TECHNOLOGY ENTREPRENEURSHIP
(ENT600)
CASE STUDY
COMPANY ANALYSIS
THREE C TECHNOVATION SDN.BHD
FACULTY
: MECHANICAL ENGINEERING
PROGRAMME CODE AND GROUP
: EM 241/PEM2417B1
SEMESTER
:7
PROJECT TITLE
: CASE STUDY
STUDENT NAME
: MOHAMAD FAHIM BIN AHMAD NASARUDIN
LECTURER NAME
: SHAIRA BINTI ISMAIL
1
ACKNOWLEDGEMENT
In performing this case study, I had received helps and guidelines from some person who deserve
my greatest gratitude. The completion of this assignment gives me much pleasure also improve my
knowledge on this field. I would like to express my deep and sincere gratitude to Mrs Shaira Binti
Ismail as my Technology Entrepreneurship lecturer for providing invaluable guidance for
completing this case study throughout numerous consultations. Her dynamism, vision, sincerity,
and motivation have deeply inspired me on this study. It was a great privilege and honor for me to
work under her guidance. I am extremely grateful for all her has offered me. I would also like to
thank her for her friendship, empathy, and great sense of humor.
Moreover, I am extending my heartfelt thanks also to my parents, classmates, and friends for their
prayers, caring and sacrifices for educating and preparing me for my future. Despite being
extraordinary busy with their work had taken time out to hear guide and keep me on the right path
and allowing me to carry out my case study
I perceive as this opportunity as a big milestone in my career development. I will strive to use
gained skills and knowledge in the best possible way, and I will continue to work on their
improvement, to attain desired career objectives.
2
TABLE OF CONTENT
ACKNOWLEDGEMENT ....................................................................................................................... 2
TABLE OF CONTENT .......................................................................................................................... 3
LIST OF FIGURES................................................................................................................................ 4
LIST OF TABLES .................................................................................................................................. 4
EXECUTIVE SUMMARY...................................................................................................................... 5
1.
INTRODUCTION ........................................................................................................................... 5
2.
COMPANY INFORMATION ......................................................................................................... 7
3.
COMPANY ANALYSIS ............................................................................................................... 15
4.
FINDINGS AND DISCUSSION ................................................................................................. 17
5.
CONCLUSION ............................................................................................................................. 24
6.
RECOMMENDATION AND IMPROVEMENT ......................................................................... 24
7.
REFERENCES ............................................................................................................................ 25
8.
APPENDICES .............................................................................................................................. 26
3
LIST OF FIGURES
Figure 1: STHI completed Machine ................................................................................................................ 11
Figure 2: HST Completed Machine ................................................................................................................. 12
Figure 3: HDBI Completed Machine ............................................................................................................... 12
Figure 4: Three C Technovation official website ............................................................................................ 13
Figure 5: Three C Technovation official uniforms .......................................................................................... 14
Figure 6: Packaging for Upper Rear Guide ..................................................................................................... 26
Figure 7: Packaging for Tray Guide ................................................................................................................ 26
Figure 8: Packaging from AEM SINGAPORE PTE.LTD ...................................................................................... 27
Figure 9: Automated Inventory Software system .......................................................................................... 27
Figure 10: Assembly production workstation ................................................................................................ 28
Figure 11: Functionality test on machine ....................................................................................................... 28
LIST OF TABLES
Table 1: Company information and background .............................................................................................. 7
Table 2: SWOT Analysis .................................................................................................................................. 16
Table 3: disadvantages of current inventory system ..................................................................................... 18
4
EXECUTIVE SUMMARY
The case study for Technology Entrepreneurship (ENT 600) was implemented to exposed students
from theories to practical business management and applying their knowledge on the problem
solving. This case study gave students opportunity to explore and study companies which provides
innumerable type of industry in term of manufacturing, automotive, electronics, semiconductors,
microchips and others especially in Malaysia. In the first phase of this study, students required to
choose the internship company as the subject for the case study which is Three C Technovation.
the student has gathered the general information of the company which have been collected
through the primary and secondary source. The objective of this project is to use technological
solutions, background information, organizational structure, and services provided by Three C
Technovation Sdn Bhd for the problem solving of the company's issues. Other than that, students
also have explored about company’s technology which primarily been used for their business as
well as marketing and its operational strategy. Moreover, marketing strategy is the is the core to
business component to promote their services for achieving their goals. Apart from that, students
also have analyzed the company’s strength, weakness, threats and opportunities by using SWOT
analysis. Hereby, student has a better view of Three C Technovation information and business
data which could help them to complete the case study
1. INTRODUCTION
1.1. Background Of The Study
A case study was a study of activity, event, or problem which includes real or hypothetical
situation also complexities which student would encounter in the business. Case study is an
important element need to be experienced by students to develop and applying knowledge and
the thinking skills in real situation. In this study, students were required to encounter problems
from the industrial training they had undergo in the past semester break. The problem may be
process, technology, or product/service oriented. An alternative solution to the problems
encounter was includes as the main part of this study. A proper analysis would be done by
student and come up with solution which supported by relevant theory and course concept.
Hereby, this case study has been done at AEM Microtronics. In AEM Mictronics, student was
under Three C Technovation given task to assemble machine. Incoming parts and component
were crucial for assembling machine. A poor and inefficient store keeping for incoming material
5
would lead to problems when assembling machine. Hereby, a proper system with technological
implement would solve this problem. This case study will give students the opportunities to
experience business activity also they get to use all the engineering knowledge so they can
come up with the proper solution to the problems.
1.2. Problem Statement
An Assembly Technician builds final products in a warehouse or other facility based on
instructions and diagrams provided by the manufacturer. An Assembly Technician also
responsible for constructing small parts and components to create new products according to
client specifications. In addition, they perform diagnostic tests on assembled items and conduct
adjustments when needed to make sure the final product functions efficiently. They ensure
quality checks on products made to ensure customers receive a high-quality product.
Hereby, in performing assembling process required a completed parts and component to
ensure the product would be assembling perfectly. Incoming material and component need to
be check and declared before it would be sent to each department for assembling. A poor
management on store keeping would lead to problems to the material and component. Missing,
wrong item and reject parts were the problem encounter due to the poor store management
system. Moreover, time is of the essence and meticulously counting each piece and recounting
to double check the incoming material became a time wasting and losses to the company
1.3. Purpose Of The Study
The purpose of this study is to identify the potential problems of poor store management
system for the incoming material and propose the suitable solutions to the problems. Analysis
on the manual store system for incoming material would be done and data from this analysis
answered why this problem need to be overcome. The method that would be apply is accuracy
of checking and listing data, time usage and the efficiency of both manual inventory system and
the automated inventory management system. The result from this study will show us which
system has better performance and applicable in this business.
6
2. COMPANY INFORMATION
2.1. Background
Name of the business
Three C Technovation Sdn.Bhd
Business address
THREE C TECHNOVATION SDN.BHD, unit
8-1-18A d’orient mall, macallum street ghant,
georgetown, Pulau Pinang
Telephone number
012-477 1031
Type of business
Contract
Manufacturing
and
Engineering
services
Main activity
Mechanical and Electrical Assembly
Company’s vision
To be the most preferred automation service
provider of the global automation industry for
years to come
Company’s mission
To be the most successful automation
services
provider
to
manufacturing
and
engineering companies and in partnership
with them, to forge a powerful competitive
force in the market
Clients
PBQ Leader Motorship, AEM Microtronics,
Penta Master, and SAM Meerkat
Operating time
Monday to Friday from 8 a.m until 6 p.m
Number of employees
Over 80 employees
Table 1: Company information and background
7
Three C Technovation Sdn Bhd (3c Tech) was principally engaged as automation service
provider that has a responsibility to provide manufacturing services to manufacturing companies.
Three C Technovation Sdn Bhd (3c Tech) is managing by a team of experienced and seasoned in
automation field. Apart from that, Three C technovation Sdn Bhd were also specialist in Original
Equipment Manufacturer (OEM) provider, machine assembly and wiring installation.
Three C Technovation Sdn Bhd (3c Tech) is a provider of Contract Manufacturing and
Engineering Services. We could provide a variety of short- and long-term service based on your
requirement. Three C Technovation (3c Tech) could help resolve short term labor shortage, save
on labor costs such as wages, training, and benefits and focus on the core competencies better by
working together with Three C Technovation Sdn Bhd (3C Tech) to create a win-win situation.
Three C Technovation Sdn Bhd (3C Tech) have over 80 of employees that are carefully
trained and interviewed that process experience in manufacturing and engineering such as
Engineer, Technician, Operator, Quality Control, General worker, and customer services.
Therefore, Three C Technovation Sdn Bhd (3C Tech) able to comply with manufacturing industries,
semiconductor industries, automotive industries, medical product industries and food industries.
8
2.2. Organizational Structure
9
2.3. Product/services
Three C Technovation Sdn Bhd (3cTech) offers value add services for all types of
mechanical and select electro-mechanical assembly services starting from product introduction
through full production either simple or complex assemblies will be done in the most costeffective manner while maintaining the highest quality levels. Three C Technovation Sdn. Bhd
cover all types of industries either OEM, agriculture, automotive, medical, and industrial.
Three C Technovation Sdn Bhd (3C Tech) provides one-stop-solution center in Wire &
Cable interconnect solutions which cover wire harness preparation, electrical control panel,
electrical system integration and PLC system. Moreover, Three C Technovation Sdn Bhd (3C
Tech) also provides other electrical and wiring assembly such as Turret Machine, Vision
Machine, Pick and place machine, Packaging Machine, Trimming machine, Tester Machine,
Solar Machine, Polycord and Chain Conveyor, Warehouse storage system.
Three C Technovation Sdn. Bhd (3C Tech) offers a variety of services and have the
flexibility to customize your requirements which also covered machine alignment, machine fine
tuning, machine troubleshooting, machine maintenance, on-site machine interface installation
and on-site service support.
10
2.4. Business, marketing, operational strategy
Business
The company offers services for all types of mechanical and electro-mechanical assembly for
full production either simple or complex assemblies. The company also covered variety of
services and flexibility in customer requirement as long as the service is in the engineering
fields. For AEM Microtronics where students were placed for the industrial training, Three C
Technovation were given project to assembly mechanical parts for full production. There were
four types of machines which is STHI, HST, HDBI, and HBX. Each of this machine contains
major modules such as Input/Output module, robot module and column module.
The finish assembled machine will undergo quality assurance before it would be setup the
coding, program and installed the suitable software. Completed product will be hand over to the
AEM Microtronics for the delivery and shipment process.
Figure 1: STHI completed Machine
11
Figure 2: HST Completed Machine
Figure 3: HDBI Completed Machine
12
Marketing
Three C Technovation is a sub-contract company which provided mechanical and electrical
assembly services and others manufacturing service. By providing services comes with challenge
to ensure companies always offered to new partnership and clients. Majority clients of Three C
Technovation are located at industrial free zone such as Penang, Batu Kawan and Kulim Hi-tech
which is in the range area from the base company located. However, Three C Technovation also
encourage to be worldwide manufacturing service company. Hereby, the company has prepared
the marketing strategy to enhance the company reputation.
The first marketing strategy to promoting Three C Technovation company is by using
creating the official website which is https://3ctech.com.my/ . The official website Three C
Technovation consisted of the company’s background, the details on the serviced provided,
feedback and reviews about the company services. Moreover, the detailed-on contracts and any
required information could directly through whatsapp to the given number which directly to the
operation manager Yeap Chee Siang. In addition, this official website also stated the major clients
where they currently provided serviced such as AEM Michrotronics, PentaMaster, SAM Meerkat
and Intel.
Figure 4: Three C Technovation official website
Then, the marketing strategy continue by using the employee’s uniform. Three C
Technovation uniform presenting their company logo and the QR code at the rear side of the
13
uniform. Therefore, each employee is representing their company’s name and the potential clients
also can easily contact or review this company by scanning the QR code provided.
Figure 5: Three C Technovation official uniforms
Operational strategy
Three C Technovation is a sub-contract company which provided mechanical and electrical
assembly services and others manufacturing service. Operational strategy is the core to the
business succession. Hereby, improving supply chain is one of the strategies applied by Three C
Technovation. As a manufacturing assemble company, cost to manufacture product is the crucial
and the delivery goods and equipment must be efficient. Three C Technovation reducing costs of
materials with bulk purchases or automating parts of the production line.
The next strategy is Core competencies strategy. This strategy involves a business recognizing
and vastly improving its strengths, resources, and capabilities to attain a sustainable competitive
advantage. A business's core competencies include its technical superiority, financial position,
customer relationship management, distribution system, market share, and efficient processes.
This strategy focuses on areas of strength to increase a business's expertise and applies this
expertise in other markets while adding value to the consumers.
14
3. COMPANY ANALYSIS
•
STRENGTH
WEAKNESS
Consistent Quality
Insufficient employees
Three C Technovation consistently give
•
the best working quality and performing
company after gained experienced in
more than client’s expectation.
this
always exposed to the engineering
field
to
prepare
for
•
the
•
The company have strong and stable
management
which
this
company could survive and expand their
business even world was being hit by
pandemic.
Flexibility
•
Three C Technovation covers majority
works in engineering fields.
•
This
company
sub-contract
Three C Technovation doesn’t have
the employees.
Strong financial
financial
to
clinic panel which could be essential to
upcoming works.
•
due
Low benefit to employees
Employees of Three C Technovation
trainings
company
company.
Experienced employees
•
Employees were always finding another
always
welcome
customers advice and requirement and
tends to follow with the best solution.
15
Employees salary increment were lower
compared to other companies.
•
OPPORTUNITY
THREAT
Customers loyalty
Economy problem
Three C Technovation clients were
always
looking
for
an
•
ongoing
Economic problems for worldwide have
slowdown the manufacturing industries
relationship with contract manufacturing
and indirectly effect the company
company
Competitors ability
Market growth
•
Global
manufacturing
•
sub-contract
manufacturing industries grows over
company are positively growing and
time and introducing improvement on
demand
their services.
machine
technology
increase.
Good relationship
•
in
and
on
factory
Competitors
Three
C
Technovation
have
good
engagement on Mega companies in
electronic
and
manufacturing
in
Malaysia.
Table 2: SWOT Analysis
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4. FINDINGS AND DISCUSSION
PROBLEMS
An inventory management system or inventory system is the process by which companies can
track the items and product throughout their entire supply chain, from purchasing to production and
lastly to end sales. A good inventory management to ensure their business is working follow their
target and the customer requirement. Any company that handles stocks for production, will need a
system to accurately track and control. However, Three C Technovation having problems on their
inventory management where the items and equipment from the vendor were not received based
on the planning schedule which led to delay on the assembly production.
These problems basically occurred when the inventory management system was poor
which the ordering for items and equipment were done manually. Hereby the item receiving to the
assembly production were not accurate and cause to delay for assembling process. A delay for
assembling machine will affect the company performance and their credibility.
Moreover, every incoming stocks for items and equipment were manually checked and
arranged from the warehouse to the assembly production. There were around three employees
who responsible for checking the incoming stocks quantity and delivering to the assembly area.
The employees need to check each item one by one from each vendor by using printed list for
incoming stocks. Due to this problem, the assembly production having an incomplete part and
equipment for their assembly process.
1. Periodic inventory system
Three C Technovation was applying for periodic inventory system for their inventory management
system. A periodic system is one that involves the regular or semi-regular counting of stock on
hand to determine inventory value and to discover any losses from theft, breakage, and
obsolescence.
For businesses selling services, start-ups without much capital, or small
businesses with slender resources or minimal stock, using a periodic system is an easy and
straightforward method. However, Three C Technovation was conclude as the growth
manufacturing companies as their customers and business partners were increased by year. By
using periodic inventory system was not relevant or suitable for their company progress.
17
Disadvantages of current inventory system
•
long time
Manually
counting
and
checking
inventory will take a long time.
Inaccurate
•
Delay to assembly production.
•
Storage management will encounter
incorrect data due to poor management
system.
•
High labor cost
Company needs to hire more employees
for handling inventory.
•
Not suitable for high production
Inventory
management
could
not
support the quantity for the production.
•
Poor management system
Inventory always having understock or
overstock.
•
Poor
scheduling
for
receiving from vendor
Table 3: disadvantages of current inventory system
18
ordering
and
SOLUTION
Automated inventory Management
Automated inventory management is a crucial step to take for any growing business. With
advanced management software, businesses can keep track of sales, promotions, and ordering.
Tasks and vendor management can be automated also company can do it across multiple
locations. Large businesses that must handle a broad range of inventory goods over intricate multiechelon distribution networks benefit the most from automated inventory systems.
a. Automated inventory system
An automated inventory system makes it easier to track inventory levels and locations, value and
audit inventory, purchase goods, and sell inventory. These solutions rely on IoT technologies to
automate the entire inventory process. In order to prevent stockouts and overstocking, the platform
provides demand-driven inventory planning, multi-location inventory management, and inventory
optimization based on sophisticated analytics.
System / software
Functions
•
Enterprise Resource Planning (ERP)
For accurate multi-location inventory
planning.
•
To schedule the best time for relocating
the inventory from the warehouse to the
operation placed
•
To leverage inventory data at all levels
of operational and strategic planning.
•
Customer Relationship Management (CRM)
For automated input of relevant data for
incoming and output inventory
•
Vendor Portal
For automated input of product data
from vendor
19
•
To facilitated item status tracking
•
For faster processing invoices uploaded
from vendor
•
Accounting Software
accurate inventory value recording and
reporting, and automatic recording of
inventory transactions in the general
ledger.
•
Hardware
For accurate inventory level and location
monitoring.
•
Business Intelligence (BI) solution
For the analytics and visualization of
multi-location
inventory
demand
analytics
Historical data and
inventory demand for
internal process
Enterprise resource
planning (ERP)
Customer
relationship
management (CRM)
Real time
inventory data
Business
intelligence (BI)
solutions
Automated
inventory system
Customer order detail
and historical data on
customer demand such
as location and period
Purchase orders
Vendor Portal
Accounting
software
Data on inventory
purchasing, selling
and utilization
Real time inventory data such
as expected inventory delivery
dates
Hardware
Importing inventory
data such as
identification number
20
Supplier invoices, Data on
current Po status, and data
on the product provided
b. Key features
Automated inventory system is a solution to the inventory management to every companies.
There were several features that form the core to this automated inventory solution such as
inventory planning, inventory ordering automation, SKU management automation, Inventory cost
automation, inventory control automation, automated inventory reservation, inventory optimization,
customer order management, reverse logistic automation, and inventory analysis.
2.1. Inventory planning
•
Automated calculation for required inventory amounts by period, location and inventory item
refer to the data analysis from the previous order.
•
Automatic calculation of anticipated inventory delivery dates based on the analysis of
previous inventory lead times
•
Inventory demand to support internal processes and customer demand
2.2. Inventory ordering automation
•
Purchase orders are automatically created when particular dates and reorder points are
reached.
•
Automated workflows for multi-department purchase order approval.
•
Status tracking for real time purchase order
•
Purchased invoice processing and submission for payment are automatically done.
2.3. Store keeping unit (SKU) management automation
•
Automated updating for SKU information when new data appear
•
Stock in and out are clearly manage
2.4. Inventory costing automation
•
Valuation of automated inventory is based on FIFO, LIFO, weighted average costing, and
other inventory costing methods.
•
Calculating inventory carrying costs.
21
•
Calculating cost of goods sold (COGS).
2.5. Inventory control automation
•
Monitoring inventory levels using barcode or RFID technology
•
Alerts on low-level inventory.
•
Inventory audit based on barcode or RFID technology.
2.6. Automated inventory reservation
•
Automated inventory reservation for a customer order.
•
Automated inventory reservation and request for transfer from warehouses to the
locations where operations are conducted.
2.7. Inventory optimization
•
The use of AI to calculate the ideal stock levels and reorder points for each inventory item
based on previous production and sales data, product promotions, demand seasonality,
and other variables.
•
AI-driven inventory reallocation suggestions across various production plants, warehouses,
and distribution locations
c. Benefits
Automated inventory management is one of the best inventory management systems that have
been applied by big companies in Malaysia and international. By automatically operating this
inventory management will give extra advantages and benefits to the companies also the business
partners.
There were several benefits that companies will experience when using automated
inventory management. First is it can save time which companies could save hours of time when
all the data and inventory items were automatically operated based on the software used.
Moreover, manually counts and manage the data could leads to human errors because it’s
extremely difficult to accurately checking the incoming material for hundreds or thousands for a
week. By using automated inventory management will give the more accurate inventory
management.
22
Automated inventory system was also more efficient compared to other inventory
management system. All purchasing data, track record, scheduling and planning were wisely
arranged based on the company and customer demand so that any unwanted problems can easily
be traced and solved using appropriate manner. All the updates on orders, delivery and sales also
can be monitored because it was made in real time.
Lastly, automated is essential for chains and franchises. It was very suitable for companies
which have several plant locations and have the products or items which link and need to supply to
each other.
23
5. CONCLUSION
As a conclusion, case study was splendid exposure for students to learn extra knowledge on
business management and at the same time applied their engineering knowledge. By completing
this study, students able to handle the problem solving for their internship company. Three C
Technovation was great company in electronic and manufacturing fields. Contract manufacturing
was one of the major businesses in Malaysia. However, a good inventory management system
was not seriously implanted in these companies which cause them to many problems. Hereby,
automated inventory management was the best solution to this problem. Instead of good
management system, automated inventory management can give many benefits to the company,
clients, and their businesses partners. Lastly, this case study could enlighten companies on the
importance of inventory management to their business progress.
6. RECOMMENDATION AND IMPROVEMENT
For the recommendation, Three C Technovation should ensure their resources on the inventory
management are compatible with their technology and target market. Hereby, the management
department and production department can carry out their work efficiently. Moreover, Three C
Technovation should train their employees to current inventory software so that they can applied to
their work. By doing this, company can easily improve their inventory management with the help of
experienced employees on this fields. Then, Three C Technovation also should propose to other
advanced software and system company to received advice on how to create or improve the
inventory management system for their company to the optimum utilization.
24
7. REFERENCES
AcaDemon. (2005). Retrieved October 30, 2022, from Inventory Control Systems-Inventory control systems
as related to overall: http://www.academon.com/lib/paper/57872.html
Balloons, C. (n.d.). Virtual Factory on Biz/ed. Retrieved October 29, 2022, from Cameron Balloons Virtual
Factory on Biz/ed.: httpwww.bized.ac.uk/virtual/cb/factory/purchasing/theories2.htm
Chalberg, M. (2021, February 9). Korona Pos. Retrieved October 30, 2022, from automated inventory
management: https://koronapos.com/blog/automated-inventory-management/
Kakeeto, K. (n.d.). 2003. Project report entitled Inventory Management System for Graphic systems Uganda
limited.
Kroeber, W. D. (1987). Computer-based Information Systems: amanagement approach, 2nd ed. New York:
Macmillan Publishing Company. 2nd edition.
Serheichuk, N. (2020, December 15). N-ix. Retrieved October 30, 2022, from Inventory management
automation: How you can benefit from it: https://www.n-ix.com/automation-warehouseinventory-management/
Siang, Y. C. (n.d.). Three C Technovation Sdn.Bhd. Retrieved October 28, 2022, from https://3ctech.com.my/
Soft, S. (n.d.). science soft, Professional Software Development. Retrieved October 28, 2022, from
https://www.scnsoft.com/scm/automated-inventory
Steven, J. W. (1987). Production Operations Management. 2nd Editon.
Zipkin, H. P. (2000). Foundations of Inventory Management.
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8. APPENDICES
Figure 6: Packaging for Upper Rear Guide
Figure 7: Packaging for Tray Guide
26
Figure 8: Packaging from AEM SINGAPORE PTE.LTD
Figure 9: Automated Inventory Software system
27
Figure 10: Assembly production workstation
Figure 11: Functionality test on machine
28