Case Study: Modenas, Motosikal Dan Enjin Nasional Sdn Bhd
Industry – Manufacturing
Location – Gurun, Kedah Darul Aman, Malaysia
Number of employees – 1,880
Modenas was established in tandem with Malaysia’s efforts to achieve industrialized nation status, now ubiquitously known as Vision 2020. Modenas spearheads the technology transfer and development of motor-cycle manufacturing, to eventually enable the country to proudly produce indigenously motorcycles.
Kawasaki Heavy Industries (KHI) is the technology partner of Modenas. Equity is shared by three parties – DRB-HICOM Berhad (70%), Kawasaki Heavy Industries (19%) and Sojitz Corporation (formerly Nissho Iwai Corporation, Japan) (11%).
Modenas’ achievements, with its first model introduced to the local market in 1996, and then to international market in 1997 were achieved through the sheer dedication and hard work of the management team and all the staff of Modenas.
With almost 2,000 year round employees working in 2 shifts to meet the production demand, the company’s HR department processes 2 payrolls run monthly, a weekly payroll for hourly employees and semi-monthly payrolls for permanent employees.
In addition, the company’s HR and payroll teams did not have the ability to respond quickly to employees’ changes and information requests on workforce data. Modenas wanted to improve efficiencies with its administrative HR and payroll tasks in order to create greater support for strategic initiatives.
Having reviewed a few Human Resource Management systems available in the market, Modenas finally chose Orisoft’s unifiedHCMS to heightened efficiencies, reduced the quantity of paper and to improve communication that is channeled throughout the company.
Since implementing Orisoft unifiedHCMS, Modenas quickly experienced benefits in its daily HR and payroll operations. Through the Time Attendance module that allows hours and earnings flow through to Payroll module without manual entry or intervention, data is instantaneously available for processing. HR managers and payroll personnel now can access employee data in real time. Orisoft unifiedHCMS offers a secured and easy way of delivering information to users, allowing HR managers and payroll personnel to quickly handle employee related processes easily and efficiently. Electronic workflows and approvals have streamlined many of the administrative tasks such as new hires, merit increases, terminations and job changes.
Modenas’ human resources and payroll staff now can handle their business processes at their sites, and departmental managers are automatically notified when there are employee information changes. unifiedHCMS workflow has decreased the time spent on HR processing time by 60% because the human resource managers now can submit job changes and salary alterations and these modifications are automatically routed to the appropriate people for approval, regardless of location and department. Once the change is accepted, it takes effect in the system immediately, without any forms, emails or delays.
Now, the company¡’s HR team has become more strategic and more productive. They have time to accomplish other more value-added activities, such as effectively recruit, motivate and retain employees.
Benefits at a Glance
- Significantly reduced labour hours in payroll administration
- Substantial time savings and reductions in paper usage with workflow module
- Created more time for HR to focus on more strategic HR activities
- Streamlined operations and improved data management