The Malaysia Automotive Institute (MAI) and Proton Enter into a MoU for Vendor Development - Proton CEO Names Underperforming Vendors During the Event

The Malaysia Automotive Institute (MAI), an agency under the Ministry of International Trade and Industry (MITI), and PROTON yesterday entered into a Memorandum of Understanding (MoU) of which will further optimise shared resources between them which will be applied in developing PROTON’s parts and components suppliers (i.e their suppliers and vendors for their car's parts). This is to ensure they are able to meet global standards in all aspects from cost to efficiency.

The MoU between MAI and PROTON is the first time both parties have actually officially agreed on an actual working collaboration. What this will offer is a closer working relationship between the government and the private sector in improving the national carmaker in terms of vendor skill, knowledge and productivity. This arrangement will allow vendors to utilise research & development facilities operated by MAI and PROTON and allow the vendors to improve their knowledge and capabilities in advanced design applications, digital process simulation and improved validation technology. 

PROTON’s existing R&D centre, as well as the MAI-initiated design and validation technology centres will allow various Malaysian vendors to optimise their human capital, business and technology development through MAI’s supplier excellence programmes which are readily available for implementation. MAI and PROTON have stated that they will customise these programmes for the business and technological needs of PROTON and its supply chain.

At the event, held at PROTON's Centre of Excellence in Shah Alam. The event also had a pledge ceremony by the some of PROTON's vendors who signed a pledge to ensure that they will commit to giving the best in terms of cost, product and efficiency. 

Dr. Li Chunrong, CEO of PROTON also gave a short presentation on how his management team intends to change PROTON and make it climb up the ranks in the Malaysian automotive sales ranking and also reach a target of becoming number 3 in ASEAN region in terms of sales.

It was interesting as PROTON has put emphasis on Product, People and basically efficiency in terms of production and cost. A good product is always something that customers want and it is also people that supply parts and build the product in the first place. So right now, PROTON wants their vendors to improve in leaps and bounds. Working with MAI is just a part of the larger picture so he also basically named and shamed a whole lot of vendors who have been underperforming in a big way. 

I think it had to happen. By displaying the names of the vendors who had underperformed it is akin to public caning (as mentioned by another journalist to me). It is! But it is something that is needed to be done as I do believe the management team needs these vendors to have a wake up call. If you look at the list above you will see that some cannot even supply half of the required volume of parts. 

The new PROTON is braver actually. There seem to be more spirit from them and they seem to be no longer under the influence of others. It is quite clear that they are shaking the tree at its roots. I mean, the parts suppliers are the key to the production of a Proton vehicle. If they are slow in delivering parts, the production line will come to a halt. If they supply bad parts, customers will end up complaining. Vendors are a start of the whole process and PROTON knows this. 

So even if a good product is key, a good product must be made with quality parts which are delivered on-time by efficient and knowledgeable vendors and suppliers. These vendors are people, with feelings obviously, but sometimes these were also people that took advantage of their position and it now had to change in order to make PROTON great again. This is also why this group of vendors attended the event and signed the pledge mentioned above.

Interesting times for PROTON. Yes, I've said that again. 

L to R:  Y. Bhg. Datin K. Talagavathi., Deputy Secretary-General (Industry) of the Ministry of International Trade and Industry (MITI),  Dato' Madani Sahari, CEO of Malaysia Automotive Institute , Dr Li Chunrong, Chief Executive Officer of PROTON,  YBhg Dato’ Radzaif Mohamed, Deputy Chief Executive Officer of PROTON