Ais for PROTON

7/31/2019 Ais for PROTON

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[Exploring the Information Systems in an Organization] PROTON HOLDINGS BERH

Group Three Project Three

Content

1. Task requirement 2

2. Objective 3

3. Corporate profile 4

4. Company organization history 6

5. Problems that the IS tries to solve 8

6. Whole IS in the organization 9

7. Integration with other IS system in the organization 11

8. Specific IS system exploration 12

9. Benefit the IS had bring to the organization 15

10.Reflection 16

Group 3 Project 3 - Management Information Technology (MTD1013) 1


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1. Task requirement

Group Project 3: Exploring the Information Systems in an Organization

Description: The MIT is better studied in the actual environment. From here, students are able

to relate and integrate the knowledge that you have learn so far and see the MIT in first hand

encounter. There are many concept and term that you have came across in our class. Now, in

order to better understand it, you are required to explore those organization that you choose

from and study in details the IS function in it.

Task: You are required to study the IS in any organization, government or private, and come

up with a details report on it. In your report, you need to describe the overall IS that runs in that

particular organization. Then, specifically, focus down to only one IS i.e. ERP, or CRM, AIS

etc, and describe in details of its:

Objective

Problems that the IS tries to solve

Functions

Integration with other IS system in the organization

Benefit the IS had bring to the organization (i.e. ROI - Return On Investment,

productivity etc)

Acquisition process

Implementation

Lastly, relate back what you have learn from your case study to the overall objective of your

MIT subject. Your report need to be not more than 20 pages long, including appendix and

references.

Presentation: Prepare a presentation on what you have discovered and present it to the

classroom using the format above. Your presentation should take between 30-40 minutes.



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2. Objective

Based on the task requirement, the MIT subject requires the students to do some research on

the Information System (IS) that have been used in the real life organization. Students have to

explore the overall IS system which have been implemented by the organization that have been

chosen by the students. Since organization implemented a bunch of IS systems to operate their

daily routine, the students have to study on one of the specific system used by the organization

so that they can have a full understanding towards the organization operation throughout the

production process. So this task is mainly focusing on achieving the result based on the

categories below:

A. Management

Allowing the students to be able to

1. Deal and experience the corporate bureaucracy during the process of getting

through the organization

2. Co-operate on the delegation of the task

3. Completing the task with time consuming

B. Knowledge

Allowing the students to be able to

1. Relate and experience the theories that have been learned in the class with

the actual process and procedure that happen in the real life organization

2. Compare and contrast the real need of the IS system in the real world

3. Experience the actual IS fields in the organization and see the potential in

upcoming opportunity and job



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3. Corporate profile and location

Based on the task, this project have chose that Proton Holdings Berhad as the organization

which will be studied and explore. It has been the largest automotive brand in Southeast Asia.

For decades, Proton has strived to distinguish PROTON from others by reflecting the quality

and persevering in perfecting the brand and product design, in order to become a global

automotive player. Below is the well-known Proton Holdings Berhad assorted logo.

However since the evolvement of the Proton Holdings Berhad, they have change their logo

throughout the years. Below are the transformation of Proton logo.



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Protons factory is situated in Industrial Area HICOM , Batu Tiga, Shah Alam which had

opened on 9 Julai 1985 and launched by the Prime Minister YAB Tun. Dr. Mahathir bin

Mohamad. After 20 years of operation, Proton has launched another factory at Tanjung Malim,

Perak which has been launched by Dato Seri Abdullah Ahmad Badawi. On 2 Ogos 2008,

Proton has celebrated a 3 million cars production.



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4. Company organization history

Perusahan Otomobil Nasional Berhad (PROTON) was incorporated in May 7, 1983 to

manufacture, assemble and sell motor vehicles and related products, including accessories,

spare parts and other components. PROTON produced Malaysia's first car, the Proton Saga,

commercially launched on July 9, 1985 by then Malaysian Prime Minister, Dato' Seri Mahathir

Mohamed, who had originally conceived the idea of a Malaysian car.

Proton Saga Launching on 9 Julai 1985



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Its model line-up includes the Waja, Satria GTi, Wira, Iswara, Arena, Perdana V6 and

Juara. The range of 1.3, 1.5, 1.6, 1.8 and 2.0 litre engines satisfies a wide spectrum of

customers both locally and abroad. PROTON's main plant in Shah Alam, with an area of 923

900 sq metres, was originally designed for a capacity of 80 000 units per year. In 1997,

capacity increased to 230 000 units per year with the construction of the Medium Volume

Factory, which is next to the Main Plant. Today, the Shah Alam factory is capable of producing

240 000 vehicles per year.

Besides being shareholders, Mitsubishi Corporation and Mitsubishi Motors Corporation are

also PROTON's technical assistance partner and component supplier. PROTON has a total of

11 subsidiaries and 11 associate companies, which are involved in manufacturing, research and

development, sales and service activities.

December 30, 1996, marked the launch of the Proton Putra, a two-door coupe, as well the

production of our millionth car from the Shah Alam plant. PROTON made a major step in

upgrading its engineering capabilities with the acquisition of Lotus Group International

Limited, a British automotive engineering company and manufacturer of luxury sports cars in

October 1996. Together, PROTON and Lotus offer large scale manufacturing capabilities with

world-class engineering expertise.

PROTON cars are making their mark internationally as competitive and innovative

automobiles. They are now being exported to 50 countries including the highly competitive

United Kingdom and continental European markets. With concerted and unswerving

commitment from customers, business associates, shareholders, government agencies, and

employees, PROTON is realising its goal of being an internationally successful Malaysian

automotive manufacturer. It is achieving this by being customer oriented and by producing

competitively priced and innovative products. Thus, it is contributing to Malaysia's attainment

of Vision 2020.



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With solid base built up over the last 10 years, Malaysia's car manufacturing industry is

progressing vigorously.

5. Problems that the IS tries to solve

In order to gain information about the systems that Proton used, a meeting with Senior

Information Manager of Proton Holding Berhad, Mr. Azahari Othman has been held on 1st of

April 2011 at Proton Casting Plant situated in Glenmarie, Shah Alam. Before we go further,

Proton have 3 branches to operate the productivity. One is situated in Hicom, Shah Alam

which is the biggest Proton factory and act as the main head of all operation involve in Proton

Holdings Berhad. The second one, is located at Glenmarie, Shah Alam which is focusing more

on casting plant and have a main Business IT division that operate for the whole Proton

corporation. The last one is situated in Tanjung Malim which is called Proton City because it in

house major production process of Proton productivity.

So, according to Mr Azahari, Proton Holding Berhad used SAP system or System

Application Programming to connect and operate any operation involve in the company.

Proton used this system because it acts as one of the business suite solution that compromise

and integrate with all other system either in management or production area. Overall about

SAP system will be explained further on part 6.

Since SAP is the main system used in Proton, it helps the company in four major ways. The

four major ways is a below:

1. Financial

2. Human Capital Management

3. Operation

4. Corporate Services



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6. Whole IS in the organization

Since Proton Holdings Berhad is the most establish company in Malaysia, they have used and

own also the most establish IS systems to be operate successfully throughout the evolvement of

the company within this 25 years. Proton has been used SAP IS systems in whole developing

and production process.

Before we look closer to SAP system, Proton has its own policy towards the system used.

Based on the interviewee, in order to have the system to operate, the program must be in

MySQL language. Even though Proton is a big production company, they still choose to use

MySQL language because it is an open source program and it is cheaper compared to Oracle

which is licensed and expensive. Another things about Proton is that previously most of the

Proton system involve UNIX operation system but now they are moving forward in using the

Microsoft operation system.

Since Proton is a large corporation, they also have three data center to support the capacity

of the data and each act as backup data center for the other. This data center is situated in Shah

Alam, Tanjung Malim and OUE. This data center has 1 high-end server that integrates with 7

servers. Previously, Proton only has 3 servers to operate but due to high demand in the

production process they bought another 4 server.

Through all this 25 years of evolvement, Proton has used 3 systems which are INTRA, .net

and SAP. SAP in a new implemented system in Proton which have been currently operate for 3

to 4 years. This system is used in order to replace the INTRA and .net systems that have been

used for about 5 to 6 years and not sufficient enough to meet the latest technology. Besides this

big operational system, Proton allows each division in the company to have their own system

but still they have to integrate it with the SAP system. This is due to the needs and

requirements involve in each division. Any new created project will have their own division to

run. However, Proton still provide or allow some system to be created internally by the IS

division. In order to do this, the proposal has to be submitted to the Procurement Council so



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that they have their budget either to outsourcing it or made internally. Members of the council

are include the board of directors and senior IT management.

Now let us look at the SAP system used by Proton Holdings Berhad. SAP or System

Application Programming is a German global software corporation that provides enterprise

software applications and support to businesses of all sizes globally. Headquartered in

Walldorf, Germany, with regional offices around the world, SAP is the largest enterprise

software company in the world (as of 2009). It is the world-leading provider of business

solutions & operates in Kuala Lumpur since 1992. It is also the largest software company in

Europe and the fourth largest globally. The company's best known products are its SAP

Enterprise Resource Planning (SAP ERP) and SAP Business Objects software. Besides Proton,

Petronas Company also use this system to manage their productivity and this German company

has over 500 clients that use SAP system in Malaysia.

As for this project we are focusing in SAP Enterprise Resource Planning (SAP ERP) only.

Proton uses this SAP ERP because it manages 4 major components such as:

Money

Material

Manufacturing

Machines

Despite these components, Proton chooses SAP ERP that function towards below criteria:

Finance

Material

Quality

Maintainence and HR

Production



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So based on Proton Holdings Berhad demands above, they have been used several SAP

system such as below:

1. Customer Relationship Management (CRM)

2. Enterprise Resource Planning (ERP)

3. Product Lifecycle Management (PLM)

4. Supply Chain Management (SCM)

5. Supplier Relationship Management (SRM)

7. Integration with other IS system in the organization

Based on the picture above, we can see the integration within the IS system owned by Proton.

Since Proton mainly used the SAP system. From here, we can see that the main SAP system

which is situated in Shah Alam has to be integrate the result or data wih the SAP from Casting



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Plant department which situated at Glenmarie, Shah Alam and also combine with the SAP

system at Tanjung Malim. This structure shows to us how the integration happens in the

company using SAP PI. The yellow boxes are the systems that operate to produce the specific

focus.

8. Specific IS system exploration

Now based on the project, we are going to focus on SAP PI which means that we are focusing

on SAP Process Integration system. SAP using PI, allow the system to

Enabling Application-to-Application Processes

Enabling Business-to-Business Processes

Business Process Management

Enabling Enterprise Services

According to Proton, They used this SAP PI to integrate throughout the process and the

system in all Proton devision. (See the diagram below)



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Purpose

With the usage type PI, Proton can integrate applications from one or multiple systems. SAP

differentiates between the following areas:

Cross-system application integration, which does not focus on individual end-user actions.

Applications can be company-internal, cross-company, SAP or non-SAP applications. The

SAP NetWeaver usage type PI incorporates all functions that were previously a part of

SAP Exchange Infrastructure (SAP XI).

The modeling, administration, and automation of user-driven processes within SAP systems.

From a technical viewpoint, a core function of the runtime is that you can save the state of

a previously-modeled process and call it up at a later stage, if the process is to be continued

as a result of a particular action or event. Since the execution of processes can be useful

when integrating applications across system boundaries (without user actions), relevant



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functions within SAP NetWeaver are reused for this purpose. Together, the functions

referred to here are known as Business Process Management.

However, the diagram below, will show how Proton have the integration within the SAP PIsystem. So based on this diagram, Proton can make sure the flow of data and the

production that happen in the whole system.



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9. Benefit the IS had bring to the organization

According to Mr. Azahari, the Senior Manager IT in Proton Holdings Berhad, SAP is a proven

process and has been used internally or world-wide. Besides that it has a shorter time of

development for either a ready-made system and customizes system because some of the

system is ready made by the German company. He also said that SAP system have never been

corrupted in the entire runtime process compare to other supporting system that used to be

corrupted due to the lack of maintaining.

SAP system is also used because of its high effectiveness in reporting tools. Previously

Proton used Crystal Report Tools to generate the report but this tool only generates report but

dont have any input data area process. Meanwhile, the SAP system provides the input data

area and at the same time generates the report. It is also have the best support system and

provide the support and backup all the time for the Proton.

Besides the main SAP system , Proton also use SAP ERP. The advantage that Proton

choose SAP ERP is because:

SAP is a powerful tool that integrate multiple business processes and functions into

one comprehensive system

SAP reduces lack of integration across business line which will raise the risk of

duplication, mistakes and inconsistency data

SAP provides different approach than their competitors in market. Each piece

(module like FI, MM, SD) can operate independently from all other software. And the

key benefit of using this approach is that companies can implement individual module

that fits the company needs, and have the flexibility to add other module later when

their business grows.



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10. Reflection

After completing the task on the Proton Holdings Berhad, we have learned and obtained such

valuable experienced in managing the Information Technology. As far as we know, we are able

to face have the difficulties in facing the bureaucracy when trying to deal the meeting and the

appointment with the Senior Manager IT in the company. The hardness is to get through the

right person and have his permission to do the task. Another things is that we have to wait for

about one hour before the interview session started.

Another thing that we learned through this task is that we are able to see the real information

technology management involve in each company. We are also now realized how important

this division in developing the company. In Proton, we are very surprised to see that the whole

floor of Casting Plant Factory in Glenmarie is focusing and working on Enterprise Resource

Planning process. So by the look of the size of the building and the numbers of staff that some

are having discussion (meeting in small room) and others are busy focusing on the computer in

front of them, we come to realized that this division is more important as we ever thought. This

experienced gives us inspiration to move on to this ongoing field.



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11. Appendixes

Our visit to Proton Casting Plant at Glenmarie Shah Alam



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The Slides Presentation


Ais for PROTON

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