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 ProductivityHong TanLead 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

1. 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 MALAYSIANMANUFACTURING 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 HRDTraining & Learning Organization DevelopmentCareer 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

BroadeningLearning Activities

Building Employee Branding

Invest in Strategic Learning

Leverage on our intellectual capital

Partnership with Different Business UnitCultivate Values and

Positive Culture

Speed up knowledge transfer

High Performance Model

Learning: change

Collaborating: speed

Teaching: Growth

LearningInformal learningformal 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

Maxis Academy Center

Knowledge NetworkHRD Best Practice Sharing

May 2008 Maxis

Knowledge NetworkHRD Best Practice Sharing

23rd May 2009 Wisma PSMB

Presentation by Participants

3rd Presentation by Hasrul

Sharing by Participants

Fabien from Pfizer

PSMB: Knowledge Network

Facilitation by KC Lim

PSMB Staff with 2nd Speaker Abd Lin

Internet research

• Abundance of useful information

• Control for fear of abuse

Free Free softwaresoftware

Redes Redes socialessociales

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

1.Seek First to Understand

Inquires vs advocacies.

2.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: PDCAAL Model: PDCAA. Plan

• Address Organization Concerns• Engage Teams and select projects

C. Check

D. Act

B. Do

• Provide Training• Carry out projects

• Review results

• Proliferate to other areas

Jeffrey Liker

7s McKinsey

The Training ApproachThe Training Approach

The Learn – Do The Learn – Do –– Mentoring Approach 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 ConsultantsLean 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: [email protected]

http://www.adv-mc.com/

Wave 1Wave 1

•Lean overview•Value Stream Mapping•Set-up Reduction•5S•Change Management

Wave 2Wave 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 3Wave 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 4Wave 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

ThinkGlobalManagerial 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 HRDShared Learning TeamUpgrade Training function to HRD

Role of PSMB Consulting, Resource Center & HRD Functions

Summary

1. 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 Development5. 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 / 1997-2002Senior Executive

Recruitment Outsourcing US / 2006Training Manager

Global PharmaceuticalUS / 2006Learning Manager (Mal & Singapore)

Manufacturing (Assembly and Test)Malaysia MNC / 2007HRD 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 Malaysiawww.facebook.com

Chief Learning Officer Network network.clomedia.com/profile/LaurenceYap

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