INTRODUCING CONTINUOUS IMPROVEMENT MANAGEMENT IN SMALL …

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INTRODUCING CONTINUOUS IMPROVEMENT MANAGEMENT IN SMALL AND MEDIUM ENTERPRISES IMPLEMENTATION GUIDE

Transcript of INTRODUCING CONTINUOUS IMPROVEMENT MANAGEMENT IN SMALL …

INTRODUCING CONTINUOUS IMPROVEMENT MANAGEMENT IN

SMALL AND MEDIUM ENTERPRISES

IMPLEMENTATION GUIDE

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CONTENTS

Introduction....................................................................................................................2

Institutional Letter..........................................................................................................3

Process Toward Change.................................................................................................6

Background and Methodology.......................................................................................8

Technical Practical Summary ......................................................................................14

The integral Process within the Enterprise...................................................................18

Detailed Description of the Individual Elements.........................................................24

Control and Evaluation................................................................................................ 34

Experiences in Ecuadorian Enterprises.......................................................................36

List of All Participating Enterprises ............................................................................37

Editorial This paper is based on a Manual prepared by Swisscontact Ecuador to document a successful project started in 1996. It does not pretend to allow the transfer of the whole methodology described, but is rather intended to allow project managers to make the necessary decision to start a respective program and to support proposals to funding agencies. Further information on the methodology and experiences can be obtained from Ivan Idrovo and/or Florian Meister of Swisscontact Ecuador. We thank them for their valuable ground work, to Daniela Walla for her great effort in editing this paper and to Heinz Bachmann for his proof-reading and the pictures. Zurich, May 2003 Markus Kupper

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INTRODUCTION

This manual is the result of longstanding experiences of SWISSCONTACT different counterparts and several associate consultants of introducing processes for improve-ment of quality and productivity in more than 70 Ecuadorian small and medium sized enterprises. In participating in the program, these enterprises have been able not only to overcome barriers, improve their processes and increase the major economic and management indicators but have also laid the ideal foundation for their success toward local and international competitiveness through their linkage and participation in new sequential standardization and regulatory programs such as the ISO 9001:2000 standards; Good Manufacturing Practices or GMP; Critical Points Control or HACCP; Clean Production; ISO 14000; SA 8000, among the most important practices. These and other standards are increasingly being demanded not only by control agencies but also by the globalized market which is marking the difference at the time of negotiating by giving preference to those businesses capable of demonstrating a high degree of compliance as a means to guarantee efficiency, quality and liability toward the most important actor of the market: THE CUSTOMER.

The implementation of a Continuous Improvement Management in an enterprise must necessarily start at the senior management level. The success of the process mainly depends on the involvement and commitment of the management whose strategy will later be based on identifying, training, and consolidating the human resources at dif-ferent levels. However, it is important to clarify that this manual is an executive summary based on field experiences and the reality of Ecuador. It should therefore be adapted to the context and reality of each country, region or city where it is to be im-plemented while considering the distinct characteristics, problems, situations, objec-tives and resources of each enterprise.

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INSTITUTIONAL PROFILE

Swiss Foundation for Technical Cooperation

SWISSCONTACT, the Swiss Foundation for Technical Co-operation, with its head office in Döltschiweg 39, Zurich, Switzerland, is a non-profit organisation engaged in development co-operation. It was established in 1959 as a non-political and non-denominational foundation by personalities of the Swiss private business sector and the universities.

SWISSCONTACT is currently implementing projects in 30 countries in Asia, Africa, Latin America and Eastern Europe. The Senior Expert Corps (SEC) carries out an av-erage of 140 short-term consulting missions per year by retired professionals.

Funds of SWISSCONTACT derived originally exclusively from the Swiss private sector. This is still the major source of the annually collected donations. Since many years Swisscontact is one of the four big implementation agencies of the Swiss Agency for Development and Co-operation (SDC). Total turnover in 2001 reached the amount of CHF 34 Mio with SDC being the main client. Other customers are interna-tional agencies such as the Worldbank, ADB, IADB, USAID and UNEP.

SWISSCONTACT promotes economic development in partner countries with the aim of improving the population’s living conditions in a direct or indirect way. In co-operation with local partners in the public or private sector, SWISSCONTACT exe-cutes programs and projects that aim to „help people to help themselves“. Fields of activity include: • vocational training, including instructors training; • small and medium enterprise promotion; • reduction of urban environmental pollution; • financial services for small and medium enterprises.

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SWISSCONTACT promotes equal opportunities for women across its working areas; complies with environmental requirements; places emphasis on personal development of participants and fosters the sustainability of projects so that beneficiaries may ac-quire self-help capacity and financing, all within the framework of democratic and market principles.

Swisscontact in Ecuador

SWISSCONTACT has been working in Ecuador since 1987 under an agreement of non-refundable technical and economic cooperation to support the small and medium-sized enterprises (SMEs). A business approach has been used to procure and transfer methodologies and instruments that will help to improve economic, technical and managerial conditions of the beneficiaries. At present, SWISSCONTACT is imple-menting the following projects and programs aimed at creating opportunities for de-velopment, growth, and poverty reduction:

• Business Development Services: this program supports the establishment of Business Development Centers which are autonomous and self-financed units through the supply and selling of specialized non-financial business services to customers in general but with a major incidence in small and medium-sized enterprises.

• Continuous improvement of Quality and Productivity: this project gives enter-prises the opportunity to implement a continuous quality and productivity im-provement system. At the same time it fosters the advancement of executives and employees, resulting in a higher level of competitiveness in local, regional, and in-ternational markets.

• Financial Services: inadequate training and development of financial institutions pose the major challenges for small and medium-sized enterprises when seeking access to financial services. As a result, the support of SWISSCONTACT focuses on institutional strengthening of such financial institutions in the area of loans as well as in the provision of savings services.

• Co-operative professional education: aware of the crucial role, that professional development of technical human resources plays in the development of the coun-try, this program supports the creation of professional training schools at the initiative of business groups or associations. This approach aims at motivating the beneficiary productive sector for a maximum involvement.

• Reduction of Industrial Emissions: this program focuses on reducing industrial environmental pollution and on adequate disposal of sludges produced by treat-

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ment plants of manufacturing industries. It also aims at improving services of en-vironmental laboratories and to promote the standardization of environmental au-dits so as to ensure compliance with the standards currently in force.

• Senior Expert Corps (SEC): Volunteers of the Senior Expert Corps are retired pro-fessionals with ample experience in various fields that can be called in to assist businesses of all sectors.

The objective of providing cooperation to the country is accomplished by increasing the income and employment levels, which results in a higher level of competitiveness of small and medium-sized enterprises as we bring to reality our institutional motto:

WE CREATE OPPORTUNITIES

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PROCESS TOWARD CHANGE

Latin American Countries as a whole are facing structural problems that in turn cause high percentages of unemployment and sub-unemployment. Due to its high capacity to create employment and revenues, the small and medium-sized businesses (SME’s) constitute one of the main pillars of development within the subcontinent. At the same time the actual tendencies of international markets tend to bind all productive sectors to develop strategies that will allow them to be more competitive in a globaliz-ing economy.

With this in mind, Swisscontact Ecuador, together with local consultants since 1996 have developed and introduced a methodology called PMCCP (Programa para el Me-joramiento Continuo de la Calidad y Productividad) or CIM (Continuous Improve-ment Management) which introduces via a coaching process of 18 months elements of quality monitoring and assurance according to ISO standards in SMEs. Up to now, 71 SMEs have participated successfully in a total of four projects, co-financing more than 50% of the whole program costs. A considerable number of them decided to continue the process to a certification on their own account. The program has found appraisal and co-financing by ALADI (Asociación Latinamericana de Integración) and CAF (Corporación Andina de Fomento) and was already favorably evaluated by the World Bank for a program extension in Ecuador. At present it is implemented by Swisscon-tact in El Salvador in up to 40 enterprises in a program co-financed by the SME-Department of the World Bank Group and Swiss Agency for Development and Coop-eration. The methodology is ready to be introduced into other countries, where there is a pressure for quality assurance e.g. due to the high export orientation.

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The four projects implemented by SWISSCONTACT involved local counterparts such as the Business Development Centers: CORSEDE-Portoviejo, CORFOPYM-Ambato, COALDES-Cuenca, USE-Ibarra and the institution FEDEXPOR-Manta and the ADES-Guayaquil Foundation, which effectively performed the functions of coor-dinators of implementation, monitoring, and joint evaluation of the aforementioned processes. For the third project, SWISSCONTACT conducted a bidding and selection of consulting firms which resulted in the final accreditation of HOLOS-TQM-Consultores (3 processes) and Barrazueta & Asociados (1 process) plus the training and specialization of local consultants, who currently implement independent programs in the business services market.

The methodology enables companies to diagnose structural and managerial strengths and weaknesses of the product and service sector to later implement a system of as-surance and continuous improvement of quality and productivity at all levels, includ-ing executives and employees. The process results in an operation under international business standards with increased levels of income and competitiveness opportunities in the local, regional and international markets.

The challenge faced at the onset and particularly during the economically difficult years of 1999 and 2000 was to be able to find the companies and executives that would have a vision for development and the motivation for improvement and who would want and/or could invest in programs of this nature, given that the process took between 12 and 18 months of continuous and demanding work. Through the final evaluations and the presentations made by the different improvement groups of the various participating companies, SWISSCONTACT has been able to asses the suc-cess and the positive scope of the results. The highly satisfactory increments of the main indicators achieved have consolidated the companies as leaders in their fields. These results have motivated SWISSCONTACT once again to further promote and disseminate our methodology through this manual and it is our hope that it will be of benefit to all readers.

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BACKGROUND AND METHODOLOGY

Background

On June 24, 1980, NBC-TV of the United States aired a documentary entitled “If Ja-pan can do it…why can’t we?” The documentary showed how Japan had been able to rise from the ashes of the Second World War in only 30 years to become an economic power with products of a higher quality than those of the United States and other in-dustrialized nations, which gained an increasing demand as they were more functional and were offered at lower prices.

In that same year, the United States imported merchandise from Japan at a value of 30,700 million dollars, mainly articles of complex manufacturing such as automobiles, electronic equipment and steel products. At the same time, products for 20,800 million dollars were exported to Japan mainly in raw materials such as wood, cereals, soy, coal, non-ferrous metals and scrap.

Notwithstanding the disparity, U.S. entrepreneurs underestimated Japanese growth which, in their view, was an coincidence, a whim or simply part of the oriental cul-ture. It was said that the Japanese situation was due to underpaid workers whose ser-vile loyalty to enterprises was reflected in their consent to wear uniforms, do gymnas-tic exercises and sing the enterprises’ anthems, all this tied to their suicidal working speed. The Japanese were also accused of dumping and people complained that the Japanese did not invent anything as they limited themselves to imitating American products.

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However, NBC carried out a deeper investigation and presented in the last section of the program an American statistician of seventy-nine years of age, W. Edwards Dem-ming, who had taught the Japanese the system of quality management and engineer-ing. He showed the Japanese how to identify the variations or fluctuations which en-abled them to detect and eliminate flaws as a way to reduce costs while increasing productivity. These methods were known as Statistical Quality Control or Statistical Process Control, which were not unknown to the United States. Quality belonged to inspectors only, whose work consisted in separating the good from the bad. However, Demming’s thinking went beyond that.

With the passage of time, Demming’s name became a synonym of quality, due in part to the Demming award created by the Association of Japanese Scientists and Engi-neers with the earnings that Demming donated and which originated from his publica-tions. The award, which has been granted to many important enterprises since then, is the highest quality award in Japan.

Dr. Demming himself followed his own advice of seeking “CONTINUOUS IMPROVEMENT”. He frequently said: “Can I myself not learn too?”

“It is necessary to transform the government, the industry and education. Management is in a stable state but a transformation is required to over-come the current state. The required transformation will be a change of state, a metamorphosis. It’s not about doing some mending to the current management system. Of course we have to solve problems and put out fires as they occur, but those activities do not modify the system itself”.

W. Edwards Demming

The following chapter describes how Dr. Demming’s method has evolved in practice in small and medium-sized Latin American enterprises. In other words, how “CONTINUOUS IMPROVEMENT MANAGEMENT” has been implemented in various companies.

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Continuous Improvement Management (CIM)

Precondition: Management Training in Quality Issues

The first obstacle in implementing the CIM lies in the lack of conviction of the senior management with respect to the expected results at the end of these processes, which makes it impossible to implement these systems in organizations where the manage-ment is not involved in the process. It is not possible to work at any level of the or-ganization if there is no support from the management.

Another major obstacle is the interpretation that each person has of different concepts such as quality, efficiency, effectiveness, processes, products, etc. Therefore, as Philip Crosby claims, “the obstacle to improve quality lies not so much in what people don’t know but in what they believe to know about quality”.

To this end, a seminar on “Managing Continuous Improvement” has been designed and aimed initially at management and staff, and through them, it is disseminated to all the personnel of the entire enterprise so that everyone, from the security officer to the executives of the highest level, “will speak the same language”.

Organizational Assessment

Transforming the current organizational state will only be possible if it is well known. To this end, before starting any process of change in any enterprise, it is necessary to make an organizational assessment; that is, an evaluation of the state of the different functional areas of the enterprise.

This assessment can be conducted using a methodology developed by experienced professionals and that has yielded excellent results in practice and evaluates areas such as management (definition of mission, vision, values, organization principles), finance, human resources, acquisitions, maintenance, quality, sales and marketing, security and industrial hygiene, research and development, among others.

Parallel to the organizational assessment, there is an assessment of the working envi-ronment that seeks to determine the feelings of the work force. This analysis is very important if we bear in mind that there are also customers within the same enterprise. Therefore, in order to satisfy the external customer, it is necessary to ensure that the internal customer is satisfied first. The conclusions and recommendations generated in this Process are essential to initiating a strategic planning process.

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Development of the Strategic Plan of the Enterprise

Once the organizational assessment is completed and the main conclusions and rec-ommendations have been defined, the strategic planning is made with the purpose of defining the vision, mission, values and principles of the enterprise. This process in-volves representatives of all levels of the enterprise and determines the key success factors which serve as the basis to define the enterprise’s strategic objectives in the short, medium and long-term. An action plan resulting from the objectives is imple-mented in accordance with the general guidelines.

Although the top management is to lead this process, the entire work force will also be responsible for implementing it and contributing to the achievement of the objectives.

Training in Problem-Solving Tools and Methodology

The next step of CIM is to train the facilitators in charge of advancing this process within the enterprise. The objective is to understand and apply the tools and method-ology that will enable systematic problem solving. Some of the most widely used tools in these processes are the Pareto Diagram, the Ishikawa Diagram, Control Graphs, the Characterization Diagram, Tree Diagrams, and the Gannt Diagram.

As to the scientific methodology to be used for problem-solving, the market offers several methodologies, some of which consist of twenty steps, others of five, and oth-ers of seven steps such as the Quality Route as scientific method or the QC Story for achieving tasks.

Based on our experience, we recommend the Quality Route as scientific method, for it has proven to yield the best results in enterprises in Bolivia, Peru, Venezuela and Ec-uador. Once the basic tools for CIM have been understood, and the methodology to be used has been chosen, the internal facilitators are responsible for disseminating the information across the enterprise to ensure full understanding.

Definition of the Quality Structure

It is now time to define the Quality Structure by determining which bodies will direct the implementation of the processes in the enterprises. To this end, quality commit-tees are created according to the size and structure of the enterprise. In addition, the working groups that will participate in the implementation are then created. In other words, the enterprise must create as many functional and inter-functional groups as necessary depending on the problems that are to be solved. Leaders and facilitators will be identified for each of the working groups.

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Having defined this structure, the enterprise begins to apply the selected methodology with the support of the various tools following a pre-established schedule, the first stage of which will place particular emphasis on learning how to implement the sys-tem in a practical manner. The working time for each project developed by the im-provement groups will be then progressively reduced as appropriate.

The consolidation of these processes is achieved after five years of continuous appli-cation.

Therefore, the role of the internal facilitators is essential as they will be responsible for the future maintenance of the quality system that has been implemented. In some cases, enterprises continue to work with external consultants until the entire process is consolidated.

As part of the implementation of these processes, it is important to consider some of the following quality management principles which are essential to achieve the objec-tives: • Focus on customer: The enterprises depend on their customers and must therefore

understand their current and future needs and make the required efforts to exceed their expectations.

• Leadership: The leaders establish unity of purpose and orientation of the enterprise. They should create and maintain an internal atmosphere conducive to fully involve all the employees in the pursuit of the objectives of the enterprise.

• Employees’ participation: The personnel at all levels is the essence of any organi-zation and its total commitment and participation makes it possible to utilize its abilities to the benefit of the enterprise.

• Process-based approach: A desired result is achieved most effectively when the related activities and resources are managed as part of an overall process.

• Management system approach: This approach consists in identifying, understand-ing and managing the interrelated processes as a whole system and contributes to increasing the efficiency and effectiveness of an organization in the achievement of its objectives.

• Continuous improvement: The continuous improvement of the overall performance of the enterprise should be a permanent objective.

• Fact and data based approach for decision-making: Effective decisions are based on the analysis of data and information of the enterprise.

• Mutually beneficial relations with suppliers: Enterprises and their suppliers are in-dependent and a mutually beneficial relation increases the capacity of both parties to create value.

The above principles are contained in the new version of the ISO 9001:2000 Standard.

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Once the methodology has been implemented, a report of the results obtained thus far is made available to all the personnel of the enterprise. The groups that have contrib-uted the greater benefits to the enterprise must be acknowledged.

Other Management Tools

The following tools are furnished at all levels as part of the process: • Human Talent Management: This tool analyzes the new approaches of human re-

source management and new techniques to optimize the talent of the labour force. • Service and Customer Satisfaction Assessment Management: This tool analyzes the

main issues to be considered in customer satisfaction, their importance for the en-terprise, and provides a methodology to measure customer satisfaction.

• Poor Quality Costs: This tool underlines the importance of conducting activities effectively from the onset and describes the main costs incurred by the enterprise and ways to reduce them.

• Marketing Management: New market segmentation tools are used to identify cus-tomer needs and turn them into requirements that the enterprise must comply with.

Management Indicators

It is important for an enterprise to define a set of indicators that will measure its per-formance. Some tools such as the Balanced Scorecard can be used to this end, which is currently widely applied. Another way to define management indicators is to use the Malcom Baldrige National Quality Award as a basis for that purpose.

TECHNICAL PRACTICAL SUMMARY

Process within the Enterprise

The implementation of Managing Continuous Improvement has two objectives:

A To introduce management tools that will enable the improvement of organiza-tional or other abilities in one or various functional areas of the enterprise.

B To introduce quality management elements under the ISO 9001:2000 Standard (permanent monitoring and documentation).

Mt

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The Integral Proces

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ethodology: This program is conducted under the concept of “learning by doing” hrough the involvement and development of the capacity of all the personnel.

Integral Process (12 months)

Implementation(10 months)

Assessment(2 months)

Training (12 months)

Integral Process (12 months)

Implementation(10 months)

Assessment(2 months)

Training (12 months)

R

A

Assessment – Strategic Planning: 2 months

esults • "Initial overview" of the enterprise’s situation: general / functional areas / inter-

functional relations. • Evaluation by management and report of results to all personnel. • Base line definition (impact). • Strategic Plan for the next 3 to 5 years.

ctivities • Rationalization of operations / openness to change. • Creation of working groups, continuous improvement projects led by internal

consultants (interlocutors of external consultants – multipliers). • Development and execution of improvement projects.

Simultaneous Training: 12 months for all personnel

Implementation: 10 months

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Strategic plan Schedule key activities Execute key activities

Identify / select Quantify the problem Identivy / select / quantify

Standardize key Monitor and document Start again

Strategic plan Schedule key activities Execute key activities

Identify / select Quantify the problem Identivy / select / quantify

Standardize key Monitor and document Start again

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s preparatory steps, first meetings of the different improvement groups and training or all personnel of the enterprise are arranged.

To review the background and to gain better knowledge of the system: to clarify quality and productivity concepts in the group. To define the characterization dia-gram of the corresponding section or department.

To list the problems: using the brainstorming tool, all quality and productivity problems must be listed by section or department.

To preselect problems: preselect problems applying the nominal group technique.

To organize into a hierarchy the most important problems from the list using the “hierarchy matrix”.

To select the improvement opportunity: submit the selected problem for the ap-proval of the quality and productivity committee.

To clarify and quantify the problem: define the indicators that reflect the prob-lem. To design the data collection sheet and enter data.

ata related to the analyzed problem must be collected on a permanent basis.

To segment the problem: segment the problem for a better analysis and impact (if deemed necessary).

To choose divisions on database: evaluate the impact of each division and apply the Pareto principle. Select the most important divisions.

Step Two: To Quantify the Problem

Step One: To Select the Improvement Opportunity

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A To list causes: list the causes of the problem obtained from the data collection sheet.

B To group and quantify causes: group and quantify causes according to the prob-lem division and apply the Pareto principles to avoid wasting energy in causes that are not relevant.

C To select causes: determine the most relevant root causes applying the Ishikawa diagram. This step must be done based on data from the data collection sheet.

A To define the expected level: establish the expected performance levels based on the analysis of causes that could be reduced or eliminated based on the informa-tion obtained in the previous step.

B To define the improvement goal: this is based on the assumption that the root causes will be reduced or eliminated in a sequential fashion. This is the level that is expected to be reached after implementing the solutions.

A To list possible solutions: list possible solutions for each cause. The list may be organized into a hierarchy to rule out some alternatives through the nominal group technique.

B To select the most feasible solutions: for this purpose, it is convenient to use mul-tiple criteria such as feasibility of execution, feasibility of solution, impact on the enterprise, cost of solution, etc.

C To schedule activities for each solution: schedule the implementation of solutions defining the responsible actors, dates, resources, etc. The Gantt diagram is rec-ommended.

Step Three: To Analyze Root Causes

Step Four: To Establish Goals

Step Five: To Design and Execute Solutions

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To verify progress of the solutions: do faithful follow-up on the execution of the solutions by the corresponding group. Take notes and make range graphs.

To check achieved levels: verify the achieved results using the same indicators that were used for the first measurements.

To evaluate the impact of the incorporated improvements: evaluate the impact generated by the implemented solutions on other areas, personnel motivation, etc. Also calculate the savings generated by the group for the enterprise. The esti-mate is made through an annual savings projection.

To standardize operational practices: standardize the new working methods in the different sections.

Training in new methods: train everyone involved in the new procedures and methods.

To incorporate the department management into control: define the new standards and indicators in addition to incorporating the regular management of the section into the control process.

Recognize and disseminate results: document and present the executed projects and the achieved results to the quality and productivity committee.

ctivities for the Quality Workshops

• Conduct quality workshops in each participating enterprise. • Define the best groups in each enterprise that will participate in the quality

workshops. • Prepare the best groups of each enterprise for their participation in the quality

workshops at the provincial level. • Present the quality workshops to all the enterprises. • Make a final evaluation of the process in each enterprise.

Step Seven: To Establish Guarantee Actions

Characteristics of the Program

Criteria for the Selection of Enterprises

• 3 years of formal operation in the productive or service sector. • Financial statements and work relation without risk of financial bankruptcy or

technical failure. • Potential for growth in exports or in the domestic market. • Participation of women in senior, middle management or operations. • Openness to discussing environmental issues. • Co-investment in the process (according to size).

Actors

Local consultants:daily work

Supporting consultants

Swisscontact Management, Evaluation

CdS: logistics

Leading / senior consultants

Enterprises: internal consultants / working groups / entire personnel

Results

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Qualitative Results

• Improvement in personnel motivation. • High degree of empowerment and training of all personnel. • Reduction of personnel turnover levels. • Systematized process of power sharing, reduction of hierarchies, and democratiza-

tion in the decision-making process. • Permanent procedures of continuous improvement in functional or inter-functional

areas contained in the program. • Strengthening of teamwork.

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Quantitative Results

• Increase in the volume of operations (production/services) ranging from 5% to 20%.

• Improvement in work productivity indicators ranging from 5% to 25%.

• Stable or increasing employment (up to 100%).

• Sales increase ranging from 10% to 70%.

• Salary raises in 75% of the enterprises

• Total return ranging from 50% to 250% (high profitability of Managing Continuous Improvement).

• Implementation Process

DETAILED DESCRIPTION OF THE ELEMENTS

The success or failure of a Continuous Improvement Process depends mainly on two factors: the commitment of senior management and the methodology used for its im-plementation. Once the management has made its commitment, it is of vital impor-tance to use the adequate methodology to achieve the objectives proposed by the en-terprises.

Following is a description of the steps that should be followed to ensure the success in implementing these processes. A general application schedule of the various aspects described in this document appears in annex No. 1: “General Schedule for the Imple-mentation of Continuous Improvement Processes”.

Training of the Leading Process Team

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Before initiating the introduction of CIM, it is important to integrate the leading team that will work in the enterprise and implementation of the process. The leading team must be led by the general manager of the enterprise and must be integrated by the managers of the different departments who will serve as internal consultants and whose functions will be detailed later.

After integrating the leading team that will work on the implementation of the proc-ess, the external consultant prepares the adequate training for the enterprise, the topic of which has been named “Managing Continuous Improvement”. Instruction of this document is designed to take eight hours, that is, a complete working day.

After the seminar, the leading team will provide the same instruction to the rest of the personnel within a deadline established in the general schedule of activities. It is rec-ommended that this activity be conducted in groups of no more than 30 people to en-sure the assimilation of knowledge.

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Organizational Assessment

23

fter the leading team and all the personnel have received training, the organizational nd working environment assessment is conducted.

his assessment is to be conducted using a methodology developed by local person-el, which has yielded excellent results in practice. This methodology enables the nterprise to evaluate different areas such as management (mission statement, vision, alues, and organization principles), finance, human resources, acquisitions, mainte-ance, quality, sales and marketing, safety and hygiene, research and development, mong others.

arallel to the organizational assessment, a working environment assessment is arried out with the purpose of measuring the reaction of the labour force. This nalysis is extremely important as it enables management to take corrective actions to chieve satisfaction of the internal customers.

ctivities to be conducted for the organizational assessment

nowledge of the enterprise’s sector efore conducting any activity, consultants must know the real situation of the sector

o which the enterprise belongs with the purpose of possessing an initial level of in-ormation in order to ensure fluency and confidence in the interview with the general anager.

reparation of the assessment agenda mmediately after, an assessment agenda must be prepared in the way of a schedule of ctivities describing the working program. The first point on the agenda must be a eeting with the general manager with the purpose of clarifying the assessment

bjectives, the manager’s expectations and defining the details and the outcome that ill result from the assessment.

he agenda must also include a visit to the enterprise’s facilities in order to detect in eneral the most evident problems and collect information that may be useful in for-

24

mulating the questions, which can later be compared with the opinion of the inter-viewees.

Preparation of the assessment Before the initial meeting, the general manager, must introduce all the personnel and the Consultant and must explain the objective of the assessment so that all interview-ees will provide real information. After the meeting with the general manager, a visit to the enterprise’s facilities must be made to observe the following aspects, among others: • Flow of materials and raw materials. • Layout of the facilities. • Transportation systems, handling of materials and storage. • State of machinery and other equipment. • Working attitude, methods and behaviour of in-house personnel. • Utilization degree of installed capacity. • Bottlenecks. • Production procedures and control. • Working conditions (noise, temperature, pollution, cleanliness, etc.).

After the visit, the external consultant will meet with the directors of the departments or processes (functional manager or director) to obtain the required information about the enterprise.

An assessment of the working environment is conducted as part of the overall assess-ment through surveys completed by the personnel of the enterprise.

Processing of the information and presentation of the assessment After the information has been gathered, it is necessary to process it while underlining the most relevant aspects. An appointment is then made with the general manager to ensure that he/she will understand and commit to the results of the assessment while placing particular emphasis on the recommendations made by the consultant.

The assessment may be structured in the following way:

1 General information about the enterprise. 2 Assessment by functional areas. 3 Assessment of working atmosphere. 4 Conclusions and recommendations.

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Development of the Strategic Plan of the Organization

25

he enterprise moves on to the strategic planning process after conducting the organ-zational assessment, reaching the main conclusions, and making the recommenda-ions.

he methodology for this process is the following:

reation of strategy committee

his committee will be integrated by the personnel who has vertical as well as hori-ontal representation in the enterprise. At the vertical level, there must be representa-ives of senior management, shareholders, and administrative and operational staff. t the horizontal level, there must be representatives from the different functional de-artments or sections. If there is a labour union, employee association or club, a rep-esentative of these groups must also be on the committee.

he general manager and the people that report to him directly become automatic embers of the strategy committee.

t is also recommended to invite important customers of the enterprise with the pur-ose of knowing their expectations concerning products or services and the enterprise tself as they relate to methodology.

efinition of the location where the process will be implemented

he location where strategic planning is to take place must preferably have three dif-erent sections: one to teach the theory and hold the consensus plenary sessions, an-ther one for the groups involved with the internal processes of the enterprise, and the ther for meetings of the groups involved with customers and the enterprise’s envi-onment. Each group should ideally have a laptop computer to facilitate their work nd presentations. There should also be an data beamer for the presentations.

trategic planning process

fter having attended to all logistic details and integrated the strategy committee, the trategic planning process itself takes place, which is comprised of the following hases:

26

• Formulation of the mission and vision statement of the enterprise. • Definition of the values and principles of the enterprise. • Analysis of internal and external customer expectations. • Analysis of threats and opportunities of the enterprise’s environment. • Analysis of the strengths and weaknesses of the enterprise. • Definition of the key success factors (the Balanced Scorecard may be used to this

end). • Definition of the institutional strategic objectives. • Definition of the strategies and activities required for achieving the objectives.

The dynamics of the methodology should be based first on working groups to later reach a consensus at a plenary meeting. At the end of the process, a draft must be made of a document entitled “Strategic Plan XYZ”. The suggested time for this proc-ess is 16 hours, that is, two working days.

During the strategic planning process, various indicators may be used to evaluate the enterprise and at the same time measure the effectiveness of the process. Among the most important indicators are: • Customer relations: Level of customer satisfaction, complaints, loyal customers,

repeated customers, lost customers. • Employee relations: Employee satisfaction, turnover rate, complaints of internal

customers, general complaints, working environment. • Supplier relations: Profitability achieved with their support, material returns, de-

livery time. • Shareholder relations: Profits, dividends and stock value. • Other indicators: Product cost, sales level, gained markets, market penetration,

reprocesses, returns, defective products, delays in delivery, production cycles, dead times, point-setting times, etc.

The following step after the strategic planning process of the enterprise is to train the

leading group in the use of the main problem-solving tools. This workshop takes 12 hours.

Once the basic tools for continuous improvement have been understood, and having chosen the methodology to be used, the internal consultants are responsible for dis-seminating that information and ensuring its understanding among all the personnel across the enterprise.

Training in Application of Tools and Problem-Solving Methodology

27

In order to achieve the objectives, it is necessary to define the structure and mecha-nisms that must be adapted to the conditions of the enterprise.

Structure of the Quality Management

The structure of the quality management is defined in the following manner:

Quality and Procuctivity Cmomittee

Division Quality Committee 1 Division Quality Committee 2

General Process

IG2 IG3 IG4 IG5 IG6

Facilitator Facilitator Facilitator Facilitator Facilitator

Leader 1Leader 1 Leader 1 Leader 1 Leader 1

MembersMembersMembersMembersMembers

Facilitator

IG1

Leader 1

Members

Quality and Procuctivity Cmomittee

Division Quality Committee 1 Division Quality Committee 2

General Process

IG2 IG3 IG4 IG5 IG6

Facilitator Facilitator Facilitator Facilitator Facilitator

Leader 1Leader 1 Leader 1 Leader 1 Leader 1

MembersMembersMembersMembersMembers

Facilitator

IG1

Leader 1

Members

IG = Improvement Group

This structure works in line with the organizational structure of the enterprise. In other words, the organizational chart does not change at all. It encourages teamwork instead. Following are the functions of each of the bodies that make up this structure.

Definition of Quality Structure

28

Quality and productivity committee

Integrated by: The president or general director, vice-president or general managers, functional or division managers, the general process coordinator, who serves as the secretary of the committee.

Functions: To establish guidelines and corporate and organizational quality objectives and set specific:

• Medium and long-term goals. • Priorities. • Degree of participation of the different levels of the enterprise. • Number of teams and internal facilitators. • Group meeting schedules and dates. • Define and disseminate the vision, mission, values and principles of the

enterprise. • Deployment of quality objectives and policies. • To approve the general strategy to be followed and the necessary resources in ad-

dition to establishing the required • Infrastructure of the enterprise. • To follow up on the progress made in the different areas particularly the degree of

participation and involvement of each level. • To establish medium and long-term goals, priorities, degree of participation of the

different levels of the enterprise. • To establish, as necessary, inter-functional teams to address improvement oppor-

tunities of the processes in which functional managers are involved. • To define recognition and reward policies.

Periodicity: The quality and productivity committee must hold a meeting once a month.

Departmental or functional quality committee

Integrated by: division manager, departmental managers and an internal facilitator.

Functions • To establish groups to address improvement issues and opportunities that will in-

volve various departments. • To follow up and evaluate the progress of the improvement process (projects, re-

sults, involvement, and training). • To establish exchange and dissemination mechanisms among the different depart-

ments of the division.

29

• To ensure compliance with the policies, the quality and productivity principles in their functional area or department.

• To coordinate the required training in the various departments.

Periodicity: The committee must meet at least once a month or whenever required by a special situation.

Improvement groups

Functional improvement groups Integrated by: Designated personnel from different departments that perform the same function and an internal consultant

Functions • To analyze problems that overlap or involve various departments or sections of a

same functional management. • To address specific opportunities for each function.

Periodicity: The functional improvement groups are permanent groups that will meet at least for two hours every week, depending on the project that is being carried out.

Inter-functional improvement groups Integrated by: Designated personnel from different functional management depart-ments and an internal facilitator.

Functions

• To analyze and improve problems that involve several inter-functional manage-ment departments.

• To recommend policies, systems, procedures and standards of general application in the enterprise.

Periodicity: These are non-permanent groups established by the quality and productivity committee of the enterprise which will meet according an established schedule.

General process coordinator.

There will be a general coordinator for the entire continuous improvement process, who will at least have the following profile:

• In-depth knowledge of the processes of the enterprise.

• Decision-making, analysis, and problem-solving power.

30

• Interaction and conflict resolution abilities.

• Abilities to make presentations and prepare technical reports.

Functions

• To facilitate the enterprise’s quality committees.

• To provide support in the planning and follow-up of the process.

• To provide support to the different improvement groups.

• To prepare and organize the required training for management and internal consultants.

• To coordinate exchange and dissemination activities of the achieved results.

• To collect information required for establishing the necessary organizational objectives and evaluating the progress of the process.

Internal consultants

The internal consultants will support the quality committees and the improvement groups. They will also coordinate and provide the necessary training to section direc-tors, supervisors, and the rest of the personnel that integrate the improvement groups. The quantity of internal consultants by enterprise depends on its size and the degree of involvement determined by the quality and productivity committee.

An internal consultant should have the following profile:

• Vocation for teaching.

• Ability to work with and facilitate team work.

• Ability to manage concepts, approaches, statistical techniques and other quality tools.

• High prestige within the enterprise.

Leaders of improvement groups.

The leaders of the different improvement groups will be appointed by the quality and productivity committee. The designated leaders are usually the directors of the opera-tional units or the persons with the highest rank among the members of the group.

Some of the main activities of the leaders are the following:

• To call the members of the improvement groups to the various working meetings.

31

• To establish the strategy to be used in each meeting in conjunction with the internal fa-cilitator.

• To coordinate changes in schedule whenever it is strictly necessary.

• To maintain a constant high morale of the personnel.

Before starting to work with the different improvement groups, senior management, in conjunction with the external consultant, must define the different elements of the quality structure.

Once the different elements of the quality structure have been defined, the improve-ment groups begin to work.

During this first phase, it is recommended that improvement groups meet on a fre-quent basis: two hours a week. Each meeting should have a specific objective.

While working with the continuous improvement groups, progress of the enterprise’s process must be controlled and evaluated.

It is important to underline that the first phase of the process practically ends with the presentation to the community of the best groups of each enterprise. The event is called “Quality Workshops”, which serve to disseminate the value of implementing such processes among other enterprises in the community and other organizations that are related to the issue of quality.

Various tools are provided during the process to ensure the improvement of the over-all management of the enterprise:

• Human talent management. • Service management and assessment of customer satisfaction. • Marketing management. • Costs of poor quality.

Work Initiation by Improvement Groups

Other Management Tools

32

CONTROL AND EVALUATION

A document establishes the method to control and evaluate the progress of the con-tinuous improvement process in the different enterprises. It evaluates the various elements of the structure such as the committees and the improvement groups.

The objective of issuing this document is to furnish all participants in the project with tools for controlling and following up on the continuous improvement process.

Control and Evaluation Formats The formats are designed for controlling and evaluating relevant aspects that influence the development of the process.

General Information

• All the formats related to improvement groups or committees will be included in a folder which will also serve as a record of the same.

• The leader must take the general coordination folder before the meeting and return it immediately after the meeting and must fill out the corresponding formats, including the evaluation results.

• The general coordinator of the enterprise will prepare summary charts with group and committee reports and the progress of the improvement project.

• In each meeting of the improvement groups and the committees, the previous reports will be evaluated and corrective actions will be taken for continuous improvement.

Control and Evaluation of the Committees and Groups during the Implementation of the CIM

33

Following is a table with the objectives, activities, and the persons responsible for each format.

Formats for the evaluation and follow up of the continuous improvement process

Objective Activity Person Responsible

Control of attendance to meetings of improvement groups

Fill out names of members, date and conditions of meeting: punctuality, delay or lack of members

Group leader

Control of attendance to meetings of committees

Quality committee

Assessment of meetings of improvement groups

Assess the different aspects of the group meetings

Group leader

Assessment of meetings of committees

Voting is individual and secret. At the end of the meeting, the leader and the coordinator will calculate averages.

Quality committee

Evaluation averages of meetings of improvement groups

Fill out box with evaluation av-erages of meetings of im-provement groups and commit-tees

General process coordi-nator

Evaluation averages of meetings of committees

This format analyzes differ-ences between improvement groups and committees

Application of methodology by methodology groups

Evaluate the development of each step of the methodology

Quality committee

Monthly follow-up of con-tinuous improvement groups

Determine in which step of the methodology is each group

General process coordi-nator

34

EXPERIENCES IN ECUADORIAN ENTERPRISES

After implementing several programs and having made numerous corrections and changes, it was agreed that 12 months would be the optimum time to implement the program without affecting its effectiveness and quality. However, this document lays out the national program that was executed over a period of 18 months in the cities of Quito, Guayaquil, Cuenca, Ambato and Ibarra. 54 companies participated and imple-mented the Quality and Productivity Continuous Improvement program successfully. For space and versatility reasons, in this edition we only include the business group from Ambato as a way of exemplifying and showing a representation of the total av-erage results achieved by the beneficiary enterprises, according to their size and productive activity.

Study Groups

• City: Ambato • Coordination: CORFOPYM (CdS Service Center) • Main Consultant: BARRAZUETA & ASOCIADOS • Supporting Consultant: Oscar Castro • Companies:

Example of the Business Group from Ambato

35

Enterprises that have implemented the Continuous Improvement Processes

No. Enterprise Activity Size 1. Labgénesis Production of nutritional supplements Small enterprise 2. Confites Fresan Production of jelly gums

3. Tecnipan Production of bread, sandwiches and snacks

Small enterprise

4. Molinos Miraflores Production of wheat flour

5. Imce Design and construction of metal body-work

6. Textiles Albacando Manufacturing of thread for the textile industry

7. Creaciones Calixto Jr.

Design and manufacturing of women’s footwear

8. Muebles León Design and construction of metal furni-ture

Medium-sized enterprise

9. Confymoda Clothing design and manufacturing

10. Incubandina Production of B.B chicks

11. Ecuatrán Design and construction of distribution transformers

Large enterprise

Following are the results achieved by the enterprises of the study group as well as two case studies.

The results in the table on next page represent the average impact achieved in each and every one of the participating enterprises. The division makes reference to the pa-rameters and indicators determined by SWISSCONTACT, according to the number of employees, assets without land property and buildings, annual sales volume, working capital and technological-productive degree.

36

Summary of Indicators

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37

The Case of VECACHI

VECACHI is a small enterprise with 60 employees dedicated to the design, manufac-turing, and marketing of leather footwear for general use. It is located on Los Chasquis Avenue and Río Payamino in the city of Ambato, Ecuador. Its General Manager is Mr. Calixto Peñaloza, an entrepreneur with a true vision.

BACKGROUND.- The VECACHI Group was created in 1995 on the initiative of three family siblings: Calixto, Milton and María Olivia Peñalosa. Their idea was to increase the manufacturing and marketing of their products and optimize the relation-ship between quality, price and service. Its name originates from Venturini, Calixto Jr. and Chiquitín, which are the names of the enterprises of the different members of the family. Vecachi’s quality policy is “to manufacture footwear that complies with customer re-quirements through continuous improvement processes and the participation of their collaborators to ensure customer satisfaction”.

STATEMENTS.- “In the 1990s, the term globalization became a buzzword that was new to most entrepreneurs. By 1994, the terms productivity and competitiveness ap-peared in the jargon. Vecachi used to belong to an association founded in 1994, which began to take actions to enter into processes for improving the productivity and competitiveness of organizations”.

“In 1999, the decision was made to initiate a Continuous Improvement Management based on an initial assessment with the purpose of changing the mindset of the per-sonnel. We thought that it was one of the best alternatives for improving the entire organization and not only particular processes as we discovered multiple problems in the various processes of the organization”.

“Some indicators such as material waste have been obtained thus far. This indicator quantified the amounts of materials that the organization disposed of as waste and en-abled us to clarify the real problems, resulting in significant amounts in savings”.

“The process corrected mistakes and reduced the indicators thereby improving pro-ductivity and lowering the costs of goods, which has placed our business on a com-petitive as opposed to a survival level in the current market.”

“If we hadn’t implemented Continuous Improvement Management, we would proba-bly be on the edge of a collapse. Fortunately, the correct decision was made at the appropriate time and our objective is to continue improving on a permanent basis.”

38

“The main factor is the involvement of management in the systems. Without the par-ticipation of management, the organization will never improve. The next step is to get middle management and employees involved as well.”

“At the beginning, any change is usually considered an expense. However, with the passage of time, indicators serve to prove the fact that it was not an expense but an investment instead, for the indicators used at the end of the process fully justify the time invested in the meetings of the improvement groups”.

“An important change is to become competitive in the market, to be able to work with quality products and to ensure higher customer satisfaction. Needless to say, that a change of attitude across the organization is essential too”.

“The most relevant action is to change the mindset of human resources. In addition, staff distribution and the working environment were improved, and the personnel learned concepts of quality, productivity, efficiency, effectiveness, among others”.

“We expect to continue with these processes as well as to implement IS0 9.000:2.000. I suggest that enterprises first implement continuous improvement and then proceed with the other processes considering that entrepreneurs have social commitment and liability. They also set the example to motivate other enterprises to adopt these processes”.

“It is essential for enterprises to embark upon these processes in times of hardship as opposed to the traditional tendency to let themselves disappear. The social liability of entrepreneurs is to create jobs and not to think only in making money”.

“If companies wish to stay in the market, they should implement quality and produc-tivity processes in an urgent manner so as to be able to compete with international products and organizations. Otherwise, they will regret it”.

“I wish to express our gratitude to Swisscontact for leading us into these processes. It would have been impossible for us to fund and implement them without their sup-port”.

39

The Case of CONFITES FRESAN

Confites FRESAN is a small enterprise dedicated to the production of wheat flour products such as bread, cakes or canapés.The business is located on Pichincha Avenue in the city of Ambato, Ecuador. Its General Manager is Edwin Santamaría, a food engineer.

BACKGROUND- Confites Fresan started operations in 1992 on the grounds of the enthusiastic entrepreneurial spirit of engineer Mariela Freire, who charted a new course for the growing enterprise. The enterprise first entered the market with the name of Confites Fresan offering jelly products under the trademark of GUMMIS. The enterprise has come a long way since then, always with the customer as the top priority. Products have continuously been modified to ensure customer satisfaction. In 1995, the enterprise became a member of the Tungurahua Chamber of Small Pro-ducers, and in 1996 it was qualified by the Ministry for Industries and Trade within the corresponding manufacturing area. In addition to being an enterprise dedicated to food production, Confites Fresan values its external customers and its people as real assets. At present, Confites Fresan produces and markets the following products:

Jelly candy under the Chiqui´s Gel trademark Jelly desserts under the Chiqui´s postre trademark

STATEMENTS.- “Two years ago, our sales began to drop as we perceived a presence of similar and substitute products in the market”.

“As soon as we learned of a so-called Continuous Improvement Management, we decided to act upon it through the Swisscontact Foundation, which was the organization that at the time supported small enterprises to access these processes”.

“There are two key factors to be considered by organizations that successfully imple-ment Continuous Improvement Management. First, management leadership and in-volvement are essential to move these processes forward. Second, time investment in meetings of the improvement groups is very important, for there are many managers who do not like to sacrifice production time. If results are evaluated before and after the process, improved indicators will reveal that time investment was indeed fruitful”.

“The responsibility of achieving higher quality and productivity levels not only lies with management and owners but also with all the people who collaborate through the improvement groups, as it becomes a collective search for quality. This approach proved to be very effective”.

“The main achievements obtained so far have enabled us to maintain our leading po-sition based on quality. In addition, we offer competitive prices with respect to na-

40

tional and international competition; our sales have increased by 50%; we have dou-bled our staff; and we relocated to a larger operating facility adequate to our growth”.

“The main qualitative changes obtained after implementing the process have occurred in the people themselves. The employees now work with the commitment of accomplishing their tasks efficiently. Quality is not the exclusive domain of management or administrative staff anymore. All the employees speak of quality and they understand statistical data and productivity. They do their work by optimizing resources. Management is not the responsibility of proprietors alone anymore. It is also the responsibility of all employees in their performance of their daily work”.

OTHER IMPROVED INDICATORS

Indicator Before the CIP After the CIP Management Indicators Do not exist Decision indicators exist Administrative staff 1 3 Permanent staff 10 20 New quality processes Eventual consultancy Wish to enter ISO 9.000 Personnel compensation Extra hour payment accord-

ing to law 50% increase per extra hour

Industrial security and hygiene facilities

Minimum without analysis There were no uniforms or security equipment

Based on a technical study Uniforms and security equip-ment in place

Financial control Deficient financial control Efficient financial control. An accountant was hired.

Managerial decisions Based on intuition Based on data Human Resources Responsibilities were not

defined (Schedule) No manual of functions

Responsibilities were defined. (Schedule) There is a manual of functions.

Market coverage Customers from the moun-tain regions only

Three more coastal provinces are being attended to (Guayas, Manabí, Esmeraldas).

Factory area 120 m2 220m2 Software Without licenses With licenses Other improvements New facilities were purchased

for plant operations. A thermogenerator was pur-chased to improve product presentation. ($ 10.000)

41

“The foundation is laid; the soil is fertile and we want to continue improving. The next step is to adopt a Food Quality Assurance project (HACCP), and then we will proceed with a Quality Control Management system such as ISO 9000:2000. We grow step by step with the purpose of exporting in the future. We believe that global-ization is more an opportunity than a threat”.

“It is not just about recommending entrepreneurs to implement these processes. It is an immediate need for small and medium-sized enterprises. Globalization requires products of higher quality and at lower prices. If we do not achieve the required qual-ity and productivity levels, the market force will itself push us out of business. We must continue to improve our business if we want to survive. It is also a moral re-sponsibility for there are families behind our enterprises that depend on them for their sustenance”.

42

LIST OF ALL PARTICIPATING ENTERPRISES

BUSINESS ACTIVITY R E P R E S E N -

A T I V E ADDRESS TELE-PHONE CITY

1

CIESPAL Publications – Promotion

Edgar Jaramillo Diego de Almagro 32-133 y Andrade María

2238-275 Quito

2 CONSERTEC S.A Furniture Jorge Garrido Arupos 63 E 550 y Av. Eloy Alfaro

2483-609 Quito

3 GRÁFICAS PAOLA Graphs Paola Ortíz Av. 10 de Agosto N25-77 y Av. Colón

2562-665 Quito

4 INVEDELCA S.A Mushroom production

Guillermo Valencia Panamericana Sur Km 18 2317-134 Quito

5 JCR FUNDICIONES Smelting Juan Carlos Recalde Av. General Enríquez # 4885

2333-891 Sangolquí

6 MODUCÓN CÍA LTDA

Modular fur-niture

Oscar López Río Coca y Av. Ama-zonas N44-30

2922-283 Quito

7 VYMSA Die making Raúl Mendizábal Panamericana Norte Km 65 José de la Roa 288 y F. García

2474-090 Quito

8 B& T CIA LTDA Pressure tanks Eduardo Cisneros Calle de los Cipreces lote 31 y los Helechos

2483-333 Quito

9 ECUAVALVULA Smelting Alfredo Rodríguez Panamericana norte km 5 1/2

2470-464 Quito

10 TENNIS SPORT Sportswear Danny Garzón Díaz de Pineda 267 y Gamarra

2657-688 Quito

11 ELAC Engineering Fernando Burneo Andrade Dueñas Lote 77 2478-109

2282-920

Quito

12 INCUBADORA ANDINA

Poultry breed-ing

María Corrales Av. Los Capulíes 13109 y Juan Montalvo

851-886 Ambato

13 AVÍCOLA AGOYÁN Poultry breed-ing

Esthela Chávez Av. De los Capulíes y Guayabos

855-670

851-886

Ambato

14 ECUATRÁN Transformers Alfredo Petruska Km 75 vía Guaranda 840-805 Ambato

15 MOLINO MIRAFLORES

Milling Fabián Vela Av. Miraflores 1-14 y Pérez de Anda

823-510 Ambato

16 TEXTILES ALBACANDO

Textiles Vicente Albancando Sevilla y Barcelona di-agonal Escuela la Granja

843-596 Ambato

17 MUEBLES LEÓN Furniture Vicente León Vía a Baños atrás de los estadios alternos.

850-593 Ambato

18 LABGÉNESIS Natural prod- Angel Jadán Los Shyris 623 y Quisquis 827-336 Ambato

43

ucts Esq.

19 CARROCERÍAS IMCE

Auto Body-work

Ramiro Cepeda Panamericana Norte km 15 Sector Catiglata

844-264

844-437

Ambato

20 CALIXTO JR Footwear Calixto Peñalosa Av. Los Chasquis 011 y Payamino

844-042

846-287

Ambato

21 TECNIPAN Bakery Elsa Cobo Av. Ceballos 460 y Casti-llo

823-520

825-885

Ambato

22 FAIRIS Glass Jorge Jaramillo Pasaje Verde lama s/n Ingaurco alto

851-254

850-741

Ambato

23 FRESAN Foods Mariela Freire Río Guayllabamba y Av. Los Chasquis

852-318 Ambato

24 CONFYMODA Clothing Marcelo Gordon Taquilema e Isidro Ayora Esq.

849-686 Ambato

25 ADAPAUSTRO Metallurgy Galo Salamanca Gil Ramírez Dávalos 2-93 y Eliia Luit

865-863 Cuenca

26 ANDEAN FLOR S.A Flower grow-ing

Teodoro Acosta San Joaquín Km 65 894-911 Cuenca

27 CONAUSTRO CÍA LTDA

Concrete pro-duction

Bolívar Guerrero Av. San Silvestre y vía Patamarca

898-900 Cuenca

28 MEGAPAN Bakery Nancy Calle Eloy Alfaro 4-301 y Oc-tavio Díaz

864-516 Cuenca

29 MOLINO Y PASTIFICIO ITALIA CÍA LTDA.

Milling Pedro Ruiz Obpo. León 3-01 y Cdla Católica

805-903 Cuenca

30 REENCAUCHADORA ANDINA S.A

Remolding Betzy de Vega Carlos Tosi 3-06 y calle 2da. Parque Ind, Cuenca

869-130 Cuenca

31 LITARG MODE Clothing Benjamín Lituana Av. Roldos y Antonio Delgado /Gualaceo

255-122 Cuenca

32 CALZADO ITALIA Footwear Jorge Argudo Gualaceo 255-076 Cuenca

33 JOYERÍA LEÓN Joyería Ricardo León Gran Colombia 9-85 823-623 Cuenca

34 IMPREFEPP Printer Patricia Torres Mallorca 24-275 entre Coruña y Madrid (la Flo-resta)

2550-705 Quito

35 COOPROGRESO Cooperative Gustavo Vásconez Av. Manuel Córdova Galarza

2352-510 Quito

36 COTELAR Textiles María de Lourdes Rojas

Av. 6 de Diciembre 2634 Y República

2422-224 Quito

37 SIPIA Foods Enrique Escudero Hugo Moncayo E11-28 y Av. 6 de Diciembre

2455-606 Quito

44

38 FLORALP Foods Rodolfo Purtschert Centro Comercial la Es-quina Cumbaya

810156 Quito

39 LATECH Systems Manuel Ortega De las Retamas E2-51 y Enesco, altura del El labrador

412-248 Quito

40 PERFILAM CIA. LTDA

Structures Diego Jarrín Av. Colombia 242, Ed. MM Jaramillo Arteaga of. 404

957-237 Quito

41 CAMARI Retailing Gonzalo Merchán 8 de Marzo C11 E lote 25 676-784 Quito

42 EFEGE Silk-screen work

Franklin Gómez Velasco 719 y Bolivar 955-834 Ibarra

43 JHINO´S Clothing Roberto Cisneros Borrero 964 y Chica Narváez

959-750 Ibarra

44 PLANTERRA Flower grow-ing

Enrique Idrovo Km 1 _ via Quinchinche 922-844 Otavalo

45 COOPERATIVA 23 DE JULIO

Cooperative Eduardo Aguirre Rocafuerte 807 y Sucre 362-190 Cayambe

46 STYLE Modular fur-niture

Erich Quass Cordero 1209 y Juan León Mera

897-945 Quito

47 FAME S.A Clothing Fausto Estrella Urb. Santiago, calle Te-muco y Canelo

6-22-412 Quito

48 PANADERÍA NUMBER ONE

Bakery María del Carmen Montoya

Av. Jaime Rivadeneira 537 y Oviedo

958-688 Ibarra

49 TEJIDOS KATTY Clothing Castorina Calderón Sucre 537 y Rocafuerte 907-668 Atuntaqui

50 INDUTEXMA Textiles Ricardo Moreno Roca 206 y Mejía 920-469 Otavalo

51 REPROAVI CIA LTDA

Poultry breed-ing

Elina Ximenez Sánchez y Cifuentes 1166 entre Colón y Velasco

06956835

06952844

Ibarra

52 MECRISGA Socks Cristina de Garcia Av. Aurelio Espinoza Pollit. Cdla la Victoria

06-643-502

Ibarra

53 REY SAC Jute sacks Xavier Durán Kilómetro 19 vía a la costa

04-873189 Guayaquil

54 PLASTIDOR Plastic pipes Jorge Jalil Kilómetro 8 _ vía Daule 04-262222 Guayaquil

55 COOPERATIVA NACIONAL

Cooperative Jorge Jácome Capitán Najera 4210 y la 14

04-471118 Guayaquil

56 INDUALFA Adhesive products

Miguel Saenz Kilómetro 7 _ vía Daule Prosperina calle 6to y Av. 9na

04-255617 Guayaquil

57 FASINARM Smelting Pilar Meregildo Kennedy Norte MZ 17 villa 3 diagonal subestación Inecel

04-682-414

Guayaquil

58 MILMATEX Textiles Alexandra Charvet Cotocollao, Barrio con-dado calle Julian Quitu

493-493 Quito

45

OE 248 y Sagalita. 490-676

59 PROALME Foods Juan Carlos Proaño Valle de los chillos de Capelo para atrás barrio fajardo sector del muelle calle cacasa # 49B

330-083

335-089

Quito

60 INDUCALZA Footwear Guido Krebs Panamericana sur km 7 _ calle Quimia y Gonsol

673-444

673-470

Quito

61 CACERES Footwear Fabián Cáceres Nogales N48-15 y Av. El Inca

2405154 Quito

62 TENERIA SAN JOSE Tanning José Zurita Panamericana Sur km 4 _ Ambato

63 BUESTAN Footwear Diana Buestán Panamericana Norte km 7 _ Av. José Andrade # Oe1-589 y Joaquín Man-cheno.

2474-495 Quito

64 EDIASA Communica-tion

media

Pedro Zambrano Av. Metropolitana vía Manta

933777 Portoviejo

66 LA FABRIL Grease and oils

Carlos Gonzáles Artigas

Km.5.5 vía Manta-Portoviejo

593-5-920-091

Manta

67 MOLINERA MANTA

Flour Gonzalo Correa Km. 5 vía Manta-Portoviejo

593-5-921372

Manta

68 EMANACOMEX Ivory palm products

Jorge Luis Vera Av. 4 de noviembre y la Y 593-5-923-100

Manta

69 EL DIARIO Press Pedro Zambrano Km 1 via Portoviejo - Manta

593-5-933777

Portoviejo

70 DISTRIBUIDORA

SALAZAR

Beer distribu-tor

Guillermo Salazar Vía a Sta Ana Km 1 593-5-635178

Por-toviejo.

71 AMARCON S.A Tuna cannery James Alexander Vía Manta-Rocafuerte 593-5-923841

Manta