Sime Darby plantation aims for RM550 mln in operational benefits
KUALA LUMPUR: Sime Darby Plantation Bhd aims to deliver operational excellence benefits worth RM550 million by the end of the financial year 2020 through its newly-launched Operational Excellence and Innovation Business Management Strategy 2.0 (OEIBMS 2.0).
Executive deputy chairman and managing director Tan Sri Mohd Bakke Salleh said the benefits were in terms of cost-savings, cost avoidance, and improved revenue generation derived from implementing various Lean Six Sigma (LSS) projects across the company.
“With the OEIBMS 2.0, we are ready to continue our relentless focus and effort towards higher operational excellence and productivity, while aligning our vision of becoming the leading global integrated palm oil player,” he said at the Sime Darby Plantation Operational and Productivity Excellence (OPEX) Summit yesterday.
The summit was officiated by International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
Mohd Bakke said Sime Darby Plantation’s OEIBMS 2.0 would exceed 57 per cent more than RM351 million worth of operational excellence benefits achieved over a five-year period under the LSS Business Management Strategy launched in 2013.
As at the end of 2017, the group achieved cumulative benefits of RM967 million, exceeding its initial target set at RM775 million.
A total of RM351 million of these benefits were derived from Sime Darby Plantation, exceeding the group’s own cumulative target of RM245 million by 42 per cent.