Danida Fellowship Centre (DFC) COWI A/S Private Sector Development Training Parallelvej 2 DK-2800 Kongens Lyngby Denmark Preliminary Course Planning: SMEs within Productive Industries and Services Tel +45 45 97 22 11 Fax +45 45 97 22 12 www.cowi.com Table of Contents 1 Introduction 1 2 Objectives of the training course 2 3 Target group 2 4 Approach 2 5 Course outline 4 6 Venue and Facilities 8 7 Staffing 8 1 Introduction In response to DFC's plan to offer training courses in private sector development in 2008, DFC called for COWI to present a capability statement including ideas for potential topics (April 2008). On the basis of the capability statement, Danish embassies reported their priorities in relation to topics for the training courses (May 2008). COWI has been asked to plan a training course within the topic of "SMEs within Productive Industries and Services." According to the Danida strategy for the promotion of trade, growth and development, Danish assistance is seen to revolve around two pillars, namely economic growth and enhanced social development. The SME sector is seen as an important part of the national economy in developing countries. It is important to support the framework conditions for private sector development and SME development in order to make business conduct profitable while it is also important to improve the internal performance of SMEs by strengthening their knowledge and skills within business management and development and market orientation. The competitiveness of SMEs within productive industries and services is highly dependent on their ability to produce good quality products with minimal defects, optimised costs and to deliver on time. The implementation in the company of a lean manufacturing culture will assist the company into achieving such goals. This document presents preliminary thoughts on the training course on "SMEs within Productive Industries and Services" in relation to objectives, target group, approach, course contents and modules, logistics and staffing. D:\106737073.doc Private Sector Development Training 2 2/8 Objectives of the training course The overall objective of the training course is to build the capacity of SMEs in managing production processes and plan their business and market activities. The objectives of the training course can be divided into two: 1) enhancing the performance of the SME through strategic business management; 2) improving production management. The first objective is to introduce the participants to comprehensive SME training in strategic business management, change management, human resource development, and the principles and tools of market analysis and marketing. The second objective is to improve the participants' understanding of how to manage their production through value chain management, quality management and cost reductions (financial management tools). 3 Target group The overall target group of the training course is private sector actors within the SME sector. These may include: Business owners and entrepreneurs Senior management and specialists supporting strategic, financial and production management Representatives from SME associations SMEs that operate within productive industries and services are diverse and may cater for local, regional as well as/or international markets. The market orientation is, however, not the main focus of this course but rather participants should be interested in improving the management of their production processes. As mentioned in the capability statement, we strongly suggest that participants be selected from existing business cooperation initiatives (e.g. B2B, PPP) and/or BSPS programmes to the extent possible. This ensures that a certain degree of pre-selection has taken place in relation to legal compliance in the country of origin as well as a certain degree of interest in improving business performance and maintaining or developing relations with the Danish market. We propose that the criteria for selection of participants include consideration of company size and sector and we would prefer to be involved in the selection of participants. 4 Approach Training methods. Throughout the training course, various training methods will be applied including participatory approaches, teacher centred training, cases and best practice material and examples. The course will introduce the participants to methods, approaches and tools that participants will be asked to D:\106737073.doc . Private Sector Development Training 3/8 apply in problem-solving situations through discussions, group work and individual planning sessions in relation to development of business plans. Cases. Participants will be exposed to Danish and European examples but we shall at the same time strive to use cases and examples from the participants' countries of origin in order to ensure that the training is made relevant to the contextual background of the participants. Individual business plan. We propose to develop the course in a very practical way in order to provide the participants with an opportunity for experiencing management principles put into practice, e.g by focusing the training of actual problems of performance in the participants' own organisations. Participants will be asked to develop/improve their own company business plan or strategic plan by using the tools and methods presented during the course. A number of business plan development sessions coached by experienced facilitators will be included in the programme. Excursions. The training programme will include some carefully selected excursions to organisations and businesses of high relevance to the participants. The exposure to 'real-life' aims to ensure practical learning aspects. Visits to relevant trade fairs may also be included1. Practical visits. If feasible, we suggest that participants that already participate in business cooperation initiatives under the Danida B2B or PPP programmes will spend 2 days visiting their respective Danish partners at the end of the programme. The participant and the Danish partner will be responsible for developing individual programmes for the visit and will be encouraged to discuss the business plan/strategic plan developed during the training course. Pre- and post-course activities .We propose that time is set aside for supporting course participants before and after their stay in Denmark in order to facilitate the most optimal learning process. This support could be made available through an e-learning facility set up by COWI (CoursePortal). 1 Before the course: We suggest that participants are guided to prepare themselves for the course by describing their company according to a number of set criteria, e.g. company mission, strengths and weaknesses in relation to production processes, and market position. These considerations will feed into the individual work with company business plans during the stay in Denmark. After the course: Upon return to their home countries, participants will be given the option to continue the dialogue with their facilitators on the actual implementation of their business plan through the CoursePortal. The CoursePortal will furthermore support continuous networking Foodpharmatech is an international trade fair for machinery, packaging and ingredients for the food and pharma industry. This is largely dominated by small and medium industries, catering, mainly for the domestic market. It takes place in Herning, Denmark, 11-13 November 2008. Agromek is an international trade fair for agricultural products and machinery held in Herning, Denmark, 25 - 29 November 2008. D:\106737073.doc . Private Sector Development Training 4/8 among participants and they will be encouraged to interact and share experiences after the end of the course. 5 Course outline The table presented on the following pages presents our proposed course outline. The outline should not be perceived as a full course programme, but merely as a reflection of the intended overall contents of the course. The detailed course curriculum will be developed upon having received information regarding the needs, interests and responsibilities of the course participants as described in their application forms to DFC. Learning material for the different modules will likewise be developed and selected during detailed course planning. The course management may decide to pay more attention to one of the immediate objectives of the training course in the development of the detailed course curriculum rather than equal attention to both of them, depending on the background and interests of participants and the experience within production management. In this connection, it may also be deemed relevant to merge or omit certain modules while putting more emphasis on others. We propose to allocate 2½ weeks for the course in view of the type of participants expected for this course. It is unlikely that managers/decision-makers from private sector entities will be able to leave their positions for periods longer than a couple of weeks. We propose that the first 2 weeks will consist of actual training at the premises of COWI. The remaining 2-3 days will be set aside for practical visits to Danish partner companies. These practical visits will have to be arranged by the participants themselves in cooperation with their partner company, i.e. COWI will not be involved in this part of the stay. D:\106737073.doc . Contents/ Activity Facilitator No. of Sessions Module A-1 DFC 1 COWI 1 COWI 1 COWI 2 COWI 1 COWI 1 Introduction to DFC Module A-2 Course introduction, incl. teambuilding • • • • • • • Introduction to course programme and schedule, and facilitators Round table introduction: who are we? Clarification of expectations ('hopes and fears') Define and agree on success criteria and ground rules for the course Team building Practical information about study, study place and facilities Learning approaches Module B-1 Strategic Management and Leadership • • • What is strategic planning and management Why is strategic planning necessary (to cope with business risks, to make decisions etc.) How to develop and implement a business plan or a strategic plan? (measure and plan based on realities, simulating the decision options etc.) Module B-2 Monitoring and improving business performance • • • • • • • Defining business targets Performance planning and monitoring Tools for business performance appraisal Linkages between performance measurement systems and strategies Key performance indicators Enterprise benchmarking Exercise: define business targets Module C-1 Building capacity through Change Management • • • • • • What is change management and why is it important? Manage change as a process Identifying responses to change Planning a change intervention Steps in implementing a change intervention Exercise: imagine and plan a change intervention in your company according to the major steps of a change process Module C-2 Human Resources Development to increase the performance of an SME • • • • • • • • D:\106737073.doc Human resource planning Motivation and team work Career and staff development Skills training and development Organisational development Organisational culture Gender aspects Case: human resource planning in a SME Private Sector Development Training 6/8 Contents/ Activity Facilitator No. of Sessions Module D-1 COWI 1 COWI / External 3 COWI / External 2 COWI / External 2 COWI 1 COWI 3 Marketing and branding • • • • • • Market analysis Developing a marketing plan Marketing research Creating a marketing strategy Brand management - product differentiation Exercise: how to marketing your specific product? Module E-1 Value chain management - a value-adding process • • • • • • Value chain analysis Mapping of sectors and chains Design of interventions for value chain development Measuring value-chain effectiveness Supplier management SME clusters and partnerships Module E-2 Production management and performance • • • • • • Production planning and simulations Which manufacturing operations add value? How to improve product and production performance? How to measure and prepare major decisions regarding changes in production and introduction of innovations to adapt to requirements of change? Lean production Relation between lean manufacturing and production performance measurement Module E-3 Managing costs in production • • • Performance/Efficiency in production: terminology, calculation of measures based on actual data Costs: ex-factory cost, calculation of standard labour hours and cost, cost data entry Labor performance: its calculation, data collection, use of factory floor control sheets Module E-4 Quality Management in production • • • Total quality management Quality and standards improving process organisation Quality data Module F Developing Individual Business Plan/Strategic Plan Participants should start developing a business plan already before departure for the training course, considering main points of concern in their business. A number of plenary sessions supported by coaching in smaller groups will assist participants in developing and/or sharpening their business plan. Presentation and feed back including possible networking arrangements with fellow participants. D:\106737073.doc . Private Sector Development Training Contents/ Activity Module G 7/8 Facilitator No. of Sessions 2 Exposure / Excursions A number of excursions to relevant businesses and/or organisations will be planned, e.g.: • Ministry of Foreign Affairs: Danida business related initiatives and programmes • Danish Import Promotion Programme • Danish Federation of Small and Medium-Sized Entreprises (DFSME) • Danisco Module H 4 Exposure / Practical visits If feasible, practical visits to Danish partner companies will be arranged. The Danish companies will be responsible for setting up individual programmes. D:\106737073.doc . 6 Venue and Facilities Training activities will be conducted at COWI's Head Office in Lyngby where a maximum of 20 course participants can be accommodated. Computer and Internet facilities will be available for the participants at the premises of COWI during the course period. 7 Staffing The point of contact for DFC will be the Course Management, whose main tasks and responsibilities will include, but not be limited to overall planning of the course, liaison with DFC, contact with participants prior to the course start and coordination of trainers and facilitators before, during and after (follow-up) the course. For the Course Manager, we propose Mr Peter Mallow. Furthermore, an Assistant Course Manager will be identified among the below mentioned key staff members. Upon award of the contract we will establish a course curriculum development group consisting of the course manager and main course facilitators. In the following we present the names of key staff members of the training course. They will act as course managers, trainers and facilitators and some may take on more than one of these responsibilities during the course. Pls. refer to the capability statement from April 2008 for detailed profile descriptions: Peter Mallow (Course Manager) Nicolas Gebara Jørgensen Kimiko Ishida Pedersen Mikkel Klim Zita Rye Hedeby Carsten Glenting Mikkel Rye Christensen For selected topics we intend to draw on external trainers with specific knowledge and competences. D:\106737073.doc