income generation for academics - mech.utm.my · ktm double tracking –north line 6. mrt sbk...

UTM ContextSharing of Life Lessons

Income Generation for Academics

Copyright M Salman Leong

Mohd Salman LeongProfessor & Founding DirectorInstitute of Noise & Vibration (Institut Kebisingan & Getaran, IKG)Universiti Teknologi [email protected] [email protected]

Talk at Faculty of Mechanical Engineering8 March 2016

Institute of Noise & Vibration

2Preamble & Disclaimer

• Sharing of my Life Lessons.• Academician as a Practicing Consultant in context of the real world with

examples from Institute of Noise & Vibration (IKG) CoE’s experience.• Performance as reported from UTM Bendahari’s Financial Ledgers.

• Not intended to offend any parties, nor to blow IKG’s trumpet. • Intended to move forward, and unlock untapped potential and capacity

– for IKG and fellow UTM academics.


Financial information presented here is most current available to me and may subject to change. Past performance is not necessarily indicative of future results.


3Presentation

• Institute of Noise & Vibration– Overview– Performance

• Consulting Essentials– Introduction– Wealth Creation– Consulting in Academia– Professional Services by Academics– Professional Fees– Securing and Execution of Services


www.utm.my innovative entrepreneurial global

Institute of Noise & Vibration Institute of Noise & Vibration

• Institute formed in 1992 as a self-financing Center of Excellence in Noise & Vibration.

• Making available expertise of University to industry. Referral Centre for Industry and Government agencies in Noise & Vibration

• MoHE HiCOE in Dec 2015 for Vibration Engineering & Integrity Assessment.

Objectives To provide technical services and industrial research in noise & vibration and integrity assessment.

UTM Start Up Fund = RM 100,000. UTM Annual Funding = None*

2

70.9

71.6

72.2

73.1

*Except for one off HiCOE upgrading initiatives and RU CoEs funding 2014 & 2015



History Time Line

Formation under FKM

3

1992

2011MRT Line 1RM 3.35M single Contract

2009SEER Group consolidated into CoE

2008Petronas GTSVibration Partner

Gross Income RM 500k RM 1M RM 2M RM 2.5M RM 3MAverage per year

2014MRT Line 2RM 4.725M Contract

2015

HiCoE



Our Industry Partners and Clients

4

Oil & Gas

Power Generation

Construction

Manufacturers

Environment

Government

wwwwwwwwwwwwww.uttttttttttttttttmmmmmm.mmmmmmmmyyy iiiinininininnononovavvavavatitiitiitititititivevveve enenenenttttrtrtrrtrrtrepeepeprereereneneeneurururururiiiiaiaiaiaiaiaiallllllll lllglglglglgl bbbbbbbobobooboobob lllllalalalalal4

Customer’s SatisfactionPutting Money where your mouth is.

Putting your “House” Company’s reputation on the line….

REPEAT ORDERS



Petronas Technical Solutions

1. Polyethylene: Structural Integrity Assessment2. Polyethylene: Rector Trains 1 & 2 Vibration Monitoring3. Polyethylene: Finite Element Analysis4. Polyethylene: Permanent Monitoring System5. Petronas Carigali Dulang B Turbogenerator6. Petronas Carigali Tukau A Compressors, Piping, Skid7. Petronas Ammonia Hydrogen Compressor8. Petronas Gas Turbo-expander AIV9. Petronas MLNG-1 and MLNG-210. Petronas Refinery Melaka Coke Structure11. Petronas Gas Main Air Compressor

5



Gamuda / MMC-Gamuda

1. SPRINT – Package 1 (Damansara, Semantan, Hartamas Link)2. SPRINT – Package 2 (Kerinchi Link)3. SPRINT – Package 3 (Penchala Link)4. LDP Upgrading Works & Interchange5. KTM Double Tracking – North Line6. MRT SBK Detailed EIA7. MRT SBK Detailed Analysis & Design for Mitigation 8. MRT SBK UG 1 EMP Monthly Monitoring9. MRT SBK UG 2 EMP Monthly Monitoring10. MRT SBK UG1 Permanent Monitoring Systems 11. MRT SBK UG2 Permanent Monitoring Systems 12. MRT SSP Line 2 Detailed EIA13. MRT SSP Line 2 Scheme Design 14. MRT SSP Line 2 Detailed Design & Mitigation 15. Penang LRT EIA16. Penang LRT Detailed Design & Mitigation

6

Gamuda Annual Appraisal of Consultants

2015 No. 1 = UTM IKG2014 No. 1 = UTM IKG Joint



Sunway Construction

1. KL Convention Centre2. Putrajaya 4G103. Putrajaya 4G114. Putrajaya PTZ 10 Hotel5. Pinewood Iskandar Malaysia Studios6. Putrajaya Parcel F Packages 1,2,3,4

Bid Submissions1. Subang National Exhibition & Convention Center2. KLIA2 LCCT Terminal Buildings & Skybridge3. KLIA2 Apron Control Tower4. LRT3 Project Delivery Partner5. Puteri Harbour Convention Center, Medini

7



Ekovest Group of Companies

1. UMS Phase 1: SKTM Labs2. UMS Phase 2: Dewan Besar, Experimental Theatre3. UTHM – Library & Admin Blocks4. UTHM – Faculties Parcel 15. UTHM – Faculties Parcel 26. Istana Serene Renovation7. DUKE (Duta Ulu Kelang Expressway)8. DUKE 2: Tun Razak Link, Sg Buloh Link9. Setiawangsa Pantai Expressway (SPE / DUKE 3)

Bid Submissions1. Pinewood Iskandar Malaysia Studios2. Biosphere Auditorium3. IPGM

8



Highways Noise Barrier Design

9

1. Ampang Kuala Lumpur Elevated Highway (AKLEH)2. SPRINT Highway3. Duta Ulu Kelang Expressway (DUKE 1,2)4. Kuala Lumpur Putrajaya (MEX) Highway5. Eastern Dispersal Link Johor6. Desaru Senai Expressway7. New Pantai Expressway (NPE)8. South Klang Valley Expressway (SKVE)9. Kuala Selangor Expressway10. Besraya Highway Extension (SILK)11. Butterworth Outer Ring Road (BORR)12. Seremban Outer Ring Road13. Lebuhraya Damansara Interchanges: TTDI & Puchong (LDP)14. PLUS 4th Lane: Rawang to Seremban (PLUS North South Highway)15. Setiawangsa Pantai Expressway (SPE / DUKE3)16. Damansara Shah Alam Elevated Expressway (DASH) 17. Sg Besi Ulu Kelang Expressway (SUKE)



TECHNICAL COMPETENCYCapability Statements

10



Machinery & Physical System Vibrations

• Machinery Vibrations• Machine, Structure & Piping

System Vibrations• MEP Noise & Vibration Control• Noise & Vibration Harshness

11



Structural Dynamics

• Structural Vibrations• Seismic Engineering• Earthquake Engineering• Wind Induced Vibrations• Human Induced Vibration• Vibration Isolation & Damping Design



Noise

• Environmental Noise• Industrial Noise• Highway Noise• Railways Noise & Vibration• Aircraft Noise• Construction Noise• Oil & Gas Noise Study• Noise Barriers Design

13



Predictive Technologies

• Condition Monitoring• Structural Health Monitoring• Prognostics & Diagnostics

14



Acoustics

• Building Acoustics - Noise & Vibration Isolation

• Interior Acoustics - Sound Absorption & Diffusion

• Building Services - Noise & Vibration Control

15



Testing & Monitoring

• Testing Services• Environmental Noise & Vibration

Monitoring• Building & Bridges Monitoring

16



Guidelines & Best Practice Manuals

17



EXAMPLESProject Briefs

18



Gas Turbine Blades Integrity & Extended Operations

19

• Operating gas turbines under adverse load demands

• Detection of turbine blades looseness and rubs

• Helped Power Station to assess conditions of gas turbine blades on machine that was supposed to be remove for scheduled overhaul.

• Helped Power Station to detect blades rub on another machine.

“The combined savings to CBPS was about RM48 million” .

Ir Ng Boon Hee(Rtd) Station Manger, TNB Connaught Bridge Power Station ABB 100 MW Gas Turbines , TNB CBPS



TNB Kapar Steam Turbine Unit 6 Vibration

Steam turbine cannot operate at full load because of excessive vibrations. Operated at part load for almost 4 months.Large scale ODS measurements and analysis to identify root cause.

20

They are experienced and competent group of vibration specialist. Very helpful in resolving our vibration.

Ir Ahmad AsriHead, Generating Facility 3 Kapar Power Station

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IIrHH



TNB KenyirFlow induced vibrations and Pedestal Failures

“Turbines could not be operated after 30 minutes. Cause of problem identified” .

Units had similar bearing pedestal problems, almost similar to vibration failure in Sayano-Shushensko Hydroelectric Station Russia, 2009



Gas Compressors & Piping• Piping cracks. Curtailed

production on specific machines at Petronas Baram Tukau-A.

• Root causes never identified • Carigali finally requested GTS &

UTM to undertake investigations.• Root causes successfully

identified.

22



Operational Deflection ShapesRoot Cause identification


Institute of Noise & Vibration KLIA2 Skybridge

Human Induced Vibrations



Without vibration dampers activated

With vibration dampers

“Who did the calculations?…The predictions are accurate”.Dr Christian MeinhardtGerb GmbH, Germany Comments during Sky Bridge dynamic testing



Klang Valley MRT Project

• Detailed EIA• Detailed Analysis & Design of

Mitigation Measures• Construction EMP Noise & Vibration

Monitoring• Construction Noise & Vibration

Control• Expert Witness

26

“This project is in good hands”Dato’ Halimah Hassan, Ketau Pengarah, DOE



MRT Noise Barrier & Enclosure Design

27



MRT Noise Barriers Vibration Endurance Test

Pusan Seismic Earthquake Research Centre, Korea

28



Masjid KLCC

Construction Site

Construction Noise Modeling



FINANCIAL OVERVIEW Performance Indicators



3131

RM0.14

RM0.19

RM0.34

RM0.35

RM0.26 RM0.45

RM0.78

RM1.70

RM1.10

RM2.14 RM2.10

RM1.20

RM4.33

RM3.03

RM-

RM0.50

RM1.00

RM1.50

RM2.00

RM2.50

RM3.00

RM3.50

RM4.00

RM4.50

RM5.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Millions

Annual Income Year

5 Years AverageRM 2,557,268

CoE Annual Income (Year 2002 to 2015)



32

RM54.33 RM100.18 RM161.05

RM258.24 RM317.02

RM407.77

RM562.32

RM825.94

RM1,044.75

RM1,514.56

RM2,000.48

RM2,269.05

RM2,998.24

RM3,453.78

RM-

RM500.00

RM1,000.00

RM1,500.00

RM2,000.00

RM2,500.00

RM3,000.00

RM3,500.00

RM4,000.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Thou

sand

s

Annual Contribution to UTM Accumulated Contribution Year

5 Years AverageRM 481,805 pa

Contribution by INV to UTM Tabung Amanah Year 2002 to 2015



Key Financial Facts

• Start up Capital RM 100,000• Total Allocation Mengurus from UTM GUP RM 235,000• Total Allocation RM 335,000

• Total One-Off GUP Allocation RM 250,000• Total Allocation RM 585,000

• Sumbangan by CoE to UTM >RM 3,450,000+• Current Harta Tetap & Inventory RM 1,573,154

33

Not Bad for a RM100k Start up Company

Total Allocation received from UTM since formation of Institute of Noise & Vibration

A Basic Primer for Consulting Services

Consulting Essentials



5Sharing of Life Lessons


Walking the talk ….Veteran from the battlefront


6

Food for thoughtMany of us are used to spending millions on our research grants…

Now, try earning millions.



7Purpose of Primer

This primer is for us to start earning our thousands, perhaps even millions

Only problem is many of us academics are so used being in our comfort zone ….

All this while we had it easy…Food served on the table for us



8Some Past Advice

• Don’t expect JPA to raise salaries for academics above PTD (Pegawai Tadbir Awam) scales

• Academics have to generate their own income to pay themselves more… over and above their JPA salaries

• Only medical doctors and lecturers are allowed within the Government system to do this.


Dato Dr Muhammad Ridzuan Hj.SallehPrivate conversation as UTM VC with me, 1992


9How it all started with me…

1983PhD. UTM’s gross pay RM1,600Aspiring P.Eng.

1984 -1986Ranhill Bersekutu1985 -1992AV Technology / CCW Associates1992 – presentInstitute of Noise & Vibration UTM


20111991

More than 30 years industrial consulting. Acoustics, noise & vibrationMainly construction, power generation, oil & gas and heavy engineeringIn private practices and also within University’s eco-system

Some Thoughts

Wealth Creation



11Wealth

• Not defined by how much money you have• Defined as the number of days you can live on

your current lifestyle if you stop working tomorrow

Reality Check• UTM’s wealth in current context ?


We can only pay salaries for Contract staff till April 2016


12Consulting for Academics

Wealth creation from knowledgeWhat are we selling?• Our knowledge and time …. • Genuine wealth creation• More realistic than R&D commercialisation

Know-how from our core business … knowledgeExpertise acquired over time and our R&D processNever ending search for knowledge …Iqra ..reading & research



13Commercialisation for Academics

• R&D Commercialisation…. Licensing, products

• How many success stories you know of ?

• Publications... Are you joking? Cannot cover printing costs.



14Be the First to Market…Story of Martin Yi


Monash University Phd Student….. Never finishedIP patents are for academics … syok sendiri.… Be the first to market

AUD$ Millionaire during 1st Year Phd studentGee, I undercharged ……What he did with his 1st million $

Electronics consulting: Engine Control UnitsRoyalties from Ford Australia, Outright sales to Bosch, Nissan

MIMOS ….surface mounting technology ..I have it in my factory*Vehicle Tracking… Vtrack …APEC, China Sale, GPS, Digital maps*MLW Technology Pty Ltd Martin Yii Yong Heng


15Moving to the next level…Story of Martin Yi


Monash University Phd Student….. Never finishedAmbition …top 100 richest man in AustraliaListing (the alternative to IPO) and ….

Digital imaging security camera systems …sale to listed CompanyAcquisition & stock option by NASDAQ company before Dot.com boomPowerline monitoring and Digital Smart Meter ……. Australian Stock Exchange (ASX) and Syarikat Permodalan Kebangsaan (SPK)

Robert Kuok meeting … Melbourne property development


16Why would a Client Engage a Consultant?

• A Client does not how to do it, does not have the resources (equipment or knowledge) to do it

• A Client does not want to do it• The Consultant has the resources to do it• The Consultant can do it better• The Consultant does it cheaper, and/or faster• The Client wants someone else to be responsible (your

neck and not his on the chopping block)


17What it all means

• You must have know how that is not commonly known

• You can do it cheaper (more cost effective) and quicker

• Why does a Client does not want to do it? ….because it’s dirty / nasty / risky.….because he wants you to be hung for it.

• Its all about ability, cost, responsibility and liability.



18What’s Expected of a Consultant

• Able to offer expert service, recommendations and decisions

• Requires competence and prior expertise

• Brings Value to the Project and Client• All the above within strict timeline and budget constraints• Accountability and responsibility – professional liability

Institutional Relevance, Financial Performance and Issues

Consulting in Academia



20Why do we do consulting?

• Offer services required by Others.• Using knowledge and expertise to bring value to Others• Gain experience and expertise.• Additional source of income.


Wealth Creation


21

RU KPI for Khidmat Professional & Hadiah

• Target to achieve RU RM 20 million• KPI December 2014 RM 53 million/year• To achieve World Class U RM 600 million/year

Income from courses, training, consultancy services, post grad fees, endowment, gifts

RU Marks = 7


22

Target RM50 millionYear 2014

• Postgrad Fees, Franchise RM 35 million• Consultancy RM 15 million• Short Courses RM 1 million• Gifts RM 2 million

RM 53 millionSubstantial amount required from Consultancy ServicesTo achieve World Class University KPI• 30 CoEs @ RM 5 million each? Big Labs …RM 10 million each?• 250 professors @ RM 1 million each?


23

23

FFFaFFFaF RFFFrF FF Bendahari UTM Year 2014 (as reported in early 2015)


24

24


25

25


26

26


27

27

UTSB RM 9,634,399.38COEs RM 5,178,573.28Rest of UTM RM 655,972.55 IKG RM 4,463,211.10

Others RM 715,362.18


28

28


29

29


30

30


31

SummaryYear 2014

Targets Actual• Postgrad, Franchise RM 35 million RM 31,047,485• Consultancy RM 15 million RM 15,468,945• Short Courses RM 1 million RM 2,365,908• Gifts RM 2 million RM 230,000

Total RM 53 million RM 49,112,338• UTSB RM 9,634,399• All CoEs RM 5,178,573• IKG RM 4,463,211

IKG’s contribution 86% of CoEs Consulting29 % of UTM Consulting9% of All Above Income

UTSB’s contribution 63% of UTM Consulting20% of All Above Income


32

COE (IKG) Financial OverviewHow it works in reality

Contracts Value $$$$$

Variations ( + )

Book Order Work in Hand $$$

Income $$

Invoiced, but pending $

Income Received $

FnlF ActuFl Income Received reflected in Bendahari’s

Ledger, and KPI counted.Further complication:

Timelines.

Profit25% min.

Expenses 75% max.

This is the only Income recognised by Bendahari & MoHE


33

Distribution

Tabung UTM

Tabung CoE

Direct Expenses

Indirect Expenses

Retained Profits

UTM Allocation

ExpensesSalaries

ROs & Engineers

Cost of Service, Travel & Expenses

External Consultants

Admin Expenses, Insurance, etc.

Honorarium

Scholarships

Capital Purchase

CoE (IKG) Financial OverviewIncome and Expenses

Salaries Permanent StaffBendahari

Emolument

HiCoE, GUP

Serv

ices

Inco

me

Income

25 % of Fees


34

Issues & Policy in UTM Workshop on UTM’s Consulting PolicyNov 2010



35Issues in UTM (Year 2010)

• Inconsistent implementation of existing policies.• High “pendahuluan” in some Projects; ~RM5.2million (Aug 2010),

Cost over-runs.• High fixed costs (ROs fixed salaries for some projects, e.g. >100

ROs for a project).• Financial mismanagement of some projects: “manipulated”

reimbursable.• UTM not recovering cost of operations, maintenance and capital

replacement for facilities.Portion of Fees Income to UTM cannot cover electricity and maintenance costs for some Labs/COEs.


36Issues in UTM (Year 2010)

Issues in the distribution method and compliance

Reimbursements

Sumbangan to UTM

Balance available for

cost of project, staff, etc.

Fees

rece

ived

FF

F

As declared by Head

25% of Fees less Reimbursements


Reimbursements

Sumbangan to UTM

Balance available for cost, staff, etc.

Fees

rece

ived

$$

$

As

decl

ared

by

Hea

d



Electricity & other costs to UTM not

captured in distribution

Insufficient

Must include other costs here


37

�ource� �e�abat �endahari


38

�ource� �e�abat �endahari


39Pre-2014 Financial Distribution for COEs

FFlFnce FFFFble for F FonorFrium to FtFffF FFFenses for undertFFinF FroFect F FFF Fdmin eFFenses

39

Projects undertaken thru BIPContribution of 25% of Project Value, nett after reimbursable as follows

1/3 to University1/3 to Faculty1/3 to BIP

Balance (75%) payable to Staff in full


40

Current 2014 Policy

Pekeliling BendahariBil. 4 Tahun 2014 (3 Feb 2014)Cost Recovery• Testing Services: 15% of Gross Income• Consultancy: 10% of Gross Income But….. Is 10% - 15% deduction enough?


UTSB Consultancy10% Deduction for UTSBBalance 90% after Reimbursements (Travel) fully paid to Project Members…What about Costs of Services borne by UTM / Labs / CoE?


41Sumbangan to UTM


FFtracts Fampiran FF


42Current 2014 Policy

Part address issues in distribution and compliance

Sumbangan to UTM


cost of project, honorarium,

etc.

Fees

rece

ived

FF

F

10% (1F%) of Fross Fees

Bala

nce

of F

ees

less

R

eim

burs

emen

ts

Electricity & other costs to PTJ & UTM to be captured in Balance

of Fees

Must be sufficient

Reimbursements

GST 6% of Fees

Sumbangan to UTM


cost of project, honorarium,

etc.

Fees

rece

ived

FF

FReimbursements & Other Costs to be borne by PTJ

10% (15%) of Gross Fees

Balance of Fees less Costs of

Project & Reimbursements

Must include other costs here

Reimbursements

GST 6% of Fees


43UTM Gross Recovery Framework

Spirit of the Circular• Asas elemen kewangan yang

perlu diambilkira dalamperancangan kewangan bagiaktiviti

• ….Perancangan kewangan yang telus dan mengambilkira elemenoverhead Universiti



44What’s are the Expenses

• GST (yes UTM must pay GST for income collected)• Currently 6%, but in near future?• 10% for Sumbangan Tabung Induk (Cost Recovery)

• Sumbangan to CoE: Administrative Costs (TNB, Telekom, stationaries, office costs, rent, etc…)

• Project Direct and Indirect Expenses

• Cost of SalesCopyright M Salman Leong

Is 10 % (15%) enough?


45

Cost of SalesCost of Doing the Work


Cost of these nasi lemak are different ….Cost of Sales include the material costs, fuel used, rental, labour, etc

You must know the actual Total Cost of Sale


46 Direct & Indirect Expenses

Let’s not talk about Permanent Staff salaries yet• Salaries of Contract Staff (ROs, etc.), EPF, Medical• Travelling, site work, elaun harian• External consultants• Equipment maintenance….. Replacement costs • Utilities (electricity, water, guna-habis, etc.)

High consumers: IVAT, Wind tunnel, Marine lab, etc.• Etc….. Professional Indemnity Insurance, PA Insurance



47Reality Check

• Our profit margin is NOT 90%• We cannot and should not pay ourselves the Balance of

Fees less Sumbangan UTM• We can only pay ourselves the Balance of Fees after GST,

less Sumbangan UTM & CoE, less Cost of Doing the Work, less Sum Retained for Growth

• This is what Financial Sustainability means.



48High Capital High Expense Labs


Someone has to pay for the electricity. Unless .…This could save us a bundle on electricity …. By the way, Bob how fast can you run

Even for our fishing boat, “someone” must pay for the fuel & maintenance

That “someone” is FoF…Fot FTF


49Increase the size of the pie


Grow the pie before you cut it• Replication• Inclusiveness• Diversification & Differentiation

Lets’ have a smaller percentage of a big pie and not 100% of a small pie (or nothing)

Institutional and Individuals

Professional Services by Academics



51 Why consulting is necessary for lecturers?

• To gain practical experience for professional accreditation (BEM, PAM,etc.).

• It offers real life perspective to academia.• It brings real life examples to the classroom (case studies,

“war stories”).• It’s a major and proven way to make the individual an expert

in his field.• It would lead to recognition and accreditation by the industry

(referral centre; “pakarujuk”).



52 Why Industry is reluctant to use Universities

Issues• Timeliness

ccccccccc• Competence

ccccccccc• Experience• Compared against others• Attitude• Accountability

Reality• IPT = months & years

Industry = weeks & months (yesterday)• Too academic, no sense of reality,

sloppy work• No track record• Don’t measure up• Ivory tower syndrome• Too big for assignment of blame


Real Fife FtoriesMMC Gamuda, David Mun …This work is not worth the paper it’s written onEkovest, Dato KC Lim ……… We will never use Universities again Suncon, WL Yap ……… We’d like to help your friends, but we have to deliverSSP, CK Wong ……… Too simplistic, lack practical appreciation


53Some self searching questions -

Questions we need to ask ourselves• Are you a text book Engineer?• Are you training text book Engineers ? ….

who probably be worse off than you.• Are you in touch with the industry?• Are you in touch with technology & trends?

• Are you obsolete?Copyright M Salman Leong


54Why most academics don’t do it

• Competence– Don’t have the skills– No experience– Chicken & Egg

• Pressure– Expectations– Comfort zone….UTM SPACE is easier



55Different Levels of Competence


e

Incompetence

Competence

Unconscious Conscious

�ot aware o� a skill you lack

So skilled that you no longer have to think

about it

Actively working at a skill although it requires a lot of

thought

Aware that lack a skill

• You don’t know that you do not know• You know that you don’t know• You have to actively think to do it• You can do it without thinking

• Unconscious Incompetence• Conscious Incompetence• Conscious competence• Unconscious competence


56Competence…. Improving ourselves

It’s a matter of attitude• You can’t help a person unless he truly

wants to help himself. • Advice alone does no good unless the

person truly wants to change the situations in his life.

• That is why the best diet and exercise plan will not work unless the person really and truly wants to lose weight.


Welcome to Change Management 101….. Let’s start with a few free falls

Only we can change the status quo...


57Venturing into the Unknown….

You have a PhD What’s is the takeaway from your PhD?... In a nut shell.

My own experience Life Lesson: Swim or sink

When it’s darkest is when you need to be most calm


Ph.D. taking your B.S. (Bull S#@!!) to a new level

….. So we Professors having supervised so many PhDs are Professional B.S.


58Applying what we learn from our research or PhD

Systematic problem solving• Defining a problem- research statement• Finding out what others had done• Mapping out and undertaking tasks

required to solve the problem• Working towards the end of tunnel• Validating and interpreting results • Defending our work



59Pressure…. Status Quo

• Lecturing is EASY• IPTA students fairly docile …. Not often challenged

• UTMSPACE is ”easy” no pressure income …. until situation change?

• Ah…. I do RESEARCH… Spending money is easier than making money


I have a PhD, you don’tI Professor know ALL … you Shut Up


60Do you really know what Pressure is

Pressure is when you cannot …. • Put food on the table• Pay the salaries• Pay the housing loan, car loans, etc. • Pay the medical bills• When you have to retrench staff

• Expenses exceed income


The country and UTM is in this category now


61My Definition of Pressure

Pressure is when spend RM 1 million Research Grant • What have you got to show for it?


ISI papers… 10,100, 1000?

You know what can RM 1 million buy ….• How many dialysis machines?• How many scholarships for the poor?... Etc.

Why I never ever lobby for Top Down Research GrantMy IRPA Dato Ridzuan story… (before he was UTM’s VC)


62My Definition of Stress


Stress is not just Force over AreaStress is when You are NOT in Control

You must be able to roll up your sleeves and get it done yourselfWhen it comes to a crux, you do it

yourself

…Now you know why my sleeves are always rolled up


63Under Pressure …..be in control

My favourite Tag line …..….and favourite watch


MY LIFE’S


64

What and HowFind the needs, and it’ll lead you to the Money



65What consulting?

• Testing and measurement services.• Design and analysis services.• Specialist services.



66Testing and Measurement Services

• Laboratory testing : Compliance testing, Standards testing, Data validation, Quality assurance, Product testing, Specifications and ratings, Certification.

• On site services : Compliance and regulatory requirements (OSHA, Environmental Management Plan, ISO 12000, etc.), Acceptance testing, Performance testing, Before and After validation, Data gathering, etc.


67Issues to address: Testing & Measurement Services

• Capital intensive• Equipment upkeep and replacement costs• Return On Investment (ROI)….ah, IPTA are different -

teaching & research are reasons for purchase, really?• SIRIM is the preferred one stop centre & branding.

Can we compete? If not, can we be different?• Calibration and Accreditation requirements

• How much does it cost to use the equipment? Do really know the true costs for owning and operating it?

• Are we charging an appropriate fee for the services?Copyright M Salman Leong


68Suggestions on UTM’s Labs & CoE equipment

• Stock take on where the Lab and equipment stands with respect to state of usability and functionality vis-à-vis competitors and technology

• Ah, we need to upgrade….really? No use pouring good money after bad

• Identify income generation niche and opportunities using what we have. Only then can we consider upgrades with money earned (not money given or asked).

• All future equipment must have ROIs as a condition of purchase (not lip service). Put money where your mouth is.

• Equipment usage must have costs accounting and cost recovery to include ALL total costs of doing work.



69Example: UTM’s Wind Tunnel Missed Opportunities?

• Most (if not all) building projects requiring wind tunnel testing and analysis are undertaken overseas: KLIA2 LCCT (Australia), KLCC Convention Centre (Melbourne), KL Tower (Cologne), Menara Maybank (Singapore), etc.

• Vipac Melbourne wind tunnel….24 hours operations

• UTM’s wind tunnel …perception and reality ?Chicken & egg, how to break the loop?

• Trend towards combination with CFD (Computational Fluid Dynamics)


lity ?


70How to break the loop …some suggestions

• Undertake without being paid, wind study & wind tunnel testing at KL Sentral

• Do your homework for potential work on new buildings at KL Sentral

• Some CFD and wind induced vibration monitoring done.Copyright M Salman Leong

d study & wind tunnel

Problems at Kuala Lumpur Sentral


71Design and Analysis Services

• Professional Services : Mechanical & Electrical (M&E), Civil & Structural (C&S), Architectural, Quantity Survey (QS), PMC.

• Oil & Gas Services : Process, Chemical, Piping, Structures, etc.• Sectorial Services: Automotive, Marine, Aeronautics, etc.• Specialist Disciplines: Noise & Vibration , NVH, Earthquake

Engineering, Computational Fluid Dynamics (CFD), Fire Engineering, Microelectronics, Process Control, Animation, Cyber Fraud, Security, Rail System, etc.

• Other Analysis Services: CAE, CAD, CADCAM, Finite Element Analysis, Structural Optimisation, Energy Audits, etc.Tasks include analysis, designing, codes checking, drawings preparation, documentation, supervision, testing and commissioning.


72Other Supplementary Analysis in IKG’s work

Examples of IKG’s other analysis:• Acoustic induced vibrations• Wind engineering• Stress analysis, etc.• Multi Body dynamics.



73

Some suggestions: Opportunities for UTMEngineering & Building Industry


Computational Fluid DynamicsFluid mechanics that uses numerical analysis and algorithms to solve and analyze problems that involve fluid flows.Applications in industrial, environmental, medical: aircrafts, automotive, combustion, medical, food industry, building and tunnel ventilation, etc.


74

Some suggestions: Opportunities for UTMEngineering & Building Industry


NKRA: Railway and Highways• Tunnels for railway and highway• Requires CFD analysis• Tunnel design: ventilation and

materials selection for fire safety

Fire Engineering• Important analysis and Jabatan

Bomba’s approval for buildings• Critical for public safety


75

Some suggestions: Opportunities for UTMMulti Body Dynamics

Example: Tractor ride behaviour at Port Authority Singapore


Real dynamics for engineering systemsMD ADAMS and SAMCEFIntegrates mechanical components, pneumatics, hydraulics, electronics, control systems technologies to build and test virtual prototypes that accurately account for the interactions between these subsystems.

Lessons learnt• Expertise that existed in Faculty does not exist when you need it.• Know how acquired also gone from CoE when foreigner RO left.


76

Other ExamplesValue Engineering & Optimisation

KLIA2 Sky Bridge ExampleCopyright M Salman Leong

KLCCoopyright M Salman Leong

Arup’s ExampleFalue Engineering and OptimisationFmproving value for clients with multiFmillion dollar proFect savings. Fumerical optimisation capabilities with shape and topology optimisation, gradient based optimisation and genetic algorithm techniques.


77Specialist Services

• Specialist investigations : Failure analysis, trouble shooting, problems solving, cause and effects, forensic, etc.

• Design Audit and Expert Review• Data interpretation and assessment. Requires prior

knowledge and expertise. Elements of research and critical thinking.

• Expert witness.


78

Other ExamplesForensic Engineering

Example Crane collapse: Monash Professional Group


Forensic Engineering Fractical and analytical expertise to investigate failures or malfunctions of structures, mechanisms or systems in buildings and facilities. Fo cover total collapse of maFor structures to serviceability issues caused by factors such as deterioration, overloading, mechanical failure, plant malfunction and excessive vibration.


79Summary: Consulting Types in Universities

• Testing & Measurement Service Equipment intensiveLow intellectual contentLow value billings

• Design and Analysis Services Computational tools requiredTime intensiveModerate value billingNot competitive vs private firms

• Specialist Services Intellectual capital requiredHigh value billingHigh responsibility.

Not withstanding the above, all the three types have its inherent professional liabilities.


80 Training & Short Courses

What….. Professional development• Basic knowledge and skills• Specialist knowledge and skills• Certifications

How….• Public courses• In-house courses



81Consulting : The How

You have to go fishing. The fish will not come to your plate.

• Identify your niche• Identify the potential clients• Identify the needs• Submit the Proposal• Securing the work• Doing the work and completing it in a timely manner



82Identifying your niche….


Answer the following…• What is your field of expertise• What can you be good at• Where can you be better than others• What you love doing

Even if you may not have all the answers, can you do it with some training, guidance or evolution of your current skillsets.


83Identify the Potential Clients

Who is the customer• Government• Government Linked Companies • Private sector

- Consultants- Contractors- Manufacturers- Vendors

• OrganisationsCopyright M Salman Leong


84Identify the Needs



85What everyone wants… Solutions



86

See What Other’s are doing….. and how we measure up

• Identify other service providers and see what they are doing…

• Be prepared for an Eye Opener

Suggest have a look at ARUP’s Advanced Technology & Research. Read the Profile and watch the video.

http://www.arup.com/Services/Advanced_Technology_and_Research.aspx


Reality CheckLet’s benchmark ourselves against the World’s BestWhy … They are our competitors. In some projects, they are engaged as Independent Checking Engineers to audit our work.


87Doing it the First Time

• During Practical Training• Working on a Pilot Study.• Working with a Mentor or

Associate.



88Practical Training Opportunities

• Consulting companies.• Technical services providers.• Vendors.• Corporate organisations• R&D organisations• Manufacturers.



89Pilot Study

• Exploratory projects.• Research based projects.• Initiate projects with associations (FMM,

SMIDEC, Trade associations, etc.) • Primarily at no cost to the Client.• Offer to undertake a simultaneous assignment

to countercheck their Principals, etc.



90Mentor or Associate

• Overseas party wanting to spread services in this part of world

• Networking and strategic partners.• Associates and friends. Understudy to an Expert.• Sales and service companies.



91When starting… Work for Free

• Clients will never pay for us to learn.• Don’t expect to eat the fish that others

catch if we did not contribute to the fishing.


I work for fun

• Build up the business if we really want to be in business.

• Build up the cash reserves to buy the tools.

I was not the first choice when I started …I started cleaning people’s shitMy Tenaga stories…Paka, Kenyir, etc. My Gamuda storiesMy Petronas stories


92Build and Retain a Team

• Most projects require teamwork.• Members to have different roles.• Everyone must carry their own weight.• No observers (unless so intended).• Avoid individuals becoming indispensable.

• Must have own ROs (self financed). • Do not rely on students. Know how leaves when students leaves.

Students in the war zone has ethical issues.• All members to be duly rewarded – performance & contribution based.• Must have sustainable business model.• Cash reserves needed for CoE to operate and maintain the Team.


Essential if CoE intends to be in business for the long term


93Team…Lean & Mean

• Clients do not like excess baggage …They get in the way.

• Excess manpower has costs• HiCoE KPI’s are all per person basis.

Be like a US Navy Seal…• Everyone must carry the boat• Everyone must paddle….• Stragglers will drop out.



94

Don’t expect the fish or pond to come to you ….

You have to make the effort Preparing yourselfMaking yourself relevantMake the effort on the fishing trip

Field work is tough…. It is not a stroll in the parkAnalysis is tedious ….Remember, there must be a reason why someone is paying you.

There is NO free lunch


Also, don’t expect equal rewards without doing EQUAL contribution


95My observations of academics…

• While learning… I expect to be paid…..This is no cuti belajar where you are paid while learning

• Ivory tower mentalityI am the best …you Fish come to meAre you really the best… says who?Business will not drop from the sky

Copyright M Salman Leong I am the best, you come to me


96My observations of academics…

• Spoon fed mentality• Some expect to be chauffeur driven

…piggy backYou paddle, show me the spot, then

maybe I’ll fish if I’m in the mood• Gee.. Got bitten by mosquitos



97Another excuse…

I don’t have the tools….

My interactions and experience• We write our own Finite Element codes

Dr Anthony Smalley, South West Research Institute

• We write own Modal Analysis softwareProfessor Chong Won Lee, KAIST


Make your own wheels

We have no wheels, no new toys


98Necessity is the Mother of all Inventions

• We used our own written noise modelling software for our early consulting projects.


73.8

73.770.9

71.6

72.2

73.1

59.9

62.5

64.5

67.5

68.9

68.6

• We now turbo-charge the commercial noise modelling software we bought where the noise propagation plots are even better than what the OEM software is capable of.

• Even with FEA, we still use our own Excel vibration analysis calculation sheets for our vibration consulting projects.


99You make your own luck

• Luck (rezeki) will come those who work harder • Even though we fish in the same pond and boat


Also…

How much to charge

Professional Fees



101How are Fees Charged

• Time based: Man-Hours / Man-Days / Man-months• Percentage of Cost of Works• Board of Engineers Malaysia Scale of Fees • Performance Based• Perceived Value

Copyright M Salman Leongeong


102Time based: Salary Multiplier

A Local Consultant Multiplier

1 Professional Staff (Consultancy Firms) Not more than 2.7

2 Semi-Professional Staff (Consultancy Firms) Not more than 2.1

3 University Academic Staff IPTA/IPTS outsourced by Firms

Not more than 2.2

B Foreign Consultant

4 Foreign Consultant outsourced by Firms Not more than 1.0

C Individual Consultant

5 Individual Local appointed by Government Agency

Not more than 1.6

6 Individual Foreign appointed by Government Agency

Not more than 1.0


Rates applicable for Government projects (appointed by Government)Man-month Rates (RM) = Basic Salary (RM) x Multiplier

2

00

2


103How to Establish Fees

• Fees for professional services (man days/months)• Fees for equipment rental and usage (including cost of

utilities)• Fees for University overheads (administrative, insurance,

EPF, staff medical, etc.)• Cost of reimbursements• All Projects Proposal shall take account of full costing, and

to remain competitive may require adjustments across the board.


104Equipment Rental Rates – An Example

• Min. 4 weeks rental• Per week charges at 3% of

Equipment Cost • Per month 12% of Cost• Manpower and expertise

additional charges


105Laboratory Rates

• Equipment rental charges (amortization / capital replacement)

• Cost of utilities (electricity and water)• Cost of maintenance• Cost of other overheads (insurance,

liability).

• Manpower costs (technical staff)• Consultation fees.


106Payment Terms

• Mobilization costs for preparation of samples, set up, travel etc.

• Payment upon completion of tests and before issuance of Report

• Full payment COD for Report.• For example: SIRIM – full payment

upon confirmation of services.


107Fees….Threshold of Pain

The Best Fair Price is when both parties are not happy, but are agreeable to it.


Maximum Client willing to pay

Client happy to pay

Consultant happy to receive

Minimum Consultant willing to receive

Both parties not happy

Consultant’s threshold of pain

Client’s threshold of pain

$$$

Client Consultant

Maximum Fee is the Client’s threshold of pain.Seek this threshold of pain….


108Fair Fees

• Most responsible Companies are willing to pay Fair Fee.

• But don’t expect to be paid for shitty work.

• Some will squeeze you and expect advice for free …It’s their Culture. So stay away. There’s always another pond to fish.

• My experience with the good and not so good Clients…



109Other Comments on Fees

• With UTM’s deduction, we are not Competitive?

• Discounts ?.....


• With UTM’s deduction, we are not Competitive?

• Discounts ?.....• The Dark Side of Consulting

…. Welcome to the Real World

Real life story: The case of a Consultant doing it for free because his Mother goes to church…..

How to prepare a Proposal

Proposal



111A Proposal must have

• Need Statements• Objectives of Work• Scope of Works• Fees• Client & Consultant’s Deliverables• Personnel (CVs) and Resources• Schedule• Other Terms & Conditions


…I can make it bright by installing lights, using my super lights.

Time to roll up your sleeves

Executing the Work


113Getting down to work

• Plan the resources, activities and timelines. • Do background research… Standards, Codes• Set up the model… test facilities, etc.• Establish the design criteria or limits• Agree on the assumptions• Establish Method Statements & Quality Plan• Do the test runs• Calibration and validation, sensitivity analysis• Walk the miles….Sleep over the results. • Challenge the results…

If you don’t someone will.Copyright M Salman Leong

JUST DO IT OR ELSE

Keeping your hands on the handle

Managing the Work


115Have your hands on the job

• Don’t ever lose sight of the activities on hand.• Don’t leave the activities on auto-pilot.• Always validate analysis with hand calculations.• Must have a feel of the numbers….slide rule days.


Example 1• Stress levels of 380MPa, really?• Material yield norms 200MPa, real world 70MPaExample 2 • FEA of KTM railway bridges… Being laughed at.• Academician presented levels in “inches”,

allowable track deflections <0.5 inch

• Watch the clock…time waits for no one.

What and Why

LAD and Professional Liability


117Liquidated Ascertained Damages

• Damages whose amount the parties designate in Contract for the injured party to collect as compensation upon a specific breach (e.g., late performance)

• Usually % of Contract or stipulated sum per day• Cost of making good• Late completion, Not meeting milestones.



118Professional Indemnity Insurance

• All professional services must have indemnity insurance

• Someone must carry the can…when things go wrong



119When words alone are not enough

All Client expects you to pay for your mistakes• Normal practice• KLCC Convention Centre example


In construction lives are at stake.So let’s do something safer.

…Highway traffic modelling?


120


Paying for mistakes in traffic volumes forecasting

Being sued: Example

InsInsInstittittituteuteute ofofof NoiNoiNoisesese &&& VibVibVibratratrationionion

1122000


121

IKG’s Professional Indemnity Insurance

Current Cover RM 1 millionProposed RM 2 millionFuture Cover RM 7 million

121

112222111


122Indemnity and Liability

• Approval of University to staff does not absolve staff from all liabilities, non-performance and professional liability

• Project leader shall be liable for monies advanced by the University for execution of project under his/her direct responsibility.

• Also need for disclaimer clauses in Report documentation, and caution against misrepresentation.

Someone to blame…. Project Leader

Consultant


123Disclaimer

• Need to state Scope of Services and Extent of Work done in the Services

• Need to state restrictions on use of Report (especially test reports and analysis results).

• Prohibit use in advertisements and implied endorsement by UTM on the outside party’s products / process / design.

�e a��se� t�e �n�o�mat�on �e�e ma� not be �u��ent an� �s sub�e�t to ��an�e� �ast �e��o�man�e �s not ne�essa��l� �n��at��e o� �utu�e �esults�

What may go wrong ….Avoid getting into a deep hole

Mistakes & Problems



125What lead to problems …

• Not preparing properly• Not checking the connectors and cables ….• Getting sloppy• Attitude & Arrogance

• Not defining the work scope• Not costing the job properly• Out of depth



126

Know how and lessons learnt not retained in CoE / Unit / Organisation

• Organisation keep making same errors… Why?• In-depth know how leaves when Phd students /

people leaves. Students & ROs were the actual soldiers in the war zone.

• Expertise and experience must be retained in the Organisation.

• Must be institutional, not individuals. • Aim for low staff turnover. Reward accordingly.

My observations….. AECOM, Ranhill, etc.


UTM CoEs & IKG …IKG have the longest serving ROsAll of IKG Engineers can walk into another job…in Singapore & elsewhere


127Swimming with the Sharks

Here comes the sharks… Learn to swim with the sharks• Big fish (big projects) attract sharks….Competition will be fierce• Borderless world…. Ruthless world

• Be better or be eaten



128

Potential Conflicts … Blur boundaries in Academia

• University of Virginia ROMAC

• Real Issue: Clarity of University Policy



129Final Words…The choice is Ours


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