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Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Empowering entrepreneurs with knowledge
capital and best continuous improvement
practices for profitability, competitiveness,
capacity for trade, exports and investments,
sustainable growth by introducing basic IT
tools for business performance
measurement, management and
benchmarking
Capacity Building Programmes,
Tools and Results
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Serge Golovanov,PhD, Dipl.Eng.,
UNIDO International Consultant
Director, Enterprise Performance Improvement
Centre
GOLEM IMS GMBH, Vienna, Austria in partnership with
United Nations Industrial Development
Organization,
and
International Centre for Science and High
Technology by UNIDO, Trieste, Italy
Centre for Management of Innovation and
Technology, Jakarta, Indonesia
www.win2biz.com www.unido.org
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Definition of Small and Medium-sized Enterprises in EU
Category Number of employees
Middle 50 - 250
Small 10 - 50
Micro < 10
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Business Navigation:
Measuring & Monitoring & Planning of Business Performance Results
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Sailing to target destination
Initial position
Target
(Promised Land)
Ideal path
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Sailing with navigation
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Sailing without navigation
New technologies do not help reaching the target but can make failure impact more costly and severe!
(e.g. new engine, design or construction of the ship do not change the outcome )
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
MICRO AND SMALL ENTERPRISES IN BRAZIL
• Status (informal):
– 10.3 million informal microenterprises (2005)
– 4.9 million formal micro and small enterprises (2002)
• Low competitiveness: only 2.4% of the Brazilian total exports are made by industrial SMEs (2003)
• High mortality:
• 49.4% cease business in two years
• 56.4% in three years
• 59.9% in four years
Sources: IBGE and SEBRAE
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
SME mortality rate after successful start-up is caused by inadequate capacity to manage business and its finances, uncontrollable losses and non- efficiencies unknown to management
?Result: Most of SMEs are running life time experiment
“W i n or D i e” !
Actual data by San Paulo Department of Statistics, Brazil:
5 billion dollars lost and 530 thousands jobs in the medium and low range of manpower are lost within one year in San Paulo State only.
1,000,000 businesses closed between 1990-2002 just in the State of San Paulo worth of 62 billion dollars in invoicing and consequent losses in taxes.
(Source: Newspaper “O Estado de San Paulo”, Economy and Business Section, 4th December 2003)
Similar situation exists in other developing countries lacking of official statistics.
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
1. Mistakes in making business decisions by management based on inadequate assumptions and information, inadequate managerial skills
2. Financial mismanagement and ineffective use of own or borrowed financial resources
These 2 reasons constitute 65% of cases
Major reasons of SME mortality(SEBRAE, BRAZIL)
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Estimations of lost gross profit (GP) due to various inefficiencies, per annum
Enterprise Group 1 (GP € 400,000): 54,900 €
Enterprise Group 2 (GP € 3,000,000): 215,500 €
The price of ignorance (UK case studies, CoVE and MII, food industry):
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Average enterprise improvement results benchmarked after the Programme
implementations reveal average inefficiencies:
• Overall Productivity Increase (or value Added/person) + 9%
• Improved Efficiency + 18%
• Improved Gross Profit + 25%
• Reduction in Labour cost - 15%
• Overall Effective Efficiency increase + 5%
• Acceleration of business development - 6 years
UNDO Integrated Programme for Colombia, 2002-2004, Component II – Quality and Productivity in 4 industrial sectors, 40 enterprises (leather & shoes, electronics, textile, metal processing)
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Common situation in SMEs performance and capacity for innovation management
• Enterprises are not managed with high efficiency, available
resources are not used up to full potential.
• Innovations and globalization impacts cannot be managed
effectively
• There are no simple & inexpensive educational IT tools for
entrepreneurs for measuring / benchmarking of business
results, simulating major decisions and developing
knowledge capital after successful start-up.
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Key issue: Developing basic knowledge capital improving control and transparency of
business and recognizing achievements in capacity for trade, exports, investments
access to markets complying to new credit risk standards.
When major decisions are based non on assumptions, but realities and multiple
uncertainty factors & risks are taken into consideration the chance of strategic failure or miscalculation decreases significantly.
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Continuously improving business based on its measurement
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Components of UNIDO’s Enterprise Business Performance Management Solution
Software SuiteClient Support &
Consulting on-site
Pharos – Business Navigator
Produce Plus
Financial Improvement
Toolkit
Training Course
In country – regional industrial center
Vienna or any
European location
Certification
Enterprise
Professionals
Benchmarking
Software Installation
Data collection & entry,
Biz target setup Reports,
Export-import
Measuring & Improving Business:
Developing best practices
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
1. Awareness seminars,
selecting of enterprises
2. Training courses for SME
management (5 days, < 24
persons per group)
The UNIDO Upgrading Programme Content
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
3. UNIDO Pharos Suite –
introductory software
tools for Business
Performance
Measurement &
Management &
Benchmarking (min 2 licenses per enterprise
for general and production
managers)
The Programme Components: Software
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
4. Training and certification of client’s
support team
5. Transfer of know-how,
methodology to Enterprise
Management, setting best
continuous improvement practices (up to 12 months, 1 consultant support up
to 10 enterprises, installing software, data
collection, business targets, decision
support, results’ measurement, etc).
6. Final results evaluation and
reporting, conference
Programme components: on-site consulting & support
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
UNIDO Performance measurement tools:
Business Benchmarking
Report
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Key performance indicator improvements at a glanceby summary performance graph
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Key BusinessIndicators
time-series
in bench-markin
g modul
e
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
UNIDO Performance Measurement tools: Pharos Business Navigator (main menu)
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
UNIDO Performance Measurement tools: Produce Plus (main menu)
Produce Plus
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
UNIDO Performance Measurement tools: Financial Improvement Toolkit
Produce Plus
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Expected Results
• Improvement of Key Performance Indicators (KPI) ~ 10% - 24% in average, e.g. Gross Profits, Productivity (Added Value per Employee), etc.
• Benchmarking & diagnostics reports for each enterprise
• Documented Upgrading Programme results
• Benchmarking data for evaluation of sectoral performance
• Investment facilitation due to increased transparency of businesses
• Personal UNIDO Certificates for Enterprise Management
• Improved culture in management of business performance and
innovations, sustainability, competitiveness, productivity and quality
• Compliance to BASEL II standard
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
• Average annual sales, USD - $632 000
• Net Profit average % (shoe production factory) - 5%
• Increase of net profits, post programme % - 24%
• Increase of net profits, post programme, USD -
$7,584
Enterprise Model Enterprise Model of Training Programme Efficiencyof Training Programme Efficiency
(net profit only)(net profit only)
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Practical solutions• Capacity building programmes enhancing regional
business support / consulting organisations in country with knowledge, best practices and UNIDO Pharos IT tools
• Certification of entrepreneurs acknowledging achievements in best practices, improving knowledge capital, productivity, quality, competitiveness, capacity
for managing innovations, investments, trade & exports. • UNIDO suite for each female & male start–up
entrepreneur with license fee ~ 150 Euro (complete set of software & reference materials ensuring self-
training, education and best practices).
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Input:< N, 000 EURO per enterprise
Training Programme
with or without on-site support<12 months
1.1. The practical instruments exist and provedThe practical instruments exist and proved2.2. The cost of improvements in business culture, The cost of improvements in business culture,
knowledge capital, competitiveness, productivity knowledge capital, competitiveness, productivity and sustainability is reasonable & unique and sustainability is reasonable & unique compared to any existing options.compared to any existing options.
3.3. The results are measurable and documented.The results are measurable and documented.
Output:Measurable increase of
major indicators including net profits,
productivity, etc.
The total enterprise service package price depends on the Programme duration, national consultants salaries in country, number of participating enterprises and some other
factors
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Implementations: international programs and events
• UNIDO Pharos Training Workshop “Measuring, benchmarking and managing industrial enterprise with UNIDO Pharos Software Suite", ICS-UNIDO, Ministry of Research and Technology (MoRT), Centre for Management of Innovation and Technology (MIT), Jakarta, Indonesia 31 July – 4 August 2006.
• Presentation “Upgrading programmes improving SME capacity to cope with globalization and other challenges by using UNIDO information technology tools, methodology and best practices: sharing the experiences and results” at 3-rd India Global Summit on SMES organized by Confederation of Indian Industry (CII), Ministry of Small Scale Industries (SSI), Government of India, Delhi, November 2005.
• UNIDO Pharos Training Workshop “Measuring, benchmarking and managing industrial enterprise with UNIDO Pharos Software Suite", UNIDO, Vienna, Austria, 5-9 Dec. 2005.
• Presentation “Improving productivity, quality, competitiveness and sustainability of SME’s by applying UNIDO IT solutions for business performance measurement, management and benchmarking” at World Association of Small and Medium -sized Enterprises Convention WASME 2005, Bucharest, Romania, May 2005.
• Meeting & presentations “Applying UNIDO IT solutions for business performance measurement, management and benchmarking to capacity building and upgrading of entrepreneurs” during official state of Dr. Schuessel, PM of Austria visit to China, April 2005 (Peking, Shanghai, Nanjing).
• Presentation “Improving business results by applying UNIDO IT solutions for business performance measurement, management and benchmarking” for Industrial Committee Meeting of the Chamber of Commerce & Industry of Eastern Province, Dammam, Saudi Arabia, April 2005.
• Meetings and presentations “Applying UNIDO IT solutions for business performance measurement, management and benchmarking to capacity building and upgrading of entrepreneurs” during state visit of Dr. Fisher, President of Austria to India, Feb.2005 (Delhi, Hyderabad, Bangalore, Mumbai).
• Small & Medium Enterprises International Conference & Exhibition, Dubai, UAE by INSME and Department of Economic Development – Government of Dubai, Emirates Bank, UAE, 31 Jan. - 2 Feb. 2005.
• Presentation at the Business Symposium "SMEs Competing in a Knowledge Economy", 2 OECD Ministerial Conference, Istanbul, Turkey June 2004. “Recognition of Knowledge Capital in Knowledge Economy”
• UNIDO Programme for Palestine “Improving Business Performance by Introducing Continuous Improvement Practices Based on UNIDO Business Performance Management Software”, August – November 2004.
• UNIDO Upgrading programme “Measurement for continuous improvements in quality, efficiency, productivity, competitiveness” by UNIDO, Association of Lebanese Industrialists (ALI), Euro-Lebanese Center for Industrial Modernization (ELCIM), Lebanon, June – October 2004.
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Implementations
• The UNIDO/IMC workshops "Application of UNIDO benchmarking and business excellence tools for enterprise upgrading, strategic and production management, IMC/UNIDO workshops, Cairo/Alexandria/Borg El Arab, Egypt, February - April 2004.
• 2nd INSME Association Committee Meeting, 25th of February in Malmö, Sweden. • “INSME THINK TANK”, The International Network for Small and Medium Sized Enterprises, Rome, Italy, 11th -12th
December 2003.• Presentation of UNIDO Business Performance Management Products and its application in upgrading programmes at
the UNIDO Conference “Improving Efficiency of Company’s Business through Implementation of TQM/EMS”, Moscow, Russia, 13-14 October 2003.
• The results and experiences of bringing continuous improvement know-how and UNIDO business performance information technology tools to industrial entrepreneurs, presentation at the Forum by UNECE, UNDESA, ILO, UNAIDS, UNICEF, UNDP “Youth of the XXI Century:Realities and Perspectives”, 24-26 September 2003, Kyev, Ukraine
• The UNIDO workshop "Strategic and production management of industrial enterprise: application of UNIDO benchmarking and business excellence tools Pharos + Produce-Plus", UNIDO ITPO/ARCEIT, Jan. 2003 Manama, Bahrain
• UNIDO Integrated Programme for Colombia, Component II, Improving Quality & Productivity in Leather, Electronics, Metal Processing, Textile sectors by applying continuous improvement, workshops and implementations in Bogota, Barrancabermeja, Ibague and Pereira, Colombia, 2002 – 2003.
• Presentation “UNIDO Business Performance management tools for entrepreneurs” at E4PQ: Regional Forum on e-Productivity and Quality by UNIDO, 21-23 Nov. 2001, Warsaw, Poland,
• UNIDO Industrial Upgrading Programme, Pharos Training Workshop, UNIDO, Ministry of Industries and Palestine Federation of Industries, Ramallah, Palestine, July – Oct. 2001
• UNIDO Workshop and upgrade programme “Application of Quality Principles to The Leather Production Sector in Egypt”, April 2001, Cairo, Egypt
• UNIDO Training workshop for national consultants “Application of Quality Principles to The Food Processing Sector of 7 Sub-Sahara African Countries with UNIDO Business Excellence Software”, July 2000 and on-site installations in Kenya, Uganda, Tanzania, Zambia, Ethiopia, and Zimbabwe.
• UNIDO Workshop: Training of Trainers on UNIDO Business Excellence Software July 2000, Kenya, Uganda, Tanzania, Zambia, Ethiopia, and Zimbabwe.
• UNIDO Upgrading Programme “Strengthening of Small and Medium automotive component suppliers to deliver export quality products in India”, Nov. 1999, New Delhi, Pune, Bangalore, Mumbai, Baroda, Nashik, Ahmednagar, India.
• UNIDO Training Workshop “Facilitating Sustainable Industrial Development and Competitiveness by Applying UNIDO Pharos IT tools for entrepreneurs”, Oct. 1999 Siktivkar, Republic of Komi, Russia
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
International customer list
Bahrain
UNIDO ITPO/ARCEIT office, Manama
Bulgaria
BUSINESS CENTER & INCUBATOR ISKAR Ltd., Sofia
HIRON Management Consulting Ltd., Sofia
Colombia
De Williams Servicios, Barrancabermeja
ELECTROTÉCNICOS, Barrancabermeja
IMSOL, Barrancabermeja
INDUSTRIAS PALMIRA, Barrancabermeja
MEC LTD., Barrancabermeja
METALMAQ, Barrancabermeja
METALTEC, Barrancabermeja
METCOL, Barrancabermeja
REYMOM, Barrancabermeja
TALLERES UNIDOS, Barrancabermeja
Boston Shoes, Bogota
CALZADO ATLAS LDTA, Bogota
Curtiembre el Reno ltda, Bogota
Esmeralda Leather, Bogota
Henry Mouse, Bogota
IMACAL De CALZADO Manufacturera, Bogota
Industria de Calzado Soani Ltda., Bogota
Manufacturas en Cuero V & C Ltda, Bogota
Confecciones Caribean S.A, Ibagué
Confecciones Cathy Ltda., Ibagué
Confecciones Mershy Collection, Ibagué
Ibis S.A, Ibagué
Industrias Titanic, IbaguéOutsoursing Industrial, IbaguéPlano y Punto Ltda., IbaguéRoot & Co Kids Ltda, IbaguéServiconfección, IbaguéSheffy Sports, IbaguéBasculas Prometalicos, ManizalesCI Plastigoma S.A., ManizalesConelec S.A, ManizalesSinterizados S.A, ManizalesCable Link de Colombia S.A, PereiraGL Ingenieros Ltda., PereiraIndustrias de Cables y Partes, PereiraMagom Electroinica, PereiraNormarh Ltda, PereiraIntegrando Ltda., Pereira Dosquebradas
ChileUniversidad de La Frontera, Temuco
EgyptCairo Int’l for Leather IndustriesShort Shoe FactoryBaramki Group Cairo Industry For Leather and ChemicalsArto M Co. Ramadan Chehata Sons FactoriesCondor FootwearLeather Technology CenterFLISC, UNIDOMinistry of Industry and TechnologyTCAE2 M Shoes CompanyASI-Egypt
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
International customer list
Wonder Foods productsGlacier Products Ltd.
KuwaitArab Planning Institute, Shuwaikh
IndiaVir Rubber Products, MumbaiStandard Radiators (metal-radiators producer), BarodaZylog Plastalloys Ltd, NasikManikprem Industries, Ahmednagar,Engineering Plastics, PuneACMA Technical Centre, DelhiFederation of Indian Chambers of Commerce & Industry
(FICCI), New DelhiPower & Energy Development Centre, BangaloreUTISTA Management Consulting, Bangalore
LebanonJoseph B. Amatoury s.a.r.lOriental Paper ProductsKfarshimaGeneral Packaging Industries Cortas Canning & Refrigeration Company s.a.l.TANMIA
OPTIMA Systems Ltd.
Siemens Business Services GMBH, Russia
Palestine
UNIDO Integrated Programme for Palestine
Birzeit Pharmaceutical Company
NBC-Cocacola
ASI- Egypt
Pharmacare PLC
Sinokrot Food Co
Al Haya Food Co.
Jerusalem Pharmaceuticals
Nassar Invest. Co
Ministry of National Economy
Gama Pharmaceutical
Flefel Co.
Russia
Center for Executive Education, Siktivkar State University
ENIGMA Training and Constructions, Ltd
Serbia
VING Doo, Novi Sad.
Saudi Arabia
Plastic Production Components
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
International customer list
OPTIMA Systems Ltd.
Siemens Business Services GMBH, Russia
Slovakia
Industrial Management Consulting s.r.o, Bratislava
Melli Interiery, s.r.o., Bratislava
Sri Lanka
University of Kelaniya, Kelaniya
Sudan
Solutions Company Ltd., Khartoum
Thailand
Thai Pharos Software Company Ltd.,
Asian Institute of Technology,
Turkey
USEGO Consulting, Istanbul
Zambia
Eureka Chickens Ltd. (Zambia)
Meatland Ltd, Lusaka (Zambia)
Uganda
Hwan Sung Ltd.,
Ngege Ltd
Uganda Fish Packers
Greenfields Limited
United Kingdom
Centre of Vocational Excellence, The Humber Institute of Food and Fisheries, Grimsby,
Manufacturing Improvement International Ltd., Grimsby, N E Lincolnshire
Hull University MSc Food Standards Science
Disposables UK, Ltd.
Vickers Laboratories Ltd,
Graftons Bakery Ltd.
Yorkshire Farm Bakery Ltd
Riverside Food Services Ltd.
Wensleydale Creamery Ltd.
Smales Fish Merchants Ltd.
Regal Fish Ltd
Kwoks Ltd.
Healthfresh Ltd.
Bleikers Smokehouse Ltd.
Food Design Ltd.
Shepherds Purse Ltd.
University of Wales Institute, Cardiff
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
C o n c l u s i o n s:
1. Most of industrialists do not have sufficient capacity & knowledge for implementing performance management tools and practices to monitor and measure their businesses, optimize decisions, eliminate inefficiencies systematically and maximize use of available resources.
2. The Training and Upgrade Programmes for SMEs introduce best continuous improvement practices and UNIDO IT tools facilitating productivity, competitiveness, quality, sustainable growth in areas where real and tangible improvements can
be made.
3. SMEs become much more transparent and attractive for national and international investments, improve capacity for trade and exports.
4. The Training Programmes facilitate entrepreneurs capacity building in introduction and managing of innovations, new technologies.
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
C o n c l u s i o n s (cont)
5. The Training Programmes complement and facilitate business developments, managerial capacity and potential, including path to ISO 9000, WTO requirements, decreasing SME mortality.
6. The Training Programmes deliver unique content and provide comprehensive package of services at acceptable cost level resulting in important Knowledge Capital Gain.
7. Governmental and international support of the Training Programs is an effective way to boost economic performance and sustainability of industrials sectors in regions.
8. The programme results are measured and documented providing vital economic and industrial statistics to organizers and donors.
Improving Productivity, Quality, Competitiveness, Sustainability and Knowledge Capital with UNIDO PHAROS
Software Suite
Official partner of UNIDO for international distribution, consulting and training for UNIDO Business Performance Measurement, Management and Benchmarking Software
Member of INSME Association
Contacts:
Enterprise Performance Improvement Centre
GOLEM IMS GMBH, Vienna, Austria
Official UNIDO partner in development, distribution and implementation of capacity building programmes
based on UNIDO IT solutions for enterprise performance management, measuring and
benchmarking in developing countries
www.win2biz.com e-mail: [email protected]