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
Target
(Promised Land)
Ideal path
Initial position
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
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.
Result: Most of SMEs are running life time experiment
“W i n or D i e” !
?
Improving Productivity, Quality, Competitiveness, Sustainability and
Knowledge Capital with UNIDO PHAROS Software Suite
Major reasons of SME mortality
(SEBRAE, BRAZIL)
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
Improving Productivity, Quality, Competitiveness, Sustainability and
Knowledge Capital with UNIDO PHAROS Software Suite
The price of ignorance
(UK case studies, CoVE and MII, food industry):
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 €
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 Suite
Pharos –
Business
Navigator
Training Course
Certification
Vienna
or any
European
location
Enterprise
In country
– regional
industrial
center
Benchmarking
Professionals
Produce Plus
Financial
Improvement
Toolkit
Client Support &
Consulting on-site
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
The UNIDO Upgrading Programme Content
1. Awareness seminars,
selecting of enterprises
2. Training courses for SME
management (5 days, < 24
persons per group)
Improving Productivity, Quality, Competitiveness, Sustainability and
Knowledge Capital with UNIDO PHAROS Software Suite
The Programme Components: Software
3. UNIDO Pharos Suite –
introductory software
tools for Business
Performance
Measurement &
Management &
Benchmarking
(min 2 licenses per enterprise
for general and production
managers)
Improving Productivity, Quality, Competitiveness, Sustainability and
Knowledge Capital with UNIDO PHAROS Software Suite
Programme components: on-site consulting & support
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
Improving Productivity, Quality, Competitiveness, Sustainability and
Knowledge Capital with UNIDO PHAROS Software Suite
UNIDO Performance
measurement tools:
B
u
s i
n
e
s
s
Benchmarking Report
Improving Productivity, Quality, Competitiveness, Sustainability and
Knowledge Capital with UNIDO PHAROS Software Suite
Key performance indicator improvements at a glance
by summary performance graph
Improving Productivity, Quality, Competitiveness, Sustainability and
Knowledge Capital with UNIDO PHAROS Software Suite
Key
Business
Indicators
time-series
in
benchmarking
module
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
Enterprise Model
of Training Programme Efficiency
(net profit only)
• 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
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
1. The practical instruments exist and proved
2. The cost of improvements in business culture, knowledge
capital, competitiveness, productivity and sustainability is
reasonable & unique compared to any existing options.
3. The results are measurable and documented.
Input:
< N, 000 EURO
per enterprise
Training
Programme
with or without
on-site support
<12 months
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
•
•
•
•
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•
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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
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•
•
•
•
•
•
•
•
•
•
•
•
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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, 1314 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 eProductivity 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 SubSahara 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
International
Knowledge Capital with UNIDO PHAROS Software
Suitecustomer 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, Ibagué
Outsoursing Industrial, Ibagué
Plano y Punto Ltda., Ibagué
Root & Co Kids Ltda, Ibagué
Serviconfección, Ibagué
Sheffy Sports, Ibagué
Basculas Prometalicos, Manizales
CI Plastigoma S.A., Manizales
Conelec S.A, Manizales
Sinterizados S.A, Manizales
Cable Link de Colombia S.A, Pereira
GL Ingenieros Ltda., Pereira
Industrias de Cables y Partes, Pereira
Magom Electroinica, Pereira
Normarh Ltda, Pereira
Integrando Ltda., Pereira Dosquebradas
Chile
Universidad de La Frontera, Temuco
Egypt
Cairo Int’l for Leather Industries
Short Shoe Factory
Baramki Group
Cairo Industry For Leather and Chemicals
Arto M Co.
Ramadan Chehata Sons Factories
Condor Footwear
Leather Technology Center
FLISC, UNIDO
Ministry of Industry and Technology
TCAE
2 M Shoes Company
ASI-Egypt
Improving Productivity, Quality, Competitiveness, Sustainability and
International
Knowledge Capital with UNIDO PHAROS Software
Suitecustomer list
Wonder Foods products
Glacier Products Ltd.
Kuwait
Arab Planning Institute, Shuwaikh
India
Vir Rubber Products, Mumbai
Standard Radiators (metal-radiators producer), Baroda
Zylog Plastalloys Ltd, Nasik
Manikprem Industries, Ahmednagar,
Engineering Plastics, Pune
ACMA Technical Centre, Delhi
Federation of Indian Chambers of Commerce & Industry
(FICCI), New Delhi
Power & Energy Development Centre, Bangalore
UTISTA Management Consulting, Bangalore
Lebanon
Joseph B. Amatoury s.a.r.l
Oriental Paper Products
Kfarshima
General 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
International
Knowledge Capital with UNIDO PHAROS Software
Suitecustomer 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
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: info@win2biz.comd
Official partner of UNIDO for
international distribution,
consulting and training for
UNIDO Business Performance
Measurement, Management
and Benchmarking Software
Member of
INSME
Association