Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 112 113 Integrated Annual Report 2023 Upholding Good Governance and Economic Resilience OUR VALUE CREATION Ensuring Quality Product and Manufacturing Standards Guided by the ISO 9001 standard requirement, we continuously improve our manufacturing processes through quality-centric initiatives, including: • Implemented a custom degasser to minimise defects in the manufacturing process • Introduced an automated heating mechanism in the anodising workshop to replace manual operations, thus significantly enhancing our manufacturing processes and product quality • Modified the extrusion press outlet to reduce the ingress of water vapour, and prevent nitrogen gas escape and external air intrusion, thereby enhancing product quality • Enhanced the water spray system to achieve uniform cooling processes by addressing design inadequacies and insufficient water pressure, thereby preventing uneven deformation during profile cooling Improving Product Quality, Productivity and Continuous Learning We adopt a proactive approach to optimising product quality and enhancing productivity through various initiatives, encompassing: • Strengthening of inspection process for consistent product quality before despatching to customers • Addressing customer complaints related to product quality promptly and effectively • Conducting audits to ensure adherence to established standards and procedures • Initiating a compulsory induction programme for new employees, which includes communication of the quality expectations for our aluminium products • Equipping our employees with essential skills and knowledge to identify and address quality issues through our training programmes, including, but not limited to: Upholding Good Governance and Economic Resilience GOING FORWARD Upholding high standards of product quality and customer satisfaction remain fundamental for our long-term value creation. To this end, we will continue to invest in manufacturing process enhancements in response to the industry’s rapid changes and changing stakeholder expectations globally. Concurrently, we will equip our employees with the necessary knowledge and skills in product quality management to ensure our final products consistently meet customer expectations. We are also committed to maintaining close coordination with our customers for timely responses to delivery changes and optimising our loading processes to minimise errors in despatch. Moreover, we will ensure efficient forwarding and logistics to expedite the delivery process, offer transportation advisory services to suppliers and regularly update critical spare parts for operational efficiency. HOW WE PERFORMED IN 2023 Customer Engagement and Satisfaction In FYE2023, we achieved satisfaction scores of 88.1%, with an increase of 0.9% point compared to FYE2022. Standard/ Certification Training: • IATF16949 Automotive Quality Management System Training • The Production Part Approval Process • Quality Management System Document Management Training • ISO 9001:2015 Quality Management System Awareness Training • ISO 9001:2015 Internal Auditors Training Operations-Related Training: • Advanced Product Quality Planning Training • Extrusion Process Training (Automotive Products) • Engineer & Executive Development Programme: Process & Improvement Methodology • Introduction to Quality Process • Inline Rods and Fresh Cast Anodes Quality Inspection • Training on Physical, Mechanical and Electrical Testing, Sampling, Analysis, Specification Compliance and Hazards of the Products • Seminar Calibration: To Ensure Measurement Accuracy • Effective Supervisory Management Skills • Lean Manufacturing Training • Product Packing and Delivery Process Flow The 8-Discipline methodology, meanwhile, follows a structured eight (8)-step approach to problem-solving, aimed at addressing and identifying weaknesses in management systems that may have allowed the problem to occur. The 8D process is outlined as follows: The 7 Quality Control Approach 1. Cause-and-effect diagram (also known as Ishikawa or fishbone diagram) Identifies numerous potential causes for an effect or problem and organises concepts into useful categories 2. Check sheet A structured, prepared form for collecting and analysing data; a versatile tool that is adaptable for various purposes 3. Control chart A control chart comparing current data to historical control limits, indicating whether process variation is consistent (in control) or influenced by special causes (out of control) 4. Histogram The predominant graph for illustrating frequency distributions, showcasing the occurrence of each distinct value within a dataset 5. Pareto chart A bar graph highlighting the factors of greater significance 6. Scatter diagram Identifies numerous potential causes for an effect or problem and organises concepts into useful categories 7. Stratification A method that segregates data acquired from diverse sources to discern patterns (some lists substitute stratification with flowcharts or run charts) 8D Processes Team Establishment Problem Statement Emergency Response Actions/ Corrections Root Cause Analysis & Verification Corrective Actions Countermeasure/ Effectiveness Confirmation Preventive Measures/ FollowUp Actions Team & Individual Recognition/ Review & Approvals D4 D5 D6 D7 D8 D3 D1 D2 Incidents of Health and Safety Non-Compliance for Products and Services 85.7 2021 83.8 2022 81.6 92.8 84.3 2023 92.4 Midstream Downstream Notes: 1. Aggregated data from our midstream (PMBtu, PMS, PMAR) and downstream (PMBA, PMI, PMIT) facilities. 2. Data differed from SR 2022 as an enhanced calculation methodology has been adopted in FYE2023. Customer Satisfaction Rate (%) Incidents concerning the health and safety impacts of products and services 2021 2022 2023 Incidents of non-compliance with regulations resulting in a fine or penalty 0 0 0 Incidents of non-compliance with regulations resulting in warnings 0 0 0 Incidents of non-compliance with voluntary codes 0 0 0
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