UDA DAYAURUS MODULAR CONCEPT

SECTION I - UNDERSTANDING THE CONCEPT

Basic Features

1.1 Firstly, in this concept there are neither workers nor employees. The operators are all individual subcontractors. We are taking outsourcing to a new height.

1.2 The Main Contract is subdivided into elements which we choose to call modules.

1.3 The content or scope of each module is designed to suit the capacity of one or two operators.

1.4 Each Module is assigned with a permanent Group Operator (comprising either 1or 2 operators). This feature will cultivate the spirit of ownership which is also an important feature in carrying out the audit to single out only the relevant operator.

1.5 The modular operators being subcontractors and not employees make it possible for the Main Contractor to engage and terminate the contract at short notice thereby providing effectiveness in the auditing exercise. The audit for quality performance is carried out for the purposes of terminating the contract. This is an effective tool in establishing quality performance without the need of having supervisors.

1.6 This concept has succeeded in maintaining high quality standard while increasing the capacity by 70 to 100 %.

1.7 Due to the higher productivity and reduction in supervision costs, the operators are paid 50 to 100 % more than what they would have earned as a worker or employee.

1.8 The zoning is designed to reasonably fit in ample work elements to the capacity of an average operator, this concept allows a super industrious and skilled operator to be given more than one zone subject of course passing the quality audit in the zones under him.

1.9 Due the strict adherence to quality audit, the operators are given specification by results not by frequency which is relevant only to the conventional concept which employs supervisors.

Basic Objectives

2.1 Increasing productivity

Admittedly this factor is desirable due to win-win situation it would avail to the contractor and to the operator. It conjures a picture whereby fewer operators are needed to achieve the same results. The contractor shall benefit from the reduction of talent management costs and problems related to it.

2.2 Increasing income of operators

The contractor is able to pay better income due to the reduction in numbers of operators and the elimination of supervision costs. This makes it possible to find local and legal operators instead of illegal immigrants.

2.3 Increasing quality

The contractor is able to deliver the quality expected by the client and the public due to the effectiveness of auditing and the tools to terminate the contract.

SECTION II - MODUS OPERANDI

3.1 The main contract may comprise of several main systems e.g. M&E, Cleaning, C&S, Landscaping, Security Guards and Car Park management system.

3.2 Each system is subdivided into sub-systems e.g. MVAC, Fire-Fighting, BAS etc.

3.3 Each sub-system is then divided into modules or zones, which becomes the basic element of the subcontract.

3.4 Each modular contract will be awarded to a Group called KMO (Kumpulan Modular Operator). In most instances this KMO is a single operator. However, in cases like MVAC system or Gondola Operation we would award it to a Group comprising of 2 operators which we would designate as KMO1 and KMO2.

3.5 We appoint an entrepreneur to be a Master Operator (MSO) to manage these various sub-contracts. The master operator will ensure quality of work consistent with the “Key Performance Index” (“KPI”) set by UDA DAYAURUS. The role of the Master Operator is to provide/supply operators, train them and audit them including terminating the KMOs if necessary. For these efforts, the MSO is paid a fee ranging from 10% to 24 % of the costs of all the KMOs under his team. He is also given a profit sharing fee on a monthly basis for each complaint-free month. As an entrepreneur he has a reward for being able to be effective in managing more KMOs in his team. Inevitably, the ultimate remedy for non-performance for an MSO is also termination.

Zoning Criteria

These factors include: -

4.1 Flow traffic
4.2 Type of finishes
4.3 Type of M&E System
4.4 Number of Toilets
4.5 Floor Area
4.6 Client’s operational hours

Other Details

5.1 Uniforms – they are required to wear uniforms and safety gears at all time not only for security reasons but also to reflect professionalism

5.2 Insurance – they are insured against any accident depending on the nature of the work.

5.3 Profit Sharing – depending on the design of the module based on the zoning criteria, any profit sharing is only payable every month for each complaint-free month to emphasise the seriousness of quality customer service expectation.

5.4 An important feature that must be allowed is that as a subcontractor, an operator can appoint a substitute to replace him as long as the scope of the contract can be carried out satisfactorily by his replacement. Due to this flexibility the subcontract fee is not deducted for no-show but the contract is terminated if the result is not achieved.

5.5 Types of Modules
For simple administration we limit the cleaning modules to only 2 types:

• Short Modules – where the operation hours are limited to 10 hours per day in a 6-day week, the contract fee is RM900 per month and

• Long Modules – where the operation hours are limited to 12 hours per day in a 7-day week, the contract fee is RM1200 per month

For M&E modules there is only 1 type, each module will consist of 2 modular operators:

• KMO1 – the skilled artisan, electrician, plumber, wiremen etc who provide the leadership and expertise, he is paid a contract fee of RM1500 per month with RM500 profit sharing for zero complaint in the month.

• KMO2 – the handyman or fitter, he is paid a contract fee of RM1000 per month with RM500 profit sharing for zero complaint in the month.

SECTION III – APPRAISAL

It is unthinkable after implementing the modular system that one would go back to the conventional outsourcing alternatives whereby the number of cleaners and the number of supervisors are pre-determined by the client. The frequency of the task elements were also prefixed in the document of specification. The contractor would not benefit from investing in machines, chemicals or high productivity operators, in fact he would be adversely affected.

Merits

6.1 No supervision costs

6.2 Termination is easy
Modular Operators (KMO) are constantly on their toes as their performances are based on end results. Failure of delivering the end result would lead to termination of their subcontract with immediate effect. What is so effective in the system that made this possible to implement is the fact that auditing results is objective, easy, consistent and fair.

6.3 Ownership leads to positive competition.
It removes the veil of group irresponsibility which breeds laziness.

6.4 Modular concept directly contributes to higher work productivity.
For example a KMO (cleaning) is able to clean an area of 20,000 to 30,000 square feet compared to 5000 to 10000 sq ft only, or a modular operator (Modular M&E) is able to cover an area of 15,000 to 25,000 square feet or 4 floors, KMO carparking can manage up to 400 car-bays single-handedly without the need of a 4 shift system.

6.5 There is no restriction on operation hours. This is particularly useful for building which operates longer hours like hospitals, mosques, shopping complexes, factories.

6.6 Being subcontractors, there is no contribution or deduction for EPF or SOCSO.

Demerits of Non-Modular System

7.1 Salaries offered to workers are very low.
RM 600 – 650 per month is below poverty line - thus the local workforce is reluctant to take these jobs. This has resulted in the influx of foreign workers and illegal immigrants.

7.2 Low productivity – High idle time, shift system requires more workers.

7.3 Low investment in mechanisation (no benefit when the total number of workers had been set in the contract).

Conclusion

This concept was conceived in 1997 and has since been implemented in most buildings managed by UDA DAYAURUS. In that time we had debugged the system and ironed-out its teething problems. We are available to share our experiences.

It is a concept that encourages high productivity and quality. It is a win-win partnership between the sub-contractors and the main contractors. It eliminates wastage in supervision and develops a hands-on culture.

We in UDA DAYAURUS will offer our assistance to anybody interested to implement a similar concept for the sake of bringing productivity in our country to a new plane as envisioned by our Prime Minister.

Ir. Wan Mohd Yusoff Wan Othman

(GM from 1982 ~ 2006)