STAY LEAN,GROW STRONG

• LEANER OPERATIONS• A STRONGER SINGAPOREAN CORE

• HIGHER SKILLED WORKERS

A joint initiative by:

The Lean Enterprise Development (LED) Scheme helps you achieve

Submit your queries to leds@mom.gov.sg

WHY LED?

As the growth of Singapore’s workforce slows down, our Small and Medium Enterprises (SMEs) have to adapt to a new manpower-lean landscape. At the same time, it is important to generate good jobs for Singaporeans.

How can your company benefit?

BECOME manpower-leanRaise your productivity level through innovation and automation. This will allow you to achieve higher business output with same or less manpower.

DEVELOP a stronger Singaporean coreTrain your Singaporean staff and create higher quality job opportunities for them. This will ensure a steady pipeline of workers with the right skills for your business goals.

BUILD a higher quality workforceUltimately, you will benefit from higher skilled and more productive employees. Singapore will also benefit from better jobs for locals, and a smaller but higher quality pool of foreign workers as a supplement.

Eligibility

The LED Scheme is open to SMEs that are interested in becoming more manpower-lean, developing a stronger Singaporean core, and building a quality workforce.

Priority will be given to projects that have the potential to scale to create transformational change for their respective industries. Proposals that involve groups of companies and/or are endorsed by the relevant industry association or union will also be given priority.

How to Apply

You can download the application form available at www.mom.gov.sg/newsroom/press-releases/2015/0819-leds

Submit your LED Scheme application form to the LED Taskforce at leds@mom.gov.sg

Eligibility

The LED Scheme is open to SMEs that are interested in becoming more manpower-lean, developing a stronger Singaporean core, and building a quality workforce.

Priority will be given to projects that have the potential to scale to create transformational change for their respective industries. Proposals that involve groups of companies and/or are endorsed by the relevant industry association or union will also be given priority.

How to Apply

You can download the application form available at www.mom.gov.sg/LEDS

Submit your LED Scheme application form to the LED Taskforce at leds@mom.gov.sg

LED SCHEME DEVELOPMENT ROADMAP

DESIRED OUTCOMES: FUTURE-READY ENTERPRISES

HOW?

Build a higher quality workforceYou will benefit from:

• Higher skilled workers• A more competitive workforce

For example:• Decrease in number and/or ratio of low-skilled workers• Increase in number and/or ratio of Singaporeans in PMET jobs

Develop a stronger Singapore coreSingaporeans will enjoy:

• Better pay• Better jobs• Better careers

For example:• Increase in ratio of Singaporean employees• Increase in median wages of Singaporean employees• Enhanced career progression pathways for workers

Reduce reliance on manpower• Optimise processes through technology• Business innovation remodelling• Process re-engineering• Adopt manpower-lean operation formats• Adopt productivity practices e.g. Lean Six Sigma, 5S

EXAMPLES OF SUPPORT

Enhance Singaporean Core & Workforce Quality• Re-design jobs to improve productivity, skills, wages and career progression• Strengthen leadership, human resource and Workplace Safety & Health (WSH) practices to attract and retain talents, and enhance skills-based career progression pathways

Become manpower leanYou will achieve:

• Higher productivity• Optimised manpower• Minimised wastage

For example:• Higher value add per worker• More output per worker• Overall reduction in man hours or headcount required

Building Talent• P-Max• Attach and Train (AnT)/• • Place and

Train (PnT)/

Professional Conversion Programmes (PCP)

• SME Talent Programme

(STP) • SkillsFuture Earn & Learn

Programme (ELP)• Career Support

Programme (CSP)

Training Support• Manpower Lean Programme e.g. OMNI-LITE• Enterprise

Training Support

(ETS)

• Enhanced Training Support

for SMEs (ETSS)

• Workforce Skills Qualification

(WSQ)

• Lean Enterprise Accelerated

Programme (LEAP)

Capability Upgrading/ Technology Adoption• Capability Development Grant (CDG)• SMEs Go Digital• Inclusive Growth Programme (IGP) • Partnership for Capability Transformation (PACT)• WorkPro

EXAMPLE 1: A leaner, stronger and more productive team

A logistics firm intends to automate its processes to raise productivity and reduce its reliance on foreign workers.

Current

60 Singaporean Employees

Eventual

60 Singaporean Employees

Interim

60 Singaporean Employees

Local workers are trained to operate the new equipment.

25 Work Permit Holders

15 Work Permit Holders

15 Work Permit Holders

With automation, the firm can reduce its Work Permit Holders from 25 to 15.

15 S Pass Holders

13 S Pass Holders

13+2 S Pass Holders

Without LED support, the firm will lose 2 S Pass Holders as its foreign worker quota shrinks along with its total workforce. LED support allows it to retain all 15 S Pass Holders.

Upon project completion, the temporary quota will be lifted. With automation and higher skilled local staff, the leaner firm will enjoy increased productivity through less manpower required. It will also be able to offer its local workers better jobs and higher salaries.

+

LED SCHEME DEVELOPMENT ROADMAP

DESIRED OUTCOMES: FUTURE-READY ENTERPRISES

HOW?

Build a higher quality workforceYou will benefit from:

• Higher skilled workers• A more competitive workforce

For example:• Decrease in number and/or ratio of low-skilled workers• Increase in number and/or ratio of Singaporeans in PMET jobs

Develop a stronger Singapore coreSingaporeans will enjoy:

• Better pay• Better jobs• Better careers

For example:• Increase in ratio of Singaporean employees• Increase in median wages of Singaporean employees• Enhanced career progression pathways for workers

Reduce reliance on manpower• Optimise processes through technology• Business innovation remodelling• Process re-engineering• Adopt manpower-lean operation formats• Adopt productivity practices e.g. Lean Six Sigma, 5S

EXAMPLES OF SUPPORT

Enhance Singaporean Core & Workforce Quality• Re-design jobs to improve productivity, skills, wages and career progression• Strengthen leadership, human resource and Workplace Safety & Health (WSH) practices to attract and retain talents, and enhance skills-based career progression pathways

Become manpower leanYou will achieve:

• Higher productivity• Optimised manpower• Minimised wastage

For example:• Higher value add per worker• More output per worker• Overall reduction in man hours or headcount required

Building Talent• P-Max• Place and Train (PnT)/ Professional Conversion Programmes (PCP) • SME Talent Programme (STP) • SkillsFuture Earn & Learn Programme (ELP)• Career Support Programme (CSP)

Training Support• Productivity Initiatives in Services & Manufacturing (PRISM) e.g. OMNI-LITE• Enterprise Training Support (ETS)• Enhanced Training Support for SMEs (ETSS) • Workforce Skills Qualification (WSQ)• Lean Enterprise Accelerated Programme (LEAP)

Capability Upgrading/ Technology Adoption• Capability Development Grant (CDG)• iSPRINT• Inclusive Growth Programme (IGP) • Partnership for Capability Transformation (PACT)• WorkPro

Integrated Government Assistance Existing government schemes have been integrated to facilitate business transformation. An inter-agency LED taskforce will help you tap relevant assistance in a coordinated manner.

Transitional Manpower Support (Optional)Transitional foreign manpower is available to support the implementation of your LED projects. This will enable your operations to continue as usual while you adapt to your new business structure.

Temporary Foreign Workers AllowanceEngage foreign workers temporarily while you recruit and train Singaporeans to take on better jobs.

Transfer of Foreign ExpertisePool foreign sources of expertise, such as master craftsmen, at the industry level, to help transfer know-how to the local workforce.

The transitional foreign manpower support for each approved project is temporary and conditional on fulfilment of approved commitments. It is meant to prevent disruption to your business during restructuring.

This scheme will be piloted for two years, from 1 October 2015 to 30 September 2017.

S Pass Holders AllowanceMaintain your existing quota for S Pass Holders despite engaging fewer Work Permit Holders.

S

WHAT DOES THE LED SCHEME INVOLVE?

EXAMPLE 2: A pipeline of skills-ready Singaporean workers

A Food Services firm intends to change its existing business model to a manpower-lean Grab-and-Go concept serving ready-to-eat meals. A central kitchen will be set up to produce these meals. It needs to hire more trained employees on its R&D team. It also wants to sponsor 5 local polytechnic and ITE students through the SkillsFuture Earn & Learn Programme.

Current

85 Singaporean Employees

Interim

90 Singaporean Employees

The firm can receive grant support to defray the cost incurred for kitchen automation and training such as the development of an On-The-Job Training (OJT) blueprint.

Its 85 original staff and 5 new staff will all have the skills needed to take on higher value projects.

15 S PassHolders

S PassHolders

S PassHolders

15+3

Temporary additional manpower quotas allow the firm to hire 3 more S Pass Holders for its business model transformation. Full-time staff will be deployed to mentor the students while they are undergoing training.

$10M in revenue

in revenue$15M

The firm can start to produce ready-to-eat meals through its central kitchen and enjoy increased revenue.

Eventual

90 Singaporean Employees 15

The temporary S Pass quota will be removed after the students have completed their training. Both the firm and its employees will benefit from a leaner structure as revenue grows faster than headcount. The firm can afford to reward employees with better pay.

in revenue$15M

+

Integrated Government Assistance Existing government schemes have been integrated to facilitate business transformation. An inter-agency LED taskforce will help you tap relevant assistance in a coordinated manner.

Transitional Manpower Support (Optional)Transitional foreign manpower is available to support the implementation of your LED projects. This will enable your operations to continue as usual while you adapt to your new business structure.

Temporary Foreign Workers AllowanceEngage foreign workers temporarily while you recruit and train Singaporeans to take on better jobs.

Transfer of Foreign ExpertisePool foreign sources of expertise, such as master craftsmen, at the industry level, to help transfer know-how to the local workforce.

The transitional foreign manpower support for each approved project is temporary and conditional on fulfilment of approved commitments. It is meant to prevent disruption to your business during restructuring.

S Pass Holders AllowanceMaintain your existing quota for S Pass Holders despite engaging fewer Work Permit Holders.

S

WHAT DOES THE LED SCHEME INVOLVE?

Find out more at www.mom.gov.sg/LEDSSubmit your queries to leds@mom.gov.sg