2009 Annual Report - ChartNexus

Cost Efficiency
Managing Director’s Review
Cost management has become all the more important in this challenging operating
environment where lower demand has been exacerbated by the increased cost of raw
materials and components.
In view of this, PROTON continued to strengthen collaborations within our product
planning and development, manufacturing assembly, procurement and cost control
departments to minimise wastage while maximising cost efficiencies. At the core of our
cost efficiency measures is the reduction of the Bill of Materials (BOM) cost such as in
carrying out global sourcing for major material suppliers beyond Malaysia. We have been
identifying opportunities to tap into the supply chain of these major suppliers to reap the
benefits of lower material costs.
Apart from that we have also carried out development programmes for our existing
vendors to improve and expand their manufacturing competency to include research and
development capabilities. By reducing their costs of product development outsourcing, the
vendors will be able to offer competitive prices of parts and materials not only to PROTON
but to other major automotive players within and outside the country.
PROTON 2009 ANNUAL REPORT
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