Cover Page Shared Services Project Report

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Overview of Shared Services Concept

• Why Malaysia HR Group initiates this idea? i.e.
  Why Shared Services?
• The Process i.e. How the Project started?
• Setting the Project Team
• Select Pin-Point Activity
• Establish Matsushita Service Office (MSO)
• Current Status of Shared Services Implementation
• Future Expansion of MSO Activities
• Find out more

to be continued
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Why Malaysia HR Group initiates this idea? i.e.
Why Shared Services?
To meet the business challenges in todays
context , the Malaysia HR Group decided to
rejuvenate their HR strategy. A New HR Concept
which synergizes both the Corporate and Human
Strategy was introduced this year for achieving
High Impact and High Value to the companies.
This concept aims to bring the Groups HR
Function to a more strategic level and be able to
contribute directly to the business bottom-line
and staff development i.e. Expected Result of New
HR To actualize this new HR concept, various New
HR Activities have been planned for
revitalization. One of the projects that arose
from these new HR activities is the HR Shared
Service Project. The mission of the HR Shared
Service Project is to enhance competitiveness of
Malaysia Group companies by increasing
productivity and efficiency of HR Function, and
transform HR function to take on more strategic
roles.
to be continued
Back to Overview
3
The Process i.e. How the project started?
The Process 1 Setting The Project Team As
kick-start, a project team was immediately set up
to intensively engaged in the feasibility study,
analysis and proposal for the period 26 Aug till
4 Oct 2003. The Project Leader and Members came
from 5 companies- MAICO (Leader and 1
staff) PAVCKM (1 staff) MECOM (1 staff) MELCOM
(1 staff) MDDM (1 staff) The Process 2
Select Pin-Point Activity Before specific
activities were pin-pointed for sharing, surveys
were conducted to assess HR GA functions of
the Klang Valley companies, analyze the current
situation and make proposals on how to carry out
shared services. 2-1 Consider the Current
Situation of HR Functions Analysis was made for
different items in the broad categories of -
Pure HR General Affairs Welfare
Training Employment Safety and Health
to be continued
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2-2 Explore the various Forms / Ways of
Sharing The project team identified 4 ways of
sharing- Information sharing Bulk
merit Service consolidation Function
consolidation 2-3 List of Possible Sharing and
Evaluation The group listed specific items for
possible sharing in the areas of - Core HR (7
items) General Affairs (15 items) Training
(5 items) Payroll (5 items) Employment (5
items) As they analyze the list of possible
items for sharing, the group made evaluation on
each item based on the criteria of - High
Possibility Need Study Not Possible
to be continued
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• The group went further to identify Pin-Point
  Activities and the possibility, summarizing the
  1st batch of Pin-Point Activities.
• For each Pin-Point Activity item, the project
  group made proposals on the Cost Rationalization,
  with projected savings, and even included Issues
  for consideration before implementation of each
  Pin-Point Activity item.
• 1st Batch of Pin-Point Activities and the Cost
  Merit
• Bus Services RM827,400.00
• Uniform RM758,882.35
• Shoes RM11,347.20
• Despatch RM93,797.00
• Contract Workers RM1,188,000.00 (RM2,100,000)
• Gift RM18,055.00
• The total cost savings is projected to be
  RM2,897,485.55. If the group is successful in
  bulk merit savings from negotiation for contract
  workers , the potential TOTAL COST MERIT OF PIN
  POINT ACTIVITIES could even escalate to
  RM3,809,481.55

to be continued
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The Process 3 Establishment of MSO With the
substantial potential savings of RM 3,809,481.55
, the Malaysia HR Group reaffirms that their
idea on Shared Services can contribute
significantly and plan to set up Matsushita
Service Office, hereafter referred as MSO. The
MSO will be a partnership organization similar to
the set up of MHRDC. The group have
intentionally plan for a lean and mean office by
selecting few existing staff from group of
companies and setting office within the premises
of one of group the group companies. To
officiate the MSO and her activities, a launching
ceremony was arranged. ltPictures of the Launching
Ceremonygt
Current Status of Shared Services Implementation
As of May 2003, the MSO have completed 3 items
of Shared Services , and the resulting Cost
Savings Implemented was RM555,000. Coming up
next will be 2 more shared services items and the
Cost Savings to be implemented will bring a
potential savings of RM429,000
to be continued
Back to Overview
7
Future Expansion of MSO Activities With the
successful implementation and savings achieved,
the Malaysia group is even more committed to
expand MSO activities in 2 ways. (1) Expansion of
Areas The initial phase was kept to companies
within Klang Valley but there is plans to
consider extending shared services to Malacca,
Johor Bahru and Penang (2) Expansion of Job
Scope The initial phase focused much on items in
the General Affairs category and there is plans
to move on to 2nd phase , which looks into
contract employment, recruitment and Expatriate
administration. Find Out More To find out more
about the Malaysia Groups experience, please
contact- Mr F. Seki (Managing Director, Malaysia
Human Resource Development Center) fseki_at_mhrdc.pa
nasonic.com.my Tel [phone] Fax
03-58913985
to be continued
Back to Overview
8
End of Shared Services Information Sharing
Thank you for your attention Contact Mr F.
Seki Managing Director Malaysia Human Resource
Development Center fseki_at_mhrdc.panasonic.com.my
Tel [phone] Fax [phone]
Back to Overview
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HR Shared Service Project

• 1.Mission
• To enhance competitiveness by increasing
  productivity and efficiency of HR function, and
  transform HR function to take more strategic
  roles
• 2.Target
• To submit concrete proposals
• - Survey HR GA function of KV companies
• - Study HR shared service and new organization
• 3.Project members
• Leader and representatives from 5 companies
• 4.Period
• 26/Aug - 4/Oct (Intensively engaged in the
  project)

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SIMILAR, YET SEPARATED
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COST MERIT OF SHARING - UNIFORM
ISSUES
1. Uniform Policy 2. Standardize
quality and design 3. Inventory
Loss Control
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SAFETY SHOES
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Model
TS 302
TS 301
TS 301
TS 301/2
TS 301
Price / Unit
RM 37.40
RM 38.00
RM 33.00
RM 37.40
RM 49.00
Quantity
714
100
57
200
1544
26,703.60
3,800.00
2,793.00
6,600.00
57,745.60
Expenses/yr
COST MERIT OF SHARING
ISSUES
1. No issue because each company
already used the same model no.
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GIFT - CASE STUDY
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COST MERIT OF SHARING
ISSUES
1. Budget policy to be standardize 2.
Group Item Policy
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TOTAL COST MERIT OF PIN POINT ACTIVITIES
EXCLUDE BULK MERIT ltRM38gt
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TOTAL COST MERIT OF PIN POINT ACTIVITIES
INCLUDE BULK MERIT ltRM38gt
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Establishment ofMatsushita Service Office (MSO)

• Function
• Identification Scoping of MSO Initial Stage
• Identification Scoping of MSO Expansion
  ltFunction Sharing FSgt
• Service Quality Standard
• New idea for services cost saving
• Purchase Policy (Tender/Periodical Negotiation)
• Supplier Sourcing, Multi-sourcing
• Actual Negotiations

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New HR Concept

• Corporate Human Strategy

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New HR activities

• New Performance Oriented System
• Organizational Development
• Employee Involvement Activities
• Policy Sharing for Revision of
• Collective Agreement

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Expected Result of New HR

• HR as Strategic Partner
• HR Contribution to Profitability
• HR Contribution to Human Development

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2. Implementation Activities

• Cost Saving Implemented

• Cost Saving to be implemented

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Expansion of Activities

• 1.Expansion of Areas
• Starting from companies in Klang Valley, and
  Expanding to Malacca, JH, and Penang
• 2.Expansion of Job Scope
• First step - Bus/Dispatch/Gifts/Sharing
  information
• of stationary/Uniform/Common
  Welfare
• Second - Employment of Contract workers/
• Recruitment/Japanese
  Expatriates
• Third - standardization
  Centralization of HR/core HR jobs
• Development of new business
  (Printing.ETC)
• 3.Target of Cost Saving
• 03 04
  05
• 2.0milRM 2.5milRM
  3.0milRM

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