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“I hereby declare that I have read this thesis and in my opinion

this thesis is sufficient in terms of scope and quality for the

award of the Executive Diploma In Security Management.

Signature: ………………………….........

Name of Supervisor: PROF. ROSLI BIN DAUD

Date: 10th Feb 2016

i
Acknowledgements

I would like to offer my sincere gratitude to all the people that

assisted me in the completion of this research. It would not have been

possible without the help offered by others throughout this extended

process.

Special thanks goes to my Malsec Principal Consultant Mr. Ramli

Bahari. His guidance and constant support over this research has been

extremely valuable to me and my research. Mr. Ramli’s encouragement

heightened my motivation to get to the next level even when I was

feeling overwhelmed.

I would also like to thank all employees of the manufacturing

organization whom were willing to participate in my research. Their

willingness to accommodate me during my research was remarkable

and highly appreciated.

Finally, I would like to thank my ever supportive family and

friends. They provided me with confidence and the reassurance that

there was actually ‘light at the end of the tunnel’. To them I express my

love and gratitude for their patience and time they put in to making this

research process an enjoyable experience for me.

ii
Abstract

This manufacturing organization has been using the “BAAN”

system in issuance and tracking of the issued high value components.

Today, this system is the only mechanism used for tracking the issued

high value components movement and inventory management for this

manufacturing company. This system has the ability to play a role in an

overall loss prevention strategy, yet they fail to minimize high value

components or material across the entire manufacturing plant from the

point of issuance to the production line since there is no visibility of the

physical item issued. This research has seen the need to have the

manual log book of issuance for record and easy visibility and tracking

of the physical issued components. In addition to curb this the

implementation of “Dual-Padlock” is needed to have a better control of

the high value components and minimize the access level. This would

be able to track and trace an item at any given time via the “BAAN”

system and manual entry into the log book. This will also help to

minimize high value components shrinkage across the manufacturing

organization, this thesis provides conclusive results in an attempt to

complement existing works. It is also designed to further contribute to

the field of process and the application of manual log book entry and

dual padlock features, thus bringing with it benefits to the academic

community and the electronic manufacturing industry.

iii
PREFACE

Declaration by Supervisor i
Acknowledgements ii
Abstract iii
Preface Iv
Pages
1.0 Introduction
1.1 Introduction 1
1.2 Problem Statement 2
1.3 Research Theory 3
1.4 Purpose of Research 4
1.5 Reasearch Questions 5
1.6 Importance of Research 6-7
1.7 Research Obstacles 8–9
1.8 Explanation of Terms 10

2.0 Literature Review


2.1 Literature Review 11
2.3 Earlier Reasearch 12 - 13

3.0 Research Method


3.1 Introduction 14 – 15
3.2 Research Sample 16 - 20
3.3 Data Collection 21 – 24
3.4 Statistical Analysis 25 – 26

4.0 Research Result


4.1 Introduction 27
4.2 Research Result 28 - 34

5.0 Summary and Recommendations


5.1 Introduction 35
5.2 Summary and Recommendations 36 – 39

6.0 Conclusions 40 – 41

7.0 Appendix
7.1 Questionnaires for Participants of the interview 42 - 50

8.0 Appendix B
8.1 Bibiliographies 51
iv
Loss Prevention Of High Value Components

This thesis submitted as a condition to eligible for the award of the

Executive Diploma in Security Management

By: Ananthen Vasudevan

Faculty of Security Management

Open University Malaysia

FEBRUARY 2016

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