Strategies to Improve Productivity in LSS Plastic Industries, Malaysia

This report examines strategies to enhance productivity at Lee Soon Seng Plastic Industries Sdn Bhd, a major player in the South East Asian disposable food packaging industry. The research utilizes primary data collection and analysis to identify areas for improvement, focusing on product quality, skill factors, marketing strategy, and technology. The study delves into the company's background, including its history, organizational structure, and market position. It investigates the impact of factors such as old product designs, inadequate employee training, and outdated machinery on productivity levels. The research objectives include determining the factors influencing productivity and analyzing the influence of product quality, skills, marketing, and technology. The report includes a detailed methodology, data analysis, findings, recommendations, and conclusions, providing a comprehensive overview of the challenges and opportunities for enhancing productivity within the organization. The report also provides insights into the Malaysian plastic market and its growth trends.

IMPROVE PRODUCTIVITY IN LEE
SOON SENG PLASTIC INDUSTRIES
SDN BHD
Student Name
Student Number
Date

LIST OF ABBREVIATIONS
Lee Soon Seng – LSS

EXECUTIVE SUMMARY
Globalization with the advent of technological up-gradation has led to cross-border trade and
commerce. Manufacturing units are facing increasing demands in line with the capability of
companies to expand and distribute their products in neighboring as well as other countries.
The current scope of research analyses ways to enhance productivity in Lee Soon Seng
Plastic Industries Sdn Bhd. This research makes use of primary data collection and analysis
techniques to arrive at findings related to ways in which productivity can be enhanced within
the industry. The research would aim to improve the productivity of Lee Soon Seng Plastic
Industries Sdn Bhd.
Lee Soon Seng formerly is a leading name in the disposable food packaging industry in South
East Asia. Its products comprise of tray blister, clamshell, lunch box and many more but with
an environmentally responsible production approach. The industry has been into existence for
the past 33 years and has been growing ever since with a range of innovative products and
bringing into the market the most innovative product range. All the products manufactured in
the industry are designed with consistent quality and with attractive features within budget.
LSS had been listed on the Kuala Lumpur Stock Exchange in the year 2008 as SCGM
Berhad. The organization is headed by the Managing Director, MD below whom Chief
Executive Office, CEO heads the organization. The CEO heads the Chief Operating Officer,
COO, Chief Financial Officer, CFO, Vice President (VP) Marketing, Vice President (VP)
Engineering, VP of IT and VP Sales. Headed by each Chief Officers and VP are the
individual departments of the organization. The company has a hierarchical type of
organizational culture. It manufactures varied types of plastic containers and products
depending on the demands of its consumers. The industry's core focus is on supplying the
various product categories to different customers. Its key services include supplying various

completed products, quality checked. The company abides by the HSE policies of the
Malaysian government. It makes use of traditional marketing strategies to market products of
the company.
A research methodology explains the way this study has been conducted to evaluate the
readability and validity of the research. In this study, the research problem has been evaluated
utilizing quantitative methods. Quantitative methods of conducting a study are considered
best to describe, interpret, and gaining in-depth knowledge regarding the phenomenon that is
taking place. The questionnaire was circulated amongst employees and customers and they
were asked to provide their input which was then analyzed to arrive at the findings of the
study. The research was conducted by the scholar by first analyzing the problem of the study
in detail. After analysis of the research problem and questions of the research, the scholar
went through several company examples where a similar problem was being faced. The
scholar aimed at giving a certificate of participation to all those persons who wished to take
part and contribute to the study. Out of the several research instruments available, the scholar
found it best to use a questionnaire for the study. While the questionnaire can be close-ended
and open-ended in nature, the scholar purposely selected a close-ended questionnaire such
that the hypothesis of the study can be appropriately established. These questionnaires along
with the cover letter were circulated using email.
For large businesses improving productivity is at the core of their sustenance. It concerns
bringing about major changes and transformations such that the profitability and viability of
the business can be attained. Developing productivity includes undertaking improvement
measures within the current systems and making people more effective over some time. LSS
is a highly competitive company with large investments. Enhancing its productivity will
assist in spreading its products and services more. Adopting the above recommendations will
allow the company to increase its productivity and meet the challenges it is currently facing.

TABLE OF CONTENTS
List of Abbreviations..................................................................................................................2
Executive Summary...................................................................................................................3
Table of figures..........................................................................................................................6
Table of Tables...........................................................................................................................7
1. Introduction.........................................................................................................................7
1.1 Background of Study........................................................................................................8
1.2 Problem statement............................................................................................................9
1.3 Research aim..................................................................................................................10
1.4 Research objectives........................................................................................................10
1.5 Research Questions........................................................................................................11
1.6 Research variables and Hypothesis................................................................................11
1.7 Summary and conclusion...............................................................................................12
2. Organization Background.............................................................................................12
2.1 Introduction....................................................................................................................12
2.2 Organisation history & background...............................................................................13
2.3 Organisation mission & vision statement.......................................................................16
2.4 Quality practices.............................................................................................................16
2.5 Organisation award.........................................................................................................17
2.6 Organisation chart..........................................................................................................17
2.7 Product............................................................................................................................19
2.8 Service............................................................................................................................19
2.9 Company culture............................................................................................................20
2.10 Core value.....................................................................................................................20
2.11 Financial highlight........................................................................................................21
2.12 Company objective.......................................................................................................21
2.13 Health, safety & environment (Company Policy)........................................................22
2.14 Marketing strategy........................................................................................................22
2.15 Summary / conclusion..................................................................................................23
3.0 Research Objectives...........................................................................................................25
3.1 MAIN RESEARCH OBJECTIVES..........................................................................25
3.2 SPECIFIC RESEARCH OBJECTIVES....................................................................27

3.2.1 To determine the influence of product quality to improve productivity in Lee
Soon Seng Plastic Industries Sdn Bhd..............................................................................27
3.2.2 To determine the influence of skills factor to improve productivity in Lee Soon
Seng Plastic Industries Sdn Bhd.......................................................................................27
3.2.3 To determine the influence of marketing strategy to improve productivity in Lee
Soon Seng Plastic Industries Sdn Bhd..............................................................................28
3.2.4 To determine the influence of technology factor to improve productivity in Lee
Soon Seng Plastic Industries Sdn Bhd..............................................................................28
3.3 BENEFIT TO THE COMPANY..................................................................................28
3.4 Research Methodology...................................................................................................29
3.5 Research Process............................................................................................................29
3.6 Research Philosophy......................................................................................................30
3.7 Research Approach.........................................................................................................30
3.8 Research Strategy...........................................................................................................31
3.9 Time Horizon..................................................................................................................31
3.10 Data Collection.............................................................................................................32
3.11 Research Instrument.....................................................................................................33
3.12 Samples.........................................................................................................................34
3.13 Sample Size and Sampling Technique......................................................................34
3.14 Ethical Issues................................................................................................................34
3.15 Summary and conclusion.............................................................................................34
4.0 Data Analysis & Finding...........................................................................................36
Analysis and findings 1: Product Quality.............................................................................36
Analysis and findings 2: skill factor.....................................................................................38
Analysis and findings 3: marketing strategy........................................................................41
Analysis and findings 4: technology factor..........................................................................43
5.0 Recommendation & Conclusion........................................................................................46
Bibliography.............................................................................................................................47
Appendices...............................................................................................................................48
Questionnaire........................................................................................................................48

TABLE OF FIGURES
Figure 1: Organization Development Chart...........................................................................................................15
Figure 2: Organizational chart of Lee Soon Seng Plastic Industries Sdn. Bhd......................................................18
Figure 3: RESEARCH MODEL OF STUDY........................................................................................................26
TABLE OF TABLES
Table 1: Gantt Chart for Time Horizon..................................................................................................................32

1. INTRODUCTION
Globalization with the advent of technological up-gradation has led to cross-border trade and
commerce. Manufacturing units are facing increasing demands in line with the capability of
companies to expand and distribute their products in neighboring as well as other countries.
The most integral factor affecting manufacturing units globally is ways to increase their
productivity. Companies across south-east Asia have emerged to be a manufacturing hub
supplying finished products to many countries around the world. To increase productivity in
manufacturing units, companies need to ensure that their human resources, as well as,
machinery is performing assigned jobs efficiently. High rates of productivity can lead to
increased profitability of the company and also increase throughput without having to
sacrifice on quality. Most literature and scientific advancements on productivity reflect that
areas that need changing to increase productivity include people, processes and equipment
and technology.
The Malaysian plastic market has been estimated to be registering the CAGE with a hike of 6
percent in their total forecasted period. The plastic has been typically been organic and is
made from high-end polymer with high molecular mass. The polymer is made with other
components as well. The market consist of synthetic plastic and most of them are developed
with commonly derived materials of petrochemical. The market has various kind of arrays
which consists of variants which are made from renewable materials, such as polylactic acid,
derived from corn or cellulosic extracted from cotton linters.
The current scope of research analyses ways to enhance productivity in Lee Soon Seng
Plastic Industries Sdn Bhd. This research makes use of primary data collection and analysis
techniques to arrive at findings related to ways in which productivity can be enhanced within
the industry.

1.1 BACKGROUND OF THE STUDY
In the traditional market of the plastic industry in Malaysia, polyethylene has been
dominating the market severely. At present, polyethylene has been becoming one of the
primary keys to sustaining the daily life of human beings (Rüßmann et al, 2015, p 54). Most
of the utensils and components used are composed more or less with polyethylene. The sector
primarily has established its dominance in the packaging sector, like bottles and containers,
bags made of plastics, plastic films and also geomembranes. The types include HDPE and
LDPE as well.
The plastic packaging industry has been experiencing exponential growth in the industry. In
recent years, the manufacturing company has been outgrowing its production rate to meet the
increase in demand. With the increase in production rate, the packaging organization has
increased its demands of high-density polyethylene.
The use of HDPE for making plastic pipes in buildings has also provided a leading growth in
the market for the manufacturing of plastics. This provides insight into the growing
infrastructure of Malaysian sectors. The growth of plastic industries has been forecasted to be
trenching to high levels in the upcoming periods.
The accounts of plastic growth have been one of the largest applications of the segments in
the market have been claiming to be the largest in the market. One of the prime reasons for
producing the sector to grow their application in the plastics industry, the packaging segments
have been making better wear and providing better chemical resistance and also remolding
their structure. The polyamide is also making another major plastic that major applications in
the packaging sectors. Hence, the industry has been making progress with the development of
the plastics industry. However, there would be needed to make for developing the market.

1.2 PROBLEM STATEMENT
Lee Soon Seng Plastic Industries Sdn Bhd has been one of the prominent plastic packaging
organization. The organization has also been manufacturing food plastic packaging along
with thermoforming and disposal packaging. However, the organization has been facing
some issues with their productivity. The productivity index of the organization has lowered
due to the poor product quality, skill factor, marketing strategy, and technology factor. The
product quality has been affected due to the old design of the products, the poor product
procedures, and quality conformance. There have been improper labor training to the recruits,
professional workers have somewhat contributed not accordingly to the production factors set
by the apex level management and poor knowledge of the market has also affected the
production. The authorities in the apex level management have made some poor judgment
while promoting the product in the market, which in turn has taken a toll on the pricing of the
product as well (Fritsch, and Changoluisa, 2017, p 250). The machinery of the organization
has also contributed to the poor production report. The old machinery in the organization
have lost their prime efficiency and thus have defecated the market for the organization. The
old management system has also contributed to making some prime contributions to poor
productivity in the organization.
1.3 RESEARCH AIM
The research would aim to improve the productivity of Lee Soon Seng Plastic Industries Sdn
Bhd.

1.4 RESEARCH OBJECTIVES
The research objectives are –
● To determine the factors which could improve the productivity in Lee Soon Seng
Plastic Industries Sdn Bhd.
● To determine the influence of product quality for improving productivity.
● To understand the skill factors which could improve productivity.
● To investigate the market strategy contributing to the increase in productivity.
● To analyze the technology factor of Lee Soon Seng Plastic Industries Sdn Bhd.
1.5 RESEARCH QUESTIONS
● What are the factors that could increase the productivity in Lee Soon Seng Plastic
Industries?
● What are the factors affecting product quality?
● How to analyze the factors governing the skill factors of productivity?
● What is the marketing strategy needed for improving productivity?

● What are the possible upgrades in the technological factor which could help in
increasing productivity?
1.6 RESEARCH VARIABLES AND HYPOTHESIS
In the current study, the dependent variable for the study is to improve productivity in Lee
Soon Seng Plastic Industries Sdn Bhd. The independent variables that were explored in the
study were a technological factor, product quality, skills factor, and marketing strategy.
The hypothesis for the study is as follows;
H0: The independent variables technological factor, product quality, marketing strategy, and
skills factors, does not have an impact on the dependent variable improve productivity in Lee
Soon Seng Plastic Industries Sdn Bhd
H1: The independent variables technological factor, product quality, marketing strategy, and
skills factors, does have an impact on the dependent variable improve productivity in Lee
Soon Seng Plastic Industries Sdn Bhd
1.7 SUMMARY AND CONCLUSION
Globalization with the advent of technological up-gradation has led to cross-border trade and
commerce. Manufacturing units are facing increasing demands in line with the capability of
companies to expand and distribute their products in neighboring as well as other countries.
The current scope of research analyses ways to enhance productivity in Lee Soon Seng
Plastic Industries Sdn Bhd. This research makes use of primary data collection and analysis
techniques to arrive at findings related to ways in which productivity can be enhanced within
the industry. The research would aim to improve the productivity of Lee Soon Seng Plastic
Industries Sdn Bhd.

2. ORGANIZATION BACKGROUND
2.1 INTRODUCTION
Malaysia has emerged as a manufacturing hub for various products during recent times.
There is an increasing number of factories and industries set up at the various location in
Malaysia due to easy access to resources, cheap human labor availability and easy
accessibility to ports. Malaysia has become one of the most successful countries in Southeast
Asia owing to its continuous robust growth. Though a middle-income country, its continuous
development has been guided by the government, hence the economy is gradually opening
and advancing towards innovative technological adaptations. The highly ambitious
government in Malaysia focuses on making it a high-income country till 2020 aiming at
modernization backed up by a concrete economic plan. Its economy has been currently
pushed towards high value-added industries and services swaying focus from the country's
natural resources, for enhancing the wellbeing of its people. Malaysia is currently acting as a
pillar of Southeast Asia's manufacturing by expanding upon its key advantage that includes
highly proficient in the English population and an attractive regulatory, as well as fiscal
environment with low taxes, serves as a hub for many countries in Southeast Asia. The

country offers second-highest connectivity in Southeast Asia just behind Singapore, offering
characteristics that enable the rapid development of businesses and commerce in the region.
Lee Soon Seng Plastic Industries Sdn Bhd is one of the leading plastic industry set up in the
region that manufactures and supplies finished plastic products to Malaysia as well as to other
parts of South-East Asia at a competitive rate. The industry is expanding at a rapid rate and
including more innovative products within its product chain. The diversity in the industry has
impacted productivity to some extent which in turn has decreased the profitability of the
company in comparison to competing industries. Hence this section analyses relevant details
regarding the industry to understand the relevant aspects which can enhance productivity in
the industry.
2.2 ORGANISATION HISTORY & BACKGROUND
Lee Soon Seng formerly is a leading name in the disposable food packaging industry in South
East Asia. Its products comprise of tray blister, clamshell, lunch box and many more but with
an environmentally responsible production approach. The industry manufactures an extensive
range of over 1000 standardized products and also offers custom molding of exclusive
designs manufactured at low costs. The industry conducts each process of manufacturing of
its finished products in its site. This implies the industry designs the product from concept,
from making pertinent tools till producing it, making the artwork in it and decorating it is
undertaken within the same industry. The industry has been into existence for the past 33
years and has been growing ever since with a range of innovative products and bringing into
the market the most innovative product range. All the products manufactured in the industry
are designed with consistent quality and with attractive features within budget. LSS had been
listed on the Kuala Lumpur Stock Exchange in the year 2008 as SCGM Berhad.

The figure below depicts the history of the industry in a brief format.

Figure 1: Organization Development Chart
Source: LSS, 2018
The industry was founded by Dato Sri' Lee Hock Seng along with his brother Dato Sri' Lee
Hock chai, Dato Sri' Lee Hock Guan and Mr. Lee Hock Meng in the year 1984. The company
was initially established as a small shop with 8 employees and 2 semi-auto vacuum forming
machines. In the year 1992, the company shifted into a new factory of 130,000 sq feet of land

with a built-up area of 15,000 sq feet. In the year 1996, the company expanded its existing
facilities further expanding to about 40,000 sq feet build-up area. In 2003, the company
expanded its facility to 260,000 sq ft land and build-up of 85,000 sq ft area. In 2004 it
intensified manufacturing of extruding HIPS and PP plastic sheet and catering to the
international market. In 2006, it extended its facilities further to 170,000 sq ft build-up area
and including extruding PET plastic sheet. Finally, in 2008 it listed in Kuala Lumpur Stock
Exchange (KLSE) on 28th February and LSSPI became fully owned by SCGM Berhad. In
2009, the industry expanded its facilities to 390,000 sq ft land and build-up area of 180,000
sq ft. In the year 2013, the industries started producing Polylactic Acid PLA plastic sheet,
which is an environmentally friendly plastic manufactured 100% from the plant. In 2014
'Hygienic' PP disposable cups manufacturing was started. It was processed wholly from resin
and packing was undertaken in a fully automated control room. In 2017 the industries started
manufacturing Tamper-Evident food box containers, which were strong, durable, transparent
and perfectly suited to food safety. It also is currently manufacturing crystal clear PET cups
for better visibility, Co-Extrusion for bi-colour PET sheets for presentable food box designs.
2.3 ORGANISATION MISSION & VISION STATEMENT
The organization's mission statement is quality assurance, with a strong emphasis on product
quality.
The organization's vision statement is to expand its business in the entire world and cater to
quality standards.
2.4 QUALITY PRACTICES

The organization faces a strong emphasis on every product quality. The industry incorporates
various strict quality practices at various production process points for ensuring appropriate
standards in quality. From the starting point of receiving raw materials and semi-raw
materials until the delivery of end products to customers, with stringent checks for the highest
possible quality standards. In case of detection of any non-conformance to quality process
then such processes are recorded and references are taken for the formation of new products.
The industry strictly adheres to the quality requirements of the MS ISO 9001:2000 and
HACCP certifications. The organization further upgraded its quality certifications to the MS
ISO 9001:2000 in 2003. It received its HACCP certification in 2007. The industry also sends
its food packaging material for testing to other external authorities for ensuring the safe
quality of its products. External agencies where the industry sends its products for testing
include SIRIM QAS International Sdn Bhd, ALS Tennichem (S) Pte Ltd and Analytical
Laboratories (S)Pte Ltd in Singapore.
2.5 ORGANISATION AWARD
The organization has many awards for its quality conformance and capability in meeting
environmental standards. Some of the awards that the organization has won over the past few
days are ISO 9001:2008, ISO 22000:2005, GMP award – Good Manufacturing Practice,
HACCP award for Hazard Analysis and Critical Control Point, and FSSC – Food Safety
System Certification 22000. These are some of the most prestigious awards won by the
company and leading ones, that are needed in the industry.
2.6 ORGANISATION CHART

The organization is headed by the Managing Director, MD below whom Chief Executive
Office, CEO heads the organization. The CEO heads the Chief Operating Officer, COO,
Chief Financial Officer, CFO, Vice President (VP) Marketing, Vice President (VP)
Engineering, VP of IT and VP Sales. Headed by each Chief Officers and VP are the
individual departments of the organization as depicted in the figure below.
Figure 2: Organizational chart of Lee Soon Seng Plastic Industries Sdn. Bhd.
Source: Author
MD
COO
Director of
Operations
Director of
Production
CFO
Controller
VP Marketing
Search
Marketing
Manager
Brand Manager
Email Marketing
Manager
VP Engineering
Programmer
Programmer
Programmer
Programmer
VP of IT
Systems
Administrator
VP of Sales
Account
Executive
Sales Executive
Sales Personnel
CEO

2.7 PRODUCT
The industry manufactures a range of products in different categories. The products
manufactured by the company mostly are those where food can be stored. In the bakery
category, the industry manufactures over 79 different items. In its catering product category,
it manufactures over 44 different kinds of products, in co-color clamshell, it has over 3
products in offer. In its cup category, the industry manufactures over 27 different products, in
EGG category, the industry manufactures 22 different product categories. In its festival
category products, it produces 22 different products. In the fiesta category, it produces over
28 products. In the food tray, it has over 30 versatile products. Fruit and vegetable containers
include 58 different types of products. The full month category product has 9 different
products. In its Indo Delight range, it has 9 different products. The lunch box has over 45
different products. In its medical product category with 5 varied products. In its Mooncake
products, it has over 31 varied categories. Oceania Delight includes 55 product categories.
OPS-Bakery has 27 different product categories. OPS-Catering has products over 20
categories and OPS-Fiesta has products over 31 categories. Sealing Tray has products over 8
different categories spread. Sushi has products over 18 different product categories. Tamper
Proof has products over 21 categories. Each product category has a particular match to food
products and is catered to specific companies that are in food manufacturing.
2.8 SERVICE
The industry's core focus is on supplying the various product categories to different
customers. Its key services include supplying various completed products, quality checked.
Its services include catering to the needs of its various customers in the food business and

deliver it to their company warehouses. Its quality check processes at the various step of
product manufacturing from raw materials till finished products ensure delivery of the highest
quality products to end customers.
2.9 COMPANY CULTURE
The company’s culture has been inherited from its founding member Dato Sr’ Lee Hock Seng
and his brother Dato Sri' Lee Hock Chai, Dato Sri' Lee Hock Guan and Mr. Lee Hock Meng.
The key components of the company culture are defined by the environment within which
employees work. The element of the company's culture is a variety of elements of work
environment, values, ethics, company mission, expectations, and goals. This company
follows a hierarchy culture where everything in the company follows process and procedure.
Leaders in the company facilitate and monitor how business is to be done in the company.
The company has its own sets of rules and guidelines that need to be abided by. Costs of the
business and its mistakes are kept under control by abiding by the rules and guidelines of the
business. The hierarchy or the organizational structure determines control over the
organization and its departments. Strategies are developed by the upper-level management of
the company and then implemented below by their departments.
2.10 CORE VALUE
The core values of the organization are embedded in its value statement. There are 5 core
values upon which the organization performs. The first value is for customers that aim at
securing and maintaining customer's trust and satisfaction by providing the highest quality in
products and excellent customer service. Its 2nd value is focussed for its consumers – such

that they can improve standards of living and modern lifestyle through its offering of
consumer user-friendly and economic packaging. Its 3rd core value is focused on the
environment – such that it can provide environmentally friendly products. Its 4th value is
focused on its employees such that a harmonious build-up of the family working culture can
be developed (Brandt, Van Biesebroeck, and Zhang, 2012, p 351). The company provides
adequate training and developmental opportunities such that they can be promoted within the
organization. Its last value is focused on its group that aims at innovativeness and product as
well as service improvisation. This value aims at building up of reputation of the brand and to
remain profitable in business.
2.11 FINANCIAL HIGHLIGHT
The company's financial statement reveals that the profits for the latest financial year ending
30 April 2018 unappropriated was at RM4,663,146. Its corporate governance report reveals
that the company has raised shares by way of private placement (FT, 2020). It has also
proposed a bonus issue of warrants. The companies revenue is MYR 215.52 million and net
income is negative 1.60 million. Year on year the net income of the company fell from the
gain of 16.39 million to a loss of 5.12 million (SCGM Bhd, 2018). Despite the increase in
revenues from 207.42 million to 219.57 million. An increase in the cost of goods sold as a
percentage of sales increased from 81.20% to 88.95%.
2.12 COMPANY OBJECTIVE
The company’s core objective is focused on its various objectives. The objectives of the
company are as stated below;

o Objective 1: To be able to deliver quality assured products to customers and
consumer satisfaction through quality products
o Objective 2: To provide employees appropriate culture, training, and opportunities
for development
o Objective 3: To be able to deliver an environmentally friendly product
2.13 HEALTH, SAFETY & ENVIRONMENT (COMPANY POLICY)
The company policy focuses on the health and safety of employees and to provide an
environment that is conducive to working. The company adheres to the Malaysian
government's HSE (health, safety and environmental) policy. The company is committed to
operate and comply with the necessary laws and regulations, also applying applicable
standards and procedures wherever necessary, to implement regulation compliance. To
implement a safe workplace, the company takes reasonable and practicable steps to prevent
and reduce risks of injuries, damages to properties and health hazards. The company strives
towards the conservation of the environment. HSE applied to its resource and engagement is
undertaken by communicating with key stakeholders on relevant and crucial HSE matters.
The company aims to adopt best practices in its facility design, building and operation of its
products that are manufactured and services have are given. To cater to emergencies taking
place within the organization, there are contingency plans in place that deals with to recover
from emergencies. It notifies all stakeholder groups of emergencies taking place and deals
with them as per the procedure. The company also adopts continuous improvisation in the
HSE performance and management through the leveraging process, people and technology.
The company abides by its lines of responsibility to its employees, suppliers, and contractors
to adhere to policies at all times and applies HSE as a responsibility of everyone.

2.14 MARKETING STRATEGY
The current marketing strategy adopted by the company is such that it can communicate to all
its consumers regarding the benefits of its products. Through its marketing strategy, the
company also communicates regarding its brand equity and brand management. Types of the
marketing strategy adopted by the company include mainly relationship marketing. The
company already has an existing relationship with a large number of companies in and
around Malaysia, through relationship marketing the company's marketing executives get
referrals which are further added as consumers to the company (Baumers, Dickens, Tuck, and
Hague, 2016, p 200). Word of mouth marketing is another form of marketing that is adopted
by the company. Brand equity of the company is further enhanced by word of mouth
marketing because the quality of products supplied by the company is easily promoted
through word of mouth to other consumers. The company is mostly dependent still on the
traditional modes and marketing methods and has not yet made the transition into
contemporary marketing styles such as internet marketing or social media marketing forms.
2.15 SUMMARY / CONCLUSION
Lee Soon Seng formerly is a leading name in the disposable food packaging industry in South
East Asia. Its products comprise of tray blister, clamshell, lunch box and many more but with
an environmentally responsible production approach. The industry has been into existence for
the past 33 years and has been growing ever since with a range of innovative products and
bringing into the market the most innovative product range. All the products manufactured in
the industry are designed with consistent quality and with attractive features within budget.

LSS had been listed on the Kuala Lumpur Stock Exchange in the year 2008 as SCGM
Berhad. The organization is headed by the Managing Director, MD below whom Chief
Executive Office, CEO heads the organization. The CEO heads the Chief Operating Officer,
COO, Chief Financial Officer, CFO, Vice President (VP) Marketing, Vice President (VP)
Engineering, VP of IT and VP Sales. Headed by each Chief Officers and VP are the
individual departments of the organization. The company has a hierarchical type of
organizational culture. It manufactures varied types of plastic containers and products
depending on the demands of its consumers. The industry's core focus is on supplying the
various product categories to different customers. Its key services include supplying various
completed products, quality checked. The company abides by the HSE policies of the
Malaysian government. It makes use of traditional marketing strategies to market products of
the company.

3.0 RESEARCH OBJECTIVES
3.1 MAIN RESEARCH OBJECTIVES
 To determine factors that could improve productivity in Lee Soon Seng
Plastic Industries Sdn Bhd
The industry has not been operating on profitability in recent times. Therefore, it is necessary
to determine the factors that possess the capability to enhance overall productivity within the
company. To improvise productivity, there are four factors recognized such as technological
factors, product quality, marketing strategy and skills factors of employees. While all the
products of the company have been operating on the machinery and plant set up within the
industry for quite some time, old machinery is gradually becoming ineffective. The old pieces
of machinery consume greater power, man-hours and also not technologically upgraded to
function on their own. This is causing delays in production shifts, loss of time in man-hours
to produce particular products, less production, hence the company needs to plan and upgrade
its machinery to cope with these challenges.
Product quality is another aspect that requires significant amounts of improvisation. While
the products manufactured within the company undergoes regular quality checks, they lack
conformance to design and product procedures. Newly upgraded technologies support
checking the quality of newly made designs and checking their conformance to quality
standards. The company to compete in the market needs to adopt standardized quality
checking processes such as Six Sigma, such that all its products can be monitored regularly

and they can conform to the best standards of quality in the industry. Marketing strategy is
another segment that the company needs to improvise upon in a significant manner. The
company is currently dependent upon the traditional marketing initiatives, however, to
improvise its productivity and increase its marketing outreach, the company needs to adopt a
contemporary marketing approach. The company needs to adopt appropriate promotional,
pricing strategies and offer campaigns to sell and promote some of its exclusive items. Lastly,
the skill factor in the company matters the most, which will enable to increase productivity
within the company. The current skill of its employees can be enhanced utilizing training its
employees. Enhancing the knowledge of the workers might also allow enhancing the
productivity of the company. Most importantly the company needs to recruit professional
workers who can attain targets and goals given by the organization.

Figure 3: RESEARCH MODEL OF THE STUDY
Source: Author
3.2 SPECIFIC RESEARCH OBJECTIVES
3.2.1 TO DETERMINE THE INFLUENCE OF PRODUCT
QUALITY TO IMPROVE PRODUCTIVITY IN LEE
SOON SENG PLASTIC INDUSTRIES SDN BHD
The company main output consists of products of various types. Product quality is the most
crucial aspect of output that can lead to achieving customer satisfaction. Increasing

competition in Malaysia and across the global market indicates that productivity does not
only indicates efficiency but also effectiveness. To be profitable, a company needs to judge
its productivity and value from the customer's perspective, not from the engineer. Thus, in
case the company plans to deliver products as per customer expectations, it needs to achieve
greater productivity, market share and hence profitability. It is essential to determine the
influence that product quality has on improving productivity at the company.
3.2.2 TO DETERMINE THE INFLUENCE OF SKILLS
FACTOR TO IMPROVE PRODUCTIVITY IN LEE SOON
SENG PLASTIC INDUSTRIES SDN BHD
The skill factor of workers and employees has a significant influence on improvising
productivity in the company. Productivity is the relation between output and input, these
inputs consist of materials and labor hours that are put into the work process for attaining a
certain quantity and quality of output. To increase productivity, one part of the relationship
has to be changed. Enhancing productivity implies either reducing the number of materials
and labor into the processes or enhancing the level of output for the same quantity that is
input. Enhancing skill factor to improve productivity, can bring about significant
improvement.
3.2.3 TO DETERMINE THE INFLUENCE OF MARKETING
STRATEGY TO IMPROVE PRODUCTIVITY IN LEE
SOON SENG PLASTIC INDUSTRIES SDN BHD

Accommodating contemporary marketing techniques and strategies can assist in getting
various outcomes for the company. Marketing strategies can enable enhancing the brand
name of the company and attract additional customers towards the business of the company.
A contemporary marketing strategy can assist the company to get customers from outside
Malaysia as well. With an enhanced marketing strategy, productivity at the company can be
increased.
3.2.4 TO DETERMINE THE INFLUENCE OF TECHNOLOGY
FACTOR TO IMPROVE PRODUCTIVITY IN LEE SOON
SENG PLASTIC INDUSTRIES SDN BHD
Technological factors can enhance the overall effectiveness of operation at the organization.
With the adaptation of new technology, work can be done at a faster pace and with more
efficiency. This can assist in increasing the overall productivity of the company.
3.3 BENEFIT TO THE COMPANY
Improve productivity will grow up the motivation, competitive advantage, firm
performance and bring more revenue to Lee Soon Seng Plastic Industries Sdn Bhd
There are innumerable types of benefits arising by increasing the productivity of the
company. Improvising productivity of the company will enable to grow of motivation as well
as the competitive advantage of the company. It will lead to increasing the company's
performance. Increasing the performance of the company will enable enhancing revenue of
the company and lead to sustainability for the business.

3.4 RESEARCH METHODOLOGY
To conduct any study, it is integral to ascertain the research methodology. A research
methodology explains the way this study has been conducted to evaluate the readability and
validity of the research. In this study, the research problem has been evaluated utilizing
quantitative methods. Quantitative methods of conducting a study are considered best to
describe, interpret, and gaining in-depth knowledge regarding the phenomenon that is taking
place. The study was undertaken by the use of a questionnaire that was provided to
employees and customers. The questionnaire was designed considering the problem of the
study and taking into consideration the various research questions that the study aimed at
answering. The questionnaire was circulated amongst employees and customers and they
were asked to provide their input which was then analyzed to arrive at the findings of the
study.
3.5 RESEARCH PROCESS
The research was conducted by the scholar by first analyzing the problem of the study in
detail. After analysis of the research problem and questions of the research, the scholar went
through several company examples where a similar problem was being faced. Then a
questionnaire (attached in Appendix) was developed. This questionnaire was developed
based on the research questions ascertained at the beginning of the study. Then a letter was
designed that included aims of the study and the contribution this study could make on the
company. Then the scholar collected emails of employees and customers of the company and
sent them across the letter along with the questionnaire. The emails were collected by the
scholar by calling upon a meeting that stated the aims and the purpose the research was

taking place. This meeting took place at the coffee shop of the industry and aimed at getting
as many participants from employees and customers as possible. There was also attached an
ethical form and a consent form that participants of the study had to sign. The scholar aimed
at giving a certificate of participation to all those persons who wished to take part and
contribute to the study.
3.6 RESEARCH PHILOSOPHY
Research philosophy is the belief regarding how data has been gathered regarding the scope
of the study, then analyzed and used. Four main types of research philosophies are used by
scholars, positivists research philosophy, interpretivism research philosophy, realistic
research philosophy, and pragmatic research philosophy. For the scope of this study
positivists research philosophy has been used. As per this philosophy, the social world is
understood objectively. According to this philosophy, the scholar adheres to the view that
factual knowledge regarding increasing productivity at the company can be gained by
observation along with trustworthy measurements. However, this philosophy is limited to
data collection and interpretation objectively.
3.7 RESEARCH APPROACH
The research approach is the plan encompassing the broad assumption of the detailed data
collection method, analysis, and interpretation. The research approach here has been
ascertained based on the research problem that has been addressed here. The research
approach that has been utilized for this study is mostly quantitative. Participants of the study
were asked to indicate their answers with yes or no, which were then collected and analyzed.

This approach of collecting data for the study will ascertain and establish the factors that have
been ascertained to be crucial components of increasing productivity at the company.
Quantitative data collection enables arriving at the results of the study in a more definite
manner. A quantitative research approach eventually translates into statistical analysis to
make a connection between the known and what can be learned concerning a study. The data
analysis approach undertaken in this study is deductive. The deductive approach makes use of
consistent methodology, methods, and analysis to arrive at the findings of the study, hence to
arrive at the findings of the study. The data collected have been analyzed using statistical
methods using IBM SPSS software.
3.8 RESEARCH STRATEGY
The research strategy includes a step-by-step plan of action that provides direction to
thoughts and efforts to conduct the research. In the current research, the scholar has made use
of a quantitative research strategy to arrive at the results and findings of the study. A
quantitative research strategy enabled looking at numerical data which has been analyzed by
the use of statistics.
3.9 TIME HORIZON
This study has taken a considerable amount of time, such that the research could be planned
and undertaken. The Gantt Chart below depicts the time horizon that was required to conduct
this study.
Table 1: Gantt Chart for Time Horizon
Action Heads Days

1st
month
2nd
month
3rd
month
5th
month
6th
mont
h
7th
month
8th
mont
h
9th
month
Topic Research
Introduction
Company
Information
Research
Ascertaining
Research
Methodology
Data Collection
Data Analysis
Writing down
Findings and
Results
Determining
suitable
recommendations
Source: Author
3.10 DATA COLLECTION
For conducting this study, it was necessary to collect data for the same. For this research data
was collected from employees working at the company, employees who had worked at the
company and also consumers of the company. A questionnaire was prepared to take into
consideration all the factors that were considered to be integral for analysis in this study and
then it was circulated amongst the anticipated participants such that they could provide
valuable input regarding the same. The employees currently working and past employees, as
well as consumers of the company totaling to 200, were called. These people were briefed
regarding the aims and objectives of the study. They were also told regarding the research
problem that was being studied in this research. Post 15 minutes of the briefing at the coffee
shop located at the company, these participants were handed a form. They were told that to

provide their email addresses in that form such that the questionnaire can be sent across to
them such that they can take part in the study. Out of the total 200 people present there, only
100 responses were received with proper email addresses. Out of the 100, email addresses
received, almost 30 emails bounced back due to technical errors. Hence 70 emails were
successfully sent across to willing participants.
The email included a consent form that willing participants had to sign, the questionnaire and
ethical form highlighting ethics of the university that was followed in this study. Out of the
70 forms, almost 50 responses were received, out of which 5 questionnaires were incomplete
hence had to be rejected. 2 of the responses did not have consent forms signed and 3 of the
responses were rejected as the email was received from an unknown email address. A total of
40 responses was collected to conduct this study.
3.11 RESEARCH INSTRUMENT
Out of the several research instruments available, the scholar found it best to use a
questionnaire for the study. While the questionnaire can be close-ended and open-ended in
nature, the scholar purposely selected a close-ended questionnaire such that the hypothesis of
the study can be appropriately established. These questionnaires along with the cover letter
were circulated using email.
3.12 SAMPLES
The sample for the study was collected from employees and consumers of the company. A
total sample for the study was ascertained to be 200.

3.13 SAMPLE SIZE AND SAMPLING TECHNIQUE
The sample size ascertained for this study was 200. The sampling technique for this study is a
random stratified sampling technique. A simple stratified sampling method enabled collecting
data from a variety of people and to have different types of samples.
3.14 ETHICAL ISSUES
The study aimed at abiding by all the ethical issues as obtained by the university. The
following are some the ethical concerns addressed in this study;
 Personal details of all participants will be kept secured and not disclosed in the study.
Only their views will be used in this study to arrive at the findings of the study.
 The scholar will only use the response from those participants, who have not
expressed their consent in the study.
 The scholar will not make use of force of any to obtain participation from anyone.
3.15 SUMMARY AND CONCLUSION
A research methodology explains the way this study has been conducted to evaluate the
readability and validity of the research. In this study, the research problem has been evaluated
utilizing quantitative methods. Quantitative methods of conducting a study are considered
best to describe, interpret, and gaining in-depth knowledge regarding the phenomenon that is
taking place. The questionnaire was circulated amongst employees and customers and they
were asked to provide their input which was then analyzed to arrive at the findings of the

study. The research was conducted by the scholar by first analyzing the problem of the study
in detail. After analysis of the research problem and questions of the research, the scholar
went through several company examples where a similar problem was being faced. The
scholar aimed at giving a certificate of participation to all those persons who wished to take
part and contribute to the study. Out of the several research instruments available, the scholar
found it best to use a questionnaire for the study. While the questionnaire can be close-ended
and open-ended in nature, the scholar purposely selected a close-ended questionnaire such
that the hypothesis of the study can be appropriately established. These questionnaires along
with the cover letter were circulated using email.
4.0 DATA ANALYSIS & FINDING
This research has been conducted on employees and consumers of the company to arrive at
findings and established a particular hypothesis of the study. Post SPSS analysis of data
collected by circulating questionnaire, the results of the study has been obtained. The results
of the study have been analyzed one by one as given below.

ANALYSIS AND FINDINGS 1: PRODUCT QUALITY
1. Question 1 of the questionnaire aimed at understanding whether the company
provides customized designed products. The answer obtained from the participant of
the study indicated that the company sometimes does provide customized products
and sometimes does not. This enabled ascertaining that the company sometimes
provides made- to- order products and sometimes provides standardized products to
its customers.
Lee Soon Seng Plastic Industries Sdn Bhd provides customize design product
Frequency Percent
Valid
Percent
Cumulativ
e Percent
Valid NO 20 50.0 50.0 50.0
YES 20 50.0 50.0 100.0
Total 40 100.0 100.0

2. Question 2 aimed at understanding if the products of the company were made using
standard production procedures. Answers to this question revealed that almost 77.5%
of respondents stated the company provided standard products. Only 22.5% feel that
the products did not have standard production procedures.
Lee Soon Seng Plastic Industries Sdn Bhd products have standard product
procedures
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid NO 9 22.5 22.5 22.5
YES 31 77.5 77.5 100.0
Total 40 100.0 100.0
3. Question 3 aimed at ascertaining whether the company had control over the product
quality conformance. The result of this analysis reveals that 50% of people felt that
the company had conformance with quality standards whereas the other 50% felt non-
conformance to product quality.

ANALYSIS AND FINDINGS 2: SKILL FACTOR
4. Question 4 of the study aimed at understanding if the company provided monthly
training to its labors. To this question, almost 50% of respondents revealed yes with
50% stating no. This implies that a large number of laborers did receive monthly
training for their jobs.
Lee Soon Seng Plastic Industries Sdn Bhd provides monthly labor training
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid NO 20 50.0 50.0 50.0
YES 20 50.0 50.0 100.0
Total 40 100.0 100.0
5. Question 5 concerned whether the workers of the company were professional. The
response received was that almost 77.5% of them indicated yes whereas only 22.5%
indicated no. This implied that most of the workers within the company were
professional workers.
Lee Soon Seng Plastic Industries Sdn Bhd workers are professional workers
Frequency Percent Valid Cumulative

Percent Percent
Valid NO 9 22.5 22.5 22.5
YES 31 77.5 77.5 100.0
Total 40 100.0 100.0
6. Question 6 aimed at asking in the company workers possessed industry-related
knowledge. To this question, almost 87.5% revealed that the workers did possess
knowledge that was related to the industry. Only 12.5% stated that the workers did not
possess knowledge relative to the industry.
Lee Soon Seng Plastic Industries Sdn Bhd workers have related industry knowledge
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid NO 5 12.5 12.5 12.5
YES 35 87.5 87.5 100.0
Total 40 100.0 100.0

ANALYSIS AND FINDINGS 3: MARKETING STRATEGY
7. Analyzing the marketing strategy of the company, in question 6 it was asked to the
participants if the company provides quarterly clear stock promotions. Answer to this
question revealed that almost 85% indicating yes, which implies that the company
offered stock clearing promotions.
Lee Soon Seng Plastic Industries Sdn Bhd provides quarterly clear stocks promotion
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid NO 6 15.0 15.0 15.0
YES 34 85.0 85.0 100.0
Total 40 100.0 100.0

8. Question 8 asked the participants if the company provided the best pricing to its
distributors. To this answer, almost 57.5% indicated no. This reflects that the
company does not focus on its pricing strategy that it provides to its distributors.
Lee Soon Seng Plastic Industries Sdn Bhd provides the best pricing to distributors
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid NO 23 57.5 57.5 57.5
YES 17 42.5 42.5 100.0
Total 40 100.0 100.0
9. In this question, it was asked if the company provides a monthly offer campaign for
its exclusive items. While the company is into manufacturing a range of varied items
and exclusive as well, this answer had 55% positive with a 45% negative response.
This implied that the company often did provide and sometimes did not provide any
offer campaign.
Lee Soon Seng Plastic Industries Sdn Bhd provides monthly offer campaign for
exclusive items
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid NO 18 45.0 45.0 45.0
YES 22 55.0 55.0 100.0
Total 40 100.0 100.0

ANALYSIS AND FINDINGS 4: TECHNOLOGY FACTOR
10. This question aimed at understanding if upgrading machines is an integral aspect to
improvise productivity at the company. The answer to this question was quite
ambiguous as 55% indicated no and 45% indicating yes.
Upgrade machine is one of the important elements that can improve productivity in
Lee Soong Seng Plastic Industries Sdn Bhd
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid NO 22 55.0 55.0 55.0
YES 18 45.0 45.0 100.0
Total 40 100.0 100.0

11. When participants of the study were asked if the upgrading system was an important
component of improving productivity at the company almost 75% indicated yes.
Hence it is felt that the company uses a rather outdated system and its current system
needs an up-gradation.
Upgrade system is one of the important elements that can improve productivity in Lee
Soon Seng Plastic Industries Sdn Bhd
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid NO 10 25.0 25.0 25.0
YES 30 75.0 75.0 100.0
Total 40 100.0 100.0
12. When participants of the study were asked if the simplified procedure for workers
factored in enhanced productivity of the company 52.5% of respondents said no and
the rest indicated yes. Thus, it can be understood that there was no requirement for
simplifying the procedure for workers at the company.

Simplified procedures for workers is one of the important elements that can improve
productivity in Lee Soon Seng Plastic Industries Sdn Bhd
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid NO 21 52.5 52.5 52.5
YES 19 47.5 47.5 100.0
Total 40 100.0 100.0

5.0 RECOMMENDATION & CONCLUSION
For large businesses improving productivity is at the core of their sustenance. It concerns
bringing about major changes and transformations such that the profitability and viability of
the business can be attained. Developing productivity includes undertaking improvement
measures within the current systems and making people more effective over some time.
Certain recommendations that the business can adopt to increase its productivity are;
 Product Quality: The company needs to improvise upon its product quality. The
company needs to include more standardized control procedures that can lead to
conformation to product features. This will also enhance its product acceptance in the
market and enhance core competency. Skill Factor: The company needs to include monthly training for its laborers. This
will assist in increasing productivity and professionalism with which the laborers
work. Marketing Strategy: LSS needs to include a pricing strategy to retain and attract its
distributors. While it does have some promotional campaigns, yet having special
pricing for distributors will help increase the overall business of the company. Technology Factor: The company needs to adopt an upgraded system at par with
industry standards which can enable it to outperform in the market. With outdated
systems, the company cannot extend its core competency or competitive advantages.
 Lastly, the company needs to adopt certain Key Performance Indicator (KPI) scores
such that it can match its productivity with those of industry standards. This will
enable the company to sustain its leadership position in the market.
LSS is a highly competitive company with large investments. Enhancing its productivity will
assist in spreading its products and services more. Adopting the above recommendations will
allow the company to increase its productivity and meet the challenges it is currently facing.

BIBLIOGRAPHY
Baumers, M., Dickens, P., Tuck, C. and Hague, R., 2016. The cost of additive manufacturing:
machine productivity, economies of scale and technology-push. Technological forecasting
and social change, 102, pp.193-201.
Brandt, L., Van Biesebroeck, J. and Zhang, Y., 2012. Creative accounting or creative
destruction? Firm-level productivity growth in Chinese manufacturing. Journal of
development economics, 97(2), pp.339-351.
Fritsch, M. and Changoluisa, J., 2017. New business formation and the productivity of
manufacturing incumbents: Effects and mechanisms. Journal of Business Venturing, 32(3),
pp.237-259.
FT Group, 2020. About the Company. SCGM Bhd. Accessed from
<https://markets.ft.com/data/equities/tearsheet/profile?s=SCGM:KLS>
LSS, 2018. Company Profile. Lee Soon Seng Plastic Industries Sdn. Bhd. Accessed from
<https://plastictray.com.my/profile/>
Rüßmann, M., Lorenz, M., Gerbert, P., Waldner, M., Justus, J., Engel, P. and Harnisch, M.,
2015. Industry 4.0: The future of productivity and growth in manufacturing
industries. Boston Consulting Group, 9(1), pp.54-89.
SCGM Bhd, 2018. Corporate Governance Report. Lee Soon Seng Plastic Industries Sdn
Bhd. Accessed from
<https://www.malaysiastock.biz/GetReport.aspx?file=AR/2018/8/21/7247%20-
%201039511383408.pdf&name=Part2_SCGM_Annual_Report_2018.pdf>

APPENDICES
QUESTIONNAIRE
Product Quality
Q1: Lee Soon Seng Plastic Industries Sdn Bhd provides customize design product
Yes No
Q2: Lee Soon Seng Plastic Industries Sdn Bhd products have standard product procedures

Yes No
Q3: Lee Soon Seng Plastic Industries Sdn Bhd control the product quality conformance
Yes No

2.0 Skills Factor
Q4: Lee Soon Seng Plastic Industries Sdn Bhd provides monthly labour training
Yes No
Q5: Lee Soon Seng Plastic Industries Sdn Bhd workers are professional workers
Yes No
Q6: Lee Soon Seng Plastic Industries Sdn Bhd workers have related industry knowledge
Yes No

3.0 Marketing Strategy
Q7: Lee Soon Seng Plastic Industries Sdn Bhd provides quarterly clear stocks promotion
Yes No
Q8: Lee Soon Seng Plastic Industries Sdn Bhd provides best pricing to distributors
Yes No
Q9: Lee Soon Seng Plastic Industries Sdn Bhd provides monthly offer campaign for
exclusive items
Yes No

4.0 Technology Factor
Q10: Upgrade machine is one of the important elements that can improve productivity in Lee
Soong Seng Plastic Industries Sdn Bhd
Yes No
Q11: Upgrade system is one of the important elements that can improve productivity in Lee
Soon Seng Plastic Industries Sdn Bhd
Yes No
Q12: Simplified procedures for workers is one of the important elements that can improve
productivity in Lee Soon Seng Plastic Industries Sdn Bhd
Yes No