Malaysian Productivity award

To boost productivity among the Malaysian firms and encourage them to do better and better, National Productivity Corporation launched Productivity Award in 1999. The objectives of this award are the following: Create awareness on the importance of productivity improvement towards economic development. Recognize companies with productivity management excellence. Emphasize the fact that productivity enhancement has high impact on sustainability and future prospects of the economy. Encourage the use of productivity indicators in monitoring the qualitative and quantitative level of achievement by companies. Emphasize the usefulness of productivity measurement in managing and evaluating company performance.

Criteria for assessment The criteria are grouped into two parts. Part I is the quantitative assessment whilst Part II is the qualitative assessment. The details of the criteria are as follows: Part I: Quantitative Assessment There are six productivity indicators which are used to evaluate the productivity performance of participating companies. i. Labour Productivity Labour productivity indicates the efficiency of employees in wealth creation process. It is influenced by, management efficiency, work attitudes, price effects and demand of the product. ii. Capital Productivity Capital productivity indicates the degree of utilization of fixed assets and their efficiency with which assets are utilized. It is defined as added value generated per ringgit of fixed assets. High ration indicates better performance of enterprise. iii. Capital Intensity Capital intensity is the ratio measuring the amount of fixed assets allocated to each employees. It is also known as fixed assets per employee or simply capital-to-labour ratio. This ratio is used to measure whether an industry is relatively capital-intensive or labour-intensive. iv. Process Efficiency

Process efficiency measures how efficient the business utilizes its own resources namely labour, plant and machinery and capital to generate added value and minimize he boughtin materials and services. v. Labour Cost Per Employee Labour cost per employee measures the average remuneration of employees. To be competitive, the increase in labour cost per employee must be commensurate with increase in labour productivity. vi. Unit Labour Cost Unit labour cost measures the proportion of labour cost to total output. Qualitative assessment is based on the productivity initiatives implemented by companies in the following are: Inventory and Materials Management Utilization of Machinery and Equipment Product/Service Development Technical Efficiency Productivity Management

NPC maintains a panel of assessors to evaluate the applications. The assessors are experienced consultants who have the qualification and selected by the higher manufacturing of NPC according to through selection criteria. The main duties of the assers are the following: Evaluate companies that are listed according to the selection done through required standard. Visit to companies listed to ensure the information and check data consistency in the application report (submission) and to obtain required clarification Decide on companies to be recommended as a potential winner to the Technical Committee

The final selection is made by the Tech. Committee whose main responsibilities are the following: Evaluate confirmation submitted by Panel of Assessors Evaluate companies based on the report prepared by Panel of Assessors Decide on the winner of Productivity Award and seek an approval from the Panel of Judge Board of Director (BOD)

All private organizations registered under the Malaysian Companies Act 1965 are eligible to apply for this award. However, the organization must have existed three years prior to the application. The categories for participation are Manufacturing: Category 1: Local company with annual sales turnover not exceeding RM10 million

Category 2: Local company with annual sales turnover exceeding RM10 million to RM25 million Category 3: Local company with annual sales turnover exceeding RM25 million to RM100 million Category 4: Open (Local company with annual sales turnover exceeding RM100 million and Multinational company)

For service category, open to all. The recipients enjoy the following benefits: The NPC Productivity Award Trophy Certificate of Appreciation Eligible to use the Award Logo for three years following the year of the Award for publicity purposes Enjoy 20% discount for any training programs organized by NPC

The following table provides the winners of the award in the past years. The winners are required share information of its successful performance and quality strategies without Malaysian organizations. However, they are not required to share their proprietary information. Recipients list No. Year won 199 9 Organization Infineon Technologies (M) Sdn Bhd. Supermax Golve Manufacturing dn. Bhd. Texchem-Pack (M) Sdn. Bhd. Unico Technology Bhd Hadsuki Technology Sdn Bhd Perodua Manufacturing Sdn Bhd PPH Printing & Packaging (Kulim) Sdn Bhd. Samsung SDI (M) Bhd Subang Jaya Medical Centre Sdn Bhd Asean Bintulu Fertilizer Sddn Bhd. KanzenTetsu Sdn Bhd Masasinar Holdings Sdn Bhd. (Special) Profen Sdn Bhd. STMicroelectronics Sdn Bhd Masasinar Holdings Sdn Bhd B & Z Plastic Industry Sdn Bhd Top Glove Sdn Bhd Malayawata Steel Bhd Pan Century Edible Oils Sdn Bhd

200 0

200 1

200 2

200 3

Pioneer Technology S/B Barkath Coro Manufacturing S/B Sipro Plastic S/B Noor Arfa Batk S/B Cape Technology S/B Kart Food Industries S/B Supermax Glove Manufacturing S/B Dutch Lady Milk Industries Bhd ABX Express (M) S/B

200 4

200 5

Case Technology S/B Amalgamated Metal Builders (M) S/B Alliance Contract Manufacturing S/B Petronas Ammonia S/B Damansara Specialist Hospital S/B

200 6

Massainar Holdings, S/B LKL Advance Metaltech S/B VM Vitaols (M) S/B MTBE/Polypropylene (M) S/B Malaysia Airlines Cargo S/B Puteri Specialist Hospital