M O R I S: March 2014

TRAINING AND ATTACHMENT PROGRAM AT GERMAN COMPANIES FOR SENIOR MALAYSIAN PUBLIC SECTOR EXECUTIVES, 2008

INTRODUCTION

The "Private sector attachment and training program for senior Malaysian public sector executives in German companies" is set up as a modular training program. This program mainly aims at providing an opportunity to senior level Government officers to gain hands on experience and exposure to the dynamic of modern day business management system. It will enable Government officers to spend some time with the private sector and develop management skills which could be later applied by them in their daily jobs. There are 13 participants from various agencies involved in this program. The Appendix 1 lists the names and agencies they work with.

Before going to

Germany

, participants had attended a preparatory course which was held at Putrajaya International Convention Center (PICC) from 23^rd June to 27^th June 2008. The preparatory course was substantially important to equip participants with the required knowledge and information especially the cultural difference in working environment, a broad range of economic and business perspectives that are pertinent to business environment especially on trade promotion, financial management or financial statement, business planning, negotiation skill in international business and interpersonal, cross cultural and communication skills.

Then, they were given on-the-job training in the Malaysian premises of German companies, where they would be able to gain insight into the workflows, organizations and decision-making structures. During this attachment period, participants should be able to familiarize themselves with the private sector working environment and be able to understand the differences in business management operations, management styles and cultures between the public and private sectors. Participants also had to identify the problems faced by private sector when dealing with government agencies and be able to provide suggestions to overcome them.

In Germany, participants again attended seminar on business management at Carl Duisberg Centren (CDC). This seminar aimed for participants to get to know how German companies work as well as organizational structures and company design. They also will become acquainted with the operational and strategic business in the different departments. Participant will look at management strategies, decision making and controlling processes.

After one week seminar in CDC, the participants were attached to the German companies in which they had the opportunity to expand on knowledge gained from the first attachment and have further experience. The companies participated in this program were Gummi-Metal Technik GmbH, ThyssenKrupp Marine Systems AG, Technoplast GmbH, SAP AG - Walldorf, Technoplast GmbH, Herzzentrum Leipzig GmbH, University Duisburg-Essen and Schwanhausser Industries Holding GmbH & Co. KG.

The program concluded with study visits to multinational firms such as Deutsche Lufthansa AG, European anti corruption agency, Deutsche Gesellschaft fuer Technische Zusammernarbeit (GTZ) GmbH, traditional German firms, Merck KGaA and European integration bank, European Central Bank .

ATTACHMENT AT GUMMI-METALL-TECHNIK (M) SDN BHD IN MALAYSIA

2.1 Company Background

Gummi – Metall – Technik (M) Sdn. Bhd. (GMT) was incorporated in Malaysia on 5^th November 1979 with the paid up share capital of RM1,630,634 and authorized capital of RM3,000,000. The share of equity of 51% owned by Perbadanan Kemajuan Negeri Perak (PKNP), 43% owned by Gummi-Metall Technik (GmbH), Germany and 6% owned by Rubber Mounting Limited, Ireland (RML-Ireland).

It commenced the operation on 2^nd May 1980.

In December 1980 the paid up share capital was increased to RM1.7 millions with the percentage of equity of PKNP 49%, GMT Malaysia 45% and RML Ireland 6%. In 1981 the paid up capital was increased again to RM2.1 millions with the same percentage of equity. This structure of equity remained the same but with the increased of paid up capital of RM3.5 millions in 1983 to 1986. In 1987, the paid up capital was RM5.3m with Grand Cosmic Sdn Bhd (GCSB) came in the company as a partner with the equity of 13% until 1997 but GMT Germany equity was 36%. The structure of paid up capital of GMT in 1987 until now is explained as follows:

Shareholder	1987 to 1997	1998 to 2000	2001 to 2005	August 2006	Sept 2006 till now
PKNP RML Ireland GMT Germany Amalgamated Parts Manufacturer GCSB Koperasi Perak	46% 4% 36% 13% - -	46% 4% 36% - 13% -	38% - 52% - 11% -	40% - 51% - 8% 1%	- - 100% - - -
Paid Up Capital	5.3m	6m	7.4m	7.4m	7.4m
Authorized Cap.	6m	6m	16m	16m	16m

GMT Malaysia is located in Kuala Kangsar Industrial Estate, Perak, Malaysia.

The company is now headed by a German Managing Director, Mr J.W. Howing and supported by 3 other managers from Administration Department, Mr Wan Abd Shukur Wan Omar, Production Department, Mr. K Sivanjothi and Lab/Mixing Department, Dr. S. Puspalatha Mahen. Other two departments, Finance/Purchasing and Marketing/Drawing/QA/Maintenance Department are led by himself. GMT Malaysia has 132 employees which includes 12 employees in the office. There are five Indonesians, 17 Nepalians and the rest are local workers. The organization chart of the company is as below: Text Box: Administration.
Mr Wan

Text Box: Marketing/Drawing/
QA/Maintenance
Mr Howing

Managing Director

Mr J.W. Howing

The Organization Chart of GMT Malaysia

The management is very particular about quality of products. Hence they sets quality objectives to be achieved. The quality objectives of GMT Malaysia are as below;

Quality Policy	Quality Objectives	Measurement Indicator	Freq	Target
Meet/Exceed Customer Requirement	1. Meet Delivery Schedule	OTD	Monthly	85%
	2. Customer Satisfaction	CS Index	6 monthly	95%
	3. Minimise Customer Complaint	Corrective Action Requirement	Monthly	0
Prompt Response & Competitive Price	1. Response to Customer Requirement	Customer Report Form dates	6 monthly	14 working days (90 %)
Prompt Response & Competitive Price	2. Cost Reduction	Rejection Rate	Monthly	2%
Doing Right 1^st time, On time every time	1. Minimize Customer Return	Monthly customer return	Monthly	0
	2 Minimize machine breakdown	Types/time of downtime	3 months	200hrs
	3 Vendor Performance	Delivery	Monthly	85%
	4. Compound Quality	Reject Rate	Monthly	2%
	5. Efficiency	Rejection Rate	Monthly	2%
	6. Stop Shipment	No of Stop Shipment	6 monthly	5 times
	7. Incoming Inspection	Rejection Rate	Monthly	2%
Training & Development	1. Develop Human Resources	Training Schedule	Annual	90%

The management and employees are totally committed to achieve continual improvement of the quality management system, production and supply of quality product and services. GMT Malaysia underlines the actions below to be taken to achieve objectives:

a. Foster excellent relationship with all parties concerned in order to meet or exceed customer quality requirement.

b. Ensure prompt response and competitive prices

c. Do it right the first time and every time in everything they do

d. Ensure continuous training and development of human resources.

The manufacturing process is strictly controlled adhere to standard specifications. Standard tests normally conform to British Standard, ISO, ASTM, DIN, JIS, SIRIM and AASHTO. In 2007, Malaysian Rubber Board certified GMT has participated in the A5 Program on Improving Productivity, Efficiency and Quality of Rubber Products Manufacturing in Malaysia which focuses on process and quality improvements, lean manufacturing, waste/reject reduction, cost reduction, good manufacturing practice and continuous improvement. It also received appreciation from Kayaba (M) Sdn. Bhd. as the best quality supplier in 2000, 2002 and 2006.

2.2 Company Business/Function

The main activity of GMT Malaysia is the same with GMT Germany. It also plays role as sale agent of the headquarters in Buhl, Germany. GMT Malaysia specializes in precision rubber and rubber to metal bonded products including:-

a. Automotive rubber parts such as Grommets for wire harness industries or rubber bellows for steering systems,

b. Bushes for absorber manufacturers and heavy equipment,

c. Laminated bridge bearing and bearing discs,

d. Rubber seals for civil construction,

e. Anti-vibration rubber pads, buffers, machine feet and mountings,

f. Anti-abrasion lining and custom made products for specific end-users.

The important raw materials used to produce rubber to metal parts are natural rubber, synthetic rubber and rubber chemicals. Natural rubber is sourced locally from FELDA. GMT Malaysia imports synthetic rubber and rubber chemicals through local agents for example BAYER, BEHN-MEYER, CCM, TEXCHEM, LUXCHEM, RHEIN CHEMIE, CABOT (M) AND LORD CHEMICALS.

GMT Malaysia is equipped with an in-house tooling shop with facilities for simple mould fabrication and the maintenance of moulds and tools. It exports the parts to USA, United Kingdom, Germany, Netherland, Switzerland, Singapore, Australia and Thailand.

2.3 Observations and Findings

During one week attachment in GMT Germany, there are some findings discovered through interviews and observations as follows;

i. People still believe that overseas products are better than locals even though the quality is the same.

ii. Lembaga Getah Malaysia (LGM) as a Government agency takes too much time in certifying the products when certification required by clients. The fastest period taken by LGM was one month. They were informed by LGM this is due to inadequate instrument. This could be solved if LGM officers are attached in the company for a certain period with a clear objective to know the company requirement.

iii. Program on training conducted by Pembangunan Sumber Manusia Berhad is more on motivation. The company needs more on technical training. The company is dissatisfied because they contribute 1% of salary amount to Human Resource Development Fund annually.

iv. The workers in the company are not open-minded. They will do the jobs only when requested.

v. The complaints from clients about the products will be informed to operators to make sure it will not recur in future.

ATTACHMENT AT GUMMI-METALL-TECHNIK GMBH IN GERMANY

3.1 Company Background

Gummi-Metall-Technik GmbH (GMT-Germany) in Buhl, Germany is a headquarters, was established in 1968. GMT is a family business owned by the Chief Executive Officer, Mr Gerhard Engstler. He is a Chemical Engineer who is helped by his three children. Thomas who is an engineer is in charge of Productions and Quality Department, Sussane who has accounting and finance background is in Finance Department and Alexandra is an apprentice in the company. His wife, Atina Engstler is in charge of Finance Department. The departments in the company are Human Resources Department, Sales and Export Department, Development and Construction Department, Finance Department, Purchasing Department and Productions and Quality Department. There are 560 employees all over the world.

Today GMT is composed of production plants in Germany, Switzerland, Ireland, The United States, Malaysia and

India

and has sales branches and representatives all over the world. Due to a global network connecting GMT plants and sales offices world wide there is a constant flow of information and know how throughout the group. This enables GMT to solve technical problems quickly and efficiently. Response and reaction time in cases of special customer inquiry can also be reduced to a minimum. These are some of the reasons why GMT is one of the world leaders in the field of sound and vibration dampening technology.

In 2008, management decided to achieve some targets and stated in the Quality Management Target 2008 which circulated to all department. The targets are:

a. Certification according to European Norm (EN) 9100,

b. Functioning new structure of building 5

c. Certification according to International Railway Industries Standards (IRIS)

d. Training and controlling of products

d. Reduction of internal failure rate maximum of 10%

The management believes that the customer is the King where as a manufacturer or supplier, GMT will fulfil all types of requirement from customers. The customers are looking for the manufacturer is no longer applicable at this competitive global market. Instead, the management takes initiatives to make sure GMT is in good position compared to other suppliers. The production plants in

Germany

are certified by European Standards DIN EN ISO 9001, the Malaysian plant is certified by QS 9000.

3.2 Company Business/Function

A wide spread variety of products from simple machine feet up to high tech parts for well known manufacturers in the railway, shipbuilding and aerospace industries allows GMT to meet the most challenging customer requests and wishes. Generally GMT products can be used wherever noise or vibrations occur. All GMT parts are manufactured to the highest quality standards.

a. Railway Industry

In the last twenty years railway vehicle industry was characterised by numerous projects, voluminous acquisitions, rapid growth and considerable reorganisation process. Development and calculation of components and systems has consecutively been transferred to partners and suppliers. As a result of this trend it was essential that tier2 and tier 3 suppliers are provided with respective modules (FEM calculation, damage calculation, etc.) as well as with appropriate equipment. GMT demonstrates its abilities as development partner of railway vehicle industry and convinced by innovation and investment activities. GMT invested in processors, calculation programmes, and test facilities in order to be able to realise each specification, tender documents and requirements as well as to work out a professional and appropriate solution. Nowadays, GMT is one of the leading companies in the railway vehicle industry owing to its reliability, capacity and product range. GMT’s quality awareness led to appreciation and acceptance of GMT referring to participation at development process as well as in fitting vehicles and bogies. The extract of product range for railway vehicle sector includes primary springs (axle, conical, rolling rubber springs), primary suspension systems, secondary spring systems inclusive of air spring bellow and additional spring, steering rods, torque supports, primary/secondary spring washers, lateral/longitudinal stop buffers, spherical bearings and bushes, rolling supports, wheel set guide elements, resilient wheels, rubber packages, elastic coupling elements and pivot bearings.

b. General engine and machine industry

The products are used wherever noise and vibration are generated. The latest up-to-date design and manufacturing facilities ensure that the customers can choose between a wide range of standard products or products designed according to their specification. Popular standard designs include the wide range of buffers and aggregate bearings as well as H and T mounts. Among special products often requested are elastomer bearings, cone mounts and bushings. The product ranges are buffers, machine feet, rails and air bellows.

c. Civil engineering/construction machine

GMT supplies rubber and rubber- to- metal- bonded elements to reduce and eliminate unwanted vibration and noise in all kinds of construction equipment. These applications typically have very high levels of mechanically induced vibration and impact stresses which have to be isolated.

In areas like the steering mechanism bushes, springs and steering rods are mainly used to achieve the desired isolation. The use of maintenance free mounting with a long service life is the economic choice for such like applications. GMT in-house compounding specialists have the expertise to support customers when selecting compounds used for these applications, which can be improved for good oil, greased and/or frost behaviour and physical properties.

When used for the isolation of vibrating drum rollers and vibration compaction plates the heavy duty rubber mounts are subjected to both shear and compression loading. GMT elements provide isolation of vibrating drum or plate to prevent fatigue and wear on moving parts. Great demands are made on the mountings which are exposed to high loads and extreme environmental conditions. Cone mounting is suitable for the suspension of vehicle cab. The special design of these mountings provides for different stiffness in the three main axes. This offers a high comfort for the drivers and at the same time a safe guidance of the cab is provided. The example of product range are cab suspension elements, axle bearings, vibrating plates, buffers, axle springs, coupling, flange elements, engine mountings and asphalt shoes.

d. Marine Industry

Mechanical vibration and impact stresses are the biggest problems for engines and electronic equipment onboard ships. Therefore, very specific noise and vibration isolating systems have to be used to isolate these kinds of machines from vibrations. GMT designs special purpose mountings offering high deflections whilst being able to absorb shock loads. Mountings with incorporated rebound control features reduce excessive movement under shock loads. In recent years, GMT has been focussing its activities on the development and production of specific solution for customers. The product ranges of marine industry are engine mountings, shock buffers and rails.

e. Aircraft Industry

No other industry in Europe is characterised by such a growth and high innovation as the aerospace industry. Germany’s highly developed and innovative aerospace industry is one of the leading ones in this sector. The GMT group is a globally present supplier of products and systems for the aerospace industry. As a specialist for anti vibration technology, GMT develops and supplies tailor made solutions to customers in all fields related to the aerospace industries. Cost efficiency and innovation as well as short lead times are characteristics for GMT’s work and products.

GMT’s high quality product range makes a big contribution to improvement of security and comfort in aircraft industry. Especially in aircraft industry, there are high requirement on products and first class quality is essential. This challenge is successfully overcome and for more than 20 years GMT is development and production partner for aircraft industry. Highest reliability and technical comfort is ensured by innovative and competent solutions. Besides Airbus further reputable companies of aircraft industry are customers of GMT as FACC, AOA, RUAG, Sell, Dasell, Meuhlenberg, Eurocopter, SFT Intec and MTU. The high quality products provide a basis for a sustained company growth. The product ranges of aircraft industry are shock mounts, tie rods, suspensions, insulators and bushes.

3.3 Observations and Findings

During two weeks attachment in GMT Germany and tour visit to four organisations, there are some observations and findings discovered as follows;

a. Buildings and office

i. The only main structure of building was constructed from concrete cement. The outer wall surroundings the building is from the metal sheet and the departments or office are built from wooden board.

ii. There is uniformity of office equipments in all departments. Company uses the same type and colour of furniture and computer with flat screen.

iii. Working space for staff is enough and very comfortable, for example, an area in Sale and Export Department is about 40’ x 22’ accommodates 6 people.

iv. There is no security guard to watch the surroundings during the day and night because the place is pretty safe.

v. The file racks made from wood are moveable type. It is not permanently attached to the wall.

vi. The stocks or inventories are stored in metal containers and arranged properly. Every container is labelled accordingly and kept systematically.

vii. The light is rarely switched on to save costs.

b. Work Culture or Human Behaviour

i. Everybody speaks Deutsch that shows they are proud of being a citizen in their own country.

ii. They are loyal, honest and proud of company they work for.

iii. Staff starts working early before official hour.

iv. Most of staff immediately go back to work after taking their lunch. They take within fifteen to twenty minutes only even though lunch break is for one hour.

v. Staff does not go out to have some coffee or tea. They prepare it themselves in the office.

vi. There is no proper and official attire. Office staff could wear any dress they like. The most important is to produce good performance and result.

vii. The officers and managers normally file documents themselves. There is no specific filing clerk or personal assistant to assist them.

viii.The officers and managers tidy up their tables neatly every time leaving their table.

ix. Staff is very helpful. They willingly help each other to complete jobs.

x. The office atmosphere is friendly. They always greet each other regardless of their positions. The supervisors know most of their staff by name.

xi. Staff will try their best to entertain the guest to make sure they are comfortable and happy during the stay. They are obliging in giving explanation in German as they do not know English especially the labours even they know that the guest does not understand German.

xii. Staff is very obligated and serious to their jobs. Everybody works hard to meet their own target. It was hardly seen employees get together in group having a chat during working hour.

c. Management Style

i. Decision regarding to whatever transaction has to be made by the Chief Executive Officer (CEO) Mr Engstler, the owner of company. The managers only decide on the routine and normal operation but still he must be informed and updated.

ii. The CEO stands very firm to his decision even though his decision is not accurate. He will be angry if his staff does not follow his directives. The staff will have hard time to face and explain him.

iii. The staff has to discuss himself or herself with CEO and ask for any salary increment if he or she has reached target or accomplished any job assigned. Normally staff demand will be granted.

iv. The Chief Executive Director sets a target for a company and individual department. Each staff works out to accomplish their targets as bonus will be granted monthly according to their department performance. Nevertheless, bonus only will be paid depending on company performance as a whole.

v. The documents are properly kept and filed. The box files are labelled accordingly using self adhesive stickers. It is differentiated through various colour of stickers for easy references for example the colours used in the Purchasing Department are as follows:

White - frame order or blanket order

Orange - quality report

Blue - purchasing document (information about suppliers)

Yellow - delivery notes

Green - purchasing order

vi. Purchasing officers is dealing with the suppliers through emails and phone calls only. They are discouraged to meet suppliers outside the office to reduce travelling and entertainment costs. Furthermore, management believes that the suppliers are in the interest in meeting and selling goods to GMT as their customer.

vii. Computer is an important tool to operate their jobs. Every body uses emails as an official document to communicate with suppliers as well as other departments.

viii.Stock data is updated in the computer system called Pro-ALPHA for easy reference. The system is user-friendly and able to give information immediately about the balance of stocks and clients’ requirements. The system is useful to monitor outstanding order by customers’ names and items daily.

ix. Individual staff is obliged produce quality products to make sure customers’ satisfactions is being fulfilled. They assume customer is a KING.

x. The internet is only accessible to GMT web site. Every body has his own password to access internet.

xi. Standard Operating Procedures are updated and followed by every staff.

xii. Any condition of transactions dealt with customers will be written in the sale agreement. For example credit terms and type of delivery of goods are spelt out clearly. They follow strictly according to agreement.

xiii.Apprenticeship has been practising too commonly in

Germany

xiv.Company as an exporter does not need to go to the custom office to submit a declaration form. Instead, company uses ATLAS system downloaded via internet. The custom office only takes ten minutes for a reply.

xv. Lufthansa management encourages staff to give training to others when they are willing and ready for skill development.

4. OVERALL COMMENTS ON THE PROGRAMME AND RECOMMENDATION

The attachment program which has been going on for so many years is greatly valuable. We picked up the challenge to different culture and over sea environment for duration of four weeks. Besides, we had to endure loneliness and homesickness, we returned at the end of our overseas stint, much more confident and matured.

The recommendation below is proposed to Public Service Department (PSD) and CDC probably to consider for improving next attachment program.

Public Service Department (PSD)

i. PSD delivers confirmed air tickets to participants at least one day before the date of departure to enable them to manage their own time to be at airport individually.

ii. PSD informs participant to get praying time table according to attachment places.

iii. PSD invites at least one of the previous participants to share his own experience in any day during one week preparatory course.

iv. PSD includes in the one week preparatory module a construction of questionnaires which is in bilingual German and English as participant might need to get feedback from the relevant workers on management of company.

v. PSD asks for travelling bags from travel agents which manage air tickets for participants.

vi. PSD informs Malaysian Student Department about the attachment program as a participant might need help from them.

vii. PSD reminds participants before leaving for abroad that they do not need to inform any weaknesses of our agencies to German people. This will give bad impression about

Malaysia

as a whole.

viii.Encourage participant to bring computer along for at least communicating with friends and family using email or messenger.

Carl Duisberg Centren (CDC)

i. CDC should be able to inform the participating companies the followings in advance:

- Information about halal food which is regarding to the Muslim dietary laws. It refers to anything that is allowed or lawful according to the Qur'an. It is often used in the context of food – especially meat – to indicate that the food has been prepared in accordance with Muslim principles and techniques.

- A company prepares and gives the basic information about company’s background for example company organization charts, basic work-flow to participant on the first day in the company for a better understand.

- An officer of the company who is in charge during attachment period is ready to attend to the participant and spends time as per schedule briefing participant so that a participant will get enough information and appreciate much better on the operation of company.

ii. CDC should advise on the possible interesting places surrounding attachment places which to be visited the participants. This will minimize time consumed looking and asking around about the interesting places.

5. CONCLUSION

The attachment program undertook was a very rewarding and enriching experience. This opportunity gave participants the chance to interact with German people in the office as well as public. Participants personally were able to see the different culture of working environment and develop management skill to equip them and put into implementation in the work place. Hence, a continuation of such good training program in the future is a must.

THANK YOU.

M O R I S

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