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 27 certified Black Belts (BB) and 462 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, 632 LSS projects have been completed and produced financial benefits.
RM 126 million
FY16/17: Targeted savings
RM 91.28 million
FY15/16 actual savings
RM194.31 million
Cumulative savings since FY 2012/13
Green Belts Trained executives
Have been successfully certified as Black Belts
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
  • Managers, Executives
  • Data Driven Continuous
  • Improvement Programme
Lean Events "work-out"
  • All Employees
  • Team Base Improvement
Kaizen “waste elimination”
  • All Employees
  • Individual Base Improvement

Sime Darby Plantation FY15/16 LSS Financial Benefits
Sime Darby Plantation FY14/15 LSS Financial Benefits
In FY2015/16, Sime Darby Plantation has exceeded the cumulative target benefits by 63% as of June 2016. Total cumulative savings to date stretching from first year of the LSS Business Management Strategy (BMS) implementation (FY 2012/13) is RM194.31 million; far exceeding our cumulative target of RM119 million for FY 15/16.

Out of the RM 91.28 million benefits or savings achieved from LSS implementation in FY 2015/16, Plantation Procurement & Plantation Downstream turned out to be the biggest contributor for the Plantation Division totalling RM 67.53 million in savings or 74% from overall contribution.

Procurement related improvements have consistently delivered more than 40% from the total savings for the last 3 years. These improvements were largely attributed by standardising and leveraging the volume of common items via multiple sourcing initiatives. On top of that, our downstream has successfully delivered sustainable results with cumulative benefits of RM 98.48 million (with average of 25 million/year) since the deployment of LSS Business Management Strategy. The main focus in downstream’ s improvement initiative is to improve the efficiency and optimizing the cost in operation, thereby improve the overall business profitability.

As for the Plantation Upstream, the LSS Deployment was more challenging due to different working culture and mentality. However the deployment strategy was tweaked to adapt with the situation by starting with the 5S Implementations in Estates & Mills and War on Waste (Wow 1.0 ) campaign’s promotion. The total LSS Benefits for Plantation Upstream for FY2015/16 also shows encouraging increment compared to previous years with an official record of RM 2.90 Mil as of June 2016, 3.17% out of the total LSS Harvested Benefits for Sime Darby Plantation.

Distribution Percentage From Plantation Division
Distribution Percentage From Plantation Division

5S Achievement for Plantation Division

Certification Estate Mill Downstream R&D
Malaysia 12 4 - -

For the financial year of 2015/2016, a total of 16 operating units within the Plantation Division in Malaysia has been recognized by Plantation Sustainability Quality Management (PSQM) Internal 5S Certification auditors. 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 126 million total benefits for FY 2016/2017, our focus has now been expanded from Downstream and Procurement, to also include  opportunities at our Upstream operations and other Support Services. Our training programmes have increased with the targeted number of 100 Green Belt (GB) trained personnel from Upstream, Downstream and various supporting operations. The number of certified Black Belt (BB) personnel are also targeted to increase by 12 at the end of FY 2016/2017. In ensuring that LSS becomes pervasive at all levels and a part of the business strategies, yearly LSS Maturity Index Assessment will be conducted at operations/ business units to identify gaps and future opportunities in LSS deployment.
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