GSGM 7324 Organisational Development and Change Management

MC210413473 Ho Kok Weng

Course Name : Organisational Development

And Change Management
Course Code : GSGM 7324
Section : MC-O12
Name : Ho Kok Weng
ID : mc210413473
Handphone : 012 6278908

Forum Discussion
GSGM 7324 Organisational Development and Change Management
MC210413473 Ho Kok Weng

Company Introduction
Hong Leong Yamaha Motor Sdn. Bhd. (HLYM), a company incorporated in 1979, is a joint venture
between Hong Leong Industries Bhd and Yamaha Motor Co., Ltd, Japan.

Since 1978, HLYM was appointed official franchise holder for CKD (Completely Knocked Down) and
CBU (Completely Built Units) Yamaha motorcycles and ATVs (All-Terrain Vehicle) in Malaysia.

HLYM has a Manufacturing Plant, Service Center, Parts Distribution Center and Head Quarter (HQ)
office station at Sungai Buloh, Selangor. HLYM has 4 branches and more than 240 networks of
dealers & Stockiest across whole entire Malaysia to provide after sales service and spare parts sales
for Yamaha motorcycles nationwide.

HLYM received excellence award certifications include the Total Productive Maintenance (TPM)
Excellence 1st Category award from Japan Institute of Plant Maintenance (JIPM) for the
enhancement of quality, cost and delivery performance; the ISO 9001, ISO14001 (Environment
Management System) from SIRIM QAS International and SGS Malaysia/SGS UK. HLYM also received
certification by the Malaysia Productivity Corporation (MPC).

Hong Leong Yamaha Motor is dedicated to keep on powering the desires of passionate motorcyclist
to create extraordinary value and lifestyle experiences to enhance the life expectancy of its
customers.

Malaysia Motorcycles Industry Trend, Perspective and Competition

During the post-pandemic period, which hit hard the ASEAN motorcycles market, the industry was
almost resilient in Malaysia with sales declined just 8.4% from the 2019 to the 2021, although the
entire month of April 2021 was without vehicles registrations for the heavy shutdown decided by the
government.

Based on this background, the 2022 perspectives were positive, although distribution difficulties
created by the supply chain disruption and high cost of raw materials and components.

In 2022, economic growth is set to accelerate compared to 2021, largely because of the fading
impact of pandemic-induced disruptions to domestic activity, amid a markedly higher vaccination
rate.

As in the previous 5 years, the market is led by Hong Leong Yamaha Motor (+7.2%) with over 40% of
market share, but with a narrow gap over the rival Boon Siew Honda (+3.2%). The others
competitive rival such as Suzuki Malaysia, Kawasaki Motors and Motosikal dan Enjin Nasional
(Modenas).

Modenas takes over Kawasaki in Malaysia

Being one of Japan’s big four, Kawasaki is one of the principal players in the motorcycle industry.
With a history of manufacturing motorcycle for well over 100 years, Kawasaki has successfully
planted itself all around the globe. Kawasaki Motors (Malaysia) Sdn Bhd is the sole importer,
assembler and distributor of Kawasaki brands of bikes in Malaysia.
GSGM 7324 Organisational Development and Change Management
MC210413473 Ho Kok Weng

Kawasaki saw a drop in sales in South East Asia because of the COVID-19 pandemic. In fact, Kawasaki
was expecting to see a loss of about 5 billion yen [47 million dollars] in operations for 2020.

In November 2020, Kawasaki Heavy Industries (KHI) announced that the company will spin off its
rolling stock [Train division] and motorcycle & engine business later this year in October 2021 as a
part of a major restructuring.

As of October 1, 2021, Kawasaki Motors Malaysia (KMM) will cease distributing Kawasaki
motorcycles in Malaysia market. This decision was brought about by Kawasaki Heavy Industry‘s (KHI)
decision to increase their equity participation in Malaysian motorcycle maker Modenas in April 2019.

Subsequently a division with regards to the distribution of Kawasaki motorcycles in Malaysia, where
Modenas would assemble and distribute models below 650 cc while KMM continued to distribute
large capacity motorcycles in the Kawasaki range was seen by KMM management as untenable.
KMM has now been renamed KMSB Motors after a 33-year relationship with Kawasaki and will enter
new business areas going forward.

After the six-month transition period which ended March 31, 2022, Edaran Modenas (EMOS) has
taken over the mantle of official distributor for Kawasaki motorcycles in Malaysia. Kawasaki Motors
(KMC) has a 30% equity in Modenas with DRB-Hicom as the majority shareholder.

The management changes in Kawasaki Malaysia had been little impact on the Motorcycle Industry
where the restructuring of Kawasaki may strengthen the market positioning of both Kawasaki and
Modenas. For the market leader like Yamaha & Honda, the restructuring of Kawasaki may have little
affecting to the market share. For Yamaha, they have always maintained the high quality of their
motorcycles as well as their Spare parts. Hong Leong Yamaha Motor will keep going on their
improvement in production, quality, service, marketing, Stockists & Dealers Networking in order to
maintain their position as market leader in Malaysia Motorcycle industry.

Changes in Hong Leong Yamaha Motor - Spare Parts Department

There was a planned change in Hong Leong Yamaha Motor (HLYM) in Spare Parts Department where
the management decided to hire myself as Warehouse Manager in April 2022. The position is a
transition for the current Yamaha Quality Service (YQS) & Warehouse Manager, Mr. Chen Kim Looi
who are at retired aged.

The changes in Managerial Personnel in Spare Parts Warehouse would be an internal force of change
in HLYM. The previous and new managers may not have the same styles, skills or managerial
philosophies.

Managerial behaviour is always selective so that a newly appointed manager might favour different
organizational design, objectives procedures and policies than a predecessor. Changes in the
managerial personnel are thus a constant pressure for change in Spare Parts Department.

As new warehouse manager in Spare Parts, I feel that there is more improvement needed in the
warehouse after observing the process flow for a month. The improvement is needed for
Warehouse operation both in the area of Inbound and Outbound. The staff are required to do some
coaching on the daily operation and monitoring requirement for each section of Standard Operating
Procedure (SOP). The supervisor must always to monitor closely on workers daily operation SOP.
GSGM 7324 Organisational Development and Change Management
MC210413473 Ho Kok Weng

Beside the daily warehouse operation, more coaching and training is required for the workers on 5S
(Sort, Straighten, Shine, Standardize & Sustain). The 5S system is a lean manufacturing tool that
improves workplace efficiency and eliminates waste. 5S is important as it could organize the correct
spare parts and the parts picking or supplies will eliminate clutter and confusion. Workers spend less
time finding and retrieving what they need and can be more productive in warehouse Operation.
Standardizing work processes for Warehouse operation will reduce variations and mistakes. By
eliminating faults and failures, overall warehouse operation can be dramatically improved.

Another improvement required would be the Safety process in Spare Parts Warehouse. Safety SOP is
a disciplined framework for managing the integrity of operating systems and processes that handle
hazardous substances in the Spare Parts Warehouse. Overall, it is for all employees in Warehouse
responsibility to help protect our people and environment. By putting systems in place to manage
process safety, it will help reduce the potential for preventing major disasters involving in the
Warehouse Operation.

With the new working environment in HLYM Spare Parts Warehouse, I have the chance to contribute
my 20 years of experience in Inventory Management, Warehouse Operation, Logistic and Supply
Chain Management. With my excellence analytical and problem-solving skills, I believe I could help
the warehouse department for future further improvement and lead the warehouse team to achieve
its current financial target set.

Besides the contribution, I also gain more knowledge in the area of AGV (Automatic Guided Vehicle).
It is an autonomous mobile robot requires no workspace reconstruction to achieve automated
material handling or delivery, smart warehousing and information management. The original Natural
Navigation technology enables automatic obstacle avoidance and route adjustment to realize rapid
deployment and efficient productivity improvement.

Action from Superior

My Superior – Mr. Ng C.A., Senior Spare Parts Manager had called up a meeting which involving all
the Warehouse Assistant Managers and Executives. During that meeting, he had introduced me as
their new Warehouse Manager and show to all of them on the new Organization Chart. He had
explained and emphasized to the Warehouse staff that the reporting line should followed as per
organization chart. He had made very clear instruction that all related to Warehouse issues and
approval shall go through the new Warehouse Manager.

Action from Myself

After the announcement of new Warehouse Manager, I had a short briefing to all the sub-ordinates.
The briefing mainly to have short introduced for myself background and experienced. To inform on
my management style and managerial philosophies. To emphasize that the manager changes will
not make any changes on the KPI had been set which we shall focus to meet or achieve Spare Parts
Sales Target. Warehouse Team shall make sure to pick, check and deliver as per sales orders from
Sales team. Always work as a team and shall follow SOP as stated or registered in ISO 9001 &
ISO14001.
GSGM 7324 Organisational Development and Change Management
MC210413473 Ho Kok Weng

Conclusion
Despite the management change for Kawasaki Malaysia, it could not affect the market share for
Hong Leong Yamaha Motor (HLYM) in Malaysia. Hong Leong Yamaha Motor continues to invest in
the upskilling of its employees, new technologies and equipment to improve its production
capabilities. Hong Leong Yamaha Motor are always committed to provide high quality products and
services at competitive prices that meet customer and applicable legal requirements. To strive for
continual improvement and cost effectiveness through quality and productivity programmes.

The managerial changes may have both acceptance and resistance from employees. It’s depended
on the manager how he or she to manage and overcome the resistance to change from current
employees. Change can be hard for both employees and employers but with some planning and
anticipation, it can be effectively and efficiently managed. Keeping communication flowing to and
from manager or top management as well as ensuring that they are listening to employees’ concerns
can help navigate any resistance to change that might arise along the way.

** End of Forum Discussion **