Singapore’s Experience withProductivity Development：：Internalization, Scaling-up, and International
Cooperation
Izumi Ohno
GRIPS Development ForumOctober 2010
This presentation largely owes to the information provided by Mr. Lo Hock Meng, Executive Director ofthe Singapore Productivity Association and the findings of the GRIPS mission to Singapore during Aug.29Sept.3, 2010. We are grateful to the Singaporean officials and JICA for their valuable support to the mission.

Outline of Presentation
0. Introduction
1. Singapore’s Productivity Movement
Background, principles, evolution by stage, etc.

2. Institutional framework for Productivity Movement
Channels of scaling-up and institutionalizationRole of key agencies

3. JICA-supported Productivity Development Project(PDP)
4. Singapore’s international cooperation in theindustry sector

Why Singapore?
The first country where JICA provided
comprehensive technical cooperation for
Productivity Development Project (PDP).
-- The first experience for JICA to transfer “software”(humanware) technology

Successful example of internalization, scaling-up,institutionalization of Productivity Movement.
 Productivity continues to be a high-priority national
agenda in today’s Singapore.
 Singapore now offers consultancy in this area todeveloping countries, including Africa.
Main PointsSingapore’s interest in productivity dates back to the 1960s(early days of independence).
In the early 80s, the govt. launched Productivity Movement,
aiming at mindset change at all levels.
Key to success: Strong commitment of top leadership (PM)
 Massive campaign (awareness raising), later combinedwith company-based consultancy
 Tripartite cooperation among the govt., industry, & labor
unions Developing mgt. consultancy capability in the private
sector, by designing systems and incentives to mobilize
those trained under the JICA project
While the Singaporean experience is unique in various
aspects, its success factors give useful insights for Ethiopia’s
Kaizen institutionalization.

About Singapore
Small, city state (total pop. about 5 million); resource
poor country Multicultural (Chinese 75%, Malay 14%, Indians andothers 11%); recent increase in foreign workers
 Sustained economic growth over decadespc. GNI: US$533 (1965) US$35,924 (2009)
 Top ranking at Doing Business Index (2007-2010)
Conscious effort to build human capability; efficient civilservice
 Political stability maintained since independence (1965)
Successive administrations have committed to delivering andsharing the fruits of economic growthSocial pacts among the govt., business, and unions

History of Productivity-related Organizationsin Singapore
PeriodOrganization

Remarks

1964

Productivity Unit, within Economic
Development Board (EDB)

65:Charter for Industrial
Progress, Productivity
Code of Practice

1967-72

National Productivity Center

71:Tripartite Interim
Committee (to prepareNPB)- Autonomously-run division under EDB

1972-95

National Productivity Board (NPB)- Statutory body, initially affiliated withMinistry of Labor and later with Ministryof Trade and Industry (MTI)

1996-2001 Productivity Standard Board (PSB)- Statutory body, affiliated with MTI

2002presentStandards, Productivity andInnovation Board (SPRING)- Statutory body, affiliated with MTI

73:Singapore Productivity
Association (SPA) formed
81:Productivity
Movement LaunchedBackground for Productivity
Movement
1979: Prime Minister Lee Kuan Yew’s concern:“Workers here were not as proud of or as skilled intheir jobs compared to the Japanese or theGermans.”
 1981: LKY met key Japanese employers in
Singapore to discuss practices, work attitudes andproductivity in Japan.
 1981.4: The Committee on Productivity formed
 1981.6: LKY met Mr. Goshi, then Chairman of theJapan Productivity Center. (This triggered a requestfor bilateral cooperation.)Background for Productivity
Movement

1981.6: Report of the Committee on Productivity
Studied Japan’s productivity movement; examined issuesof improving productivity, work attitudes and labor
management relations
 Emphasized the importance of “human aspects” (=mindset change) Proposed the establishment of a high-level council toreview productivity efforts and outline future strategy


1981.9: National Productivity Council (NPC)
established Productivity Movement launchedPrinciples of Singapore ProductivityMovement
Productivity Movement:

The commitment and active involvement by government,employers and workers in activities to increase productivity.

To improve the welfare of Singaporeans througheconomic progress on 3 guiding principles:
Improvements in productivity will increase employment in
the long run.
 Government, employers and labor must work together toimplement measures to improve productivity.
 Fruits of improved productivity must be distributed fairly
among management, labor and consumers.
Source: Information provided by Mr. Lo Hock Meng to the GRIPS mission on Sept. 2, 2010.

Evolution of Productivity Movement

Awareness stage
1981-85

Create widespreadawareness of productivity
among companies andthe workforce

Action stage
1986-88

Translate “Awareness”
into specific programs
To improve productivity
At the workplace

Ownership stage
1989-90s

Encourage ownership ofProductivity Movement
by private firms

JICA-supported Productivity Development Project(PDP: 1983-90)
Training of NPB staff
Massive campaign

 NPB staff (with JICA experts)
conduct company visits,model company project, etc.

Private management
consultants

90s-Start international
cooperation

Awareness Stage: 1981-85
 Focus

Positive work attitude
 Teamwork Recognition for companies and individuals
 Measures taken

Education of the public Information dissemination and training Strengthening company loyalty
 Promotion of labor-management joint consultation
 Promotion of productivity in the public sectorSource: Information provided by Mr. Lo Hock Meng to the GRIPS mission on Sept. 2, 2010.

Key Message
Teamy Bees

 “Together We Work Better”
 Productivity campaign slogans and posters Virtuous cycle (political message)

Increased productivity
 Growth of business/economy
 More consumer demand for products
 Welfare improvement of individuals

Action Stage: 1986-88
Focus
Skills upgrading of management and workers
 Upgrading of companies’ operational efficiencyMeasures taken
Model company project – implemented jointly by NPB staff& JICA experts
 Management consultancy referral schemes, associate
consultant scheme – mobilizing private consultants trained
under JICA-supported PDP Industry-based consultancy assistance scheme Training of workforce (via. Skills Development Fund) Collaboration with other National Training Programs

Source: Information provided by Mr. Lo Hock Meng to the GRIPS mission on Sept. 2, 2010.

Ownership Stage: 1989-90s
 Focus

Self-sustaining Productivity Movement

 Measures taken

Private sector leading the annual productivitycampaign
 Singapore Quality Award (1994- ) Launch of Productivity Activists Scheme (1996- )Cf. Productivity Activists Scheme (introduced by PSB): network to enable member companies
to benchmark their productivity against partners and improve their skills and techniques.
Resources are pooled for an effective exchange of information in support of productivity movement.

Source: Information provided by Mr. Lo Hock Meng to the GRIPS mission on Sept. 2, 2010.

Framework for Productivity Movement
National ProductivityCouncil (NPC)(Around the 1980s)

National Productivity
Board (NPB)
EmployerGroupsUnionsInt’l BusinessCommunities

Civil Service

Productivity Movement• Productivity Awareness• Skills Upgrading• Harmonious Labor Management
Relations

Educational
Institutions

Professional
Institutions

Source: Information provided by Mr. Lo Hock Meng to the GRIPS mission on Sept. 2, 2010.

High-level Commitment and Oversight

PM Lee Kuan Yew
Communicated his strong interest and led Productivity
Movement
 Delivered annual speeches on productivity from 1981 forseven consecutive years (November: Productivity Month)National Productivity Council (NPC)
High-level representation from govt., employer groups,unions and academia (about 20 members)
 Reviewed productivity and outlined future strategy on anannual basis
 Ensured the involvement of all parties concerned

Channels of Scaling-up andInstitutionalizationPublic sector


Labor unions
Productivity campaign by the Central Productivity Committee;
also linked with civil service reform programs
Involving MINDEF and the Singapore Armed Forces
Productivity campaign by the NTUC Productivity Promotion
CouncilEmployer groupInvolvement of business associations

Training at educational institutions (polytechnic, etc.)
 Development of private, management consultants
 Incentives for companies

Workforce training (via Skills Development Fund)
Singapore Quality Award (for both public and private sectors)

Role of National Productivity Board (NPB):
1981-95
Serving as the secretariat of National ProductivityCouncil (NPC) Providing management consultancy








Company visits, model company projectManagement Guidance Center (for local companies)
Industry-based consultancy assistance scheme (six industries)

Developing a cadre of private, management consultants
Training NPB Associates
Management consultancy referral system

Promoting Work Excellence Committee and Quality
Control (QC) Circles
 Promoting productivity campaign
 Administering Skills Development Fund

Training of workforce

Cf. Skill Development Fund: an employer-based funding that provides financial incentives for staff training.
Established in 1978. All employers must pay Skills Development Levy for all workers.

Role of Singapore Productivity
Association (SPA)
Established in 1973 as an affiliated body of NPB(now, SPRING)
 Promote the active involvement of organizations andindividuals in Productivity Movement and expedite
the spread of productivity and its techniques
 Organize courses and seminars, company visits,
study tours to promote knowledge/skills acquisition
 Members (institutional or individual) have access toinformation, training and seminars, networking
opportunities, etc.
 International cooperation: in collaboration with MFA,
MTI, SPRING, APO, AOTS, etc.


http://www.spa.org.sg/index.php

JICA-supported Productivity
Development Project (PDP)
Fully integrated into Singapore’s national effort;
supported crucial part of Productivity Movement
 Contributed to:

Upgrading skills (NPB staff, private business)
Developing manuals & promotional materials
Developing a pool of consultants
Raising productivity in key industries (six priority industries), etc.
Supporting “graduation” process (regional training for ASEAN
countries to share Singapore’s experiences)

Nevertheless, PDP encountered difficulty in the initialyears.

Evolution of Productivity Development Project (PDP)
After initial years of trial and errors, the project plan was restructured
so as to combine practice and theory.
Japanese experts: emphasizing theory and concept at first.
Singaporeans: requesting quick, tangible results (PM’s attention), such aspractical productivity technology transfer, application on the ground.

83.6
85.4
86.6
PreparatoryRestructuringphasephase•Trial and errors•Confusion•Misunderstanding•Re-building trust

88.6
Implementing
phase

90.6
Follow-up
phase•Achievement of tangible•Consolidation

results•Capacity improvementof NPB staff•Transfer of productivityimprovement technique•Development of mgt.
consultants•Regional

training program(ASEAN)

Source: Singapore Productivity Development Project: Report on Ideal and Practice of Technology Transfer
Japan Productivity Center (JPC) March 31, 1990

Summary of JICA-supported PDP (after restructuring)
PDPNPB

Training MaterialsMajor Pillars

PDP•Human aspects•QCD•Japaneseexperience

Training oftrainers

Upgrading ofNPB Staff

Assisting Methods•Practical guidance•Development oftraining materials•Model company &pilot company project•Seminars/workshops•Preparation forpapers•PDP fellowshiptraining

Essential Characteristics

Source: Singapore Productivity Development Project:
Report on Ideal and Practice of Technology Transfer
Japan Productivity Center (JPC)
March 31, 1990

•Basics (5S)•Broad job description & flexible assignment•Team work
•Initiative & creativeness•Work ethics•Attentiveness & aleptness•Information sharing•Mutual trust•Long-term view

Assisting Fields•Mgt. & Supervisory
Development (MSD)•Labor-mgt. relations (LMR)•QCC•Industrial engineering (IE)
•TQC
•Audio-visual technology& resource center•Production mgt.
•Occupational Safety &Health•Consultancy for SMEs

Now, Productivity Again
Report of the Economic Strategic Committee (endorsedby PM Lee Hsien Loong, Feb. 2010): High-skilled
people, innovative economy, distinctive global city
 “Growing through skills and innovation” as one of theseven key strategies

Need to create better and high paying jobs for the citizens
Need to manage the dependence on low-skill foreign labor andsupport continuous education and training of low-wage
Singaporean workers.

National Productivity and Continuing Education Council(NPCEC) established in April 2010
To oversee the national effort to boost productivity and skills
upgradingInstitutional Mechanism for Boosting Skills andEnterprise Productivity through National Effort
Direction set by
the Economic
Strategies
Committee’s
ReportChaired by Deputy PM
Members from ministries/agencies,
business, unions
Joint secretariat: MTI, MOM(ministers)

National Productivity andContinuing Education Council (NPCEC)
Review & submit

Oversight
Review & approval

Led by MTI, MOM (PS level)
Inter-agency coordination

Working Committee for Productivity andContinuing Education (WCPCE)
Sectoral “Productivity Roadmap”
for the next 10 years
Draft & propose

Financial Incentives
Scrutiny

NationalProductivity
Fund

Productivity& Innovation
CreditSkills Dvt. Fund
Lifelong Learning
E.F.

Sector WGs (12 priority sectors)
Construction
BCA
UnionsIndustry

Electronics
EDB
UnionsIndustry

Cross-cutting issues
Low wage workers
Research & benchmarking
Infocomm and logistics

Precision Eng. Transport Eng. General Mfg.
EDB
EDB
SPRING
UnionsUnionsUnions
Industry
Industry
Industry

F&B
SPRING
UnionsIndustry

Retails
SPRING
UnionsIndustry

OthersOthersSingapore’s International Cooperation inthe Industrial Sector

ODA-based (1992- ): Singapore Technical Cooperation Program(SCP)
Administered by Ministry of Foreign Affairs (MFA, Technical Cooperation
Directorate) Bilateral training programs (G-to-G), joint training programs with other
donor agencies (e.g., JSPP21)
 Examples: private sector growth & FDI attraction, TVET programs forprincipals & instructors, productivity management for government
officials, public governance & administration, etc.
http://app.scp.gov.sg/index.asp


Fee-based (2006- ): Singapore Cooperation Enterprise (SCE)
Formed by MTI and MFA
 Technical cooperation on a cost-recovery (non-profit) basis
 Mobilize expertise accumulated in the country’s public agencies andretired civil servants and politicians on a project basis
 Work with both governments and non-governments in developingcountries.
http://www.sce.gov.sg/aboutUs.asp
Singapore’s International Cooperation in
Productivity Development
83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08Productivity Development Project (PDP)
JICA-Singapore Partnership Projects (JSPP 21)
Japan-ASEAN Training Program
Management Diagnosis Training ProjectManagement Diagnostis Training Project(advanced)
Productivity Development Training Projectin Hungary
Productivity Development Training Projectfor African countries
Quality and Productivity Training Projectfor SMEs
Management Diagnosis Traing Projectfor SMEs Development

Singaporean Govt. Projects
Assistance for ASEAN countries
Assistnace for South Africa and Kenya
Assistance for Botswana

Source: JICA/IDCJ/IDJ, Data Collection Survey on Strategy Formulation on Human Resource Development,
Final Report, February 2010, p.4-25, Table 4-5.

Examples: Botswana and SADC
1. Botswana: From 1991- (for about 10 years), SPA
provided two-phased technical cooperation, at therequest of Botswana President to Singaporean PM.
SPA supported:Promotion of tripartite cooperation
Staff training of the Botswana National Productivity Center (BNPC)

1st phase: mixed results, causing brain drain of trained staff
2nd phase: BNPC successfully strengthened to become a centerof excellence in SSA
http://www.bnpc.bw/index.php?id=2

2. SADC member countries: During 1994-2004, under
JSPP21 (run by JICA/MFA), training programs on
productivity management were conducted.

Recent Example: Rwanda
 President Kagame’s strong desire to learn

from Singapore (small and resource-poorcountry, building human capability)
 Started with ODA-based bilateral training(SCP), followed by fee-based projects (SCE)
Workforce development and public sector
capacity building Social security fund reform, etc.
 SCP can serve as an entry point for tailor-made technical cooperation by SCE.

Final Remarks
Singaporean experiences suggest the importance of:High-level, political commitment
 Institutional mechanisms involving all parties concerned Combination of national movement (mindset change) andcompany-based, practical consultancy
 Designing systems to foster private, productivity mgt.
consultants

Ethiopia should study how other African countries
have built capability and institutional mechanisms for
productivity development (e.g., Botswana) Invite Singaporean (e.g., SPA) experts to learn theirexperiences of Productivity Movement and technicalcooperation in Africa