ST Engg Annual Report 2002  

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Letter To Shareholders
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In Search Of   Excellence



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Our Human Capital
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Shaping The Future
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Aerospace
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Corporate Governance
  Statement

Report Of Corporate
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Financial Report
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ST Engg’s pursuit of excellence was well rewarded when it received the Singapore Quality Award (SQA) in 2002.

Despite the rigorous assessment, ST Engg attained the SQA on its first attempt as a Group. It is the first public-listed company in Singapore to receive the prestigious award, which has been conferred on only 13 organisations since its inception in 1994.

The SQA is the pinnacle award bestowed upon organisations in Singapore in recognition of their attainment of world-class standards of business excellence. It provides a comprehensive framework for organisations to benchmark their performance and a valuable tool for sustaining their competitive edge. It is widely used by top organisations to measure where they are in the journey to excellence, identify the gaps and take action for improvement.

Administered by SPRING Singapore, the SQA is recognised as one of the premier business excellence awards in the world, on par with the US Malcolm Baldrige National Quality Award, the European Quality Award, the Australian Business Excellence Award and the Japan Quality Award.

SQA applicants are assessed against seven criteria under the SQA framework. These criteria are: Leadership, Planning, Information, People, Processes, Customers and Results. They are reviewed regularly to ensure they reflect leading-edge management practices of world-class organisations.

ST Engg met the stringent requirements of the SQA assessors in all seven areas, in no small part due to the commitment, drive and hard work of its staff.


THE JOURNEY TO EXCELLENCE
Although the journey to attain the SQA was not an easy one, given the size and complexity of ST Engg's operations, the determination, hard work and passion of its people in pursuit of business excellence paid off and the benefits derived from the exercise were many.

For a start, the process created greater awareness among all ST Engg's staff of what business excellence means to the Group. Because of the wide coverage of the application, the business management system of the whole Group was subjected to a comprehensive review, resulting in the identification and analysis of ST Engg's strengths and their formalisation into its systems and processes. New improvement opportunities were identified within the Group, enabling the sharing of best practices amongst the business sectors, its customers, partners and other organisations.

Initially, there were several challenges but these were quickly overcome. The commitment of everyone within the organisation was secured to ensure that they all understood the rationale behind the application for the SQA. In addition, all operating units and departments came to understand the impact of the SQA requirements and participated actively in the process of meeting them.

Another crucial step was the integration of the various approaches adopted at the business sector and Group levels, and their alignment to meet the SQA requirements. While this was difficult, it was achieved in spite of the challenges posed by the diversity and complexity of
ST Engg's operations.

Equally challenging was the updating of SQA reports at all levels on the Group's operations, the effectiveness of its systems and processes and the results achieved. However, once prepared, these documents served an even more important function by enabling "knowledge-sharing" on the operations and directions of the Group.

WORLD-CLASS ORGANISATION IN EVERY WAY
After 600 man-hours of assessment, the decision to raise ST Engg into the premier ranks of SQA winners by the assessors was largely due to the quality of ST Engg's leadership, its ability to exploit new opportunities and introduce innovative products and systems in challenging markets.

The leadership shown by ST Engg senior executives revealed a high level of commitment and focus on building a global organisation that consistently delivers value to its stakeholders. They set clear directions and participated actively in planning, communications and building relations with customers, partners and other groups of stakeholders.

The strategic planning capabilities of the Group enabled it to exploit opportunities, leverage on its strengths and move ahead quickly to meet changing market and customer needs.

ST Engg's emphasis on developing its people into creative, thinking and innovative individuals and team players working to achieve the business objectives was considered a national best. Its investment in training in 2001 far exceeded the national average, with each employee receiving an average of 56 hours of training and a high training utilisation rate of 91 percent.

The culture of teamwork and employee participation within ST Engg was demonstrated by various Total Quality Commitment initiatives such as EVA (Economic Value Added) Projects, Kaizen Teams, Six Sigma, Suggestion Scheme, and Quality Action Teams. All these went a long way to help the Group achieve its organisational objectives and goals.

ST Engg's research and development capabilities and innovation infrastructure comprise an Intellectual Property Rights programme, an advanced engineering centre headed by a Chief Technology Officer, long-term technology roadmaps, a technology fund and an annual R&D budget of up to five percent of sales. ST Engg's continuous investment in innovation, and its ability to creatively adapt and apply technology between defence and commercial products scored high in the SQA assessment.

IN SEARCH OF EXCELLENCE
The attainment of the SQA in 2002 marked a major milestone for ST Engg. While it does not represent the attainment of perfection, it certainly confirms that the Group is on the right track in its ongoing quest towards business excellence.

 

The Journey To Excellence

World-Class Organisation In Every Way

In Search Of Excellence

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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