CHAPTER 1: INTRODUCTION

1.1 INTRODUCTION
Research is an objective and systematic scientific inquiry or investigation into a
specific problem that needs a solution that provides the needed information that
guides managers to make decisions to successfully deal with problems. The
information provided could be the result of a careful analysis of data gathered
firsthand or of data that are already available. While business research is a systematic
and organized effort to investigate a specific problem or opportunity encountered in
the work setting that needs a solution. Managers need to recognize that the most
problems are opportunities in disguise.
In this chapter, discussion will be focused on identifying and stating the research
problem, formulating the research questions and purposes of the research, deciding on
scope of the research and underlining the significance of the research. In general this
topic will able to give an insight of the direction of the research and its deliverables.
The main purpose of the project research conducted are to seek the truth, to discover
new knowledge, to describe, explain, and predict, to provide solution to a problem
and to help in decision making. Underpinning this broad aim were objectives
articulating the scale, scope and focus of the project. These involved exploring how
research impact was currently understood by the higher education community and in
particular, exploring what standards were guiding decisions about what impacts were
sought, and the methodological approaches deployed in providing evidence of impact.

A researcher may conduct a random interview or survey in order to determine what

would increase the level of maintenance downtime and also can determine what
reasons for the poor capacity in a company. If the performance is due to poor training
methods, poor Automation system or any else, then a thorough research will be
carried out to solve the problem. Moreover, a researcher may conduct a scientific
research. This techniques or procedures used to analyze empirical evidence in an
attempt to confirm or disprove prior concept in helping the researcher to know and
understand business phenomena.

1.2 PROBLEM STATEMENT

Capacity is the maximum amount of manufacturing operation that can be produced by

URC Snack Foods Sdn Bhd. Capacity increase either to meet an actual (immediate)
increase in customer demand or an anticipated (future) increase in customer demand.
Capacity actually a situation in which actual production is less than what is achievable
or optimal for URC Snack Foods Sdn Bhd. This often means that the demand in the
market for the product is below what the firm could potentially supply to the market.
The amount of capacity produced within URC Snack Foods Sdn Bhd is a signal of
both the health of that industry and the demand for the products it produces.
The demand for products at URC Snack Foods Sdn Bhd is increasing tremendously as
consumers are aware of health issues and the importance of it. For some people, when
income rises, the demand for URC Snack Foods products will increase together. With
the current supply and with the demand that is increasing, URC Snack Foods Sdn Bhd
2

was going through an underproduction due to the fact that demand is more than the
supply. Thats why, the company need to increase their maintenance downtime in
order to help them in satisfied the customer demand and also indirectly increasing
their profit. Therefore, they need a consistent way to solve their problem of poor
maintenance downtime. They need improve their maintenance downtime by, first
using maintenance schedule (PAS) such as Automatically Control Equipment and
Computerized Technology and software. Secondly, they may use overall Equipment
effectiveness. Thirdly, by improving staff accountability and lastly, using Data
Envelopment Analysis (DEA) and Equipment Qualification.

1.3 REASERCH
MODEL
1. Prepare the daily checklist
2. Prepare the monthly service

12. Qualification / Education Level

11. Experience

checklist
3. Record the schedule

10. Training method

Problem Statement

4. Man Power

1. Maintenance
Schedule

Maintenance Downtime
URC Snack Foods Sdn Bhd

(Dependent Variable)
Improvement The
Maintenance Downtime

2. Monitor the
Efficiency of
Manufacturing
Processes

3. Update or Service the

Machinery

4. Reduce the breakdown time or

reduce minor stops

9. Preventing machinery malfunctions

8. To do a schedule for calibration

5. Reduce the minor stop from other

production line

7. Use the right spare parts

6. Reducing the production losses

4

1.4 MAIN RESEARCH OBJECTIVES

To determine factors to improve maintenance downtime in URC Snack Foods
Sdn Bhd.
1.5 SPECIFIC RESEARCH OBJECTIVES.
1.5.1 To determine the influence of the maintenance scheduling to improve
maintenance downtime in URC Snack Foods Sdn Bhd.
1.5.2 To determine the influence of monitoring the efficiency of manufacturing
process to improve maintenance downtime in URC Snack Foods Sdn Bhd
1.5.3 To determine the influence of updating or servicing the machinery to
improve maintenance downtime in URC Snack Foods Sdn Bhd.
1.5.4 To determine the influence of staff accountability or manpower to
improve maintenance downtime in URC Snack Foods Sdn Bhd.

1.6 BENEFIT TO THE COMPANY

Planning the use of their manufacturing capacity to turn out highest- quality products
while maximizing profit is a key to the successful of URC Snack Foods Sdn Bhd.
Capacity utilization depends on market demand and on scheduling production for the
most efficient use of the facilities. So, when URC Snack Foods Sdn Bhd managed to
improve their maintenance downtime continuously, this enables the organization to
better their economies of scale learning. Is such URC Snack Foods Sdn Bhd can able
to reinvest their profit for further develops it.
1.7 LAYOUT OF THE PROJECT PAPER [FINAL REPORT]
5

CHAPTERS
1
2
3
4
5

SUBJECT
INTRODUCTION
ORGANIZATION BACKGROUND
RESEARCH DESIGN
DATA ANALYSIS AND FINDING
RECOMMENDATION AND CONCLUSION

1.8 SUMMARY
This chapter is discussed to formulate an excellent strategy of improvement the
maintenance downtime URC Snack Foods Sdn Bhd. From the problem statement part,
the conclusion that can be made is that the URC Snack Foods Sdn Bhd needs to
consider on many aspects in improvement their maintenance downtime. The area of
improvement will be focus on the preparing the maintenance schedule; monitoring the
efficiency of manufacturing process; updating or servicing the machinery; and
improve staff accountability or manpower. This report is completed and written out
focusing on URC Snack Foods Sdn Bhd.

CHAPTER 2- COMPANY BACKGROUND

2.1 INTRODUCTION
In this chapter, discussion will be focused on identifying and stating the company are
selected to formulating the research. In general this topic will able to give an insight
6

of explanations, the company background, corporate history and others thing. The
main purpose of the identification of the company conducted is to describe, explain,
and predict, to provide solution to a problem and to help them in decision making.
This chapter also performed to give an initial figure about the company before
conducting further research.

2.2 COMPANY PROFILE

URC Snack Foods Sdn Bhd

Tracing its roots all the way back to 1954, Universal Robina Corporation (URC) was
first established in the Philippines by Mr. John Gokongwei.
A trader and importer, Mr. John was already a successful entrepreneur back then. Yet
he looked beyond his current success and aspired to expand his business even further.
Hence, with his savvy business expertise and foresight, he decided to start off his own
production and distribution by constructing a corn milling plant to produce glucose
and cornstarch leading to the birth of Universal Corn Products (UCP), the first
linchpin of the company that would become the URC we know today.
Armed with eye for the future and great foresight, Mr. John realized that
manufacturing commodities while providing steady revenues did not guarantee lasting
customer loyalty. With this in mind, he began to diversify by producing and marketing
his own brand of consumer foods similar to the multinational companies in the
7

country, such as Nestle and Procter & Gamble thus conceiving the first local MNC
borne out of their best practices to shape URC to where it is today

2.3 CORPORATE HISTORY

1961:

Consolidated Food Corporation was established and the first locally

manufactured coffee blend, Blend 45 was born.

Blend 45 rose to become the largest-selling coffee brand in the market, even
beating out market leaders Caf Puro and Nescafe.

The birth of NIPS, a panned chocolate that soon became a staple in every
Filipinos childhood

1963:

Robina Farms began operations, beginning with poultry products.

1966:

Universal Robina Corporation was established, pioneering the salty snacks

industry with Chiz Curls, Chippy, and Potato Chips under the Jack n Jill
brand.

Other successful snack products were introduced to blaze through the industry
and become market leaders even till now, such as Pretzels, Piattos and Maxx.

Early 1970s:

Universal Robina Corporation entered the Commodities business through the

formation of Continental Milling Corporation for flour milling and production.

Early 1980s:

URC Sugar was born with the acquisition of three sugar mills and refineries.

Early 1990s:

URC forged into the plastics business with URC Packaging

Today, URC has carved its niche into the ASEAN region with a strong foothold in
Thailand, Malaysia, Indonesia, China, Hong Kong SAR, Singapore and Vietnam.

URC in Malaysia
URC Snack Foods (Malaysia) Sdn. Bhd was first incorporated in 1982 and
commercial operation started in 1984. The first product that was produced and sold by
URC Malaysia was Jack n Jill Potato Chips. Over the many years of continued
success, we have added other brands to our stable:

Roller Coaster

JIGS

Corn Curls
9

Cloud 9

NIPS

Chooey Choco

Magic

C2

URC Malaysia also exports to Singapore, Brunei, Taiwan, Hong Kong SAR,
Mauritius, Maldives, New Zealand, Australia, Indonesia, Vietnam, Cambodia,
Mongolia, Thailand, Nepal, India, Seoul Korea & Japan

2.4 VISION & MISSION

VISION
The vision for the URC Snack Foods Sdn Bhd is To be the best Malaysian food and
beverage company, with a powerful presence throughout the ASEAN region, carrying
a wide portfolio of delightful brands of exceptional quality and value, equipped with
efficient system and motivated people. We are committed in making lives a truly fun
experience.
MISSION
Passion To Win

10

We build organizational capability by being entrepreneurial and proactive, driven by a

sense of urgency and purpose. We continuously challenge ourselves to deliver worldclass brands and consistently rally our people to strive for excellence.
Dynamism
We cultivate a culture of innovation and productive working relationships. We
continously find ways to improve organizational and people capabilities to meet
constantly changing consumer needs.

Integrity
We are guided by transparency, ethics and fairness. We build the business with honor
and are commited to good governance. Our processes and products meet the highest
standards. We are credible in our dealings with both internal and external stakeholders
Courage
We seize opportunities in building long-term, sustainable business. We make tough
people and business decisions to ensure competitive advantage

11

CHAPTER 3: RESEARCH DESIGN

3.1 INTRODUCTION
This chapter demonstrates the methods of implementing a research work, primarily
delineating the research model, identifying the appropriate research design, discussion
on the possible data collection methods, targeting the right population- sample,
formulating questionnaires and measurement / scale, and identifying the appropriate
statistical analysis techniques.
3.2 METHODOLOGY
The Methodology design consists in setting up the approach that will allow the
evaluation team to answer the questions and to come to an overall assessment. To get
12

a better understanding and to conduct an investigation on the problem statement, a

rigorous research needs to be done. The initial part this research will lead to
information collection. Various methods of research can be implemented; such as
questionnaires, interviews, observations and documentation review which will
subsequently get this study meet it objective.
3.3 TYPE OF RESEARCH DESIGN
Based on the book written by Davis (1995) a research design is a framework or
blueprint for conducting the research project. It details the procedures necessary to
obtaining information needed to structure and solving the research problem. Research
design can be classified as exploratory research and conclusive research. In this study,
a conclusive research design will be employed (descriptive or causal) because it
typically more formal and structure compared than the exploratory research.
3.4 DATA COLLECTION
This research utilizes data from various sources such as primary data from
questionnaire survey and secondary data from company internal reports, annual
report, interim reports, periodical survey reports and etc. The purpose of answering
questions, the evaluation team collects data that are already available (secondary data)
and applies data collection tools With a view to obtaining fresh information (primary
data).
3.4.1 Primary Data
Primary data come from original sources and are collected especially to
answer our research question. A five-page questionnaire with 16
questions was devised and distributed to the sample respondents.
13

3.4.2 Secondary Data

As for the secondary data, it is collected internally and externally. Some
of the data, which is related, could be also obtain from various Internet
sources .From the Internet, there are thousands of sources about
inventory management. The data is also taken from the company
presentation slide and reports. Most importantly, references are made
from books and journals, which provide more elaborative information
with research base evidences. As such, it makes this research data and
more accurate and densely (Pandiyan and Chandran, 2009).

3.5 SAMPLING PROCEDURE & TECHNIQUES

The sampling technique used in this study is probability sampling, which is simple
random sampling technique. Probability sampling as defined by Sekaran (2003) as
each element in the population do have the equal probability or chance to be selected
as sample subject. Meanwhile, simple random sampling technique is referred as to the
collection of information from the member of the population who are randomly
selected from the sampling or population frame.
3.6 SAMPLING METHOD
In research investigation involving several hundred and even thousands of elements, it
would be practically impossible to collect data from, or test, or examine every

14

element. Even if it were possible, it would be prohibitive in terms of time, cost and
other human resources.
Therefore, for the questionnaires distribution, the researcher used the probability
sampling called simple random sampling techniques in order to select the respondent.
This is because it has the least bias and offers the most generalizability.
3.7 POPULATION & SAMPLE SIZE
According to Cooper and Schindler, (2001), population refer to the entire group of
people, events, or things of the interest that researcher wishes to investigate. The
population for this study refers to the workers of URC Snack Foods Sdn Bhd.
Sampling sizes refer to a number of units of respondents to be included in a study and
determined based on the size of the population. For this research, respondents will be
selected from the total population is 30 persons out of the total amount workers and
later answers all the questions in the questionnaires.
3.8 MEASUREMENT & SCALING TECHNIQUE
In order to have significant and reliable information that appropriate with the
fieldwork study, certain proper scaling technique must be adopted. Therefore,
questionnaires should include of the following scaling:
3.8.1 Closed- Ended Question- Dichotomous Scale
The respondents are required to choose either YES or NO answer.
Example:
Do you think that inventory is one of the important elements that can
affect company profit?
15

YES

NO

3.8.2 Open-Ended Question

The open-ended question allowing respondents to comment on any
aspects they choose. It would end with an expression of sincere thanks
to respondent. The part of the questionnaire could look the following.
3.9 DATA ANALYSIS TECHNIQUES
The process of analyzes data and finding analysis begins after all the data and
information had been gathered through the data collection method. Through this
process, the researchers determined the influence between the variable through
descriptive analysis in order to test all the research questions. Later the tabulated
results are interpretation. Microsoft Excel is used to calculate data and present more
accurate and quick result with graphical explanation.
3.9.1 Cross Tabulation
Cross tabulation used when the data will be presented in a form of
percentage and some are also presented in both frequency and
percentage. The important of cross tabulation is to indicate the
relationship or association of one variable to another variable of study.
3.9.2 Frequency distribution
The purpose of the frequency distribution is to obtain a count of the
number of responses associated with different value of one variable
where these amounts are usually in percentage.

16

3.9 SUMMARY
The primary reason for the study was to learn through administration of
questionnaires on the improvement of maintenance downtime in URC Snack Foods
Sdn Bhd. Baring in the mind the limitation of this study, only a small - scale
investigation could be executed due time constraint and confidentiality. More studies
of the same nature need to be conducted before any conclusive result can be claimed.

CHAPTER 4: DATA ANALYSIS AND FINDINGS

4.1 INTRODUCTION
This chapter presents the empirical of the study with regards to URC Snack Foods
Sdn Bhd. The analysis was obtained using only descriptive statistics, the data
explored further to understand the nature and characteristics of the data. It helps the
researches in selecting and using the appropriate analysis or procedures in subjecting
to the research objective.

4.2 MAINTENANCE SCHEDULE

Table 1: The effectiveness of preparing the maintenance schedule
17

Elements

Yes (%)

No (%)

Providing the daily checklist

66.67

33.33

Prepare the monthly service checklist

76.67

23.33

Record of all maintenance job

93.33

6.67

Chart 1: The effectiveness of preparing the maintenance schedule

18

100
90

93.33

90.00
83.33

80
70
60
50
40
30
20

16.67 Yes

No
10.00

10

6.67

Based on the chart 1 above, it show the effectiveness of preparing the maintenance
schedule in improving the maintenance downtime in terms of providing daily
checklist, the monthly service checklist and the record of maintenance job. The
highest number of worker agree that the most effectiveness using the maintenance
schedule is record all the maintenance job, followed by preparing the monthly service
checklist and lastly, providing the daily checklist. While the highest number of worker
that disagree the most effectiveness using the maintenance schedule is providing daily
checklist, then preparing the monthly service checklist and lastly, record all the
maintenance job.
4.3 MONITORING THE EFFICIENCY IN MANUFACTURING PROCESS
19

Table 2: The effectiveness of monitoring the efficiency in manufacturing process

Elements
Reduce the breakdown time
Reduce the minor stop for other production
line
Reduce the production losses

Yes (%)

No (%)

70

30

76.67

23.33

50

50

Chart 2: The effectiveness of monitoring the efficiency in manufacturing process

20

90%
80%
70%

76.67%
70.00%

60%

50.00%

50%
40%
30%

50.00%

30.00%
23.33%

20%
10%
0%

Yes

No

The chart above shows the effectiveness of monitoring the efficiency in

manufacturing process on reducing the breakdown time, reducing the minor stop for
other production line and reducing the production losses. Based on the chart there is
equally amount of percentages which is 50% that agreed and disagree by workers on
the effect of efficiency in monitoring manufacturing process which is reducing the
production losses. The highest agreed and disagreed by the workers on the effect of
efficiency in monitoring manufacturing process is reducing the minor stop for other
production line.
4.4 UPDATE OR SERVICE THE MACHINERY

21

Table 3: The effectiveness in updating or servicing the machinery

Elements

Yes (%)

No (%)

Preventing the machinery malfunctions

70

30

Providing a schedule for calibration

90

10

76.67

23.33

Using the right spare parts

Chart 3: The effectiveness in updating or servicing the machinery

22

100.00
90.00

90

83.33

76.67

80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00

16.67

10
Yes

23.33

No

0.00

Chart 3 above shows the effectiveness in updating or servicing machinery in

improvement of maintenance downtime. The highest workers agree that the best
indicator that this method will preventing the machinery malfunctions which is 90%.
Then, followed by providing a schedule for calibration which is 83.33% and lastly,
using the right spare parts with 76.67%. While the highest percentage of disagree is
23.33% which is in using the right spare parts, followed by providing a schedule for
calibration with 16.67% and lastly in preventing the machinery malfunctions with the
percentage of 10%.
4.5 IMPROVE MAN POWER

23

Table 4: Factors of man power that may improve the maintenance downtime.

Elements
Qualification / Education level
Experience
Training method

Yes (%)

No (%)

73.33

26.67

80

20

73.33

26.67

Chart 4: Factor that may improve the maintenance downtime.

24

Factor that may improve maintenance downtime

90
80

80
73.33

73.33

70
60
Yes

50

Percentage

No

40
30

26.67

26.67
20

20
10
0
Qualification/ Educational level

Training method

The chart 4 above shows the factor that may improve the maintenance downtime. The
highest factor agreed by the workers that may improve the maintenance downtime is
by experience worker which is 80%. Then, followed by the training and having high
qualification and educational level with the equally percentage of 73.33%. While, the
highest disagree percentage on the factor that may improve maintenance downtime is
by the training of worker and having high qualification and educational level with the
equally percentage of 26.67%. Then, the lowest disagree is by experience workers
which is 20%.
CHAPTER 5: RECOMANDATION AND CONCLUSION

25

5.1 INTRODUCTION
The previous chapter discussed the findings of the study, and gives a picture of
whether this study supported the purpose of research or otherwise. This chapter
summarizes the main points of the results and shows how they addressed the research
objectives. Recommendations are made based primarily on the research findings, and
from survey feedback and from relevant literature of similar case. The primary reason
for this study is to improve the poor maintenance downtime in URC Snack Foods Sdn
Bhd.

5.2 MAINTENANCE SCHEDULE

Maintenance schedule is one of the method to be used in order to improve the
maintenance downtime. Based on the research performed, I had identify that URC
Snack Foods Sdn Bhd need to use maintenance schedule that more effective to
improve their maintenance downtime. It is because; the maintenance schedule may
comprise of daily maintenance checklist, monthly service checklist; and record of all
maintenance job. All of those items will be further explained below.

5.2.1

Daily Checklist
26

Maintenance schedule may lead to daily checklist. The daily checklist can be
said as simple checking procedure just to check on the condition of the
machinery and others. There are many reasons to do the daily checking on
machinery or production line. One of the reasons is to improve the
maintenance downtime. My research found that the majority of the sample
workers agree daily checklist is one the effectiveness of maintenance schedule
that will reduce the maintenance downtime.

Recommendation
Based on our research, URC Snack Foods Sdn Bhd need the daily checklist in
order to reduce their maintenance downtime because it will lead to a better
take care of the equipment. By having a checklist, this will help to reduce a
mistake made by the worker by just memorizing what they should have done
daily in order to ensure the machinery is in a good condition. The daily
checklist also can act as a prove that the worker already perform their job
accordingly.

5.2.2

Monthly Service on Machinery

Maintenance schedule involves the monthly service on the machinery to help
the machinery and factories in industries as operate more effectively and
efficiently. The monthly service comprise on the service that should be done
once in a month just to ensure that the spare parts or the machinery are ready
to be used for the next period of month as the production will keep on running
and this may require a minor stop instead a major stop caused by the
27

breakdown of machinery. Based on my research, there are more than half of

sample workers agree that monthly service on machinery can be used by a
company to improve their maintenance downtime.

Recommendation
URC Snack Foods Sdn Bhd may use a computerised system that will remind
the workers to do the monthly service on the machinery. This will lead to a
proper system and the service will be conduct frequently as per recommended
by the management.

5.2.3

Record on every checklist or services

In order to have a the proves on what have been done by the maintenance or
production team, a proper documentation is needed. For every checklist or
services that have been done, the maintenance team should record all the work
done and it can be factory reference for any issue later on. Therefore, a proper
record and documentation is one of the main point that could be helping in
reducing the maintenance downtime.

Recommendation
28

Based on my opinion, URC Snack Foods Sdn Bhd may use a computerised
system to compile all the database or record so that it will be easier for the
management or any other members on duty to use the data as their reference.
The data or the record should be kept properly and should be done accordingly
in order to ensure that the service have been done and this will help to reduce
the downtime in maintenance

5.3 MONITOR THE EFFICIENCY OF MANUFACTURING PROCESS

Based on my research, a company need a consistent way of monitoring the

manufacturing process. This is because, the negligence of the worker by not
monitoring the manufacturing process may lead to downtime in the factory. This
is mean that the management and the maintenance team should have an initiative
to ensure that all production line are in good condition and not causing problem
to the other production line.
5.3.1

Reduce the breakdown time or malfunctions

Breakdown time or minor stops occurs due the machine is not able to produce
during

machine

related

technical

malfunction/failure/breakdown.

The

production environment, there are many disruptions, such as machine

breakdown, rush orders, and so on. Under these circumstances, the URC
Snack Foods Sdn Bhd does not meet customer demand. So, it is very
important to understand the effects of machine breakdown or malfunctions on
29

system throughput. My research found that 90% of the workers sample agreed
that Monitoring The Efficiency Of Manufacturing Process may lead to
reducing the breakdown time and minors stop that indirectly increase the
maintenance downtime.

Recommendation
Based on my research, URC Snack Foods Sdn Bhd needs to monitor the
efficiency or manufacturing process as a way to reduce the breakdown time
and minor stop in improving their company capacity. It is because, if a
machine breakdown occurs in a production system, throughput, which is one
of the performance measures, might change; therefore, production planners
must take precautions against this happening. Throughput is one of the most
significant performance measures in a production system. Companies need to
reach the target throughput which was planned before. While system
throughput is decreasing, customer needs cannot be met and deadlines have to
be revised by the production planners. So this method will help the company
to produce the product according to the customer demand.

5.3.2

Reduce minor stop from other production line.

The maintenance team / production team should have an initiative to reduce
the minor stop from other production line. This is because the minor stop may
lead to a downtime of the whole manufacturing process. Therefore, the person

30

in-charge should have plan if there are any problem on the production line,
they have to ensure that it will not affected the overall manufacturing process.
Recommendation
In increase the maintenance downtime, URC Snack Foods Sdn Bhd need to
monitor the efficiency of manufacturing process in order to reduce the minor
stop from other production line and implement preventive maintenance
schedule that may improve their maintenance downtime because advanced
control systems control the process as each variable relates to overall
productivity or effectiveness. These systems are not single-loop controls, but a
multi-variable envelope representing the constraints of pressure, temperature,
and other factors. Within the envelope, the process is continuously maximizing
effectiveness. They are especially valuable where production targets or the
quality and availability of raw materials can all change relatively quickly, so
that the operating constraints and the scope for improvement vary from day to
day and indirectly may increase the maintenance downtime of company.

5.3.3

Reducing the production losses.

Production losses can impact small and large companies, and they usually
result from unexpected problems that arise during what should be a routine
manufacturing process. Time is added to the process, or the number of items
produced falls short of goals, because of issues tied to machinery
malfunctions, supply shortages, human error, weather and other issues that

31

companies have varying abilities to control. However, measures can be taken

to minimize losses, along with their financial impact, through proper planning.
My research found that half of the sample workers agreed that monitoring the
efficiency of manufacturing process many reduce the production losses that
will increase the maintenance downtime.

Recommendation

In reducing their maintenance downtime, URC Snack Foods Sdn Bhd may
monitor the efficiency of manufacturing process to reduce the production
losses. By monitoring the production line, it may reduce the machine losses
which, in others word the machine can move smoothly without any breakdown
time. So, when machine move smoothly, the maintenance downtime also can
be improved and the production losses can be reduced. Moreover, by
monitoring the manufacturing process, it also may improve the efficiency of
machine. The efficient machine indirectly may reduce the production losses.

5.4 UPDATE OR SERVCE THE MACHINERY

The machinery itself act as the heart of the company and the production line.
Without the machine, it is impossible for the company to produce the products
according to customer demand. This is because, the company will bear a high
cost of production if theyre depending on the man power. Instead of that, they

32

could just have a machine that will bring a better margin for the company.
Therefore, a proper maintenance and service for the machinery should be done
regularly to prevent it from the malfunction of the machine and prevent
production losses from the downtime.

5.4.1

Preventing machinery malfunction

The breakdown of machinery could lead to a longer period of downtime in
maintenance. Therefore, the management together with the maintenance team
should have an initiative to always find ways to ensure that the machine keep
on running accordingly so that the production can meet the customers demand.
There are few things that can be done as a ways of preventing the malfunction
or breakdown of the machinery. The negligence by maintenance or production
team on this matter may lead to serious downtime and causing production at
the same time too. However, the servicing of machinery should be done
regularly and followed by a schedule so that the maintenance team would have
a proper time table for the whole production process.

Recommendation

33

The maintenance team should conduct the maintenance services on the

machinery regularly. This is to ensure that the machine is in a good condition
and preventing any malfunction during production. They can also find out if
there is any problem on the machine during the servicing period. There should
be a proper schedule for the maintenance team to do the servicing so that they
would not miss the actual date to service the machine.

5.4.1

Calibration for machines

Most of the worker agreed that calibration of the machine shall be done in
order to ensure that the production line can run smoothly and not causing any
trouble during manufacturing. They believe that by conducting the calibration,
the machine will operate better and would not causing any problem to the
worker. The failure of not conducting the calibration may lead to a mistake
during the manufacturing process.

Recommendation

After have identified the problem and collecting data, it have come into
conclusion that the maintenance team should propose to management to hire
and body or authorised company to do the calibration on the machinery. This
is because different type of machinery may require a proper calibration
process and the maintenance team may not have the ability as such. Therefore,
upon approval by the company, maintenance team should prepare a schedule

34

for the calibration process to be done periodically. This in return will improve
the maintenance downtime and enhance the manufacturing process.

5.4.3

Using the right spare parts for the machinery

The right materials or spare parts to be used in machinery or production line
will lead to an efficient manufacturing process. Therefore, the maintenance
team should choose the right materials that suitable to the machine

Recommendation
In order to improve the maintenance downtime, URC Snack Foods Sdn Bhd

5.5 STAFF ACCOUNTABILITY

35

The employee accountability is the responsibility of employees to complete the

tasks they are assigned, to perform the duties required by their job, and to be
present for their proper shifts in order to fulfil or further the goals of the
organization. If tasks are not completed and functions of the job are not performed
properly, then that employee will also be responsible for dealing with the
repercussions. Analysis from the research found that some of the staff had limited
knowledge and expertise on their duties or field. This situation will affect on the
maintenance downtime that may produce by a company. Further explanations on
staff accountability are as follows.

5.5.1

Qualification / Education Level

Education level can be academic qualifications such as A-levels and ASlevels, International Baccalaureate (IB) Diploma Programme and Scottish
Higher/Advanced Higher. While, Qualification can be expertise and skills that
have by workers to help develop their career in a specific industry; they might
choose a vocational or professional qualification. Vocational and professional
qualifications are offered at many levels such as The Diploma, National
Vocational Qualifications (NVQs) and Scottish Vocational Qualifications
(SVQs) and HNDs and other higher education. According to my research,
more than half of the workers agreed that an employee need to have
qualification and higher educational level in helping a company to improve
their maintenance downtime.

36

Recommendation
In order to increase their maintenance downtime, employer of URC Snack
Foods Sdn Bhd needs to hire a qualified and educated person to work on the
best interest their company because the qualification and educational level
acquired by workers is a property for them that represents their skill, ability or
reputation. Their skill, ability or reputation becomes priority in conducting the
operation of company. So, URC Snack Foods Sdn Bhd needs to arrange a
good decision to meet the employee that accompany with the requirement.

5.5.2

Experience
Experience is the knowledge or mastery of an event or subject gained through
involvement in or exposure to it. It refers more on-the-job training rather
than book-learning. Terms in philosophy, such as "empirical knowledge" or "a
posteriori knowledge," are used to refer to knowledge based on experience. A
person with considerable experience in a specific field can gain a reputation as
an expert. Based on my research, experience plays an important role to
improve the maintenance downtime. My research found that the most effective
factor that may increase the maintenance downtime is workers experience.

Recommendation
URC Snack Foods Sdn Bhd needs to hire more experiences workers to
conduct their production activities because the experiences workers are more
37

efficient in performing their work such as conducting machine activity.

Moreover, the experiences workers have a lot of knowledge that can
contribute to company and also can be share to others employee. They also
can perform many jobs in one time that it can help company to reduce the cost
of labour instead of increasing the maintenance downtime.

5.5.3 Training
Training is

teaching,

or

developing

in

oneself

or

others,

any skills and knowledge that relate to specific useful competencies. Training has
specific

goals

of

improving

one's capability,

capacity, productivity and performance. In addition to the basic training required

for a trade, occupation or profession, observers of the labour-market recognize to
maintain, upgrade and update skills throughout working life. People within many
professions and occupations may refer to this sort of training as professional
development. Based on my research, there are 73.33% of workers agree that the
training also one of the factor to improve the maintenance downtime.

38

Recommendation

In improve the maintenance downtime, URC Snack Foods Sdn Bhd need to train
their workers because trough training, the workers will be more motivated to
perform their job more accountability. There are several ways of train that can be
conducted by them such as classroom test, train by experience trainer and send
workers for conferences. Moreover, besides the workers will work more
effectively, the maintenance downtime of the company also can be increase.

5.6 CONCLUSION
This paper has surveyed a number of issues relating to different aspects of
solutions that can be taken by URC Snack Foods Sdn Bhd such as maintenance
schedule; overall equipment effectiveness; data envelopment analysis (DEA) and
equipment qualification; and staff accountability to improve the poor maintenance
downtime and reach the customer demand.
Some of the main data issues related to improve the capacity production were
identified and the recommendations for the problem also have been highlighted.

39

REFERENCES

Cooper D.R and Schindler P.S., (2001) Business Research Methods, 7th Edition, New
York, McGraw-Hill Irwin.
Davis D.,(1995) Business Research for decision Making, 4th Edition, United States of
America, Duxbury Press.
Hackey C., (2003) Doing Research Projects in Marketing, Management and
Consumer Research, London, Routledge, Taylor & Francis Group.
Hussey J ., and Hussey R., (1997) Business Research : A Practical guide for
undergraduate and postgraduate students, New York, Palgrave.
Koop G., 2000) Analysis of Economic Data, England, John Wiley & Sons, Ltd.
Moore, N. (2006) How to do Research : A practical guide to designing and managing
research projects 3rd Edition, London, Facet Publication.
Partington D., (2002) Essential Skills for Management Research, London, SAGE
Publication.
Sekaran U., (2004) Research Methodology for Business : A Skill Building Approach
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University Publication- UiTM, Shah Alam, Malaysia.
URC Snack Foods Sdn Bhd, Annual Repor,t 2009
40

URC Snack Foods Sdn Bhd, Annual Report, 2010

QUESTIONNAIRES

The Question is divides into four parts. Answer the entire question below.
Gender:

Male:

Female:

Range of age:

20-30 :

41-45:

31-40:

Above 45:

1.0 MAINTENANCE SCHEDULE

Q1: If the company provide the daily maintenance checklist, they can improve the
maintenance downtime?
_____________________________________________________________________
_____________________________________________________________________

41

Yes

No

Q2: Did the monthly service checklist may improve the maintenance downtime?
_____________________________________________________________________
_____________________________________________________________________

Yes

No

Q3: Did the record of previous maintenance report will help to reduce the
maintenance downtime?
_____________________________________________________________________

Yes

No

42

2.0 Monitoring The Efficiency Manufacturing Process

Q4: By monitoring the other manufacturing process in production line, will it reduce
the maintenance downtime or minor stops?
_____________________________________________________________________

Yes

No

Q5: Did the efficiency of manufacturing process may reduce the production losses?
_____________________________________________________________________

Yes

No

43

Q6: Lack of supervising in production line or other process of manufacturing may

lead to breakdown or downtime
_____________________________________________________________________

Yes

No

3.0 Update or Servicing the Machinery

Q7: Servicing or updating the machinery will prevent the malfunctions of the
machine?
___________________________________________________________________

Yes

No

Q8: Did the calibration help to reduce maintenance downtime?

_____________________________________________________________________

Yes

No

44

Q9: By using the right spare parts, will it help in reducing the maintenance breakdown
or machinery breakdowns?
_____________________________________________________________________

Yes

No

4.0 Proper Training & Man Power

Q10: Did past experience of the worker will influence in reducing the maintenance
downtime?
_____________________________________________________________________

Yes

No

Q11: Did training is a method that a company can be use to increase the ability and
expertise of their workers?
_____________________________________________________________________

Yes

No
45

Q12: The employee Qualification and education level is staff accountability. Did them
will influence the maintenance downtime?
_____________________________________________________________________

Yes

No

46

47