malaysian productivity award
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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