Lessons from improving productivity in Japan and Singapore

Japan, Singapore are two countries in Asia with the average annual economic growth rate is high. One of the important lessons “promoting” the economy of these two countries in maintaining high GDP growth rate is thanks to labor productivity improvement, shortening development gap and initiating movement. productivity to promptly solve the problems that are facing, etc.

Japan: 3 productivity improvement tools

Japan is known as one of the world’s leading labor productivity countries and has a process of improving labor productivity effectively. Mr.Kazuteru Kuroda – Expert on labor productivity of Japan Productivity Center, said that Japan used 3 important tools in improving labor productivity in the period from 1960 to the 1980s: Full quality management system. area (TQM); Overall productivity maintenance (TPM); Saving production or continuous improvement (Lean or Kaizen).

Specifically, with the first tool, the Total Quality Management System (TQM), is also considered by many countries around the world to be a highly effective quality management system. This is an approach of quality management at every stage, to improve the productivity and overall efficiency of the business or organization. Thanks to the successful application of TQM, the quality of Japanese products after a few decades of weakness has risen to a high and reputable level in the world.

The second tool is Overall Productivity Maintenance (TPM). This management tool was first applied in Japan, then popularized and widely applied in industrial manufacturing industries worldwide. TPM is a management mindset or approach that combines the concepts of Maintenance (also known as Maintenance) and Quality Productivity. TPM improves the use of machines thanks to good maintenance. TPM also restricts unexpected shutdowns, enabling 24-hour workday in the best condition. This method is being strongly applied in manufacturing industry and service industry.

The third tool is the production of savings or continuous improvement (Lean or Kaizen). In it, “Lean” is a system of tools and methods to continuously eliminate all waste in the manufacturing process. The main benefit of this system is to reduce production costs, increase production and shorten production time.

“Kaizen” means “to improve”. The nature of Kaizen is to change, not content with the current situation or method, but always looking for a better method. Thanks to this method, Japan has created Toyota Company or other leading corporations of Japan.

Singapore: A typical example of innovating the productivity movement

Singapore is a country with a fast-growing economy in Southeast Asia (Since independence, in the period of 1965 – 2004, the average annual economic growth rate reached 7%). During this period, GDP per capita has increased by more than 50 times and is currently at about 28,000 USD. To achieve this great economic achievement, Singapore has managed very well human resources and the productivity movement.

Economic expansion must come from improving the efficiency of the use of the country’s resources or so-called Total Productivity Factors (TFP). Factors affecting TFP include human resource development, management systems, innovation and economic restructuring. This led to the merger of NPB and the Singapore Industrial Research Standards and Research Institute into the Singapore Productivity and Standards Authority (PSB) in 1996.

To better manage the determinants of TFP, PSB’s new areas of activity are productivity promotion, human resource development, technology application, standards and quality development. In accordance with Government policy, PSB also conducts a number of fee collection services such as training, consulting, technology application, testing and certification.

However, by 2002, PSB was renamed the Agency for Standards, Productivity and Innovation (SPRING) to focus on developing small and medium enterprises, promoting and innovating, standardizing and measuring.

After years of speeding up the implementation of the Productivity Movement, great support has been received from organizations such as: Public Services, Ministry of Defense and National Trade Union Committee. Each of these organizations has Productivity Steering Committees, which coordinate and organize their activities regularly to maintain productivity improvement activities for their workforce.

Productivity and Quality Office