Professional Documents
Culture Documents
TRANSFORMATION
INSIGHTS REPORT 2019
BACKGROUND
FINDINGS
EPILOGUE
ACKNOWLEDGEMENTS
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SIRI Manufacturing Transformation Insights Report 2019
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07
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37 Singapore Economic Development Board (EDB), a government agency under the Ministry
of Trade and Industry, is responsible for strategies that enhance Singapore’s position as
a global centre for business, innovation, and talent. We undertake investment promotion
and industry development, and work with international businesses, both foreign and local,
for their investments. Our mission is to create sustainable economic growth, with vibrant
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Catalysing The Transformation Of Manufacturing
BACKGROUND
Shop Floor
Workforce Learning Inter- and Intra-
4. 7. 10. & Development Company
Collaboration
Integrated 13. 15.
Vertical Horizontal
Product Enterprise
Integration Integration
Lifecycle
5. 8. 11.
Leadership Strategy &
Competency Governance
Facility
1. 2. 3. 6. 9. 12. 14. 16.
3
SIRI Manufacturing Transformation Insights Report 2019
ABOUT THE REPORT
Two years after the launch of SIRI, we have arrived As such, this report seeks to provide all stakeholders
at the next phase: sharing insights to illuminate the within the industrial sector with:
current state of manufacturing transformation. The
1 A data-backed snapshot of the current state
Manufacturing Transformation Insights Report 2019
analyses data collected from the SIRI Assessments of industrial transformation across multiple
of 200 Singapore-based manufacturing facilities. manufacturing industries;
They span 12 manufacturing industries, ranging from 2 Observations relating to the three building blocks
small, family-owned Singaporean enterprises to large, of Industry 4.0 – Process, Technology, and
multinational corporations (MNCs) whose parent Organisation; and
companies originate from 14 different countries across
3 A benchmark for manufacturers to assess and
Europe, North America and Asia Pacific.
compare their Industry 4.0 maturity levels against
While we focused our report on Singapore-based those of their peers in the same industry.
facilities, the international profile and diversity of
We hope that the insights will prove useful to
industries covered by the data make the report’s
manufacturers, governments, trade associations, and
findings relevant for the global manufacturing
other stakeholders in ideating and developing new
community as well.
solutions and interventions that will accelerate global
industrial transformation towards the digital era.
29%
51%
33%
%
20
SMALL AND
200
MEDIUM ENTERPRISES
12
MANUFACTURING
INDUSTRIES
COMPANIES
14
Annual Entity Turnover* COUNTRIES
< $100M
$100M - $500M 2018
-2019
> $500M
ASSESSMENT
PERIOD
Figure 2 Overview of data set used in the SIRI Manufacturing Transformation Insights Report 2019
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Catalysing The Transformation Of Manufacturing
THE 12 MANUFACTURING
INDUSTRIES
Aerospace
The Aerospace sector comprises companies that manufacture, assemble, repair, and/or service
equipment, parts, and products for civil aircraft, military aircraft, and spacecraft. Products include but
are not limited to engines, fan blades, and remanufactured parts.
Chemicals
The Chemicals sector comprises companies that produce specialty and other chemicals. Products
include but are not limited to plastics, synthetic fibres, additives, adhesives, sealants, specialty paints,
pigments, coatings, and fragrances.
Electronics
The Electronics sector comprises companies that manufacture electronic components, equipment,
and consumer electronics products. Products include but are not limited to connection devices,
electron tubes, electronic capacitors, resistors, and printed circuit boards.
Energy
The Energy sector comprises companies that engage in refining and cracking of crude oil as well as
the production of petrochemical primary products. Products include but are not limited to petroleum
naphtha, gasoline, diesel, liquefied petroleum gas, olefins, and fuel oils.
General Manufacturing
The General Manufacturing sector comprises companies that manufacture broad-based consumer
and commercial products that are not classified under other industries. Products include but are not
limited to bicycles, clothes, packaging boxes, and shoes.
5
SIRI Manufacturing Transformation Insights Report 2019
Logistics
The Logistics sector comprises companies that provide freight transportation, courier, warehousing
and other logistical services. Services include but are not limited to storage, distribution, freight
forwarding, and end-to-end goods delivery.
Medical Technology
The Medical Technology sector comprises companies that manufacture healthcare equipment
and devices. Products include but are not limited to medical instruments, drug delivery systems,
cardiovascular and orthopedic devices, and diagnostic equipment.
Pharmaceuticals
The Pharmaceuticals sector comprises companies engaged in the research, development, and
production of pharmaceuticals. Products include but are not limited to active pharmaceutical
ingredients, medicines, and veterinary drugs.
Precision Engineering
The Precision Engineering sector comprises companies engaged in the production of complex
machinery and systems as well as precision modules and components, serving a wide variety of
industries such as electronics, aerospace, and medical technology. Products include but are not
limited to laser systems and machine tools.
Semiconductors
The Semiconductors sector comprises companies engaged in the design and fabrication of
semiconductors and related products. Products include but are not limited to integrated circuits and
electronic discrete components such as diodes and transistors.
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Catalysing The Transformation Of Manufacturing
FINDINGS
1
The SIRI Maturity of an industry is calculated using the SIRI Maturity Ranking Methodology, which is described as follows:
I. In each SIRI dimension, the 12 industries are ranked against each other, from 1 (highest) to 12 (lowest).
II. Each industry’s rankings across all 16 SIRI dimensions are aggregated to obtain a cumulative ranking value. The smaller the cumulative ranking value,
the better that industry has fared compared to others.
III. Using the cumulative ranking value, industries are ranked from 1 (lowest SIRI Maturity) to 12 (highest SIRI Maturity).
The SIRI Maturity Ranking Methodology applies at both the industry and company level. This methodology was adopted because the bands in different SIRI
dimensions represent varied states and are not equivalent, hence using a pure aggregation of SIRI bands across all 16 SIRI dimensions would not be meaningful in
evaluating performance. For instance, a Band 1 in Vertical Integration is not equivalent to a Band 1 in Shop Floor Automation.
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SIRI Manufacturing Transformation Insights Report 2019
Archetypes of Transformation
HIGH Semiconductors
Pharmaceuticals
Energy
Medical
Technology
Electronics
SIRI MATURITY
Chemicals
Logistics
Aerospace
Precision
Engineering
General
Manufacturing
Marine &
Offshore Engineering
Food &
Beverage
LOW
HIGH SIRI VARIANCE LOW
SAVANNA TUNDRA
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Catalysing The Transformation Of Manufacturing
Coniferous Forest
A coniferous forest is associated with rows of uniform- manufacturing processes, technology adoption, and
looking pine trees growing tall and strong. This habitat organisational development. Having a small group of
is used to illustrate the key characteristic of industries large companies in turn facilitates more coordinated
in this archetype: they rank high in SIRI Maturity and low knowledge sharing amongst key players to address
in SIRI Variance. common problem statements, which can further
accelerate transformation across the sector.
Companies within these sectors are generally further
along in their Industry 4.0 journeys and are largely To support these industries that are continuously
similar in their pace of transformation. Of course, an forging ahead, governments should ensure that the
industry may fall into the Coniferous Forest Archetype sectors’ physical and social infrastructure enables and
due to a deliberate effort to transform, but there are does not constrain development. For instance, it would
also other reasons why some sectors may inherently be critical to groom a highly skilled workforce to help
tend toward the Coniferous Forest Archetype. Such these industries achieve their Industry 4.0 ambitions. In
industries typically manufacture products that are turn, companies within the Coniferous Forest Archetype
technologically intensive and highly regulated; this can serve as role models, thought leaders, and
generally favours sectors that mostly consist of inspirations for others to embark on their own industrial
MNCs with resources to pursue higher standards in transformation.
Case Study
The Platform
The Biopharmaceutical Manufacturers’ Advisory Committee (BMAC) is a public-private
platform in Singapore that comprises representatives from the pharmaceuticals, biologics,
and nutritional sectors, as well as local government agencies.
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SIRI Manufacturing Transformation Insights Report 2019
Tundra
The next archetype is represented by the tundra, a sectors to explore initiatives such as redesigning
habitat with strong winds, low temperatures, and limited manufacturing process, enhancing workforce training
rainfall. With its harsh climate, the tundra illustrates the programs, and fostering closer partnerships with key
key characteristics of industries in this archetype: they suppliers and customers.
rank low in SIRI Maturity and SIRI Variance.
2
“Boeing: Commercial.” Boeing, www.boeing.com/commercial/
3
“Orders and Deliveries.” Airbus, www.airbus.com/aircraft/market/orders-deliveries.html
4
“Performance Review: Operating & Financial Review.” Kepcorp.com, Keppel Corporation, 2019,
www.kepcorp.com/annualreport2018/pdf/keppel-corporation-limited-performance-review.pdf
5
“Year 2000 Energizer Holdings, Inc. Annual Report.” Annualreports.com, Energizer Holdings Inc., 2000,
www.annualreports.com/HostedData/AnnualReportArchive/e/NYSE_ENR_2000.pdf
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Catalysing The Transformation Of Manufacturing
Savanna
The last archetype is represented by the savanna, a when it comes to transformation, with only a few larger
semi-arid habitat scattered with shrubs and isolated or more forward-looking players able to pull ahead of
trees. The Savanna Archetype thus describes industries the rest.
that rank low in SIRI Maturity but exhibit high SIRI
Variance. While most companies within these industries While many companies in this archetype remain passive
are in the earlier stages of industrial transformation, towards transformation, those that have decided to
a small number of players have forged ahead, like the be more proactive can start by drawing lessons from
occasional large trees that rise above the grasslands. early movers and emulating their best practices.
To encourage more businesses to actively pursue
Unlike industries in the Coniferous Forest Archetype, transformation, governments and trade associations
industries in the Savanna Archetype are usually home can consider replicating effective initiatives from
to large bases of companies that heavily skew towards sectors in the Coniferous Forest Archetype, such as
small- and medium-sized enterprises, as exemplified by fostering platforms for industry knowledge sharing
the F&B and Precision Engineering sectors. This gives or profiling, promoting, and celebrating the success
rise to very diverse attitudes, resources, and constraints stories of more forward-looking firms.
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SIRI Manufacturing Transformation Insights Report 2019
Case Study
The Company
Headquartered in California, Coherent is among the top three manufacturers of industrial
laser systems and components globally. In 2011, Coherent established its manufacturing
presence in Asia with the setup of a factory and regional headquarters in Singapore.
“
With intentions to upgrade its Singapore The SIRI Assessment helped us better
manufacturing site, Coherent completed understand the current state of our
the SIRI Assessment in 2018 as a facility and how it compared to the rest
starting point for its transformation plan. of the industry. Through it, we realised
The assessment enabled Coherent to that there was a lot of room for us to
uncover new opportunities that were improve and opportunities we could
not previously considered. Building on work on. This knowledge guided the
the assessment results, the company development of our Lean-Digitalisation
”
then engaged a consultant to develop a Transformation roadmap.
comprehensive transformation roadmap.
The planned improvements, which ― Mr Goh Hin Tiang,
Coherent targets to complete by 2020, General Manager,
include enhancements to connectivity and Coherent Singapore
integration across the company’s various
systems as well as developing new skills
roadmaps to train its employees.
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Catalysing The Transformation Of Manufacturing
2 The leading companies consistently outperform the rest across all 16
SIRI dimensions.
6
The same SIRI Maturity Ranking Methodology described in Footnote 1 was applied at the company level.
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SIRI Manufacturing Transformation Insights Report 2019
Performance of 200
Performance of 200 Companies Companies
(2018-2019)
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration
PROCESS
2 Horizontal
SUPPLY CHAIN Integration
TOP 10%
PRODUCT 3 Integrated
Product
LIFECYCLE Lifecycle MIDDLE 80%
BOTTOM 10%
4 Shop Floor 4
Automation
5 Enterprise
AUTOMATION Automation
6 Facility
Automation
7 Shop Floor
Connectivity
TECHNOLOGY
8 Enterprise
CONNECTIVITY Connectivity
9 Facility
Connectivity
10 Shop Floor
Intelligence
INTELLIGENCE 11 Enterprise
Intelligence
12 Facility
Intelligence
13 Workforce
Learning &
Development
TALENT
READINESS
ORGANISATION
14 Leadership
Competency
15 Inter- and
Intra-Company
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy &
Governance
BAND 0 1 2 3 4 5
Figure 4 Performance of 200 companies across the 16 SIRI dimensions (2018 - 2019)
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Catalysing The Transformation Of Manufacturing
3 Process Building Block: The Broad Middle and Bottom Performers are
working to digitise their processes, while the Top Performers are
working to integrate their digitised processes.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration
TOP 10%
PROCESS
2 Horizontal
SUPPLY CHAIN MIDDLE 80%
Integration
BOTTOM 10%
3 Integrated
PRODUCT Product
LIFECYCLE Lifecycle
BAND 0 1 2 3 4 5
Across the three dimensions within the Process dimensions (Vertical Integration, Horizontal Integration,
Building Block, the Broad Middle and Bottom and Integrated Product Lifecycle). In comparison,
Performers are mostly at a stage where their operations, the Top Performers’ average SIRI score for each of
supply chain, and product lifecycle processes are the three dimensions sits between a Band 2 (Digital)
generally defined and ready for digitisation. As seen in and Band 3 (Integrated), demonstrating that these
the graph above, the average SIRI scores of the Broad companies have largely completed the digitisation of
Middle and Bottom Performers falls between a Band 1 their processes and are taking the next steps towards
(Defined) and Band 2 (Digital) across the three Process integrating them.
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SIRI Manufacturing Transformation Insights Report 2019
Case Study
The Company
A small, family-owned enterprise founded in 1943, People Bee Hoon manufactures a variety
of rice vermicelli products for Southeast Asian, US, and European markets.
“
In 2017, People Bee Hoon started planning for The SIRI Assessment provided me
the expansion of its existing facility in order to with an overall snapshot of my factory
triple production capacity from 25,000 packets and informed my thinking about how
a day to 75,000 packets a day. The company my company should approach digital
understood that having a well-designed transformation. The journey to design
manufacturing process would be critical for a better process to manufacture
brownfield expansion. As such, it consulted vermicelli has been a very educational
industry veterans and visited other food and enriching one for my employees
”
manufacturing facilities to learn how to design and me.
an integrated and efficient manufacturing
― Mr Desmond Goh,
process that could reduce manual labour
General Manager,
and facilitate deployment of new shop floor People Bee Hoon Factory
automation technologies. People Bee Hoon
now anticipates being able to improve product
quality and increase production volume while
maintaining existing workforce size.
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Catalysing The Transformation Of Manufacturing
4 Technology Building Block: The biggest gaps between the Top
Performers and the Broad Middle and Bottom Performers are
in Connectivity.
5 5
LARGEST GAP IS
IN CONNECTIVITY
4 4
TOP 10%
MIDDLE 80%
BOTTOM 10%
3 3
2 2
1 1
0 0
4 5 6 7 8 9 10 11 12
BAND
BAND
Shop Floor Enterprise Facility Shop Floor Enterprise Facility Shop Floor Enterprise Facility
TECHNOLOGY
In the Technology Building Block that comprises the A common school of thought is that automation forms
Automation, Connectivity and Intelligence Pillars, the the basis for industrial transformation. However, in this
biggest gaps separating the Top Performers from the digital age where data is the new oil, connectivity has
Broad Middle and the Bottom Performers are in the become even more critical. A highly connected factory,
three dimensions within the Connectivity Pillar. where all assets (machines, products, materials, labour,
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SIRI Manufacturing Transformation Insights Report 2019
and peripherals) are linked via a common network, will Interestingly, while the Top Performers fare exceedingly
not only enable more extensive and effective machine- well in the Connectivity Pillar, they only perform slightly
to-machine and human-to-machine communications, better in the Intelligence Pillar as compared to the Broad
but also enable firms to better leverage data to generate Middle and the Bottom Performers. The benefits of high
new insights and facilitate more real-time decision levels of connectivity will be limited if companies do
making. Establishing a comprehensive Industrial not know what to do with the data. Intelligence across
Internet-of-Things (IIoT) architecture will accelerate the shop floor, enterprise, and facility will be the next
a firm’s ability to achieve enhanced collaboration and frontier for companies, particularly the Top Performers,
synchronisation throughout the manufacturing site, to unlock the true potential of Industry 4.0.
thereby generating long-term advantages. To truly
extract value from Industry 4.0, manufacturers should
therefore consider allocating more resources to further
augment connectivity across shop floors, enterprises
and facilities.
Case Study
The Company
Chevron Oronite, the California-based subsidiary of energy giant Chevron, operates a
lubricant additives plant in Singapore, which is not only its largest in Asia but also one of
its pioneer facilities in digital transformation.
”
value to our operations in the future
information from different instruments and
systems while in the control room, hence
reducing time in the field. Worker efficiency ― Mr Goh Koon Eng,
General Manager Asia Pacific, Manufacturing
has surged, saving the manufacturer
and Supply, Chevron Oronite
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Catalysing The Transformation Of Manufacturing
Case Study
The Company
US biotechnology firm Amgen is a world-leading manufacturer of biologics medicine. Its
Next-Generation Biomanufacturing facility in Singapore is the company’s first manufacturing
facility in Asia, and the first to use latest innovations and multiple technologies to achieve
greater speed, productivity, and flexibility in commercial-scale manufacturing.
“
In the biomanufacturing industry,
For example, the company has implemented
connectivity on the shop floor is
a structured data integration and analytics
generally high and as a result, a lot of
platform combined with predictive modelling
data is being collected. The key is to
and visualisation to enable centralised process
integrate all the data and the systems,
monitoring across its entire manufacturing
like our manufacturing execution
network. With this, the company is able to
system, enterprise resource planning,
carry out activities like analysing historical
[and] raw materials system, into a
information across products and sites to
single enterprise data lake. This will
predict overall performance, quality, and the
allow for greater accessibility and
likelihood of successfully manufacturing
aggregation of data that can then drive
additional batches without extending
”
innovation and deliver impact.
production schedules.
― Mr James Weidner,
Executive Director of Process Development,
Amgen Singapore
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SIRI Manufacturing Transformation Insights Report 2019
5 Organisation Building Block: While Leadership Competency is an
important starting point for any company’s industrial transformation,
strong Inter- and Intra-Company Collaboration is critical to scale and
sustain it.
MIDDLE 80%
13 Workforce Learning 14 Leadership Competency 15 Inter- and Intra-Company 16 Strategy & Governance
BAND
BAND
& Development Collaboration
ORGANISATION
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Catalysing The Transformation Of Manufacturing
At first glance, the Leadership Competency SIRI scores small digital transformation projects for quick wins, or
of the Top Performers, Broad Middle and Bottom simply facilitating the proliferation of these new ideas
Performers are not too dissimilar. However, it is clear and concepts to the rest of the company.
that the Bottom Performers could do better in Inter- and
Intra-Company Collaboration. It takes a village to raise a child, and the same
principle applies in transforming a manufacturing
A well-informed management team is a necessary plant. Industrial transformation is not something that
starting point on any company’s manufacturing can be achieved in a day, nor by a single individual.
transformation journey. Within corporate leadership The ability for any company to transform at scale is
ranks, awareness of Industry 4.0 has grown largely dependent on whether all key stakeholders ―
significantly over the years, and executives from all employees, customers, and suppliers ― are energised,
200 manufacturers covered in this report have some empowered, and committed to the transformation
familiarity with the latest Industry 4.0 trends and cause. As corporate leaders in the manufacturing
technologies. Now, it is time for leaders to translate sector mull over the next steps for transformation,
this knowledge into action. This could be done enhancing Inter- and Intra-Company Collaboration or
through establishing digital transformation as a key Workforce Learning & Development would be important
organisational mandate, empowering teams to work on initiatives to consider.
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SIRI Manufacturing Transformation Insights Report 2019
Case Study
The Company
German semiconductor company Infineon Technologies is a world leader in semiconductor
solutions. The company manufactures microelectronics that link the digital and the real
world, with semiconductors that enable smart mobility, efficient energy management, and the
secure capture and transfer of data.
“
transformation process. It has thus invested It is essential to ensure that the
heavily into organisational readiness, change organisational element is not neglected,
management, people development, and but rather given equal or even greater
community building. attention, in any major transformation.
At Infineon, we are very deliberate
For instance, Change Ambassadors have and proactive in engaging our entire
been appointed to facilitate two-way workforce to obtain their buy-in for the
communication of new initiatives and promote transformation initiatives and prepare
feedback between shop floor staff and them for the digital working life. That is
”
management. The company also holds regular the only way for transformation to scale.
internal and external roadshows to expose
employees to the benefits of its smart factory ― Dr Laurent Filipozzi,
projects and educate its supplier community VP and Site Head of Plant Singapore,
about the latest developments in Industry Infineon Technologies Asia Pacific
4.0. In addition, Infineon has partnered with
Institutes of Higher Learning to design and
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Catalysing The Transformation Of Manufacturing
EPILOGUE
The Manufacturing Transformation Insights Report as they develop solutions and interventions to support
2019, based on findings from the first 200 official SIRI and accelerate digital transformation.
Assessments, illustrates how SIRI is a robust tool
which can enable a data-driven approach towards We hope that the report can also function as a powerful
understanding the state of industrial transformation, platform to educate and energise the manufacturing
both in Singapore and around the world. community, ultimately inspiring more companies to also
kickstart their Industry 4.0 journeys.
At the back of this report, information on how each
manufacturing industry performed across the 16 We have come a long way since the launch of SIRI
SIRI dimensions is captured in its respective Industry almost three years ago. In that time, we have had
Performance Card. We are confident that the Industry the privilege to work alongside a vast network of
Performance Cards, Archetypes of Transformation and technology players, manufacturers, trade associations,
Insights from this report will collectively serve as a and international organisations. To all who have helped
useful guide for corporations and governments alike, us bring SIRI to where it is today, we thank you.
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SIRI Manufacturing Transformation Insights Report 2019
INDUSTRY
PERFORMANCE
CARDS
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Catalysing The Transformation Of Manufacturing
Aerospace
The Aerospace sector comprises companies that manufacture, assemble, repair, and/or service equipment, parts, and
products for civil aircraft, military aircraft, and spacecraft. Products include but are not limited to engines, fan blades, and
remanufactured parts.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 1.50 Approaching Digital
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 1.50 Approaching Digital
PRODUCT 3 Integrated
Product 1.33 Defined
LIFECYCLE Lifecycle
4 Shop Floor
Automation 1.33 Basic
5 Enterprise
AUTOMATION Automation 1 Basic
6 Facility
Automation 1.17 Basic
7 Shop Floor
Connectivity 1 Connected
TECHNOLOGY
8 Enterprise
CONNECTIVITY Connectivity 2.17 Interoperable
9 Facility
Connectivity 0.50 Approaching Connected
10 Shop Floor
Intelligence 1 Computerised
11 Enterprise
INTELLIGENCE Intelligence 0.83 Approaching Computerised
12 Facility
Intelligence 0.67 Approaching Computerised
13 Workforce
Learning & 2.17 Continuous
Development
TALENT
ORGANISATION
READINESS
14 Leadership
Competency 2.17 Informed
15 Inter- and
Intra-Company 2.67 Approaching Coordinating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy &
Governance 1.83 Approaching Development
BAND 0 1 2 3 4 5
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SIRI Manufacturing Transformation Insights Report 2019
Chemicals
The Chemicals sector comprises companies that produce specialty and other chemicals. Products include but are not
limited to plastics, synthetic fibres, additives, adhesives, sealants, specialty paints, pigments, coatings, and fragrances.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 2 Digital
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 1.32 Defined
PRODUCT 3 Integrated
Product 1.37
LIFECYCLE Lifecycle
Defined
4 Shop Floor
Automation 1.95 Approaching Advanced
5 Enterprise
AUTOMATION Automation 1.53 Approaching Advanced
6 Facility
Automation 1.53 Approaching Advanced
7 Shop Floor
Connectivity 1.95 Approaching Interoperable
TECHNOLOGY
8 Enterprise
CONNECTIVITY Connectivity 2.21 Interoperable
9 Facility
Connectivity
1.21 Connected
10 Shop Floor
Intelligence
1.68 Approaching Visible
13 Workforce
Learning & 1.95 Approaching Continuous
Development
TALENT
ORGANISATION
READINESS
14 Leadership 2.16 Informed
Competency
15 Inter- and
Intra-Company 2.42 Cooperating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 1.63 Approaching Development
Governance
BAND 0 1 2 3 4 5
26
Catalysing The Transformation Of Manufacturing
Electronics
The Electronics sector comprises companies that manufacture electronic components, equipment, and consumer
electronics products. Products include but are not limited to connection devices, electron tubes, electronic capacitors,
resistors, and printed circuit boards.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 1.75 Approaching Digital
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 1.58 Approaching Digital
PRODUCT 3 Integrated
LIFECYCLE
Product 1.58 Approaching Digital
Lifecycle
4 Shop Floor
Automation 1.92 Approaching Advanced
5 Enterprise
AUTOMATION Automation
1.75 Approaching Advanced
6 Facility
Automation
1.58 Approaching Advanced
7 Shop Floor
Connectivity
1.25 Connected
TECHNOLOGY
8 Enterprise
2.17 Interoperable
CONNECTIVITY Connectivity
13 Workforce
Learning & 1.83 Approaching Continuous
Development
TALENT
ORGANISATION
READINESS
14 Leadership 2 Informed
Competency
15 Inter- and
Intra-Company 2.58 Approaching Coordinating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 2 Formalisation
Governance
BAND 0 1 2 3 4 5
27
SIRI Manufacturing Transformation Insights Report 2019
Energy
The Energy sector comprises companies that engage in refining and cracking of crude oil as well as the production of
petrochemical primary products. Products include but are not limited to petroleum naphtha, gasoline, diesel, liquefied
petroleum gas, olefins, and fuel oils.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 2.14 Digital
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 1.14 Defined
PRODUCT 3 Integrated
Product 0.86 Approaching Defined
LIFECYCLE Lifecycle
INTELLIGENCE
11 Enterprise 1 Computerised
Intelligence
13 Workforce
Learning & 2.57 Approaching Integrated
Development
TALENT
ORGANISATION
READINESS
14 Leadership 2.57 Approaching Semi-dependent
Competency
15 Inter- and
Intra-Company 2.86 Approaching Coordinating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 2.43 Development
Governance
BAND 0 1 2 3 4 5
28
Catalysing The Transformation Of Manufacturing
Food & Beverage
The Food & Beverage (F&B) sector comprises companies that process, produce, and package food and beverage
products. Products include but are not limited to baked goods, canned products, and dehydrated food items.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 1.11 Defined
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 1.19 Defined
PRODUCT 3 Integrated
LIFECYCLE
Product 1.03 Defined
Lifecycle
4 Shop Floor
Automation 1.36 Basic
5 Enterprise
AUTOMATION Automation 1.17 Basic
7 Shop Floor
Connectivity
0.31 None
TECHNOLOGY
8 Enterprise
0.97 Approaching Connected
CONNECTIVITY Connectivity
13 Workforce
Learning & 1.11 Structured
Development
TALENT
ORGANISATION
READINESS
14 Leadership 1.64 Approaching Informed
Competency
15 Inter- and
Intra-Company 1.67 Approaching Cooperating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 1.17 Formalisation
Governance
BAND 0 1 2 3 4 5
29
SIRI Manufacturing Transformation Insights Report 2019
General Manufacturing
The General Manufacturing sector comprises companies that manufacture broad-based consumer and commercial
products that are not classified under other industries. Products include but are not limited to bicycles, clothes,
packaging boxes, and shoes.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 1.29 Defined
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 1.36 Defined
PRODUCT 3 Integrated
LIFECYCLE
Product 1.36 Defined
Lifecycle
4 Shop Floor
Automation 1.50 Approaching Advanced
5 Enterprise
AUTOMATION Automation
1.29 Basic
INTELLIGENCE
11 Enterprise 0.93 Approaching Computerised
Intelligence
13 Workforce
Learning & 1.21 Structured
Development
TALENT
ORGANISATION
READINESS
14 Leadership 1.71 Approaching Informed
Competency
15 Inter- and
Intra-Company 1.93 Approaching Cooperating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 1.43 Formalisation
Governance
BAND 0 1 2 3 4 5
30
Catalysing The Transformation Of Manufacturing
Logistics
The Logistics sector comprises companies that provide freight transportation, courier, warehousing and other logistical
services. Services include but are not limited to storage, distribution, freight forwarding, and end-to-end goods delivery.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 1.71 Approaching Digital
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 2 Digital
PRODUCT 3 Integrated
Product 1.43 Defined
LIFECYCLE Lifecycle
4 Shop Floor
Automation 1.29 Basic
5 Enterprise
AUTOMATION Automation 1.14 Basic
6 Facility
Automation 1.14 Basic
9 Facility
Connectivity
0.86 Approaching Connected
10 Shop Floor
Intelligence 1 Computerised
13 Workforce
Learning & 2.29 Continuous
Development
TALENT
ORGANISATION
READINESS
14 Leadership
Competency 1.86 Approaching Informed
15 Inter- and
Intra-Company 2.57 Approaching Coordinating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 1.71 Approaching Development
Governance
BAND 0 1 2 3 4 5
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SIRI Manufacturing Transformation Insights Report 2019
Marine and Offshore Engineering
The Marine & Offshore Engineering sector comprises companies that manufacture machinery and equipment for explo-
ration and extraction of crude oil and natural gas. Products include land drilling rigs, offshore platforms, and Floating
Production Storage & Offloading (FPSO) conversion units.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 1.09 Defined
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 1.82 Approaching Digital
PRODUCT 3 Integrated
LIFECYCLE
Product 1.73 Approaching Digital
Lifecycle
4 Shop Floor
Automation 1.18 Basic
5 Enterprise
AUTOMATION Automation 1 Basic
6 Facility
Automation 0.55 Approaching Basic
7 Shop Floor
Connectivity 0.73 Approaching Connected
TECHNOLOGY
8 Enterprise
CONNECTIVITY Connectivity 1.45 Connected
9 Facility
Connectivity
0.18 None
10 Shop Floor
Intelligence 0.82 Approaching Computerised
11 Enterprise
INTELLIGENCE Intelligence 0.82 Approaching Computerised
12 Facility
Intelligence 0.27 None
13 Workforce
Learning & 1.82 Approaching Continuous
Development
TALENT
ORGANISATION
READINESS
14 Leadership
Competency 1.82 Approaching Informed
15 Inter- and
Intra-Company 2 Cooperating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 1.36 Formalisation
Governance
BAND 0 1 2 3 4 5
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Catalysing The Transformation Of Manufacturing
Medical Technology
The Medical Technology sector comprises companies that manufacture healthcare equipment and devices. Products
include but are not limited to medical instruments, drug delivery systems, cardiovascular and orthopedic devices, and
diagnostic equipment.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 2 Digital
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 2 Digital
PRODUCT 3 Integrated
LIFECYCLE
Product 2 Digital
Lifecycle
4 Shop Floor
Automation 1.25 Basic
6 Facility
Automation 2 Advanced
7 Shop Floor
Connectivity 0.75 Approaching Connected
TECHNOLOGY
8 Enterprise
CONNECTIVITY Connectivity
1 Connected
9 Facility
Connectivity 1.50 Approaching Interoperable
10 Shop Floor
Intelligence 2 Visible
11 Enterprise
INTELLIGENCE Intelligence 1.50 Approaching Visible
13 Workforce
Learning & 2 Continuous
Development
TALENT
ORGANISATION
READINESS
14 Leadership
Competency 2.50 Approaching Semi-dependent
15 Inter- and
Intra-Company 2.50 Approaching Coordinating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 2 Development
Governance
BAND 0 1 2 3 4 5
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SIRI Manufacturing Transformation Insights Report 2019
Pharmaceuticals
The Pharmaceuticals sector comprises companies engaged in the research, development, and production of
pharmaceuticals. Products include but are not limited to active pharmaceutical ingredients, medicines, and
veterinary drugs.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 1.92 Approaching Digital
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 1.69 Approaching Digital
PRODUCT 3 Integrated
LIFECYCLE
Product 1.46 Defined
Lifecycle
4 Shop Floor
Automation 1.77 Approaching Advanced
5 Enterprise
AUTOMATION Automation 1.23 Basic
9 Facility
Connectivity 2.15 Interoperable
10 Shop Floor
Intelligence 2 Visible
11 Enterprise
INTELLIGENCE Intelligence 1.77 Approaching Visible
13 Workforce
Learning & 2 Continuous
Development
TALENT
ORGANISATION
READINESS
14 Leadership
Competency 2.08 Informed
15 Inter- and
Intra-Company 2.54 Approaching Coordinating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 1.92 Approaching Development
Governance
BAND 0 1 2 3 4 5
34
Catalysing The Transformation Of Manufacturing
Precision Engineering
The Precision Engineering sector comprises companies engaged in the production of complex machinery and systems
as well as precision modules and components, serving a wide variety of industries such as electronics, aerospace, and
medical technology. Products include but are not limited to laser systems and machine tools.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 1.39 Defined
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 1.37 Defined
PRODUCT 3 Integrated
Product 1.39 Defined
LIFECYCLE Lifecycle
4 Shop Floor
Automation 1.32 Basic
5 Enterprise
AUTOMATION Automation 1.24 Basic
6 Facility
Automation 0.89 Approaching Basic
7 Shop Floor
Connectivity 0.66 Approaching Connected
TECHNOLOGY
8 Enterprise
CONNECTIVITY Connectivity
1.24 Connected
9 Facility
Connectivity 0.37 None
10 Shop Floor
Intelligence 1.32 Computerised
11 Enterprise
INTELLIGENCE Intelligence 0.95 Approaching Computerised
12 Facility
Intelligence 0.66 Approaching Computerised
13 Workforce
Learning & 1.42 Structured
Development
TALENT
ORGANISATION
READINESS
14 Leadership
Competency 1.71 Approaching Informed
15 Inter- and
Intra-Company 2.05 Cooperating
STRUCTURE Collaboration
&
MANAGEMENT
16 Strategy & 1.60 Approaching Development
Governance
BAND 0 1 2 3 4 5
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SIRI Manufacturing Transformation Insights Report 2019
Semiconductors
The Semiconductors Sector is comprised of companies engaged in the design and fabrication of semiconductors and
related products. Products include but are not limited to integrated circuits (“IC”) and electronic discrete components
such as diodes and transistors.
BAND 0 1 2 3 4 5
1 Vertical
OPERATIONS Integration 2.56 Approaching Integrated
PROCESS
2 Horizontal
SUPPLY CHAIN Integration 2.11 Digital
PRODUCT 3 Integrated
LIFECYCLE
Product 2 Digital
Lifecycle
4 Shop Floor
Automation 2.22 Advanced
5 Enterprise
AUTOMATION Automation 1.22 Basic
7 Shop Floor
Connectivity 2.11 Interoperable
TECHNOLOGY
9 Facility
Connectivity 1.44 None
10 Shop Floor
Intelligence 1.89 Approaching Visible
11 Enterprise
INTELLIGENCE Intelligence 1.22 Computerised
13 Workforce
Learning & 2.22 Continuous
Development
TALENT
ORGANISATION
READINESS
14 Leadership 2.11 Informed
Competency
15 Inter- and
Intra-Company 2.78 Approaching Coordinating
STRUCTURE Collaboration
AND
MANAGEMENT
16 Strategy & 2 Development
Governance
BAND 0 1 2 3 4 5
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Catalysing The Transformation Of Manufacturing
ACKNOWLEDGEMENTS
The Singapore Economic Development Board would like to thank all the organisations and individuals that have
contributed to the development of this report. Special thanks go to all the contributing organisations for openly
sharing their transformation stories with us. EDB would also like to acknowledge all individuals who have set aside
time to provide their thoughts, insights, and suggestions.
Authors
From the Singapore Economic Developement Board:
1. Lim Kok Kiang, Assistant Managing Director
2. Fong Pin Fen, Director, Strategy Group (Advanced Manufacturing)
3. Ben Ong, Head, Strategy Group (Advanced Manufacturing)
4. Ng Wei Wen, Senior Lead, Strategy Group (Advanced Manufacturing)
5. Ong Shu Fen, Senior Lead, Strategy Group (Advanced Manufacturing)
6. Tey Hui Jie, Lead, Strategy Group (Advanced Manufacturing)
7. Jerome Ong, Lead, Strategy Group (Advanced Manufacturing)
Contributing Organisations
1. Amgen Singapore Manufacturing Pte. Ltd.
2. Biopharmaceutical Manufacturers’ Advisory Committee
3. Chevron Oronite Pte. Ltd.
4. Coherent Singapore Pte. Ltd
5. Infineon Technologies Asia Pacific Pte. Ltd.
6. People Bee Hoon Factory Pte. Ltd.
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SIRI Manufacturing Transformation Insights Report 2019
Catalysing The Transformation Of Manufacturing
Copyright © 2019 Singapore Economic Development Board
All rights reserved.
www.edb.gov.sg