SunnyJaya Plastic Industries Sdn Bhd was established on 27th April 1999 and it transition from a partnership established in 1992 by 2 brothers, Ong Teng Lye and Ong Teng Ngo which are the laminitiss of the company. The rule activities of SunnyJaya Plastic Industries Sdn Bhd is treating and recycling of fictile bit or the fictile wastes.

The chief merchandises of company are PPO ( FR ) , POM, which is polyoxymethylene, a common plastic polymer, in other word SunnyJaya a Plastic Industries Sdn Bhd produce fictile natural stuff, industrial merchandise which they merely supply for other company for usage of production procedure.

The key to drive company success is the experient managers and direction. Directors and direction squad members of the company have been the function participant in fictile recycling industry more than a decennary. In fact, the experient and adept employee has leaded the company to increase the competence in the industry. Beside this, SunnyJaya Plastic Industries Sdn Bhd meet the demand of ISO 9001: 2000 and ISO 14001: 2004 in 2006.

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Furthermore, SunnyJaya Plastic Industries Sdn Bhd had aim to set up as a maker that able to supply a good quality of recycle plastic with a favourable and competitory monetary value to derive larger market portions in local market. Therefore, over the old ages, the SunnyJaya Plastic Sdn Bhd has expanded and focused its concern in export-oriented market. The Company ‘s patronage base spread over China, Taiwan, Korea, Hong Kong, Indonesia, Singapore, Philippine, Thailand and Sri Lanka.

Today, SunnyJaya Plastic Industries Sdn Bhd is one of the taking makers who export recycled fictile rosin in Malaysia.

Mission of SunnyJaya Plastic Sdn Bhd is to systematically and continually pull off the quality outlooks, invention tendencies, client satisfaction and people development. The visions of the company are to be in the fore-front in the industry and supply of universe category recycling of plastic rosins and quality services and to offer competitory monetary value without forfeit the quality of the merchandises ( Sunnyjaya Industries Sdn Bhd Profile, 2012 ) .

2.0 Production/ Operation Processes

Table 1: The Production Processes of Sunnyjaya Plastic Industries Sdn Bhd

Table 1 refers to the production procedure of company, at the get downing Sunnyjaya Plastic Industries Sdn Bhd purchase fictile garbages from providers as their natural stuff. Example of plastic bit collected by company such as auto ‘s rejected parts, plastic bottles and etc. After company collected fictile wastes or garbages, they will hold Quality Control ( QC ) review on the stuffs they had collected, in order to do certain that all stuffs are pure in plastic and no others mixture on it. If there is some mixture on the plastic bit, they will direct it back to provider.

Repacking is the undermentioned measure after QC review on natural stuffs. Company will repack all the fictile garbages or natural stuffs that passed in QC review phase in package. After repacking all the stuffs, company will maintain packages of stuff to hive away country for natural stuff of Sunnyjaya Plastic Industries Sdn Bhd. Company store the natural stuffs is to forestall deficit on natural stuffs and give support on stuff supplied to production section.

For the following phase of procedure which is issue to production. Production section acquire the support on natural stuff and start to bring forth merchandises to bring forth gross revenues for company. After the natural stuffs are issued to production section, workers in production line will get down to blend the natural stuff and this so called commixture procedure. Company will blend different types of plastic in one machine and turn into a mixture that requires in bring forthing the merchandise that clients had ordered.

Sample Testing is the undermentioned measure which company will prove on the mixtures that had been mixed in order to do certain that the mixtures is able to bring forth the merchandise that meet client ‘s demand. After the sample proving phase was passed, production line will travel for bulge measure. In this measure, workers will get down cook, burn and melt the plastics mixture and compact the mixture of plastics into strips by utilizing machines. After the mixtures had compressed to strips, the fictile strips will travel through a H2O armored combat vehicle in order to chill down it and the strip will go harder. The following measure after bulge is palletizing. Workers in production will palletize the fictile strips into farinaceous form after the strips ‘ temperature had chilling down and go harden. The farinaceous plastics will be the concluding goods of Sunnyjaya Plastic Industries Sdn Bhd.

Company will pack the farinaceous plastic in package as good and at that place will hold QC review on the finish goods excessively. The ground of Sunnyjaya Plastic Industries Sdn Bhd do the QC review on the finish goods is to keep the high quality of merchandise that distribute to clients. After the QC phase was passed inwards to hive away is the undermentioned measure, packages of finish goods will travel to merchandises maintaining shop country. Therefore, last measure is bringing the finish goods or merchandise to client.

In our sentiment, we think that the procedure scheme that Sunnyjaya Plastic Industries Sdn Bhd utilizing is Process Focus Strategy. Process Focus scheme is refers to a company which focuses on merchandise assortment and low volume of merchandise. In procedure focal point scheme, responsible of production line in a company is make-to-order. During our trial in the company, we found that the shop country of Sunnyjaya Plastic Industries Sdn Bhd maintain more than 10 types of merchandises that clients had ordered. From this, we can clearly specify that the procedure scheme that implement by the company is process focal point scheme.

Presently, Sunnyjaya Plastic Industries Sdn Bhd has 24 different types of merchandise. Even all the form of finished plastics merchandise made by company looks same, but there is a different mixture on it. 24 types of merchandise consider high assortment of merchandise in plastics natural stuff industry.

The strengths or advantages can gained by Sunnyjaya are provides higher satisfaction degree to client and the workers have loosely accomplishments. Company able provides higher satisfaction degree because they offer high assortment of merchandise to client to run into the different demand of clients. Once the company able to run into the demand of client they wills create a positive perceptual experience from client toward the company. This besides will straight increase the competence of company in the industry.

The 2nd strength is loosely skilled workers. In procedure focal point scheme is necessitate a loosely accomplishment operator to run those machines. However, this is non see as a strength, the strength is process focal point scheme is able to develop a new operator become a loosely skilled. Product line will be more effectual and efficient in production procedure when there have loosely skill operators. Same as old point, it besides will increase the competence in the industry.

However, the disadvantages of procedure focal point scheme are dearly-won, high of work-in-process and lower use of installations. Costly because process focal point scheme requires high volume of natural stuff to maintain in order able to bring forth different merchandise ordered by different clients. Keeping of high volume of stock stock lists is hazardous for Sunnyjaya Plastic Industries Sdn Bhd because may hold certain natural stuff is seldom to be used, this is one of the hazard they have to take a topographic point for shop it, and it may impact the handiness of topographic points in warehouse.

The 2nd disadvantage may confront by Sunnyjaya Plastic Industries Sdn Bhd is high in work-in-process stock lists, it refers to partial finish goods. Since Sunnyjaya Plastic Industries Sdn Bhd is utilizing process focal point schemes in production, they will hold a batch of different undertakings to be complete, means assorted types of merchandise have to bring forth base on different clients and different demand. In order to treat different types of merchandise, it will impact the efficiency of production procedure. The production procedure for every merchandise is different so it is difficult for them to hold a fixed agenda to bring forth merchandise and it will do company high in work-in-process stock lists.

Beside this, lower use of installations besides may be one of the drawbacks for Sunnyjaya Sdn Bhd when utilizing procedure focal point scheme. Compare with merchandise focal point scheme, the use of installations of procedure focal point is lower, because in procedure scheme merchandises traveling to bring forth hold different demand in production procedure and the machines traveling to utilize in production procedure besides will be different for different merchandise. For an illustration, plastic A is require lavation and picture procedure and plastic B merely require rinsing merely. In this incident, machine for painting merely perform for plastic A non fictile B. This showed that non all machines will be used for production procedures in procedure focal point scheme.

Based on our observation, we found that Sunnyjaya Plastic Sdn Bhd is shift toward to merchandise focal point scheme. Because during the conversation with production supervisor, we informed that Sunnyjaya have Numberss of fixed clients and maintain order a big measure for same merchandises. We believe that procedure scheme of Sunnyjaya Plastic Sdn Bhd will switch to merchandise focal point scheme in order to carry through the demands from clients.

Literature Review

Based on the concern lexicon, outsourcing is the scheme that a house contracts out of an internal concern procedure to a 3rd party. Outsourcing today included both foreign and domestic catching where foreign catching is undertaking overseas and domestic catching is undertaking locally to other company. It is normally undertaking to another company which can supply more adept and experience services as it reduces the operating costs. Therefore, it has a brilliant positive consequence on productiveness of the house.

From the diary that we reviewed, it stated that the outsourcing has drawn the attending in the public policy and direction for the past decennaries. It has become a celebrated pattern for the administrations and they adopted a broad assortment of outsourcing enterprises such as recycling. Therefore, it creates an chance for the recycling administration in the concern field.

Presents, outsource practicing has become more common and of import in concern ( Holger Gorg, 2008 ) .It has finally become of import because it allows the administration to outsource the service from abroad and entree cheaper inputs abroad ( Martin Falk, 2012 ) . The administration can supply high quality services such as skill intensive and advanced merchandises or services to the audience at low cost ( John m. Kelly ) . Hence, administration which pattern outsourcing could do elephantine springs in efficiency, effectivity, and velocity.

However, there is outsourcing hazard to be taken as the struggle of profitableness and societal ends might be happened. The outsourcing pattern is difficult to be handle as it involve 3rd party administration which it has increase the trouble of the direction. One of the factors that cause the trouble of pull offing the outsourcing is the jurisprudence issues that arise in describing issues for commanding the seller ‘s public presentation and fixing a proper contract. In fact, some of the sellers will reject the concern due to the quality shading offered or cut down the marginal in quality to cut down the cost of production. Therefore, it has hardened the trouble of the outsourcing pattern. Other than that, the other factor of doing trouble of practising outsourcing is the broad assortment of outsourcing agreements. It is impossible to set up a individual method for work outing all the struggle between sellers and the administration. The complexness of the contract and quality of services provided must be harmonizing to different state of affairs and therefore it increase hazard of outsourcing.

In order to get the better of the hazard, the administration needs to place the hazard appraisal which included three dimensions: provider market, costs of exchanging and citizen sensitiveness ( Emanuele Padovani, 2008 ) . The dimension of provider market is stand foring the grade of competiveness of provider in the market. There are different sum of provider in the industry due to the barrier exist. For illustration, there are many sellers of outsourcing in publishing concern but there are merely few sellers in recycling industry. The lesser the figure of the sellers in the market, the lower the bargaining power of administration. Therefore, the figure of provider in the market straight affects the hazard taken by the administration.

Meanwhile, cost of exchanging is besides playing a major function in make up one’s minding the hazard taken of outsourcing pattern. There are some specialised resources involved in the outsourcing can be barely exchange from one seller to another. It will hold the trouble or significant costs needed to pay to exchange the seller. For blink of an eye, instructors as chief labor in the industry who identify the demand of pupils, developed the course of study for pupils and established the relationship is barely to be switch. If that is necessary, the administration need to pay high sum of cost to supply the same quality of service. Therefore, the exchanging cost of outsourcing could be really high and it disables the administration to exchange during pressing clip.

In add-on, citizen sensitiveness is besides one of the factor demand to be considered in order to take down the hazard of outsourcing. This is due to citizen are the concluding clients to buy the goods or services. Their satisfaction on the goods or service is chiefly the consideration alternatively of the outsourcing pattern in the term of repute of the sellers, bringing clip and quality of goods and services provided. As a consequence, the administration must see how the citizen would be affected if a seller with low public presentation if the outsourcing pattern is conducted.

The three dimensions are important to take down down the hazard in order to carry on the outsourcing pattern. The low hazard outsourcing pattern comes with high competition in provider market, low exchanging cost and low citizen sensitiveness in order to accomplish the successful. Therefore, the administration should place the grade of these dimensions before carry oning the outsourcing pattern as it has higher chance to accomplish the end.

In order to do the recycling industry more economically executable the company should increase the net income and cut down the operation cost. Harmonizing to Kondoh, Kurakwa, Koto, Umeda & A ; Takata ( 2006 ) many green concerns cover multiple life rhythms which company can non put to death the full undertaking by themselves. That ‘s why it is really of import for the company to do the right outsourcing determination for cost decrease. Through outsourcing can cut down the company operational costs by using the regulation enlargement of the concern graduated table.

There are few advantages of the outsourcing which are flexibleness, outsourcing enable the companies to transform portion of their fixed cost into variable cost which increase the ability of the company to accommodate. Second expertness, outsourcing allowed the certain outsourced procedure which involved activities which requires more beforehand cognition to be operated more efficaciously by the specializer who has more advanced cognition. Lastly advancement, outsourcing allowed the companies to work out the working clime job by cut downing the work load of the employees which certain complicated procedure where being outsourced ( Business Services )

Harmonizing to Mark, Zhaohui & A ; Nagesh ( 2007 ) company should see two chief determinations standards if the company have taken the recycling into consideration, which was whether the merchandise being dissembled before recycled and who perform the recycling procedure. When come to believe of a solution for the recycling processes which do non convey obvious benefit to the company, outsourcing will be the speedy and comparatively low cost solution.

There is a major strategic deduction beyond cost that the company have to considered before doing the determination to outsource recycling, which is whether the outsources providers have experience in recycling activities and whether the provider are actively in participate in recycling procedure.

There is four type of recycling option which is outsourcing recycling without disassembly this was a low cost, low hazard and low return option and likely the easiest solution for the company to implement. It is because the recycling supplier already has the necessary equipment for the procedure and companies no demand to put more money on recycling procedure. Second, outsourcing recycling with disassembly in this procedure the material recovery rates will be increased and the recycler involved in merchandise disassembly will able to bespeak the whether there is equal demand.

Third, In-house recycling without dismantling was a determination to have the recycling procedure but having the procedure will increased the unneeded fixed cost. However this option will besides supply some benefit, it allowed the company to derive control over their rational belongings and reduced the hazard of irresponsible mode of the provider. Last, In-house recycling with dismantling this is the option required long term warrant the investing in merchandise and procedure invention which incurs the highest cost of investing but besides provides the greatest chance for the company to change the bing supply concatenation.

Discussion & A ; Conclusion

Operation direction is types of undertaking create value by change overing the input to end product in term of services or goods and including few really of import schemes and that include company productions procedure, and besides installations layout.

Importance of the company ‘s production procedures

Company ‘s production processes is the aggregation of methods and engineering to specify that how the merchandise to be made or manufactured, and procedure are really of import in all the concern and we can non avoid the procedure of making concern. In order to present all the result or merchandise, we should follow every procedure that needed by the merchandises itself because if we miss out of one the procedure, it may take the whole merchandise line to the failure because we do n’t follow the procedure consequently, for illustration, fabricating a auto, usually the company will proving the auto and do certain everything is alright before they handled the auto to the clients, but in instance that they have miss out this procedure of proving the auto, it may increase the opportunities that the auto receive by the clients are faulty.

Therefore we must do certain that the full employee know and understand the procedure good because this can better the staff consciousness and avoid the full error to go on.

Importance of the company ‘s installation layout

Next we will discourse about the installations layout, installations layout is an agreement of different facets of fabrication in an appropriate mode as to accomplish desired production consequences ( MSG, 2008 ) and to guarantee that all the procedure are running swimmingly and besides supply optimal work infinite, make safe & A ; comfy working environment to the workers and besides can supply a proper safety step to the worker.

For illustration company A does non hold proper installation layout in their mill and it may do the mill go really mussy and this will increase the motion of workers and cut down the production capacity of the house because the worker are unable to obtain all the installation that they need instantly and besides cut down the infinite capacity of the warehouse or mill.

How outsourcing addition company efficiency and effectivity

Sometime, when the houses are non making good in certain portion or they want to avoid certain type of cost, job and some onerous ordinance, they may see utilizing outsourcing scheme. They will really outsource some less of import undertaking to the foreigner so that they can concentrate on their important work because every concern have limited resources and every worker besides have limited and outsourcing can cut down their load so that they can focused on their nucleus services and merchandises.

Other than this outsourcing besides can better the cost and efficiency nest eggs of the company because some merchandises or services really really complicated in nature but the nature of the house are really forestalling them to executing it at consistent and sensible cost. For illustration apple corps, they are more specialised in planing and non good in fabricating all this electronic appliance, hence apple have choose to outsource fabrication to Foxconn, which is the universe largest electronic contract maker from Taiwan that are specialized in fabricating electronic merchandise.

In add-on to, outsourcing besides can increase company staffing flexibleness because some operations of the company may hold seasonal and besides cyclical demands to convey in excess resources when we needed and can easy let go of them when we are done. For illustration, Apple Company, they merely held merchandise establishing event twice a twelvemonth and they will outsourcing this event planning to outsider so that this outsource company can assist apple to organize this event at fixed period of clip at consistent cost.


After we have done the trial to the mill, we have realize that really there are some disadvantage in the production procedure of the company and there are including costing of the company are really high, high in work procedure stock lists and low use of administration stock lists

One of the issue the facing now is dearly-won job, bing can be define as one of the fundamental of every concern and its really of import in operation because this is the most of import factor that determine the net income of the house, A company can really go on to maintain stock for the natural stuff that often used but cut downing the sum of stock maintaining for the natural stuff that seldom in used in order to salvage cost on this.

But, due to sometime we still need to utilize that natural stuff although we do non used it so frequent, we can really see to buy that stuffs from other when needed or have insufficient of stuff in our warehouse. In add-on to, it besides can assist the company do more infinite out from their warehouse and we could salvage a batch with this alternatively of acquiring another bigger warehouse to hive away all the natural stuffs needed.

Another critical issue of company facing is approximately high work in procedure stock lists. Work in process stock list is the stock list of good that are still in procedure phase but non finished yet, and high-work-in-process-inventory can be good and harmful every bit good. The beneficial is that we can supply clients complete goods much rapidly because we already have all this semi-finished goods on manus and we can change over them into finished goods rapidly and this can increase the efficiency every bit good and its can be harmful because we need a batch infinite to hive away them. Although the company chief focal point on procedure scheme but really we can seek to cut down work-in-process-inventory in order to assist the house to accomplish thin fabrication and this besides can assist the house to cut down the costs in another manus.

Other than this, we need to accurately find the constrictions ensuing in increased output, for illustration, we can add extra machines in the analogue to in order to increase the house throughput capacity.In add-on to, the company besides can optimise the fabrication procedure in order to increase or bettering one or more process public presentation step of the company. The undermentioned issue confronting by the house are low use of administration stock lists, use of administration stock list are define as how the employee get used to the stock lists or the installations that provided by the company to them. Since different merchandise may hold different type of procedure and necessitate different type of machines. Therefore, this will be the chief cause that non all machines are to the full utilised because the machines required to fabricate them are different.

In order to cut down this waste, the house can really cut down the assortment pick of merchandise to clients. Because when we offer more pick of merchandise, we will necessitate more installations and stock list and all this stock list may non suitable and necessary to be used for other merchandises, For an illustration, plastic A and plastic B job as reference early, really we can mention to the demand and the gross revenues of both merchandise, if the gross revenues and demand for merchandise A is much more higher than merchandise, we can really more focusing on merchandise A and call off the production line for merchandise B or alteration to another merchandise that utilizing same type of machine and stock list in order to forestall the low use of installations and this can beneficial the company by to the full use all the machines and at the same clip, it ‘s besides can makes the company looks more specialised in bring forthing certain merchandise.


Procedure and installations layout are really of import to all sort concern and we must organize them consequently in order to do certain that our company can run swimmingly. Outsourcing is one really powerful tool that can cut down the occupation undertaking and can assist us to cut down many different sort of cost, such as machine, preparation, equipment and besides some troublesome ordinance and so on, but we have to utilizations sagely and avoiding abuse of this because it might convey negative consequence to our company.

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