Future of HRD in Manufacturing Sector of Malaysia

Our Only Competative Edge is to Learn Faster than Our Competitors

The Future Possibilities of HRD in Electronic Sector Laurence Yap M.A. (Uni. Malaya) [Senior Manager] Human Resource Development

How can HRD Contributes to Electronics Industries ?

HRD is the integrated use of training and learning , career development , and organization development to improve individual and organizational effectiveness Patrician McLaren

HRD: New Playing Field US: Chief Learning Officer

28%
MALAYSIA’S HRDF: An Evaluation of Its Effects on Training and Productivity Hong Tan Lead Economist, World Bank Institute

WIIFM?
Training and HR Profession – Broaden your understanding of training, OD and Career Development
Functional Managers – Propose your HR Department to experiment these activities
Senior Managers – Recruit HR/Training personnel who can carry out these activities

Big Picture
For Malaysia to compete with the world, HRD can facilitate organization performance and productivity
For US based MNC, Training is an essential part of Critical Success Factors

Agenda
Manufacturing and Semiconductor in
Malaysia
2. Current Status of HRD in Manufacturing
3. Training Trends in US and Malaysia
4. Future Possibilities of HRD
Training, OD and Career Development
5. After Thought: PSMB and HRD Network

I. Manufacturing in Malaysia Background

Background
The electronics industry is the leading sector in Malaysia's manufacturing sector, contributing significantly o the country's manufacturing sector
Output
29.3% or RM 167.2 Billion
Employment
28.8% or 296,870
29.3%

Malaysia's Electronics industry:
a. Electronic Components
(Semiconductor)
38.4 % Electronics export 2008
58.7% FDI 2008
b. Consumer
c. Electrical

Semiconductor Sector
Semiconductor devices, passive components, printed circuits and other electronic components such as media, substrates and connectors.
The main export items were:
Digital monolithic ICs (47.3%)
Hybrid ICs (15.2%)
Non-digital monolithic ICs(11.8%)

Semiconductor History
The semiconductor industry started in 1970's when the government then embarked on a strategy to attract export-oriented industries into Malaysia .
From mere assembly and testing operations such as metal-cam packages, p-dip packages, and dip packages, the industry has now moved into higher value-added activities including wafer fabrication and IC design .

IC testing and packaging companies
Currently, the IC testing and packaging companies in Malaysia are undertaking more complex packages, to cater for demand which requires faster, smaller and high computing power and multi functional chips .
Source: www.miti.gov.my

Packages
Organic land grid array packages (OLGA packages);
ASICs;
Flip chips
Ball grid array (BGA)
Wafer level for IC integration;
System on Chip (SoC);
System in package (SiP); and
Multiplayer packages (MLP)

R&D
Some semiconductor companies, especially MNCs have undertaken R&D activities in Malaysia , either in-house, jointly with local universities (UKM, USM, UTAM and UM) or by outsourcing to local R&D companies.
Motorola – 1000 R&D engineers!

Areas of R&D
Process and materials technologies;
Advanced flip chip packaging development;
RF module;
Advanced test technologies development;
Total packaging;
Board design; and
Simulation capabilities.
(Carsem Technology Center 2007)

In Operations
To date, there are 63 companies in operation, producing semiconductor services or undertaking semiconductor related activities. Among these companies are:
Wafer fabrication – 3 companies (MIMOS, 1 st Silicon and Silterra)
IC design – 20 companies (mostly with MSC status)
IC testing & packaging companies – 26 companies (8 Malaysian – owned)
Other semiconductor devices – 14 companies

II. Current Status of HRD Manufacturing Sector

Research
DESIRABILITY AND EXISTENCE OF HRD STRUCTURE IN MALAYSIAN MANUFACTURING FIRMS
Haslinda ABDULLAH, UPM

Methods
The questionnaire was sent to all 2,135 manufacturing firms listed under
the Federal Malaysian Manufacturers (FMM), with a response rate of 16.5%.
A sample of 50 HR managers was selected to participate in the interviews.

HRD in Manufacturing Firms
Human resource development (HRD) in manufacturing firms in Malaysia is rapidly gaining importance
the Human Resources Development Act, 1992 has been implemented
1% levy for manufacturing companies

1. Separate HRD Section
100% LE vs 28,9% SMI
“ Our employees’ training and development is really important to our top management, our business and productivity. We believe that in order to achieve business success, we must have well trained employees, which would be difficult without a separate HRD function…….”
(HR & Corporate Relations Director; Food, Beverage & Edible Oils; LSI).

2. HRD Section: 8 years average
Most of the HRD sections were first established around the mid 1990s (HRDF Act 1992)
The minimum number of years for which these sections had been in operation was two years and the maximum was 20, with an average of 8 years.

3. Labeling: Training Dept
“ HRD” departments (18.2 %) - Carsem
“ Training” departments (55%) – Komag, Mysin
“ Learning and Development” (15.9 percent)
- Pfizer
“ Employee Development and Placement and Talent Development Unit” (6.8 percent).

Labeling and reflection
HRD is merely about the provision of training rather than HRD (Training, OD and Career Dev)

Comments
“ I have been in this field for more than 10 years. I have seen many changes in the terms, from ‘training’ to ‘HRD’ and now some fancy names……’Capital Development?’…However, the basic concept is merely training. Therefore, whatever term is being used, it will mean the same…’training!’
(HR & Administration Manager; Concrete & Cement; LSI).

Lack of HRD Skills
It can be deduced that HRD practice in the manufacturing firms in Malaysia is still not very advanced in its development.
HRD practitioners may require specialized education and training in HRD in order to carry out structured and systematic HRD

4. HRD Reporting Structure
45.4% report to the Human Resource Director
41.0 % CEO and GMs
13.6 % Board of Directors and the HR Manager

5. Fewer Training Centers
45.4 percent of Large Enterprise has Training Centers

III Training Trends in US The Impact of Economy Downturn

Impact: Global Financial Crisis

Bersin Associates 2008 Research July-August

Training Budget
U.S. Training Groups Cut Budgets
Fell 11 percent over the past year – from
$1,202 per learner in 2007 to $1,075 in 2008.
U.S. Training Groups Cut Staffing
The training staff ratios
SMI: from 7.0 to 4.9 staff for every 1,000 learners.
LSI: from 5.1 to 3.4 staff-per-thousand.

Comments
Many electronics tied up with US market
Expected cut budget and staff (Penang vs KL)
Reduce cut HRDF levy 1% to 0.5% for the next 24 months
Government should subsidized 0.5%
Competitive market needs upgrading of skills

Training Hours
The average number of formal training hours dropped from 25 hours per learner in 2007 to 17.2 hours in 2008

Type of Programs (1) Basic
Funding moved away from IT and leadership development and toward programs that are mandatory program , on meeting compliance requirements and on improving skills that are highly specific to a learner’s job.

Type of Programs (2) Net & Coaching
Coaching programs have become especially popular and are now incorporated into 30 percent of all training programs.
Group and peer-to-peer collaboration are being facilitated through social networking tools , such as communities of practice , wikis and blogs . In fact, the use of communities of practice doubled from 2007 to 2008, making this the fastest-growing segment of the learning tools market today.

Types of Program (3) E-Learning
Combined with self-study and e-learning , the total amount of online training dropped from
30 % of training hours in 2007 to
24 %in 2008 .
Cost Reduction: learning technology, content and internal staffing

| Our Challenges: The World Is Changing |

Future Possibilities of HRD

IV Future Possibilities of HRD Training & Learning Organization Development Career Development

A. Training and Learning
Creative delivery of Training
Nano Training, Mobile Learning
Management System
E-Learning
Corporate Learning Strategies
Alignment to Department Needs
YB approaches, Vendor support
Learning Culture
Benchmarking, Shared Learning (Book, Best Practice), Internet research, Books and Magazines

Nano Training
Short Learning ( 1 hour)
Lunch, Department Meeting, Coffee Break

Learning Management Sys

Corporate Learning Strategies Focus on Performance Solution Align to Corporate Objectives Broadening Learning Activities Building Employee Branding Invest in Strategic Learning Leverage on our intellectual capital Partnership with Different Business Unit Cultivate Values and Positive Culture Speed up knowledge transfer

High Performance Model Learning: change Collaborating: speed Teaching: Growth Learning Informal learning formal learning Teaching Management becomes trainers Groom internal employees as trainers Collaborating Network to customers and vendors Cross Function Team Community of Practices

Business Impact
YB
Purchasing
HR integration
Lean Manufacturing
Marketing, Sales and Marketing Services

Mobile Learning

Second Life

Coaching Maxis iLearning Lab

Benchmarking
Kobe about SDWT
Maxis, Digi, Motorola, Pfizer and Sime Darby

Maxis: Academy Center

Maxis Academy Center

Knowledge Network HRD Best Practice Sharing May 2008 Maxis

Knowledge Network HRD Best Practice Sharing 23 rd May 2009 Wisma PSMB

Presentation by Participants

3 rd Presentation by Hasrul

Sharing by Participants

Fabien from Pfizer

PSMB: Knowledge Network

Facilitation by KC Lim

PSMB Staff with 2 nd Speaker Abd Lin

Internet research
Abundance of useful information
Control for fear of abuse
Free software Redes sociales

Tools for Collaboration
Social Networks
Facebook, MySpace
Flickr
YouTube
Blogs
Wiki’s
Podcasts

Organization Development

B. Organization Development
Organization Effectiveness
Strategy Planning, Organization Design, Team Collaboration, Facilitation Change
Cultural Development
Values, Leadership Development, Positive Mindset
Work Process Interventions
Lean Manufacturing, TQM’s Small Group Activities

Strategy Planning (Direction)
Facilitate the direction of organization
MD Team, Managers and Department
Tools: Structure Tree, Balance Scorecard
Facilitate with different Business Units
Review quarterly

Reorganization

Several Types of Reorganization 1. Streamlining of Functions Consolidation 2. Reporting Levels improve communication 3. Span of control expand responsibilities 4. Others

Notes
Seek First to Understand
Inquires vs advocacies.
Win-Win Solution Look at issues together – Pros , Cons and New Possibilities Pros -------------Cons ---------- New Possibilities
Team work spirit – if one of the division suffer, the rest will suffer too

Types of Reorganization
Streamlining Functions
HRD + HR + ESH = Human Capital Department

Reduce Reporting Levels

Span of control

Team Bonding and Reorg
Sharing by Leader
Know Your Team
STRENGTHS
SUCCESSES
Departmental Strengths & Desired Development
Future Possibilities
Reorganization
Summary

Sharing by Leader
Hopes
Challenges
Expectation

Appreciation of Strengths

Future Possibilities

Facilitation
Make ease with conversation
Post Mortem (Mydin)
Went well/Improvement/Next
Appreciative Inquiry (Pfizer)
Discover/Dream/Design/Destiny
Mental Rehearsal (Mydin, Carsem)
Review/Job Function/Time Flow/Rehearsal

Lean Manufacturing

“ The most dangerous kind of waste is the waste we do not recognize ” ~ Shigeo Shingo 新郷重夫 Toyota Production System (1909 – 1990 ) Process – Waste = Extra Profit

AL Model: PDCA
Address Organization Concerns
Engage Teams and select projects
A. Plan C. Check D. Act B. Do
Provide Training
Carry out projects
Review results
Proliferate to other areas

Jeffrey Liker

7s McKinsey

The Training Approach The Learn – Do – Mentoring Approach CLASS ROOM LECTURES Lecture on Lean for graduate IE students (Asia Institute of Technology, Bangkok. Faculty of Industrial Engineering) Class Room Lecture during Lean Master training (MMI JB)

HANDS-ON SIMULATIONS & ACTIVITIES Hands-On practical simulation-Quick Changeover (Seagate, Wuxi) Hands-On Value Stream mapping session (MMI Yixing, China)

HANDS-ON SHOP FLOOR ACTIVITIES Shop-Floor exercises (NSK, KL) Shop-Floor exercises Video-Shooting (NSK, KL)

Lean Consultants
The AMC founders & principal consultants are:
Ramesh Victor Rajathavavaram
Lean Master (USA)
Soundrarajan Pitchay
Lean Master (USA)
URL: http://www.adv-mc.com
Email: rameshvictor@adv-mc.com

Wave 1
Lean overview
Value Stream Mapping
Set-up Reduction
5S
Change Management
Wave 2
Visual Management
Standardized Work
Error Proofing
Handling Resistance
LEAN IMPLEMENTATION IN CARSEM
Factory will be more Visual & Organize
Reduced set-up time
Factory will have less error
Work will be more standardize/repeatable
Wave 3
Material Control (Kanban)
Total Production Mgt (TPM)
Overall Engineering Efficiency (OEE)
Performance Measurement
Introduce pull mechanism through Kanban
Working with lower level of inventory
Improve equipment OEE
Wave 4
Theory of constraints
Lay-out optimization
IT Tools
Lean Diagnostics
Further strengthen the whole Value Stream Map after the 3 waves project.
Lean Masters have advanced diagnostic ability for continuous improvement on their own VSM (Value Stream Mapping)
Lean lay-out

Think Global Managerial Skills

100000 Fresh Graduates

Future Managerial Skills
What are the skills and competencies of future Managers in Manufacturing?
Positive Mindset
People Skills
Facilitation Process
Learning and innovative (Informal Learning)
Business Acumen (MBA)

Growth of HRD Shared Learning Team Upgrade Training function to HRD

Role of PSMB Consulting, Resource Center & HRD Functions

Summary
Manufacturing and Semiconductor in
Malaysia
2. Current Status of HRD in Manufacturing
3. Training Trends in US and Malaysia
4. Future Possibilities of HRD
Training, OD and Career Development
After Thought:
HRD/Training, PSMB

[KL. PG. Singapore. Ipoh] 13 Years (1993-2009) Performance Consulting Training & Development Organization Development HRD Career

Employment Computer Disk Drive US / 1997-2002 Senior Executive Recruitment Outsourcing US / 2006 Training Manager Global Pharmaceutical US / 2006 Learning Manager (Mal & Singapore) Manufacturing (Assembly and Test) Malaysia MNC / 2007 HRD Senior Manager

Higher Education B.A (Hons.), M.A Social Science Fellowship Award 1990-1993 Management European History Malaysia Development Asian Politics Chinese Studies Indian Culture Japanese Religious

OD, Training and Education www.linkedin.com/laurnceyap Corporate Learning www.journeyofhrd.blogspot.com HRD Best Practice Malaysia www.facebook.com Chief Learning Officer Network network.clomedia.com/profile/LaurenceYap Contact Network

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Future of HRD in Manufacturing Sector of Malaysia

by Laurence Yap on Aug 02, 2009

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