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Chapter 11
Productivity &Quality Management
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Productivity Increase
More output
__________ OR
Same input
Same output
__________
Less input
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Total Factor Productivity
Output
___________________
w1 labour + w2 capital
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Productivity Management
Process
A) Create awareness B) Know techniques
C)Measure performance
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A) CreateAwareness
Company level
-part of corporate culture &management philosophy
- Reinforced by reminders - In-company competition
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B) Know Techniques People-related
-better relations betweenmanagement and workers
Technology-related
- automation - new production methods
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C) Measure Performance Set up measurement system
- collect data before & afterimplementation
If improvement does not meet
target: - find causes and take corrective
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Factors Inhibiting
Productivity Growth
A)Low productivity ofSMEs B)Lack of participation by top
management
C) Uncertain about benefit
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A) Low Productivity of SMEs
Outmoded equipment
Inefficient management
Lack technical know-how
Low skill
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B) Lack Participation by Top
Management
Top managers not active
Middle managers notcommitted
Fail to get participation fromworkers
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C) Uncertain AboutBenefit
Workers not sure about benefits
of higher productivity Some fear higher productivity
may lead to retrenchment
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Strategy for
Productivity Movement
Continuous publicity
Integrated approach: national &company levels
Raise management productivity Raise SME productivity
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Productivity Campaign
1982-2000
A)Awareness (1981 - 85)
B)Action (1986 - 88)
C) Ownership (1989 - 00)
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A)Awareness 19811985 1982 Togetherwe work better
1983 Come on Singapore:
- Togetherwe work better
1984 Come on Singapore
-Lets do a little bit more 1985 Come on Singapore
-Lets all be the bestwe can
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B)Action 19861988 1986 Nows the time:
- We must be the bestwe can
1987 Be the best that we can be:
- Could you sign yourwork
with pride? 1988 Train up
- Be the best you can be
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National Quality Strategy
Objectives
A) Position Singapore as location
for high value-added investment B) Develop local enterprises to
world-class standards
C) Gain access to international
markets
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A) Singapore as location for
high value-added investment
Reputation for high quality
Awareness of importance ofquality
Manpower skills in quality
In line with international standards
National recognition for quality
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B) Develop capabilities of
local enterprises to worldstandards
Attain ISO standards Enhance R&D to support quality
International standards ingovernment contracts
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C)Access International Markets Know international standardisation
Incorporate quality issues into tradepolicy and negotiation
Secure overseas recognition ofSingapore quality
Disseminate information on foreignquality and laws
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SQA: 7 Criteria Leadership & quality culture
Use of information & analysis
Strategic planning
HR development & management
Management of process quality Quality & operational results
Customer focus & satisfaction
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SPRING (Standards, Productivity&
Innovation Board
4 Strategic thrusts
Pro-business environment
Industry development
Enterprise capabilities
Market access and opportunities
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(ProAct 21): 3 Outcomes People for jobs, jobs for people
Business for the future, a futurefor business
Innovation in place, a place forinnovation
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ProAct 21: 7 Ps Purpose
People
Products &
Processes
Practices
Partnership
Platform
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8 Strategies
Mental revolution, paradigmshift
Learn, unlearn & relearn Revitalise business, use new
technology
Manage for business excellence
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8 Strategies (cont) Team and twin
Catalyse higher performance
Standards for competitiveness
Harness knowledge, createadvantage
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NTUC: IMPACT
Objectives
Integrated Management of
Productivity Activities: - Enhance employability of
workers
- Better job and higher pay forworkers
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