MBMFullFinalReport FarhanKamal

2011 Industrial Placement Final Report
Farhan Kamal MEng Mechanical Engineering with Management The University of Edinburgh Mercedes-Benz Malaysia (MBM) Quality Management (QM) Intern 04-Aug-11
Industrial Placement 2011 Final Report

Mercedes-Benz Malaysia Kamal, Farhan 1. Company Profile-MBM MBM Brief Profile Mercedes-Benz Malaysia Sdn Bhd (MBM) is a joint venture between Daimler AG and Cycle & Carriage Bintang Berhad and it was incorporated on 1st January 2003. At present, it employs over 300 employees with its administrative and sales office located at Menara TM in Kuala Lumpur while its production plant is located at Pekan, Pahang. MBM manages the wholesale distribution of Mercedes-Benz, and Mitsubishi Fuso vehicles, service and spare parts as well as software development for global sales solution and automotive apprentice training. MBM has a retail network of 59 authorized dealers for the Mercedes-Benz, Smart and Mitsubishi Fuso brands (Mercedes-Benz Malaysia (MBM)). At the production plant, there are two main production lines: Passenger Car (PC) line that produces 12 C-Class units, 12 E-Class units, and 2 S-Class units daily; Commercial Vehicle (CV) line that produces 10 Light Duty (LD) units as well as 2 Heavy Duty (HD) units daily. Other niche models like the B-Class, M-Class, C-Class sports coupe, CLK and SL are imported. In collaboration with DRB-Hicom Berhad, a production plant for the local assembly of Mercedes-Benz S-Class, E-Class and C-Class as well as the Mercedes-Benz and Mitsubishi Fuso commercial vehicles was established in 2004. The production plant consists of 4 departments: Procurement and Logistics; Production Engineering; Quality Management and Vehicle Preparation Centre (VPC/PDI based in Production Plant, under Sales & Marketing management). MBM Vision Mercedes-Benz Malaysia (MBM) consisting of 51% Daimler AG and 49% Cycle & Carriage Bintang Berhad really has the passion for perfection as stated in the quality policy. From the top management down to the executive level, MBM distinctly exudes its drive to maintain the number one position in the luxury car segment as well as its commitment to guarantee customer satisfaction in every unit it produces. Branding With a legacy that stretches back more than a hundred years, Mercedes-Benz strives constantly to remain the finest. The Mercedes-Benz brand name originated from the merger in 1926 of Gottlieb Daimlers company Daimler-Motoren Gesellschaft and Karl Benzs company Benz & Cie. While Benz & Cie kept their original name in their trademark, a completely new and unusual brand name, Mercedes which means grace in Spanish, was brought out for the products of Daimler-Motoren Gesellschaft. Page 1 of 48

Mercedes-Benz Malaysia Kamal, Farhan
As for FUSO, its history began with a single bus, Mitsubishis first B46 commercial bus, to which the FUSO name was first applied. Facing the challenges of dramatically changing world, from severe economic trends to environmental issues and ever-increasing globalization, Mitsubishi Fuso Truck and Bus Corporation (MFTBC) became a fully consolidated business unit of Daimler AG, the worlds largest commercial vehicle manufacturer. MFTBC is committed to manufacturing, sales, and service that will earn the acclaim, trust and full satisfaction of its customers. (MBM Intranet) Workforce
Position CEO Vice Presidents General Managers Senior Managers Managers Executives Non Executives Total No. of Staff 1 5 5 14 59 181 42 307
Table 1: MBM workforce by position (Source: MBM Intranet)
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Diagram 1: MBM Organization Chart Overview (Source: MBM Intranet)
2. MBM Corporate Structure The corporate organization of MBM may be divided to several key functional departments namely the Sales & Marketing, After Sales, Finance & Controlling (FICO), Information Technology (IT), Corporate Communication, Network Development, Human Resource, Production Plant, and Commercial Vehicle (CV).
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Mercedes-Benz Malaysia Kamal, Farhan Sales & Marketing This department is responsible for the planning, pricing, ordering, delivery, and reporting of Mercedes-Benz vehicles as well as for managing the promotion, advertising, events, marketing research, and media communication of Mercedes-Benz brand & products.
Diagram 2: Sales & Marketing function cycle (Source: MBM Intranet) After Sales In ensuring profitable growth by considering all aspects of customers needs, this department consists of three divisions: Part Operations (spare parts etc); Technical Support (product training, warranty claims etc), Service Marketing (support for dealer network).
Finance & Controlling (FICO) FICO, consisting of Accounting, Controlling, and Treasury, is responsible for ensuring accuracy of financial data, enhancing profitability through financial analysis, and putting in place control as well as managing risk to protect companys resources.
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Mercedes-Benz Malaysia Kamal, Farhan Information Technology (IT) There are three main divisions within IT department-Office Support, SAP Support and After Sales Support operating in synchrony with a collateral division Technologies Services Solutions Asia (TSS Asia). TSS Asia is a 100% Daimler AG subsidiary that helps Daimler AG maintain its independence in choosing suitable IT solutions by in-sourcing strategic IT competence. TSS Asia has established a group of software experts who focus on providing quality offshore support and maintenance services. Corporate Communication This department is in charge of both external and internal communications and plays a vital role in maintaining a good image of the company with investors, prospects, employees, industry analysts and the media. Amongst the main responsibilities of its personnel include translating corporate objectives into a global messaging platform and driving the execution worldwide; acting as a corporate liaison with key media, relevant government, and private agencies. Network Development As an integral part of MBM, it develops and manages the distribution/retail network of MBM products in the market with the target of ensuring that an optimized and professional network is in place. Its roles are comprehensive i.e. from identifying potential candidates to be the dealers through to the process of evaluating and selecting successful dealers and managing the whole dealer network through business meetings and/or newsletters. Human Resource The responsibilities of this department include working with MBM Management Team in implementing Human Resource activities and initiatives directed by Head Office and/or Regional Office to ensure employees, HR Systems and Processes are fully integrated to the Daimler Group Systems and Processes philosophy as well as working closely with local management and employees in all Human Resource issues and concerns within MBM.
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Mercedes-Benz Malaysia Kamal, Farhan Commercial Vehicle (CV) A department exclusively managing Mitsubishi Fuso product, fleet, retail, and marketing activities in Malaysia was established in the year 2005. Through its product management division, it is responsible for ordering monthly Fuso CKD; reporting the activities, financial result, market information etc internally within MBM and to MFTBC (based in Japan); communicating with government departments for approvals; product planning whenever a new model is introduced, there are changes in the specifications etc. Production Plant In collaboration with DRB-Hicom Berhad, a production plant for the local assembly of Mercedes-Benz S-Class, E-Class and C-Class as well as the Mercedes-Benz and Mitsubishi Fuso commercial vehicles was established in 2004. The production plant consists of 4 departments: Procurement and Logistics; Production Engineering; Quality Management and Vehicle Preparation Centre (VPC/PDI based in Production Plant, under Sales & Marketing management).
3. Process-approach ISO 9001: 2008 Quality Management System (QMS) in MBM ISO 9001: 2008 allows an organization flexibility in the way it chooses to document its quality management system (QMS). This enables each individual organization to develop the minimum amount of documentation needed in order to demonstrate the effective planning, operation, and control of its processes and the implementation and continual improvement of the effectiveness of its QMS. (ISO, 2008) ISO 9001 has always been requiring a documented quality management system rather than a system of documents. Generally, the quality management system documentation shall include the following:- (ISO, 2008) (a) documented statements of a quality policy and quality objectives (b) a quality manual (c) documented procedures required by this International Standard (d) documents needed by the organization to ensure the effective planning, operation and control of its processes (e) records required by this International Standard Quality Policy & Quality Objectives It is the responsibility of the top management to ensure that the quality policy (a) is appropriate to the purpose of the organization Page 6 of 48

Mercedes-Benz Malaysia Kamal, Farhan (b) includes a commitment to comply with requirements and continually improve the effectiveness of the quality management system (c) provides a framework for establishing and reviewing quality objectives (d) is communicated and understood within the organization (e) is reviewed for continuing suitability As for the quality objectives, it is to be ensured that these objectives are established at relevant functions and levels within the organization. These objectives shall be measurable and consistent with the quality policy. (ISO, 2008) Quality Manual The organization shall establish and maintain a quality manual that includes:- (ISO, 2008) (a) the scope of the quality management system, including the details and justifications for any exclusion (b) the documented procedures established for the quality management system, or reference to them (c) a description of the interaction between the processes of the quality management system Documented Procedures ISO 9001: 2008 specifically requires the organization to have documented procedures for the following six activities:- (ISO, 2008) (a) Control of documents (b) Control of records (c) Internal Audit (d) Control of nonconforming product (e) Corrective action (f) Preventive action Documents It may be necessary for an organization to develop documents other than documented procedures to ensure smooth planning, operation and control of its processes. However, the only documents specifically mentioned in ISO 9001: 2008 are quality policy, quality objectives, and quality manual. There are several requirements of ISO 9001: 2008 where an organization could add value to its QMS and demonstrate conformity by the preparation of other documents although the standard does not specifically require them. These documents may include:(ISO, 2008) (a) Process maps, process flow charts and/or process descriptions Page 7 of 48

Mercedes-Benz Malaysia Kamal, Farhan (b) (c) (d) (e) (f) (g) (h) (i) Organization charts Specifications Work and/or test instructions Documents containing internal communications Productions schedules Approved supplier lists Test and inspection plans Quality plans
Records Examples of records specifically required by ISO 9001: 2008 include management reviews; training, skills & experience; results of supplier evaluations; results of calibration and verification of measuring equipment; results of corrective action & preventive action etc. (ISO, 2008)
4. Production Quality Management System (QMS) in MBM Complying with ISO 9001: 2008 and ISO/TS 16949:2009, MBM implements a 4eyed approach within Quality Management. There are four stages of quality feedback loops or control systems that require excellent co-operation and cross-communication between four different departments at the production plant. Control System 1 (CS1)-Regular Inspection Before carrying out a certain process, both the pre-processed product and the process itself need to be checked so that they comply with the specifications and work instructions respectively. This inspection is usually carried out by the workers themselves and in case of any problem, the workers will notify the supervisor who will set up an escalation model as a problem-solving process, in case of repetitive/major defects. It is the responsibility of the supervisor to implement the second hand check on all identified contents according to the control plan. Those contents usually involve connection for welding, screws and plug connection. Control System 2 (CS2)-Section/ Gate Check At each stage of the production line, there are quality gates/stations (Qgates/stations) at which qualified inspectors from the quality management (QM) department conduct the product check verifying CS1. All defects are recorded immediately on the job cards and the supervisors will act on those to initiate immediate corrective/preventive actions and they will verify the rework results. The rework time in Page 8 of 48

Mercedes-Benz Malaysia Kamal, Farhan the line (Q-Gate) must be less than 15 minutes while it is permissible for the rework time to be beyond that in rework station. Control System 3 (CS3)-Production/Process Audit (PA) PA is a production independent method to verify the efficiencies of CS1 and CS2 in all production stations/areas. The random sample size/amount of audits depends on the Production Audit manual, production volume and actual quality situation (depending on the escalation model result) while the process audit for the whole production line from the warehouse to the VPC /PDI is carried out twice in a year according to a pre-planned schedule. Implementation and findings are recorded in job cards and checksheets and reports will be prepared by the auditors. The supervisors will act on those reports to implement immediate corrective action and auditors are responsible to recheck all rework activities before stamping in the job cards which will be the last thing to do before sending the products to the VPC/PDI.
Control System 4 (CS4)-Customer Product Audit (CPA) CPA is described to be a production independent method to verify the quality characteristics of the finished vehicles based on the feedbacks from the customers perception of quality and defect on vehicle. It covers a static inspection, dynamic test and rain test. Defects are reported to the supervisor and the auditor checks the rework results. Preventive measures for repetitive defects will be suggested and implemented.
5. Roles in MBM There have been diverse tasks assigned during MBM placement up to now. All tasks are challenging in their own ways and the primary tasks assigned include the following:(A) Providing possible solutions to achieve the companys target in the Commercial Vehicle (CV) line i.e. continuously increasing the productivity, reducing costs, as well as improving the quality standards at the same time. (B) Suggesting ways to prevent major problems at the CV line as well as to reduce the defects detected at the quality gates. (C) Suggesting a monitoring system that will clearly inform the top management of the real situation at the CV line in terms of the problems and defects.
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Mercedes-Benz Malaysia Kamal, Farhan (D) Conducting training sessions for the CS1 operators based on the principle Quality is to be produced, not to be checked and Quality starts in CS1 (E) Assisting in the product audit documentation (F) Assisting in the production plant internal documentation audit (G) Involved in CV projects namely the New Tester Line Project, the FG83PE 4 x 4 Pilot Production (H) Involved in the After Sales Field Issues (I) Preparing the weekly Quality Management System (QMS) report (J) Providing a practical solution to the Corrective Action Request (CAR) Data Management System
6. Streamlining CV Line Statistical Process Control (SPC) Analysis SPC methods, backed by management commitment and good organization, provide objective means of controlling quality in a production process. It is a strategy for reducing variability, the cause of most quality problems such as the variation in products, in ways of doing things, in materials and even in peoples attitudes (Oakland, 1997). The main objectives of this SPC analysis are to determine the effectiveness of CS1 and CS2 as well as to identify the main defects that affect the quality of the finished products (for Light Duty Model only). Preventive measures are then suggested based on the cause-and-effect (fishbone) diagrams. Prior to carrying out the analysis, it is imperative that the production process flow for Mitsubishi Fuso TD Canter (Light Duty Model) is carefully studied and understood. The following flow diagram shows the sequence of the quality gates found in the production line.
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Mercedes-Benz Malaysia Kamal, Farhan FUSO Quality Gate Sequence-CS2
Indicators:*FQG: Final Quality Gate *HAMM: Hicom Automotive Manufacturer Malaysia *MBM: Mercedes-Benz Malaysia *VPC: Vehicle Preparation Centre Diagram 3: FUSO Quality Gate Sequence Trend Analysis A trend analysis of the defects per unit found on TD Canter (LD FUSO) from January 2010 until February 2011 was carried out to determine the correlation between three categories or production stages-body, paint and buy-off 2 (HAMM + MBM). Since buy-off process is aimed primarily at finding the defects on both the body surface (such as dents etc.) and the coating (such as scratches, sanding marks etc.), the buy-off plot is compared with the body + paint plot. In general, as it is more desirable in terms of time and cost for the defects to be found early in the production process, DPU for body + paint should be greater than the DPU for buy-off which is the last process before vehicles are sent to VPC. Nevertheless, it also means that there might be some problems with the production processes at paint shop and body shop that lead to the more frequent occurrences of the defects.
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DPU acc. to Categories

20 15 DPU 10 5 0
M 1 0 AR CH 1 0 AP R 1 0 M AY 1 0 JU NE 1 0 JU LY '1 0 AU G '1 0 SE PT '1 0 O C T' 10 NO V' 10 DE C' 10 JA N '11 FE B' 11 JA N FE B 1 0
Body Paint Buy-Off Body + Paint
Months in 2010
Indicators:* Peak for each category *DPU: Defects per unit Diagram 4: Plot of DPU according to defect categories from Jan 2010 until Feb 2011 for TD Canter (LD FUSO)
The DPU for paint starts with the peak (10.6) and then slumps over a few months until June 2010 and then begins to increase up until 10.45 in December 2010 before slightly decreasing in the first two months of 2011. As for body DPU, it can be seen that the DPU level is below 5 except in March 2010. Generally, it can be said that the body DPU is decreasing throughout the period with the lowest being 0.77 in September 2010. It is intuitive to note that the DPU level for body is much less than that of paint due to the fact that there are more types of paint defects in comparison with those of body defects. The trend of paint DPU is really a concern as the target DPU for paint is only 4 on average while the trend of body DPU shows that it is on the right track to move below its target DPU which is 2 (the average DPU/month for body in 2010 is 2.21). The reasons behind the alarming trend of paint DPU will be dissected in the fishbone diagram section.
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Mercedes-Benz Malaysia Kamal, Farhan Comparing the buy-off DPU with the paint + body DPU is extremely important in order to know how effective CS1 and CS2 are in detecting defects early in the production process so that a lot of time for rework can be avoided and instead, the production team will have more time to focus on the production process, thus increasing the production rate. As can be observed from diagram, the DPU level for body + paint is higher than that for buy-off for all months except in August 2010. The biggest difference between these two DPU plots is 7.81 which is in December 2010. In terms of general trend, the diagram suggests that CS2 (the quality gate control system) works effectively to detect defects early in the process but this also gives the impression that the problems at the stations (CS1) are soaring especially at the paint shop considering the DPU level being well above the target DPU. Pareto Analysis Pareto chart which is a bar chart arranged from the largest to smallest, is used in determining which category/categories contribute the most to a certain problem (George, Rowlands, Price, & Maxey, 2005). Usually, 80% of the amount of y-axis variable denotes the main contributor to the problem. With respect to TD Canter (LD FUSO), two Pareto charts are plotted-the average DPU/month in 2010 as well as rework time (in minutes) according to the defect categories. The DPU/month table and its Pareto chart are presented as follow:Defect Categories (Sequential) Average DPU/Month Target DPU/Month (<) DPU Difference Body 2.21 2.00 0.21 Trim 1.08 1.00 0.08 FQG & Mech 0.56 0.50 0.06 U/Body 0.39 0.30 0.09 Paint 7.87 4.00 3.87 BuyOff 7.08 6.00 1.08
Table 2: Average DPU/month for TD Canter (LD FUSO) in 2010
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DPU/Month in 2010 acc. To Defect Categories 9 8 7 6 5 4 3 2 1 0 Paint Buy-Off Body Trim FQG & Mech U/Body 120.00 100.00 80.00 60.00 40.00 20.00 0.00
Average DPU/Month
Target DPU/Month (<)
Cumulative DPU %
Diagram 5: Pareto chart of DPU/month in 2010 according to defect categories
The rework time table and its Pareto chart are presented as follow:Defect Categories (Sequential) Longest Possible Rework Time (mins)* Body 30 Trim 60 FQG & Mech 1440 Alarm System/ Spongy Brake U/Body 60 Paint 15 Buy-Off 30
Defect Detail**
Remarks:-
Dent
Alignm ent
Leakage
Scratches etc
Secondary Dent
*It refers to the total time for rework to be done (Rework Time + Waiting Time) **The defect that requires the greatest time for rework
Table 3: Rework time (mins) for TD Canter (LD FUSO) in 2010
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Longest Possible Re work Time (mins) acc. To Defect Cate gories 1600 1400 1200 1000 800 600 400 200 0 102.00 100.00 98.00 96.00 94.00 92.00 90.00 88.00 86.00 84.00 82.00
Time (mins)
M ec h
U /B od y
Bo dy
FQ G
Longest PossibleDe fe ct Cate gories Rework Time (mins)*
Bu yO ff
&
Diagram 6: Pareto chart of rework time (mins) according to defect categories Diagram 3 indicates that paint and buy-off are two main contributors to DPU in 2010 considering that these two categories make up around 80% of the average DPU in 2010. Since usually, during the buy-off, paint defect is detected most frequently, paint category will be stressed on in the fishbone diagram section. As for the target DPU/month, the average DPU/month is slightly greater than the target DPU/month for all categories except the paint category. The fact that the average DPU/month for paint is much greater than its target connotes that there might be some problems with the paint process. The most frequent problems may not have the biggest impact in terms of time, quality, or costs (George, Rowlands, Price, & Maxey, 2005). Therefore, another Pareto chart that looks at the impact-the rework time of defects was plotted. As observed from diagram 4, it is crystal clear that Mechanical FQG defect leads to the longest rework time. Defects like faulty alarm system and faulty brake require a lot of time in terms of detecting the main causes of these problems. There is a high possibility that the whole system/part needs to be replaced with a new one.
Pa in t
Cumulative Rework Time %
Tr im
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Mercedes-Benz Malaysia Kamal, Farhan Fishbone Diagram Cause-and-effect or fishbone diagram is useful in ensuring that a balanced list of ideas has been generated during brainstorming and major possible causes are not overlooked. Fishbone diagrams for paint defect as well as mechanical defect are as follow:-
Diagram 7: Fishbone 1-Paint DPU
Diagram 8: Fishbone 2-Mechanical DPU
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Mercedes-Benz Malaysia Kamal, Farhan Based on diagram 5, the causes are divided into four sections-policies, workforce, facilities & equipment, procedures. Amongst these four sections, after several site visits and investigation, there is a problem with the coating system (currently 2 coat system-ED + Final Coat). Not applying primer paint before the final coating makes the final coating vulnerable to sanding marks and this has been confirmed by the inspectors at the paint shop FQG. Primer paint provides a surface that the final coating can stick firmly to apart from giving more uniform finish. Furthermore, certain primer paint might contain additional materials to protect against corrosion and rust (Wikipedia, Primer (paint)). As for the mechanical problems, the root causes also lie in the procedure section. It has been observed that CS1 inspection is not working effectively. Though mistakes do not occur frequently, whenever it occurs, it has a great impact-a lot of time will be lost and the production process will be badly affected. Apart from this, machine calibration was not carried out according to the schedule leading to faulty readings at the tester line. As the saying goes, prevention is better than cure, suggested preventive measures are presented in the table below.
Result (Root Causes)-after observation and investigation No primer paint, so it's easy for sanding mark defects to occur-To confirm with the supervisor at the paint shop [his records of defects]
Suggested Preventive Measures
PAINT SHOP
1. Lax inspection in CS1 after the assembling of parts at each stationTo confirm with the mechanical assembly supervisor [Procedures]; MECHANICAL, 2. Delay in calibrating the tester TRIM FINAL machine leading to wrong readings given by the machine [Facilities & QUALITY Equipment/Procedures] GATE
Applying primer paint before the final coating Inspection before, during, and after the assembling/installation (CS1)/checking (CS2) of partsCS1 operators /CS2 inspectors are responsible for this; 1. A reminder workshop/class to be organized once a week to stress the importance of CS1 inspection and CS2 checking; 2. Simple and clear guidelines based on the accepted level of visual appearances(sample border, OK /NOT OK) 2. Machine maintenance needs to be done according to the schedulespecific maintenance team?
Table 4: Root causes & their preventive measures
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Mercedes-Benz Malaysia Kamal, Farhan Follow-up actions with regard to the preventive measures have to be further discussed with other departments. One thing that has to be considered whether to apply the primer paint or not is the cost involved in transforming the paint process from 2 coat system to 3 coat system. With respect to the CS1 & CS2 training, it is suggested that a class/workshop is conducted once a week and the session (comprising a small group) should only last for about half an hour. Monitoring the progress in CS1 inspection is also equally important. CS1 Awareness Training Objectives A Statistical Process Control (SPC) analysis had been carried out to identify the root causes of the major defects detected in the TD Canter production line. With respect to the mechanical defects that led to a lot of time lost, it was believed that its root causes lay in the lack of procedural enforcement. For instance, faulty alarm system was attributed to the lax inspection in CS1 while suspected spongy brake case to the delayed calibration of the tester machine which fell under the maintenance teams responsibilities. Having mentioned the above results from the SPC analysis, it was strongly recommended that a proper CS1 training specific for Commercial Vehicle (CV) production team is conducted over a planned period of time considering that no CS1 training for CV had been conducted before and the fact that quality starts with CS1. The main purpose of this CS1 training is to strengthen the quality foundation of CS1 as well as to motivate the production team in improving their work quality in line with CS1 philosophy. Apart from that, it is hoped that valuable feedbacks can be gathered from the participants with regard to any difficulty in upholding and practicing the CS1 standards. Training Materials CS1 awareness training will be held in two stages: the first stage will be aimed at Light Duty (LD) CS1 operators while the second stage at Heavy Duty (HD) CS1 operators. Since there is no LD production on every Friday in April, it is proposed that the training is held on the second and fourth Friday. The exact time for the session will be decided later. As for the trainers, there will be a trainer from each of the PE and QM departments. The trainer from the QM department will talk about the general philosophy of Total Quality Management (TQM) as well as the QM documentations whereas the trainer from the PE department will talk about the details and extra information related to CS1 as well as PE documentations. Page 18 of 48

A CS1 syllabus will be drafted based on the CS1 Handbook and the Quality Management Handbook as well as other relevant sources. Concise yet illustrative presentation slides will be made based on the aforementioned syllabus and those slides are to be adjusted so as to make all CS1 operators fully understand the contents. Analysis of the Training Effectiveness As for the evaluation, the effectiveness of the CS1 Awareness Training was assessed at the end of the training session via multiple choice answers tests and questionnaires to be completed by all participants. The marks from the tests as well as inputs from the questionnaires are to be fully utilized for future programs. Marks from the tests were categorized into several levels of marks directly indicating the participants level of understanding. It has been found that generally, participants obtain more than 60% which means that their level of understanding during the training session can be regarded as very good. (See appendices) Further analysis has also been conducted by identifying the question that has been answered correctly by most of the participants and the question that has been answered wrongly by most of them. Question by question count approach has been used in this analysis that will be guidance for the trainers in improving their explaining in certain segments of the training materials. (See appendices) As for the feedbacks, verbal feedbacks have been gathered from the participants during the training session while written feedbacks have been extracted from the questionnaires filled up by all the participants and these will definitely be dissected further. In evaluating the effectiveness of the CS1 training conducted in terms of improving the role of CS1 operation to produce quality, 4 stages of evaluation has been considered. These stages can be concisely described as follow:(a) Reaction Stage: Feedback gathered during the training (b) Learning Stage: Results from the post-training tests & questionnaires (c) Behavior Stage: Observed during the production process (d) Effectiveness Stage: Analysis of the problems and defects detected at the production line So far, the evaluation has passed through two stages namely the reaction as well as the learning stage. Since the current monitoring system lacks a lot of things for it to be used as a platform to go through the last two stages, a new transparent monitoring system has been proposed with the monitoring team having the responsibility to produce a report after a certain period of time. Page 19 of 48

Mercedes-Benz Malaysia Kamal, Farhan Transparent Monitoring System (TMS) Follow-Up Action: Kaizen Team As a follow-up action to the CS1 Awareness Training that has been carried out, there shall be a monitoring team whose main task is to monitor the problems or defects detected in the production line and carry out certain analyses in order to come up with preventive measures every two weeks. It has been observed that the teamwork between different departments at the production plant is very much lacking particularly at the executive level. Whenever there is a problem occurring at the production line, only a staff from a department will be assigned to be in charge in solving the problem while other staffs from other departments will not take any effort to help solving the problem even though the problem might be relevant with their job scopes. There will be a multidisciplinary team consisting of staffs from the Production Engineering (PE) department, the Quality Management (QM) department and the Logistics department that has the main task of monitoring the defects as well as problems detected in the production line and carrying out the SPC analysis in order to come up with preventive measures every two weeks. The main objective of this Kaizen team is to prevent major problems from occurring during the production process. In the event of major problems such as machines faulty reading, parts not being available, and faulty parts (might be due to suppliers fault or damage during the handling by logistics staffs), there is a high possibility that the whole production line will be stopped and the company will incur a substantial amount of losses in terms of productivity. A small group of operators will be called upon once in every two weeks by the team so that the preventive measures can be properly explained to them. The session should last between 30 to 40 minutes and the team will monitor the production line afterwards to make sure that all preventive measures are carried out up to the required standard. Why cross-disciplinary monitoring team? Hence, a monitoring team consisting of staffs from the Production Engineering (PE) department, the Quality Management (QM) department as well as the Logistics (LO) department shall be set up for the sake of expediting the problem solving process and coming up with more comprehensive and reliable decisions.
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Mercedes-Benz Malaysia Kamal, Farhan The team approach to problem solving has many advantages over allowing individuals to work separately:- (Oakland, 1997) A greater variety of complex problems may be tackled. (Complexity) Problems can be solved more efficiently due to the fact that a team possesses a greater diversity of knowledge, skill, and experience. (Speed/ Efficiency) The approach boosts morale and ownership through participation in problem solving and decision making. (Job Satisfaction) Problems that cross departmental or functional boundaries can be dealt with more easily. (Effectiveness) The quality of decision making in good teams is high, thus might be more worthwhile to be implemented. (Quality of Decisions) Purpose of Project Prevention is better than cure. In line with the companys mission to increase productivity and to reduce costs as well as to improve the quality standards of the units produced at the same time, it is much more favorable to the company if preventive measures are stressed instead of always coming up with corrective measures whenever a problem arises. Based on the aforementioned statement, the main purpose of the setting up of a cross-disciplinary monitoring team is to prevent major problems in the production line and to further reduce the Defects Per Unit (DPU) in the long run. Implementation Plan It is proposed that 2 staffs from each department work together in carrying out the SPC Analysis the trend analysis, the Pareto analysis, and Cause & Effect analysis prior to a brainstorming session that will produce a number of ideas that can be taken as the preventive measures. The measures or actions can be categorized into several headings namely the LO supply management, the production/ PE, the maintenance operation, and the supplier management (managed by QM). With regards to the time frame, it is suggested that after 2 weeks of monitoring, a report consisting of the Cause & Effect analysis as well as a list of preventive measures should be presented to the upper management for immediate actions. Afterwards, the team shall continue with their monitoring until a month has passed and they have to present a complete report of the SPC analysis and the preventive measures in an easy-tounderstand format.
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Mercedes-Benz Malaysia Kamal, Farhan Evaluation The evaluation of the effectiveness of the monitoring process depends on the results presented by the monitoring team. Less preventive measures proposed as the time passes by might most probably indicate that the number of major problems at the production line has been reduced. It will be known whether the same problem occurs over and over again even though preventive measures have been proposed and presented. This is of the utmost importance since the measures proposed by the team have to be effective and have to be implemented according to the teams proposals. Less effective measures might have to be replaced with more effective ones. Eventually, it is hoped that the number of major problems at the production line can be reduced to an extent at which the production can run as smoothly as possible towards achieving the companys target.
Diagram 9: General Overview of the Transparent Monitoring System
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Mercedes-Benz Malaysia Kamal, Farhan With reference to the general overview of the transparent monitoring system, the CV lines supervisor was assigned to present a weekly problem report which comprises the daily problems identified at the assembly line (both mechanical and trim). The daily problem report sheet can be viewed in the appendices. In the remarks column, the supervisor was required to state the causes of the problems identified at the CV assembly line whenever possible. One week has passed and the first weekly report has been obtained. As a conclusion after a cross-departmental meeting at the executive level, there were two main problems at the line and these can be summarized as follow:NO PROBLEM AVERAGE REMARKS TYPE DOWNTIME (STATEMENT OF PERIOD CAUSES) Fog Lamp not fitted Material One Whole Still waiting for CKD Day supply from Japan Hoist Breakdown Machine 30 minutes Cable problem Table 5: Summary of CV Assembly Line Weekly Problem Report PROBLEM
1 2
Based on the table above, the causes of the problems are clearly stated. The first problem is within the job scope of the Logistics personnel while Maintenance personnel are responsible for the second one. The Maintenance Team which is under the Production Engineering (PE) department managed to repair the hoist in 30 minutes on average causing the assembly line to stall for that period of time. As for the frequency, this kind of problem happened twice last week. Meanwhile, the first problem, which is due to the shortage of parts, did not cause the assembly line to cease but since cripple units were produced, the units could not be inspected by the Quality Management (QM) team. This led to a quick decision by the upper management to store the units in the buffer area while waiting for the CKD supplies to arrive. Nonetheless, this has caused the units in the buffer area to overflow due to lack of space. Up until now, only one lot (consisting of 12 units) of CKD supplies has arrived while the rest of the supplies are expected to arrive next week (third week of July 2011). As mentioned before, causes are clearly stated in the weekly problem report. However, these on-the-surface causes are not sufficient for the monitoring team to suggest preventive measures. This means that the root causes of the problems have to be identified. For instance, as for the hoist problem, the root cause might be the fact that the maintenance team is not carrying out maintenance works according to the schedule. Though this is just a possibility, it has to be investigated further. Page 23 of 48

After considering suggestions from MFTBC technical assistants, it has been decided that the problems detected during the product audit (PA) sessions also have to be considered by the monitoring team. The TMS now looks like the following diagram:-
Diagram 10: New Transparent Monitoring System (TMS) As shown in the diagram above, CS3 auditors would submit a weekly product audit report to the supervisor/leader of the CV line so that the supervisor/leader could present both Daily Problem Report as well as Product Audit Report to the monitoring team. In order to clearly clarify the actual sequence of events in the TMS, the following process flow of the TMS has been presented to the monitoring team:-
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Diagram 11: Transparent Monitoring System (TMS) Process Flow With 2 weeks before presenting the trial run results of this transparent monitoring system (TMS) to the top management, requirements for a successful monitoring system have been identified. These are presented as follow:(a) Strong leadership in the monitoring team. There is a need for a visionary leader in the team itself so that practical preventive measures could be suggested on a continual basis and all these measures are implemented by the concerned operators/inspectors in a way that is up to the teams expectations. (b) Commitment from the top management. It would not suffice if only the employees at the executive level are committed in implementing this monitoring system. If the top management desires for a Kaizen (continuous improvement)based monitoring at the CV line, their commitment is undeniably crucial. (c) Teamwork. One person seeking glory does not accomplish much. Success is the result of people pulling together to meet common goals. (Maxwell, 2002) Findings as well suggestions obtained from the trial run would be presented to the top management for due considerations.
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Mercedes-Benz Malaysia Kamal, Farhan 7. New Model FG83PE 4 x 4 Pilot Production Project Overview This new project aims to facilitate the production of a new Mitsubishi FUSO model and it involves several changes to the previous FE 4 x 2 models. This project involves all departments of the MBM production plant-logistics, production engineering, quality management, and VPC/PDI. The main alteration is the transmission system from rear wheel drive to all wheel drive. Apart from this, since the frame design is different, the frame stand has to be modified according to the instructions from Mitsubishi FUSO Truck & Bus Corporation (MFTBC). As for the cabin, a new stud welding jig has to be ordered from the supplier. At present, there has been a major problem with the tester line due to the fact that the existing tester line can only cater for models with 4 x 2 transmission system. With the introduction of this new project, initially the production engineering (PE) team thought that the tester line has to be modified by putting a roller for the front wheel as the front wheel will also spin. Nonetheless, after a correspondence with MFTBC, PE now understands that there is a transmission selector switch inside the cabin which means that during the speed test, 4 x 4 transmission mode can be switched off, thus a new roller for the front wheel is unnecessary. Other than this, there have been uncertainties as to whether the front wheel should also be aligned as well as whether the braking force value is the same as that of the previous model. All modifications are to be planned and implemented by the production engineering department. Project Planning The first stage of any project involves a thorough planning from all departments. In the quality management (QM) department, it starts with a work package that comprises all things necessary for quality inspections to run smoothly and efficiently. It is divided into four sections: body shop, assembly, chassis frame, and tester line. The project started with the initial discussion of the work package among QM staffs to determine whether any adjustment to the inspection/quality documents such as the travelers and inspection manuals; the list of inspection tools; training plan and a few other things is necessary. It is the responsibility of the QM staffs to make a pre-control plan based on the Failure Mode & Effect Analysis (FMEA) which is under the responsibility of the PE team.
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Mercedes-Benz Malaysia Kamal, Farhan The schedule summary for the new project is as follows:Time Period Apr '11 until May '11
Activities Indicators:MFTBC-Mitsubishi Fuso Truck & Bus Corporation MBM-Mercedes-Benz Malaysia Table 6: FG83PE 4 x 4 project schedule summary Impact of Tsunami in Japan
Oct '10 until Mar '11 Drawing by MFTBC; Manufacturing of jig and welding equipment by MBM; Manufacturing of frame by MFTBC
Jun '11 until Aug '11
Pilot production; Technical Assistance for frame and chassis
Mass production; Sales
Due to the impact of tsunami as well as the radiation leak issue in Japan at the moment, MFTBC has been slowing down its operation since certain part supplies fail to reach their major plant in the area of Kawasaki, Tokyo. As a result of this, CKD plant in Pekan, Malaysia has also been reducing its production rate as CKD kits for Mitsubishi Fuso are rapidly diminishing and new kits have not arrived in Malaysia since the end of March this year. Considering this major problem, MBM has decided to delay the pilot production of the new model-FG83PE 4 x 4 to an unknown time. There is a high possibility that the new project will start off next year since Japan requires at least a year to recover from the aftermath of the tsunami and the radiation leaks. New Date for the Pilot Production New model FG83PE 4 x 4 pilot production which was previously scheduled to be in April, has been postponed to the last week of July 2011 due to the tsunami disaster and the nuclear crisis in Japan. According to the confirmed schedule, the pilot production would be carried out from the 25th to 29th of July 2011 with a few technical assistants from MFTBC coming to MBM production plant to advise in several aspects of the new model production particularly in the assembly line.
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Mercedes-Benz Malaysia Kamal, Farhan During the pilot production, a wrap-up meeting would be conducted daily to highlight the problems of the day and to discuss ways to overcome them. With regard to this, MBM has been proactive by preventing the problems that might occur during the pilot production. This can be achieved in two ways:(a) Preparing a pre-control plan which is based on the Probable Failure Mode and Effect Analysis (PFMEA). Pre-control plan is a comprehensive list of preventive measures that are being taken by MBM from when the parts arrive at the warehouse until one whole unit is bought off prior to delivering it to the Sales & Marketing personnel. Checking Item Specification Product Process Assembling grommet, Part damaged Not allowed cab lock Under tightened Not allowed (Refer to AOS) -existing sealant hole No proper Refer to Paint application of inspection Standard sealant from TM510 - C003 Paint Shop -Appearance/function Weather strip Refer to inspection wise not satisfactory squeezed out manual Gap Standard Table 7: Basic example of what can be included in the pre-control plan (b) Preparing station release checklists at every stage of the production i.e. at the Frame Line, Paint Shop, Body (Cabin) Shop, and the Assembly Line. Essentially, this checklist ensures that 4M (Man, Material, Machine, Method) and 1E (Environment) requirements at every station are met. Example of the station release checklist can be viewed in the Appendices. Final Wrap-Up Meeting During the pilot production, there were a lot of issues during the assembling processes and during the inspection. Nonetheless, all issues were put under control during the final wrap-up meeting between MBM representatives, HAMM representatives, and MFTBC technical assistants. Invaluable feedbacks and suggestions were also received from the MFTBC technical assistants. It is not uncommon for lots of issues to be raised during the pilot production. Most often than not, the underlying issue is the fact that the parts list does not always Page 28 of 48 Process Name

Mercedes-Benz Malaysia Kamal, Farhan tally with the Assembly Operation Sheet (AOS). The issues raised, amongst others, include the following:(a) Left Hand Side (LHS) bracket harness stud was too short (b) 2 horns had been received for each unit but there was only 1 horn drawn in the AOS (c) There was a need for longer torque wrench to easily tighten certain nuts One thing worth mentioning about this new 4 x 4 model is the 4WD function check. There are two switches on the right hand side of this models instrument panel and these switches (2WD/4WD switch & high/low gear switch) are not available on the previous models. After the inspection at the tester line, in order to know whether 4WD works perfectly or not, it has been proposed that the unit should be brought along the test track and 3 running modes of the unit should be tested. For each mode, there are certain conditions that can be felt and these have been properly taught by the MFTBC QM technical assistant. A checking instruction needs to be drafted as a guidance for the workers in charge of the tester line inspection. The MFTBC QM technical assistant carried out several audits on the finished units and raised a few issues. These issues include:(a) Whether the axle oil and gear oil inspection has to be done or not. During the wrap-up meeting, there were a few arguments, but the final decision is to continue inspecting, even though there is a possibility that the oil might get contaminated, considering that there were major cases that happened years ago in which the axle oil was not filled up in a few units and those units failed during the delivery to the dealer. (b) Hoses touching each other or other components. This issue is a common one but inspectors need to consider a few extra components to watch on during the inspection. (c) High/low gear switch cable interchanged with 2WD/4WD switch cable. A checking instruction will be drafted for the inspectors. During the final wrap-up meeting, invaluable suggestions/feedbacks were received from the MFTBC technical assistants with respect to streamlining the CV line:(a) It has been suggested that the CS1 operators check or mark the torque tightening of nut immediately after tightening, so that there will be no nut left unchecked. (b) The continuous improvement process at the CV line is still very much lacking and there is not constant monitoring by the leader. (c) Counter measures have to be proposed after carrying out the product audit sessions.
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Mercedes-Benz Malaysia Kamal, Farhan (d) Proposal for an additional subassembly station for fuel pipe assembly on fuel tank to expedite the production process. (e) Modification of the engine hanger to avoid damage to the engine.
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Mercedes-Benz Malaysia Kamal, Farhan 8. Mini Projects
New Tester Line & Finish Line Project for CV (Commercial Vehicle) Line
Indicators:FQG Final Quality Gate; ISP Inspection; BO Buy-Off; HAMM Hicom Automotive Manufacturer Malaysia; MBM Mercedes-Benz Malaysia; VPC Vehicle Preparation Centre Diagram 12: The current production process flow/layout In order to increase the production rate, the current layout involving both LD and HD has to be altered. Apart from that, MBM intends to have its own tester line and shower test facilities (MBM is currently sharing the facilities with Isuzu) so that the production line would run smoother and more efficiently. The vacant space in the production line will be utilized for this purpose.
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Mercedes-Benz Malaysia Kamal, Farhan In the new layout, there will be a new inspection bay called the Visual Check Quality Gate after the shower test and before the buy-off. This bay is very important in MBMs efforts to substantially reduce the DPUs (Defects Per Unit) detected at the buyoff area. Progress of the New Layout Project After several meetings between the 3 departments in the production plant chaired by the PE (Production Engineering) team, there have been a lot of feedbacks, requirements, and suggestions by all 3 departments. As for the QM (Quality Management) department, 2 main requirements have been conveyed to the project leader: inspecting the product quality by having inspection bays for every production stage including the product audit bay; fulfilling the process quality requirement such as the manpower, materials, machines, methods and the environment. A lot of issues have been raised during the meetings and the main issues are summarized as follow:(a) PE: proper location of the frame spray booth to make the line run smoothly; environmental issues such as the drainage system for the spray booth (b) LOG: making sure that the logistics team has enough space to deliver the parts/items.
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Mercedes-Benz Malaysia Kamal, Farhan Cycle Time Study Introduction Cycle time can be defined as the time required to complete a certain process. The concept of cycle time is actually derived from the concept of Taktzeit, a German word which refers to the cycle time. The Taktzeit concept aims to match the pace of production with the customers demand. (Takt time) Cycle time for each station in the production line should not differ too much from the Taktzeit. Otherwise, there will be bottlenecks that will affect the production rate. There are a lot of factors that determine the amount of cycle time for a given production line. (Applications) Factors that affect the cycle time include the following:(a) Setup Times (b) Schedule Changes (c) Mix/Volume (d) Equipment Failures (e) Repair Times (f) Scrap/Rework (g) Absenteeism (h) Queuing of Work In Process (WIP) (i) Process/Test Times (j) Lot Sizes (k) Sample Sizes (l) Material Shortages (m) Engineering Changes (n) Engineering Lots A cycle time study has been carried out covering all quality gates in the assembly line. Since these quality gates are incorporated in the production line, inspection time that exceeds the Taktzeit will turn the gates to undesired bottlenecks. However, if the inspection time is much less that the Taktzeit, it might lead to the lack of inspection quality which means that several steps in the inspection process are skipped. (Cycle Time Reduction)
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Mercedes-Benz Malaysia Kamal, Farhan The Taktzeit was determined using the equation below:Takt Time (Time/Unit) = Working Time/Target Capacity *Working Time = 85% of the Available Time [Considering 85% efficiency) *Target Capacity = 8 or10 for FUSO Light Duty (LD) & 3 for FUSO Heavy Duty (HD) Equation 1: Takt Time Cycle Time Data Collection The real challenge lies in getting accurate data for this study. An inspection task of a Quality Management executive at a certain quality gate was broken down into several working elements and each of these elements/ activities was timed at least twice and its average was determined. For instance, the task of inspector at the Light Duty (LD) Mechanical Quality Gate was broken down into seven working elements-transfer to the inspection area; checking the tightening of bolts and nuts; checking the general cabin appearance; checking the functions; filling out details in the traveler; transfer to rework and reconfirming. The time for each of these elements was timed three times and its average was determined and recorded in the standard cycle time table (see in Appendices). Due to the fact that working elements are usually not sequential which means that an inspector might carry out two or three elements in the same time period, it was not feasible to time the elements one by one. The solution to this problem was to assign a fraction to each working element with the element that took the longest time being assigned a fraction with the highest value. As the working elements were closely observed, the estimation of the fraction is deemed reasonable enough. The whole task of inspector at a certain quality gate was timed for at least twice and the time for each working element was determined by multiplying it with each fraction assigned to each element. Then, the average time for each element was determined before they were all totaled up to obtain the cycle time for that particular quality gate.
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Mercedes-Benz Malaysia Kamal, Farhan Cycle Time Summary
Parameters Available Time (mins) 490 430 490 Working Time (mins) 417 366 417 Target Capacity (Unit) 10 8 3 Takt Time (Time/Unit) 42 46 139 Table 8: Parameters necessary for the cycle time study
FUSO LDMon until Thu
FUSO LDFri
FUSO HDMon until Thu
FUSO HD-Fri 430 366 3 122
Station Cycle Time (mins) Capacity (units) LD Buy-Off 1-HAMM 29.1 14.3 LD Buy-Off 2-MBM 39.3 10.6 LD Mech QG/ FQG 39.3 10.6 LD Trim QG 39.3 10.6 HD Buy-Off 1-MBM & HAMM 87.4 4.8 HD Chassis QG 46.5 9.0 HD Trim QG 32.2 13 Table 9: Summary of cycle times and capacities Conclusions that can be drawn from the tables above are:i. 2 inspectors are placed at LD Buy-Off 1-HAMM, thus its cycle time is relatively short. ii. At LD Buy-Off 2-MBM, since Mohd (production person) is doing 2 tasks i.e. preparing unit before buy-off and rework, Azuki (QM person) has to wait long before he can buy-off a new unit if there are a lot of reworks to be done on a specific unit considering that Azuki depends on Mohd alone to prepare the unit. iii. As for the HD road test which is one of the working elements in HD Buy-Off, if there is any suspected major defect such as problematic wheel alignment, the inspectors will have to do further tests, hence the longer-than-usual cycle time. iv. The cycle time for LD Trim QG is found to be longer than HD Trim QG which might mean that the LD Trim QG inspector is still not competent enough.
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Mercedes-Benz Malaysia Kamal, Farhan Cycle Time Simulation/Visualization Before the new layout is finalized, it has been proposed that a simulation or a visualization of the overall production process flow is carried out to ensure that there would not be any problem or issue that might affect the production line. Examples of this are probable space insufficiency for a certain operation as well as improper flow sequence. The simulation will be designed using the Flash MX software and the production line will flow based on the ideal time or the pre-determined taktzeit. HD Assembly Line (Taktzeit of 104mins)
HD Mechanical FQG
New Tester Line and Finish Line for both LD and HD (Taktzeit of 26mins)
Last Station: Buy-Off Bay
LD Mechanical FQG
LD Assembly Line (Taktzeit of 35mins)
Diagram 13: General Layout of the Production Line
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Mercedes-Benz Malaysia Kamal, Farhan Product Audit (PA) Guidelines Introduction The Control System 3 Product Audit (PA) evaluates the quality of partial product at the end each production stage namely in body shop, paint shop, and assembly line by random check according to a pre-determined PA Audit Plan. These PA activities evaluate and monitor the effectiveness of production control system 1 to 2 as part of internal quality assurance measures. It has been proposed by the upper management in MBM that a comprehensive guideline of PA auditing procedures covering the most important aspects in the audit scope, specification of criteria, directives, coordination processes, examples of application and person to contact is to be drafted as it would be useful in case the company needs to train a new product auditor. Overall Process Flow Essentially, the PA guideline would be a comprehensive overall process flow of the product auditing. Photos as well as necessary details related to every stage of the process flow are to be included in the guideline. The overall process flow is illustrated in the flow chart below:-
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Diagram 14: Overall Process Flow (starting with Vehicle Check or planning based on the PA schedule)
To generally describe the PA overall process flow, it starts with choosing the units to be audited randomly based on the PA schedule. The number of units to be audited depends on the number of units produced, the quality condition of a certain production lot. Then, the auditor would make necessary preparations like filling up the details of the unit to be audited in the PA form. Details include the engine number, chassis number, model, colour etc. Afterwards, the auditor would carry out a few types of checks or inspections on the unit namely the function check (air-conditioner check, signal check etc); the liquid check (the engine oil check, the coolant level check etc); leakages check (the piping system, the fuel filter piping joints etc); visual check (the fitting condition, the paint surface etc); vehicle data check (making sure that the engine and chassis numbers tally with the ones in the documents); the screw check (checking the tightening of the important joints).
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Mercedes-Benz Malaysia Kamal, Farhan With the static check completed, the auditor would proceed with the dynamic check which is the road test. Amongst the elements tested during the road test include the wheel alignment, the engine vibration and noise as well as the suspension system performance. After the road test, if the unit becomes dirty, it will be cleaned up prior to sending the unit to the rain check bay. Last but not least, the auditor would classify the defects spotted during the inspection before commencing a root cause analysis and writing up the PA report to be presented to the upper management. Sequential Check Sheet A check sheet that comprises the details of what to be inspected during a PA session would be really useful in guiding a new product auditor. It would also be useful in ensuring that the product auditor would not miss any item that has to be checked. The check sheet is being drafted based on the PA manual with different check sheet for different manufacturer i.e. one for all Fuso models and one for Mercedes-Benz truck models. One thing that has been proposed by the current product auditor is that the check sheet has to be sequential so that it would take less time for an auditor to finish a PA session apart from being more convenient for the auditor. Basically, a PA session would start with the inspection of the front compartment of the cabin and then the auditor would move to the left hand (passenger) door for both exterior and interior inspections. Afterwards, the auditor would inspect the tilting mechanism of the cabin before proceeding to inspect the chassis condition and other related items namely the pipes, cable harnesses etc. With the left hand side inspection completed, the auditor would move around and begin inspecting the right hand side of the vehicle.
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1 2 3 7
Diagram 15: Illustration of the PA static check flow
The descriptions as well as the pictures for each process within the overall process flow have been finalized. The sequential check sheets for both MBCV (Mercedes-Benz Commercial Vehicle) and Fuso units have been drafted and these sheets are currently being used in trial product audit sessions so that any necessary modification to the sheets could be made after getting feedbacks from the auditor himself. Although the check sheets have been drafted intensively based on the PA (Product Audit) manual, the check sheets should not miss out on any important part or component that has to be checked, hence the trial product audit sessions using the drafted check sheets.
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Mercedes-Benz Malaysia Kamal, Farhan Root Cause Analysis For the time being, after the defects have been identified, the auditor does not carry out a proper root cause analysis which means that the root causes are only assumed after some investigations have been conducted on the production buy-off (the final stage of production) team. There is no documentation for the investigations, only verbal investigations. In order to comply with ISO 9001: 2008 which stresses on the processes, it is imperative that a proper documentation for the root cause analysis is made available. Thus, a form has been drafted based on the 4M (Man, Material, Method, and Machine). A sample form is included in the appendices. The auditor has the responsibility to identify the root causes based on the 4M. A week-long observation might be necessary to spot any non-conforming process or activity.
Quality Management System (QMS) Weekly Report Since there was a need for a summary report on the QMS activities, it was decided that a weekly summary report on Preventive Info (PI), Mercedes-Benz Commercial Vehicle Product Audit (MBCV PA), and Corrective Action Request (CAR) sent to both Daimler AG (DAG) as well as the local suppliers should be presented during one of the top management meetings. PI is information sent by DAG to the production plant if they expect that a part or some parts are going to arrive in the plant with defects. They would advise the plant to do necessary corrective actions such as claiming the parts or accepting the parts. On the other hand, CAR is a form that will be sent to either DAG or the local suppliers depending on the parts affected with the objective of requesting necessary corrective actions. Usually, DAG or the relevant supplier would provide the production plant the reasons for the corrective and/or preventive actions suggested. As for MBCV PA, DAG requires the product auditor to present a weekly summary of the defects detected during the audit sessions on Mercedes-Benz Actros. The number of defects is presented on a chart based on the defect classification approved by DAG. Before compiling all of the data related to PI, CAR, and MBCV PA, these data have to be confirmed with the originators of the data and this, at the moment, requires some time to be done. Therefore, a suggestion has been made that the originators of the Page 41 of 48

Mercedes-Benz Malaysia Kamal, Farhan data have to quickly update and confirm the data by the end of every week. A few procedures such as putting the data in the same folder as the summary report have also been clarified to the originators to ease this process. (See appendices for sample presentation slides)
CAR Data Management System (DMS) Every time a part or component is found to be faulty or not in the best condition, a CAR (Corrective Action Request) will be issued and sent to the supplier of that part or component and CARs are sent to both the suppliers or Daimler AG itself in Germany and the local suppliers. The suppliers to whom CARs have been sent are responsible to give a reply as soon as practically possible so that the production line will not be affected. Every week, analysis on the CARs has to be updated and presented to the top management. Nevertheless, most often than not, the issuers of the CARs who are responsible in updating the summary tables as well as the charts are too slow to do so. Due to this problem, a system that automatically updates and generates the summary tables as well as the charts has to be introduced. Demos of a newly-proposed data management system were presented to the senior management of MBM and the system was based on database software. The benefits of using database as a platform, amongst others, are the fact that data in the database can be easily managed and manipulated for analysis and the fact that the summary table can be generated easily. Nonetheless, since the CAR form at present is in Excel format, the CAR issuers have to key in a few main details in the database after filling up the CAR form. This would not work since there is a high possibility that the CAR issuers would forget to update the details in the database, thus rendering the database useless in generating the analysis for presentation. Furthermore, installing licensed database software in the companys workstations might be costly to the company. One practical solution to this problem is to automatically extract a few main details from the CAR form using Visual Basic for Excel programming and putting in all the details in a separate Excel file (summary table file). The summary tables are to be divided into 3 categories: PQ (Parts Quality); LQ (Logistics Quality); and LC (Local Content). Then, the corresponding charts are to be generated automatically in the same Excel file. A web interface has been proposed as a convenient interface to link up all the necessary files and has to be used by the CAR issuers in filling up the forms. Every week, analysis on the Corrective Action Requests (CARs) has to be updated and presented to the top management. Nevertheless, most often than not, the Page 42 of 48

Mercedes-Benz Malaysia Kamal, Farhan issuers of the CARs who are responsible in updating the summary tables as well as the charts are too slow to do so. Due to this problem, a system that automatically updates and generates the summary tables as well as the charts has to be introduced. Since the main purpose of the system that has to be built is to automatically update the main details of the CARs such as the date issued, the model involved, part name etc, thus tackling the problem of having to wait for someone to update before finalizing the weekly report, a simple macro in the Excel file that contains the charts and the figures over the months has been built. The macro basically looks like below.
Diagram 16: Screenshot of the CAR DMS macro Essentially, this built-in macro that will be prompted after opening the Excel file has four command buttons. The first button, when clicked, would prompt a blank CAR form to be opened. This is meant for any staff who would like to issue a new CAR. The second button, which is the most important one, when clicked, would automatically extract the main details from the Excel CAR forms located within a predetermined folder. Both the CAR issuers and the weekly report compiler could utilize this function to view the updated list of CARs without the need to open the Excel CAR forms. If it becomes necessary to view more details of a CAR, any authorized staff can click on either the third or fourth button depending on the type of CAR (either CAR sent to DAG, Page 43 of 48

Mercedes-Benz Malaysia Kamal, Farhan Germany or CAR sent to local suppliers) to directly open a specific folder wherein the Excel CAR forms are saved. This CAR Data Management System is still in the trial stage after which this system can be fully utilized within MBM. The formatting of the summary table has to be further modified and refined while the user interface has to be sleek as well as easy-to use. It is estimated that the trial stage would run over a months time in order to consider all suggestions for improvements and to implement those improvements.
Control of Documents As one of the compulsory standards of ISO 9001: 2008, control of documents by internal audit on documents is vital in demonstrating the effective operation and control of the companys processes. The hierarchy of documents is illustrated as follows:-
Diagram 17: Hierarchy of Documents
A plan has to be drafted for IQA (Internal Quality Audit) which would take place in July 2011. The schedule for IQA can be found in the appendices. Essentially, IQA will be carried out on all 3 departments of the MBM production plant namely the QM (Quality Management), the PE (Production Engineering), and the LOG (Logistics). In each department, staffs have to carry out any task in accordance with the proper procedures that have been predetermined by the department leader. Page 44 of 48

As for the IQA procedure itself, the current procedures and forms are identified and subsequently several auditing sessions will be conducted between the auditors and the auditees or representatives of each department. Representatives are the document controllers of particular procedures. The main objective of this IQA is to ensure that each department in the production plant is operating under a documented management system which means that all operations have documents and records associated with them.
9. Final Conclusions In the companys efforts to increase the production rate, to reduce the costs, as well as to improve the quality standards of the units produced at the Commercial Vehicle (CV), a Kaizen-based transparent monitoring system (TMS) is extremely crucial. Strong leadership, commitment from the top management, and teamwork are main requirements for the monitoring system to achieve its targets. Problems, which are defined as those that stop the line and/or affect the quality of the finished product, detected at all stages of production must be recorded by the line supervisor and the monitoring team is responsible in suggesting preventive measures for these problems. The team is also responsible in monitoring the concerned parties in ensuring that the preventive measures are implemented up to the required standard. The feedbacks obtained from the MFTBC technical assistants are in parallel with the objectives of the monitoring system. Lax implementation in CS1 procedures, discontinuous improvement process, and the lack of action plan by the product auditor are the things that need to be tackled by the top management.
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Mercedes-Benz Malaysia Kamal, Farhan 10. Professional & Personal Development I have been positioned as an intern in the Quality Management department under the Assistant Manager, Mrs Fatimah Abdul Razak. My major task initially was to be actively involved in a new project for a new model- Mitsubishi Fuso PG83PE 4 x 4. However, due to the fact that the project was postponed to a later date in July, I made an initiative to carry out my own project-Streamlining CV line. During the first month of placement, I learned a lot about the organizational structure of MBM. My understanding of how an organization is actually run has increased by leaps and bounds. As for the new project, I think that inter-departmental communication is extremely important for the project to run smoothly with any problem encountered being overcome as soon as possible. My curiosity as to whether the organization is doing the right thing prompted me to carry out the SPC analysis. It basically involves data collection which means that I have to go down to the production line and gather as much information as possible from the production team; it also involves analyzing and discussing the data in accordance with the standard SPC analysis. Making sure that the data/information is reliable enough as well as coming up with practical solutions had been a real challenge for me. I took a few weeks to plan for the CS1 Awareness Training. Amongst the things that I had to do were preparing the training materials, choosing suitable dates for the training (by making sure that the training would not affect the production line due to insufficient manpower), presenting the justifications for this training to the top management, and discussing with the trainers about the training program itself. Good planning ensures the success of a program; this was proven true when the program was being conducted. As for the cycle time study, it has been a real challenge for me to make sure that the time taken for a particular station is reliable enough. Taking an average of three time sets as well as observing each working element or activity at the station would give one a good indicator of the cycle time at that station. Meanwhile, drafting a professional guideline for Product Audit (PA) is also a new thing for me. I have to consider all aspects of PA such as the process flow, the defect classification, the specifications of a proper PA bay etc. It has encouraged me to be more organized than ever if I intend to finish drafting it within a reasonably short timeframe. I learned a lot on project planning during my involvement in the new tester line and finish line project for the CV (Commercial Vehicle) line. All suggestions from all 3 departments of the production plant had to be taken into consideration. However, only suggestions that would contribute to the main objectives of the project should be seriously considered in order to expedite the project planning. The main objective of this Page 46 of 48

Mercedes-Benz Malaysia Kamal, Farhan project is to produce 12 LD (Light Duty) units and 4 HD (Heavy Duty) units in a smooth and efficient manner. (Note: currently the CV production line is operating at 10 LD units and 2 HD units) About 2 weeks ago, I started up a trial run for my proposed transparent monitoring system which is based on the continuous improvement (Kaizen) principle. This monitoring system essentially highlights 3 important elements i.e. the problems, the root causes, and the preventive measures. So far, what I have learnt is that to be able to suggest preventive measures, the monitoring team, by hook or by crook, has to identify the real root causes of the problem. On-the-surface causes like hoist breakdown due to cable problem would not suffice. The underlying causes have to be identified and this entails hard work and time. Besides the projects above, I have been working on CAR Data Management System (DMS) which is quite challenging since I have to make sure that the solution is going to be practical and user-friendly at the same time, not to mention a solution that works perfectly. Lastly, the postponed pilot production for the new model, FG83PE 4 x 4 ran smoothly for a week. All the feedbacks and suggestions from the MFTBC technical assistants have been taken into consideration in order to improve the production processes. By carrying out all these tasks during my placement in MBM, my analytical skills in doing practical tasks, managerial skills in delegating the tasks as well as communication skills have improved by leaps and bounds. I have learned that in order to succeed in any project, one has to plan carefully and gather all the necessary information before launching off the project. Otherwise, one might need to redo the project over and over again and this is time-consuming and not favorable to the company.
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Mercedes-Benz Malaysia Kamal, Farhan 11. References [1]. George, M. L., Rowlands, D., Price, M., & Maxey, J. (2005). The Lean Six Sigma Pocket Toolbook. New York: McGraw-Hill. [2]. Oakland, J. S. (1997). Total Quality Management. Oxford: Butterworth-Heinemann. [3]. Maxwell, J. C. (2002). Teamwork makes the Dream Work. Maxwell Motivation, Inc. [4]. Mercedes-Benz Malaysia (MBM). (n.d.). About Us. Retrieved March 17, 2011, from Mercedes-Benz Malaysia Sdn Bhd: http://www.mercedesbenz-malaysia.com/ [5]. Mercedes-Benz Malaysia (MBM) Intranet [6]. Applications. (n.d.). Retrieved 05 10, 2011, from ManSim: http://www.mansim.com/applications.html [7]. Cycle Time Reduction. (n.d.). Retrieved 05 10, 2011, from Montana Manufacturing Centre: http://www.mtmanufacturingcenter.com/services/Lean/cycle_time_reduction.htm [8]. Takt time. (n.d.). Retrieved 05 10, 2011, from Wikipedia: http://en.wikipedia.org/wiki/Takt_time [9]. ISO. (2008, October). Introduction and support package: Guidance on the documentation requirements of ISO 9001:2008. Retrieved June 17, 2011, from International Organization for Standardization: http://www.iso.org/iso/iso_catalogue/management_standards/quality_management/iso_9 001_2008/guidance_on_the_documentation_requirements_of_iso_9001_2008.htm
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Appendices
Section Body Paint Buy Off Body + Paint Difference JAN 10 1.43 10.6 9 12.03 3.03 JAN'11 Section Body Paint Buy Off Body + Paint Difference 1.39 9.78 4.03 11.17 7.14 FEB 10 1.34 10.6 9.12 11.94 2.82 FEB'11 1.16 9.68 4.23 10.84 6.61 AVE 2.21 7.87 7.08 10.07 2.99 MARCH 10 6.47 8.78 9.64 15.25 5.61 APR 10 2.1 7.61 8.52 9.71 1.19 MAY 10 1.69 6.27 7.04 7.96 0.92 JUNE 10 3.29 5.38 6.33 8.67 2.34 JULY'10 AUG'10 2.57 5.41 7.16 7.98 0.82 1.35 5.86 7.38 7.21 -0.17 SEPT'10 0.77 5.67 5.19 6.44 1.25 OCT'10 NOV'10 DEC'10 1.59 8.62 5.85 10.21 4.36 2.22 9.16 5.48 11.38 5.9 1.66 10.45 4.3 12.11 7.81
Table 1: DPU figures from Jan 2010 until Feb 2011
Assumptions of Causes Good Paint awareness is rising again? Check the paint check specifications [Policies] CS1 and CS2 are improving? Hence, the slump of DPU in Buy-Off Bad
Possible Causes-after site visit Imprecise Oven Temperature Setting (Old Oven?)[Facilities & Equipment}
Paint
Problems in paint shop process or polishing [Procedures]; Incomplete training of staff at the paint shop [Workforce]
Buy-Off
The buy-off inspector is slacking
Body
Improvement in the body machining and processing?
Inspectors are trying to hide the defects
FQG & Mechanical Not applicable
Problems in installing the alarm system/part-Human errors [Workforce]; Original problem from Japan/supplier or during the shipment [External]; Work Instructions are not followed closely [Procedures]; The system/part becomes faulty during the storage and moving process [Facilities & ProceduresLogistics]
The remote control is not compatible with the control unit due to mix-up during the installation process; The alarm system does not work due to the accidental clipping of the cable [Procedures]
Table 2: Cause-and-Effect Thought Process
Diagram 1: FG83 4 x 4 project schedule sourced from Production Engineering (PE) department of MBM
Diagram 2: Print screen of the cycle time data collection sheet for first buy-off station
No. of Participant vs Mark Category

14 12 10 8 6 4 2 0 60-70 71-80 81-90 91-100 Mark Category
No. of Participant
Diagram 3: Participants classified according to their mark categories
No of Correct/Wrong Answers vs Question No.

25 No of Answers 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Question No No. of Correct Answers
Question No Material Segment No. of Correct Answers No. of Wrong Answers 11 QM-RT 21 2 H-MB 22 1 12 QM-DC 20 3 13 QM-PA 11 12 1 H-MB 23 0 14 QM-FC 23 0 2 H-OC 19 4 15 QM-SC 22 1 PEAOS 20 3 3 H-V 23 0 16
No. of Wrong Answers

4 5 QM-CS 20 3 17 PE-TBR 15 8 PEAOS 20 3 QMTQM 12 11 18 PEWSC 23 0 6 7 QM-BO 6 17 19 8 QM-CF 23 0 20 PE-WI 20 3 QMCS3 14 9 9 10 QM-BN 12 11
Diagram 4: Analysis of the participants understanding by questions
Abbr. H-MB H-MB H-OC H-V QM-CS QMTQM QM-BO QM-CF QMCS3 QM-BN QM-RT QM-DC QM-PA QM-FC QM-SC PEAOS PE-TBR PEAOS PEWSC PE-WI
Meaning History-Mercedes-Benz History-Mercedes-Benz History-Organization Chart History-Video Quality Management-Control System Quality Management-Total Quality Management Quality Management-Buy-Off Quality Management-Chassis Frame Quality Management-Control System 3 Quality Management-Body Number Quality Management-Rework Time Quality Management-Defect Classification Quality Management-Product Audit Quality Management-First Hand Check Quality Management-Second Hand Check Production Engineering-Assembly Operation Sheet Production Engineering-Tiket Barang Rosak Production Engineering-Assembly Operation Sheet Production Engineering-Worker Self-Control Production Engineering-Working Instructions
Table 3: Meanings of the Abbreviations
Diagram 5: The IQA Schedule
Average LD DPU/Month in 2010 acc. To QM Inspection Bay

10 8 6 4 2 0 Paint Buy-Off Body Trim FQG & Mech U/Body 120.00 100.00 80.00 60.00 40.00 20.00 0.00
Average DPU/Month
Cumulative DPU %
Average LD DPU/month in 2011 YTD acc. To QM Inspection Bay

12 10 8 6 4 2 0 Paint Buy-Off Average DPU/Month Body Trim FQG & Mech U/Body 120.00 100.00 80.00 60.00 40.00 20.00 0.00
Cumulative DPU %
Diagram 6: Pareto Analysis for LD (Light Duty) units for 2010 and for 2011 YTD (Year to Date)
Average HD DPU/Month in 2010 acc. To QM Inspection Bay

7 6 5 4 3 2 1 0 Paint Body Buy-Off FQG & Mech Trim U/Body
120.00 100.00 80.00 60.00 40.00 20.00 0.00
Average DPU/Month
Cumulative DPU %
Average HD DPU/month in 2011 YTD acc. To QM Inspection Bay

12.00 10.00 8.00 6.00 4.00 2.00 0.00 Paint Buy-Off Average DPU/Month Body FQG & Mech Trim U/Body 120.00 100.00 80.00 60.00 40.00 20.00 0.00
Cumulative DPU %
Diagram 7: Pareto Analysis for HD (Heavy Duty) units for 2010 and for 2011 YTD (Year to Date)
Diagram 8: C & E (Cause & Effect) Diagram for the Production/PE department
Diagram 9: Asian Lotus Blossom as a way of presenting the suggested preventive measures
Diagram 10: Sample of Root Cause Analysis Form
Diagram 11: Sample of Daily Problem Report for CV Assembly Line
Diagram 12: A part of the station release checklist depicting 2 elements of the 4M
FG83PE PILOT 25/7/11 - 29/7/2011 DAIMLER CHRYSLER MALAYSIA Name: Mahendran No. 1 Location: CHASSIS ASSEMBLY CIP Quality Management Agenda: Follow up issue Accountable Deadline Progress Name Area/Scope MFTBC Chassis Assy. Chassis Assy. Tyre sub assy. Chassis Assy. 1/9/11
Problem/Require Measurement Horn quantity not according to AOS (X2) - AOS pg 185 (x1) Pre -Control Plan
Remark s MFTBC to advice included front axle & front propeler shaft To hold separate meeting to decide.
QM
2/8/11
Tyre valve washer not fitted
QM & PE
1/9/11
FMEA
PE
New Issue (0%)
Planned (25%)
Do (50%)
Check (75%)
Action (100%)
Diagram 13: Sample of the Continuous Improvement Process (CIP) problems found during the pilot production
Diagram 14: Preventive Info (PI) Weekly Summary presentation slide
Diagram 15: Corrective Action Request (CAR) Weekly Summary presentation slide
Diagram 16: Mercedes-Benz Commercial Vehicle Product Audit (MBCV PA) Weekly Summary presentation slide

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2011 Industrial Placement Final Report

Industrial Placement 2011 Final Report

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Table 1: MBM workforce by position (Source: MBM Intranet)

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Diagram 1: MBM Organization Chart Overview (Source: MBM Intranet)

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DPU acc. to Categories

Body Paint Buy-Off Body + Paint

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Table 2: Average DPU/month for TD Canter (LD FUSO) in 2010

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Target DPU/Month (<)

Diagram 5: Pareto chart of DPU/month in 2010 according to defect categories

Table 3: Rework time (mins) for TD Canter (LD FUSO) in 2010

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Longest PossibleDe fe ct Cate gories Rework Time (mins)*

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Diagram 7: Fishbone 1-Paint DPU

Diagram 8: Fishbone 2-Mechanical DPU

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Suggested Preventive Measures

Table 4: Root causes & their preventive measures

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Diagram 9: General Overview of the Transparent Monitoring System

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Jun '11 until Aug '11

Pilot production; Technical Assistance for frame and chassis

Mass production; Sales

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Industrial Placement 2011 Final Report

Industrial Placement 2011 Final Report

Industrial Placement 2011 Final Report

Industrial Placement 2011 Final Report

Industrial Placement 2011 Final Report

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FUSO LDMon until Thu

FUSO HDMon until Thu

FUSO HD-Fri 430 366 3 122

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LD Assembly Line (Taktzeit of 35mins)

Diagram 13: General Layout of the Production Line

Industrial Placement 2011 Final Report

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