CLUSTER DEVELOPMENT INITIATIVE READYMADE GARMENTS … · most of the SMEs of this cluster could not transform into productive / lean enterprises to cope with this challenge. Therefore,

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CLUSTER DEVELOPMENT INITIATIVE – READYMADE GARMENTS CLUSTER TERMS OF REFERENCE

HIRE OF INDIVIDUAL CONSULTANTS FOR SHORT CONSULTANCY ON PRODUCTIVITY

IMPROVEMENT IN READYMADE GARMENTS CLUSTER OF LAHORE

1. INTRODUCTION

The Government of Punjab has adopted the “Punjab Growth Strategy” which incorporates target

of an annual 8% GDP growth within the Province. The Industrial Sector Development Plan, an

element of the Growth Strategy, is oriented to increase private sector investment, thereby

increasing job creation and exports. As part of the development plan, the Government has

introduced Cluster Development Initiative (CDI) to support the growth and competitiveness of

key manufacturing clusters in particular through Punjab Small Industries Corporation (PSIC). This

initiative is part of a larger cooperation on “Jobs and Competitiveness” programme with the

World Bank.

In the framework of the Punjab Jobs and Competitiveness Programme, the Government of

Punjab has signed a cooperation agreement with United Nations Industrial Development

Organization (UNIDO) to provide technical assistance for the development of industrial clusters

in Punjab province and to support their further integration into global value chains.

A strong cluster support system would require joint efforts for the development process including

public and the private sector in order to help upgrade management, technology and skills and

provide help to firms in networking with each other and accessing new markets. The purpose of

Cluster Development Initiative (CDI) is therefore to create an enabling environment for growth

and prosperity of industries, to create better quality of life through economic uplift in Punjab and

to up-grade technology and enhance productivity quality and profitability of local industries.

2. OVER ALL GOALS & OBJECTIVES

The key objectives of the CDI are:

Driving productivity and competitiveness improvements through key established Punjab

export focused SME manufacturing clusters.

Building the support infrastructure that underpins collaborative and strategic industry

activity.

To address the comparative shortcomings i.e. costly factors of production, quality and

delivery inefficiencies, lack of demand driven export strategies.

The CDI approach combines strategic analysis with cluster change management tools and, in

some cases, funding for implementation of specific interventions. These specific interventions

called as CRIs are packages that are based on the selection of clusters within priority sectors and

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areas within their operations which exhibit high potential for improvement and / or growth and

incorporate plans for working with the firms involved to deliver these outcomes.

Textile being the largest industrial sector contributes to around 58% of the country’s exports,

providing employment to 40% of the skilled and semi-skilled workers. It contributes 5.28% to

GDP and consumes about 40% of banking credit to manufacturing sector. The main focus of

Pakistan’s exports has been on three major markets; European Union especially Germany, United

Kingdom, Spain and USA.

Within the textile sector, Readymade Garments is one of the largest sub-sectors with 22.43%

share in total exports from Pakistan. This significant share has been on the rise, both in terms of

quantity and value in the recent years. A comprehensive diagnostic study was carried out by the

CDI team under the supervision of UNIDO’s national and Int’l experts to address the challenges

that hinder the growth of readymade garments cluster in Lahore. The diagnostic study

highlighted, inter alia, lower productivity as a key challenge for the cluster companies. One of the

major reasons impacting the labor productivity growth rate is that the manufacturing paradigm

has shifted from mass production to low volume-high variety products and lately into the mass

customization. This scenario on part of the organizations requires agility and flexibility in order

to satisfy the customers through better quality, on time delivery and lower prices. However,

most of the SMEs of this cluster could not transform into productive / lean enterprises to cope

with this challenge. Therefore, the readymade garments cluster has been considered below par

in terms of cost competitiveness in the global market.

2.1 Specific Objective

The objective of the CRI is to develop the capacity of 10 – 12 manufacturers / companies in

readymade garments cluster of Lahore for on time supplies of high quality and cost competitive

products to the international buyers through application of latest knowledge and skills related to

production / productivity management, quality management, supply chain management and

value engineering / value analysis (cost and time of production to be decreased). In addition, the

CRI will strengthen the linkages and be instrumental in trust building among the industry,

academia, and relevant government institutions.

2.2 Scope of Services

The consultant will be responsible to plan, design and implement the lean manufacturing

practices and industrial engineering principles / techniques in selected beneficiary companies /

factories of readymade garments cluster, Lahore with the mandate to improve their process and

labor productivity. During the implementation at the company level, major objective is to help

companies turn implicit unmanageable practices into explicit manageable practices.

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2.2.1 Implementation of Productivity Improvement Tools & Techniques at Factory /

Company level

The implementation of productivity improvement work plan at factory / company level will be

carried out by undertaking quantitative measurements of the current state of affairs (base line)

in production and quality related operations of the respective companies such as production

cycle times, changeover time, lead times, Work in Process (WIP) inventories, layout redesigning,

worker productivity, quality levels, etc. The consultants will further develop the baseline values

of these aspects referred to as Key Performance Indicators (KPIs). Through education and

implementation of lean and TQM approaches, meaningful improvements are expected to be

realised. Following is the list of deliverables under this:

Productivity improvement work implementation at selected companies

Description Objectives

Kick off meeting with factory management on

work plan

Management briefed on the work

plan to be executed

Following KPIs to be assessed for the model

production area (additional KPIs may also be

included):

1. Material travel distance

2. No. of workers

3. Production per day

4. Labor productivity

5. Work in Progress(WIP)

6. Lead time

7. Line balancing efficiency

8. Quality defect rate

9. Quality rejection rate

10. 5S

The initial values of these KPIs

calculated along with reporting

formats developed

Interim presentation to factory management and

CDI

Consolidated presentation for each

factory prepared and presented

Improvement plan along with target setting for

the identified KPIs

Improvement plan developed and

KPIs targets set

Minimum following improvement values to be

achieved for the identified KPIs:

The initial values of these KPIs

calculated along with reporting

formats developed

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The scope of services to be undertaken are as follow:

Training of factory teams on productivity improvement tools

Baseline assessment

Selection of model area / identification of bottleneck areas

Productivity improvement baseline study and development of baseline values to be

worked as KPIs

Interim presentation to factory management on baseline study, KPIs and finalization

of productivity improvement work plan

Implementation of lean production tools and techniques in companies

Before – after comparison of the productivity gains

2.2.2 Training of cluster entrepreneurs on change management

The productivity improvement initiative requires a sustained top management commitment not

only for the duration of the project, but also after completion of the project. There is a normal

tendency on the part of factory owners to remain isolated from the ground floor activities,

thereby resulting in a gradual decrease in their commitment level negatively impacting

successful completion of the project. One of the major reasons for this lack of commitment is

that the factory owners are not fully engaged and trained on the modern management

approaches. As a result, they lack the capacity to perceive the importance of their management

style, presence of performance management systems, employee involvement and organizational

transformation paradigms.

Therefore, the consultant will provide training to the factory owners on the change management

concepts. The trainings imparted to the factory owners in parallel to the productivity

improvement activities at the shop floor is likely to increase the impact of the CRI. The consultant

is to ensure that the quality of training material is at par with the expectations of the audience.

In this connection, following are the deliverables of this sub-output:

Training of Cluster Entrepreneurs on Change Management

Description Unit

Training plan for cluster entrepreneurs

on change management aspects

Training and development plan prepared and

approved by CDI

Number of Change Management

Trainings held for Cluster Companies

3-5 trainings, 10 to 15 factory management

personnel participated in the workshops

Note: For all the activities mentioned in the TOR document and to be undertaken, the consultant

must focus on resource optimization and utilization (technology, human resource, financial and

others) as his / her top most priority in order to achieve the deliverables and KPIs as mentioned

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in the TORs. Focus should be on making the most of the existing technology and human resource

available in the factory / company to achieve the goals / KPIs.

2.3 Principal Duties & Responsibilities of Consultant:

Under this consultancy, the consultant will perform all of the tasks and activities,

either clearly mentioned in this document or implied.

The consultant will undertake the primary and secondary research including reviewing

of the project documents to identify the project’s objectives, implementation

modalities, development model followed; and interventions initiated by the project.

The consultant will meet the respective team members of CDI, project beneficiaries

and various stakeholders of the cluster, as and when suggested by the Project Director

/Cluster Manager (CDI).

The consultant will visit beneficiary units, as per monthly plan prepared in consensus

with the CDI team and the beneficiary units’ in-order to execute all steps of

implementation of lean manufacturing.

The consultant will undertake all tasks mentioned in these TORs for completion of

deliverables and successful implementation of lean manufacturing systems in

designated factories.

The consultant will design and implement the project work plan with the support and

assistance of CDI team.

The consultant will develop the documents related to lean manufacturing and submit

the deliverables on the format / template provided by CDI.

2.4 Specific Tasks of the Consultant:

The consultant will perform the following activities to accomplish the project objectives:

Analyze and evaluate the current manufacturing systems of selected manufacturing

units along with all processes and operations to chalk out the gaps therein.

Short reports for each manufacturing unit, encompassing analysis and evaluation of

current manufacturing system / practices and gaps with respect to process and labor

productivity and wastage reduction. Moreover, the report should provide the way

forward, a strategy and action plan for the implementation of lean manufacturing

system and industrial engineering principles.

Regularly visit designated manufacturing units as per a given schedule to provide

technical assistance for the improvement of process productivity in accordance with

the analysis and action plan and submit a monthly progress report of each

manufacturing unit.

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In each company / factory, perform all essential activities for the implementation of

lean manufacturing and industrial engineering including but are not limited by

developing cross functional lean teams, value stream mapping (where ever

necessary), setting key performance indicators, changes in workshop layout,

streamlining material/inventory and information flow, 5S, kaizen, one piece flow

(where ever applicable), process stabilization and various tools of productivity

improvement. Resource optimization and utilization must be kept as top priority to

achieve the goals and implement these activities.

Impart in-house awareness, orientation and training sessions for employees and

management of each unit, required for effective implementation of lean

manufacturing system to improve labor and process productivity and to reduce

wastage.

Develop posters, pamphlets and other informative / training material required for

information and implementation of the said systems for the workers and

management.

2.5 KPIs for Productivity Improvement:

Following KPIs to be assessed for the production area among other KPIs:

Sr. No. KPIs Min Improvement Requirements

1. Material Travel Distance Min 10% reduction in travel distance

2. Production per day Min 10% increase

3. Labor Productivity Min 5% increase

4. Work in Progress (WIP) 10% optimization

5. Production Lead Time Min 10% improvement

6. Line Balancing Efficiency Min 10% increase

7. Quality Defect Rate Min 5% decrease

8. Quality Rejection Rate Less than 3%

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9. 5S

Factory zoning, Zone teams, Reward

system, 5S reporting, suggestion system

etc.

The above mentioned improvement requirements are dependent on base line study. Minimum improvement requirements may differ from company to company and will depend on the finalization of productivity improvement work plan with company management. KPIs may further be included or excluded with the consent of CDI team and company management depending on the on ground situation at company premises. The terminology minimum stands for minimum improvement from the existing status of the KPIs of production of model area of selected company e.g. quality defect rate will be improved as a minimum to 5% from the existing status as calculated in the baseline study.

Note: The above mentioned KPIs for productivity improvement must be achieved through focus

on resource optimization and utilization (technology, human resource, financial and others).

Focus should be on making the most of existing machinery and human resource available in the

factory / company to achieve the goals / KPIs.

3. REPORTS

3.1 Inception Report

Inception report will cover the timelines and deliverables, including understanding

of the task and scope, methodology, approach and steps for carrying out tasks

mentioned in the scope of services.

3.2 Reports

The consultant will submit reports on completion of following activities:

Productivity improvement baseline study, development of baseline values to be

worked as KPIs and finalization of productivity improvement work plan with

companies.

After implementation of lean production tools and techniques in companies.

Before and after comparison.

Training of cluster entrepreneurs on change management.

3.3 Final Report

Final report will cover all the activities and works as mentioned in the scope of work

including final presentation to company and CDI, results achieved in terms of KPIs

improvement and pictures showing before – after comparison and draft reports. This will

be submitted after incorporation of comments / suggestions from the stakeholders.

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The reports will be given for each company / manufacturer separately. In addition to the above

mentioned reports, the consultant will deliver the following documentation as evidence of the

activities and data as per the data collection formats, mutually agreed between the consultancy

firm and CDI:

The consultant will provide a monthly progress report for each factory covering the

following aspects:

o Weekly activity plan

o Training conducted at factory level

o Status of the KPIs

o Issues encountered during implementation and measures taken

o Data collected may be annexed

3-5 change management workshops:

o Training and development plan

o Training material.

5S factory zoning, zone teams, 5S champion team, audit sheets, checklists and reports.

5S before-after pictures.

Comprehensive final report of the productivity improvement CRI for each factory

Comprehensive final report of the CRI for the cluster

4. DELIVERABLES

The consultant shall principally report to the Project Director, CDI and will also work closely with

Readymade Garments Cluster team as well as with other stakeholders of CDI and Readymade

Garments Cluster to produce the following deliverables:

Inception report containing timelines and deliverables, including understanding of the

task and scope, methodology, approach and steps for carrying out tasks mentioned in

the scope of services. (Deliverable 1)

Productivity improvement baseline study, development of baseline values to be


companies. (Deliverable 2)

Implementation of lean production tools and techniques in companies. (Deliverable

3)

Training of cluster entrepreneurs on change management. (Deliverable 4)

Final report will cover before and after comparison with minimum criteria of KPIs

achieved (with evidence), all the activities and works as mentioned in the scope of

work and other reports including final presentation to the stakeholders. This will be

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submitted to Project Director, CDI after incorporation of comments / suggestions

from the stakeholders. (Deliverable 5)

5. PAYMENT SCHEDULE

Payment will be on the basis of milestones / deliverables as listed in the table below:

Sr. No. Milestones / Deliverables Payment

Percentage

1.

Inception report containing timelines and deliverables, including

understanding of the task and scope, methodology, approach and steps

for carrying out tasks mentioned in the scope of services.

10%

2.

Productivity improvement baseline study, development of baseline

values to be worked as KPIs and finalization of productivity

improvement work plan with companies

20%

3. Implementation of lean production tools and techniques in companies. 25%

4. Training of cluster entrepreneurs on change management. 15%

5.

Final report will cover before and after comparison with minimum

criteria of KPIs achieved (with evidence), all the activities and works as

mentioned in the scope of work and other reports including final

presentation to the stakeholders. This will be submitted to Project

Director, CDI after incorporation of comments / suggestions from the

stakeholders. Presentations will also be made to the stakeholders on

completion of the intervention.

30%

6. REQUIRED EDUCATION, SKILLS & EXPERIENCE

Education:

Bachelors degree in Engineering / Masters in Business Administration / Business

Management or Development field.

Experience:

Minimum 5 years of experience in industrial engineering, lean production and total

quality management in manufacturing sector.

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Strong working experience in the production culture in the small and medium sized

enterprises preferably in readymade garments sector.

Skills

Ability to develop success stories related to productivity improvement in SMEs based on

past projects.

Ability to mentor SME teams on productivity improvement tools.

Strong analytical skills in identifying the prevailing productivity related bottlenecks and

development of pragmatic solutions.

Demonstrated capacity to work independently in labour intensive environment.

Adequate computer skills for data collection, analysis, presentation, and report writing

using various computer software.

7. REPORTING

The consultant will report to Project Director, CDI and obtain guidance / approvals.

The consultant will work in close coordination with CDI team, PSIC, ICI&SDD and other

stakeholders.

8. DURATION OF ASSIGNMENT

The individual consultant will be hired to undertake the above mentioned tasks in 2 – 3 factories

/ companies in Lahore over the period of maximum 6 months. The total input is maximum 100

consultant / man days spread over a period of maximum 6 months.

PSIC reserves the right to accept or reject the proposals as per PPRA Rules.

*******

1

CLUSTER DEVELOPMENT INITIATIVE – LEATHER FOOTWEAR

CLUSTER

TERMS OF REFERENCE

HIRE OF INDIVIDUAL CONSULTANTS FOR SHORT CONSULTANCY ON

PRODUCTIVITY IMPROVEMENT IN LEATHER FOOTWEAR CLUSTER OF

LAHORE

1. INTRODUCTION

Government of the Punjab adopted the “Punjab Growth Strategy” which incorporates target of an

annual 8% GDP growth within the Province. The Industrial Sector Development Plan, an




key manufacturing clusters in particular through Punjab Small Industries Corporation (PSIC).

This initiative is part of a larger cooperation on “Jobs and Competitiveness” programme with the

World Bank.



Organization (UNIDO) to provide technical assistance for the development of industrial clusters

in Punjab province and to support their further integration into global value chains.

A strong cluster support system would require joint efforts for the development process

including public and the private sector in order to help upgrade management, technology and

skills and provide help to firms in networking with each other and accessing new markets. The

purpose of Cluster Development Initiative (CDI) is therefore to create an enabling environment

for growth and prosperity of industries, to create better quality of life through economic uplift in

Punjab and to up-grade technology and enhance productivity quality and profitability of local

industries.

2. OVERALL GOALS, OBJECTIVES & CONSULTANT’s RESPONSIBILITIES


Driving productivity and competitiveness improvements through key established Punjab


Building the support infrastructure that underpins collaborative and strategic industry

activity.

To address the comparative shortcomings i.e. costly factors of production, quality and


In view of the diagnostic study carried out for the Leather Footwear & Products Lahore cluster

multiple challenges curtailing growth of this cluster have been identified. Among others, lower

productivity level in the cluster is one of the key challenges requiring urgent attention on part of

2

all the relevant stakeholders including industry, government and academia. Overall, Pakistan’s

labor productivity growth rate is feeble, averaging 1.25% for the period 2009 to 2013 as

compared to China’s 8.11% and India’s 6% for the same period.

One of the major reasons impacting the labor productivity growth rate is that the manufacturing

paradigm has shifted from mass production to low volume-high variety products and lately into

the mass customization. This scenario on part of the organizations requires agility and flexibility

in order to satisfy the customers through better quality, on time delivery and lower prices.

However, most of the SMEs of this cluster could not transform into productive/lean enterprises

to cope up with this challenge and remained confined to conventional products without

substantial innovations in core products and processes.

The overall objective of the CRI is to develop the capacity of footwear cluster manufacturers for

on time supplies of high quality and low-price products to the international buyers through

application of latest knowledge and skills related to production/productivity management, quality

management and supply chain management. In addition, the CRI will strengthen the linkages and

instrumental in trust building among the industry, academia, and relevant government

institutions. On the organizational level, productivity can be improved through implementation

of latest management approaches such as Total Quality Management (TQM) and Lean

manufacturing. This CRI will address the organizational productivity challenge being faced by

the Leather Footwear& Products cluster companies.

2.1 Specific Objective:

To work with 10-12 signatory Leather footwear cluster manufacturing units of Lahore, to

improve their processes, operations and productivity by implementing value engineering &

analysis, lean manufacturing models, industrial engineering principles and good manufacturing

practices.


a) Under this consultancy, the consultant will perform all of the tasks and activities given in

section 2.3 and 2.4, either clearly mentioned in this document or implied.

b) The consultant will undertake the primary and secondary research including reviewing the

project documents to identify the project’s objectives, implementation modalities,

development model followed; and interventions initiated by the project.

c) The consultant will meet the respective team members of CDI, project beneficiaries and

various stakeholders of the cluster, as and when suggested by the Project Director /Cluster

Manager (CDI).

d) The consultant will visit beneficiary units, as per the monthly plan, prepared in consensus

with the CDI team and the beneficiary units’ in-order to execute all the steps of

implementation of lean manufacturing.

3

e) The consultant will undertake all tasks given in section 2.3 for completion of deliverables

and successful implementation of lean manufacturing systems in designated units.

f) The consultant will design and implement the project workplan with the support and


g) The consultant will develop the documents related to lean manufacturing and submit the

deliverables on the format / template provided by CDI.

2.3 Specific Tasks of the Consultant


a) Analyze and evaluate the current manufacturing systems of selected manufacturing units

along with processes and operations to chalk out the gaps therein.

b) Short reports (two pages for each manufacturing unit), encompassing analysis and

evaluation of current manufacturing system/practices and gaps therein with respect to

process, space and labor productivity and wastage reduction. Moreover, the report should

provide the way forward, a strategy and action plan for the implementation of lean

manufacturing system and industrial engineering principles.

c) Regularly visit designated manufacturing units as per a given schedule to provide technical

assistance for the improvement of process productivity in accordance with the analysis and

action plan and submit a monthly progress report of each manufacturing unit.

d) In each unit, perform all essential activities for the implementation of lean manufacturing

and industrial engineering including, but not limited to, by developing cross functional lean

teams, Value Stream Mapping (Where ever necessary), setting key performance indicators,

changes in workshop layout, streamlining material/inventory and information flow, 5S,

Kaizen, one piece flow (where ever applicable), process stabilization, and various tools of

productivity improvement.

e) Impart in-house awareness, orientation and training sessions for employees and

management of each unit, required for effective implementation of lean manufacturing

system to improve labor and process productivity and to reduce wastage

f) Develop posters, pamphlets, and other informative/training material required for

information and implementation of the said systems for the workers and management.


The consultant will be responsible to plan, design, develop and implement the lean

manufacturing practices and industrial engineering principles in selected beneficiary units of

leather footwear cluster, Lahore with the mandate to improve their process and labor

productivity.

Productivity improvement work implementation at selected companies

Description Deliverable

Nomination of factory team Dedicated personnel from factory are engaged

Kick off meeting with factory management Management briefed on the workplan to be

4

on workplan executed

Following KPIs to be assessed for the model

production area:

1. Material travel distance

2. Number of workers

3. Production per day

4. Labor productivity

5. Work in Progress(WIP)

6. Lead time

7. Line balancing efficiency

8. Quality defect rate

9. Quality rejection rate

10. 5S

The initial values of these KPIs calculated along

with reporting formats developed

Interim presentation to factory management

and CDI

Consolidated presentation for each factory

prepared and presented

Improvement plan along with target setting

for the identified KPIs

Improvement plan developed and KPIs targets

set

Before-after comparison Final presentation including details of activties

carried out, results achieved in terms of KPIs

improvement, and pictures showing before-after

comparison. The presentation to be held at

factory premises in the presence of CDI team.

The scope of service to be undertaken is as follow:

a) Baseline assessment

b) Training of factory teams on productivity improvement tools.

c) Selection of model area / identification of bottleneck areas

d) Productivity improvement baseline study and development of baseline values to be worked

as KPIs

e) Interim presentation to factory management on baseline study, KPIs and finalization of

Productivity Improvement work plan

f) Implementation of identified solutions on lean production tools and techniques in companies

g) Before – after comparison of the productivity gains

Training of Cluster Entrepreneurs on Change Management

Training and Development of cluster entrepreneurs on Change Management

Description Unit

Training development plan for cluster entreprenuers on

change mangement aspects

Training and development

plan prepared and approved

by CDI

5

Number of Change Management Trainings held for Cluster

Companies

3-5, 10 to 15 factory

management personnel

participated in the workshops


Following KPIs, among others, to be assessed for the model production area:

a) Material travel distance

b) Production per day

c) Labor productivity

d) Work in Progress (WIP)

e) Lead time

f) Line balancing efficiency

g) Quality defect rate

h) Quality rejection rate

i) 5S

Sr. No KPI Range

1 Material travel distance Minimum 10% reduction in travel distance

2 Production per day Minimum 5%

3 Labor Productivity Minimum 5%

4 Work in Progress (WIP) Minimum 10% optimization

5 Lead Time Minimum 10% improvement

6 Line Balancing Efficiency Minimum 10% improvement

7 Quality Defect Rate Minimum 10% decrease

8 Quality rejection rate Less than 3%

9 5S Factory zoning, zone teams, reward system,

5S reporting, suggestion system

Note: The above mentioned minimum improvement requirements are dependent on baseline

study. Minimum improvement requirements may differ from company to comany and will

depend on finalization of Productivity improvement workplan with comapany management.

KPIs may further be included or excluded with the consent of CDI team and company

management, depending on the on ground situation at company premises. The terminology

minimum stands for minimum improvement of the existing status of the KPIs of production

6

of model area of selected companies for e.g quality defect rate will be improved as a

minimum to 10% decrease from existing status as calculated in the baseline study.

3 Reports:


Inception report will cover the timelines and deliverables, including understanding of the

task and scope, methodology, approach and steps for carrying out tasks mentioned in the

scope of services.

3.2 Other Reports

The consultant will submit other reports on completion of each of the following

activities:

a) Productivity improvement baseline study, development of baseline values to be


companies.

b) Implementation of lean production tools and techniques in companies,

c) Before and after comparison.

d) Training of cluster entrepreneurs on change management.

In addition to the deliverables mentioned, the consultant will deliver the following

documentation as evidence of the activities and data as per the data collection formats,

mutually agreed between the consultant and CDI:

i. The consultant will provide a monthly progress report for each factory covering

the following aspects:

• Weekly activity plan • Training conducted at factory level • Status of the KPIs • Issues encountered during implementation and measures taken • Data collected may be annexed

ii. 3-5 Change management workshops:

• Training and development plan • Training material.

iii. 5S factory zoning, zone teams, 5S champion team, audit sheets, checklists and

reports. 5S before-after pictures.

iv. Financial impact of the project on cost competitiveness of the beneficiary SMEs.

Note: The above mentioned KPIs for productivity improvement must be achieved through focus

on (HR, Financial, Technology and others. Focus must be on enhancing/ increasing the

productivity of companies with no or minimum additional cost and maximum utilization of

existing resources for higher productivity.

7

3.3 Final Report

Final report will cover all the activities and works as mentioned in the scope of work and reports.

This will be submitted after incorporation of comments / suggestions from the stakeholders.

4 DELIVERABLES:

The consultant shall principally report to the Project Director, CDI and will also work closely

with leather footwear Cluster team as well as with other stakeholders of CDI and leather

footwear Cluster to produce the following deliverables:

a) Inception report containing timelines and deliverables, including understanding of the task

and scope, methodology, approach and steps for carrying out tasks mentioned in the scope of

services. (Deliverable 1)

b) Productivity improvement baseline study, development of baseline values to be worked as

KPIs and finalization of productivity improvement work plan with the companies.

(Deliverable 2)

c) Implementation of lean production tools and techniques in companies, status of KPIs,

Training conducted at factory level, data collection formats introduced, Issues encountered

during implementation and measures taken, data collected should be annexed. (Deliverable

3)

d) Training of cluster entrepreneurs on change management. (Deliverable 4)

e) Final report will cover before and after comparison with minimum criteria of the KPIs

achieved (with evidence), details of all the activities and works carried out as mentioned in

the scope of work and other reports. This report will be submitted to Project Director, CDI

after incorporation of comments / suggestions from the stakeholders. Presentation will also

be made to the stakeholders on completion of the CRI. (Deliverable 5)

5 PAYMENT SCHEDULE

Payment will be on the basis of milestones / deliverables spread over three phases as listed in the

table below:

Sr.

No. Milestones / Deliverables

Payment

Percentage

a)

Inception report containing timelines and deliverables,

including understanding of the task and scope,

methodology, approach and steps for carrying out tasks

mentioned in the scope of services.

10%

b)

Productivity improvement baseline study, development of

baseline values to be worked as KPIs and finalization of

productivity improvement work plan with companies

20%

c)

Implementation of lean production tools and techniques in

companies, status of KPIs, Training conducted at factory

level, Data collection formats introduced, Issues

encountered during implementation and measures taken,

data collected should be annexed.

25%

8

Sr.


Payment

Percentage

d) Training of cluster entrepreneurs on change management. 15%

e)

Final report will cover before and after comparison with

minimum criteria of the KPIs achieved (with evidence),

details of all the activities and works carried out in earlier

deliverables and as mentioned in the scope of work and

draft reports. This report will be submitted to Project

Director, CDI after incorporation of comments / suggestions

from the stakeholders. Presentation will also be made to the

stakeholders on completion of the intervention.

30%

6 REQUIRED EDUCATION, SKILLS & EXPERIENCE

a) Bachelor degree in Engineering / Masters in Business Administration/ Business management

or Development Field.

b) At least five years of professional experience in industrial engineering, lean production and

total quality management in manufacturing sector.

c) Experience providing technical assistance to private sector for implementation of

productivity tools and lean manufacturing is essential.

d) Experience of conducting training sessions.

e) Good writing and communication skills in English

f) Strong working experience in the production culture in the small and medium sized

enterprises preferably in Footwear sector.

Skills:

a) Able to develop success stories related to productivity improvement in SMEs based on past

projects.

b) Able to mentor SME teams on productivity improvement tools.

c) Strong analytical skills in identifying the prevailing productivity related bottlenecks and


d) Demonstrated capacity to work independently in labour intensive environment.

e) Adequate computer skills for data collection, analysis, presentation, and report writing using

various computer software.

7 REPORTING:

a) The consultant will report to Project Director, CDI and obtain guidance / approvals.

b) The consultant will work in close coordination with CDI team, PSIC, ICI&SDD and other

stakeholders.

8 DURATION OF ASSIGNMENT:

The consultant will be hired for the above – mentioned task for the period of maximum 6

months. The total input is maximum 100 consultant / man days for 2 – 3 companies each, spread

over a period of 6 months.

ToRs for Hiring Individual Consultants for Productivity Improvement-Auto Parts Cluster, Lahore Page 1 of 7

CLUSTER DEVELOPMENT INITIATIVE

(AUTO PARTS CLUSTER)

TERMS OF REFERENCE

HIRING OF INDIVIDUAL CONSULTANTS FOR SHORT CONSULTANCY ON

PRODUCTIVITY IMPROVEMENT IN AUTO PARTS CLUSTER OF LAHORE

1. INTRODUCTION

Government of the Punjab adopted the “Punjab Growth Strategy” which incorporates target of

an annual 8% GDP growth within the Province. The Industrial Sector Development Plan, an




key manufacturing clusters in particular through Punjab Small Industries Corporation (PSIC).

This initiative is part of a larger cooperation on “Jobs and Competitiveness” programme with

the World Bank.



Organization (UNIDO) to provide technical assistance for the development of industrial

clusters in Punjab province and to support their further integration into global value chains.

A strong cluster support system would require joint efforts for the development process

including public and the private sector in order to help upgrade management, technology and

skills and provide help to firms in networking with each other and accessing new markets. The

purpose of Cluster Development Initiative (CDI) is therefore to create an enabling environment

for growth and prosperity of industries, to create better quality of life through economic uplift

in Punjab and to up-grade technology and enhance productivity quality and profitability of

local industries.

2. OVERALL GOALS, OBJECTIVES & CONSULTANT’s RESPONSIBILITIES


• Driving productivity and competitiveness improvements through key established

Punjab export focused SME manufacturing clusters.

• Building the support infrastructure that underpins collaborative and strategic industry

activity.

• To address the comparative shortcomings i.e. costly factors of production, quality and


The CDI approach combines strategic analysis with cluster change management tools and, in

some cases, funding for implementation of specific interventions. These specific interventions

called as Competitive Reinforcement Initiatives (CRIs) are packages that are based on the

selection of clusters within priority sectors and areas within their operations which exhibit high


potential for improvement and / or growth and incorporate plans for working with the firms

involved to deliver these outcomes.

Auto Parts sector contributes major chunk in Pakistan’s Economy adding approx. 6 Billion

US$ every year, which depicts 16% of manufacturing sector of Pakistan. Being the 6th largest

manufacturing sector and has share of 2.3% in GDP, auto parts sector contributes only 45

million US$ in exports. Local industry is still not able to manufacture high tech dynamic

components, such as engine precision components. However, auto parts manufacturers have

localized a large number of low tech automotive parts including sheet metal, rubber, plastic

and aluminum parts. The industry has witnessed a handsome average annual growth rate of

7%~8% in past five years, with the advent of new assemblers entering automotive sector of

Pakistan, it is expected to demonstrate a healthy growth pattern in the future. The auto sector

of Pakistan currently produces 250,000 cars, 60, 000 Tractors, 2 million 2/3 wheelers annually.

A comprehensive diagnostic study was carried out by the CDI team under the supervision of

UNIDO’s national and Int’l experts to address the challenges that hinder the growth of auto

parts cluster in Lahore. The diagnostic study highlighted, inter alia, lower productivity as a key

challenge for the cluster companies. Overall, Pakistan’s labor productivity growth rate is

feeble, averaging 1.25% for the period 2009 to 2013 as compared to China’s 8.11% and India’s

6% for the same period.

One of the major reasons impacting the labor productivity growth rate is that the manufacturing

paradigm has shifted from mass production to low volume-high variety products and lately into

the mass customization. This scenario on part of the organizations requires agility and

flexibility in order to satisfy the customers through better quality, on time delivery and lower

prices. However, most of the SMEs of this cluster could not transform into productive/lean

enterprises to cope up with this challenge and remained confined to conventional products

without substantial innovations in core products and processes. Therefore, the Auto Parts

Cluster has been considered below par in the competitiveness ranking, especially when it

comes to capture the international markets.


To work with 10-12 signatory auto parts cluster manufacturing units of Lahore, to improve

their processes, operations and productivity by implementing lean manufacturing models,

industrial engineering principles and good manufacturing practices.


a) Under this consultancy, the consultant will perform all of the tasks and activities given in

section 2.3, either clearly mentioned in this document or implied.

b) The consultant will undertake the primary and secondary research including reviewing of

the project documents to identify the project’s objectives, implementation modalities,


c) The consultant will meet the respective team members of CDI, project beneficiaries and

various stakeholders of the cluster, as and when suggested by the Project Director /Cluster

Manager (CDI).


d) The consultant will visit beneficiary units, as per monthly plan prepared in consensus with

the CDI team and the beneficiary units’ in-order to execute all steps of implementation of

lean manufacturing.

e) The consultant will undertake all tasks given in section 2.3 for completion of deliverables

and successful implementation of lean manufacturing systems in designated units.

f) The consultant will design and implement the project workplan with the support and


g) The consultant will develop the documents related to lean manufacturing and submit the




a) Analyze and evaluate the current manufacturing systems of selected manufacturing units

along with all processes and operations to chalk out the gaps therein.

b) Short reports (two pages for each manufacturing unit), encompassing analysis and

evaluation of current manufacturing system/practices and gaps therein with respect to

process and labor productivity and wastage reduction. Moreover, the report should provide

the way forward, a strategy and action plan for the implementation of lean manufacturing

system and industrial engineering principles.




d) In each unit, perform all essential activities for the implementation of lean manufacturing

and industrial engineering including but are not limited by developing cross functional lean

teams, Value Stream Mapping (Where ever necessary), setting key performance indicators,




e) Impart in-house awareness, orientation and training sessions for employees and

management of each unit, required for effective implementation of lean manufacturing

system to improve labor and process productivity and to reduce wastage.

f) Develop posters, pamphlets, and other informative/training material required for

information and implementation of the said systems for the workers and management.


The consultant will be responsible to plan, design, develop and implement the lean

manufacturing practices and industrial engineering principles in selected beneficiary units

of auto parts cluster, Lahore with the mandate to improve their process and labor

productivity. The scope of service to be undertaken is as follow:

a) Baseline assessment.


c) Selection of model area / identification of bottleneck areas


d) Productivity improvement baseline study and development of baseline values to be worked

as KPIs


Productivity Improvement work plan

f) Implementation of identified solutions on lean manufacturing.

g) Before – after comparison of the productivity gains

h) Training of cluster entrepreneurs on change management


2.5.1 KPIs to be assessed for the model production area:

Sr.

No. KPI Minimum Improvement Requirements

a) Material travel distance Min 05 % reduction in travel distance

b) Production per day Min 10% increase

c) Labor productivity Min 10% increase

d) Work in Progress (WIP) Min 10% optimization

e) Lead time Min 10% improvement

f) Line balancing efficiency Min 10% increase

g) Quality defect rate Min 05% decrease

h) Quality rejection rate Min 05% decrease

i) 5S Factory zoning, zone teams, reward system, 5S

reporting, suggestion system

“The above-mentioned improvement requirements are dependent on baseline study.

Minimum improvement requirements may differ from company to company and will depend

on the finalization of productivity improvement workplan with company management. KPIs

may further be included or excluded with the consent of the CDI team and company

management depending on the on-ground situation at company premises. The terminology

Minimum stands for minimum improvement from the existing status of the KPIs of

production of model area of selected company e.g. Quality Rejection rate will be improved as

a minimum to 05 % from existing status as calculated in the baseline study.”

Note: The above-mentioned KPIs for ‘Productivity Improvement’ must be achieved through

focus on resource optimization and utilization (technology/HR/financial and others), focus

should be on making the most of existing machinery and human resource available in the

factory / company to achieve the KPIs/goals.

2.5.2 KPIs for Training of Cluster Entrepreneurs on Change Management

Sr. No. Description KPI

a) Training development plan for cluster

entrepreneurs on change management aspects

Training and development plan

prepared and approved by CDI

b) Number of Change Management Trainings

held for cluster companies 3-5



10 to 15 factory management

personnel participated in the

training programme.

3. Reports:


Inception report will cover the timelines and deliverables, including understanding of the

task and scope, methodology, approach and steps for carrying out tasks mentioned in the

scope of services.

3.2 Draft Reports

The consultant will submit draft reports on completion of each of the following

activities:

a) Productivity improvement baseline study, development of baseline values to be


companies.

b) After implementation of lean production tools and techniques in companies.



3.3 Final Report

Final report will cover all the activities and works as mentioned in the scope of work

and draft reports. This will be submitted after incorporation of comments / suggestions

from the stakeholders.

In addition to the deliverables mentioned in this section, the consultant will deliver the

following documentation as evidence of the activities and data as per the data collection

formats, mutually agreed between the consultant and CDI:

i. The consultant will provide a monthly progress report for each factory

covering the following aspects:

• Weekly activity plan

• Training conducted at factory level

• Status of the KPIs

• Issues encountered during implementation and measures taken

• Data collected may be annexed


• Training and development plan

• Training material

iii. 5S factory zoning, zone teams, 5S champion team, audit sheets, checklists

and reports. 5S before-after pictures.


iv. Comprehensive final report of the productivity improvement CRI for each

factory

v. Comprehensive final report of the CRI for the cluster

4. DELIVERABLES:

The consultant shall principally report to the Project Director, CDI and will also work closely

with Auto Parts Cluster team as well as with other stakeholders of CDI and Auto Parts Cluster

to produce the following deliverables:

Sr.

No. Description Deliverables

a)


understanding of the task and scope, methodology, approach and

steps for carrying out tasks mentioned in the scope of services.

Deliverable 1

b)




Deliverable 2

c) Implementation of lean production tools and techniques in

companies. Deliverable 3

d) Training of cluster entrepreneurs on change management. Deliverable 4

e)

Final report will cover before and after comparison with minimum

criteria of KPIs achieved (with evidence), details of all the

activities and works carried out as mentioned in the scope of work

and other reports. This report will be submitted to Project

Director, CDI after incorporation of comments / suggestions from

the stakeholders. Presentation will also be made to the


Deliverable 5

5. PAYMENT SCHEDULE

Payment will be on the basis of milestones / deliverables spread over five phases as listed in

the table below:

Sr.


Payment

Percentage

a)

Inception report containing timelines and deliverables,

including understanding of the task and scope, methodology,

approach and steps for carrying out tasks mentioned in the

scope of services.

10%

b)




20%


companies. 25%


e)


minimum criteria of KPIs achieved (with evidence), details

of all the activities and works carried out as mentioned in the

30%


Sr.


Payment

Percentage

scope of work and other reports. This report will be submitted

to Project Director, CDI after incorporation of comments /

suggestions from the stakeholders. Presentation will also be

made to the stakeholders on completion of the intervention.

6. REQUIRED EDUCATION, SKILLS & EXPERIENCE

a) Bachelor/ Masters degree in Engineering / Masters in Business Administration/Business

Management or Development Field.

b) At least five years of professional relevant experience.

c) Experience providing technical assistance to private sector for implementation of

productivity tools and lean manufacturing is essential.


e) Good writing and communication skills in Urdu & English

f) Strong working experience in the production culture in the small and medium sized

enterprises preferably in Light Engineering Sector.

Skills:


projects.

b) Able to mentor SME teams on productivity improvement tools.



d) Demonstrated capacity to work independently in labour intensive environment.

e) Adequate computer skills for data collection, analysis, presentation, and report writing

using various computer software.

7. REPORTING:



stakeholders.

8. DURATION OF ASSIGNMENT:

The assignment is of maximum 100-man days for 2-3 companies, spread over a period of

maximum 6 months.

PSIC reserves the right to reject any proposal as per PPRA rules.

***********************

_____________________________________________________________________________________ Terms of References – Hiring of Individual Consultant for Surgical Cluster Page 1 of 8

CLUSTER DEVELOPMENT INITIATIVE

(SURGICAL CLUSTER, SIALKOT)

TERMS OF REFERENCES

HIRING OF INDIVIDUAL CONSULTANT FOR SHORT CONSULTANCY ON

PRODUCTIVITY IMPROVEMENT IN SURGICAL CLUSTER OF SIALKOT

1. Introduction

Government of the Punjab adopted the “Punjab Growth Strategy” which incorporates target of an

annual 8% GDP growth within the Province. The Industrial Sector Development Plan, an element

of the Growth Strategy, is oriented to increase private sector investment, thereby increasing job

creation and exports. As part of the development plan, the Government has introduced Cluster

Development Initiative (CDI) to support the growth and competitiveness of key manufacturing

clusters in particular through Punjab Small Industries Corporation (PSIC). This initiative is part of

a larger cooperation on “Jobs and Competitiveness” programme with the World Bank.

In the framework of the Punjab Jobs and Competitiveness Programme, the Government of Punjab

has signed a cooperation agreement with United Nations Industrial Development Organization

(UNIDO) to provide technical assistance for the development of industrial clusters in Punjab

province and to support their further integration into global value chains.

A strong cluster support system would require joint efforts for the development process including

public and the private sector in order to help upgrade management, technology and skills and

provide help to firms in networking with each other and accessing new markets. The purpose of

Cluster Development Initiative (CDI) is therefore to create an enabling environment for growth

and prosperity of industries, to create better quality of life through economic uplift in Punjab and

to up-grade technology and enhance productivity quality and profitability of local industries.

2. Overall Goals, Objectives & Consultant’s Responsibilities


• Driving productivity and competitiveness improvements through key established Punjab


• Building the support infrastructure that underpins collaborative and strategic industry

activity.

• To address the comparative shortcomings i.e. costly factors of production, quality and


The CDI approach combines strategic analysis with cluster change management tools and, in some

cases, funding for implementation of specific interventions. These specific interventions called as

Competitive Reinforcement Initiatives (CRIs) are packages that are based on the selection of


clusters within priority sectors and areas within their operations which exhibit high potential for

improvement and / or growth and incorporate plans for working with the firms involved to deliver

these outcomes.

The surgical instruments manufacturing cluster is mainly located in and around Sialkot, Punjab,

Pakistan covering about 99% of the country’s production with GDP contribution of 0.13%. The

cluster comprises of over 3600 companies including industrial units, vendors & traders and

employs around 100,000-150,000 workers. This industrial cluster produces a wide range of

surgical and beauty instruments for international producers / brands with diversified range of

designs on their demand. Almost 95% production is export oriented. Almost all the firms are

exporting, however, there are many vendor units that usually supply to commercial

exporters/traders.

The advanced countries of Europe and America are the leading buyers of Pakistan’s surgical

instruments. Pakistan is exporting surgical instruments to the world market mainly under

Harmonized System (HS) Code 90. More than 95% of country’s export is under HS Code 9018

which covers Instruments and appliances used in medical, surgical, dental or veterinary sciences,

including scintigraphic apparatus, other electro-medical apparatus, sight-testing instruments &

Neuro Endovascular Surgery (NES). Considering the trade figures of 2018, Pakistan has 0.30%

share in the world trade i.e. $127.17 billion.

A comprehensive diagnostic study was carried out by the CDI team under the supervision of

UNIDO’s national and Int’l experts to address the challenges that hinder the growth of surgical

cluster in Sialkot. The diagnostic study highlighted that the cluster is operating at lower labor

productivity level and has not been able to comprehend the production wastages incurring due to

absence of effective performance management systems. Most of the companies are being operated

by the owners having neither the competency to envision this aspect nor the desire to engage

professionals to overcome this challenge. Therefore, presence of professional managers in the

cluster companies is rare. In addition, the technical know how about a manufacturing process can’t

be perceived as a substitute to the performance management system. This anomaly has resulted in

poor labor productivity levels of mere 30-40% thereby deteriorating all the Key Performance

Indicators (KPIs) at firm level in terms of Cost, Quality and Delivery (CQD). Since the cluster is

competing on the price basis, there exist a significant potential to reduce cost of production by

eliminating non-value-added activities in the surgical instruments production supply chain.


To work with 10-12 signatory surgical cluster manufacturing units of Sialkot to improve their

processes, operations and productivity by implementing lean manufacturing models, industrial

engineering principles and good manufacturing practices.


Under this consultancy, the consultant will perform all of the tasks and activities given in section

2.3, either clearly mentioned in this document or implied.


a) The consultant will undertake the primary and secondary research including reviewing of the

project documents to identify the project’s objectives, implementation modalities,


b) The consultant will meet the respective team members of CDI, project beneficiaries and

various stakeholders of the cluster, as and when suggested by the Project Director / Cluster

Manager (CDI).

c) The consultant will visit beneficiary units, as per monthly plan prepared in consensus with the

CDI team and the beneficiary units’ in-order to execute all steps of implementation of lean

manufacturing.

d) The consultant will undertake all tasks given in section 2.3 for completion of deliverables and

successful implementation of lean manufacturing systems in designated units.

e) The consultant will design and implement the project work plan with the support and assistance

of CDI team.

f) The consultant will develop the documents related to lean manufacturing and submit the



The Consultant will perform the following duties to accomplish the project objectives:

a) Analyze and evaluate the current manufacturing systems of selected manufacturing units along

with all processes and operations to chalk out the gaps therein.

b) Short reports (two pages for each manufacturing unit), encompassing analysis and evaluation

of current manufacturing system/practices and gaps therein with respect to process and labor

productivity and wastage reduction. Moreover, the report should provide the way forward, a

strategy and action plan for the implementation of lean manufacturing system and industrial

engineering principles.




d) In each unit, perform all essential activities for the implementation of lean manufacturing and

industrial engineering including but are not limited by developing cross functional lean teams,

Value Stream Mapping (Where ever necessary), setting Key Performance Indicators (KPIs),




e) Impart in-house awareness, orientation and training sessions for employees and management

of each unit, required for effective implementation of lean manufacturing system to improve

labor and process productivity and to reduce wastage.


f) Develop posters, pamphlets, and other informative/training material required for information

and implementation of the said systems for the workers and management.


The Consultant will be responsible to plan, design, develop and implement the lean manufacturing

practices and industrial engineering principles in selected beneficiary units of surgical cluster,

Sialkot with the mandate to improve their process and labor productivity. The scope of service to

be undertaken is as follow:

a) Baseline assessment.


c) Selection of model area / identification of bottleneck areas.

d) Productivity improvement baseline study and development of baseline values to be worked as

KPIs.


Productivity Improvement work plan.

f) Implementation of identified solutions on lean manufacturing.

g) Before – after comparison of the productivity gains.

h) Training of cluster entrepreneurs on change management.


2.5.1 KPIs to be assessed for the model production area:

Sr. No. KPI Minimum Improvement Requirements

a) Material travel distance Min 10% reduction in travel distance

b) Production per day Min 10% increase

c) Labor productivity Min 10% increase

d) Work in Progress (WIP) Min 10% optimization

e) Lead time Min 15% improvement

f) Line balancing efficiency Min 10% increase

g) Quality defect rate Min 10% decrease

h) Quality rejection rate Min 05% decrease

i) 5S Factory zoning, zone teams, reward system, 5S

reporting, suggestion system

“The above-mentioned improvement requirements are dependent on baseline study.

Minimum improvement requirements may differ from company to company and will depend

on the finalization of productivity improvement workplan with company management. KPIs

may further be included or excluded with the consent of the CDI team and company

management depending on the on-ground situation at company premises. The terminology

Minimum stands for minimum improvement from the existing status of the KPIs of

production of model area of selected company e.g. Quality Rejection Rate will be improved

as a minimum to 05 % from existing status as calculated in the baseline study.”


Note: The above-mentioned KPIs for ‘Productivity Improvement’ must be achieved through focus

on resource optimization and utilization (technology/HR/financial and others), focus should be on

making the most of existing machinery and human resource available in the factory / company to

achieve the KPIs/goals

2.5.2 KPIs for Training of Cluster Entrepreneurs on Change Management


a) Training development plan for cluster

entrepreneurs on change management aspects

Training and development plan

prepared and approved by CDI

b) Number of Change Management Trainings

held for cluster companies

3-5

15 to 20 factory management

personnel participated in the

training programme.

3. Reports:


Inception report will cover the timelines and deliverables, including understanding of the task and

scope, methodology, approach and steps for carrying out tasks mentioned in the scope of services.

3.2 Draft Reports

The consultant will submit draft reports on completion of each of the following activities:

a) Productivity improvement baseline study, development of baseline values to be worked as

KPIs and finalization of productivity improvement work plan with companies.

b) After implementation of lean production tools and techniques in companies.



3.3 Final Report

Final report will cover all the activities and works as mentioned in the scope of work and draft

reports. This will be submitted after incorporation of comments / suggestions from the

stakeholders.

In addition to the deliverables mentioned in this TORs, the consultant will deliver the following

documentation as evidence of the activities and data as per the data collection formats, mutually

agreed between the consultant and CDI:

i. The consultant will provide a monthly progress report for each factory covering the

following aspects:

a) Weekly activity plan

b) Training conducted at factory level

c) Status of the KPIs

d) Issues encountered during implementation and measures taken


e) Data collected may be annexed


a) Training and development plan

b) Training material

iii. 5S factory zoning, zone teams, 5S champion team, audit sheets, checklists and reports.

5S before-after pictures.

iv. Comprehensive final report of the productivity improvement CRI for each factory

v. Comprehensive final report of the CRI for the cluster

4. Deliverables

The consultant shall principally report to the Project Director, CDI and will also work closely with

Surgical Cluster team as well as with other stakeholders of CDI and Surgical Cluster to produce

the following deliverables:

Sr. No. Description Deliverable

a)




Deliverable 1

b)




Deliverable 2


companies. Deliverable 3

d) Training of cluster entrepreneurs on change management. Deliverable 4

e)


minimum criteria of KPIs achieved (with evidence), details of all

the activities and works carried out as mentioned in the scope of

work and other reports. This report will be submitted to Project




Deliverable 5

5. Payment Schedule

Payment will be on the basis of milestones / deliverables spread over five phases as listed in the

table below:


Percentage

a) Inception report containing timelines and deliverables, including



10%



Percentage

b) Productivity improvement baseline study, development of



20%


companies. 25%


e)


minimum criteria of KPIs achieved (with evidence), details of all

the activities and works carried out as mentioned in the scope of

work and other reports. This report will be submitted to Project




30%

6. Required Education, Skills & Experience

a) Bachelor / Master Degree in Engineering / Master in Business Administration or in

Development Field.

b) At least 5 years of professional relevant experience.

c) Experience providing technical assistance to private sector for implementation of productivity

tools and lean manufacturing is essential.


e) Good writing and communication skills in Urdu and English.

f) Strong working experience in the production culture in the small and medium sized enterprises

preferably in light engineering sector.

Skills:


success stories.

b) Able to mentor SME teams on productivity improvement tools, regarding how many trainings

he/she conducted in his/her previous successful projects.


development of pragmatic solutions, analysis on the basis of working in total number of

companies previously regarding productivity improvement.

d) Demonstrated capacity to work independently in labour intensive environment examined in

last 3 projects.

e) Adequate computer skills for data collection, analysis, presentation, and report writing using

various computer software, examined by his/her presentation on productivity.

7. Reporting




stakeholders.

8. Duration of Assignment

The assignment is of maximum 100-man days for 2-3 companies, spread over a period of

maximum 6 months.

PSIC reserves the right to reject any proposal as per PPRA Rules.

***********************

Documents

CLUSTER DEVELOPMENT INITIATIVE READYMADE GARMENTS … · most of the SMEs of this cluster could not transform into productive / lean enterprises to cope with this challenge. Therefore,