Prof Lye Kin Mun, Deputy Executive Director, Science and Engineering Research Council, Agency for Science, Technology and Research
Dr Lim Ser Yong, Executive Director, Singapore Institute of Manufacturing Technology
Distinguished guests,
Ladies and Gentlemen,
Introduction
Good morning, I am happy to join you today for the Manufacturing Productivity Technology Centre (MPTC) Conference and Technology Exhibition 2014, an annual event which showcases technologies and products that can assist SMEs in their productivity improvement journey. This year’s event is part of the inaugural National Productivity Month, a national-level initiative to showcase and share ideas, methods and perspectives on how companies can improve productivity.
Technology Continues to be Key in Enhancing Competitiveness
Technology will continue to be key in enhancing competitiveness as Singapore’s business operating environment becomes more challenging. Technology can help SMEs improve operational efficiencies to reduce reliance on labour, increase throughput and improve product quality. Productivity is beyond minimising input to get maximum output. It is also the application of new methods, process reengineering and redesign of jobs. At the end of the day, it is about operating efficiently and being more effective. Technology can make a difference in SMEs’ businesses by helping them create new business opportunities and differentiate themselves from their competitors.
Given the benefits that technology can bring, giving SMEs better access to cost-effective and easily implementable technologies remain a key focus of our productivity movement. A*STAR has put in place schemes and initiatives to help SMEs harness technology to enhance productivity. This includes A*STAR’s Growing Enterprises through Technology Upgrade (GET-Up) Programme, where researchers are seconded to SMEs to work with them on innovation projects to develop new products and services. In addition, the Technology Adoption Programme (TAP) offers technology consultation to SMEs and subsequently matches them with solution providers. Since its launch in 2013, A*STAR’s TAP team has engaged more than 4,600 companies and helped more than 650 companies adopt new technologies. To make it easier for SMEs to adopt technologies developed in its Research Institutes, A*STAR has also enhanced its licensing policies.
Partnering A*STAR to Reap Benefits of its Productivity Programmes
The productivity drive is a joint project between the private and public sectors. To help SMEs further their innovation journey, A*STAR has initiated collaborations which bring together industry and research partners by matching technology needs to maximize the sharing of resources and expertise to accelerate adoption of solutions.
MoU for RFID Laundry Consortium
I am pleased to announce the signing of a MoU between A*STAR and six companies in the laundry service and hospitality sectors today. These companies are set to become early adopters of SIMTech’s new “Ready-To-Go” (RTG) package called the RFID-based Laundry Counting & Tracking system, which will help them automate the process of sorting and counting laundry and pinpoint the status of each laundered item. This technology has helped companies transform existing manual and time-intensive operations, increase productivity and enhance their customers’ experience. One of the first adopters is Orchid Laundry. With this technology package, the company expects to minimise billing inaccuracies and reduce laundry counting time by about 80 per cent. This solution will benefit everyone – not just the company but also their workers and ultimately, their customers.
I am glad to see that RFID has extended beyond distribution centre operations to be adopted in other industries like the laundry sector. I hope that more sectors and SMEs can adopt this technology. With a change in mindset, we hope to help SMEs adopt technologies like RFID that can change their operations.
Technology Development Grant
In the next two years, we hope to develop more of such broad-based RTG packages to benefit companies from different industry sectors. This is made possible through TAP’s Technology Development Grant, which funds A*STAR Research Institutes, Institutes of Higher Learning, Polytechnics and Centres of Innovation to develop RTG solutions for mass adoption. Since its launch, TAP has received 13 Technology Development proposals for funding. One such proposal that has been accepted and will be deployed in April next year is the scaffold coupler servicing machine. This machine, which is currently being developed by the Marine & Offshore Technology Centre of Innovation at Ngee Ann Polytechnic, will enable marine & offshore and construction companies to improve their servicing rates by 50 per cent. It will also simplify the service process and make work less physically demanding. I am glad to note that ten companies have already signed the letter of intent to adopt this technology to streamline their operations.
MPTC’s Initiatives
Apart from broad-based solutions, A*STAR’s Research Institutes also focus on developing technologies and skills for different vertical sectors. For example, the Singapore Institute of Manufacturing Technology (SIMTech) develops high value manufacturing technology to enhance the competitiveness of Singapore's manufacturing industry.
To support the manufacturing SMEs, MPTC, one of SIMTech’s industry innovation centres, provides training on various technology solutions that can help them achieve productivity gains. MPTC has developed seven initiatives[1] to help SMEs identify areas of improvement across the different stages of the manufacturing process. In particular, the “Lean Manufacturing” initiative aims to help SMEs achieve productivity through the application of tools, techniques and concepts to identify and eliminate wastage in the production process.
One food service company which has benefited from the “Lean Manufacturing” initiative is Mr Bean. From July to September this year, 15 employees of Mr Bean were trained by MPTC and a total of 24 productivity improvement projects were identified. Half of these projects were executed successfully within the two months. Mr Bean’s staff managed to pinpoint the areas of wastage within the company and developed solutions to prevent future occurrences. For instance, in one of the projects, Mr Bean’s employees implemented a better demand forecast system which takes into account the purchase peaks and troughs of different flavoured pancakes throughout the day. Mr Bean managed to reduce wastage due to the disposal of unsold pancakes. With this implementation, Mr Bean expects to see up to four-fold reduction in pancake wastage at each outlet. Mr Bean is a great example of a ground-up effort in effecting productivity changes and we hope more companies can follow suit. Technology is important for SMEs, especially the retail sector whose margins are low, as it helps them manage cost.
Conclusion
10. By harnessing technology, companies can overcome business challenges, increase productivity and bring about benefits for their workers and customers. The technologies I have shared today are not complex and do not require significant capital investments. However, it requires everyone, from business owners to workers and customers to have a mindset change and work together to improve productivity. The Government is fully committed to help SMEs up-skill their employees and adopt innovative solutions in this productivity journey. I hope more SMEs will come forward and work with agencies such as A*STAR and its research institutes to enhance their competitiveness and growth.
11. I wish you a great day ahead. Thank you.
[1] These initiatives are (1) High-Mix Low-Volume (HMLV) Manufacturing, (2) Lean Manufacturing, (3) Operations Management and Innovation (OMNI), (4) RFID for Resource Tracking, (5) RFID for Supply Chain Track and Trace, (6) Overall Equipment Effectiveness (OEE), and (7) Industrial Automation.