Discipline and Japanese ‘5S’ key to Perodua’s success

PGM Opening 1

While Proton is synonymous with ‘national carmaker’, it is ‘second child’ Perodua that is leading the Malaysian car market, a position that P2 has held for 10 years now. With a pretty comfortable margin and no signs of complacency, too – the latter proven by year-after-year of increased targets and record sales.

What is Perodua’s competitive edge? Besides the fact that it knows what the majority of Malaysian carbuyers want, it is the efficiency brought in by P2’s partner Daihatsu. Efficiency is brought about by discipline, and it is discipline that has enabled the company to progress successfully in the industry, said Perodua Auto Corporation (PCSB) president Yasumitsu Morita.

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PCSB manages the manufacturing operations at Perodua’s still expanding base in Sg Choh, north of Rawang. There are two plants there – an older factory that produces the Myvi and Alza, and the Perodua Global Manufacturing plant that rolls out the Axia. Mirroring the tech and processes of Daihatsu Kyushu (Daihatsu’s leading plant in Japan, read our feature story), the RM1.3 billion PGM has been in operation since August 2014. It was officially launched last month.

Morita san said that Perodua plants practice Dojo, which means “home of practicing”, to maintain quality and service standards. The veteran boss explained that the company implemented a 5S workplace organisation method comprising five Japanese words – seiri (sort), seiton (set in order), seiso (shine), seiketsu (standardise) and shitsuke (sustain), to create a pleasant workplace for all.

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The heads lead by example. “Me and Zainal will be waiting as early as 7.30am to greet our workers at the main entrance,” he said, referring to Perodua Auto Corporation deputy president Zainal Abidin Ahmad, who was also present at the leadership lecture organised by the Malaysia-Japan International Institute of Technology (MJIIT) at Universiti Teknologi Malaysia KL.

Such practice is part of Perodua’s initiatives in maintaining discipline, and it has turned out to be successful, Bernama quoted Morita as saying. He also advised the students to be open minded, ready to accept changes and to believe in their own ability to achieve success.

Last year, Perodua recorded its highest ever annual sales with 213,300 units, which translates to around 32% market share. The company’s target for 2016 is 216,000, which if achieved, will be another all-time high.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Gargantia on Feb 26, 2016 at 1:23 pm

    Good step to learn from Japanese because their really understand the word 5S that how it really start to learn… Not like the never admit wrong “ministry” wonder why their fall??!!!

    Like or Dislike: Thumb up 32 Thumb down 2
    • azrai on Feb 26, 2016 at 2:28 pm

      In Malaysia we only practice 1S, and practice does make perfect. SAPU.

      Like or Dislike: Thumb up 35 Thumb down 0
    • Songlap Songlap Malaysia on Feb 26, 2016 at 3:40 pm

      We also practise 5S

      Sapu
      Silat
      Snooze
      Sambal Nasi Lemak
      Syukur

      Like or Dislike: Thumb up 19 Thumb down 4
  • Songlap Songlap Malaysia on Feb 26, 2016 at 1:27 pm

    Hello Asmat and Aminar. The rakyat want some basic safety. They want the most basic safety put into Perodua cars. VSC and ABS also tak ada, but you got time to build fancy factory.

    Remember Asmat and Aminar, Perodua, like Proton has been given a free ride in Malaysia. Not just Proton but also Perodua also have been given maximum protection from MITI. MITI has virtually forced all other car brands to price 30% above your prices to protect both Proton and Perodua.

    So, Perodua, the past 20 years have been given a free passport in Malaysia. But in return, they cannot even give us buyers ABS or VSC in their cars.

    This what happens when crony UMW has a big share in Perodua. Just like Toyota, they take out the basic and essential safety features at the expense of our lives.

    And who owns UMW? Majority owned by our beloved Kerajaan, PNB, Khazanah and EPF.
    Enough of wasting RM1.3 billion. Just use that money to give basic safety features in your existing current cars.

    Like or Dislike: Thumb up 47 Thumb down 6
    • Chris Ng on Feb 26, 2016 at 2:55 pm

      I must admit that Perodua performed better than Proton. The answer lies in Perodua strategies and management. Compare AIA with AXA. The former produce RM1 billion in new business but axa can only manage RM60 million. AXA dictator uses fear management, humiliates and terminates its agency.

      Like or Dislike: Thumb up 12 Thumb down 0
    • Same L0rrrr on Feb 26, 2016 at 2:58 pm

      Accident or not, it is very much depend on your driving habit.

      Not every Perodua will have accident, but every Proton sure break down at road side one day. Don’t play play with Proton quality.

      Like or Dislike: Thumb up 13 Thumb down 6
    • Albert on Feb 26, 2016 at 3:55 pm

      Datuk Songlap,
      High time Perodua be renamed PERTAMA.
      Protong be renamed PUIHRODA.(SPIT)
      Protong,better let bygones be bygones,Just close shop.
      let Perodua fight it out with the other Japanese marques.

      Like or Dislike: Thumb up 6 Thumb down 3
    • superman on Feb 26, 2016 at 4:25 pm

      I guarantee you guys are Proton staff.. pls stop acting like this and see the reality. its the image that hurts proton.

      Like or Dislike: Thumb up 4 Thumb down 2
  • policeman on Feb 26, 2016 at 1:30 pm

    ‘5S’ for the workplace. Too bad their cars lack two ‘S’ – Safety & Stability.

    Tarak. Tapi ada Stupid, Shitty, Soulless, Slow, Sucky

    Like or Dislike: Thumb up 30 Thumb down 11
  • Psyduck on Feb 26, 2016 at 1:53 pm

    Correction! All of will unanimously consent that in the P2 world, the definition of 5S is strictly $,$,$,$ & $!

    Like or Dislike: Thumb up 6 Thumb down 2
  • if not because of the high tax on foreign car, u still rakyat want to buy your perodua?

    Like or Dislike: Thumb up 10 Thumb down 2
    • Oh mak lu cina on Feb 26, 2016 at 5:36 pm

      Yes, Perodua will still be cheaper (cheapest) compared to rest of the cars… A new duty free imported car is not going to cost anywhere near RM24,500!!

      Like or Dislike: Thumb up 2 Thumb down 1
  • 5s my foot! on Feb 26, 2016 at 2:00 pm

    Jap follow 5s in the production line, but this nasi lemak just follow 5$$$$$. Thats why so expensive for low quality cars like perodua

    Like or Dislike: Thumb up 10 Thumb down 4
  • If Japanese culture being practised in Perodua, then tell me of all Perodua models, did any of it have 6 air-bags, Traction Control and Electronic Stability Control as standard?

    Like or Dislike: Thumb up 23 Thumb down 6
  • KNS… rubbish design 5 S ar?

    Like or Dislike: Thumb up 2 Thumb down 5
  • brian on Feb 26, 2016 at 2:31 pm

    Proton too must let foreigner carmaker to control and manage its manufacturing instead of just hire foreigner to a key leader.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Tong Kosong on Feb 26, 2016 at 2:37 pm

    When Proton started to fail?

    After Japanese Mitsubishi exiting Proton..

    Gedebe east coast took control

    And quality drop, morale down, sales gone..

    Like or Dislike: Thumb up 8 Thumb down 1
  • Saitam on Feb 26, 2016 at 2:54 pm

    Aiyoh… Jaguh Kampung talk so loud… pui..
    what 5s, 10s… my ass lah..

    Like or Dislike: Thumb up 4 Thumb down 3
  • Cusack on Feb 26, 2016 at 2:56 pm

    Perodua success is because “WE” malaysian have no choice & force to buy perodua models. Low income group buy because of the cheap price(compare to other foreign models) and not because of quality. Just look around, those which can affort will go for cheaper basix specs foreign car like almera,jazz,city,vios.

    Like or Dislike: Thumb up 10 Thumb down 1
  • Chris Ng on Feb 26, 2016 at 2:58 pm

    Perodua better than Proton

    Like or Dislike: Thumb up 10 Thumb down 5
  • nabill (Member) on Feb 26, 2016 at 3:12 pm

    They made a hoo haa about not hiring foreign workers, n now they make a fuss about implementing japanese 5s….. Epic facepalm!
    Tell u wat p2, ur success is mostly down to ill informed msian consumers about ur products, and this illusion of somehow its a japanese car/brand only works on msians who are not very demanding, n mostly just believe wat u tell them…
    Thats why, for ur customers, a rattly interior in a 4mnths old myvi is ok, but not on a 2yr old proton….
    Only now, i mean ONLY NOW, ur customers start to ask abt safety features, mostly bcos they see a ‘inferior’ proton can give all sort of safety spec n gadgets… And u r not….
    To p2 directors, u guys should pray n be grateful everyday bcos u have ppl buy ur things….in any other country, even third world countries, u will be doomed…

    Like or Dislike: Thumb up 6 Thumb down 12
  • troller on Feb 26, 2016 at 3:35 pm

    trololololol..

    Like or Dislike: Thumb up 0 Thumb down 0
  • pengguna proton kecewa on Feb 26, 2016 at 4:54 pm

    Wow..730 am..i believe a lot of P2 basher here still asleep n garu2 their small egg..kudos to p2..best affordable car

    Like or Dislike: Thumb up 7 Thumb down 2
  • Ootai on Feb 26, 2016 at 10:20 pm

    Axia driver seat spring making noise. Complain during 10,000 km service. Perodua said come to complain again during 20,000 km service. 5 s..ts.

    Like or Dislike: Thumb up 3 Thumb down 1
 

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