told us that the company still use the old method to produce tower compare
to new technology in the industry. This is because the cost to get the latest technology is
higher. Even though they using old technology, the still compete in the market because
their price is low then other competitors and the also have good relation with customers.
They offer after sale services to customer which is they have one reworks team to repair
back the product if them not meet the specifications of the customers.
The production of main product of the company is sessional. They not make the tower
through the year but only make if have request from clients. So, in the time they do not
have tower construction, they just do the general work likes making building structure
frames, roof trusses and steel bridges.
Conclusion

By observing all the given things we can conclude that the company is of big scale
industry. The company that tender from GLC company likes Tenaga Nasional Berhad and
Petronas

other

than

well-known

telecommunications

company

like

Digi

Telecommunications. The company also exports the products outside the countries like
Australia. From this industry visit, it help me gain hands-on experience of how industry
operations are executed. Other than that, Industry visits bridge the gap between
theoretical training and practical learning in a real-life environment. This Industry visits
provide opportunity to me for active/interactive learning experiences in-class as well
outside the classroom environment. This visit is meet my expectations because its give
more exposure to me about production and management besides the theoretical studies
in class.