PGM Opening 2

Perodua’s new factory, Perodua Global Manufacturing Sdn Bhd (PGM), was officially opened today. The ceremony was officiated by minister of domestic trade co-operatives and consumerism Datuk Seri Hamzah Zainuddin, representing deputy PM Datuk Seri Dr Ahmad Zahid Hamidi.

Also present was the Japanese ambassador to Malaysia, Dr Makio Miyagawa; Daihatsu Motor Co chairman, Koichi Ina; Perodua chairman Tan Sri Asmat Kamaludin; Perodua president and CEO Datuk Aminar Rashid Salleh and PGM MD Datuk Ahmad Suhaimi Hashim.

PGM, which is adjacent to the original Perodua factory in the carmaker’s Sg Choh base, spans 64,000 square metres and required a RM1.3 billion investment to build and equip. Announced in December 2012, construction started in March 2013 and the plant started rolling out the Axia model since August 2014. As of December 2015, PGM has produced 138,000 units of the popular Axia. The plant’s capacity is 100,000 units on a single shift, which can be doubled.

PGM makes the Axia, and its next project could be P2’s first sedan; Myvi and Alza are from the older plant

The Myvi and Alza are made in the older plant in Rawang. Perodua also has new plants to supply it with engines and transmissions. Both are located in Sendayan TechValley near Seremban.

“PGM is one of Perodua’s main transformation initiatives to become a globally competitive brand in terms of quality, cost management and delivery,” Asmat said, explaining the “global” part of the company name.

“The design, technology and concept of this facility are based on the ‘Simple, Slim and Compact’ philosophy. ‘Simple’ here refers to the work process which is easy to understand and implement, while ‘Slim’ refers to efficiency and dedication towards the elimination of wastages – in all forms – and ‘Compact’ refers to the maximisation of space for optimum production,” he elaborated.

The new plant features, among other things, increased automated welding (full automation for under and main body), automatic body accuracy measurement, the latest 3-Wet Waterborne Paint, enhanced dustproofing for the paint shop and a brighter/quieter working environment.

PGM Opening 1

The original P2 plant’s quality, defects per unit (DPU) and efficiency used to be lower than that of Daihatsu plants in Japan and Indonesia, and PGM’s goal is to be better than Indonesia and closer to the levels of Daihatsu Motor Kyushu Co Ltd (DKC), Daihatsu’s leading plant in Japan.

High automation and a “jigless” system aside, PGM also brings a new corporate culture to the Malaysian market leader, an example for the rest of the company to follow. Over 260 staff have been sent to DKC to not only learn about manufacturing, but to acquire the “spirit” behind the efficient Japanese factory.

Yours truly visited DKC’s Nakatsu Plant 2 in 2013, and you can read our feature story to learn more about the factory that PGM mirrors.

What’s PGM’s progress in its goal to reach global standards of quality and efficiency? The plant is less than two years old, and standards are already competitive with Daihatsu in Indonesia, but there’s still some way to go in matching DKC, according to Asmat. Ganbatte!