Guidelines for Manufacturing Productivity Extension (MPEX) Program Implementation
The DOST Memorandum Circular No. 004-09 establishes guidelines for the Manufacturing Productivity Extension (MPEX) Program aimed at enhancing productivity among small and medium enterprises (SMEs) in the manufacturing sector in the Philippines. The program provides consultancy services through a team of experts from the Department of Science and Technology (DOST) to identify and implement strategies for improving various operational aspects, such as production planning and quality control. It covers several sectors, including agro and food processing, furniture, and information technology, with a focus on firms that are legally registered and meet specific capitalization and workforce criteria. The initiative also emphasizes the creation of regional consultant pools and the establishment of a structured project management system to ensure effective implementation and assessment of productivity improvements.
Law Information
- Reference Number
- DOST Memorandum Circular No. 004-09
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Department of Science and Technology
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
November 5, 2009
DOST MEMORANDUM CIRCULAR NO. 004-09
| SUBJECT | : | Guidelines for Manufacturing Productivity Extension (MPEX) Program Implementation |
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:
_________________________
Cite This Law
Guidelines for Manufacturing Productivity Extension (MPEX) Program Implementation, DOST Memorandum Circular No. 004-09, Nov 5, 2009 (Philippines)
Guidelines for Manufacturing Productivity Extension (MPEX) Program Implementation, DOST Memorandum Circular No. 004-09 (Phil. 2009)
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