Case presentation - Use of Available Local Materials (VICTO-Bohol)

36
Weaving our way to a brighter tomorrow

description

A short presentation on how the Visayas Cooperative Development Center-Bohol effectively upscaled their loom weaving industry for export.

Transcript of Case presentation - Use of Available Local Materials (VICTO-Bohol)

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Weaving our way to a brighter tomorrow

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Bohol

Tubigon

Tagbilaran

• 54 km from Tagbilaran City• A progressive port town

southeast of Cebu

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• Based in Tubigon townBased in Tubigon town• Predominantly female membershipPredominantly female membership• Organized by DTI-CARP in 1990Organized by DTI-CARP in 1990• Registered with CDA in 1993Registered with CDA in 1993• 85 direct members (81 women, 4 men)85 direct members (81 women, 4 men)• 250 indirect members (220 W, 30 M) 250 indirect members (220 W, 30 M)

• strippers, strippers, knottersknotters, , beadersbeaders, sewers , sewers & raw material (buri fiber) suppliers& raw material (buri fiber) suppliers

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A strong, progressive and sustainable loom weaving cooperative that is globally competitive, managed by active, honest and united members,

officers, and staff providing quality products and improving the quality of

life in the community.

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Improved product quality, highly-Improved product quality, highly-educated and skilled human resource, educated and skilled human resource,

increased productivity and sales, increased productivity and sales, improved access to financing and improved access to financing and

support services, strengthened PO and support services, strengthened PO and maintained cooperation and maintained cooperation and

coordinationcoordination

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•Production of raffia products are done individually: a Production of raffia products are done individually: a weaver can finish ten pieces of placemat in a day and weaver can finish ten pieces of placemat in a day and one roll of fabric (24x10) in 2 days.one roll of fabric (24x10) in 2 days.

• The loom weaving industry in Tubigon The loom weaving industry in Tubigon started in 1989 and has been a significant started in 1989 and has been a significant source of income for many residents of the source of income for many residents of the town. town.

•The products of the industry - placemats, The products of the industry - placemats, raffia rolls, table runners, tea mats - are made raffia rolls, table runners, tea mats - are made from buri strips and warped fiber, which are from buri strips and warped fiber, which are extracted from the leaves of buri palm plants.extracted from the leaves of buri palm plants.

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• Almost all of the loom woven products of the region Almost all of the loom woven products of the region are sold to the export market.are sold to the export market.

• Buri products are bought from weavers by middlemen Buri products are bought from weavers by middlemen who, in turn, sell these to exporters, marketing agents who, in turn, sell these to exporters, marketing agents and buyers; the bulk of orders coming from Manila-and buyers; the bulk of orders coming from Manila-based exporters.based exporters.

• In recent years, more than 80% of total provincial In recent years, more than 80% of total provincial production was exported to the USA, Japan and production was exported to the USA, Japan and Europe.Europe.

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• In 1993, 35 weaver-households In 1993, 35 weaver-households formed the Tubigon Loom Weavers formed the Tubigon Loom Weavers Multi-Purpose Cooperative (TLMPC) Multi-Purpose Cooperative (TLMPC) to coordinate their individual to coordinate their individual weaving efforts. weaving efforts.

•After a few years in operation, the After a few years in operation, the cooperative encountered a serious cooperative encountered a serious cash flow problem. cash flow problem.

•Many weavers and suppliers of Many weavers and suppliers of raw materials who had received raw materials who had received cash advances from the cooperative cash advances from the cooperative failed to repay these advances. failed to repay these advances.

• Despite the crisis, the Despite the crisis, the cooperative continued operations, cooperative continued operations, although at a greatly reduced level, although at a greatly reduced level, at a 25 loom production facility at a 25 loom production facility made of non-permanent materials made of non-permanent materials located in Pinayagan Norte, located in Pinayagan Norte, Tubigon, Bohol.Tubigon, Bohol.

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• 2007, TLMPC received PACAP funding with VICTO 2007, TLMPC received PACAP funding with VICTO serving as the intermediary proponent. serving as the intermediary proponent.

• Objectives: Objectives: • PO development and strengtheningPO development and strengthening• Product development and enhancementProduct development and enhancement• Institutionalize ecological tourism at the Institutionalize ecological tourism at the

municipal level thru multi-stakeholders municipal level thru multi-stakeholders partnershipspartnerships

• Market expansionMarket expansion• Specifically, for:Specifically, for:

a.a. diversification of the product linesdiversification of the product lines b.b. more aggressive marketing and product more aggressive marketing and product

promotions through participation in trade promotions through participation in trade fairs and exhibitsfairs and exhibits

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Before PACAP• Production facility Production facility

– light materialslight materials– inaccessible locationinaccessible location

With PACAP• Production facility and display Production facility and display

center center – ConcreteConcrete

• Located along the highway Located along the highway donated by Tubigon LGUdonated by Tubigon LGU

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• The grant and the new 40 handlooms donated by FUNDACION The grant and the new 40 handlooms donated by FUNDACION SANTIAGO enabled them to diversify into, among others, like: SANTIAGO enabled them to diversify into, among others, like: placemats with various designs, bags, slippers boxes, lanterns placemats with various designs, bags, slippers boxes, lanterns and more…and more…

• Product diversification was a second activity funded by the Product diversification was a second activity funded by the PACAP grant.PACAP grant.

• Before the project came, weavers had been limited to a few Before the project came, weavers had been limited to a few products, such as: plain placemats and raffia rolls.products, such as: plain placemats and raffia rolls.

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• PACAP assistance also enabled the cooperative to conduct a PACAP assistance also enabled the cooperative to conduct a more aggressive marketing strategy to reach out to Manila, more aggressive marketing strategy to reach out to Manila, Cebu and Bohol buyers.Cebu and Bohol buyers.

• This strategy involved the participation of the weavers in This strategy involved the participation of the weavers in regional and national trade fairs to establish contacts with regional and national trade fairs to establish contacts with traders. traders.

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Finally, the PACAP grant enabled the cooperative to streamline its Finally, the PACAP grant enabled the cooperative to streamline its production operations and institute quality assurance measures.production operations and institute quality assurance measures.

Currently, the cooperative has:Currently, the cooperative has:

- - Product quality controllerProduct quality controller (to determine the quality and (to determine the quality and acceptability of finished products)acceptability of finished products) - - PurchaserPurchaser (who is in-charge of the procurement of raw (who is in-charge of the procurement of raw materials) materials) - - Raw material dyer/bleacherRaw material dyer/bleacher (who is responsible for the (who is responsible for the processing of raw materials from buri palm leaf sheath to buri fibers).processing of raw materials from buri palm leaf sheath to buri fibers).

JUANINGJUANING OLETOLET BEBICBEBIC

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VICTOVICTOLGULGU PACAP/FOCASPACAP/FOCAS

BookkeeperBookkeeper CashierCashier

Project Coordinator/Project Coordinator/Marketing OfficerMarketing Officer

PO Enterprise Dev’t OfficerPO Enterprise Dev’t OfficerCommunity OrganizerCommunity Organizer

T L M P CT L M P CGen. AssemblyGen. Assembly

Audit & InventoryAudit & Inventory CommitteeCommittee

CREDITCREDITCommitteeCommittee

Board ofBoard ofDirectorsDirectors

ELECTIONELECTIONCommitteeCommittee

TreasurerTreasurer SecretarySecretary

ManagerManager

BookkeeperBookkeeper CashierCashier

EDUCATIONEDUCATIONCommitteeCommittee

RM Prep. Dyeing & RM Prep. Dyeing & Bleaching Bleaching

Raw MaterialRaw MaterialPurchaserPurchaser

MarketingMarketingOfficerOfficer

Product Quality Product Quality ControllerController

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PO DEVELOPMENT & PO DEVELOPMENT & STRENGTHENINGSTRENGTHENING

- PO trained and able to manage well their enterprise (6 capability building activities conducted)

- - Increased in members from 35-85

- 90% competent staff

- Operations manual implemented

- Manual of operations reviewed and updated

- 59.94% increased in assets from P1,003,946.64 to P2,506,407.72

- 13.50% increased in income of PO from P68,169.15 to P78,831.42

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- -

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PRODUCT DEVELOPMENTPRODUCT DEVELOPMENT & & ENHANCEMENTENHANCEMENT

-- Common Production Center & Handicraft Common Production Center & Handicraft Display Center constructedDisplay Center constructed

- Product diversification (from 5-29)- Product diversification (from 5-29)

- Upgraded skills in response to market - Upgraded skills in response to market trends & demands (from 2 traditional trends & demands (from 2 traditional harness to 4 harness)harness to 4 harness)

- Waste disposal system in-placed (2 septic - Waste disposal system in-placed (2 septic tanks & 3 compost pits installed)tanks & 3 compost pits installed)

- Planted 100 buri trees on site Planted 100 buri trees on site

- 35.69% increased in capital (from 35.69% increased in capital (from P48,975.00 to P78,165.63)P48,975.00 to P78,165.63)

- -

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MARKET MARKET

DEVELOPMENTDEVELOPMENT

- Market expanded (from 10-17)

- 3 billboards installed

- Brochures and flyers developed & circulated

- Participated in 11 trade fairs

- Handicraft display center operationalized

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LGU PARTNERSHIP & LGU PARTNERSHIP & GOVERNANCEGOVERNANCE

- LGU allocated budget from IRA to support - LGU allocated budget from IRA to support the implementation of enterprise the implementation of enterprise development plan (P808,442.50)development plan (P808,442.50)

- Attended a number of product & - Attended a number of product & market development trainings market development trainings organized by Department of Trade and organized by Department of Trade and Industry in BoholIndustry in Bohol

- Acquired new partners: Ayala - Acquired new partners: Ayala Foundation and Fundacion SantiagoFoundation and Fundacion Santiago

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• Sustainable employment and income are the most Sustainable employment and income are the most significant benefits derived from the enterprise. significant benefits derived from the enterprise.

• New skills – such as management skills, bookkeeping, New skills – such as management skills, bookkeeping, policy formation and organizational management, policy formation and organizational management, product & market developmentproduct & market development

• Enhanced self-esteem: as the women weavers put it, Enhanced self-esteem: as the women weavers put it, “they never imagined that they would ever meet elite “they never imagined that they would ever meet elite individuals (e.g., Ms. Bea Zobel, Jr. and Ms. Nice individuals (e.g., Ms. Bea Zobel, Jr. and Ms. Nice Cojuangco) in their lifetimes.” Cojuangco) in their lifetimes.”

• A final impact is the return of some of the weavers A final impact is the return of some of the weavers who had left the cooperative previously because of who had left the cooperative previously because of the financial crisis.the financial crisis.

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2006 2007 2008 Jan. – Apr. 09

Total Assets P1,003,946.64 P1,481,447.50 P2,506,407.72 P2,480,598.85

Total Liabilities 102,583.51 380,450.33 316,124.36 221,546.62

Total Sales 2,673,631.50 2,644,917.99 604,862.25

Total Fixed Deposits

32,500.00 48,975.00 76,165.63 127,807.72

Donations and Grants- Municipal LGU- PACAP- Fund’n Santiago- Ayala Foundation- BM Damalerio- Cong. Chatto- DTI-Bohol

0 995,751.50719,001.50271,750.00

00

5,000.000

2,049,783.20808,442.50992,880.70200,000.00

8,460.005,000.00

30,000.005,000.00

2,049,783.20

Net Income (109,632.16) 68,169.15 78,831.42 19,977.67

No. of Members-Female-Male

350

80 3

81 4

COMPARATIVECOMPARATIVE FINANCIAL DATA

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• Maintenance of machinery and equipment is crucial if Maintenance of machinery and equipment is crucial if production downtimes are to be minimized and deliveries production downtimes are to be minimized and deliveries made on time.made on time.

• The key to customer loyalty is good The key to customer loyalty is good customer service.customer service.

• Accessibility to one’s buyers is critical Accessibility to one’s buyers is critical in marketing.in marketing.

• To ensure on-time deliveries, production must be To ensure on-time deliveries, production must be managed effectively.managed effectively.

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• All workers are paid in piece rate basis.All workers are paid in piece rate basis.

• Transparent reporting is very important in Transparent reporting is very important in building trust and cooperation.building trust and cooperation.

• Profit sharing, even if minimal, builds Profit sharing, even if minimal, builds ownership and stronger commitment to the ownership and stronger commitment to the enterprise among the members.enterprise among the members.

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• CompetitionCompetition

• RecessionRecession

• Quality controlQuality control

• Instilling entrepreneurial skillsInstilling entrepreneurial skills• Updating staff with skills they are not Updating staff with skills they are not

familiar withfamiliar with

• Sustainability of raw materialsSustainability of raw materials

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• MS. DITOS L OBREGAT BALAGUER donated 31 high MS. DITOS L OBREGAT BALAGUER donated 31 high speed sewing machines.speed sewing machines.

• FUNDACION SANTIAGO headed by MR. CHACO MOLINA FUNDACION SANTIAGO headed by MR. CHACO MOLINA expressed desire to continue supporting TLMPC even after expressed desire to continue supporting TLMPC even after the phase-out.the phase-out.

• AYALA FOUNDATION spearheaded by MS. BEATRIZ AYALA FOUNDATION spearheaded by MS. BEATRIZ ZOBEL, JR., decided to let the Project ZOBEL, JR., decided to let the Project Coordinator/Marketing Officer stay for another year to Coordinator/Marketing Officer stay for another year to expand more on diversification specifically when it comes expand more on diversification specifically when it comes to bags.to bags.

• TUBIGON-LGU will provide the lot for the production center TUBIGON-LGU will provide the lot for the production center of the bags.of the bags.

• DTI-Bohol will be responsible in all of the trainings needed.DTI-Bohol will be responsible in all of the trainings needed.

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