POST MORTEM ON FAILED TENDERS

 

8 October, 2023 - Working from home in my personal humble office space. Just completed a zoom meeting with my colleagues (post mortem on failed tenders).

Hope everything will go well with my future proposals and quotations

TYPICAL PITFALLS IN CORPORATE GOVERNANCE - Nik Zafri

Lesson No. 1 : The CEO must be well-informed of any risks (both technical and financial) when deciding to invest in "new innovation"

Innovative ideas may sound "juicy" but potentially may also become a great threat to sound governance practices. Few gigantic motor corporations thought innovation was a good investment hence a lot of money went to Research and Development (R and D) to produce "innovations" to only knew later that they have breached the law.

a) The VW emissiongate/dieselgate

Quoting Ian McVeigh, Head of Governance at Jupiter Asset Management wrote in the Telegraph UK in 2015 : 

"The revelation that the car giant (VW) has been using so-called “defeat device” software to get its diesel cars to pass strict emission tests has been an unmitigated disaster. Since the scandal broke, the value of the company has fallen by around €30bn (£22bn)"

Source : https://commons.wikimedia.org/wiki/File%3AVW_stock_price_after_emissions_violations.png (Analysis by Dennis Bratland)

He wrote further about the significance of the CEO being well informed of investment analysis without the investors finding out about it first. Ian also mentioned about the corporate structure of German companies - having split boards - a supervisory and a management board making it potentially unclear of the "who is responsible or authorized for what?". UK however adopted the principle of putting the final responsibility with only one board.

The Volkswagen dieselgate or emission gate case started on 18 September 2015, when the US EPA issued a notice of violation of the Clean Air Act to German automaker Volkswagen Group for intentionally programmed turbocharged direct injection (TDI) diesel engines to activate certain emissions controls only during lab emission test. The programming caused the vehicles' NOx output to meet US standards during regulatory testing but emit up to 40 times more NOx in real-world driving. 

The CEO sportingly have since apologized to the customers, users and the general public. Later, he resigned.

Although Volkswagen is embarking on new policies and slowly regaining the trust of stakeholders and the car buyers, but the price they have paid is high.

Lesson No. 2 : Hiring "external party" to advise the Board can also lead to disaster.

I once heard somewhere that billionaire Warren Buffet; at some point; do not fully trust "external party's" judgement. He would rather make his own final decision.

Be careful when appointing external "subject matter experts" especially authorizing them to speak in a Board Meeting. If it is not necessary to hire, then DON'T! 

Many important decision cannot be made unanimously because the "so-called guru" says "NO". Ironically, the CEO agrees and subscribes to the "gurus" advice rather than seeking majority opinions from the experienced board members. (I've seen this happened before - it was a disaster!)

Hiring consultant assisting in corporate governance implementation is fine but these practices should be restricted to mid and support levels where CEO leads the initiative - not vice-versa. Board Members meeting must always be treated as CONFIDENTIAL.

Remember : Not everyone in the boardroom are smart guys!

Lesson No. 3 : There are always good rationales of why laws are implemented and enforced. 

Those who try to avoid the law are deemed to have "cheated" the government/ lawmakers and other stakeholders. Or put simply, betraying everyone's trust. 

One of the top cases that I've bumped into is misappropriation of funds (breach of trust) due to shareholders "manipulating" their unclear roles, responsibilities and authorities to serve their own ends. Other cases include : board ineffectiveness, unethical audit and risk practices, "unfair" pay, bad relations with external parties such as accountants and company secretaries. (aah yes, accountants and company secretaries can tell stories too - they know your secrets!)

We've witnessed how prolonged "conflict" between corporate entities and the lawmakers ending up in series of investigations and prosecutions. Long battles in the court of law not only endanger the company's reputation (even if you win the case) but the sad consequences that follow it - from people loosing jobs to reduction of market values.

Lesson No. 4 : Risk is always PROACTIVE

Never wait until problem arises. Learn the lessons from others who have failed. Take proactive measures by adopting Risk Management. (and don't just simply say....DO IT!) Proactive Risk Identification will provide you with a guide on Plan of Action (mitigation), brainstorming and develop a strategic plan. 

All these activities must happen prior to operation/project implementaton, assessed during the operation (comparing with the Risk Register for proactive risk identification stage) and mitigate during post-operation stage.

Adopt good practices of Risk Management but do not try to be too bold by taking unwanted risks!

Lesson No. 5 : Do What You Say and Say What You Do.

When you have given solemn promises or have put them in your customer charter or have addressed them in Manuals and Procedures - deliver them. Don't just file everything up and ignore them, or displaying what needed to be displayed and "that's it...end of story" - hoping that your PR will do the rest for you.

Sometimes, as a shareholder, you need to realize what you think is "impossible" can happen and do happen - whereby other shareholders (your own friends) can turn against you due to one or two angry customers who feel that you are not delivering what you have promised.

There are so many reasons of why ISO 9000 or Total Quality Management is introduced on the first place. Surely they are not to burden you but to help you.

Lesson No. 6 : Non-Conformance and Risks are opportunity for improvement

Don't scare auditors with cold bullying remarks such as :

• "I'm your paymaster",
• "Make it looks like there is more "loss" than "profit",
• "I know your boss",
• "Don't try to be too smart - remember Enron?" 

Remember, auditors are human beings too. If they feel threatened, despite the Non-Disclosure Agreement, they still can adopt the "Need to Know Basis" vs your "Transparency" - they can even get court-orders. Believe me, the end-results won't be good.

Treat auditors as friends who are trying to help you not destroy you. Treat any non-conformances as opportunities for improvement and not some "fault-finding activities". In the end, you'll be in every auditors "good book"

Don't make your company becoming one of the case study being discussed in front of other auditors in their association.

Lesson No. 7 : Be careful when setting limits on shareholder voting power.

One study (by Ken L. Bechmanna, Department of Finance, Copenhagen Business School and Johannes Raaballeb Department of Economics and Business, Aarhus University) shows that the bad corporate governance in the banks is visible in the shape of severe restrictions on shareholder rights, including voting and ownership ceilings, etc. These severe restrictions are quite unique, especially from an Anglo-Saxon perspective. In the U.S., ownership ceilings are not allowed and in a sample of 4,399 U.S. firms, only 24 had voting ceilings (see Commission of the European Communities, 2007). 

Similarly, voting and ownership ceilings are not among the 24 corporate governance provisions carefully examined by Bebchuk, Cohen and Ferrell (2009), who show that restrictions on shareholder rights lead to significant reductions in firm value.

Out of the six entrenchment provisions found to be value destroying, four of them set limits on shareholder voting power and the ability of a majority of shareholders to impose their will on the management.

And FINALLY!!

When you are having problems, try avoiding easy paths such as buyover, mergers, bailouts etc or worse - let yourself willingly to become "victim" to "hostile takeover" or ending up in government intervention. 

Even if you feel like selling your shares or the company itself, don't give up yet - try your best to first to solve your problems - who knows, you might succeed against all odds. 

Be transparent to your employees - let them know what is happening, many companies have gone down to earth and surprisingly, their employees have very good ideas on how to save the company. If the idea works, give these employees the rewards that they deserve!

ISO 9001:2015, OHSAS 18000, EMS ISO 14000 - SOME USEFUL FLOWS - NIK ZAFRI

#ISO90012015 #OHSAS18000 #EMSISO14000 #ISO14000 #NikZafri

FOR MORE INFO : Contact  me/RFQ for more details or Click on Online Enquiry Form 

(Serious Enquiries Only)

Nik Zafri's Guide for Dummies - Typical Systems/Methodology of your QMS/ISO 9001 Proposal (construction)


(FOR THE 1ST TIME EVER IN 15 YEARS, PART OF MY ISO 9000 PROPOSAL (CONSTRUCTION) IS REVEALED!!)




For ISO 9001:2008 Consultants Only

This sample has been tailored made for construction/building and civil engineering.

Segment One

Initial Assessment/ Evaluation (1) to predetermine: -

a. Scope of Registration & Application
b. Improvement of Existing Elements/Criterions if any
c. Additional Elements/ Criterions as necessary or permissible exclusion if any

Preparation and Presentation of findings to the Client.

(1)This is not an audit activity.

(1) Methods Used :-

Review documentation based on construction industry, sampling basis, conversation with related staff and observing consistency of physical activities at various places of work.


Segment Two

QMS ISO 9001:2008 Awareness Workshop - Theme : Managing Quality in Construction (2)

(2) (both general awareness and customized to client’s nature of industry, contract mode (Design & Build? Turnkey? Conventional?)

Workshop’s detailed report/ assessment to the Client.

(2) Solution-based – client will know the next course action after the training.

Client shall provide feedback forms and provide Certificates of Participation (which format will be forwarded by the consultant).

Typical Workshop Contents

Training Objectives, 8 Management Principles and 5 Main Clauses and interrelationships, Various Tools, Quality Cost etc. etc. + Application to Client’s industry

PHASE TWO – IMPLEMENTATION (CRITICAL)

Segment Three

Assisting System Structuring(3), Quality Document Development and (4) Review

(3) Typical System Structuring (besides the remarks) usually involve consistency with the standard requirements (not limited to the following):

· QMS Workshop
· Customer-Focus – Communication & Survey.
· Resource Management including org. chart, JD, competency & TNA
· QMS Manual/Plan/Procedural/Method Statement and or Work Instructions/I & TP (Inspection & Test Plan), sequencing and format/numbering + records management (Forms & Checklists)
· Online Documentation Interface if Any
· Measurement of Department Objectives and Capturing and Analysis of Data
· Supervision/Inspection & Supplier/ Subcontractor Management/Assessment
· Effectiveness vs. Compliance, Plan-Do-Check-Act PDCA and Continual Improvement

Segment Four

Internal Quality Auditing Course(5)

(5) Among Critical Issues to be highlighted :-

a. Effectivess/Understanding vs. Compliance.
b. Traceability to the source.
c. Determining of Non-Conformance
d. Correction and Corrective Action (CA)
e. Preventive Action
f. Audit Scheduling and Reporting
h. Assessment vs Audit – Judgement vs. Evidence.
i. Auditors Conduct.
j. Inspection vs Audit

Workshop’s detailed report/ assessment to the Client.

(5) Based on IRCA’s and IQA’s modules.

Typically covering :-

Requirements of ISO 19011:2000 and ISO 9001:2008.

The last day shall be allocated for a ‘mock adequacy and compliance audit’ conducted by the client’s IQA team.

Client shall provide feedback forms and Certificates of Participation/ Successful Completion.

PHASE THREE - REVIEW

Segment Five

Monitoring Internal Quality Auditing Activities (IQA) (6)

Management Review Meeting (MRM) (7)

(7) If invited by the Client, Consultant may attend the MRM only as an observer. If otherwise, Consultant will need a copy of the MRM minutes to evaluate effectiveness and compliance.

In both cases, Consultant shall provide the MRM evaluation to the Client.

(6) Monitoring of NCR, CAR, Reporting, Follow Up, Verification.

(7) Monitoring MRM Inputs and Outputs including :

· IQA results
· Customer feedback
· Process performance and product conformity
· Status of preventive and corrective actions
· Changes affecting QMS
· Continual Improvement
· Resource Management

Segment Six

Independent Mock Adequacy and Compliance Audit(8)

Preparation and Presentation of findings to the Client.

(8) Full system audit – Verify adequacy of QMS documentation, data & records based on random plant and office activities, sampling basis, and interview related staff.

Despite Consultant may issue NCR(s) and CAR(s) but this audit shall not form part of the Client’s QMS and/or certification benchmarks.

Consultant’s NCR and CAR shall only be taken as independent opinions and as suggestions to further improve the client’s system.

PHASE FOUR - CERTIFICATION

Segment Seven

Assisting the Client on Certification Arrangements(9)

Final Briefing on Certification Audit(10)

(9) Coordinate with QMR on communication with certification body.

(10) DOs and DONTs during certification audit.

Consultant shall not be present during the adequacy/compliance audit (certification audit) but shall follow up on the results of such audit including NCR/CAR issued.

The Star Global Malaysians Forum - Posted: 24 August 2006 at 11:46pm

Nik Zafri Posted :

Someone has asked me to define what is PFI in the construction industry. I know that this question is very much related to the previous 9MP. So here's what wikipedia says:

The Private Finance Initiative specifies a method, developed initially by the United Kingdom government, to provides financial support for "Public Private Partnerships" (PPPs) between the public and private sectors. This has now been adopted by parts of Canada, France, the Netherlands, Portugal, Ireland, Norway, Finland, Australia, Japan and Singapore amongst others) as part of a wider reform program for the delivery of public services. en.wikipedia.org/wiki/PFI

Besides than PFI, I'm sure you all have heard of these :

a) Design and Build, b) Turnkey, c) EPCC, d) Conventional,

Thus, PFI is an additional to these..
---------------------------------------
anonymous wrote:
hi, i juz read your post on PFI. Is there any pros and cons in PFI? From wut i've read, PFI don't really works in UK. the article is as follows:

The Confederation of British Industry (CBI) reported that the PFI procurement

process wastes an average of £2.45m per hospital scheme worth £60m or more since 1994. This represents 1.05% of a project's capital value. Ifthe trend continues, the CBI believes the waste could end up reaching at least £122m on upcoming hospitals. The procurement process was found to typically take 39 months when 18 months is recommended . (Source: Building, 21 April 2006)

What about Malaysia?

----
Posted: 24 August 2006 at 11:46pm

Nik Zafri's Response

Good observations. One tiny thing…the PFI definition is not mine..it’s wikipedia’s (of course I reserve my comments..for now) Pros and cons…what doesn’t? If I read the statement you’ve inserted here carefully, there’s something along the line saying about ‘process wastes.’ Now if I’m not far too mistaken, in the thread – construction quality management, I did talk about ‘cost of quality’. And if I read it right again, the statement sounds like it’s taken from some audit report (intergrated financial and process audit – the accenture way)…yeah…they cover ‘cost of quality’ too – defects, system NCRs, logistics, and so on (even has years of projections on 'waste' alone) Well buddy, not only PFI, ‘waste’ issue is happening everywhere – even in Turnkey/Design & Build /EPCC /conventional…But again, this does not mean in any way that I’m with or not with PFI. Let's wait and see first. It's not really fair to pass a judgement in such a short time.
----------------------------
Posted: 15 November 2006 at 2:14pm

Azlin_Rahim wrote:

hello there.. hurm..finally i can write something here.. im so busy with my examination..heheheyup..still with the PFI.. as far as i concern PFI is one of the extension of privatison..however i am really confused with the PFI accordance with 9MP..its kinda looks like PFI have the similarities with the BOT, i guess..correct me if im wrong..thank you...


azlin_rahim wrote:
Hello back. In theory, I would agree with you that PFI could be the 'upgrade version' of privatisation and even not too wrong to say that PFI has the elements of 'Turnkey' & D & B as well, but according to this link,* there is a difference.


* Excerpt :

Those who say that PFI is privatisation have got it wrong because, while the private sector is rightly helping in public service delivery, the public interest is paramount.

PFI is thus quite distinct from privatisation – where for example in privatised health or education it would be the market and the price mechanism, not the public (sector), that defined and provided the service directly to those customers that can afford it and thus where the public sector can end up sacrificing both fairness and efficiency in the delivery of these core services.

So there should be no principled objection against PFI expanding into new areas where the public sector can procure a defined product adequately and at no risk to its integrity. The private sector may have a core skill the public sector can benefit and learn from, such as in the provision of employment and training services, the renovation of schools and colleges, major projects of urban regeneration and social housing, and the management of prisons. In each of these areas we can show that the use of private contractors is not at the expense of the public interest or need be at the expense of terms and conditions of employees. If we can secure greater efficiency in the provision of the service, it is one means by which the public interest is advanced.
-------------------------
BOT is the mechanism of PFI and they are not independent but rather complementary in a sense that PFI uses BOT method to move. Here's another good link:*

* Excerpt :

The Private Finance Initiative, or PFI hereafter, is a new initiative to construct and operate public facilities by the private sector. It is designed to make high quality and cost effective projects possible through utilizing the strength of the private sector and through business competition. It can use the private sector’s various financing method, good services, technologies, know-how, and marketing capability. In PFI, most popular schemes are BOT and BOO.

In the BOT scheme, a government grants the private sector to finance, build and operate a public facility. The private sector builds and operates the facility mainly at their own risk for certain period (say 10 to 50 years). After a certain concession period, the facility is transferred to the government.

In the BOO scheme, the difference from BOT is that the ownership of the project remains in the private sector.

PFI are used in a rather large projects, such as railways, highways, ports, airports, water supply, waste water treatment, telecommunication, power plants and pipeline gas distribution.

The roles of the governments in a host country and the private sector are as the follow:

-Grant of concession
-Tax incentives
-Appropriate land and space
-Subsidies or any assistance if necessary
-Minimum operating income guarantees
-Support loan and standby financing, and
- Risks which private sector can not bear, such as political
risk, environmental risk and so forth.

The role of the private sector is to do the following:

- High quality and cost effective public service
- Low cost finance arrangements
- Technology and skill transfer
- Contractual schedule control
- Management of four risks, namely
--Facility completion risk
--Operating risk
--Proceeds collecting risk, and
--Investor’s risk
------------------------------
Again, I'm neither saying nor commenting on PFI or RMK 9 in Malaysia due to (again) 'it's too early to tell' and unfair to theorize before seeing end-results...

Good luck in your studies.
------------------------------
Posted: 18 December 2006 at 10:07am

Response by Su_Za

I did my PhD reseach on PFI in the UK. So, just to share with everyone some info on PFI.
...............................................
Types of PFI Projects

Basically, there are three types of projects that the government encourages within the PFI; services sold to the public sector, financially free-standing projects and joint ventures (Treasury Taskforce, 1997a: para. 1.05-1.06; Akintoye et. al, 1998; and Allen, 2003). At present, the major focus of PFI activity has been on the first of these, i.e. services sold to the public sector (Treasury Taskforce, 1997a: para. 1.05)

a. Services sold to the public sector

The provision of public services using assets that are financed, designed, built and operated by a private sector consortium and are paid for by a public body through service charges (Armstrong, 1996 and The Scottish Parliament, 1999). These are normally referred to as Design, Build, Finance and Operate (DBFO) schemes. Under the scheme, the public sector purchaser needs to be assured that services provided will give greater value for money (VFM) than the conventional procurement. Examples of the DBFO projects are:

· the provision of prison places by the private sector through designing, building, financing and operating new prisons

· hospitals where the private sector will meet the costs of the building and take on the responsibility for the provision and management of ancillary services such as cleaning, catering and maintenance (Illidge and Cicmil, 2000)

In other words, at the heart of the DBFO approach the focus is changed away from the procurement of assets to the purchase of services associated with those assets (Dick and Akintoye, 1996).

b. Financially free-standing project

This is where the project is entirely financed and managed by the private sector. The revenues for the services supplied are mainly from payment by the end users. This type of project does not require a VFM test but does require government approval (Owen and Merna, 1997). In other words, public sector involvement is limited to enabling the project to go ahead through assistance with planning, licensing and other statutory procedures. The Second Severn Bridge and the Dartford River Crossing are the examples of projects under this category (Treasury Taskforce, 1997a: para. 1.06).

c. Joint ventures

For this type of project, the public and private sector work as a partnership but the private sector retains control. The public sector investment could be in the form of grant, guarantee or subordinated debt. In return, the public sector will receive a proportional share of any profit (Illidge and Cicmil, 2000). This type of project requires a VFM test and needs to conform to these criteria:

· Private sector partners in a joint venture should be chosen through competition
· Joint venture control held by private sector
· A clear definition of the government’s contribution and its limitations
· Clear agreement of risk and reward allocation, defined and agreed in advance, ensuring that the private sector is genuinely assuming some of the risk.

The Channel Tunnel rail link, Croydon Tramlink, Manchester’s Metrolink and urban regeneration schemes are examples of joint venture projects.

The Star Global Malaysians Forum - Posted: 20 September 2006 at 5:31pm

The Star News (Courts) - September 20, 2006.

Judge: Firm did not commit offence

KUALA LUMPUR: It was a case of the wrong entity charged. A Sessions Court yesterday discharged and acquitted a subcontractor accused of a negligence that led to the death of corporate consultant Dr Liew Boon-Horng. In delivering his verdict, Judge Akhtar Tahir said he found that MWE Advance Structure Sdn Bhd had not committed any offence as framed against it under Section 20(3) of Occupational Safety and Health Act 1994.

(The section states that the person who erects or installs any plant for use by persons at work must ensure that nothing about the way it is erected or installed makes it unsafe or a risk to health when properly used.)

MWE Advance Structure was charged with failing to ensure the safe installation of a steel formwork by Higro Enterprise on the 20th floor of Block B, Plaza Damas. A representative of the company had on April 20 pleaded not guilty to the charge.

(Formworks are moulds into which concrete or similar materials are poured into at a construction site.)

Akhtar said Section 20(3) of the Act did not mention that the person who allowed the installation of the steel formwork to have committed an offence.

(The company had engaged Higro Enterprise as a specialist formwork contractor for the Plaza Damas condominium project).

Dr Liew, 35, managing consultant of Ethos Consultant, was killed when an iron mould, weighing almost two tonnes, fell onto his BMW as it was being driven into the car park of Plaza Damas last Dec 30. Akhtar said he was of the opinion that it was Higro Enterprise that had committed the offence under Section 20(3) of the Act.

"Based on the charge, the installation of the steel formwork was done by another party, which is Higro.

"It is my opinion that Higro had committed the offence and not MWE Advance Structure.

"Therefore, I have to give an acquittal to MWE Advance Structure because this offence did not exist," he said.

The judge gave his decision after hearing a preliminary objection raised by the company’s lawyer Rosli Dahlan on Sept 4, that the charge framed against MWE Advance Structure was defective. In the same court, supplier Simple Formwork Construction Sdn Bhd had claimed trial to failing to take the necessary steps to ensure that the steel formwork supplied to Higro Enterprise was safe for use.
-------------------------------
It's NOT my intention to question the judge's final ruling and I respect the court's final decision. (unless both Higro/Simple Formwork wish to contest the decision)

Alas, I'm a bit confused on charges especially being made on Simple Formwork and Higro Enterprise. I might be wrong but :

What is the real problem actually?

"Based on the charge, the installation of the steel formwork was done by another party, which is Higro.

"It is my opinion that Higro had committed the offence and not MWE Advance Structure.

"Therefore, I have to give an acquittal to MWE Advance Structure because this offence did not exist," he said.

MWE is the main contractor - (thus, it's a lesson for them that in the future), they should have a system that takes into account :

a) Criterions of selection of sub-contractors (including Higro),

b) Sample submission/inspection and test results (prior to installation) from Higro to MWE (as part/parts of contract requirements),

b) Criterions of annual performance appraisal of the sub-contractors,

c) Monitoring system during installation process.

Remember, failure in sub-contractor's work may also reflect the failure of the main contractor as well.

And where does The Client's (Client to MWE) responsibility fall under?

Excerpts from New Straight Times - 03/01/2006

On Sunday, visiting the Sri Hartamas crime scene — for that is what it may well out turn out to be — Fong had occasion to see red. Seven warnings had been served for various safety violations in the 26 months since work on the office and apartment building began. Residents, as in many other instances, complained of flying debris and noise. The contractor’s delinquency seems to have been evident enough to leave nothing amiss in the Department of Occupational Safety and Health’s inspection procedures, which gave the company a "D" for compliance. "This clearly indicated no commitment on the part of the management to adhere to the regulations and prioritise safety," said Fong.

Another excerpt - NST 02/01/2006

Failed: seven out of nine worksite inspections. That’s the safety record of the construction company in charge of the worksite from which a cement mould fell 20 storeys and crushed a management consultant to death in his car.The company, MWE Advance Structure Sdn Bhd, was served seven stop-work orders in the 26 months since construction work on Block B of the Plaza Damas serviced apartments began. It was allowed to resume work after each breach was rectified, said Human Resources Minister Datuk Seri Dr Fong Chan Onn.

The company is a unit of listed group MWE Holdings Bhd.

"MWE (Advance Structure) did not have a good safety history," said Fong.

The company was given a safety rating of D, E being the lowest rating by the Department of Occupational Safety and Health. Fong did not say what the ranking indicated.The company had also been served three compounds for safety breaches since work started on Oct 28, 2003. The last inspection before Friday’s tragic accident was on Sept 27, 2005. Among the main offences were unsafe scaffolding and the absence of guardrails. Also, load platforms had not been designed by certified engineers, and they had used unregistered heavy machinery.

On Simple Formwork - they were separately being charged for failing to take the *necessary steps* to ensure that the steel formwork supplied to Higro was safe to use.

Questions :

"Who charged Simple Formwork? Higro?", "What's the relationship between Higro and Simple Formwork? - Is Simple Formwork another supplier to Higro?"

The *necessary steps* as I understand them are (not limited to the following) :

method statement, work/manufacturer's instruction, standards and codes of practice, monitoring and follow-up, sample submission, proper inspections, specification adherence etc.

If Simple Formwork seem to have all these, then check again, it may be problems of insufficient/unsuitable installation methods or monitoring/follow-up from them on Higro during installation process.

On Higro, if I read the first news right, it says something like :

(The company had engaged Higro Enterprise as a specialist formwork contractor for the Plaza Damas condominium project).

and

In the same court, supplier Simple Formwork Construction Sdn Bhd had claimed trial to failing to take the necessary steps to ensure that the steel formwork supplied to Higro Enterprise was safe for use.

It's odd that Higro failed to realize during installation that the 'formwork is NO GOOD?" being a specialist?

The charges on Higro is 'fail to ensure steel formwork properly installed'

The charges for Simple Formwork is 'formwork is found not safe to use?'

How do I connect the two?

Actually, nobody thought that the tragedy will happen on the first place - that's why too many parties 'took for granted' on the 'specs' I've mentioned above. When everybody got the 'sudden electrical shock' due to this unexpected fatal accident, I hope it's not the typical 'finger pointing' under the pretext of law that is happening at the moment.
-------------------------------
Posted: 22 September 2006 at 9:37pm

Well, it appears that my last message has drawn so many attention from so many parties. Some were good, some were inquisitive/curious and some simply asked me to 'reconsider' my comments. Please register as GMN members and put your comments here and we can start a whole new 'show' in a more healthier way. The following is one of them (good ones) that appeared in another forum.

Assalaamu'alaikum wbr.

Terlebih dahulu, izinkan saya merakamkan tahniah kepada tuan/puan semua kerana terlibat dalam forum ______. Ini merupakan tanda betapa tingginya keprihatinan/perjuangan tuan/puan semua terhadap keselamatan dan kesihatan pekerjaan di Malaysia.

Walaupun saya tidak pernah terlibat secara aktif dalam forum ini, namun kita semua mempunyai matlamat yang sama demi 'menyelamatkan seberapa banyak nyawa' di tempat kerja menerusi sistem pengurusan keselamatan dan kesihatan pekerjaan yang dipayungi oleh Akta Keselamatan dan Kesihatan Pekerjaan 1994.

Saya ingin menarik perhatian kepada e-mail yang dihantar oleh saudara____ (____) dan pendapat beliau serta lain-lain pendapat bernas dalam forum ini hasil daripada komen saya di Global Malaysian Forum di bawah kelolaan akhbar The Star. (saya sarankan _____ membaca lain-lain komen dalam forum yang sama dan tidaklah hanya melihat kepada komen berkenaan sahaja, kerana saya telah mengikuti kes ini semenjak ianya bermula lagi)

a. Saya tidak mewakili dan tidak pernah terlibat dengan mana-mana pihak dalam Plaza Damas,

b. Pendapat saya adalah pendapat peribadi serta bukanlah ingin mempersoalkan kes yang sedang dibicarakan atau mempersoalkan keputusan mahkamah sepertimana dakwaan ______ (perkara ini juga telah saya jelaskan kepada beberapa pihak tertentu yang memberikan maklumbalas terhadap komen saya dan semuanya saya kira telah diselesaikan) Pendapat saya lebih kepada mengingatkan kontraktor utama supaya menyemak semula sistem untuk ditingkatkan (terutamanya dalam aspek pemantauan dan penilaian yang lebih efektif)

c. Saya tidak pernah mengenali mangsa secara rapat - cuma kebetulan mendiang pernah terlibat dalam pembikinan KPI untuk GLC di mana saya juga terlibat dalam perkara yang sama tetapi menerusi firma perundingan yang berbeza,

d. Saya bersetuju dan telah menyimpulkan dalam pendapat berkenaan bahawa - kemungkinan ada elemen 'tuding-menuding' atau 'tuduh-menuduh' (blaming culture/fingerpointing) sedang berlaku (seperti kebiasaan). Saya harap undang-undang dapat menyelesaikan masalah ini seadil-adilnya supaya tidak ada pihak yang tidak bersalah tiba-tiba dipersalahkan pula.

e. Cuma saya juga mengharapkan agar pihak klien - kontraktor utama - sabkontraktor/vendor/pembekal tidak mengamalkan sikap mengambil mudah terhadap pelaksanaan keselamatan & kesihatan pekerjaan - walaupun telah ada ribuan sijil/persijilan sekalipun atau dokumentasi yang 'canggih' atau pernyataan dasar yang begitu indah dan lain-lain.

Walaubagaimanapun, saya ingin merakamkan ucapan terima kasih sekali lagi kepada tuan/puan semua dan _____ kerana sudi membaca pendapat saya yang tidak seberapa itu.

Wassalaamu'alaikum wbr.

Salam Hormat Seperjuangan
Nik Zafri

Having 'too much' experience in various business, especially in the fields of sales and marketing, I would say that MLM is still the BEST way of doing business provided that you follow the rules/regulations and not break it or trying to amend it.

It's not about the business plan that contributes to the MLM success, but it's the responsibility and commitment by the members in order to reach the sales/marketing target.

Another reason is the effective communcation with uplines and downlines. (short notices on changes are not acceptable)

Another common reason with MLM is again, human...We tend to be too much obsessed with the Business Plan rather than the product we sell. Thus, the product knowledge is still lacking behind due to thinking of how to get so much money based on the business plan. (again I'm not blaming the system, but people)

Unfortunately also, the original purpose of a business plan that promotes the conventional hardwork, patience, long term and reap profits later - is now loosing its popoularity with the :

a) drastic changes made in the original businessplan flow or strategy,

(you know..the rhetoric, hybrid system (either approved by the authorities or self-approved or self-modified by the 'super top uplines')

Please note that, binary is still binary, MLM is still MLM and single level is still single level. It just the choice that suits you that counts!

b) competition from the rhetoric/so-called e-commerce,

c) competition from the Get Rich Quick Scheme,

But the above (a)-(c) are really related to "How to take a shortcut to become rich" and this will make so many people attracted to 'money' (who wouldn't?) and tend to forget other good business/sales/marketing practices.

I'm not denying the fact of GENUINE ones but there are too much 'fakes' or 'doubtful' ones.

I'm sorry, some people might find my statement a bit offensive but I have taken almost 2 decades researching and involving myself in too many programmes and business plans to find out that the good ol' MLM (even single-level) is still the best.

Here's one of them (in Bahasa Malaysia)

http://www.geocities.com/nikzafri/qsale.htm (See Below)

As the saying goes "The old school is still the best school"

My experience dictates my belief in working both hard and smart = busy!
-------------------------------

14 Tonggak Kualiti Diri dan sumbangannya terhadap kejayaan Sistem Jualan Langsung dan Pemasaran Bertingkat

1.0 Kepimpinan dan Pengurusan

Tema : Menentukan Matlamat dan Komitmen Diri

§ Mematuhi nilai-nilai murni perniagaan termasuk aspek undang-undang dan etika (seperti Akta Jualan Langsung untuk pelan perniagaan yang betul, Akta Insitusi Kewangan dan Perbankan (BAFIA) bagi perniagaan membabitkan pelaburan wang/tukaran mata wang asing, pengambilan deposit yang bersabit dengan Suruhanjaya Sekuriti, KPDNHEP/SSM, Akta Siber/Telekomunikasi & Multimedia bagi perniagaan menerusi internet/e-dagang - tertakluk pada syarat-syarat yang generik dsb)

§ Melaksanakannya pada keseluruhan aspek kerja

§ Mengetahui tugas masing-masing

§ Menangani amsalah secara bijaksana

§ Memiliki ilmu pengetahuan yang mencukupi

§ Mewakili ‘organisasi yang ditubuhkan sendiri’

§ Sentiasa belajar dan mengajar

§ Rasa bertanggungjawab dan akauntabiliti

§ Rasa pemilikan

2.0 Sistem Kualiti Diri

Tema : Sistem yang memastikan kepatuhan terhadap nilai-nilai murni perniagaan

§ Mempelajari sistem dari rakan yang telah berjaya

§ Mempunyai segala sumber yang mencukupi

§ Kaedah yang kena pada tempat dan masa

§ Membuat kajian yang mencukupi

§ Pelan Perniagaan yang paling sesuai dengan kemampuan diri

3.0 Semak Semula

Tema : Sebelum, Semasa dan Selepas Menjalankan Transaksi

§ Segala keperluan dipenuhi

§ Berpuas hati sebelum, semasa dan setelah transaksi

§ Penyelesaian bermasalah sebelum berlaku (introspective/collective brainstorming)

§ Keupayaan untuk mencapai dan meningkatkan sasaran secara berterusan

RANCANG - BUAT - PERIKSA - BERTINDAK (Plan-Do-Check-Act - PDCA)

4.0 Pelan Rekabentuk Perniagaan

Tema : Kawalan dan Rekabentuk Pelan Perniagaan

§ Menyalurkan maklumat secara konsisten sehingga ke peringkat yang paling bawah dan telus.

§ Mengukur keberkesanan pelan perniagaan

§ Memahami dan mempraktikkan pelan perniagaan

§ Mengukur tahap pencapaian pelan perniagaan dengan betul dan tepat

§ Sebaran perubahan/kelainan adalah hasil perbincangan bersama

§ Membandingkan keberkesanan sebarang perubahan dengan yang terdahulu.

5.0 Kawalan Dokumen, Data dan Rekod

Tema : Dokumen, Data dan Rekod

§ Contoh Dokumen – segala jenis borang termasuk sistem pemantauan penajaan, pendapatan dan jualan, baucar, kupon, risalah/katalog produk, dokumen akaun (spt. pesanan belian dsb) yang berkaitan

§ Contoh Data – Maklumat mengenai pelanggan/ahli/rakan kongsi, jumlah sasaran dsb.

§ Contoh Rekod – Produk yang paling laris (hi-traffic), Aduan, Komen dsb. yang berkaitan.

§ Mempunyai dokumen, data dan rekod terkini

§ Dokumen lama diasingkan (jika perlu dimusnah/dipulangkan kembali dsb.)

§ Penyimpanan yang bersistematik – indeks, no rujukan, kronologi mudah dicari, yang disah dan diluluskan dsb.

6.0 Pembelian

Tema : Kecukupan Spesifikasi dan Persediaan Diri

§ Mengetahui spesifikasi produk yang bakal dipromosi

§ Mengenali ahli/rakan kongsi dan pelanggan/pengguna

§ Membuka ruang interaksi antara satu sama lain seperti dialog dan pertanyaan

§ Mengelak sebarang ketidakpuasan hati

7.0 Pengenalan dan Kemudahan Carian

Tema : Mengenali Kawasan Anda

§ Mengetahui kawasan yang akan dibekalkan perkhidmatan – Contohnya kawasan A=Outlet A

§ Memastikan kecukupan produk yang dipesan

§ Mengenali dan mampu mencari produk yang dikehendaki dalam masa yang pantas, cekap dan ekonomik.

8.0 Kawalan Proses

Tema : Bekerja Mengikut Proses Yang Telah Ditentukan

§ Mengetahui cara dan kaedah yang sistematik – dimana perlu bermula dan dimana perlu diakhiri

§ Sentiasa merujuk kembali kepada dokumen, data dan rekod serta rakan kongsi/ahli yang lebih arif jika kurang memahami sesuatu perkara – jangan bertindak sendiri

9.0 Kawalan Masalah

Tema : Penyelesaian masalah secara bijaksana

§ Bertanggungjawab dan akauntabiliti ke atas sebarang masalah yang timbul.

§ Sebarang masalah yang timbul perlu diselesaikan dengan seberapa segera – tanpa bertangguh- bincang sesama ahli/rakan kongsi jika perlu.

§ Jika masalah dalaman selesai – masalah luar pasti selesai

LAGI

Accreditation - done by an independent institution/governing body to certify another institution for its' services & products (usually by means of a certificate) - Accreditation can also cover premise, modules, lecturers etc. etc.

Certification - done by an Accredited Certification Institution/body to organizations requiring such certification to boost confidence in their products and services. Accreditation is given based on specific trades/industrial expertise displayed by the certification body.

Consulting - a certified third party/person who guide organization to be certified based on law, standards and specifications
---------------------------
Hakcipta Terpelihara 1998 dan 2000 Nik Zafri bin Abdul Majid. Segala bentuk penyalinan kembali harta intelek tanpa kebenaran adalah salah di sisi undang-undang (Nota : kemaskini - 2005/12 & 2006/11 - Rujukan : Sumber dari IAF, SC, TAG, ISO IEC dll)

AKREDITASI, PERSIJILAN DAN PERUNDINGAN - ISO

Oleh : Nik Zafri bin Abdul Majid


(Artikel ini sepatutnya disiarkan oleh sebuah akhbar tempatan tetapi telah dibatalkan tanpa alasan yang munasabah)

Kita sering terbaca mengenai firma-firma dari segenap pelusuk dunia mendapat persijilan ISO 9000 atau ISO 14000 atau lain-lain yang berkaitan dengan bidang/industri pembekalan perkhidmatan/produk masing-masing. Namun apa yang saya perhatikan, masih terdapat kekeliruan dalam penggunaan perkataan 'akreditasi' dan 'persijilan' Ada yang juga yang masih kabur dengan etika, fungsi dan had kuasa asas sebuah firma perunding, badan persijilan dan lembaga/badan akreditasi (ISO) Izinkan saya untuk mengupas sedikit secara ringkas persoalan yang kompleks ini sekaligus menghilangkan segala kekeliruan yang timbul.

Setiap piawaian spesifik ISO dan segala perinciannya berada di bawah penyeliaan langsung Jawatankuasa Teknikal Organisasi Standard Antarabangsa (ISOTC) Contohnya ISOTC 176 untuk ISO 9000 dan 207 untuk ISO 14000. Perincian elemen/komponen pula dilakukan oleh jawatankuasa-jawatankuasa kecil (SC). Kadangkala untuk membantu menguatkan lagi tonggak SC, Kumpulan Penasihat Teknikal - TAG (Technical Advisory Group) ditubuhkan.

Biasanya, piawaian yang dijadikan aras ukuran/model antarabangsa oleh ISOTC adalah berpunca daripada :- a) Piawaian tempatan negara-negara terpilih, umpamanya, Piawaian British BS 7750 telah dijadikan asas utama kepada EMS ISO 14000.

b) Penyelidikan dan Pembangunan serta penemuan baru sesuatu produk atau proses seperti penentukuran, ujian dan sebagainya daripada negara-negara terpilih yang kemudiannya dijadikan asas dan pemangkin kepada kewujudan piawaian-piawaian baru atau penyemakan semula piawaian-piawaian terdahulu.

c) Undang-Undang tertentu, umpamanya, yang berkisarkan Alam Sekeliling atau Keselamatan dan Kesihatan Pekerjaan ataupun Kejuruteraan.

d) Resolusi Persidangan-Persidangan Dunia umpamanya Geneva, Piagam Bangsa-Bangsa Bersatu, dll.

Lembaga/Badan Akreditasi (juga dikenali sebagai correspondent member) biasanya ditubuhkan berlandaskan peruntukan undang-undang tertentu yang juga berkaitan dengan ISOTC. Mereka berkuasa penuh untuk menauliahkan/mengakreditasikan Badan Persijilan berlandaskan Panduan ISO/IEC (Contohnya 67 untuk ISO 14000) mengikut skop-skop kerja yang diluluskan sahaja. Contohnya sesebuah badan persijilan dapat mengeluarkan sijil ISO dalam skop kerja kejuruteraan aerospace untuk sesebuah organisasi/industri tidak semestinya boleh meluluskan persijilan untuk skop kerja farmaseutikal. Jadi organisasi farmaseutikal perlu mencari badan persijilan lain yang mampu meluluskan persijilan berkenaan.

Ringkasnya, Badan Persijilan pula berperanan antara lain :

a) Menilai/mengesahkan sistem ISO sesebuah organisasi bagi tujuan persijilan,

b) Mensijilkan organisasi yang layak,

c) Membuat penilaian susulan untuk memastikan kesinambungan penyelenggaraan dan peningkatan berterusan sesebuah organisasi setelah disijilkan,

d) Kebiasaannya, menjalankan latihan-latihan teknikal dan pengurusan yang menghalatuju kearah pemeriksaan yang bersabit dengan ISO (contohnya Penilaian Bertauliah dan Berdaftar)

Setakat artikel ini ditulis, tidak pula jelas dalam panduan-panduan ISO/IEC bahawa badan persijilan boleh mengendalikan perkhidmatan (d) ini kecuali dalam kes-kes seperti usahasama penajaan dan pengelolaan dengan perunding, pertubuhan-pertubuhan atau agensi yang berkaitan. Namun dari kajian saya mengenai draf/blueprint ISO 9001:2000 (versi terbaru ISO 9000 dijangka akan diterbitkan bulan November 2000) menunjukkan kekeliruan ini sedang diperjelaskan oleh ISOTC dan Forum Akreditasi Antarabangsa (IAF) menerusi Panduan ISO/IEC yang baru..

Selain itu, Badan Persijilan juga berperanan aktif dalam jawatankuasa teknikal tempatan untuk menjalankan ujian rapi secara saintifik serta R & D keatas draf/blueprint piawaian yang bakal diperkenalkan. Ini penting untuk menyesuai dan mengorientasikan elemen-elemen piawaian berkenaan dengan suasana setempat.

Pakar Perunding pula secara asasnya hanya memberikan khidmat nasihat, latihan, perundingan dan pembangunan sistem ISO kepada organisasi yang menuju kearah persijilan. Secara etikanya, mereka perlu bebas daripada sebarang ikatan langsung dengan badan persijilan dan akreditasi. Namun begitu mereka perlu berdaftar dengan mana-mana badan/agensi (afiliasi) mengikut peruntukan undang-undang jika ada.

Di peringkat antarabangsa, jarang saya mendengar samada :

a) Lembaga Akreditasi (ISO) dan Badan Persijilan menjadi selaku Pakar Perunding, atau

b) Firma Perunding diberikan akreditasi untuk mengeluarkan sijil ISO tanpa melalui Badan Persijilan.

Penilai-penilai ISO dari firma perunding biasanya memiliki pengalaman dan pendedahan yang luas kepada berbagai jenis industri. Mereka juga merupakan penilai bertauliah/berdaftar serta ahli pertubuhan-pertubuhan professional (afiliasi) dalam bidang kualiti, keselamatan & kesihatan pekerjaan, alam sekitar, pengurusan dll.

Sememangnya, dalam membicarakan subjek yang sungguh luas ini, masih banyak perincian yang boleh dilakukan. Umpamanya saya meramalkan bahawa bidang akreditasi yang meliputi pendidikan/akademik, kemahiran/ketrampilan (LAN-MOE/MLVK-MHR), perkhidmatan, produk dll akan berpayung di bawah satu Lembaga Akreditasi (bebas) sahaja untuk memudahkan kerja-kerja penauliahan - tanpa sebarang kecenderungan Ini telah pun berlaku di kebanyakan negara-negara Eropah terutamanya UK.

Antara kebaikan-kebaikan hasil penjelasan saya ini ialah :-

a) menghilangkan kekeliruan dalam peristilahan dan mengurangkan tindihan kuasa pihak-pihak yang terbabit.

b) menjadi pemangkin kepada anjakan paradigma professional dalam konteks ISO yang semakin diabaikan.

c) mewujudkan 'quality spirit' yang asli sekaligus menghapuskan unsur bias.

d) mengecap hasil penerimaan sebenar produk/perkhidmatan di pasaran antarabangsa oleh industri-industri dan bukan hanya 'lip service' semata-mata dengan sekeping sijil yang belum tentu dapat dibawa kemana-mana.

e) organisasi perlu lebih professional dan mampu memahami sedalam-dalamnya apa-apa yang telah dijelaskan diatas demi ketepatan terutamanya dalam membuat pilihan yang betul dan tepat serta menguntungkan dari segi jangkapanjang operasi mereka.

Nota Penulis (selaku perunding berpengalaman (domestik/antarabangsa) > 15 tahun) : Dalam keghairahan semua pihak yang mempunyai kepentingan dalam 'jaringan akreditasi/persijilan/perundingan' yang luas ini - harus perlu memahami dan menumpukan perhatian kepada segmen pasaran masing-masing kerana ketiga-tiga tret ini adalah complementary dan adalah tidak wajar dijadikan asas untuk 'bertanding secara tidak sihat' atau mencari kepentingan 'perniagaan berlebih-lebihan' (tetapi tiada hasil akhirnya kerana kurang pengalaman) kerana tidak ada mana-mana pihak pun yang akan menang dan akan kalah lebih-lebih lagi dalam dunia dan era 'Knowledge Management' dan globalisasi ini.