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McDonald's taps on productivity fund to upsize profits
By Dylan Loh | Posted: 25 March 2011 2000 hrs
SINGAPORE: McDonald's Singapore is using technology to upsize profits, by tapping on the productivity fund - a S$16 million pool from the Inclusive Growth Programme.
The S$40 million Inclusive Growth Programme was launched in August last year to support firms in rolling out productivity improvement projects and to share the gains with workers.
As of end-February, 240 projects have been approved.
Nearly 19,000 are expected to benefit from the projects approved so far, with most of the projects from small and medium enterprises.
The productivity fund can cover up to half of the costs needed to roll out productivity initiatives.
In McDonald's productivity initiative, it has implemented a new cashless system in stores that reduces payment time by a third, as well as an automatic dispenser that reduces the time taken to load french fry baskets by more than half.
"It's a fast food business so it's very evident to me that they try to process, whether it is backroom, front-end, to be as fast as possible, because faster means more customers they can serve, means more business," said Mr Ong Ye Kung, chairman of the Employment and Employability Institute.
The increased profits from better productivity is going to benefit McDonald's workers as well.
"We are going to increase their wages on average, for full-time crew working with us, from S$900 a month to S$1,100 a month," said Mr Tan Kwang Cheak, senior director for McDonald's Singapore.
Wage increments are slated to kick in from April, affecting over 6,000 staff.
The firm is also investing in training to allow its crew to be equipped with multiple skills that will aid in career progression for the staff.
- CNA/ac/cc
By Dylan Loh | Posted: 25 March 2011 2000 hrs
SINGAPORE: McDonald's Singapore is using technology to upsize profits, by tapping on the productivity fund - a S$16 million pool from the Inclusive Growth Programme.
The S$40 million Inclusive Growth Programme was launched in August last year to support firms in rolling out productivity improvement projects and to share the gains with workers.
As of end-February, 240 projects have been approved.
Nearly 19,000 are expected to benefit from the projects approved so far, with most of the projects from small and medium enterprises.
The productivity fund can cover up to half of the costs needed to roll out productivity initiatives.
In McDonald's productivity initiative, it has implemented a new cashless system in stores that reduces payment time by a third, as well as an automatic dispenser that reduces the time taken to load french fry baskets by more than half.
"It's a fast food business so it's very evident to me that they try to process, whether it is backroom, front-end, to be as fast as possible, because faster means more customers they can serve, means more business," said Mr Ong Ye Kung, chairman of the Employment and Employability Institute.
The increased profits from better productivity is going to benefit McDonald's workers as well.
"We are going to increase their wages on average, for full-time crew working with us, from S$900 a month to S$1,100 a month," said Mr Tan Kwang Cheak, senior director for McDonald's Singapore.
Wage increments are slated to kick in from April, affecting over 6,000 staff.
The firm is also investing in training to allow its crew to be equipped with multiple skills that will aid in career progression for the staff.
- CNA/ac/cc
