Malaysia Automotive Market

The automotive industry in Malaysia consists of various vehicle producers, with a total of more than 640 component manufacturers. Malaysian automotive industry is the third-largest in Southeast Asia and the 25th largest in the world, standing at over 500,000 vehicles produced annually. The automotive industry in Malaysia contributes 4% or approximately RM 40 billion to Malaysia’s GDP (Gross Domestic Product). The automotive industry in Malaysia is growing rapidly, capturing the local and foreign markets. Therefore, it is regarded as an essential sector in the Malaysian economy as cited by (Othman, Kaliani Sundram, Sayuti, & Bahrin, 2016)

Big companies such as Proton and Perodua are some of the automotive companies that originated in Malaysia.

Proton started launched its product on 9th July 1985 while Perodua in 1994. Ever since then, the company sales grew over years. This creates jobs opportunity in terms of manufacturing of automotive components companies as more demand for automobiles from the market.

One of the manufacturers for automotive components is Ingress-Katayama Technical Centre Sdn.

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Bhd. (IKTC) located Kawasan Perindustrian Bangi, Bandar Baru Bangi, Selangor. Ingress-Katayama Technical Centre Sdn. Bhd. is a joined venture between Ingress Corporation Bhd (ICB) and Katayama Kogyo Co Ltd. Japan.

This project is about a study on machining time and cost estimation for a rectangular-shaped component produced by Ingress- Katayama Technical Centre Sdn. Bhd. The approach of the case study is used in this project. The current situation for IKTC when estimating the cost of the machining time is done roughly by estimation by the engineers.

The machining processes involved depend on the shape, size, and material of the components.

Not all machining processes are involved in one component. Only certain processes needed to be done depending on the parameters and the difficulty to execute the process.

Problem Statement

IKTC is currently using the estimation of its engineer to calculate the machining time and cost rate calculation to be given to the customers. Therefore, some inconsistencies may occur when quoting the price quotation to the customers. Inconsistency in machining time estimations and machining cost calculations may end up inaccurate price quotations to the customers. This may lead to loss of customers when they know that an inaccurate price quotation was given to them.

Research Objectives

Based on the issues above, these are some of the objectives of this project:

1. To execute a time study for the machining process at IKTC
2. To compile work processes, machining time, and cost calculation estimation standards at IKTC.
3. To propose a machining work layout and machining costing rate at IKTC
4. Research Scopes

This project’s scope covers on case study for machining processes at IKTC.

Project Limitations

This research project focuses on machining processes that only involved rectangular-shaped components for the case study.

Significant of Project

The significance of this project is to create a program or table using Microsoft Excel that can give a more accurate price quotation to the customers based on the actual time of machining time. The major attribute that this project will contribute to reducing the error made by the engineers at IKTC on quoting a price to the customers.

This project will benefit both IKTC and Unikl MFI. For UniKL MFI, this project can be used as an example and a guideline for upcoming mechanical engineering students about machining cost rate standards. For IKTC, this project can benefit them in terms of quality of price quotation and also money-saving as the project that will be is free-of-charge. Higher quality and accuracy can be shown to the customers in terms of machining time and cost calculation for their items.

This project will be used mainly in the manufacturing industry as it is created to calculate the actual machining time cost rate. However, other industries can use this project as another guideline involving the usage of Microsoft Excel to calculate the cost rate. The drawback of this project also can be seen from the benefit of this project. This is because the product of this project probably will not be able to be patterned because of money issues. The cost to pattern a product is quite high. Therefore, IKTC might be facing the problem of its competitors will be using the same product if the product details are leaked to the outside world.

Project Milestone and Gantt Charts

Below is the project milestone and Gantt chart for EFYP 1 progress. Also, the planning Gantt chart for EFYP 2 that will be done in next semester is included.