Azman Shah Mohamed Noor

Delivering Strategic, Tactical, and Cultural Operational Excellence Deployment
Azman Shah Mohamed Noor, Vice President, Head Operational Excellence, Sime Darby Plantation Berhad, Malaysia

  • Tactical deployment alone is no longer sufficient for Operational Excellence. A holistic deployment builds the Strategic, Tactical, and Cultural together. What does this mean to the organisation?
  • Strategic stewardship is having clear vision and committed action. How can you align your strategy to business goals?
  • Tactical development is all about building people. What does sustainable tactical development look like?
  • Cultural transformation is a change from within. Where do you start and what mechanisms are there to explore?

Before the launch of Sime Darby’s Lean Six Sigma (LSS) Business Management Strategy in 2013, LSS in Sime Darby recorded savings of merely less than RM 15 million annually. The true value of LSS to Sime Darby was questioned critically by senior management at that point of time. In answering to the call of action, the team led by Azman Shah Mohamed Noor carried out an intense benchmark study on the value and returns of deploying LSS. One of the study’s references, iSixSigma magazine (2007 issue) stated that “Six Sigma deployments contribute an average 2% of total revenue per year for about 53% of Fortune 500 companies”.
In 2012, the revenue generated by Sime Darby was approximately RM 40 billion, which 2% of the total revenue translates to a potential of RM 800 million contribution in benefits within one year. Striving to be within the ranks of the Fortune 500, the team then moved to propose to senior management, the first ever LSS target for Sime Darby, to contribute 1% of total revenue (RM 400 million) at its 5th year of deployment. The target represents the measurement of LSS’s paradigm shift in Sime Darby, transforming from being only a statistical improvement tool to a Business Management Strategy.
Sime Darby launched the LSS Business Management Strategy in February 2013 to deliver RM 775 million in cumulative benefits over 5 years (Financial Year 2017) by achieving operational excellence and capitalizing on cross-divisional synergies between all 5 business sectors (Plantation, Property, Motors, Industrial and Logistics).

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