MOVING UP THE SUPPLY CHAIN: LESSONS FROM ECOP BIG ENTERPRISE SMALL ENTERPRISE (EBESE) PROGRAM

PRESENTED BY

Dr. MIFLORA M. GATCHALIANGOVERNOR

Employers Confederation of the Philippines (ECOP)Institute For Productivity and Competitiveness

Foundation, Inc. (EIPCF)

PRESENTATION OUTLINE

I. IntroductionII. EBESE: The EIPC Foundation Model

III. Milestones of the EBESE Model

IV. DAP Evaluation of the EBESE Model

V. Philexport: A Key Partner of EIPC Foundation

VI. Looking Forward to …

Employers Confederation

Of The Philippines (ECOP)

ECOP Institute for Productivity and Competitiveness

Foundation

INTRODUCTION

EIPC Foundation is a non-stock non-profit organization which was organized in 2004 and formally incorporated as such in 2008 by eleven pioneers in the field of productivity and competitiveness. It serves as the productivity arm of the Employers Confederation of the Philippines (ECOP ).

EIPC Foundation Board of Governors

Top (L-R): Marilou Calzado, Atty. Ranulfo Payos, Engr. Serafin Pantaleon, Roberto Sison (President), Atty. Eduardo Rondain, Reylito ElboBottom(L-R): Maria B. Villar, Feliciano L. Torres (Chairman), Raul Hernandez (President Emeritus), Dr. Miflora Gatchalian

PROGRAM MANAGERS

Right to Left: Jean Maligaya, Joan Ignacio, Geepee Gonzales

VISION: We envision our stakeholders as world-class quality and productivity champions whose products and

services are internationally competitive.

EIPC FOUNDATION …

MISSION: To be the leading catalyst in the pursuit of quality and productivity improvement to enhance national competitiveness and contribute to economic growth and social development of the Philippines

ECOPBig Enterprise-Small Enterprise

Productivity Improvement Program

THE EIPCF MODEL

WHAT IS EBESEA productivity improvement program

where the supplier and buyer

become partners in their quest

to improve their competitiveness.

Strategy*Big Enterprises (BEs) are encouraged to partner with their

suppliers so that both can achieve higher productivity and

competitiveness.

*Small Enterprises (SEs) are assisted to improve

their quality, cost and delivery to effectively respond

to demands of customers and buyers.

• Full cycle approach:

PROGRAM MODULE APPLICATION…

ADVOCACY – Accepting Change

IMPLEMENTATION – Apply the Change

MONITORING - Sustain the Change

CONTINUAL IMPROVEMENT – The Change Becomes An Organizational Culture

• Action training or “learning-by-doing”

PROGRAM MODULE APPLICATION

Actual implementation of improvements within three (3) months

Aided by a Consultant – acting as mentor to the company’s productivity team

• Improvements will be applied only on three areas :

PROGRAM MODULE APPLICATION . . .

*5S or Good Housekeeping

*Plant Layout

*Production Process

• Key Result Areas (KRAs):

PROGRAM MODULE APPLICATION …

*Increase Product / Service Quality*On Time Delivery of Goods/Services*Reduce Cost of Doing Business*Promote Employer-Employee Relationship Through the Joint-Problem Solving Approach

*Satisfied Customers

Government

Business Industry

MILESTONES OF EIPCF’S EBESE

Small and Medium Enterprises (SMEs) find difficulty in pursuing the modern approaches in business survival.

There is limited time and resources for the SMEs to focus on quality and productivity programs which can greatly affect their performance in terms of ensuring product quality, cost and delivery.

Scarcity of human resource development programs or standardized employee training modules make it difficult for SME management to obtain employee commitment to initiate or sustain Q & P programs

Small Enterprise (SE) Suppliers Need Assistance because …

QUALITY and PRODUCTIVITY TRAINING ACTIVITIES

emsems COMPONENTS ASSEMBLY, INC.

for having successfully completed the

5S Awareness 5S Awareness OrientationOrientation

conducted on July 28, 2005 at EMS Components Assembly

Incorporated Training Room, 124 North Science Avenue, Laguna

Techno park, Biñan Laguna

Is hereby awarded toIs hereby awarded to

Alfonso A. Arcilla Jr.Facilitator Factory Manager

5S Area Champion

emsems COMPONEN TS ASSEMBLY, INC.

emsems COMPONENTS ASSEMBLY, INC.

Shippi

ng

Shippi

ng

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Quality AssuranceQuality Assurance

emsems COMPONENTS ASSE MBLY, INC.

emsems COMPONENTS ASSEMBLY, INC.

I nvites you….I nvites you….

emsems COMPONENTS ASSEMBLY, INC.

on August 03, 2005on August 03, 2005on August 03, 20058:30 am. at L E I Compound Loading

Area, 124 North Science Avenue, Laguna Techno park, Biñan, Laguna .

8:30 am. at L E I Compound Loading Area, 124 North Science Avenue, Laguna Techno park, Biñan, Laguna .

Programme Programme Programme Opening Remarks Mr.OwiePeñaflor5S I nspirational Talk Mr. RollyVicenteA warding Ceremonies Mr. Francis I . Ferrer

Mr. RollyVicenteMr. OwiePeñaflorMr. Eric Quiogue

Special A nnouncements Mr. Francis I . FerrerCalisthenics Mr. Leo del RosarioB ig Clean-up All Employee

Ms. ArmieDoradoH ost

I nvites you….I nvites you….

emsems COMPONENTS ASSEMBLY, INC.

on August 03, 2005on August 03, 2005on August 03, 20058:30 am. at L E I Compound Loading

Area, 124 North Science Avenue, Laguna Techno park, Biñan, Laguna .

8:30 am. at L E I Compound Loading Area, 124 North Science Avenue, Laguna Techno park, Biñan, Laguna .

Programme Programme Programme Opening Remarks Mr.OwiePeñaflor5S I nspirational Talk Mr. RollyVicenteA warding Ceremonies Mr. Francis I . Ferrer

Mr. RollyVicenteMr. OwiePeñaflorMr. Eric Quiogue

Special A nnouncements Mr. Francis I . FerrerCalisthenics Mr. Leo del RosarioB ig Clean-up All Employee

Ms. ArmieDoradoH ost

All EmployeesAll Employees

QUALITY and PRODUCTIVITY TRAINING ACTIVITIES

225 SMALL ENTERPRISES

2005 2006 2007 2008 2009

25 BIG ENTERPRISES

2010

INDUSTRIES COVEREDAUTOMOTIVE INDUSTRY

SEMI-CONDUCTOR

PRINTING & PACKAGING

AGRO-INDUSTRIES

FOOD

FASHION ACCESSORIES

FURNITURE & DECORS

Pampanga

Bulacan

Metro Manila

Rizal

Laguna

CaviteBatangas

Cebu (Visayas Area)

Cagayan De Oro (Mindanao Area)

GEOGRAPHICAL REACH

DEVELOMENT ACADEMY OF THE PHILIPPINES (DAP)PROGRAM EVUALUATION BY THE …

Study Dimensions:

*Partnership*Technology Adaptation

*Benefits*Challenges*Satisfaction on the EBESE Program

* Program Implementation

DAP EVALUATION CONCLUSIONS

• THE EBESE PROGRAM WAS EFFECTIVE AND MET ITS OBJECTIVES – The BE-SE relationship was enhanced

– The EBESE has upgraded the skills of the SME beneficiaries (management and employees)

– Productivity Improvement Program was institutionalized within the SME organization

DAP STUDY: EBESE Program Strengths

• Full Management Support of SMEs• Full Participation of SME Employees• Consultants – Dedicated and Skilled• Training – Good Structure and Facilitators • Program is Easy to Apply• Visible Big Enterprise Support • Customer –Enhanced Supplier Relationship • Benchmarking Opportunities For SMEs• Government & Industry Collaboration

EIPC FOUNDATION and PHILEXPORT PARTNERSHIP

From 2009 – 2010, EIPC Foundation provided support through the EBESE program to nine (9) exporter members of Philexport in Luzon and Cagayan de Oro (Mindanao Region)

In 2007, EIPC Foundation supported 22 SME members of Philexport-Cebu

LOOKING FORWARD TO …

*Strengthening the PHILEXPORT and EIPC FOUNDATION partnership to develop more competitive exporters.

*Institutionalization of the EBESE Productivity Improvement Program within the PHILEXPORT members all over the Philippines.

THANK YOUTHANK YOU

AndAnd

GOOD DAY GOOD DAY QUALITY PARTNERS COMPANY, Ltd. “fostering partnerships for

quality