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a) Company Profile

Vision

To become a progressive and advanced company in the product manufacturing sector and

being able to compete in an increasingly challenging market.

Mission

To make high quality products and combined with engineering technology and innovative to

develop and repairs the products by default with customers wish. Besides, Generating

lucrative income through product innovation.

Company Details

Respack Manufacturing Sdn. Bhd. is one of the leading manufacturers of cast stretch film in

terms of advancement in technology, and uncompromising quality. Serving customers from

all across Asia, Australasia and Europe, Respack Manufacturing has steadily grown to

become a reputable choice amongst consumers and purchasers of flexible plastic packaging

products. Our 320,000sqft, purpose built manufacturing plant located at Gurun Industrial

Park, Malaysia, is also in close proximity to Penang Port, which enables us to derive

logistical cost benefits. This also facilitates in speedy importation and transportation of raw

materials to our manufacturing plant with quick turnaround time. With our on-going

expansion, we are expected to run at a full capacity of 36,000 tonnes in 2017. Rated as one of

the fastest growing manufacturers by our suppliers, we will continue to expand and improve

our products and services to meet the increased global demands through continuous efforts in

enhance.
Product Category

i) Stretch Film

At room temperature, the stretch film is stretched manually and forcibly to develop the

deformation stress for wrapping up goods, which is convenient for transportation and storage.

It is one of the most popular packaged forms in the world, and is widely applicable to single

or pallet package of chemical materials, fertilizers, food, mechanical and electrical products

and light textile products.

Advantages are the stretch package is conducive to saving raw material and energy by

compared with shrink package, with no need for shrink packaging machine. With high

strength and large elastic force, it is available for goods in any geometrical shape, can prevent

damaging the goods packed, and has excellent protection from breaking, rain, dust and

burglary. High performance resin and accessories are utilized to meet demands of different

customers to the largest extent. One-side adhesive product is available, which is helpful to

reduction of noise in stretch process, and of dust and sand in transportation and storage

process.

b) Maintenance Policy:

The technical services departments of company is responsible for managing the maintenance

function in the most cost effective manner possible while maximizing the useful life of

machines and components while striving to provide the best service to customer.
Maintenance Organization of company chart
c) Material control (inventory)

An effective inventory control, or otherwise known as stock control, is an integral part of any

packaging or manufacturing operation. The prime purpose of an inventory control system is

to track huge quantities of merchandise being stored in the warehouse. In stretch film

packaging, unitizing products facilitates inventory control given that large unitized loads, as

opposed to small loads can be categorized, counted, and managed with ease. Stretch films are

designed to counter specific packaging requirements that more general-purpose packaging

solutions cannot provide including warehouse color-coding and dating inventory.

Raw Materials

Raw materials are items that come in from your suppliers for the production of components,

subassemblies or finished products. Some items may be partially assembled, but the supplier

or the distributor considers it as a finished good. Such items include labels, shippers,

adhesives needed in the packaging operation.

Work in Progress

This kind of inventory is comprised of products including materials, components assemblies

and subassemblies waiting or currently being processed within the system.


Finished Goods

These inventory goods can be controlled in your warehouse or by the distributor. They are

shippable inventories, mostly ready for delivery to wholesalers, retailers, or consumers.

Service Inventory

While managing distribution inventory can be deemed as hard, service inventory is tougher.

Vital to business, service inventory needs to be expertly managed. Some global mandates

such as global regulations and recycling mandates need to be managed effectively.

Transit Inventory

Transit inventories arise from the need to transport goods from one point to another. Also

referred to as pipeline inventory, transportation inventory accounts for somewhere between

5% and 20% of a companys revenue. It's often overlooked because it does not sit in the

warehouse but happens to be sitting in a ship, plane, truck.

d) Safety procedures on project

Safety procedures cover specific safety activities. These procedures outline the steps to be

taken to implement a policy. Some procedures are specific to a job or task while others are

general descriptions of how to implement a policy. Procedures exist for most aspects of a job

whether they are formalized and written down or not. To be effective, safety procedures

should be communicated in written and verbal form and emphasized by showing the

employee the procedure and then having employee demonstrate to assure proper

understanding of the procedure , how to report a hazard, step-by-step examples of how to

safely complete specific work tasks, basic safety rules, personal protective equipment,
chemical usage, hazard communication, specific equipment use and safe operation, sharps

use and disposal procedures, emergency plans.

Safety Rules

Safety rules list the specific activities to do or avoid for completing the job effectively and

safely. Important things to keep in mind regarding safety rules include no single list of safety

rules is adequate for all types of businesses, develop your own list of safety rules based upon

standard industry practices and your own accident experience, dont rely solely on generic

lists or examples from other employers, all rules need to be completely and clearly

communicated to management and staff alike, all rules should be strictly and consistently

enforced. If written safety rules are not consistently and equitable enforced, the employers

actual practices outside the written rules may create a legal liability if challenged in a legal or

regulatory dispute and follow the manufacturers recommendations when creating rules for

the operation of equipment.

e) Work order system

The Respack Manufacturing SDN.BHD have a comprehensive work order system that

includes all work request information source of work, description of work, priority, cost to

complete, days to complete, and hours to perform. This information is required for the

company to plan for the delivery of maintenance services as well as evaluate performance. To

obtain the greatest effectiveness from the work order system, all work requests and activities

performed by maintenance staff must be recorded on work orders.


Example work order system used by company

a)
b)
f) Equipment Record

a) 2000mm XHD Stretching Cling Film Machine 4*500mm Cast Stretch Film Producing

Machine

Clear or color manual stretch film in both hand reels for wrapping pallets and jumbo rolls for

conversion on location and available in one-side or two-side cling for clean pallets and

improved warehouse space management. It wraps pallets easily with light and short rolls

while protects your goods with a long-term load retention. It ensures super tight load stability

for high-security storage and transit, enhances inventory management & security wrapping

with opaque, colored and tinted films. Finally, high puncture resistance with multi-layer

structure and high clarity for effective inspection of goods.


b) High Speed Output Stretch Film Machine

It profits advanced technology from aboard and manufacture by absorption, improvement,

innovation and it is entire frequency conversion control, movement stable, highly effective

and the low energy consumption. The product adopts the craft of one time forming and it can

produce one-side sticks for stretching film.

g) Maintenance strategy

i) Corrective Maintenance

Performed after a fault or problem emerges in a system, with the goal of restoring operability

to the system and to identify, isolate, and rectify a fault so that the failed equipments ,

machines or systems can be restored to an operational condition within the tolerances or

limits estabilished for in- services operations. Begins with the failures and a diagnosis of the

failures to determine why the failures appeared.


ii) Preventive Maintenance

Predetermined work performed to a schedule with the aim of preventing the wear and tear or

sudden failure of equipment components and protects assets and prolong the useful life of

production equipment. Improve the system reliability. It also can decrease cost of

replacement and system downtime. Reduce injury.

iii) Predictive Maintenance

Techniques help determine the condition of in service equipment on order to predict when

maintenance should be performed. This approach offers cost savings over routine or time

based preventive maintenance, because tasks are performed only when warranted. Predictive

maintenance increasing plant availability rather than preventive maintenance.

h) Job scope and responsibility

i) General Manager

Communicate strategy and deployment to unit workers. Lead and direct workers and

evaluate and taking decisions on major investments such as equipments, infrastructure and

talent.

ii) Projects Departments

Ensuring that all projects are submitted on a estimated time. Develop a project plan to track

progress and ensuring that all projects are delivered within the scope of coverage.

iii) Sales Department

Identify target budgets and to development of good relationships with customers and channel

partners. Besides, looking for good sales opportunities with existing and new customers to

sell products and services.


iv) Financial Department

Will take over financial transaction documents by entering account information. Moreover

maintaining financial security with the following internal controls and preparing payments

and verifying documentation and requesting withdrawals.

v) Administration Department

Managing affairs of correspondence and providing all aspects of office administration

management. Therefore, updating leave records and services.

(i) Job Planning and Scheduling

MAINTENANCE PLANNING PRINCIPLES

There are 6 Maintenance Planning Principles to perform a job in this company. The 7

Maintenance Planning Principles include having a separate department for planners, focusing

on future work, maintaining component level files, estimating based on planners expertise

and historical data, recognizing the skill of the crafts, and measuring performance with work

samplings. When all six of these principles are used and combined correctly, maintenance

planning can reach new levels. What this means is that, important asset related data and

information can be shared across the plant, and even across multiple plants.

1) Separate Department

Planners are organized into a separate department from the craft maintenance crews to

facilitate specialization in planning and scheduling techniques as well as focusing on future

work. Planners are not members of the craft crew for which they plan. Moreover, planners

report to a different
2) Separate Department

Planners are organized into a separate department from the craft maintenance crews to

facilitate specialization in planning and scheduling techniques as well as focusing on future

work. Planners are not members of the craft crew for which they plan. Moreover, planners

report to a different supervisor than the craft crews which is a key best practices indicator and

this avoids reassigning a planner to a toolbox and planners plan work and the crews execute

the planned work.

3) Focus on Future Work

The planner concentrates on future work (work not stated) and provides maintenance for at

least one week (3-4 is better) of backlog that is planned, approved, and ready to execute. The

one-week backlog allows crews to work primarily on planned work and crew supervisors

handle the current days work and problems. The craft technicians or supervisors resolve any

problems that arise after any job begins. Besides, there are two Rules of Repetitive

Maintenance which is The 50% rule if a piece of equipment needs work, there is a 50%

chance it will need the similar, if not the same, work within 1 year and the 80% rule if there is

any 80% chance the equipment will be worked on again within a 5 year period. Moreover,

feedback on jobs completed is the path to increased productivity and after the completion of

every job, feedback is given to the planner. Planners use the feedback to improve future

work.
4) Component Level Files

Planners maintain a simple, secure file system based on equipment and asset numbers and

information allows the planners to utilize equipment data and information learned on

previous work to prepare and improve work plans especially on repetitive tasks. Historical

information consists of both work order history and equipment databases and cost history

assists in making repair or replace decisions. Finally, supervisors and engineers are trained to

use these files to gather information they require with minimal planner assistance.

5) Estimate Job Based on Planner Expertise

Planners use personal experience and file information to develop work plans that will avoid

anticipated work delays, quality or safety problems and planners are typically experienced

senior level technicians, who are trained in the appropriate planning disciplines and

techniques. Moreover, planner training includes specialized techniques including: industrial

engineering, statistical analysis, etc. on-the-job training and feedback are most effective and

choose from the best crafts persons to be planners. Finally, expect to see a department

productivity loss for a few months when an experienced person transitions to planner and

payoffs which is good execution on an excellent scope job or excellent execution of the

wrong scope job.

6) Recognize the Skills of the Craft

Best Practice which is all work is planned with a minimal level of detail in the job plans so

uses some standard plans. The planner determines the scope of the work request. This

includes clarification of the originators intent where necessary and engineering requirements

are gathered before planning. Planners should attach helpful procedures from their

experience, such as files or reference documents, for the technicians use and craft

technicians can use their expertise to determine how to make a specific repair or replacement.
7) Measure Performance with Work Sampling

Measure how much time technicians actually spend on the job versus other activities such as

obtaining parts, waiting for instructions, etc. and wrench time which is the proportion of

hands-on time a technician spends working per hour (Best Practice: 60%.). Gives everyone a

measure of how much planning helps put everyone on their tools in front of a job instead of

doing something else and work that is planned before assignment reduces unnecessary delays

during jobs and work that is scheduled reduces delays between jobs.
MAINTENANCE SCHEDULING PRINCIPLES

There are 6 Maintenance Scheduling Principles which is plan for the lowest required skill

level, schedules and job priorities are important, schedule from forecast of highest skills

available, the crew leader handles the current days work, and measure performance with

schedule compliance. As with the Maintenance Planning Principles when these principles are

used correctly, maintenance scheduling can be improved dramatically.

1) Plan for the Lowest Required Skill Level

Job plans need to identify the skills required to perform the work and should include the

number of technicians, work hours per skill level, and total duration of the job. Call for a

lowest skill level because if we list two mechanics, one being a helper, we dont want to send

our two best mechanics when it is not necessary it impacts our ability to get other jobs

accomplished. It limits the impact on wrench time.

2) Schedules and Job Priorities are Important

Weekly and daily schedules need to be followed and priorities should be used appropriately

for new work. Consider how to handle break in or emergency work and any disruption to the

schedule impacts the overall process. We are setting goals for maximum utilization of

available craft hours. Moreover, when a schedule is interrupted, consider postponing a job not

started rather than interrupting a job in progress which is the job site needs to be secure

before moving to the emergency repair and restarting the interrupted job may require

additional review.
3) Schedule from Forecast of Highest Skills Available

Develop a one-week schedule for each crew based on forecasted hours available for the

highest skill level and consider the following for the schedule. Besides, job priority and job

plan information and multiple jobs on the same piece of equipment or system. Supervisor for

crew provides forecasted hours available and schedule should be based on how much work

the crew can finish. Moreover, the goal of scheduling is to accomplish more work by

reducing delays and proactive work.

4) Schedule for Every Work Hour Available

Assign work for every available hour and include easily interruptible jobs for emergencies

and high priority reactive jobs. Complete higher priority work by under utilizing available

skills and consider the following which is 100% all available hours are scheduled which

improves accuracy of reporting KPIs on work accomplished vs. scheduled based on total

available hours and 80% by building inefficiency into the schedule by leaving a 20% buffer.

If we hit the 80%, we need an additional 20%. 120% by having additional work in the

schedule ensures poor performance on schedule compliance.

5) Crew Leader Handles Current Days Work

Supervisor develops the daily schedule one day in advance based on current job progress and

the one-week schedule. New high priority, reactive work. Therefore, the supervisor matches

the personnel skills and the tasks and supervisor handles current days work and addresses

emergency work.
6) Measure Performance with Schedule Compliance

Wrench time is the primary measure of work force efficiency and of planning and scheduling

effectiveness and best measure of scheduling performance meanwhile schedule compliance

which is jobs scheduled vs. jobs started. Moreover, work that is planned prior to assignment

reduces unnecessary delays during job by eliminating non-value added time and work that is

scheduled reduces delays between jobs. Schedule compliance is the measure of following the

one week schedule and its effectiveness.

j) Costing

Costing is a branch of accounting. It helps us to classify, record, and allocate the expenditure

for the determination of costs of product.

Expenditure involved inbusiness has to be ascertained to fix the price of a product produced.

Theexpenditure is to be understood in terms of material, labour and other direct and indirect

expenses. The major purpose of such classification is to estimate the profit and to understand

its relationship with costs and price. The three elements of a transaction i.e., cost, profit and

price are necessary components of any business activity.

The management requires all information as seen in the example for each product produced.

The above estimation is done for the purpose of planning, cost control and decision-making.

The existing system of financial accounting does not provide the necessary information to do

similar estimation. Such deficiency of financial accounting has given rise to the need of cost

accounting.
Types of Costing used by Respack Manufacturing Sdn. Bhd

Method of costing refers to the process and practice of ascertaining costs of product and

services. The type of costing refers to the technique of analysing and presenting costs for the

purpose of control and managerial decisions. The types of costing also known as techniques

of costing generally used are as follows:

1) Marginal costing

Separation of costs into fixed and variable (marginal) is of special interest

andimportance. Under marginal costing, cost of a product is estimated with outconsidering fi

xed cost. This method allocates only variable costs (direct material, direct labour, direct

expenses, and variable overheads) to production. It is also known as variable costing.

2) Absorption costing

It refers to the conventional technique of costing under which the total costs (fixed and

variable) are charged to products. It is considered to have only a limited application today.

3) Historical Costing

It refers to a system of cost accounting under which costs are ascertained only after they have

been incurred. The accounting is done in terms of actual costs and not in terms of

predetermined costs. It is widely applied by many organisations today.

4) Standard Costing

This technique connotes the setting up of definite standards of performance in advance. These

standards are expressed in monetary terms. Actual performance is measured against these

standards. The differences are helping the management to initiate corrective actions. This is

believed to be a valuable tool in cost control.


5) Budgetary Control

A budget is an estimated results expressed in numerical numbers. Budgetary control is a

technique applied to the control of total expenditure on materials, wages

andoverhead by comparing actual performance with planned performance. This

technique is also believed to be another valuable aid in cost control and coordination.

k) Performance Measurement

Performance is understood as achievement of the organization in relation with its set goals. It

includes outcomes achieved, or accomplished through contribution of individuals or teams to

the organizations strategic goals. The term performance encompasses economic as well as

behavioural outcomes. Performance more comprehensively by encompassing both behaviors

and results.

Being it is concerned with the competencies of the Manage that are relevant to his/her

performance. It is preparedness of the mind of the manager. Doing focuses on the manage

activities that are variably effective at different levels in the organization: that affect

performance of other roles dependent on the manage output, and the organizational

performance as a whole.

Decentralisation and the need for performance measurement.

Decentralisation is the delegation of decision-making responsibility. All organisations

decentralise to some degree, some do it more than others. Decentralisation is a necessary

response to the increasing complexity of the environment that organisations face and the

increasing size of most organisations. Nowadays it would be impossible for one person to

make all the decisions involved in the operation of even a small company, hence senior

managers delegate decision-making responsibility to subordinates.


One danger of decentralisation is that managers may use their decision-making freedom to

make decisions that are not in the best interests of the overall company (so called

dysfunctional decisions). To redress this problem, senior managers generally introduce

systems of performance measurement to ensure - among other things-that decisions made by

junior managers are in the best interests of the company as a whole. Example 1 details

different degrees of decentralisation and typical financial performance measures employed.

A good performance measure should provide incentive to the divisional manager to make

decisions which are in the best interests of the overall company (goal congruence). Moreover,

only include factors for which the manager (division) can be held accountable and recognise

the long-term objectives as well as short-term objectives of the organisation.