Glitters: Dynacraft Sdn Bhd

Tuesday, March 11, 2008

Dynacraft Sdn Bhd

Background

Dynacraft Industries was originally set up in 1974 as a subsidiary of an USA, based multinational company, providing semiconductor lead frame and semiconductor materials support to IC assembly plants in the Pacific region. In January 1996, Dynacraft Industries was acquired by Malaysia Pacific Industries and became part of the Hong Leong Group of companies in Malaysia.

Being one of the largest manufacturers of a wide range of semiconductor lead frames, Dynacraft Industries leads the industry in the design, manufacture and supply of microelectronics packaging solutions to the semiconductor assembly industry. Adopting technology-driven design and manufacturing processes, Dynacraft Industries is confidently poised to provide our valued customers with state of the art products at competitive prices and services.

Key policies

Quality – committed to comply with our Quality Management System and any applicable requirement in order to uphold the following principles through teamwork:

To meet or exceed our customers’ requirement and expectations
To continually improve our processes, services and systems.
To gauge our performance by constantly monitoring our quality indicator.

Environmental – committed to good and responsible work practices in our processes that will help to preserve our environment from pollution through:

§ Conserving resources within and outside our premises.

§ Acts to comply with all legal and replacing legislations and other requirement that we subscribe to.

§ Reducing, reusing, recycling and replacing consumables used in our manufacturing processes.

§ Employing continual improvement philosophy to meet our environmental objectives and targets.

T.P.M – Dynacraft Industries is committed to TPM as an approach to achieve our vision. This will be accomplished through continual improvement that encompasses the participation by all employees to :

§ Encourage equipment ownership through teams

§ Optimize asset utilization

§ Enhance employee safety and job satisfaction

§ Improve product quality, cost and delivery

§ Work towards zero defect

Customer service – committed to proactively:

§ Create positive impression

§ Understand customers’ needs

§ Deliver value

§ Make it easy to do business with us

Operation

1) Quality control - Dynacraft manufactures lead frames that conform to the standards of JEDEC and EIAJ package outlines such as MQFP, PLCC, SOIC, MDIP, TQFP, TSSOP, TSOP, SSOP, SOT, MLP (QFN) and CERDIP. We use Statistical Process Control (SPC) to monitor manufacturing operations. These SPC tools are continually maintained and updated by Statistical Engineers in ensuring consistent quality through the organization.

2) Design Engineering - Our CAD/CAM network transmits design data to anywhere in the world, connecting:

Our valuable customers to Dynacraft design centers, manufacturing sites and sales team Dynacraft to the supplier / business partner.
Dynacraft's experienced engineering team:

§ Take hands on approach to customer service and support.

§ They analyze objective through open communications.

§ They seek and identify potential need.

§ They form a company-customer team to design the process for individualized packing solutions for clear and continuous feedback.

3) Manufacturing - Dynacraft holds various patents for process design. Our multinational manufacturing is based in Penang, Malaysia. We build partnerships with training institutions to upgrade the knowledge of employees on an on-going basis to keep our processes at the peak of performance. Every aspect of our manufacturing is reviewed continuously. We are ISO / TS 16949 certified, affirming our commitment to manufacturing and service excellence.

4) Tooling - Dynacraft lead frame stamping are fabricated with full-carbide cutting components. To minimize the cost of tooling additional pad sizes, many of our tools are built in modular format. Options for grounding, down bonding and thermal improvement can be added easily. One of our core competencies is customized tool building. In the direction of provide high volume output, tight dimensional tolerances, and consistent accuracy and precision, the tool of design must emphasize high speed and multiple formats. Also our component clearances are minimized for optimum cutting definition. Our CAD generates electronic instructions to profile grinding, jig boring and wire EDM machines for accuracy automated component fabrication.

5) Stamping - Operations for precision stamping of lead frames for ceramic and plastic packages are located in Penang, Malaysia locations. Exclusive use of Bruderer punch presses in continuous 24-hour operation ensures optimum manufacturing and product quality at high speeds. The stamp a large range of products from alloy 42 to copper alloys, discrete to high pin count QFPs and CERDIP frames. To meet the challenges of higher pin counts and more complex matrix designs the factory enhances the average press tonnage.

6) Etching - Dynacraft's Penang plant uses the highest technology artwork and semiconductor grade plates (mask) to ensure high precision, accuracy and repeatability products. Besides, our expose machine is also fully automated and self alignment for top and bottom mask. The state of art reel to reel process minimizes handling problem and enhance productivity.

7) Plating and Finishing - Our standard plating process is silver in spots, rings, or dots. They are the leader in nickel-palladium pre-plated lead frame to save our customers cycle time, floor space, and added costs. In our plant, the factory uses both the reel-to-reel method, for quick turns at maximum volume and maximum speed, and the strip-to-strip method, for quick turnaround, and small lots. They are able of plating the highest pin counts on the market. Our tolerances are measured in millionths of an inch. Statistical Process Control (SPC) ensures the ultimate in conformance and repeatability

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Solution Model in a brief...

During in completing our project we had made an appointment to the manager of Dynacraft Sdn Bhd to identify the problem that they had facing in regards of corporate social responsibility specifically in green accounting system perspective. From our observation, we have found that this organization is facing two major problems in those areas. First problem is lack of human resources and second is lack of financial resources. Lack of human resources is derived from the human resource department that consists of many aspects in order to implement the green accounting systems on their organization. Second problem is about lack of financial resources which it is to be the major problem in implementing the green accounting system in CSR perspectives.

Our solution model is started from the observation of the organization that we chose and followed by identifying those problems that come out in our observation. After all had identified, we had decided to find the resources that might suitable with our topic and problems. Before that, to make those things cleared we had made an appointment with Dr. Azlan Amran to know more about our topics because he is one of the lecturers that have specialization on Corporate Social Responsibility. We had discussed on so many areas and what the exactly Green accounting system means. Finally, he was advised us to use and review the articles that relate with green accounting system which is Accounting for the environment. Besides sources from Dr. Azlan Amran, we had search other sources that related with our project from the library search, magazine, newspapers and other network that might help us to make the literature review. After literature review process done, we are looking at developing the theoretical framework that might the organization should think of.

Theoretical framework is begins with independent variables and dependent variable. Independent variable that we would like to suggest is cost, knowledge and skills or experiences that may linked with dependent variable which is green accounting system had implemented. Financial and human resources are closely related and those are the hallmarks to fulfill the green accounting system on their organization. For instance, in operation department, to avoid any discrepancies of the input that is processes to be output, the personnel of the operation department are responsible to ensure their quality can be increased, wastage can be reduced and at the same time the optimal cost can be implemented. They must have some capabilities to run through the machine and there is a supervisor to supervise the employee during the operation is running. To gain those capabilities and knowledge, the organization should invest some money to send their employees to have some training on each functional so that they are capable to perform their jobs suits with the organization needs.

After theoretical framework has been developed, we had selected one of the channels that appropriate with our project which we are doing an interview to understand what the problems are. Even though, the problems have been identified but we want to looking at narrow areas which is the interview is the best channel to fulfill the purpose. From our visit at Dynacraft Sdn Bhd we had interviewed their human resource manager and head of accounting department to understand more about the problems that they had facing. Besides these two upper levels of management, we had also interviewed their employees to know more about the problems from lower level views. These are the problems that fall under human resource department that we had gathered from our interviewing process which are; incentive and base wage not appropriate with their function in organization, randomly in recruitment processes, no or less supervision from experienced employees in order to reduce the reject item, no or less rotation process within their employees. Meanwhile, there are so many problems that falls under financial resources because it becomes the major problems that they had faced. To reduce the reject rate in order to upgrade the machineries system is quite expensive. Besides, the proposal to acquire the bank loan is not strong enough consequently the capital of the organization is not sufficient to do the corporate social responsibility activities. Organization also doesn’t have enough funds to increase their salaries and incentives in order to motivate their employees to perform their jobs better and better.

After all data has been collected, we are trying to develop the appropriate solution(s) for Dynacraft Sdn Bhd so that the green accounting systems can be practices. Below are recommendations that we suggested to them in order to fulfill the green accounting systems in CSR perspectives:

Human Resources
-Recruitment process should be based on their background education and their experiences appropriately with their function in organization. Do the interview processes before hiring them
-Send the selected employees to go for the training under training schemes to enhance their capabilities and knowledge in regards of their jobs specification.
-Give their employees’ higher annual base wage however it depends on their current performance. Besides give them incentives for reducing the reject rate also a bonus to increase their performances.
-Create a policy for the development of employees performance especially in operation department which is they can enforced the rotation system so that their energy also cost can be used in optimal usage. Besides that rotation purpose is to enhance their focus during the operation is running.
-To increase the motivation of their employees performances, Dynacraft Sdn Bhd should give them some achievement in annual dinner so that they are can be motivated by that kind of gratitude ceremony.

Financial Resources
-To reduce the cost incurred, Dynacraft should implement the recycle system so that their elimination or tools cannot be wasting just like that. In order to execute this system, the information of it must be disseminating within the organization so that they are always aware to recycle all materials that can be recycled.
-To be responsible to their internal and external party, they should disclose all financial statements so that all components in that financial statements will be disclose in a true and fair view. To their shareholders, dividend is given by the profit that they earned on that year and to their stakeholders all information in regards of financial should be published and disclosed equally.

In addition, we had suggested to Dynacraft to implement the lean system that really suits with their current condition. Under lean system management, Dynacraft should develop the lean supplier networks which focus to producing low-cost products that have the high functionality and quality the end customers’ product. The primary advantages of these networks are their flexibility and responsiveness compared to vertically integrate mass producers. However sources from a lean supplier network also provides three major advantages. Firstly is a product linkage, deals with the enhanced ability of the core firms to access new technology and other innovations and incorporate them rapidly into their products. To affiliate with green accounting system, this advantage is useful for the end user and becomes important during the operational processes. To develop new products with new innovations, they have to implement the product linkage to fulfill the green accounting environment with minimal cost. Second are knowledge linkages, deals with the enhanced access to embedded knowledge within the network. It’s difficult to transfer the knowledge however Dynacraft can outsource their competencies or capabilities in order to minimize the cost and quality of their product could become higher because of integrated with their associated in specific areas. Finally is process linkages deal with the way the network can become more efficient by cooperatively focusing on ways to reduce the cost. These should be the important aspects that Dynacraft should think of in order to fulfill and solve their problem in regard of financial resources. How to enhanced and establish their networks so that all sources can be used and implement in efficient and effective way. Moreover lean system is very useful to them in developing the green accounting system in their company so that goals of corporate social responsibility can be achieved.

As a conclusion, after all we have made we are really hoped that Dynacraft could develop their green accounting system on their organization. All recommendations we have suggested are really useful for Dynacraft in order to implement the element of corporate social responsibilities into their organization.

Glitters

Tuesday, March 11, 2008

Dynacraft Sdn Bhd

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22 February 2008

Solution Model

Theoretical Framework

Solution Model in a brief...