MANAGEMENT & OPERATION SERVICES OF CENTER OF EXCELLENCE FOR MACHINERY & ENGINEERING SERVICES (COE M&E)

PRESENTED BY: AHMAD YASIN DATE : 10th MAY 2011

CONTENTS
1) OVERALL CONCEPTUAL MODEL 2) STRUCTURE OF CENTRE

3) KPIS OF THE CENTRE TO REFLECT THE PERFORMANCE OF THE COE M&E 4) ADDITIONAL PROPOSED BREAKTHROUGH SOLUTION THAT WILL FURTHER ENHANCE COE M&E ROLES 5) FINANCIAL SUSTAINABILITY 6) ADDITONAL INFORMATION: PROPOSED SITE

CONCEPTUAL VISION OF COE M&E

Stakeholders
Industry Association Academia/ Research Institutions Technical & Skills Development centre's Accreditation / Policy Making Bodies International Associates

Center of Excellence Board Members Services Offered

Business offers/ Tender Placement Job offers & Placement Database
Design Development Center Human Capital Development Center

Single Point Reference / Knowledge Centre

Mould & Die

Heat Treatment

Metal Fabrication

Surface Treatment / Finishing

Automotive

General Industrial M&E Component & Parts Metal Working M&E

Center of Excellence (M&E)

Metal Stamping

Specialized/ Process M&E for Specific Industries

Metal Casting

Power Generating M&E

Machining

Aerospace

Medical Devices

E&E

Semi Conductors

Focused Industry

STRUCTURE OF THE CENTRE

Stakeholders
Industry Association Academia/ Research Institutions Technical & Skills Development centre's Accreditation / Policy Making Bodies International Associates

COE Board Members (Chairman)NCIA

Technical Consultant

COO

Marketing Department

Aero-Space

Medical Device

Automotive

Semi Conductors

E&E

Support Department

I.T Department

Human Capital Development

Single Point Reference / Knowledge

Legal Department

Design Development / Testing Certification

Human Resource Department

Finance Department

Business offers/ Tender Placement

Job offers & Placement Database Administration Department

STRUCTURE OF COE M&E

The organisation structure of COE M&E, which will be helmed by the COO, would consist of 5 key components, namely Medical Devices, Aerospace, Semiconductors, Automotive and E&E and 2 supporting components include Marketing and Business Development The COE M&E is aim to be a ONE STOP M&E pillar in the Northern Region to move the M&E industry to the next level of value chain in which world class work force and design powerhouse will generate global standards for M&E industry worldwide. The centre will transform local graduates into technical middle managers as well as providing related M&E support and services. Financially, the centre will be established as a not-for-profit centre.

VISION & MISSION STATEMENT

The Vision To be the focal point for M&E industry in Malaysia, which is financially self-sustain. The Mission

To be One-Stop Centre for M&E support, design solutions and technical middle managers transformation programme by integrating the entire local and international M&E industry spectrum.

VALUE PROPOSITION

Value Proposition Technical Middle Manager Transformation Programme Total Industry Connectivity (COE M&E Portal) Cost competitiveness through leveraging on existing facilities

OBJECTIVE OF COE M&E

ONE STOP M&E pillar through the following initiatives:

To Develop Technical Middle Managers To be the One Stop Centre for the Design Development / Testing & Certification Services To be the Single Point Referral / Knowledge Provider To cater Job Offers & Placement Database via COE M&E Portal To cater Business Offer & Tender Placement Services via COE M&E Portal

OVERALL BUSINESS PLAN

PHASE I: SETTING-UP KEY PERFORMANCE INDICATORS (KPIs) (1st YEAR: 2012)

PHASE II: OPERATIONAL (YEAR 2 & 3: 20132014)

PHASE III: SUSTAINABILITY & DEVELOPMENT (YEAR 4 & 5: 20152016)

Human Capital / Talent Development

Setting up physical structure / facilities of COE M&E

Intensify marketing and promotional effort to members of the industry about functionalities & services of COE M&E

Organise Business Matching Session / Seminars / Dialogues to gather feedback and ideas to improve and add COE M&E functionalities

Design Development Referral Point / Knowledge Database

Identify and appointment of management/ key personnel for COE M&E

Populated COE M&E referral materials/documents

Job Offers & Placement Database

Identify priority HR development/ training under Aerospace, Medical Devices, Semiconductor, E&E and Automotive industry

Acquire new facilities of high demand from the industries based on feedback

Members information gathering for database purposes Conducting training in the area of Aerospace, Medical Devices, Semiconductors, E&E and Automotive industry

Tender Placement / Business Offer

Develop more training modules required based on industries feedback Intensify marketing and promotional effort to members of the industry about existing & new services provided by COE M&E

Purchase of design equipments/softwares Identify & appoint inhouse personnel for Design Development / Testing & Certification

Setting-up of online COE portal Marketing and promotions to members of the industry about the

Providing design services for focused industries

Providing more training courses covering a wider range (low to high

Organise business matching session / Seminars / dialogues

KEY SERVICES OFFERED

PROPOSED SERVICES FOR COE M&E

Business offers/ Tender Placement

Job offers & Placement Database

Design Engineering / Testing & Certification

Human Capital Development

Single Point Reference / Knowledge

COE Online Portal / Social Networks

Center of Excellence (M&E)

KEY SERVICES OF COE M&E

The breakdown of the services proposed is as below: Human Capital Development To train and develop TMM To train and develop Design Engineers Other M&E related Trainings Design Engineering / Testing & Certification To offer Engineering Design stimulation, stress analysis etc. To offer Testing and Certification - R&D stage and preengineering stage

KEY SERVICES OF COE M&E

The breakdown of the services proposed is as below: Single Point Referral / Knowledge Provide M&E journals, Articles, Market Reports, Technical Consultancy Reports etc. Provide M&E Expert Database Job Offers & Placement Database To advertise new job placement by the industry from the industry To advertise new graduates listing from technical training institute and other related institutions.

KEY SERVICES OF COE M&E

The breakdown of the services proposed is as below: Business Offers / Tender Placement. To advertise projects and to find suppliers for M&E service providers To look for new business opportunities and business offers

KEY SERVICES OF COE M&E

Proposed Training Programmes:
Engineering materials Primary material-conversion Secondary material-conversion Materials-finishing processes Machine tools design considerations and manufacturing processes CAD/CAM & Communications IT Tool design and manufacture Plastic-deformation processes Process Control, Automation and Process Supervision Systems Finite Element & CFD analysis Experimental analysis of material-conversion processes Technology management issues.

KEY PERFORMANCE INDICATORS

ADDITIONAL PROPOSED BREAKTHROUGH SOLUTION

 High Value Offering Through Strategic Partners

The CoE will be linked to other national centres and its strategic alliances such as : The National Centre for Machinery & Tooling Technology (NCMTT) National Metrology Laboratory Advanced Automation & RFID Centre Advanced Materials Research Centre (AMREC) Automotive Engineering Centre National Precision Tooling Sdn. Bhd. Malaysia Design Council World Association of Industrial & Technological Research Organisations (WAITRO) SIRIM QAS International Sdn Bhd SIRIM Training Services Sdn Bhd SIME-SIRIM Technologies Sdn Bhd
Effective and Wider Coverage Through Online Media Networks Establishment of CoE M&E Online Portal/Media Networks.

FINANCIAL SUSTAINABILITY

REVENUE & COST STRUCTURE

The main Revenue Streams are:

Income generated from transformation training programme & Human Capital Development
Income from the asset utilization by the industry

Product design & engineering services

Membership and Portal Advertisements from the Online Portal for the reference materials and job placement advertisements. Annual Seminars and Technical Conference

REVENUE & COST STRUCTURE

The Main Costs are:

Initial Setup-up Cost (CAPEX): RM60 mil

Building (RM20 mil) Equipment (RM40 mil) Operational cost (OPEX): RM5 mil Salary G&A Utilities Online Portal & Software (Setup & Maintenance) Others (e.g.: subcontracting Charges)

CASH FLOW PROJECTION FOR COE M&E

YEAR INFLOW (Sales Revenue) - Government Grant - Human Capital Devt - Product Design & Engineering Fee - Asset & Facilities Utilisation - Membership Fee - Advertisements & others TOTAL INFLOW OUTFLOW (Expenditures) - Infrastructure: Building - Equipment - Emolument - G&A - Utilities - Online Portal Network & Software - Others (Sub-Contract Charges) TOTAL OUTFLOW NET CASHFLOW CUMMULATIVE NET CASHFLOW 60,000,000 5,000,000 5,000,000 20,000,000 40,000,000 900,000 300,000 120,000 150,000 540,000 2,010,000 -840,000 4,160,000 1,170,000 300,000 120,000 80,000 1,080,000 2,750,000 -445,000 3,715,000 1,494,000 300,000 120,000 80,000 1,620,000 3,614,000 -124,000 3,591,000 1,710,000 300,000 120,000 80,000 1,890,000 4,100,000 35,000 3,626,000 1,710,000 300,000 120,000 80,000 2,430,000 4,640,000 740,000 4,366,000 20,000,000 40,000,000 6,984,000 1,500,000 600,000 470,000 7,560,000 77,114,000 4,366,000 65,000,000 65,000,000 900,000 100,000 100,000 20,000 50,000 1,170,000 1,800,000 300,000 120,000 25,000 60,000 2,305,000 2,700,000 550,000 140,000 30,000 70,000 3,490,000 3,150,000 700,000 160,000 45,000 80,000 4,135,000 4,050,000 1,000,000 180,000 50,000 100,000 5,380,000 65,000,000 12,600,000 2,650,000 700,000 170,000 360,000 81,480,000 0 1 2 3 4 5 TOTAL

ASSUMPTIONS
Cash Inflow:
Assumptions:
Government Grant for CAPEX Government Grant for OPEX Training Courses for Year 1 Training Courses for Year 2 Training Courses for Year 3 Training Courses for Year 4 Training Courses for Year 5 Price Per Courses (RM) Number of Participants Per Course Product Design & Engineering Fee Asset & Facilities Utilisation Membership Fee Advertisements & others 60,000,000 5,000,000 10 20 30 35 45 3,000 30 100,000 100,000 20,000 50,000

ASSUMPTIONS
Cash Outflow:
Infrastructure: Building Equipment Emolument Yr 1 Emolument Yr 2 Emolument Yr 3 Emolument Yr 4 Emolument Yr 5 G&A Utilities Others (Sub-Contract Charges) - 60% of Training Revenue Online Portal Network - Setup Fee Online Portal Network & Software 20,000,000 40,000,000 900,000 1,170,000 1,494,000 1,710,000 1,710,000 300,000 120,000 60% 150,000 80,000

HUMAN RESOURCE EMOLUMENT

No. YEAR 1 No. YEAR 2 No . YEAR 3 No . YEAR 4 No. YEAR 5 TOTAL

CEO

180,000

180,000

180,000

180,000

180,000

900,000

MEDICAL DEVICES - Manager 1 84,000 1 84,000 1 84,000 1 84,000 1 84,000 420,000

- Executive
- Technical Staff Sub-Total AEROSPACE

1
0 2

54,000
0 138,000

2
1 4

108,000
30,000 192,000

3
2 6

162,000
60,000 246,000

3
3 7

162,000
90,000 246,000

3
3 7

162,000
90,000 246,000

648,000
270,000 1,068,000

- Manager
- Executive -Technical Staff Sub-Total

1
1 0 2

84,000
54,000 0 138,000

1
2 1 4

84,000
108,000 30,000 192,000

1
3 2 6

84,000
162,000 60,000 246,000

1
3 3 7

84,000
162,000 90,000 246,000

1
3 3 7

84,000
162,000 90,000 246,000

420,000
648,000 270,000 1,068,000

SEMICONDUCTORS
- Manager - Executive - Technical Staff 1 1 0 84,000 54,000 0 1 2 1 84,000 54,000 30,000 1 3 2 84,000 108,000 60,000 1 3 3 84,000 162,000 90,000 1 3 3 84,000 162,000 90,000 420,000 540,000 270,000

Sub-Total

138,000

138,000

192,000

246,000

246,000

960,000

HUMAN RESOURCE EMOLUMENT

AUTOMOTIVE - Manager 0 84,000 1 84,000 1 84,000 1 84,000 1 84,000 420,000

- Executive
- Technical Staff Sub-Total E&E

0
0 0

0
0 84,000

1
1 3

54,000
30,000 138,000

2
2 5

108,000
60,000 192,000

3
3 7

162,000
90,000 246,000

3
3 7

162,000
90,000 246,000

486,000
270,000 906,000

- Manager
- Executive - Technical Staff Sub-Total

0
0 0 0

84,000
0

1
1

84,000
54,000

1
2

84,000
108,000 60,000

1
3 3

84,000
162,000 90,000 246,000

1
3 3 7

84,000
162,000 90,000 246,000

420,000
486,000 270,000 906,000

0 1 30,000 2 ASSUMPTIONS: 84,000 3 138,000 5 Salary for CEO per month

192,000 7 15,000

MARKETING & BUS. DEVT

- Manager - Executive - Supporting Staff 1 1 1

Sub-Total
TOTAL ASSUMPTIONS:
Salary for CEO per month Salary for Manager per month Salary for Executive per month

3
10

Salary for Manager per month 7,000 84,000 1 84,000 1 84,000 1 Salary for Executive per month 4,500 54,000 2 108,000 3 162,000 4 Salary for Technical Staff per month 2,500 30,000 2 60,000 3 90,000 4 Salary for Supporting Staff per month 2,500 138,000 5 192,000 7 246,000 9 900,000 24 1,170,000 36 1,494,000 45

84,000 216,000 120,000

1 4 4

84,000 216,000 120,000

420,000 756,000 420,000

300,000
1,710,000

9
45

300,000
1,710,000

1,176,000
6,984,000

15,000 7,000 4,500 2,500 2,500

Salary for Technical Staff per month Salary for Supporting Staff per month

CAPEX (EQUIPMENT)
ITEMS 2011 2012 2013

DESIGN LAB CATIA SOLIDWORKS/PRO E /UGS INVENTOR CAE TRAINING LAB CATIA (EDUCATIONAL LICENCE) SOLIDWORKS/PRO E /UGS (EDUCATIONAL LICENCE) INVENTOR (EDUCATIONAL LICENCE) CAE TESTING LAB TESTING FACILITIES METROLOGY LAB CNC CMM CNC Profile projector
2,500,000 500,000 3,000,000 3,000,000 455,000 1,500,000 1,500,000 1,500,000 780,000 650,000 700,000 4,000,000 4,000,000 4,000,000 1,400,000 1,000,000

Laser Tracker
CNC Layout machine Optical scanner Faroe Arm RP LAB RP machine IT AND NETWORKING INFRASTRUCTURE TOTAL
GRAND TOTAL

1,000,000
1,500,000 500,000 300,000

2,500,000 1,000,000 14,135,000 14,650,000

2000000

10,500,000 39,285,000

PROPOSED SITE

XEROM MICRO COMPONENTS (M) SDN.BHD PTD 7911 PUSAT BENGKEL PERUSAHAAN, TAMAN PONTIAN JAYA 82000 PONTIAN JOHOR MALAYSIA