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EBQM 3103

TOTAL QUALITY MANAGEMENT

MATRICULATION NO : 750920035015001

IDENTITY CARD NO. : 750920035015

TELEPHONE NO. : 0192599577

E-MAIL : harfizi@gmail.com

LEARNING CENTRE :Shah Alam


ASSIGNMENT QUESTION

PURPOSE
This assignment question based on the Project Based Learning (PtBL) method assessment.

REQUIREMENTS/ASSIGNMENT QUESTIONS
Strategic facility planning is the platform upon which to create scenarios and develop
potential solutions that will help to sustain organizational business performance.Every
business is unique therefore effective facilities management (FM), combining non-core
resources and activities, is vital to organisational competitiveness and success. At a
corporate level, FM contributes to the delivery of strategic and operational objectives. On a
day-to-day level, effective facilities management provides a safe and conducive working
environment, which is essential to the performance of any business whatever its size and
scope.
Develop a strategic facility planning aligns with organisational business strategic needs.

YOUR ASSIGNMENT REPORT SHOULD CONSIST THE FOLLOWING:


1. A detailed introduction of a business case study;
2. Literature review of strategic facility planning (SFP);
3. Identification of suitable SFP methods and implementation framework;
4. Proposed solutions to facilitate the strategic facility planning development;
5. Summary and references

_________________________________________________________________________

MUKA SURAT TAMAT / END OF PAGE


1. Introduction.

Waterco (Far East) Sdn. Bhd (WFE) is located at Lot 832, Jalan Kusta, Kawasan
Perindustrian SB Jaya, 47000, Sungai Buloh, Selangor has been established in Malaysia since
1981, a major manufacturing arm of Waterco Group of Companies which Head Quarter is in
Sydney Australia and listed with Australian Stock Exchange. WFE produces about 800 types
of product for swimming pool, chemical and water treatment related for domestic and
commercial apllication. Group turnover recorded approximately AUD 77million (Waterco
Limited - Group , 2015) while WFE recorded turnover at RM 70 million last financial year.
Finished products are mostly 90% exported to 45 countries globally and mostly to Australia,
New Zeland, Middle East and Northern Hemisphere. WFE has about 220 permanent staffs
which translated 100 peoples are local and the rest are foreigners which employed as direct
labour due its production required labour intensive processes. In a year, there are about
30,000 swimming pools pumps and approximately 100,000 units of fiberglass filter tanks are
sold throughout the globe.

WFE manufactures it product to supply globally and having to have ISO certification
9000 is a critical point to proof to the customers and suppliers the important of Quality
Management System towards producing high quality product that undergone through
extensive verified internal processes. Getting the processes and QMS certified will move the
company to the internationally recognised standard for the quality management for
business and demonstrates the existence of an effective and well-designed quality
management system, which stands up to the rigours of an independent external audit as to
ensure the client needs and expectation are fully met in order to achieve client satisfaction.

As a start, awaereness program such as ISO kick-off meeting, brain storming, bench
strength and awareness programme is conducted half a day session on each week to esnure
all the staff is aware, participated and communicated towards successful implementation at
later stage. The whole above activities are to ensure the key criterion for this standard is
delivered and provide confidence in creating workable and effective system to all the
stakeholder and staff

The organisation chart for WFE is shown as per below Figure 1


Overview
Waterco (Far East) Organization Structure

Organisational Chart Ref: 03/001


Area: Far East Created: 15 March 2011 Revised: 15 June 2016
Version: 11 Created by: Celine Revised by: Celine

Board of Directors

Group Chief Executive Officer


Soon Sinn Goh
Finance Director, Head of Group Chief Financial Officer
GCAAD & Risk Manager Waterco Limited
Tay Kok Keong Lim Sze Tin
Chief Executive Officer
Ong Toon Kiat

Chief Financial
Executive Officer
Secretary Northern Region
Susana Prakash Nancy Tan

Manager Manager Manager Manager Manager Manager Manager Manager Consultant


Manager Plastic Demand Engineering Engineering
Business Asia Fibreglass Operations Shipping
Export Injection Supply Lim Foong Chin Swee
Development Region & Assembly Ng Siew Melissa
Kok Ai Lin Moulding Div Law Siew Seim Boon
Steven Yong Lee Yuen Keen Lim
Liew Heng Foo Hoong Anne Lee Ling

Asst Manager - Asst Manager - Asst Manager -


Asst Manager
Administration Finance IT & SP
QA/QC
Celine Tham Angie Ng Harfizi Hassan
Mary Ann
(HOD) (HOD) (HOD)
Executive - QA/QC
Yong Foong Peng

Sales & Fibreglass & Plastic Inj.


Purchasing Shipping Production Engineering HR & Finance IT & SP
Marketing Assembly Moulding Planning Admin

Customer Warehouse Heat Pump/


QA/QC
Service Chemical
Figure 1
2. Literature Review Of Strategic Facility Planning (SFP)

HISTORY
Strategic planning has a long history in organizations. Its origins are often thought to
have been in the military, where there was a need to develop comprehensive, long-term
strategies to win a war as opposed to the shorter-term, more limited tactical planning needed
to win battles or skirmishes. An early form of strategic planning, the SWOT analysis
(strengths, weaknesses, opportunities, and threats), came out of the Harvard Business School
in the 1950s as part of their efforts in regard to business policy development and the analysis
of business strategies in relation to an organizations internal and external environments.

The practice of strategic planning achieved considerable popularity in private-sector


organizations in the 1960s and 1970s. In the 1980s, it became more and more prevalent in the
public and non profit sectors. Unlike other management fads that have quickly disappeared,
strategic planning is a management technique or practice that has demonstrated staying power
and broad usage across a variety of organizations in both the private and public sectors.

STRATEGIC PLANNING IN GENERAL


Early on, strategic planning was a relatively formal, elaborate, and often lengthy
process. In addition, because times were more stable, a strategic plan was intended to last for
several years. More recently, largely in response to these more rapidly changing and turbulent
times, there has been a clear trend in the private sector to:
Shorten the strategic planning cycle so that the plan is not out of date by the time
it is finished. (However, it should also be noted that there has been a
countervailing trend to open up the process and involve as many participants as
feasible, rather than having it be a top- down plan developed largely by top
management and imposed on the organization. The effect of this has been to
lengthen the process.)
Make the planning process less formal and more flexible.
Make the process relatively continuous rather than something undertaken only
every 2 to 5 years.
Link it to other important business processes such as budgeting and performance
measurement.
An example suggested by (Redding, 1994) a shift from strategic planning to strategic
learning through a regular process of
Continuous planningwhere in the organization focuses on questioning and
quickly adjusting existing plans;
Improvised implementationthat is, both experimental and evolving, and that
provides good information for learning; and
Deep reflection about original assumptionswhat has changed and what has
been learned.

The authors maintain that most organizational change results not from formal plans
and fixed programs for change but from a process of learningand not just from the learning
of individuals but, more importantly, from the collective learning of entire organizations
(Redding, 1994)

(Mintzberg, 1994) presented a very comprehensive, complex, and contrarian view of


the practice of strategic planning. His central argument is that strategic planning by its very
nature is the antithesis of strategic thinking. He views strategic thinking as a creative act of
synthesis, and strategic planning as a process that is essentially one of analysis. (An analogy
might be right brain versus left brain thinking, in which the right brain is considered to be
more creative and holistic and the left brain is considered to be more linear and logical.)
(Mintzberg, 1994) believes that strategic planning often spoils strategic thinking, causing
managers to confuse real vision with the manipulation of numbers.

(Mintzberg, 1994) goes on to argue that Strategic planning, as it has been practiced,
has really been strategic programming, the articulation and elaboration of strategies, or
visions, that already exist. He asserts that strategic planning does not fail because of such
commonly mentioned pitfalls as a lack of commitment from top management or resistance to
change, but instead because of its fundamental nature of being too analytical, too formalized,
and too detached from the functions and interests of the businesss line managers.
In spite of his belief that strategic planning is not effective at creating business strategies
(strategic thinking), he believes that it can play important roles including:
Strategic planning as strategic programmingInstead of trying to use strategic
planning to generate strategies or visions, use it to program them. This can be
done through a process of codification (expressing the strategies in ways that
are clear and operational), by elaboration (breaking strategies down into sub
strategies and action plans), and conversion (identifying the impacts of the
strategies on operations; e.g., on budgets and performance controls).
Strategic plans as tools to communicate and control Plans can be an important
way of communicating the organization s intentions both internally (helping to
ensure that everyone in the organization is pulling in the same direction) and
externally.
Strategic planners as analystsPlanners can use their analytical skills and
orientation by performing special studies and by offering new perspectives.
Strategic planners as catalystsInthisrole, planners do not try to enter the black
box of strategy making, but instead encourage and assist line managers to think
in creative ways about the future (Mintzberg, 1994)

(Mintzberg, 1994) words, Planners shouldnt create strategies, but they can supply
data, help managers think strategically, and program the vision.

Although insightful, Mintzbergs distinction between strategic thinking and strategic


planning may be more relevant to the private sector, where the environment tends to be more
volatile and where businesses must constantly be on the lookout for new business strategies
and opportunities. Generally, in the public sector, and in public manufacture more
specifically, the situation is usually more constrained. For example, the purpose and
geographic jurisdiction of public manufacturing companies is usually prescribed by state
legislation. For the most part, public manufacturing companies are not going to be pursuing
business opportunities outside of the area of public manufacturer. In addition, their financial
structure is often defined or controlled in large part by their enabling legislation or funding
bodies.
It might therefore be argued that strategic planning, when thought of as strategic
programming as described by Mintzberg, may be the primary role it should play in public
manufacture. (Mintzberg, 1994) implies this when he states that Only when an organization
is sure of the relative stability of its environment and is in need of the tight coordination of a
myriad of intricate operations (as is typically the case of air- lines with their needs for
complicated scheduling), does such strategic programming make sense. The more creative
strategic thinking described by Mintzberg might be used only infrequently, when there is a
need for more trans- formative organizational or institutional change.

Another valuable perspective on strategic planning, that appeared in the mid-1990s,


was the concept of the balanced scorecard, as developed by Kaplan and Norton in response
to their belief that strategic planning and management as practiced in the private sector gave
too much weight to financial matters (Kaplan, 1996). To remedy this, they developed the
balanced scorecard idea, an approach that provides a frame- work for helping an organization
achieve its long-term strategic goals by viewing the organization from four key perspectives:
(Redding, 1994) the customer, (Mintzberg, 1994) internal business processes, (Mintzberg,
1994) learning and growth, and (Kaplan, 1996) financial performance.

The balanced scorecard system involves the development, utilization, and analysis of
performance metrics that are developed for each of these perspectives.

STRATEGIC PLANNING AND PERFORMANCE MEASUREMENT


Almost all of the literature on strategic planning and management emphasizes the need
for linking the process to performance measurement. This is necessary to be able to monitor
whether plans are being achieved and whether corrective action needs to be taken.

There is a great deal of literature on the general subject of performance measurement.


An excellent and very comprehensive study of the issue that pertains directly to transit is the
(TCRP, 2003). This report provides detailed guidance for developing a system using
traditional and non traditional measures that address both customer and community issues

STRATEGIC PLANNING AND ORGANIZATION DEVELOPMENT


One of the strengths of strategic management is that it recognizes that strategic
planning by itself often does little to change an organizations direction, because it does not
deal with the significant structural, political, and behavioural forces that tend to resist change.
This point is made in two articles that argue for the blending or marriage of strategic
planning and management and Organization Development (Buller, 1988).

Organization development (OD) seeks to develop and implement planned change


strategies aimed at improving an organizations effectiveness. It uses many tools or
techniques to ensure that an organization has the internal capability to effectively achieve its
goals and objectives. These include such activities as goal setting, leadership development,
team building, employee feedback surveys, education and training, organizational design,
process consultation, coaching and counselling, and development of appropriate reward and
recognition programs.

In For Successful Strategic Change: Blend OD Practices with Strategic


Management (Buller, 1988), Buller suggests that OD tools can be helpful in the following
phases of a typical strategic planning process:.
Assessing and developing the organization s readiness for change,
Facilitating the strategic planning process,
Helping with strategy implementation, and
Developing leadership skills.

A similar point is made by Eadie and Steinbacher in Strategic Agenda Management: A


Marriage of Organizational Development and Strategic Planning; that is, that traditional
strategic planning too often results in unimplementable strategies (Eadie, 1985). In this
article, the authors describe a case study of a large and complex public-sector organization in
Ohio. They argue that strategic management can be one of the tools in the larger strategy of
OD. More specifically they describe a concept of strategic agenda management.

Strategic agenda management basically involves the collective management of a


strategic agenda, which changes as an organizations problems and opportunities change.
The authors state that effective strategic agenda management requires intensive, continuous,
and collective involvement of senior management, and that a strategic agenda must be
highly selective if it is not to overtax the organizations ability to manage strategic issues
(Eadie, 1985).
The important point is that strategic planning and management must pay close
attention to not only the development of strategic initiatives but also to the organizations
capability to implement the initiatives. OD tools can be an important resource for developing
or enhancing this capability.
3. Identification of suitable SFP methods and implementation framework

ANALYSIS
The facility manager, planners and designers begin to consider how to balance current
facility needs with long-term needs and issues. These needs and issues may include
workforce demographics, manufacturing processes, organizational structure and culture,
community and government regulatory requirements, market position, and capacity rates and
volumes. All of these combine to define the individual elements of the SFP.

The comparison of the current inventory and conditions with the future needs provides
the gap that the SFP will address. A number of tools (see Analysis tools section) may be used
to compare, analyze, coordinate and clarify this gap and the alternatives, scenarios and
recommendations that are made.

ANALYSIS TOOLS
Scenario Planning
Scenarios are tools for thinking ahead to anticipate the changes that will impact your
organization. Scenarios can be considered instructive simulations of possible operating
conditions. this approach might be used in conjunction with other models to ensure planners
truly undertake strategic thinking. Scenario planning may be particularly useful in identifying
strategic issues and goals.
1. Select several external forces and imagine related changes that might influence
the organization, such as the global marketplace, technology, change in
regulations, demographic changes, etc. Scan newspapers and Internet sources
for key headlines to suggest potential changes that may affect the organization.
Utilize IFMAs and other associations trend reports.
2. For each potential change, discuss three different future organizational
scenarios (including the best case, worst case and all right/reasonable case),
which may arise within the organization as a result of each change. reviewing
the worst-case scenario often provokes strong motivation for needed changes.
3. Suggest what the organization might do, or potential strategies, in each of the
three scenarios to respond to each change.
4. Planners soon detect common considerations or strategies that must be
addressed in order to respond to possible external changes.
5. Select the most likely external changes to affect the organization, over the next
three to five years, for example, and identify the most reasonable strategies the
organization can under- take to respond to these changes. (Carter McNamara,
2006)

The product of this process is not a final, cut-in-stone document, but provides insight
into how different decisions will affect the organizations return on investment, cash flow,
debt load, work processes and productivity of its employees. Scenarios will guide decision
makers and provide advance consideration of potential impacts of different facility decisions.

Systematic Layout Planning (SLP)


The SLP method was developed by Muther (1973) to create conceptual block layouts.
the method successively adds complex data categories until a block layout has been
generated, making it a strategic to tactical tool.
1. Document the present operation (Deliverable: flowcharts)
2. De ne the activities and planning horizon (Deliverable: table)
3. Develop activity relationships (Deliverable: relationship diagram)
4. Develop a square footage requirements spreadsheet (Deliverable: spreadsheet)
5. Develop block plan layouts (Deliverable: block plan layout)
6. Development an equipment layout (Deliverable: equipment layout) (Bodi,
2003)

SWOT Analysis
SWOT Analysis is another planning tool used to strategically evaluate the strengths,
weaknesses, opportunities and threats in a project or in a business venture. SWOT uses
business objectives and identifies both internal and external factors that are either favourable
or unfavourable to achieving that objective. the four areas considered are:
Strengths: attributes of the organization helpful to achieving the objective and
describing how they can be leveraged.
Weaknesses: attributes of the organization harmful to achieving the objective
and how they can be minimized or neutralized.
Opportunities: external conditions helpful to achieving the objective.
Threats: external conditions harmful to achieving the objective.
Brainstorming (AGIR-a gang in a room)
This technique better ensures that various views and aspects are represented,
particularly if the individuals are chosen well. the downside may be too much input, which
may yield inconsistencies.(David, 1999) however, done properly, brainstorming provides
opportunity for creative, innovative concepts that might otherwise be overlooked. As such, it
is suggested that a professional facilitator should conduct these types of sessions.

Strategic Creative Analysis (SCAN)


Strategic Creative Analysis is a process for strategic planning, decision making and
analyzing case studies. An example of a strategic planning technique that incorporates a
SWOT analysis is SCAN analysis. the process of SCAN is described in exhibit 1. (Step 3.
Includes the top rated Objective TRO) (Winer, 2008)
Benchmarking
Benchmarking is a very useful SFP tool for comparing and measuring your
organization against others, anywhere in the world, to gain information on philosophies,
practices and measures that will help your organization take action to improve its
performance. In summary, benchmarking is the practice of being humble enough to admit
that others are better at something and being wise enough to learn how to match, and even
surpass, them at it.

Benchmarking utilizes much of the organizational understanding gained in the rst step
of SFP to compare practices and metrics to recognized leaders. Networking with peer
organizations, competitors, and especially for facility organizations, visiting award-winning
service organizations provides insight to bring back and adapt to your operations. Adaptation
is the keyrecognizing a good process or practice and use it in your own specific way within
your organization is the essence of successful benchmarking.

In order for SFP to serve as the right mechanism to analyse and improve current facility
operations, a proactive approach to benchmarking practices and services of those
organizations recognized as industry leaders is needed. Benchmarking may be undertaken as
part of a broader process reengineering initiative, or it might be conducted as a freestanding
exercise. (Steiss, 2004)

Organizational Simulation
Organizational simulation is a prominent method in organizational studies and
strategic management. this tool aims to understand how organizations operate. the
organizational simulation can describe the coordination of facility operations based on
understanding and analyzing the impact of interrelated facility alternatives and activities. this
method can measure organizational performance and support strategic thinking. (William,
2005)
4. Proposed solutions to facilitate the strategic facility planning development

The implementation the 5S and Training and at Waterco.


5S methodology (M. Assad, Saad, & Z. Yusoff, 2015) has been clearly distinguishing
between what is needed and to be kept and what is not needed and to be discarded;
orderliness organizing the way that needed things are kept so that anyone can find and use
them easily; cleanliness sweeping floors and keeping things in order; standardized cleanups
organization, orderliness and cleanliness are being maintained; discipline always
following specified (and standardized) procedures as described in Table 3, Seiri, Seiton,
Seiso, Seiketsu and Shitsuke. In practicality, we can opt to use the below method how to
understand 5S principal to all our sections. Visual management is always the best tool to
coach and teach all our staff the important of the 5S in the workplace. Simple examples from
(Falkowski & Kitowski) and (Singh, M. Gohil, B. Shah, & Desai, 2013) is easier to train
staff and shows as follows;

1st - Seiri Sorting

The basis for the standard that follows the principle, Sorting: Just what is needed, in
the quantities needed only, and only when needed. That is removing from the workplace any
items unnecessary to perform the current operation.
2nd - Seiton Systematic
Keep all equipment in order and label both the equipment and all the items stored so
that everyone can easily find what is needed. The effectiveness of the systematics depends on
proper selection. The Systematics will be ineffective if there are too many items organized
and labelled unnecessarily. Speed identification of objects, can be obtained by labelling,
drawing lines and outlining the highlight/shadow areas.

3rd - Seiso Sweep/Shine


The Sweep/Shine tasks in the workplace include washing, vacuuming, renovation and
dirt/dust/waste removal. The 5S method procedure should be implemented as a necessary and
routine task performed by each employee to create a friendly and safe working environment.
Regular cleaning improves the feeling of comfort, and reduces the risk of equipment failure.
An important element at this stage is the responsibility and common involvement of all the
team members participating in the process.
4th - Seiketsu -Standardize

The implementation and maintenance of the previous three stages of the 5S is a time
when it is possible to begin standardizing the company processes with the use of this method.
The introduction of a set of rules resulting from the three steps of selection, systematics, and
cleaning will help employees to understand their tasks and the aims to be achieved by the
introduction of the 5S method. At this stage, it is possible to implement instructions at the
workstation.

Lastly the final 5S, 5th Shitsuke Self-disciplining and getting used to each
involved in the 5S action through standard application, habit and continually improve the
organization culture. In order to maintain the introduced policy, we can schedule internal
audits and offer incentives bonus schemes for employees. Applying checklists at various
positions allows to check on the present degree of compliance with earlier assumptions.

Training is the important continuous improvement possible only through continuous


improvement in knowledge and skill of the people as different levels. (Pradhani & Senapati,
2014) indicated a provision of suitable training to the employees at an early phase of
implementation in order to obtain shop floors buy in. Hence, the whole of shop floor should
receive a comprehensive suite of new skills, new knowledge and new abilities apropos to
TPM even before the pilot implementation program embarks, realistically and to establish a
practical and comprehensive training program for all employees. Furthermore, he proposed to
accept that the training program will take a long time to be diffused across the organization.
The training plan that we have now to train our staff for 5S will be held in April as per below
training schedule with constant support by the top management team (Table 5)
TRAINING CALENDER FOR YEAR : 2017
No Training Course Employees JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
.
1 ISO 9001:2008 QMR, HOD, ISO Committee
Awareness Programme
2 ISO 9001:2008 QMR, HOD, ISO Committee
Internal Quality Auditors
3 5s and Kaizen Supervisor

4 Internal Training : Chemical Handling QMR, HOD, Safety Committee

5 Effective Time Management Management Team , HOD and General


worker
6 The Employment Act 1955 & Industrial Management Team
Relations Act 1967
7 Excellent Customer Service Marketing Staff

8 Safe Handling Of Chemicals & Other Management Team , HOD, Safety


Hazardous Materials Committee and General worker
9 1st. Aids and Forklift Training Supervisor

10 Effective Supervisory Skill Supervisor

11 Team Building Management Team , HOD and General


worker
12 Effective Communication Skill Management Team , HOD and General
worker

Table 5
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Organization, JosseyBass, San Francisco, Calif., 1994, 202 pp.

Mintzberg, H., The Rise and Fall of Strategic Planning, Free Press, New York, N.Y., 1994,
458 pp.

Mintzberg, H., The Fall and Rise of Strategic Plan- ning, Harvard Business Review, Jan.
Feb. 1994, 8 pp.

Kaplan, R.S. and D.P. Norton, The Balanced Scorecard: Translating Strategy into Action,
Harvard Business
School Press, Boston, Mass., 1996, 322 pp.

TCRP Report 88: A Guidebook for Developing a Tran- sit Performance-Measurement


System, Transportation Research Board, National Research Council, Washing- ton, D.C.,
2003.

Buller, P.F., For Successful Strategic Change: Blend OD Practices with Strategic
Management, Organiza- tional Dynamics, Winter 1988, pp. 4255.

Eadie,D.C.andR.Steinbacher,StrategicAgendaMan- agement: A Marriage of Organizational


Development and Strategic Planning, Public Administration Review, May/June 1985, pp.
424430.

Carter McNamara (2006) Basic Overview of Various Strategic Planning Models,


http://www.managementhelp.org/plan_dec/str_plan/models.htm

Bodi engineering LLC (2003) Facility Planning Methodology, Oct. 2003.

David G. Cotts (1999) Facility Management Handbook, AMACOM.

Winer, Leon (2008) MBA toolbox, Chapter 1.2, access online:


http://mbatoolbox.org/stories/storyReader$19

Steiss, Alan Walter (2004) Strategic Facilities Planning: Capital Budgeting and Debt
Administration, Lexington Books.

William B rouse and Kenneth r. Boff (2005) Organizational Simulation, John Wiley & Sons.

M. Assad, M., Saad, R., & Z. Yusoff, R. (2015). 5s, Kaizen and Organization Performance:
Examining the Relationship and Level of Implementation Using Rasch Model in Malaysian
Automotive Company. International Academic Research of Business and Technology , 214-
226.

Falkowski, P., & Kitowski, P. (n.d.). THE 5S METHODOLOGY AS A TOOL FOR


IMPROVING ORGANIZATION OF PRODUCTION. phD Interdisciplinary Journal, 1-7.
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Pradhani, S., & Senapati, P. (2014). A Review on Implementation of TPM in Manufacturing


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