Flexible Manufacturing System in Penang Electronics and Electrical Industry

Abstract

This study investigate the implementation of Flexible Manufacturing System (FMS) within the Electrical and Electronics (E&E) industry in Penang. Operating in a volatile global market, many E&E companies in Penang are implementing FMS to maintain their competitiveness. However, an actual understanding of the real FMS industrial practices has been lacking. The objective of this research is to investigate the actual FMS industrial practices of E&E companies in their manufacturing operations. A qualitative methodology was employed to address this gap, involving factory visits, observation and semi-structured interviews with eight factory managers from different E&E companies in Penang. The collected data were analysed thematically through prior codes matching to identify key patterns. The findings reveal the realities of FMS implementation in practice. While companies have implemented FMS principles, they face significant challenges. These include high capital investment and a pronounced skills gap within the workforce. In conclusion, the research demonstrates that FMS implementation necessitates a holistic strategy, addressing not only technical aspects but also human resource development on skilled workers for FMS implementation. This study offers valuable, practical insights for industry practitioners seeking to understand FMS. It also provides information for potential company decision makers to create targeted supporting programs, ultimately aiming to bolster the competitiveness of its E&E company through FMS implementation.