Singapore’s Productivity Movement
andLessons Learned
October 7, 2010
Sheraton Addis
Daniel Kitaw (Dr.-Ing.)
Asso. Prof. of Industrial Engineering
Addis Ababa University

Special thanks and appreciation goes to Mr. Lo Hock Meng,
Executive Director of the Singapore Productivity Association and tothe kind and open Singaporean officials. Many thanks are also due toProf. Kenichi and Izumi Ohno and their team, GRIPS and JICA.

Outline
1. Introduction and Basic Facts
2. Quality and Productivity concept
3. Productivity movement•Early years•

Awareness, Action, Ownership

3. Innovation- Driven Phase
4. Lessons Learned

Singapore’s mission(Aug 28 – Sept 05/2010)
 Productivity Movement Current Industrial Policy Measures and Organizations
 SME Development
 FDI Attraction Nanyang Polytechnic Singapore’s International Cooperation in theIndustrial Sector and others.

Key Statistics of Singapore(2000) (2010)• Land Area
• Population• Literacy Rate
• Labor Force• GDP Growth• Productivity Growth• % GDP contribution
 Manufacturing Non-manufacturing685sq km (710)
4.1 million (4.99)
94% (96%)
2.1 million
2.2%
4.2
26%
74%

Impact of Productivity Movement(1981-2001)
Aver. Ann. GDP Growth(1981-2001) = 7.2%
Aver. Ann. Productivity Growth(1981-2001) = 3.8%
19812001

Per Capita Income($)

11000

37,100

Average Monthly Earnings($)

736

2,800

Home Ownership

63%

92%

Life Expectancy(male)

73yrs

78yrs

Global Competitiveness Index(2010 – 2011) Ranking
Country

GCI Rank (2010 -11)Score

Out of 139 countries

GCI Rank (2009 – 10)
Out of 133 countries

Switzerland

1

5.63

1

Sweden2

5.56

4

Singapore

35.48

3

United States

45.43

2

Germany

55.39

7Japan

65.37

8

China

27

4.84

29

Tunisia

32

4.65

40

South Africa

54

4.3245Kenya

106

3.65

98

Ethiopia

119

3.51

118

Zimbabwe

136

3.03

132

Chad1392.73

131

Knowledge
intensive
Innovation
Intensive
Technology
IntensiveSkills
Intensive
Labor
Intensive

1960

1970

1980

1990

Singapore’s Industrial Development Phases

2000Evolution of the Productivity Movement inSingapore• Stages of Economic Development• Labour-Driven

Capital-Driven

Innovation-Driven

Why quality and productivity?
1. Customer
Today is the customer economy.
Customer has upper hand.

2. Competition
Competition is agenda for survival.
Lowest price, highest quality and best services isthe standard of the day.

3. ChangeThe nature of change becomes fast, flexible
Nothing is constant or predictable

Quality is Fitness for purpose - Juran Conformance to requirements - Crosby

But what does that mean?

EXCEEDING CUSTOMERSEXPECTATIONS!!

Management

Support Processes

Quality, (KAIZEN) if it is introduced andmanaged correctly, will: Eliminate waste; Cut inventories; Improve customer satisfaction; and Enhance profitability.

At the heart of Total Quality (KAIZEN)
are two simple aims, they are:

1. Make things right the first timeand every time.
2. Work for continual improvement.

Productivity concept“Productivity is a state of mind… an attitude
that seeks the continuous improvement ofwhat exists. It is a conviction that one can dobettertoday

thanyesterdayandthattomorrow will be better than today.”European Productivity Agency(1959)

Productivity concept“ Productivity is an attitude of mind thatstrives for and achieves the habit forimprovements, as well as the systems and theset of practices that translate the attitude
into action…”
National Productivity Board, Singapore

Productivity concept
Productivity =Value of Output
Value of Input

OutputFirm-level Productivity =National-level Productivity =Worker
Gross Domestic ProductWork force

Productivity concept
Productivity Growth = Total Factor Productivity Growth(TFP)+
Capital Intensity(CI) Growth

TFP = A measure of how well resources are used
CI = Capital per Worker

Productivity concept
GlobalHigherQuality

Higherproductivity

HighercompetitivenessInternational
multinationalExport

Productivity concept
Standard of living
Economic Growth
Productivity Growth+

Employment Growth

TFP Growth+

Capital Intensity Growth

Productivity concept
Factor Contributing to Higher TFP• Skill level of the workforce• Technical progress as indicated by Innovation,advancesinknowledge,

bettermanagement systems, positive work attitudes andteamwork• Industrial Restructuring
 Shifting of resources to more productive sector

Increpro asing
fit

Mark

tec Grouhn po logyCAD
CIM , CA, C M,APPCo
ap mpupli
ca tertio
Innsvec o ntnt orro yMRlPg
sin ionea t
cr bu
In ntricog
cin tive
duRe istranmi costadg
sin edea dd
cr a
In lueva

Productivity
improvement
techniquesetingTechnology
BasedTechniques

Investment
BasedTechniquesngdlin
ha nt
al emeirvte
Ma mproseil reuaire
Mat
cling
recydna

Material
Based
Techniques

Mgt.

tya liQu trolnco

Production Mgt.

Cost Mgt.

PRODUCTIVITY
IMPROVEMENTTECHNIQUESManagement
Based
Techniques

Job safety
Ergo
nomi
cs
Sch

Employee
Based
Techniques

Brci
ai
rc
ns
letosrmWo
irng
im k copro ndve itio
me nntQu
ality

Job evaluation
Task
BasedTechniques

Product
Based
Techniques

eduliCong
mpdauttae
pro r Aice dedssi
R&ng
Dtuc
od gn
Pr sit ondeuc ati
od iz
Pr rddaan
ctstdu y
Pro bilit entiarel ovem
primgt.
nce Manet
Maint.
Mg
liat.
te raMg
MercsouelR
cia snaedFin ntiv g anenc
In aini ation
Tr duceWork study

Prod’vity Movement - Early Years
Charter for industrial progress(1965)• Joint declaration by employer groups andunions

toworktogether

toincrease

productivity under a Productivity Code ofPractice.
• Establishment of the Singapore Productivity
Center to Promote productivity in Singapore.

Prod’vity Movement - Early Years• National Productivity Center(1967-1972)
 Training and management consultancy
 Industrial Relations• National Productivity Board(1972-1981)
 Training and Management Consultancy
 Productivity Council
 Low Cost Automation

National Prod’vity Board(1981-1995)• Training and Management Consultancy• Work Excellence Committee• Quality Circles• Productivity Promotion• Skills Development Fund Administration

Productivity and Standards Board (PSB)• FormationofPSB

in

1996

topromoteinnovation and raise TFP.

– Merger of National Productivity Board andthe Singapore Institute of Standards andIndustrial Research.

• Mission: to raise productivity so as to enhance
Singapore’s competitiveness and economic growth.
• Six broad thrusts:– Productivity promotion- Industry development– Man power- Standard & quality

development– Technology application

development- Incentives management

Standards, Productivity and Innovation
Board (SPRING Singapore) (2002)• Innovation and Entrepreneurship• Small and Medium sized Enterprises• Domestic Cluster Development• Service Excellence• Standardization for Productivity• Mission: To enhance the competitiveness ofenterprises for a vibrant Singapore economy– Nurture a pro-business environment– Facilitate the growth of industries– Enhance productivity and innovation andcapabilities of enterprises– Increase access to markets and business
opportunities.

“… productivity will come the day
we get it into everybody's head
thathehasa

critical

contribution … it’s got to do with
self-respect, it’s got to do with
co-operation between workers,
and between worker and manager
on the same side.”
Prime Minister Lee Kuan Yew1981

Stages of the Productivity Movement• Awareness Stage(1981-85)• Action Stage(1986-88)• Ownership Stage(1989-90s)

100%Right

Awareness Stage
1. Education of the public•

Launch of the Productivity Movement•

Publication of Productivity Data•Media Support•

Changes in schools and Tertiary Institutions

Awareness Stage
2. Information Dissemination and Training• Courses with emphasis on Human Relations• A Library of Local Case Studies on GoodManagement Practices• A Registry of Courses on Productivity andManagement

Awareness Stage
3. Strengthening Company Identification– Payment of variable bonus– Special awards for long service employees– House unions– Supports

facilities:-companies

preference during peak periods

givenAwareness Stage
4. Promotion of labour-manag’t joint consultation– Work excellence committees– Quality control circles
5. Promotion of productivity in the public sector– Productivity campaign in the public sector– Work improvement teams– Productivity working committee

Awareness Stage6. Formation of National Productivity Council toreview productivity efforts and outline future
strategyonanannualbasis.

High-level

representation from government, employer,groups, unions and academia.

Action Stage
Objective:•To translate “awareness” into specificprograms to improve productivity at theworkplace
Focus:•Skills upgrading of management and workers•Upgrading of companies operational efficiency

Action Stage• Management consultancy referral scheme• Associate consultants scheme• Model company project• Industry based consultancy assistanceschemeAction Stage• Training of the workforce– Skills development fund
• Collaboration on national training programs– Singapore Airline: SQ Center– Philips Singapore: Industrial Engineering Training
Center– Seiko Instruments: On-The-Job Training ProjectOwnership Stage
Objective:•To Encourage Ownership of the Productivity
Movement
Focus:•Self-sustaining Productivity Movement

100%
Right

Ownership Stage“… to have a successful productivity movement,
we must have a critical mass of organizations
and individuals who know that they will benefit
from it, are proud to be part of it, and arewilling and ready to make it succeed.”
Mr Mah Bow Tan
Chairman, NPB 1989

Ownership Stage• Launch of the productivity activities scheme– Develop a core of productivity “champions” incompanies• Private sector leading the annual productivity
campaign– Employer groups chairing the campaign
steering committee

Innovation Driven Phase• Innovation-Driven Growth• Abundance of Knowledge and Increasing
Returns• In perfecting searching the Unknown

Shorter life-cycles for innovative technologies•Steam•Rail•Steel•Water power•Textiles•Iron

1st Wave

1785•Petrochemicals•Electronics•Aviation•Digital networks•Software•New media

3rd Wave

4th Wave

5th Wave

2nd Wave

1845

60 yrs•Electricity•Chemicals•Internal-combustion
engine1900

55 yrs1950

50 yrs1990 1999 2020

40 yrs

30 yrsInnovation Driven Phase
Yesterday

Today

Tomorrow

Quality
Control

Quality
Management

Innovation& Quality

Incremental
Improvement

Continuous
Improvement

BreakthroughImprovement

Cost Reduction

Cost management

Value Creation

Use of Data

Use of Information

Use of Knowledge

Innovation Driven Phase
Yesterday

Today

A committed
Workforce

A QualityWorkforce

A Work-classworkforce

Training for
Employment

Training forDevelopment

Training for
Employability

Problem-solving
MindsetA Quality
MindsetAn Innovation
MindsetTomorrowLessons Learned
1. Productivity is a question ofparadigm

shift and it is a movement not an event.
“productivity is a mental attitude that leads topractical action, resulting in real improvement
for everyone…”
Japan Productivity CenterSo what do we need?
New Mindset of Thinking big. The sky is the limit.
 Acceptance of complexity and its
contradictions
 Diversity consciousness and sensitivity
 Seeking opportunity in surprises anduncertainties

 Do it right the first time and every time.
 Focus on continuous improvement
 Extended time perspective
 Systems thinking

Yes We can Make it !!!

Lessons Learned
2. Strong Commitment• Higher government officials•Enterprises leaders•Individuals (Concerned citizens)

Lessons Learned
3. Strong Organizational Structure• National Council of Productivity
and Competitiveness•Flat Structure•Members - Dynamic, Visionary and action
oriented

Lessons Learned
4. Be conscious of the three phases(Awareness, Action and Ownership)
A. AwarenessB. Action and Ownership (combined)100%90Awareness

10ActionandOwnership
5Time (years)

Lessons Learned
5.

Productivity

Movementrefers

tothecommitment

andinvolvement

byactivegovernment, private sector anduniversities
productivity.

inactivities

toincreaseLessons Learned – Triple helix fusion
Firms
Academia

PublicSector
Source : Economic Competitiveness GroupLessons Learned Productivity Promotion
1. Annual Productivity Campaign– Promotion Theme:- Quality and Productivity– Launch of Campaign by High Level Ministers– Company Wide Programmes– Quality circles at the Workplace

Lessons Learned Productivity Promotion
2. Education, Seminars and Publications–Media Support and Involvement of Artists–

Teaching Quality and Productivity at all levelsin the Ethiopian Education System.

–International Exposition of Quality Circles–Quality Award Conference–National Quality Circles Conventions–Publications and Dissemination of Quality NewsLessons Learned Productivity Promotion
3. National Awards–Ethiopian Quality Award for Business
Excellence–National Productivity Award–National Training Award–Excellent Service Award–National Quality Circles Award

Lessons Learned Productivity Promotion
4. Adopting Best Practices– Japanese Productivity Movement– Asian Productivity Organization– JapanProductivityCenterforSocial-Economic Development.
– Study missions to study other countries
productivity experienceTwo Golden Rules
There is always a betterway of doing things.
(Continuous Improvement)

Rule Number 1:

Rule Number 2 :Don't forget Rule
Number 159

Thank you