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Malaysian Productivity award

To boost productivity among the Malaysian firms and encourage them to do better and better,

National Productivity Corporation launched Productivity Award in 1999. The objectives of this

award are the following:

Create awareness on the importance of productivity improvement towards economic

development.

Recognize companies with productivity management excellence.

Emphasize the fact that productivity enhancement has high impact on sustainability and

future prospects of the economy.

Encourage the use of productivity indicators in monitoring the qualitative and

quantitative level of achievement by companies.

Emphasize the usefulness of productivity measurement in managing and evaluating

company performance.

Criteria for assessment

The criteria are grouped into two parts. Part I is the quantitative assessment whilst Part II is

the qualitative assessment. The details of the criteria are as follows:

Part I: Quantitative Assessment

There are six productivity indicators which are used to evaluate the productivity performance

of participating companies.

i. Labour Productivity

Labour productivity indicates the efficiency of employees in wealth creation process. It is

influenced by, management efficiency, work attitudes, price effects and demand of the

product.

ii. Capital Productivity

Capital productivity indicates the degree of utilization of fixed assets and their efficiency

with which assets are utilized. It is defined as added value generated per ringgit of fixed

assets. High ration indicates better performance of enterprise.

iii. Capital Intensity

Capital intensity is the ratio measuring the amount of fixed assets allocated to each

employees. It is also known as fixed assets per employee or simply capital-to-labour

ratio. This ratio is used to measure whether an industry is relatively capital-intensive or

labour-intensive.

iv. Process Efficiency

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Process efficiency measures how efficient the business utilizes its own resources namely

labour, plant and machinery and capital to generate added value and minimize he bought-

in materials and services.

v. Labour Cost Per Employee

Labour cost per employee measures the average remuneration of employees. To becompetitive, the increase in labour cost per employee must be commensurate with

increase in labour productivity.

vi. Unit Labour Cost

Unit labour cost measures the proportion of labour cost to total output.

Qualitative assessment is based on the productivity initiatives implemented by companies in

the following are:

Inventory and Materials Management

Utilization of Machinery and Equipment Product/Service Development

Technical Efficiency

Productivity Management

NPC maintains a panel of assessors to evaluate the applications. The assessors areexperienced consultants who have the qualification and selected by the higher manufacturing

of NPC according to through selection criteria. The main duties of the assers are the

following:

Evaluate companies that are listed according to the selection done through required

standard.

Visit to companies listed to ensure the information and check data consistency in theapplication report (submission) and to obtain required clarification

Decide on companies to be recommended as a potential winner to the Technical

Committee

The final selection is made by the Tech. Committee whose main responsibilities are the

following:

Evaluate confirmation submitted by Panel of Assessors

Evaluate companies based on the report prepared by Panel of Assessors

Decide on the winner of Productivity Award and seek an approval from the Panel of

Judge Board of Director (BOD)

All private organizations registered under the Malaysian Companies Act 1965 are eligible to

apply for this award. However, the organization must have existed three years prior to the

application. The categories for participation are

Manufacturing:

Category 1: Local company with annual sales turnover not exceeding RM10 million

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Category 2: Local company with annual sales turnover exceeding RM10 million to

RM25 million

Category 3: Local company with annual sales turnover exceeding RM25 million to

RM100 million

Category 4: Open (Local company with annual sales turnover exceeding RM100

million and Multinational company)

For service category, open to all.

The recipients enjoy the following benefits:

The NPC Productivity Award Trophy

Certificate of Appreciation

Eligible to use the Award Logo for three years following the year of the Award for

publicity purposes

Enjoy 20% discount for any training programs organized by NPC

The following table provides the winners of the award in the past years. The winners are

required share information of its successful performance and quality strategies withoutMalaysian organizations. However, they are not required to share their proprietary

information.

Recipients list

No. Year

won

Organization

199

9

Infineon Technologies (M) Sdn Bhd.

Supermax Golve Manufacturing dn. Bhd.

Texchem-Pack (M) Sdn. Bhd.Unico Technology Bhd

200

0

Hadsuki Technology Sdn Bhd

Perodua Manufacturing Sdn Bhd

PPH Printing & Packaging (Kulim) Sdn Bhd.

Samsung SDI (M) Bhd

Subang Jaya Medical Centre Sdn Bhd

200

1

Asean Bintulu Fertilizer Sddn Bhd.

KanzenTetsu Sdn Bhd

Masasinar Holdings Sdn Bhd. (Special)

Profen Sdn Bhd.

STMicroelectronics Sdn Bhd

200

2

Masasinar Holdings Sdn Bhd

B & Z Plastic Industry Sdn Bhd

Top Glove Sdn Bhd

Malayawata Steel Bhd

Pan Century Edible Oils Sdn Bhd

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200

3

Pioneer Technology S/B

Barkath Coro Manufacturing S/B

Sipro Plastic S/B

Noor Arfa Batk S/B

200

4

Cape Technology S/B

Kart Food Industries S/B

Supermax Glove Manufacturing S/B

Dutch Lady Milk Industries Bhd

ABX Express (M) S/B

200

5

Case Technology S/B

Amalgamated Metal Builders (M) S/B

Alliance Contract Manufacturing S/B

Petronas Ammonia S/B

Damansara Specialist Hospital S/B

200

6

Massainar Holdings, S/B

LKL Advance Metaltech S/B

VM Vitaols (M) S/B

MTBE/Polypropylene (M) S/B

Malaysia Airlines Cargo S/B

Puteri Specialist Hospital