CSR Model

This is the proposed CSR Model that our group came up by ourselves. We believe this model can be applied and used by Pensonic Holdings Berhad to improve on their products and processes. This model is named Copy-Study-Reuse (CSR) Model. The principles behind this model is competitors' analysis.

Currently, there are many corporate companies globally realized the importance of corporate social responsibility. One of the ways that companies use is by reducing wastage of resources and to preserve the environment. This shows the commitment of corporates towards maintaining the greenery of mother nature. Therefore, companies in the manufacturing industries came up with various methods of energy-saving processes and machinery to be used in their manufacturing facilities. Apart from that, these companies also produces energy-saving devices to help households and offices to save energy. This continuous strive towards improvements and perfection has lead many corporate companies to instill social responsibility values as part of their code of ethics.

We believe that Pensonic could benefit by studying their competitors better in terms of their products, processes and also the management of those companies. There are six steps in this model, namely :

1. Competitor analysis - by benchmarking and reverse engineering
2. Internal assessment - by exploiting capabilities and constraints
3. Cost-benefit analysis - by testing the market
4. Strategy formulation - by generating alternatives
5. Implementation of Strategy - by selecting best alternative and company-wide implementation
6. Monitoring and Evaluation - by reviewing results, taking corrective actions and continuous improvements

These steps are important to ensure that the company is not mislead and commit themselves in investments that they could not afford or in the detriment of the other products of the company. Therefore, Pensonic must not skip any steps before implementing any improvements to their processes and products. Pensonic should always consider the impact of new innovations on the company as a whole and the consequences before engaging full-force in this investments. Big initial investments must not be feared because the company could gain even bigger market share if they succeed in the implementation of the new proposed energy-saving features in their products and processes. The top management must be supportive to innovation and adapt to the changing trend in order to bring Pensonic to greater heights. Lastly, I believe that Pensonic has much potential for growth and their abilities should be used to maximize their market share and profitability of the company.

Great Job from all

Is great to see my group members have done their parts perfectly I would say. WELL DONE buddies!!!

Case Study 2- Toyota

In October 1957, Chrome and tailfins were the cutting edge of American automotive design. However, Toyota Motor Sales set up shop in a small Southern California dealership. Since then, they have gone on a few exciting drives. In 1965, Toyota introduced the powerful, well-equipped Corona that became an instant hit with Americans. By the '70s, Toyota was the best-selling import brand. During the '80s, Toyota started to manufacture vehicles in the U.S. And today, Toyota continues to earn top honors for product quality.


A two-seat sports car shown at the 1977 Tokyo Motor Show was the first Toyota hybrid vehicle ever displayed. It was a Japanese-market Sport 800 with the engine and transmission replaced by a gas turbine and an electric motor. The gas turbines in this car are similar to the turbofan engines that power jet aircraft. They burn fuel in a combustion chamber that causes a blade-covered shaft to turn at high speed. Toyota had been working on turbine hybrids since 1965, and experiments continued into the 1980s. The Sport 800's turbine did not power the wheels directly. Instead, the shaft turned an electric generator that both charged onboard hybrid batteries and powered an electric motor connected to the rear wheels through a conventional differential and axle. This type of configuration is used today in some heavy-duty buses and trucks, and is called a "series" hybrid.

In the 1960s, many worlds’ automakers try to imitate and explore the application of turbine engines to automobiles. However, they could not follow the approach used by Toyota. Toyota's first production hybrid vehicle entered the Japanese market in 1997. The 24-passenger Coaster Hybrid bus featured a gasoline engine running the generator in a series configuration, similar to the Sport 800 system described above. A few years earlier, Toyota began a new hybrid program that paved the way for Prius, Hybrid Synergy Drive® and Highlander Hybrid. In 1994, Toyota embarked on a development program for a "21st-Century vehicle," with Toyota's environmental Earth Charter as the inspiration for high efficiency and low emissions. Engineers settled on a hybrid solution based on more than 30 years of Toyota hybrid heritage. After the decision was made to move forward on a hybrid system, more than 100 different configurations were considered.



Hybrid and hydrogen vehicles are making news for Toyota. Hybrids have earned universal recognition as environmental and market successes, and hydrogen-powered fuel cell vehicles (FCVs) are regarded as promising zero-emission solutions for the future. When considering the impact of hybrids and FCVs, it's worth taking a "well-to-wheel" holistic approach. Well-to-wheel describes the impact of a vehicle's operation, including the entire cycle of the fuel from the time it's extracted or manufactured until it is used in the vehicle. In a well-to-wheel comparison, a gasoline-powered Prius is actually more efficient than a typical hydrogen-powered FCV. Toyota estimates that Prius has a well-to-wheel efficiency of 29% versus 22% for a typical FCV. It lies in the expenditure of energy involved in producing and transporting hydrogen. Hydrogen is a manufactured fuel. As such, its production requires electric power, which is generated in fossil fuel-powered plants. More energy is expended in producing and distributing hydrogen than is released when it is consumed in a fuel cell.

In contrast, gasoline releases more energy in a car's engine than is needed to pump, refine and transport it. This is a critical factor in making today's hybrids actually more efficient than FCVs in a well-to-wheel context. Toyota estimates that the efficiency of fuel production and delivery to the vehicle's tank is 79% for gasoline versus 58% for hydrogen that is manufactured from natural gas. Natural gas "reforming" is the most common method of hydrogen production. The other major process is electrolysis, in which electric currents split pure water into hydrogen and oxygen. Many advocates of hydrogen power promote the use of renewable energy for electrolysis, including solar and wind-generated electricity. This eliminates fossil fuels from the production process. Renewable production of hydrogen is demonstrated today in a number of locations, with the hope that it can be brought to commercial scale in the future. Toyota and other companies are working steadily and investing millions of dollars in FCV research; but for the foreseeable future, hybrids are being hailed as the best available solution for maximizing fuel economy and reducing emissions at an affordable price.

Toyota's First Consolidated Five-Year North American Environmental Action Plan (2002-2006) have been successfully carried out. They were steady increase of hybrid product offerings to five models and exceeding fuel-efficiency requirements for passenger cars and light-duty trucks. Also, Toyota manage to achieve the reduction of emissions of volatile organic compounds (VOCs) by 56% from 1998 levels in manufacturing operations and reduction of energy use by 30% in manufacturing operations since 2000, double the target, and 19% in sales and distribution operations.

In December 21, 2006, Toyota announced its Second Consolidated Five-Year Environmental Action Plan (2007-2011), setting new environmental goals for all phases of the vehicle lifecycle and addressing themes of energy, climate change, recycling, resource conservation, substances of concern, atmospheric quality and environmental management. The new action plan that was published contained significant commitments which included achievement of best-in-class fuel efficiency performance and reduction of total energy usage of manufacturing facilities and operations in North America by 27% per vehicle produced, using FY 2002 as a base year.
In December 2007, Toyota reported on the progress of its 5 years plan. Their environmental reports show a consistent history of achieving and in many cases exceeding their targets of improving the efficiency of performance and reduction in fuel and energy consumption. The U.S. Environmental Protection Agency has awarded Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) with a 2007 ENERGY STAR Sustained Excellence Award in recognition of its continued leadership in protecting our environment through energy efficiency. The awards recognize ongoing leadership across the ENERGY STAR program including energy-efficient products, services, new homes and in the commercial, industrial and public sectors.
Recently, according to the article published on February 2008, Toyota announced the hybrid and clean diesel initiatives. Toyota will supply plug-in hybrids to commercial customers by 2010 in conjunction with the North American International Auto Show (NAIAS) plans to launch a commercial version of plug-in hybrid concepts by 2010. Toyota does not say which vehicle will be available as a plug-in hybrid, though most industry observers expect it to be a new version of the Prius. The vehicle will feature a lithium-ion battery pack, and Toyota is currently investigating the feasibility of mass production at a battery plant in central Japan, owned by Panasonic EV Energy Company, Limited, a joint venture of Toyota and the Matsushita Group. Toyota is also providing its plug-in hybrid prototypes for an executive shuttle service at the auto show.

In addition, Toyota will offer a new clean-diesel V8 engine in both the Tundra truck and Sequoia SUV in the near future. At next year's NAIAS, Toyota and Lexus will expand their conventional hybrid lineups by staging premieres of an all-new dedicated hybrid vehicle for each of their product lines. In Japan, the company has designed a new valve system for gas engines that will reduce fuel usage per mile, reduce carbon dioxide emissions and enhance performance. The valve system, called Valvematic, controls both the valve timing and valve lift in an engine, according to Toyota. Toyota says the system could improve fuel efficiency by 5 percent to 10 percent. The company plans to implement the new technology in all its gas car engines within the next three years.

Case Study 1-Phillips

Through the centuries there has been a strong link between light and the development of humankind. First there was open fire, which provided prehistoric people with light, heat and security. They began cooking their food, which was easier for babies and the elderly to eat. And with extra hours of light they began to gather in the evenings, planning the next day’s hunt, telling stories and repairing tools. Then the flame was tamed. Oil lamps, candles and matches became commonplace, extending daylight for commerce, learning and social gatherings.
Next flame was put into a glass bulb, truly revolutionizing society by illuminating the night. In fact, the incandescent light bulb was made possible by the commercialization of electricity.

That’s when Anton and Gerard Philips decided to go into business to produce cost-effective, reliable light bulbs for everyone. The company was founded in 1891, when these entrepreneurial brothers opened a small factory to manufacture incandescent lamps and other electrical products. Gerard believed it was his duty to make electricity “more and more the servant of the people,” while Anton was unshakeable in his faith in the triumph of technology and human progress. The foundations for what was to become one of the world's biggest electronics companies were laid in Eindhoven, the Netherlands, in 1891. Philips began by making carbon-filament lamps and, by the turn of the century, was one of the largest producers in Europe.
As developments in new lighting technologies fueled a steady program of expansion, in 1914 it established a research laboratory to study physical and chemical phenomena and stimulate product innovation. Philips is No.1 in the global lighting market, a position supported by leadership in innovation combined with a systematic approach to seeking out new market opportunities.

Philips Lighting strives to improve people’s lives with effective and appealing lighting solutions based on a thorough understanding of people’s needs, desires and aspirations. With Philips longstanding commitment to reduce the environmental impact of our products, it enables consumers to make simple, responsible choices about the products they buy and the impact they have before, during and at the end of their life cycle.

Royal Philips Electronics has patented a unique technology which is known as EcoBoost, will leads to dramatic levels of energy saving for halogen lamps. Depending on the type of lamp in which EcoBoost is used, energy usage decreases by between 40% and 60% compared to standard halogen or incandescent lamps. The realization of the new EcoBoost technology has led to the creation of a brand-new lamp category; Compact Halogen Lamp integrated (CHL-i). It offers another energy-saving alternative (in addition to the CFL-i lamps invented 25 years ago by Philips) to inefficient incandescent bulbs. CHL-i lamps are characterized by a small, single-ended burner and incorporate all necessary electronics in their compact housing. This is one of the Philips green products which offer customers, users and society a significant environmental improvement in one or more of the Philips Green Focal Areas:

Amongst the major projects that Philips Lighting has undertaken in Malaysia include the lighting of the Ministry of Finance complex at Putrajaya, which stunningly glows at night and can be seen as far as 4km away. The unique outline of the façade is carefully illuminated to reflect and enhance the curvature of the building. The symbol of our nation’s soaring success, The Petronas Twin Towers at the Kuala Lumpur City Centre, is illuminated to stand out in a positive light reflecting the building’s striking features using around 626 foodlights. The longest river bridge in the state of Perak - the Sungai Dinding Bridge - is a good example of a city beautification project. Philips’ lightings architectural floodlights are used to illuminate 13 arches of the bridge.

The lighting of the 67 kilometre KLIA expressway which can be dimmed or made brighter based on the number of cars plying along the highway and brightness of the surrounding area at that particular time. The expressway uses an intelligent lighting system whereby the density/intensity of the lights can be controlled depending on the traffic flow, thus translating to energy saving without any compromise on quality of visibility of the roads. They are regulated via telemanagement software, which allows separate control of each individual light point.

Philips Lighting has invested a lot to not only extend the lifetime of its lamps but guarantee the reliability of the expected life times as well. Philips Lighting has developed breakthrough new technologies that have led to new lamp types with extended life times over the years, from MASTERline ES halogen lamps (5,000 hours), to the well-known energy savers with an average life time of up to 10,000 hours, to Mastercolour lamps (12,000 hours), 'TL'5 lamps (20,000 hours), QL induction lamps (60,000 hours) and LEDs with a remarkable life time of 100,000 hours. Many electronic gear inventions of Philips also have helped in increasing the lamp life.

LEDs were once only good for showing that your video recorder was on. Today they are fuelling a major revolution in the lighting industry. LEDs have gotten brighter. Their luminous efficacy which is the amount of light you get out compared to the electrical energy you put in have already surpasses that of tungsten and halogen lamps. LEDs that burn twice as brightly and can create a palette of 16 million colors. Best of all, depending on their color, they'll be up to 98% more energy efficient than the bulbs they replace. Philips also supplied the 50 giant LED snowflakes decorating the front of the flagship Saks Fifth Avenue store in New York. According to Philip, the 40,000-plus LEDs used in the display consume only as much energy as three toaster ovens. Soon it will even exceed that of fluorescent lamps. Scientists at Philips Research have been working to develop organic light-emitting diodes (OLEDs) as a new light source for homes, workplaces, stores, public areas, and even cars and planes.

Taguchi Method

The quality of a product is one of the most important factors that determine a company’s sales and profit. Quality is measured in relation with the characteristics of the products that customers’ expect to find on it, so the quality level of the products is ultimately determined by the customers. The customers’ expectations about a product’s performance, reliability and attributes are translated into Critical-To-Quality (CTQ) characteristics and integrated in the products’ design by the design engineers. While designing the products, they must also take into account the resources’ capabilities (machines, people, materials…), i.e. their ability to produce products that meet the customers’ expectations. They specify with exactitude the quality targets for every aspect of the products.

But quality comes with a cost. The definition of the Cost Of Quality is contentious. Some authors define it as the cost of non-conformance, i.e. how much producing nonconforming products would cost a company. This is a one sided approach since it does not consider the cost incurred to prevent non conformance and above all in a competitive market, the cost of improving the quality targets. The cost of quality is traditionally measured in terms of the costs conformance and the cost of nonconformance to which we will add the cost of innovation. The cost of conformance includes the appraisal and preventive costs while the cost of non-conformance includes the costs of internal and external defects.

Pensonic should focus on the design of its products before the real manufacture of energy-saving goods can be produced in full-force. The technical specialists and engineers can work together to design the processes used and the products to be products so that efficiency can be achieved when the production begins. Pensonic should examine its competitors’ products to find a new method and equipment to produce energy-saving devices. After the causes are identified, the company should test their products’ usage and capabilities to meet customers’ expectations. Pensonic should equip their employees with the necessary training and knowledge to able them to design and produce products that are expected. This ensures that when the production of the products is in full force, the employees have sufficient training and knowledge.

Kano Model

This is another model worth adopting because the model offers some insight into the product attributes which are perceived to be important to customers. This is an excellent tool to support product specification and a useful discussion tool to generate team understanding. This model focuses the attention on differentiating features. The model is a powerful way of visualising product characteristics and stimulating debate within the design team. Kano also produced a rigorous methodology for mapping consumer responses onto the model. Product characteristics can be classified as:

Threshold / Basic attributes

Attributes which must be present in order for the product to be successful, can be viewed as a 'price of entry'. However, the customer will remain neutral towards the product even with improved execution of these aspects.

One dimensional attributes (Performance / Linear)

These characteristics are directly correlated to customer satisfaction. Increased functionality or quality of execution will result in increased customer satisfaction. Conversely, decreased functionality results in greater dissatisfaction. Product price is often related to these attributes.

Attractive attributes (Exciters / Delighters)

Customers get great satisfaction from a feature - and are willing to pay a price premium. However, satisfaction will not decrease (below neutral) if the product lacks the feature. These features are often unexpected by customers and they can be difficult to establish as needs up front. Sometimes called unknown or latent needs.

Product differentiation can either be gained by a high level of execution of the linear attributes or the inclusion of one or more 'delighter' features. But, it should be remembered that customer expectations change over time, and a cup holder in a car may be today's delighter, but tomorrow it will be expected. Some users of Kano also suggest that an additional set of attributes can be classified as 'enragers' - features which enrage either through their absence or inclusion.

This model shows that Pansonic could adopt this model to exhibit more social responsibility by producing energy-saving devices. Currently, Pensonic has built an image for itself for reliable quality of electrical appliances. Thus, the products of the company have the characteristics that customers expect. The second characteristic refers to characteristics that customers look for. If Pensonic is able to produce energy-saving devices, then the company will be able to compete with their competitors and gain a bigger market share. The third component is delighters which refer to characteristics of a product that customers do not expect. Pensonic will gain a competitive advantage and differentiate itself if they are able to produce good quality, energy-saving and also low cost products. This model shows that Pensonic has to consider the needs and demands of customers before producing their products because customers’ expectations should be the main priority.

Six Sigma

There are three main models being published in this weblog last week, namely the PDCA Cycle, the Cause and Effect diagram and the Process Map. In addition to these models, there are three other models that suit the needs of Pensonic to improve on their current production processes. The company could use these models to implement the new suggested innovation to their processes. I would explain briefly about these three models here. Another suggested model is the Six Sigma Model.






The first model is called the Six Sigma Model. This model is meant to be used for quality inspection and to ensure the quality of the products are not compromised. This standard has been widely accepted by many manufacturing companies globally to measure the quality of their products. There are two components of Six Sigma, known as DMAIC and DMADV. DMAIC is mainly used to improve the quality of existing products and processes of a company while DMADV is mainly used design new products and processes. These two components will assist the company in adopting highest quality manufactured products and manufacturing processes. If Pensonic chooses to adopt energy-saving features in its future products, it can use the Six Sigma to implement the new approach to ensure that the company carefully analyze the processes as a whole before committing in this new technologies.