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HIGH IMPACT OF TECHNOLOGY ADOPTION TOWARDS SMEs OPERATION PERFORMANCE

SITI SAFIAH BINTI JAAFAR

Faculty Technology Management and Technopreneurship

Universiti Teknikal Malaysia Melaka

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LETTER OF SUPERVISOR CONFIRMATION

I, hereby declare that have read this project paper. This project paper is submitted to Universiti Teknikal Malaysia Melaka as a requirement for completion and reward of Degree Bachelor of Technology Management (Technopreneurship).

Signature :

Name of Supervisor :

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HIGH IMPACT OF TECHNOLOGY ADOPTION TOWARDS SMEs OPERATION PERFORMANCE

SITI SAFIAH BINTI JAAFAR

Submitted in partial fulfillment of the requirement for the Bachelor of Technopreneurship (Honours)

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DECLARATION OF ORIGINAL WORK

“ I hereby declare that this project paper is result of my independent work except the summary and experts that have been specifically acknowledgement ‘’

Signature :

Name :

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DEDICATION

I would like to dedicate the appreciation for my beloved mother, Jamilah Binti Saad and beloved father Jaafar Bin Hashim who are strongly give moral support and motivation in order to complete this research study. Next, I would like to thank my supervisor Prof.

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ACKNOWLEDGEMENT

Praise to ALLAH S.W.T, the most gracious and most merciful, I would like to express my sincere gratitude to my Supervisor, Prof. Dr. Salleh Yahya for giving me full support, guidelines and motivation for me to do this research. A special thank to my beloved parent and families for giving me advice and their prayers for me.

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ABSTRACT

The purpose of this study was to identify factors influencing the productivity level in operational by adoption of new technology 1) Conveyor, 2) Automate Storage and Retrieval Systems (AS/RS) and the use of programs and actions for operation enhancement. The study looked at existing theories 1) Lean management, 2) Total Quality Management, and Just in Time and strategies for productivity improvement that are applicable to SMEs. A survey methodology has been applied for this research to 100 SMEs by using questionnaires. This research is focusing on how SMEs enhance their operation performance in terms of material handling management.

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ABSTRAK

Tujuan kajian ini adalah untuk mengenalpasti faktor-faktor yang mempengaruhi tahap produktiviti di dalam pengoperasian melalui pengadaptasian teknologi baru 1) Konveyer 2) Penyimpanan Automasi dan Sistem Retriv dan program yang digunakan serta tindakan untuk peningkatan dalam pengoperasian. Kajian ini melihat kepada teori yang sedia ada 1) Lean Management 2) Total Quality Management 3) Just in Time dan strategi – strategi yang boleh diguna pakai dalam IKS untuk meningkatkan produktiviti. Kaedah “survey” akan digunakan bai mengumpul data untuk 100 IKS melalui kajian soal selidik. Kajian ini menumpukan bagaimana IKS meningkatkan aktiviti operasi dalam konteks pengurusan kawalan barang.

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4.5.2.4 Hypothesis 4 74 4.5.2.5 Hypothesis 5 74

4.5.3 Correlation and Regression : Relationship between Independent variable and Dependent variable 75

CHAPTER 5 DISCUSSION AND CONCLUSION

5.1 Discussion 80 5.2 Conclusion 86 5.3 Limitation 86

CHAPTER 6 RECOMMENDATION

Suggestion for further study 87 Refferences 89

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xiii

Independent variable and Moderating variable 78 4.37 Regression Coefficient analysis : Lean Management

Independent variable and Moderating variable 78 4.38 Correlation Relationship between Just-in-Time Independent

variable and Dependent variable 79 4.39 Regression Coefficient between Just-in-Time Independent

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LIST OF FIGURE

NO FIGURES PAGES

3.1 Theoretical framework 30 3.2 Research framework 32 4.6 Frequency analysis Respondents Background

by Age 54 4.7 Frequency analysis Respondents Background

By education 56 4.8 Frequency analysis Respondents by Position 58 4.9 Frequency analysis Respondents by Number

of employee 59 4.10 Frequency analysis Respondents by Sale or Profit

per year 60 4.11 Frequency analysis Respondents by Level of Growth 62 4.12 Frequency analysis Respondents Length of Business 63 4.13 Frequency analysis Respondents by Types of Industry 64 4.14 Frequency analysis Respondents conveyor technology 65 Practice

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1.2 Introduction of operational performance

According to Alberto and Javier. 2002, operational performance is the subject of measurement, evaluation and conceptualization in a company that is a recurrent theme in the different areas of the academic literature. Following a similar line, Kaplan and Norton (1992) believe that the traditional measurements of financial performance are no longer valid for today’s business demands. Therefore, they consider that operational measurements of management are needed when dealing with customer satisfaction, internal processes and activities directed at improvement and innovation in the organisation, which lead to future financial returns.

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1.3 The Four Keys of Operational Performance

1.3.1 Operation improvement

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4 Every SME has their own goal. Engineered standards developed through time and motion studies are an objective tool to measure individual performance. If the goals aren’t considered realistic, associates become discouraged. Engineered standards are the best way to provide accurate and fair goals for associates as standards take multiple production variables (e.g., unit, carton, and pallet) into consideration. As product mix changes, the standard adjusts accordingly. Also, standards allow them to set one performance goal facility-wide – 100 percent performance in operational area.

1.3.4 Performance Incentive Programs

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7 The improvement of energy efficiency can easily put to the operation efficiency and equipment efficiency for most energy systems. It holds true for belt conveyors. It is also noted that equipment efficiency, and consequently operation efficiency, decides performance efficiency which is usually reflected by various external indicators, such as energy consumption, energy cost, or emission of greenhouse gas. On the other hand, a performance indicator can drive an operation in the optimal efficiency mode. As a conclusion, by applying the conveyor technology in operational level, it may reduce the operational cost and improve the cycle time in material handling.

1.5 Problem statement

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