Sarawak Shell Bhd achieves milestone in lean management

Ong (third from left) presenting the award to Chieng.

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KUALA LUMPUR, Dec 6: Sarawak Shell Berhad (SSB) is now a proud recipient of the prestigious Malaysian Productivity Corporation (MPC) National Gold Certification for excellent practices in the area of Lean Management.

In a press release today, SSB said this was the first time such a recognition, by the Ministry of International Trade and Industry (Miti), had been accorded to an oil and gas company in Malaysia.

This certification was in recognition of SSB’s outstanding efforts for the continuous improvement in its lean management deployment journey that started in 2016.

“When the oil price dropped drastically towards the end of 2015, we knew we had to embrace an effective way of working to lean our processes, remove wastes and instil discipline in our cost management to remain competitive. Two years into this journey has resulted in a leaner organisation that generates strong, positive cash flow year-on-year in our upstream business.

“This national recognition is a true testament of the hard work and efforts taken by our dedicated SSB upstream staff in ensuring we remain a competitive oil and gas company in the industry and in creating our own future,” said Shell Malaysia chairman Datuk Iain Lo.

SSB general manager Jill Chieng, who represented Lo, received the award from Miti Deputy Minister Dr Ong Kian Ming. Also in attendance to witness the award presentation were Malaysia Productivity Corporation (MPC) deputy director general Abdul Rahim Yusoff and SSB general manager (Business Excellence) Khoo Choo Beng.

“Prime Minister Tun Dr Mahathir Mohamad launched Miti’s National Policy on Industry 4.0, known as Industry4WRD on Oct 31, 2018. Industry4WRD will ensure our industries remain ahead and competitive in facing the challenges brought by the Fourth Industrial Revolution. This national policy aims to pave the way for enhanced productivity, job creation and high-skilled talent pool, and ultimately, contribute to our economic prosperity and societal well-being.

“The Readiness Assessment for 4.0 will be conducted by MPC starting 2019, and it is a comprehensive programme to help firms assess their capabilities and readiness to adopt Industry 4.0 technologies and processes,” said Dr Ong.

Shell’s history in Sarawak dates back to 1910 when the company discovered the country’s first oil well the `Grand Old Lady’ on Canada Hill in Miri. This was followed by the discovery of the first offshore field in Baram in 1963.

Shell then enabled the liquified natural gas (LNG) business in Malaysia by building the world’s first commercial gas-to-liquids plant (Shell MDS) in Bintulu.

In the downstream arena, Shell is the number one fuel and lubricants brand in the state through its operating company Shell Timur. Both Shell MDS and Shell Timur are joint ventures with the Sarawak government.

SSB remains the largest multi-national oil and gas explorer for offshore in the state.

Shell’s legacy in Sarawak goes beyond its business footprint. Shell continues to contribute towards the development of local talent and the growth of Miri and Bintulu from small villages to thriving cities.

The organisation also continues to invest in scholarships, vocational skilling, environmental awareness, road safety initiatives and capability building through programmes for budding entrepreneurs.

MPC deputy director-general Abdul Rahim Yusoff hoped the recognition awarded to Sarawak Shell Berhad would motivate the rest of the industries across Malaysia, including small and medium enterprises (SMEs) to similarly adopt lean management processes as a stepping stone towards Industry 4.0. — DayakDaily