Features - News
 
03 June 2002  - New Straits Times
By Debra Moreira
Paying cash for ideas

AUTOMOTIVE component maker Ingress Corp Bhd keeps ahead with a unique innovative system - it pays its employees RM1 per idea whether it is used or not.

Every week, the company holds a Quality Control Circle (QCC) meeting where all employees are divided into small groups to discuss quality improvements and cost reduction methods.

"This method ensures improvement of quality all the time," vice-chairman Rameli Musa said.

The idea, first implemented by the founder members of the company, helps employees build teamwork through group meetings and promotes positive culture among the workforce.

"By proposing an idea, employees get RM1 and if the idea is implemented, there is profit sharing," Rameli explains.

An employee can earn between RM60 and RM100 a month just by proposing ideas.

Last year, the company saved about RM2 million in research and development costs and this year Ingress hopes to save up to RM3 million with the help of its 800 employees. The cost down not only benefited Proton and Perodua through development of outstanding quality products, but helped the group to manage changes in the demanding automotive industry through good communication and teamwork.

This has resulted in the company winning numerous quality awards. Its manufacturing facilities in Nilai received the ISO 9002 in certification in 1997 while its international operations in Thailand received the QS 9000 accreditation.

By the end of January 2001, all its manufacturing plants had been accredited with QS 9000 / ISO 9002 certification.

It has also won Most Improved Vendor Award from Proton and the Most Successful Customer Award from Bank Pembangunan dan Infrastruktur Malaysia.

Today, Ingress has established itself as a prominent automotive component manufacturer while customers acknowledge its products and services to be reliable, cost competitive as well as of the highest quality.

Even if the walls of Ingress are full of awards, for the company, winning awards are only the visible par of its continuous improving projects.

The real reward comes in when the company wine contracts based on its well-run management and motivated workforce.

"The biggest award for our employees, I think, is when we get contracts from customers. People thinks that once you win an award, that's it! But getting an award is not our target, it is continuously improving ourselves," Rameli adds.

One of the company's best achievements is the recognition of international market. For example, Ingress recently won a Honda contract worth RM50 million supplying components for Honda.

"Honda is very meticulous in choosing suppliers, therefore being able to win a Honda project is really good!" Musa explained.

A major achievement this year would be supplying to Honda's Indian and Chinese operations as the Japanese carmaker becomes more confident of Ingress's abilities and quality products.

The company which made its big break when the national carmaker vendor programme was started in 1992, is today earning more than RM178 million in revenue a year and is now listed on the Second Board of the Kuala Lumpur Stock Exchange.

It started out when two groups of entrepreneurs decided to merge businesses to form Ingress Corp Sdn Bhd. At that time, the company was mainly providing power engineering services to Tenaga Nasional Bhd and when its services required by the national car manufacturer in 1993, Ingress made its debut in the automotive component production sector.

It supplied mouldings to Proton, and in 1994 it incorporated a joint venture with Japanese companies to make door sashes.

The following year, Ingress made proposals to list but plans were stalled due to the economic downturn.

In 1997, it won a contract to manufacture doors for Perodua's Kancil model and to date, apart from having operations in Malaysia, Ingress has a plant in Thailand to serve the needs of customers which include Ford USA and Isuzu Motors.

It is also involved in railway engineering and electrification to diversify its core automotive business and reduce reliance on one sector.

Last financial year, revenue grew to RM178 million from RM115 million a year ago while net profits rose to RM18 million from RM12 million previously. The company has about RM5 million in cash and bank balances, and RM20 million in fixed deposits.