APPLICANTS COMPANIES OVERVIEW

1. GENERAL INFORMATION

Company Name : PEPS-JV (MELAKA) SDN BHD Year Established : 2006

Address : Lot 210, PT 2229, Jalan Hicom Pegoh 7, Kawasan Perindustrian Hicom Pegoh, 78000 Alor Gajah, Melaka.

Email : zulkefly@epmb.com.my;
Tel : 03-7803 6663 Fax : 03-7804 9761
norani@epmb.com.my;
No. of Employees: 512

Management : 96 Technical : Admin :

Permanent Staff : Temporary Staff : Total : 512
Type of Company :

Rubber [ ] Metal [] Plastic [ ] Ceramic [ ] Painting [ ] Electrical/Electronics [ ]

Others : ___________
Status of Company : Quality certification:

Bumiputera [] Non-Bumiputera [ ] ISO 9001 [] ISO/TS 16949 [] VDA 6.X [ ] EMS14001 [ ]
OHSAS18001 [ ] Others : __________

2. CURRENT OPERATIONAL STATUS

Average

Excellen
Area

Good
Poor

Poor
Very

Items
(1)

(2)

(3)

(4)

(5)
t
1) Effectiveness and quality of the initiatives and processes that
have been put in the place by senior management to drive 1 2 3 4 5
Leadership And Management

continuous improvement
2) Effectiveness of senior management to display a sense of vision 4 5
1 2 3
and purpose of the organization
3) Effectiveness of the organization to monitor achievement of the 4
1 2 3 5
strategic business plan
4) The level of management experience within manufacturing and 5
1 2 3 4
automotive industries
5) The organization’s strategic planning process and the
effectiveness of any related implementation plans to support 1 2 3 4 5
strategic planning
1) The quality and nature of financial budgeting process and 4
1 2 3 5
Financial Practices

reviews that being practicing by the organization

2) Practice on preparing a proper financial reporting to provide a 3
1 2 4 5
relevant and timely information to inform decision maker.
3) The extent to which the organization’s financial information 3
1 2 4 5
suggests the organization is financially sustainable
4) Effectiveness of monitoring and managing process of cash and 4
1 2 3 5
funding
1) Usage of all 5S elements and self-evident throughout the 3 5
1 2 4
Manufacturi

operation (factory & office)

ng and

2) Implementation of Material & Information Flow Chart for all new 1 2 3 4 5

products and layout
 Qu 3) Usage of cellular production in all appropriate locations
alit
1 2 3 4 5
y 4) Usage of quick changeover and/or preventives maintenance
Per 1 2 3 4 5
programmes
for
ma 5) Visual tracking of performance to target 1 2 3 4 5
nce
6) Review on the quality, include actions and visual monitoring in 4 5
1 2 3
the shopfloor
7) Effectiveness of assigned KPIs and visually monitoring in 5
1 2 3 4
encourage participation by the employee
8) Visibility of work instructions and inspection standards on all 4
1 2 3 5
stations with up-to-date data
9) Tracking system for rejection control 1 2 3 4 5
10) Quality performance – in house rejection rate 1 2 3 4 5
11) Entire company/factory safety control 1 2 3 4 5

TOTAL : 84/100

3. CONCLUSION

We, Malaysia Automotive, Robotics, and IoT Institute (MARii) are hereby *recommend / not
recommend the company named PEPS-JV (MELAKA) SDN BHD for the scheme titled “SFSAM-i
SCHEME” under Malaysian Industrial Development Finance Berhad (MIDF). Kindly be informed that
this recommendation is subjected to the pre-requisite condition in which PEPS-JV (MELAKA) SDN BHD
shall participate Lean Production System Program to improve their manufacturing process.

Thank you.

DATO’ MADANI SAHARI

CHIEF EXECUTIVE OFFICER
MALAYSIA AUTOMOTIVE, ROBOTICS AND IoT INSTITUTE
APPLICANTS COMPANIES OVERVIEW
MARii was assigned to assess the manufacturing operation and process/technical aspects of PEPS-
JV (Melaka) Sdn. Bhd. in their production of press part welding assembly for motor vehicles. This is
with respect to the company desire to invest in a “New Production Assembly Line” to enhance their
production capacity and technological upgrading.
Due to the Coronavirus Pandemic and the Movement Control Order that was implemented by the
government from 18 March – 14 April 2020, the overview of this evaluation is based on the
information shared by Peps-JV (Melaka) Sdn. Bhd. and the visit by MARii to Peps-JV (Melaka) Sdn
Bhd on 12th July 2019 to assess their manufacturing operation for their application on the MIDF
SFSAM-i Scheme.

EVALUATION FOCUS
1 Technical reasons for the proposed investment and upgrading

1.1 PEPS-JV will soon be serving Honda Malaysia in supplying additional spot-welding
assembly components for the next version of Honda City model (Hatchback Type). Both
projects carried the same main code which is T00A; however, the differences were:
(1) 2019: T00A 4 Door (4Dr) Full Model Change (FMC) Sedan type.
(2) 2020: T00A 5 Door (5Dr) New Model (FMC) Hatchback type.

The previous application for the MIDF SFSAM-i Scheme is for the project T00A 4 Door (4Dr)
Full Model Change (FMC) Sedan type. Since Peps-JV has been rewarded the rear
“platform” modules, there are differences in part shapes & processes. The current assembly
line now serving the current model which will still be in operation as Honda will continue
produce the model.

The new investment is to produce the new assembly line for the upcoming Honda City
model (Hatchback Type).

1.2 The new assembly line to be invested will increase the productivity due to high efficiency
and lesser manpower and higher output compared to current assembly line. The new Direct
Production manpower is lesser than old model due to no Quality Gate (QG) and spatter
removal activities. For current assembly line, the same modules will require QG (3 pax) &
Spatter Removal (5 pax). With the new robot version and from Peps Y Tec technology in
Kedah, Peps-JV have introduced Built-In-Quality (BIQ) i.e. automated fool proof jigs, and
Peps-JV have also tuned and optimized robot setting resulted in no spatter products. Thus,
no manpower for spatter removal and QG required.
 1.3 This new assembly line will also enhance manpower multitask skill, Built-In-Quality mindset,
product quality, technology know-how & efficient production.

2 Peripheral support assessment

2.1 Installation space provision
The new assembly line will be installed at Lot 211, Peps-JV Pegoh Plant. It is actually a new
factory which was built for expansion of the company operation and the location of the new
factory is only 1.5KM from their main customer (Honda Malaysia).
In this respect space availability is a non-issue for this investment.
2.2 The management is aware of the government drives to enhance Malaysia manufacturing to
Industry 4.0 which in their opinion this new investment is one step towards this direction.
2.3 Technical capability

PEPS-JV has been in operation for more than 10 years and as such their knowledge and
skills on the cell operation for spot-welding assembly is well established.

Quality management system is also well established as the company has been the vendor
for the local OEM whom have demanded quality system such as Lean Production System
(LPS), 5S etc are in place.

On the materials supply PEPS-JV only serves as spot-welding assembly services where all
the child parts for the assembly are supplied by the OEM (Honda Malaysia). As such quality
and cost of child parts for the spot-welding work can be easily controlled.

2.3 Management

The production operation of the company is run by experience personnel which mostly are
loyalist that had stayed with the company for more than 10 years.

3 Improvement foreseeable
It is encouraging to note that the management has shown high level of interest to enhance their
company operation towards meeting “Industry 4.0” criteria. Their keen interest to invest in a more
advance/upgraded version of their cell assembly line demonstrates their interest to further
enhance their manufacturing capability and efficiency in this direction.

RECOMMENDATION
Based on the above prescribed observations, which deem to be crucial factors for the enhancement
exercise of the company, MARii did not find any crucial weakness that will retard the company current
production performance. The investment of the new upgrade version of this spot-welding assembly
cell will actually enhance their production capability further. The new investment is recommended.