Face the Facts and Eliminate the Myths – Malaysian Leadership and Top Management MUST Eliminate Wastes at ALL Levels and STOP all the NONSENSE style of Leading&Managing esp of NOT WALKING THE TALK JUST CAKAP2,BORAK2 AND FINALLY OUTCOME OF NO VALUE TO THE RAKYAT!What’s the point of spending a lot to save so little and make so little profits?

Do YOU know by factual accounts the amount of Ringgit we waste every year,month,days and hour?

All the errors we make as Leaders of the Country and States plus as Top Management of Companies big or small is a CRIME TO THE RAKYAT AND WASTES OF PUBLIC FUNDS.

When we make errors we make many bad outcomes and errors mean wastes of time,people efforts,resources of all kinds like materials,money,opportunities and so many actually to list here..we need a Lab style of meeting to think,study,analyse,recommend and act to this Project for Wastes Elimination Transformation Programme or  WETP just like GTP and ETP!Remember GTP and ETP can also become wastes to Malaysia if not thought of rightly,sincerely and act accordingly to get the Big Fast Results and the Final Outcome of 2020!

So wastes is a good study for all Leaders and Top Management and when we study rightly and with serious passion,commitment and willing to act rightly we can SAVE LOTS OF PUBLIC FUNDS OR CAPITAL THAT WE HAVE,BORROWED OR SEEK FROM MANY SOURCES.In times of financial crisis we know its hard to  invite Foreign Direct Investments to the country and also companies having tough times to sell their product or services BUT we always hear the government and companies are “spending like mad” for activities or projects better left untouched or just eliminate due to wastes of money,time and people’s efforts.

What then are the GREAT WASTES OF THE GOVT AND COs’?

This is a lengthy subject for discussion but Ramli will just list a few projects or activities that have caused lots of wastes (money loss) and time and even tarnish Malaysia’s image as a Great Country and having many positive personalities that help build Malaysia and eliminate wasteful projects!

Before that its important to understand the kind or category of wastes that we created and this is best to refer to the industry methodology of studying wastes by what Gurus like Juran and Crosby have highlighted to Top Management and they are the COPQ ie Cost of Poor Quality (include Leadership and Mgmt poor decisions)

1.Failure Costs both Internal and External where due to our bad decisions we make errors and wastes are created internally and also externally.This are “gone case” where we really have created wastes and lots of money is lost!External failure costs is worst because we even tarnished our country’s name and co’s name.This also caused market claims from customers and anyone effected by our mistakes.

2.Appraisal costs are wastes that we created because we dont believe in our System so we create special departments or people to always do checking or inspection so that our projects or orders are checked and maintained for results.All these checking or safe guarding are wastes since we now need to spend lots of money to perform all these checking or appraisals.

3.Preventive costs are all those efforts we do to try to make our projects or decisions Right the First Time and these maybe the least costs incurred by the Govt or Cos concerned.Here we try to train our people to know what to do rightly and correctly with minimum errors or failures.By doing many of this kind of preventive actions we hope to get the Best Outcomes and like our many projects towards 2020,we hope we achieve all of them or some of them.It will be a nightmare if we dont achieve any of them!

Ramli in his many years in the corporate sector like with Matsushita and Affin Bank have realised the weakness in Mgmt to create this great study and passion on COPQ.So,when there is no serious leadership,thoughts and actions to realize the importance of COPQ,we continually make errors all the time and Top Mgmt errors can costs the company a “bomb” where millions of RM are lost and no way of recovering them.

At the Global fronts,there are also companies and even govts who have made grave errors and lost Billlions of USD of Public Funds and Shareholders money and turn their companies Bankrupts and even countries!

OK,the list of Govt Leadership and Top Mgmt at Cos’ errors and wastes of the highest degree are like:

• People still live in hardships and the poverty levels is still BAD for the majority of the population while maybe 10-20% of the population controls 80-90% of the country’s wealth!
• Leaders just talk and make promises BUT nothing is actually delivered in full or ontime as promised in the election period!
• Wastes are created everywhere all the time like too many official visits like 4 times a week both domestic and overseas  with no real reason and results.Just jalan jalan and suka suka.Better stay in the office by talking and listening to staff ideas and feedbacks for improvements.We need quality time for quality results and eliminate all the COPQ.
• What is Budgeted and Executed are questionable in terms of ROI and wastes generated and costs saved.This need careful and more study!
• Top Mgmt demand “exorbitant salaries” nowadays in Malaysia BUT with their short contract tenure of 2-3 years and possible extension,they tend to produce “as what they can” and not go for long term based and quantum or gigantic business results and seem like Touch N Go styles of management where there is No Good Corp Culture being developed,talent management being look after and many more long term based projects.This is just creatimg lost opportunities to become Global Champions or Regional Champion companies due to this TnG style of management practise and very soon the same CEO is found managing another GLC or PLCs again starting the same nonsense mgmt styles…
• The events of mass destructions if there are street riots or demonstrations can be VERY HARMFUL AND LOTS OF WASTES can be created if the “foolish people” start damaging public properties like govt offices,hospitals,roads,trains,buses and police vehicles etc….this are the Rakyat assets and by damaging these public properties we may prove a point in our demos but it only hurt more when we lose lots of money and need to rebuild those destroyed or left without one like schools,offices or hospitals and we suffer the bad times….
• PEACE,UNDERSTANDING,COOPERATION are all very important to not allow our foolishness,nonsense or bad personalities to happen and by upholding these good values we help make Malaysia BETTER,HAPPIER,PROSPER,ELIMINATE GREAT WASTES,BUILD GREAT TALENTS AND MANY MORE…

In summary for this brief article,Ramli hoped we think seriously of eliminating all these wasteful ways or actions that both Govt Leaders,Top Mgmt of Companies and people like you and me have done or committed everyday or sometimes.

We need to follow the ways or leadership shown by Prophet Muhammad pbuh and his Pious Caliphs where the Prophet pbuh have always shown the rightful ways of living by not making wastes and try our very best to save everything that Allah SWT have bestowed and grant to humans to satisfy their living needs and pleasures.The examples of the ways of the Prophet Muhammad pbuh is so great and honourable that really teach us the importance of not creating wastes at all and teach others the same since the new generations must also possess these noble values or way of living rightly and properly.

The world’s food supply and natural resources are getting less and less and if we do not save them or utilise correctly with good sustainable mgmt styles rather than all the nonsense styles of mgmt then our future generations can hope for a better,greater and happier future ahead.

Pursue or passion for KNOWLEDGE is not waste but KNOWLEDGE IF NOT MADE TO BE USE AND GET RESULTS IS WASTE!

Contact Ramli for more details or your feedbacks at hp:+6019-2537165 or email at: ramlipromoter@yahoo.com

Some facts on COPQ made available at Wikipedia:

 

 

Cost of poor quality

From Wikipedia, the free encyclopedia

Cost of poor quality (COPQ) or poor quality costs (PQC), are defined as costs that would disappear if systems, processes, and products were perfect. in his 1987 book Poor Quality Costs.^[1] COPQ is a refinement of the concept of quality costs. In the 1960s, IBM undertook an effort to study its own quality costs and tailored the concept for its own use.^[2]. While Feigenbaum’s term “quality costs” is technically accurate,

COPQ was popularized by IBM quality expert H. James Harrington it’s easy for the uninitiated to jump to the conclusion that better quality products cost more to produce. Harrington adopted the name “poor quality costs” to emphasize the belief that investment in detection and prevention of product failures is more than offset by the savings in reductions in product failures.

COPQ decomposes COPQ into the following elements:

Cost	Description
Direct poor-quality costs Controllable poor-quality cost Prevention cost Appraisal cost Resultant poor-quality cost Internal error cost External error cost Equipment poor-quality cost	Direct COPQ can be directly derived from entries in the company ledger.[3] Controllable COPQ is directly controllable costs to ensure that only acceptable products and services reach the customer.[4] Resultant COPQ are costs incurred because unacceptable products and services were delivered to the customer, resulting from earlier decisions about how much to invest in controllable COPQ.[5] Equipment COPQ are costs to invest in equipment to measure, accept, or control a product or service[6]. It is treated separately from controllable costs to accommodate the effects of depreciation.
Indirect poor-quality costs Customer-incurred cost Customer-dissatisfaction cost Loss-of-reputation cost	Indirect COPQ is difficult to measure because it is a delayed result of time, effort, and financial costs incurred by the customer. These customer costs add up to lost sales and therefore do not appear in the company’s ledger.[7]

 

Examples

Cost element			Examples
Direct poor-quality costs	Controllable poor-quality cost	Prevention cost	Quality planning (for test, inspection, audits, process control) Education and training Performing capability analyses Conducting design reviews
		Appraisal cost	Test and inspection Supplier acceptance sampling Auditing processes
	Resultant poor-quality cost	Internal error cost	In-process scrap and rework Troubleshooting and repairing Design changes Additional inventory required to support poor process yields and rejected lots Reinspection and retest of reworked items Downgrading
		External error cost	Sales returns and allowances Service level agreement penalties Complaint handling Field service labor and parts costs incurred due to warranty obligations
	Equipment poor-quality cost		Micrometers, voltmeters, automated test equipment (but not equipment used to make the product)
Indirect poor-quality costs	Customer-incurred cost		Loss of productivity due to product or service downtime Travel costs and time spent to return defective product Repair costs after warranty period Backup product or service to cover failure periods
	Customer-dissatisfaction cost		Dissatisfaction shared by word of mouth
	Loss-of-reputation cost		Customer perception of firm

White collar COPQ

Harrington noted that expanding cost analyses to management and clerical workers could also make a significant dent in waste.^[8] He defined the following costs by functional area:

Functional area	Controllable COPQ	Resultant COPQ
Controller COPQ	Timecard reviews Capital equipment reviews Invoicing reviews Billing errors Incorrect accounting entries Payroll errors
Software COPQ	Design reviews Code reviews Crashes Deadlocks Incorrect outputs
Plant administration COPQ	Security Facility inspection and testing Machine maintenance training Disclosure of trade secrets Facilities redesign Overstaffing/understaffing Equipment downtime/idle time
Purchasing COPQ	Vendor reviews Periodic vendor surveys Follow-up on delivery dates Strike built-in costs Line-down cost Excessive inventory due to suppliers Premium freight cost
Marketing COPQ	Sales material review Marketing forecast Customer surveys Sales training Overstock Loss of market share Incorrect order entry
Personnel COPQ	Prescreening applications Appraisal reviews Exit interviews Attendance tracking Absenteeism Turnover Grievances
Industrial engineering COPQ	Packaging evaluations Layout reviews OSHA reports Inspection of contract work OSHA fines Shipping damage Redoing layout Paying contractors for poor work

Cost of poor quality by inception point

The damages of poor quality augment as the inception point is farther down the supply chain:
TCFP [Total Cost of Faulty Part] =
Direct Cost (manufacturing cost)
➔ failure at supplier’s site (bad)
+ Labor Cost (assembly and testing)
+ Overhead Cost (Inventory, handling, shipping costs)
+ Scrapping Cost (of part and attached parts assemblies: Sometimes assemblies cannot be disassembled and have to be scrapped altogether)
+ Rework (applying a new part instead)
➔ failure at manufacturer’s site (worse)
+ Repair / Recall Costs (these are costs associated with repairing or replacing a new part / assembly under warranty)
+ Product Liability Costs (These are costs resulting from damages caused by the faulty part to 3rd parties)
➔ failure at customers’ site (worst)