Best Supplier Award presentation speech by Mr. Masaru Shomura (Managing Director Bando Electronics (M) Sdn. Bhd.) – PIONEER Best Supplier Award Presentation in July 2005.
First and foremost, I like to express my gratitude by saying thanks for your valuable award to our company.
We, Bando Electronics Malaysia, specializes in the developing and manufacturing of Power Transformer, which is one of the main parts to support excellent sound quality of an Audio set. I hope it is not too elaborated to say that Power Transformer plays an important role towards the purity and excellence of quality sound for audio set.
Therefore, from the very beginning, we are still continuing our effort in keeping our promise, with our vision towards, “THE PURSUIT OF NATURAL SOUND”.
We have been very careful and sensitive towards the designing, developing and manufacturing of Power Transformer that can enhance the overall performance level of audio set in terms of its dynamism, its power, and its pure sound quality.
My presentation for today shall be accorded to the following agenda.
A brief description of our Company Profile
Our Company Awards and Achievements
Our Objectives and lastly on
Our Company’s Improvement Strategies
Company Profile
Bando Electronics Malaysia, or in short BEM, was established in the late 1991 and we officially commenced operation on January 1993.
Geographically, BEM is located in a small city Rawang, which is at the northern part of Kuala Lumpur. It takes about 30 minutes drive from KL or an hour journey from the KL International Airport to our factory.
With a paid up capital of Ringgit Malaysia 10 million, Metal One Corporation, Sojitz Corporation and B-Power Sdn Bhd are currently the shareholders of BEM.
In 1996, BEM established a sister company in Indonesia named PT Bando Electronics Indonesia. We have also set-up our sales branch office in Japan in 2003.
Company Awards and Achievements
BEM appreciates and is honored to have achieved the following awards from our valuable customers.
Best Quality Award from Pioneer in 2004
Certificate of Achievement from Yamaha in 2003
Certificate Green Partner from Sony in 2003
Certificate of Achievement from Sony in 2001
We will not rest in our laurel and these recognitions will propel us to work even harder for our customers in the future.
Company Objectives
In order to run an efficient manufacturing operation, we must have very systematic Planning, Organizing & Staffing direction and control procedures. As such, I have put “My dreams into our Company’s Vision; The Vision into Hard and Good work; and The Hard and Good Work into Reality”. And being the BEST is not a Destination but it is a Non-Stop journey.
To achieve our vision, BEM adheres strictly to the following company objectives:
1. First to Quality
2. Never underestimate the “Importance of Environmental Issue”
3. Our Priority to Customer Satisfaction and our strong emphasis on
4. Innovation in Products Design and Development
1. First to Quality
BEM inculcates to each of its member, to understand and execute effectively the “First to Quality” culture with the motto of “Zero Defect as Our Way of Life”.
Parts traceability is truly entrenched in BEM system. Every BEM parts can be traced back easily to its actual production dates and lines with the effective use of barcode labels. This information, which is centrally stored, enables BEM to trace the product history from inception to the finish goods. It helps us to identify problem from the root-cause and define appropriate improvement action at the shortest time possible.
By using the Japanese philosophy of “SAN GEN SYUGI” for effective problem solving, BEM uses special task teams such as “Zero Defect and Process Improvement” teams. These teams analyze problems by going all the way down to see, and understand the actual problematic causes as called GENBA – GENBUTSU – GENJITSU.
BEM applies “Genryu Kanri” in identifying the source of cause that could possibly generate potential problem especially in the Failure Mode Analysis (FMEA) team discussion.
BEM is extremely careful in “Henkaten Kanri” or “Control Changing Points” through 4M analysis like Man, Machine, Material, and Method, which must be performed before any changes can take place.
BEM installs widely, Visual Aid Displays and Controls throughout its work floor, to make work method and process easier to see and understand. At the same time, BEM also standardizes all of our operational processes and implementing “poka-yoke” creative devices that make it nearly impossible for worker to make any error.
BEM takes pride in educating its employees to be fully aware and sensitive towards “MUDA”. It is through such trainings that our staffs always find new ways to identify and eliminate “non-value added” processes incurred during Overproduction, Waiting for Materials in Transit, Transportation and Process Time, Inventory and Motion Excess, and Defective Parts.
BEM believes strongly in the concept of “Managing Quality Input to Yield High Quality Output”. As such, BEM emphasizes strongly on the establishment of mutual understanding with all of its suppliers on the same concept that “Quality Input from Suppliers Determine BEM Quality Output”.
2. Importance of Environmental Issue
BEM adheres strictly to our customers’ Environmental Regulations and Requirements’. We use only proven and tested environmentally safe materials in our parts and our processes. We banned the use of all hazardous and prohibited materials.
BEM had conducted appropriate and adequate trainings to all its members in our Environmental Management System. Apart from that, BEM had also conducted Environmental Awareness Training to our selected suppliers, to make them recognize and understand their role and responsibility towards BEM environmental obligations to its customers.
BEM regularly updates our environmental goals into our Environmental Management System as part of our continuous improvement of our Operational Planning Process. The effectiveness of the Environmental Management System is extensively discussed, reviewed, and redesigned during our periodic Management Review Meeting.
3. Priority to Customer Satisfaction
BEM setup a Marketing Service Unit, to proactively manage our customers’ feedback and requirement. Adequate training to facilitate “Speedy and Timely Reaction” or “Responsiveness to Feedback” from and to customer, has helped us to reduce customer dissatisfaction tremendously.
With the strong support from all internal functional departments, problems such as poor quality products, poor delivery timing, inadequate invoicing, lack of back up, breakdown of communication and etc, have drastically reduced.
Thereafter, flexibility in fulfilling customer delivery instruction can easily be achieved, thus giving BEM the ability to deliver customers need on time. At the same time, such flexibility enables BEM to accept and give special consideration to shorter lead-time orders from customers.
4. Innovation in Product Design and Development
Innovation in Product Design and Development is an important consideration in BEM’s Strategy formulation. BEM uses customize Original Software Program System for our Power Transformer design. This enables us to produce superior quality design at the shortest possible design time. To maintain market competitiveness, BEM creates Product Originality by using self-design material that enhances product stability and superior sound quality.
As for Customer Quality and Cost requirement, BEM seeks active participation in Concept-in activities with its customer so as to add more value to them from the beginning stage of their product development cycle. BEM provides value-added services through the enhancement of cost competitiveness by using value analysis/value engineering product solution.
Company’s Improvement Strategies
Now I would like to touch on our Improvement Strategies, which are in accordance with our vision. There are altogether 6 perspectives.
1. Quality Perspective – which refers to our Management System and our Organizational Cultural.
Environmental Perspective – which refers to “Partnering with Customers and Suppliers on Environmental Practices”
3. Cost Perspective – refers to “Competitive Pricing through the Improvement of Internal Operation Costing”
4. Delivery Perspective – that refers to our “Supply Chain Management” program.
5. Technology Perspective – that refers to our continue drive towards a “Balanced Technology”……….and lastly
6. Service Perspective – that refers to our relentless effort to improve and enhance Customer Satisfaction
1. Quality Perspective
BEM seeks quality improvement of the following areas:
External Factor - This involves the upgrading of supplier quality control system, and
Internal Factor- Which involves ‘In-process Improvement Activities” and “Employee Empowerment”
In order to help upgrade suppliers’ Quality Control System, BEM readily transfers our Quality Control know-how into our suppliers’ Quality Control System. Through periodic audits on our suppliers, we can check the progress and effectiveness of these implementations.
In executing Process Improvement and Employee Empowerment program, BEM has developed and implemented the following ideas,
a. Capacity Requirement Planning (CRP) – To Reduce the Frequency of Changeover.
b. Management by Fact – To Monitor the Performance towards changes.
c. Suggestion System – To Improve Internal Communication between Functional Groups
d. Training & Development – To Improve Employee Competency Level.
e. Use of Teams – To Deploy Management Strategies and Practices.
f. Job Rotation System – To Develop and Upgrade Employees Skill…and lastly
g. “MUDA” – To Continue to seek new ideas to eliminate waste.
2. Environmental Perspective
BEM will promote an “Environmental Awareness” campaign to create awareness and to disseminate the message of the importance of Environmental matters to its employees. This awareness program will also be extended to all of our suppliers. Corporate Social Responsibility especially in environmental matters must be borne in mind when dealing with customers and suppliers.
Commitment such as changing product specification to encourage suppliers on environmental management system will be exercised in conjunction to our Supply Chain Management and our Environmental Management System. In another words, by partnering with customers and suppliers on environmental practices, more value-creating methods and practices in Corporate Social Responsibility will be established.
3. Cost Perspective
BEM will look into the improvement of internal operational cost to enhance our cost competitiveness for our customers. Among some propose ideas to reduce operational cost are,
Extensive use of VA/VE solution.
Implementing a “No PO No Purchase” concept to our suppliers that eventually helps to control inventory.
BEM will aggressively request suppliers’ consensus on material/part cost reduction.
4. Delivery Perspective
Supply Chain Management, which covers the entire chain of our organization’s input, its conversion operations, and it outputs or distribution, are important elements in achieving customer satisfaction.
Constant monitoring of Customer BPO and Delivery Instruction List (DI), and systematic analysis of Customer Forecast against our Production Capacity and Material Availability, form the basis for our formulation of procedures to prevent non-performance activities.
Adequate monitoring in transport and logistic effectiveness will enable us to develop consciousness towards excellent on-time delivery performance.
Measuring the performances of Purchasing, Operation, and Distribution Processes against Customer Satisfaction are necessary to help BEM to map out Improvement Strategies.
5. Technology Perspective
BEM acquires future technology to keep abreast with time and the changing market needs. In our Vision towards a “Balanced Technology”, BEM acquires Up-To-Date engineering tools to develop Design Originality based on Up-To-Date Technology available in the market.
BEM always seek new ways to simplify its production processes by assembling its own design machines and equipment. For example, the introduction of “cell line” has helped us to reduce the effect of downtime due to frequent line changeover.
BEM always improve our Enterprise Resource Planning (ERP) system to moves forward in current and future organization development. In another words, ERP system improved the performance of organizations' resource planning, management control and operational control by integrating activities across functional departments.
6. Service Perspective
Customer Service is one of the important factors that can determine whether or not a company can continue to stay in business. Therefore, it is utmost important for us to always strive for a high level of customer service.
We believe strongly that good customer service begins when our employees are happy and willing to serve their customer. Through the promotion of Effective Communication and Teamwork within BEM internal departments, we hope to eliminate workplace negativity, which in turn can motivate our employees to provide excellent services to our customers. Since customer service is an important issue to consider in BEM business, BEM should continue to build a personal relationship with customer and will share similar customer service culture with them.
Finally, we are always ready to do our utmost best to improve on our Manufacturing Operation to fulfill our customer needs and requirement. With our customer strong support and understanding, we hope to work towards the strengthening of our customer/supplier relationship further.
We strongly believe that we can work towards achieving our company Vision that is to provide our customer like Pioneer our very Best Effort. BEM is positively and proactively going to embark on achieving our goal towards a “Continuous Growth Together with CUSTOMER”.
Thank you.