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.

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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

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was going through an underproduction due to the fact that demand is more than the

supply. That’s 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 process Automation System (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.

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Problem Statement

Maintenance Downtime

URC Snack Foods Sdn Bhd

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12. Qualification / Education Level

11. Experience

10. Training method

1. Prepare the daily checklist

2. Prepare the monthly service checklist

3. Record the schedule

4. Man Power1. Maintenance

Schedule

(Dependent Variable)

Improvement The Maintenance Downtime

3. Update or Service the Machinery

2. Monitor the Efficiency of

Manufacturing Processes

9. Preventing machinery malfunctions

8. To do a schedule for calibration

7. Use the right spare parts

4. Reduce the breakdown time or reduce minor stops

5. Reduce the minor stop from other production line

6. Reducing the production losses

1.3 REASERCH MODEL

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.

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1.7 LAYOUT OF THE PROJECT PAPER [FINAL REPORT]

CHAPTERS SUBJECT

1 INTRODUCTION

2 ORGANIZATION BACKGROUND

3 RESEARCH DESIGN

4 DATA ANALYSIS AND FINDING

5 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

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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

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.

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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 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 Café Puro and Nescafe.

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

Filipino’s 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.

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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:

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Roller Coaster

JIGS

Corn Curls

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

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

sense of urgency and purpose. We continuously challenge ourselves to deliver world-

class 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

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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

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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

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

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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.

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.

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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

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.

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Example:

Do you think that inventory is one of the important elements that can

affect company profit?

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

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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.

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

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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

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

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Providing daily checklist Prepare the monthly service checklist

Record of all maintenance job0

10

20

30

40

50

60

70

80

90

100

66.67

76.67

93.33

33.33

23.33

6.67

Yes No

Per

cent

age

%

Elements

Based on the chart 1 above, it show the effectiveness of using Process Automation

system in improving the maintenance downtime in terms of Flexible Manufacturing

System, computerized technology and software and automatically control the

Equipment. The highest number of worker agree that the most effectiveness using the

process Automation system is automatically control the Equipment, followed by

computerized technology and software and lastly, flexible manufacturing system.

While the highest number of worker that disagree the most effectiveness using the

process automation system is flexible manufacturing system, then computerized

technology and software and lastly, automatically control the equipment.

4.3 MONITORING THE EFFICIENCY IN MANUFACTURING PROCESS

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

Elements Yes (%) No (%)

Reduce the breakdown time or reduce

minor stop in production line

70 30

Reduce the minor stop for other

production line

76.67 23.33

Reduce the production lossess 50 50

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

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Reduce the breakdown time or reduce minor stop in

production line

Reduce the minor stop for other production line

Reduce the production losses.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

70.00%

76.67%

50.00%

30.00%

23.33%

50.00%

Yes

No

Per

cent

age

Elements

The chart above shows the effect of overall equipment effectiveness (OEE) whether

on reducing the breakdown time or reduce minor stops; Improved the regulatory

control and implement preventive maintenance schedule; 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 OEE is reducing the production

losses. The highest agreed by the workers on the effect of OEE is in improved the

regulatory control and implement preventive maintenance schedule. While, the

highest disagreed by the workers is in reducing the production losses.

4.4 UPDATE OR SERVICE THE MACHINERY

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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

Using the right spare parts 76.67 23.33

Chart 3: Data Envelopment Analysis indication in improve maintenance

downtime.

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collecting data Analyze data analysis Problem solving, taking action and monitoring

0

10

20

30

40

50

60

70

80

90

100

70

90

76.67

30

10

23.33

Yes

No

Per

cen

tage

s

Elements

Chart 3 above shows Data Envelopment Analysis indication in improve maintenance

downtime. The highest workers agree that the best indicator that a company may use

is analyzing data analysis which is 90%. Then, followed by problem solving, taking

action and monitoring which is 76.67% and lastly, collecting data with 70%. While

the highest percentage of disagree is 30% which is in collecting data, followed by

problem solving, taking action and monitoring with 23.33% and lastly in analyze data

analysis with the percentage of 10%.

4.5 IMPROVE STAFF ACCOUNTABILITY

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Table 4: Factor that may improve the maintenance downtime.

Elements Yes (%) No (%)

Qualification / Education level 73.33 26.67

Experience 80 20

Training method 73.33 26.67

Chart 4: Factor that may improve the maintenance downtime.

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Qualification/ Educational level

Experience Training0

10

20

30

40

50

60

70

80

90

Factor that may improve maintenance downtimePe

rcen

tage

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

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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 PROCESS AUTOMATION SYSTEM

Process Automation system is used to automatically control a process such pulp

factories, paper and oil refineries. The process Automation system often uses a

network to interconnect sensors, controllers, operator terminals and actuators. Based

on the research performed, I had identify that Dutch Lady Milk need to use process

Automation system that more effective to increase their maintenance downtime. It is

because; the process automation system may automatically control the equipment,

computerized technology and software; and flexible manufacturing system. All of

those items will be further explained below.

5.2.1 Automatically Control Equipment

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Process Automation System may lead to automatically control equipment.

Automated machinery may range from simple sensing devices to robots and

other sophisticated equipment. Automation of operations may encompass the

automation of a single operation or the automation of entire factory. There are

many reasons to automate. One of the reasons is to improve the maintenance

downtime. My research found that the majority of the sample workers agree

automatically control Equipment is one the effectiveness of process

automation system that will increase the maintenance downtime.

Recommendation

Based on our research, URC Snack Foods Sdn Bhd need automate in order to

increase their maintenance downtime because it will lead to automatically

control the equipment. When, the equipment moving automatically, the cost

per production will decrease. So, a lot of capacity can be produced by a

company instead of low cost. Moreover, when equipment controlled

automatically, less labour will be used. This may lead to smooth of the

production activities because labour performance is not same as the machine

performance. Machine will move consistently but labour need to motivate and

higher supervised in perform their job very well. Besides that, using of labour

may lead to high risk of wrong done compared to using automatic machine.

5.2.2 Computerized technology and software

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Process automation system involves using computer technology and software

engineering to help power plants and factories in industries as operate more

effectively and efficiently. Computerized technology and software can be any

set of machine-readable instructions that directs a computer processor’s to

perform specific operations. The software can be written in a machine in order

to control the machine as indirectly control the maintenance downtime. Based

on my research, there are more than half of sample workers agree that

computerized technology and software can be used by a company to improve

their maintenance downtime.

Recommendation

URC Snack Foods Sdn Bhd may use computerized technology and software to

increase their maintenance downtime because the using of software and

technology in controlling operational system may detect the wrong done more

efficient and effective. Besides that, computerized technology and software

that write in a machine can be coded according to company preference. For

example, use the computerized technology and software to setting the time on

the machine that make the producing of milk product will be more efficient

and systematic timely.

5.2.3 Flexible Manufacturing system

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A flexible manufacturing system (FMS) is a manufacturing system in which

there is some amount of flexibility that allows the system to react in case of

changes, whether predicted or unpredicted. This flexibility is generally

considered to fall into two categories, which both contain numerous

subcategories. The first category, machine flexibility, covers the system’s

ability to be changed to produce new product types, and ability to change the

order of operations executed on a part. The second category is called routing

flexibility, which consists of the ability to use multiple machines to perform

the same operation on a part, as well as the system’s ability to absorb large

scale changes. According to my research there are 66.67% of the sample

workers agreeing that the flexible Manufacturing system may improve the

maintenance downtime.

Recommendation

Based on my opinion, URC Snack Foods Sdn Bhd may use the flexible

manufacturing system which is a process of automation system to increase

their maintenance downtime because the flexible manufacturing machine

system has ability to absorb large scale changes such as volume, capacity or

capability. The flexible manufacturing system can be the ability to use

multiple machines to perform the same operation on a part. So, when multiple

machines use on the same operation, more production of product can be

produce in one time by the company.

5.3 OVERALL EQUIPMENT EFFECTIVENESS

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Based on my research, a company need a consistent way of identifying

Equipment losses that so the company may reduce losses and increase capacity.

One way that a company may use is Overall Equipment Effectiveness. OEE

(overall equipment effectiveness) can be defined as the ratio between theoretical

production time for the actual good units produced and actual production time it

took to produce the good units. Typically URC Snack Foods Sdn Bhd used OEE

can produce more products and improve machine effectiveness. Further

explanations on the overall equipment effectiveness are as follows.

5.3.1 Reduce the breakdown time or reduce minor stops.

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 on system

throughput. My research found that 70% of the workers sample agreed that

Overall Equipment Effectiveness 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 use overall

equipment effectiveness as a way to reduce the breakdown time and minor

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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, by using the overall equipment effectiveness, the company may increase

their production and satisfied the customer demand.

5.3.2 Improve the regulatory control and implement preventive maintenance

schedule.

A regulatory control system can help you produce a uniform product that

consistently meets customer quality demands at the lowest cost. It does this by

minimizing variance throughout the processing cycle — whether that variance

is caused by changing feedstock quality, ambient conditions, equipment

performance, or a host of other factors. Without an effective regulatory control

system, each successive unit operation can introduce variation that can

accumulate throughout the process. The cumulative variation is reflected in

final product quality and the overall cost of production.

Preventive maintenance program is at the core of any efficient and well run

facility. It is no secret that the ability to manage maintenance on a schedule

rather than purely corrective basis will save time and money in the long run, as

well as increase the lifespan of your assets. But, the truth is, many facilities

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have inadequate and, in many cases, ineffective preventive maintenance

programs for their equipment.

Based on my research, 76.67% from 100% of sample workers agree that OEE

may lead to improve regulatory control and implementation of preventive

maintenance schedule that may improve the maintenance downtime.

Recommendation

In increase the maintenance downtime, URC Snack Foods Sdn Bhd need to

use overall equipment effectiveness in order to improve regulatory control 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. Advanced control

systems run continuously; responding to changes, reducing the impact of

upsets, and exploiting opportunities to create more profit. 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

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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

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 overall

equipment effectiveness many reduce the production losses that will increase

the maintenance downtime.

Recommendation

In increasing their maintenance downtime, URC Snack Foods Sdn Bhd may

use overall equipment effectiveness to reduce the production losses. Overall

equipment effectiveness 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, overall equipment

effectiveness also may improve the efficiency of machine. The efficient

machine indirectly may reduce the production losses. Besides that, while the

availability portion of Overall Equipment Effectiveness describes the

percentage of available operating time that equipment is actually running,

productivity measures how much is produced during that run time. Many

process plants are capable of higher productivity than they currently achieve.

The difference between current and potential productivity is an opportunity to

increase output — and profits. This course covers some of the causes of low

33

productivity in process plants, an approach for improving productivity, and

how to calculate the results as part of Overall Equipment Effectiveness.

5.4 DATA ENVELOPMENT ANALYSIS (DEA) AND EQUIPMENT

QUALIFICATION ((IQ/OQ/PQ & DQ)

Data envelopment analysis is an increasingly popular management tool. DEA is

commonly used to evaluate the efficiency of a number of producers.

Equipment Qualification Equipment qualification in the context of quality

management or validation is an essential pre-requirement for a large number of

companies in deciding on a specific supplier.

The Installation Qualification IQ is the documented proof that facilities and

equipment have been delivered and installed in accordance with the requirements

and statutory safety regulations stipulated in the design qualification. The

documentation for an Installation Qualification normally consists of IQ test plan

and IQ report.

The Operation Qualification OQ is a test process that evaluates the correct

functioning of a facility or an appliance. During the Operation Qualification OQ,

all items specified in the test plan are processed and documented in writing, to

ensure that the system functions in accordance with specifications. The

documentation for an Operation Qualification normally consists of OQ test plan

and OQ report.

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Performance qualification (PQ) of laboratory equipment is an important

component of the validation of the entire production process over a certain period

of time and for a specific product.

Further explanations are as follows.

5.4.1 Collecting Data

Data collection is the process of gathering and measuring information on

variables of interest, in an established systematic fashion that enables one to

answer stated research questions, test hypotheses, and evaluate outcomes. The

data collection component of research is common to all fields of study

including physical and social sciences, humanities, business, etc. While

methods vary by discipline, the emphasis on ensuring accurate and honest

collection remains the same. The goal for all data collection is to capture

quality evidence that then translates to rich data analysis and allows the

company of a convincing and credible answer to questions that have been

posed. Based on my research, there are 70% of the samples workers agree that

collecting data may help company in improving their maintenance downtime.

Recommendation

Regardless of my research study or preference for dealing data (quantitative,

qualitative), accurate data collection is essential to maintaining the integrity of

research. Both the selection of appropriate data collection instruments

(existing, modified, or newly developed) and clearly delineated instructions

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for their correct use reduce the likelihood of errors occurring. So, in order to

improve the maintenance downtime, URC Snack Foods Sdn Bhd may collect

the data about the operation to make the decision on improvement.

5.4.1 Analyzed data analysis

Analysis of data is a process of inspecting, cleaning, transforming, and

modelling data with the goal of discovering useful information, suggesting

conclusions, and supporting decision-making. Data analysis has multiple

facets and approaches, encompassing diverse techniques under a variety of

names, in different business, science, and social science domains. Our research

found that 90% of the sample worker agree that in improve the maintenance

downtime, an analyzed data are needed.

Recommendation

After have identified the problem or collecting, an analyze data are need to

make in proving or disprove the assumption that our problem is a result of

inconsistent ration. Usually, we analyze the situations by asking questions.

Based on my research, the operation will encounter challenges or problems

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that must be overcome. Refer to URC Snack Foods Sdn Bhd, they had

problem of poor maintenance downtime. So, they in order to improve their

maintenance downtime, they may analyze the factor that lead to poor

maintenance downtime of their company.

5.4.3 Problem solving, taking action and Monitoring

Problem solving consists of using generic or ad hoc methods, in an orderly

manner, for finding solutions to problems. Some of the problem-solving

techniques developed and used in artificial intelligence, computer

science, engineering, mathematics, medicine, etc. are related to mental

problem-solving techniques studied in psychology.

Taking action is the most importance that must be performed. The action are

taking to solve the problem that faced by the company.

Monitoring is the systematic process of collecting, analyzing and using

information to track a programme’s progress toward reaching its objectives

and to guide management decisions. Monitoring is conducted after a

programme has begun and continues throughout the programme

implementation period. Monitoring is sometimes referred to

as process, performance or formative evaluation. 

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Based on my research, more than half of sample worker agreed the problem

solving, taking action and monitoring may improve the maintenance downtime

of a company.

Recommendation

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

need to solve the problem, taking action and monitoring. When the problem

identified, the company need to get an effective or alternative ways to solve

the problem. For example, the company may train the workers. When the

worker had trained, they will work accordingly. But, sometimes, the workers

still do not perform their job accordingly. So, monitoring on that worker is

needed because worker will perform well when they are supervised by other

persons. This will help the company to improve their maintenance downtime.

Hence, those entire things may lead to improving the maintenance downtime.

5.5 STAFF ACCOUNTABILITY

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

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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 AS-

levels, 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.

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

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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 experience’s workers to

conduct their production activities because the experience’s workers are more

efficient in performing their work such as conducting machine activity.

Moreover, the experience’s 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.

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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.

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

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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 process

automation system; 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.

REFERENCES

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York, McGraw-Hill Irwin.

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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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Shamsuri S., (2004) Research Method: A Simple Guide for Business Undergraduates,

University Publication- UiTM, Shah Alam, Malaysia.

URC Snack Foods Sdn Bhd, Annual Repor,t 2009

URC Snack Foods Sdn Bhd, Annual Report, 2010

QUESTIONNAIRES

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

Gender: Male: Female:

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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?

_____________________________________________________________________

_____________________________________________________________________

Yes No

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

_____________________________________________________________________

_____________________________________________________________________

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Yes No

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

maintenance downtime?

_____________________________________________________________________

Yes No

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?

_____________________________________________________________________

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Yes No

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

_____________________________________________________________________

Yes No

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

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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

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?

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_____________________________________________________________________

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

Q12: The employee Qualification and education level is staff accountability. Did them

will influence the maintenance downtime?

_____________________________________________________________________

Yes No

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