Essays on The Car Manufacturing Industry in Malaysia Case Study

Download full paperFile format: .doc, available for editing

The paper 'The Car Manufacturing Industry in Malaysia" is a good example of a management case study. The car  manufacturing industry in Malaysia started in the early 1960s and it has since grown to a huge industry (Business Monitor International Ltd, 2008). This was after Ford which is a major company in the industry began its operations in the country. The growth of the industry has since attracted several manufacturers in the country including the large companies like Toyota which holds about 19% of the market share in Malaysia. The rapid growth of the industry is also attributed to government support for the sector.

The government was actively involved in the industry during the early years as part of the national industrialization process. Pronton which is the largest automobile industry in the country was established in 1983. It has also experienced a lot of growth and development and it occupies a large markets share in the country. The company imports some of the products for manufacturing the automobiles (Datamonitor, 2003). It is also important to note that the company has also put in place growth strategies that have played a significant role in stimulating growth.

The paper discusses the car manufacturing industry in Malaysia in relation to Pronton which is the largest automobile in Malaysia. About Pronton Pronton is the largest automobile manufacturer in Malaysia and South East Asia. This is because of the growth strategies that have been put in place by the management of the company. Currently, the company occupies 862 000 square meters of space. The company is also a large scale employer in Malaysia and it employs 4,400 people with 2,400 being direct workers.

The production capacity of the company is 15,000 per year which translates to about 36 units per hour. A multi-model production system has been put in place in the company for the purposes of enhancing the production rate. Four main processes are involved in the production process which is also important in terms of ensuring efficiency within the production process. The first process involves the stamping of the body parts which is usually followed by assembling of the stamped body parts. Painting of the car body shell is the third step while the final assembly is the last process of production.

It is also important to note that the company has embraced modern production methods in its operations. All the production process is usually carried out through the use of automation and robots. This has played an important role in terms of increasing the efficiency of the company. The production process in the company is usually carried out in shifts for the purpose of meeting the demands of the customers. The company usually maintains a close relationship with the other stakeholders for the purpose of enhancing the production process (Ahmed, et al, 2008). Production Methods The production methods during the manufacturing process play an important role in terms of meeting the aims and objectives of the company.

Pronton has been able to meet its demand due to the use of the just in time method of production. This method is used for the purpose of reducing wastages during the production process. Cost-effectiveness has also been achieved through the use of the method during the production process.

The just in time method of production enables the company to required quantity of parts at the required time (Simpson, et al, 1998). The car parts are usually produced using a minimum amount of labor, human resources and equipment. This plays an important role in terms of reducing wastages which always leads to losses for a company during the manufacturing process. The use of the just in time method of production in the company is also dependant on the relationship with the suppliers. This is also considering that the company is at times faced with difficulties in obtaining some of the required raw materials.

The company adopted the just in time method of production as it encourages simplicity during the production process. This method has also played an important role in terms of ensuring that the demands of the customers are met (Rasiah, 2009). A close working relationship with the suppliers has also been established through the use of the production method. The use of the production method, however, exposes the companies to some weaknesses as it does not solve some of the production problems.

References

Ahmed, Z. et al. (2008). A Conceptual Framework for Developing-Country Transnationals: PRONTON Malaysia. Thunderbird International Business Review Vol. 50, No. 1Wiley InterScience Business Monitor International Ltd. (2008). SWOT Analysis. Malaysia Defence & Security Report.

Kasim, S. et al. (2010). Suuply Chian Managenement Practices of an Automobile Manufacturer in Malaysia. Asia-Pacific Management Accounting Journal, Volume 5 Issue 1, 69-88, Datamonitor. (2003). Malaysia Country Profile. Datamonitor.com.

Simpson, M. et al. (1998). Case study: transitory JIT at Pronton Cars, Malaysia. International Journal of Physical Distribution & Logistics Management, Vol. 28 No. 2, MCB University Press.

Tong, T. et al. (2012). Pronton: Its Rise, Fall, and Future Prospects. Asian Case Research Journal Vol 16, Issue 2, 347-377. World Scientific Publishing Co.

Accounting Research Institute & Faculty of Accountancy and UPENA, Universiti Teknologi MARA, Malaysia.

Sun, S. et al. (2011). A study of the Malaysian Automobile Industry: Is a brand Alliance the Answer? American Marketing Association.

Kaoru N, et al. (2013) Liberalization, Industrial Nationalism, and the Malaysian Automotive Industry, Global Economic Review: Perspectives on East Asian Economies and Industries, 42:2, 113-134. School of International Development.

Rasiah, R. (2009). Technological Capabilities of Automotive Firms. Asian Economic Papers 8:1. The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Wad, P. (2009). The automobile industry of Southeast Asia: Malaysia and Thailand. Journal of the Asia Pacific Economy Vol. 14, No. 2. Routledge publishers.

Hooi, W. L. (2006). The adoption of Japanese recruitment practices in Malaysia. International Journal of Manpower Vol. 29 No. 4, Emerald Group Publishing.

Download full paperFile format: .doc, available for editing
Contact Us