Guidelines for Manufacturing Productivity Extension (MPEX) Program Implementation

November 5, 2009

DOST MEMORANDUM CIRCULAR NO. 004-09

 

The Manufacturing Productivity Extension (MPEX) Program assists small and medium enterprises (SMEs) in the manufacturing sector to attain higher productivity through improvements in the overall operation of the firm. The Department of Science and Technology (DOST) through the Technology Application and Promotion Institute (TAPI) field productivity consultancy teams composed of industrial engineers and experts to undertake productivity consultancy services throughout the country.

I. Background:

This guidelines is being re-issued to provide supplemental information and update of the previously issued guidelines on the program.

II. Objectives:

1. Identify strategies to improve productivity of SMEs by strengthening the capability of DOST Regional Offices;

2. Recommend productivity improvement measures for immediate implementation;

3. Develop capability to provide other forms of assistance to the manufacturing sector; and

4. Provide a venue for the entries of other DOST programs and projects particularly technology transfer activities.

III. Sectors Covered:

1. Agro and Food Processing

2. Furniture

3. Gifts & Holiday Decors (GHD) cEaDTA

4. Information Technology

5. Materials Science

6. Metals and Engineering

7. Micro-Electronics

IV. Productivity Improvement Concerns:

1. Capacity Utilization

2. Wastage Levels

3. Product Design and Packaging

4. Layout

5. Production Planning and Control

6. Materials Management System

7. Quality Control Assurance System

8. Safety and Housekeeping Practices/Facilities

9. Financial Systems and Control

10. Human Resource Utilization

11. Work Organization

12. Manufacturing System

13. Processes and Operations

14. Machine & Equipment Utilization

15. Plant Maintenance

16. Cleaner Production Technologies

17. Energy Audit ITCHSa

18. Food Safety

V. Project Components and Implementation Strategies:

1. Creation and Accreditation of a Pool of Consultants and Experts:

A pool of MPEX consultants/experts will be created in the region. The consultants/experts will provide productivity consultancy services to the project beneficiaries. SUCs in the region and the private professional groups shall be tapped as consultants. The regional consultants are expected to gradually replace Manila based consultants.

2. Project Beneficiaries:

The beneficiaries are SMEs in the manufacturing sector in the Region. They should be legally registered with at least P500,000 capitalization or with a minimum of ten (10) workers. Preferably, the companies should have established export market or regular sub-contractors to exporters. Each company should be willing to consider and are capable of implementing the recommendations suggested by the MPEX consultants.

3. Nature of the Consultancy Service:

The consultants will initially conduct a productivity audit to the selected companies to diagnose the firm. Based on the given information and on the records shown, the team will look on all areas of the business' operation (i.e., financial, management, marketing and production aspects). But the focus of the consultancy services to be provided will be on productivity improvement of the firm's manufacturing operations. As such, some of the major areas for consideration are the following: manufacturing process, plant and equipment design, product planning and control system, materials management system, quality control and assurance system, safety and housekeeping practices, financial control system, human resource, support services utilization and others.

4. Project Management:

TAPI shall provide financial assistance to the Regional Offices. The regional project coordinator will handle the over all implementation of the project at the regional level. The said coordinator, however, will be working closely with the Provincial Science and Technology Directors (PSTDs) in the region to implement the program at the provincial level. The PSTD's will assist the project coordinator in the various technical and administrative requirements of project implementation. aHTEIA

5. Mechanics of Implementation:

Potential MPEX beneficiaries are identified/endorsed by the PSTDs, DTI Provincial Offices and recognized related organizations in the region for pre-qualification and matching with consultants. DOST Regional Office and the consultants will undertake the pre-qualification of the beneficiaries and identify the final firms to be covered by the project. An inception report will then be submitted by the consultants to DOST Regional Office documenting the initial assessment, analysis, evaluation and recommendations made. The consultants will then render the actual consultancy service on prioritized intervention areas. The consultants will assist the beneficiary firm during the installation of the recommendations made. It is ideal that technology requirements of the firm are also identified during the process and sufficiently addressed at this time.

After this, a validation of the findings and recommendations will be conducted with the main objective of determining the impact of the consultancy service to the firm's productivity level. A report will be given to the firm beneficiary and another copy will be submitted to the Regional Office for their file and liquidation purposes. The said report will likewise include the firms' reaction to the consultants' study and recommendations.

6. Project Implementing Schedule:

1. Submission of proposals

2. Identification/Pre-qualification of firms

3. Actual consultancy services

4. Submission of a firm-level progress, final reports, industry report and terminal report of the project

5. Liquidation of funds

6. Program review (Mid-year and Year-end)

VI. Effectivity:

This circular shall supersede the previously issued guidelines and shall take effect immediately. ACcTDS

Taguig City, Philippines, October _____, 2009.

 

(SGD.) ESTRELLA F. ALABASTROSecretary

ANNEX A

Criteria for MPEX Assistance

1.	Name of Company	Pls. Specify:
	____________________________	_____ Direct exporter
	____________________________	_____ Sub-Contractor
	Office address _____________________________________________________
	Telephone Number/s: ____________________ Fax No. ____________________
	Factory Address ___________________________________________________
	__________________________________________________________
	Contact Person/s: __________________________
	Designation _______________________________
2.	Product Lines/Services: _____________________________________________
3.	Manpower Complement:
	No. of Regular Employees: _________ No. of Contractual/Casuals _________
	Sub-contractual/s (pls. include no. of personnel) ________________________
4.	Company Background:
	Date Established ____________________________
	Type of Business ____________________________
	Annual Volume of Prod'n _____________________
	Estimated Value of Business P _________________
	Annual Gross Sales P ________________________
5.	Market	Foreign ___________ Local __________________
6.	Technical Assistance Needed: _____________________
__________________________________________________________
7.	Technical Problems Identified:
__________________________________________________________
8.	Management Targets: ____________________________
__________________________________________________________

 

ANNEX B

Technology Application and Promotion Institute (TAPI)

MANUFACTURING PRODUCTIVITY EXTENSION (MPEX) PROGRAM

Consultant's Biodata

Name	:__________________________________________________
	(Last Name)		(Given Name)      (Middle Name)
Agency	:__________________________________________________
Position	:__________________________________________________
Date of Birth	:__________________________________________________
Address	:	Office: _________________________________________
			Mun./City: ___________________________________
			Province: ____________________________________
			Zip Code: ____________________________________
		Telephone Number: ______________________________
		Fax No.: _______________________________________
		Residence:
			Street: _______________________________________
			Mun./City: ___________________________________
			Province: ____________________________________
			Zip Code: ____________________________________
	Telephone Number: __________________________________
	Fax Number: _______________________________________
Highest Educational Attainment: _________________________________________
School: _____________________________________________________________
Degree/s Earned: ______________________________________________________
Field/s of Specialization/Expertise: _______________________________________
____________________________________________________________________
____________________________________________________________________

 

_____________________

(Signature)

C2: MPEX Consultant's Biodata

ANNEX C

Format of Reports

Inception Report (Firm-Level)

I. Company Profile

a. Name of Firm

b. Contact Person/Position

c. Mailing address/Tel./Fax no.

d. Product Line

II. Possible areas of Intervention

III. Current Productivity Status

IV. Gantt Chart of Activities

V. Pictures Before MPEX Intervention

Progress Report (Firm-Level)

I. Historical Background

II. Company Profile

III. Introduction

a. Objectives of the Project

b. Methodology

c. Result of Business Diagnosis

 (e.g., Personnel, Administrative and Training, Marketing, etc.)

i. Areas where the client is strong at

ii. Weaknesses

d. Result of Shopfloor Observation (e.g., Production Lay-out, Production System, Materials Management, etc.)

i. Areas where the client is strong at

ii. Weaknesses

IV. Possible Areas of Intervention

Areas Where
Improvement is Needed	Recommendations	Remarks
1. Administrative	Short-Term	Long-Term
a. __________________	_______________	________________	______________
b. __________________	_______________	________________	______________
others ______________	_______________	________________	______________
2. Production System
a. __________________	_______________	________________	______________
b. __________________	_______________	________________	______________
others ______________	_______________	________________	______________
3. Production Lay-out
a. __________________	_______________	________________	______________
b. __________________	_______________	________________	______________
others ______________	_______________	________________	______________
4. Materials Management
a. __________________	_______________	________________	______________
b. __________________	_______________	________________	______________
others ______________	_______________	________________	______________
5. Others
a. __________________	_______________	________________	______________
b. __________________	_______________	________________	______________
others ______________	_______________	________________	______________
Validated by:		Conforme:
___________________________	_________________________
TAPI & DOST - Representative	(Name of Owner/Beneficiary)

 

Final Report (Firm Level)

I. Historical Background

II. Company Profile

III. Introduction

a. Rationale

b. Objectives of the Project

c. Coverage of the Project

d. Cooperating Agencies

e. Background of Productivity Consultancy team

f. General Productivity approach

g. Methodology

IV. Documentation of Existing System

a. Production Management

b. Marketing Management

c. Human Resource Management

d. Financial Management

e. Others

V. Findings and Analysis

a. Identification of Issues and Concerns

i. Administrative

ii. Production System

iii. Production Layout

iv. Others

VI. Recommendations

a. Administrative

b. Production System

c. Production Layout

d. Others

VII. Intervention and Implementation Strategies

VIII. Impact of Intervention

a. Quantifiable Results of Intervention

b. Photos

Validated by:	Conforme:
___________________________	_________________________
TAPI & DOST - Representative	(Name of Owner/Beneficiary)

 

ANNEX D

Technology Application and Promotion Institute (TAPI)

MANUFACTURING PRODUCTIVITY EXTENSION (MPEX) PROGRAM

Consultancy Evaluation Form

Consultant/s: (Last Name, Given Name, Middle Name)

 1. _____________________________________________________________

 2. _____________________________________________________________

Major Intervention/s Conducted:

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

Please rate performance of the consultant/s on the following:

1. Knowledge of the subject matter.

_________ Excellent

_________ Very Good

_________ Good

_________ Poor

2. Approachability and ability to effectively relate to you and your firm workers.

_________ Excellent

_________ Very Good

_________ Good

_________ Poor

3. Were your expectations from the assistance met?

_________ Completely met

_________ Partially met

_________ Not met at all

4. How would you rate the relevance of the assistance provided to your firm future activities?

_________ Relevant

_________ Relevant to some extent

_________ Not relevant

Please explain:

____________________________________________________________________

____________________________________________________________________

5. Benefits gained from the assistance:

____________________________________________________________________

____________________________________________________________________

_________________________________________.

6. If you have the resources would you hire the present expert/s to be your firm's full-time consultant/s?

_________ Yes

_________ No

If No, why not? _______________________________________________________

____________________________________________________________________

____________________________________________________________________

7. Recommendations:

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

8. Comments/suggestions to improve future MPEX assistance:

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

Rated by:

_________________________