The Malaysia Smart Manufacturing Awards 2023 (MSMA 2023), co-organised by MIDF, Bizsphere, and Smart4wrd, and endorsed by the Ministry of Investment, Trade, and Industry Malaysia, concluded with significant insights and observations from the nominations. The awards ceremony, held on 24th July 2024 in the presence of Yang Berhormat YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz Minister of Investment, Trade, and Industry Malaysia, saw attendance from heads of government agencies, business leaders, manufacturers, and stakeholders of the smart manufacturing ecosystem. SIRIM was the Smart Manufacturing Ecosystem Partner of MSMA 2023 with FSBM MES Elite, SHRDC, RAM, SmartB Solutions, EcoWorld, Avis and Teibto as sponsors.
Smart Manufacturing Inspires Family Business Succession
- Tuesday, 13 August 2024 20:26
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During the event, Mr. Yap Keng Teck, Managing Consultant of Bizsphere and Programme Head of Smart4wrd, shared 10 key findings and observations from the nominations. These insights are crucial for the business community to understand the significant impact and potential of smart manufacturing on Malaysian manufacturers.
Key Findings and Observations:
- Industry4WRD Programmes: A Key Motivation to Kick-Start the Smart Manufacturing Journey
The Industry4WRD Readiness Assessment (RA) has been instrumental in providing manufacturers with a comprehensive understanding of their current capabilities and identifying areas for improvement. This assessment helped companies discover pain points that could be effectively addressed using Industry 4.0 technologies. Additionally, the Industry4WRD Intervention Fund has proven to be a significant motivator, enabling companies to invest in smart manufacturing solutions.
- Inspiring Family Business Succession
Smart manufacturing initiatives have motivated younger family members to join and modernize their family businesses, ensuring continued growth and innovation through generational succession. This new wave of technology has allowed younger members to engage in transformative projects, demonstrating their capabilities and driving innovation within the company. It has rejuvenated interest in manufacturing and provided a sense of purpose and challenge for the next generation.
- Implementation Can Be Achieved at a Reasonable Cost
Contrary to the perception that Industry 4.0 implementations require substantial investments, many projects have been successfully executed for less than RM 100,000. Notably, some mid-tier companies have managed to spend even less than SMEs while achieving high returns on investment. These examples highlight that cost-effective solutions are available, making smart manufacturing accessible to a wider range of businesses.
- Operators Feel Proud and Motivated to Work
The integration of Industry 4.0 technologies has transformed the roles of operators, elevating their responsibilities and engagement. For instance, employees who were previously seen as mere data entry personnel are now analyzing data to make informed decisions. This shift has boosted their pride and motivation, as they now play a crucial role in the decision-making process and contribute directly to the company's success.
- Significant Increase in Production Capacity
Adoption of Industry 4.0 technologies has led to remarkable improvements in production capacity. Some companies reported over a 60% increase in output by implementing smart manufacturing solutions in just one of their processes. These substantial gains demonstrate the potential for Industry 4.0 to revolutionize production efficiency and scalability.
- New Business Opportunities and Revenue Streams
Several companies have leveraged their internal expertise and operational know-how to develop proprietary smart manufacturing systems. These systems have not only optimized their own operations but also been productized and offered as solutions to other manufacturers in similar sectors. This approach has opened up new business opportunities and created additional revenue streams, showcasing the innovative potential of Industry 4.0.
- Implementation Possible Without an Internal Technical Team
Successful implementation of Industry 4.0 projects has been observed even in companies lacking internal technical expertise. These companies have collaborated with external technology providers and consultants to execute projects with significant impact. This finding underscores the feasibility of adopting smart manufacturing solutions without the need for a dedicated in-house technical team.
- Involvement of Company Leadership Guarantees High Success
The active involvement of company leadership has been a critical factor in the success of Industry 4.0 projects. Initiatives championed by top executives and heads of companies have shown markedly better results. Leadership engagement ensures strategic alignment, resource allocation, and sustained commitment, driving the successful adoption of smart manufacturing technologies.
- Data Utilization for Intelligence Yet to Be Maximized by Many
While many nominees have successfully adopted Industry 4.0 technologies and generated valuable data, there is still significant untapped potential in data utilization. Minimal efforts have been made to analyze and leverage this data for strategic business decisions. This presents an opportunity for companies to enhance their competitive edge by fully harnessing data-driven insights.
- Laying the Foundation Towards ESG Compliance
The convergence of Information Technology (IT) and Operational Technology (OT) facilitated by Industry 4.0 has greatly enhanced visibility and traceability within manufacturing processes. This integration supports Environmental, Social, and Governance (ESG) compliance by enabling better monitoring, reporting, and management of sustainability efforts. Companies are now better equipped to meet ESG standards and demonstrate their commitment to sustainable practices.
Award Winners:
The MSMA 2023 recognized the following companies for their outstanding achievements in smart manufacturing:
Chuan Sin Sdn Bhd
CTRM Aero Composites Sdn Bhd, a member of DRB-Hicom
ViTrox Technologies Sdn Bhd
Pet World Nutritions Sdn Bhd
Ingress AOI Technologies Sdn Bhd
HICOM-Teck See Manufacturing Malaysia Sdn Bhd, a member of DRB-Hicom
PHN Industry Sdn Bhd, a member of DRB-Hicom
Cooltec Industries Sdn Bhd
P. A. Food Sdn Bhd
CPI (KL) Sdn Bhd
Hernan Corporation Sdn Bhd
Sydney Cake House Sdn Bhd
Famax Technology (M) Sdn Bhd
Ngeam Engineering Works Sdn Bhd
Markaids (M) Sdn Bhd
Setsu Precision Technology (M) Sdn Bhd
Promooi Plastic Industries Sdn Bhd
Q-FIT Sdn Bhd
Green Borneo Industries Sdn Bhd
Standard Kitchen Sdn Bhd
Emerging EPC Sdn Bhd
Sincerely Dyeing & Finishing Sdn Bhd
Inari Integrated System Sdn Bhd
Mr. Yap Keng Teck stated, "The findings from the MSMA 2023 nominations underscore the transformative power of smart manufacturing. It is heartening to see the tangible benefits realized by manufacturers, from increased production capacity to new business opportunities. These success stories serve as an inspiration for others in the industry to embark on their smart manufacturing journey."
The MSMA 2023 has not only recognized excellence but also highlighted the significant strides made by Malaysian manufacturers in embracing Industry 4.0, setting a strong foundation for the future of manufacturing in Malaysia.
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