Local F&B Industry to Learn from Japanese Counterparts on Manpower-Lean Approaches Through Automation and Refining Work Processes

1. Mr Teo Ser Luck, Minister of State for Manpower, together with the Restaurant Association of Singapore (RAS), the Singapore Productivity Centre (SPC), and SPRING Singapore, went on a Lean Enterprise Development (LED) Study Mission to Japan from 5 June 2016 to 10 June 2016. Mr Teo was accompanied by 26 delegates from F&B companies. The objective of the visit was to learn about productivity best practices that could be adopted by the local F&B industry to allow them to grow their business in a manpower-lean way.
2. The Japan Productivity Centre (JPC), supporting organisation of the LED Study Mission, brought Mr Teo and the trip participants to visit some Japanese Quick Service Restaurants (QSR) where product specialisation and quality, lean menus, superior value-for-money and being manpower-lean are critical to their success. These restaurants have been able to increase their work efficiency and sales revenue through adoption of Process Management and investment in better Human Resource (HR) Management. Some restaurants had also adopted good age management practices, and redesigned their job processes and workplaces, to make them more attractive employers for older workers.
3. Mr Teo had also met with Mr Hiromi Mitsubayashi, Japan’s Parliamentary Vice-Minister of Health, Labour and Welfare, during the study mission. They had discussed issues such as the re-employment of older workers, and employment insurance during the meeting.
4. The LED Study Mission included a visit to the International Food Machinery and Technology Exhibition (FOOMA Japan) which exposed the participants to some of the state-of-the art food machinery and food processing technology.
5. “FOOMA Japan showcases many interesting state-of-the-art equipment which can help our local restaurateurs improve their work processes. For example, I was shown an equipment that made use of non-contact 3D scanning sensor to slice the whole meat into similar portions quickly and in a hygienic way. It could be a useful add-on to the kitchen to achieve manpower-lean operations.” Mr Teo said.
6. Mr Andrew Tjioe, President, Restaurant Association of Singapore (RAS), said: “Competition in Japanese F&B industry is cut throat. Most Japanese restaurateurs have adopted manpower-lean practices due to shortage of staff and high cost. Many would transfer the saving by increasing their share of the food cost to as high as 55%, customers are happy, and the restaurants enjoy good business.
7. “I saw quite a number of very useful equipment which could help us improve our production efficiency as well as the product quality. These include conveyor frying machines, small but powerful vegetable washers suitable for small central kitchen, image printers which can print your photos on cookies or white chocolate using edible colours. I trust that participants on this trip have acquired useful learnings which they can implement in their companies.”
8. Mr Michael Tan, CEO, Singapore Productivity Centre (SPC), said: “This observational study mission has contributed to SPC’s growing knowledge of best practices and available technologies in Japan and around the world which will enable SPC to better help Singapore SMEs to achieve greater productivity by upgrading their capabilities. Several participants have already identified projects to embark on and SPC will be working with them on the implementation. In addition, SPC will also be publishing an F&B Automation Guide to help SMEs identify and adopt suitable solutions.”
9. Mr Teo added: “I have asked the participants to look out for equipment that are suitable and can be adopted back in their restaurants and kitchens. The Government is very keen to support manpower-lean growth via the LED scheme; whether it is in the form of grant support, consultancy advice or temporary manpower flexibility, the LED taskforce can propose a package suitable for different circumstances and industries. Let us all work together to help SMEs re-invent their current work processes, and become more manpower-lean.”
10. Firms which are interested to find out how to adopt best practices and automation in their business are encouraged to approach RAS, SPC and SPRING Singapore.