7s model: operation department transformation of Malaysian Sheet Glass (NSG Group)
Azmi Ab Rahman1, Herman Shah Anuar2.
Malaysian Sheet Glass (NSG Group) responds to the everchanging business environment by
putting an effort to do transformation at the operations department. McKinsey 7-S Model is
chosen since the model able to asses a company’s competitive and strategic position. The
model proposes seven key points should be in alignment: strategy, structure, systems, staff,
skills, style and share values. Interview session conducted with the Plant Manager, Ghazali
Ab Rahman and other analysis, showed that MSG strategy needs some alteration as the field
of competition is fluctuating with the ASEAN Trade in Goods Agreement (ATIGA) came
into force in 2015. The systems of MSG need enhancement in order to avoid wastage and
increase efficiency. MSG staff’s are well trained and skillful but they need upskilling for
their performance in order to increase the efficiency. Style and share values are MSG forte.
Recommendations suggested to transform the performance and efficiency of MSG. MSG
need to manage the constraints in their system. MSG is recommended to optimize it
processes, workforce, energy consumption efficiency, to manage lower cost of quality, to
lower the cost of regulatory compliance and to manage inventory carrying costs in order to
drive a better efficiency in its manufacturing operations. To better manage the
transformation, three approaches are recommended including top down, bottom up and core
process.
Affiliation:
- Universiti Utara Malaysia, Malaysia
- Universiti Utara Malaysia, Malaysia
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