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 It investigates the impact of factors such as old product designs, inadequate employee training, and outdated machinery on productivity levels.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.