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The true sign of intelligence is not knowledge but imagination.”
- Albert Einstein


When we speak of computer simulation, the thought that comes into most people's mind is some kind of 3D graphic animation and they wonder if this can actually help them in their business.

Computer Simulation Helps Reduce Manufacturing  and Prodct Development Costs

I started my career in computer simulation, specifically Finite Element Analysis (FEA) in Malaysia in 1999 with a company that resells Ansys, a general purpose finite element software. Only the foreign owned MNC's were using engineering simulation tools like ANSYS, MSC.Software, LMS and Abaqus. In fact, it was the MNC's that were driving the business for the local FEA vendors. The only local Malaysian company using simulation was Proton, but that was only limited to components and not the whole assembly.

That was in 1999. What about 2006? We can add Petronas to the list, but who else?

So the question begs, why arent Malaysian companies using simulation to help push their business onto the next level?

Return on Investment (ROI)

To the contary to what most people would think, money is not the main issue. Money is a close second but its not the stumbling block. The stumbling block seems to be the perception that simulation is only a toy, it's not 100% accurate and the ROI (Return on Investment) is too long. SMI's (Small & Medium Industries) do not want to invest the money, time and effort if they cant recoup their investment within a few months.

SMI's always cite that when investing RM200k into a machine, they can see the ROI immediately. But RM200k into a software will only yield a proper ROI after several years, the least. Within money being scarce, a CEO or MD weighing the option of spending a considerably large sum of money into something concrete and well accepted (machinary) or simulation, will always put his money down on hardware. His job is same, the company sees a return on investment immediately; everyone is happy.

And what happens when products fail?

Typically, engineers and management goes into a fire-fighting mode, scrambling to find a quick fix. And when its found, they wipe the sweat off their brows and pray the next disaster is a long way off. They dont pray of not having a disaster, they know it will come, they just dont want it to come so soon.

Money, Money, Money....

The next issue is of course money. A USD30k software will cost a Malaysian company approximately RM114k (@ 3.8). But softwares come with modules, so let's add in some modules, another USD15k ~ RM57k, which brings the total invested sum to RM171k. Add in training at RM10k and hardware (RM10k) ~ Rm191k - a grand sum of RM200k.

But as I have mentioned earlier, companies that invest in machinary that cost as much as RM200k will not have a problem funding the purchase of the software, but it is the perceived ROI that is holding them back.

Skilled Labor

Do Malaysian universities produce engineers who know how to use simulation tools?

Not in 1999. A little in 2006.

Universities such as Universiti Teknologi Malaysia (UTM), Universiti Kebangsaan Malaysia (UKM), Universiti Teknologi Petronas (UTP) incorporate simulation into their syllabus but most do not make it compulsory. So students pass through school without being exposed to it. In 2005, UTM proposed that finite element analysis made compulsory to final year students of mechanical and civil engineering. This is the first step in developing a skilled labor force necessary to drive the industry.

WHAT CAN BE DONE TO STIMULATE THE USE OF SIMULATION TECHNOLOGY IN MALAYSIA?

Companies must be willing to take risks in investing into these technologies. These technology (computer simulation) works! Corporations in advance countries have been using these type of technology for a long time now. What drove them to use simulation was competitiveness and the neeed to develop or perish. Companies wanted the extra edge and have resorted to simulation as it is much cheaper and faster (in the long run) to perform product design and testing virtually rather than physically. This allowed the Big 3 automobile makers in US (Ford, GM and Chrysler) and Japan (Toyota, Honda, Nissan) to cut down vehicle development cost by 40% and bring out new models every other year. Faint heart never won a fair lady....

 

The Malaysian government, through its bodies like Sirim (the National Standards Body) should have fund available for SMI's to tap into, to purchase these simulation tools. There must be a mechanism to channel these funds into SMI's that are really keen to perform simulation but can't afford these tools.

But the onus should be on education. Education on how these type of computer simulation can help the industry lift their standards should be undertaken together by the government and the private sector. Universities play a very important role in producing graduates who are well versed in using softwares like MSC.Software, ANSYS, Matlab, Pieces...but if the industry cannot absorb such engineers, then all effort in is vain.

China

With China now bringing down manufacturing costs, can Malaysia still sustain its manufacturing base?

We have seen an exodus of manufacturing companies from Penang to China, how many more will leave for greener pastures? Can Malaysia stop the bleed?

Yes, we can, but only if we strive to push ourselves up the food chain. We must equip ourselves with the type of skills and knowledge that made our southern neighbour, Singapore differentiate itself from us.

Computer simulation provides one crucial advantage -- an understanding of what's going to happen to the structure during an actual test. This is something that test's equipment will have difficulty in predicting unless we know precisely where to place the testing equipments. But engineer are not so smart. Simulation is able to help provide these answers and allow engineers to make an educated guess as to the cause of failure. This is where computer simulation is invaluable!

Computer simulation can help Malaysia rise up the manufacturing food chain. Instead of just manufacturing, we can now, and should, innovate.

As a famous wise man (who's now dead, I presume) said, "Innovate, or perish!"

Books on Innovation

     

And if you're going to read the above business books, here's some tips on how to maximize the reading of business books.

Or, search Amazon.com for other related books