Sustainability

Lean Six Sigma & Continuous Improvement

We believe that the utilisation of continuous improvement methodology such as Lean Six Sigma (LSS) is a mutually-beneficial situation for the organisation and the environment as it addresses the issue of wastage of valuable resources; thus reducing cost, time, and negative effects to the environment.
We have 17 certified Black Belts (BB) and 348 trained Green Belts (GB) to date with a majority coming from our downstream operations. Projects driven by our BB’s and GB’s are managed, reported and tracked through our Sustainability Management System (SMS) which is an online monitoring and management system for ESH, LSS and Carbon management related matters. Since July 2012, 226 LSS projects have been completed and produced financial benefits.
RM 32 million
FY14/15: Targeted savings
RM42.42 million
in actual savings
RM103.24 million
Cumulative savings since FY 2012/13
348
Trained executives
17
Have been successfully certified as Black Belts
5
Being externally certified by the American Society for Quality (ASQ) & 1 from Amelior (Belgium)

LSS Approach In Sime Darby
LSS Approach In Sime Darby
Six Sigma
FOCUS GROUP
  • Managers, Executives
  • Data Driven Continuous
  • Improvement Programme
Lean Events "work-out"
FOCUS GROUP
  • All Employees
  • Team Base Improvement
Kaizen “waste elimination”
FOCUS GROUP
  • All Employees
  • Individual Base Improvement

Sime Darby Plantation FY14/15 LSS Financial Benefits
Sime Darby Plantation FY14/15 LSS Financial Benefits
In FY2014/15, Sime Darby Plantation as we exceeded our RM32 million target by 33% or a total of RM42.42 million in savings. Total cumulative savings to date stretching from first year of the LSS Blueprint implementation (FY 2012/13) is RM103.24 million; far exceeding our cumulative target of RM56 million for FY 14/15.

Out of the RM 42.42 million benefits or savings achieved from LSS implementation in FY 2014/15, Procurement department turned out to be the biggest contributor for the Plantation Division totalling RM 21.17 million in savings or 50% from overall contribution. This was due to their LSS implementation of massive restructuring in contracts and negotiations that brought down the company’s resources and material costs to a much lower level. The next biggest contributor was from the Downstream operating units or refineries, with a 47% contribution or RM 19.97 Million. Upstream Malaysia also contributed with RM 1.29 Million, in their first year of the Green Belt roll-out after 2 years of familiarizing with 5S and other Lean Six Sigma foundation and concepts.

Distribution Percentage From Plantation Division
Distribution Percentage From Plantation Division

5S Achievement for Plantation Division


Certification Estate Mill Downstream No. of BU's
External (MPC) 12 9 - 21
Internal (PSQM) 9 3 1 13

For the financial year of 2014/2015, a total of 34 operating units within the plantation division has been recognized by PSQM and Malaysian Productivity Corporation (MPC). The effort given by all the operating unit has translated to GREATER ORGANIZE, EFFICIENCE & DISCIPLINE employees of Sime Darby. We hope that more operating units will implement 5S initiatives and gets the benefit from it.

Future Plans
With our target set for RM 63 million total savings for FY 2015/16, our focus has shifted from downstream and Procurement to our upstream operations and R&D. Our training programmes have increased with the targeted number of trained GB’s of 60 from upstream operations and R&D. Number of certified BB are also set to increase by 17 at end of FY 2015/16. We also plan to further the commitment of the trained GB and certified BB by introducing LSS related KPI and implementing Reward and Recognition Program.
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