An Assignment of Joint Donor Technical Assistance Fund (JDTAF)
Conducted by, Foyzul Bari Himel

Evaluate possible structure for:
 National Electro Medical Equipment Workshop
and Training Center (NEMEMW&TC)
 Transportation Equipment Maintenance
Organization (TEMO)

Proposed Options:
 Spinning Off into a Public Corporation
 Outsourcing Services from Private Companies

Step 1: Feasibility of the Proposed Structures
 Whether the proposed structures are operationally
feasible
 Whether the proposed structures are financially
feasible

Step 2: Comparison among structures in the
perspectives of
 Cost
 Risk
 Performance

Sources of Information
 Secondary Source
 Primary Source

Information Collection Method
 Secondary Literature Review
 Face to Face Interview with:
▪ HSM Officials (LD, HSM, Project Managers)
▪ NEMEMW&TC Officials (CTM, TMs, Technicians, other
officers)
▪ TEMO (WM, AO, SAE, other officers)
▪ Public and Private Hospitals and Health Facilities
▪ Private Transportation Equipment Maintenance Entities
▪ Private Electro Medical Equipment Providers
Service Provider
National Electro Medical Equipment
Maintenance Workshop and Training Center
Services
Equipment
Procurement
Assistance
• Technical Specification
Development
• Evaluation of
Procurement Bids
Equipment
Commissioning
• Installation
• Calibration
Equipment
Maintenance
• Preventive Maintenance
• Corrective Maintenance
(Electrical, Electronics, X-Ray,
Mechanical, Optical, A/C)
Training
• On Commissioning
• On Maintenance
Services Recipients
CMSD
Regular Service
• Government Hospitals and Health Complexes
• Public Medical Educational Institutes
• Public Medical Research Entities
Intermittent Service
Planned but Unavailable Service
Sanctioned
Posts
Currently
available
Position
Status of HR
CTM, TM, AE
1st class officer
13
3
AO, Sub AE, PO 2nd class oficer
14
10
Sr. Tech, Tech
3rd class
46
35
4th class
21
15
94
63
Total
Vacant
10
4
11
6
31

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




1 acre land area
1 administrative building,
1 workshop
5 vehicles
1 full fledged inventory of spare parts
6 repair sections – electrical, electronics, Xray, optical, A/C, and mechanical refrigeration
1 training section with demonstration and
trainee accommodation facilities
Services
Gaps in Service Provision
Equipment Procurement
Assistance
• None
Equipment Commissioning
• Very limited installation services, only if the vendor does
not provide it
• No calibration services
Equipment Maintenance
Training
•
•
•
•
No preventive maintenance
Less than 30% of required corrective maintenance
Maintenance provided only for older equipment
No service is provided for latest and or highly technical
equipment
• Intermittent provision of services
• No service was provided in last few years
• Training depends on availability of fund from GOB or DPs

Technical Resource Pool: much smaller than required size (35
Technicians for over 700 GOB hospitals)
Lack of system for continuous Updating of Technical Knowledge
 Rigid structure barring demand driven changes in service
provision;
 Human resources structure not revised despite increased
demand of electro medical equipment maintenance services;
 No Management Autonomy allowing self-generation of revenue
to supplement the budget or any incentives to do so;
 Budget allocation not in pace with increasing demand for
maintenance services;


Currently the private electro medical equipment
industry in Bangladesh is not ready to takeover
the functions of NEMEMW&TC
REASONS

Performance Perspective of Electro Medical Equipment
Suppliers :
 do not have large enough inventory of equipment and spare
parts to cover all GOB health care facilities
 Human resource pool is not large enough to serve all the service
recipients
 Technical skills not diversified enough to maintain equipment of
all companies and country of origin

Risk Perspective
 Volatile nature of industry, no policy for electro medical
equipment business, no association or business member
organization to regulate service provider’s business behavior,
no apparent exit barrier
 Limited investment from the suppliers, no workshop or
infrastructure setup, limited investment, dependency on
mother company for spare parts and equipment replacement
 Existing technical human resources of NEMEMW&TC will not
be able to reinstate in other departments within ministry,
private service providers do not have the capacity to consume
the entire technical human resources pool, potential risk of
employee unrest

Cost Perspective
 Existing spare parts and equipment inventory is suitable only
for older equipment installed in GOB health facilities, and
hence would not be possible to sell, resulting wastage
 Existing technical human resources are required to be
compensated in return of cash, as it is not possible to
reinstate them within ministry
 Service charge from Private service providers will be high,
resulting additional cost involvement for CMSD

As a public corporation, the organization can:
 Grow more flexibly based on business needs and growth plans
prioritizing service provision:
▪ can hire HR based on skill needs;
▪ purchase demand based equipment and spare parts;
 Provide quality services: respond to service request at the




quickest time and at lower cost through revitalization of
DEMEWs;
Generate own revenue;
Relate performance with finance, motivating the employees to
perform and enhance satisfaction
Maintain impartiality in providing services to public medical
facilities through CMSD;
Greater accountability as the corporation will be responsible for
its profit and loss;
Advisory
Commissioning
Maintenance
Consultancy
Training and
Technical
Assistance
Technical
Specification
Development
Calibration
Preventive
Maintenance
Facility Layout
Training
Technical
Evaluation of
Procurement
Bid
Installation
Corrective
Maintenance
Equipment
Planning
Workshop
Facility Rental
Inspection of
Equipment
Quality for
Goodness of Fit
Technical
Educational
Institutes
Training &
Technical
Assistance
Private
Hospitals,
Clinics, Medical
Colleges
Advocacy
CMSD
Medical Education
and Research
Institutes
NEMEMW&TC
Installation
Consultancy
Maintenance
Govt. Hospitals
Govt. Upazila
Health Centers
DEMEW
Service Provision
Service Charge
Payment

Conduct survey for electro medical engineering services both
in public and private sectors to identify –
 Specific areas of service demand and extent of service
requirements in each area;
 Potential clients segregated into public and private sectors;
 Estimated cost of the service provision;
 Service charge that the potential customers think feasible enough

Develop Business Plan based on survey findings including:
 Services to be provided;
 Service delivery modality;
 Revenue Generation Plan;
Determining Service charge;
Cost analysis for service delivery;

Develop an Organizational Plan incorporating –
 specific structure for board of directors; Executive
management and implementation level;
 staffing plan in line with market demands and
revenue target of the company.
 This should also include specific salary, allowances
and other benefits of the staffs to ensure required
employee satisfaction
 Legal issues associated with the restructuring
including risks, and mitigation measures for those
To ensure regular maintenance and mobility of
vehicles under MOHFW health facilities
 Service Mandate –

 Technical Assistance to CMSD
 Maintenance, both preventive and corrective, of vehicles
of MOHFW in and outskirts of Dhaka
Workshop Manager (1)
Sub-Asst. Engineer (1)
Store Officer (1)
Store man Tech (2)
Clerk/Typist (2)
Peon (3)
Sr. Mechanic (5)
Sr. Electrician (1)
Jr. Mechanic (13)
Jr. Electrician (3)
Cleaner (12)
Accountant (1)
Administrative officer
(2)
Chief Guard (1)
Cleaner (2)
Driver (6)
Guard (8)
Driver cum Mechanic
(3)
Wielder (2)
Body repairer (3)
Painter (3)

Technical Assistance to CMSD
 Provide Technical Specification for vehicles to be procured
 Assist in bidding evaluation
 Inspection of supplied vehicles against quoted specification

Maintenance services in the following areas:
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Power transmission and Auto-electrical,
Engine troubleshooting,
Engine overhauling,
Chassis related functions
wheel alignment and related services.
Body Works
1 Acre of Land Area
1 Administrative Building
1 Workshop Shed with required equipment to
maintain vehicles
 1 Store room, 1 guard room, 1 dinning room and 1
parking shed
 3 Vehicles
 Six functioning sections - Power transmission and
Auto-electrical; Engine troubleshooting; Engine
overhauling; Chassis related functions; wheel
alignment and related services; and Body Shop



Satisfactory service delivery to CMSD
Less than 20% of required preventive service provided to
the MOHFW vehicles within and outskirts of Dhaka
 Less than 50% of required corrective maintenance
services provided to the aforementioned vehicles
 Lengthy process in availing required services
 Troublesome service reception for the recipients since
there is only one workshop and located in Mohakhali,
which is rather inconvenient for many health facilities
even in Dhaka


Inadequate technical persons (only 47 with only 8 senior
technicians) to provide maintenance services for all the
vehicles under MOHFW and its implementing agencies
within and outskirts of Dhaka
 Large number of non-technical persons (28) resulting in
high overhead cost
 Rigid structure barring demand driven change in service
provision and incorporation of human resources with
updated knowledge to provide better services
 Centralized service provision from the workshop in
Mohakhali, a place which is inconvenient for most of the
health care facilities in Dhaka and the outskirts;


Operationally it is feasible but it
will not increase performance to a
large extent
No competitive advantage over private service
providers in terms of variation and efficiency of
service provision
 No special service offer to attract private vehicles
and increase revenue
 Service provision will still continue from a central
location, with existing problems of inconvenience for
vehicles to avail services
 Maintenance capacity will not be increased to a
significant level, the structure would not be able to
provide services to a large number of vehicles,
revenue generation will not be enough to sustain
itself, reliance on government funds or DPs


Majority of the functions
can be outsourced from
Private Service Providers


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Private vehicle maintenance sector is well established
and equipped with over 25,000 maintenance facilities
throughout the country; 5,000 in Dhaka;
Larger facilities have huge investments averaging BDT
400 million and capacity to assemble vehicles;
Even smaller ones have capacity to provide regular
maintenance services for all types of vehicles
Strong association of service providers regulate business
behavior;
Minimum Risk of service discontinuity;
MOHFW vehicles outside Dhaka are already availing
services from private providers;

Providing technical assistance to CMSD in :
 Developing procurement specifications
 Evaluating technical bids
 Ensuring quality of the supplied vehicle as per the
specification
MOHFW
Ministry Pays
TEMO Staffs
Reporting
Monitoring
TEMO
(Smaller Structure, Mostly
Technical People, 7-8
Positions)
Technical
Assistance
CMSD
CMSD Pays
for Services
A Pool of Private
Service Providers
(Located in and outskirt of
Dhaka)
Vehicle Maintenance
Services
Vehicles under
Government Health
Facilities within and
outskirts of Dhaka

Option 1:
 Placing existing technical resources to Central Vehicle Maintenance
workshop under the Directorate of Government Transport
 Placing non-technical personnel in different departments of the
ministry
 Selling infrastructure, inventory and other physical resources

Option 2:
 Convert TEMO into an employee cooperate led entity
 Handing over physical infrastructure to the cooperative
 Cooperative to operate as independent vehicle maintenance entity like
the private service providers

Option 3:
 Releasing employees -“Golden Handshake” scheme
 Allocating physical infrastructure and other resources in dispense of
other agencies under the ministry
Thank You