Project Assessment & Planning/Budgeting Workshop

ADFIAP together with its project partners, Germany’s Adelphi, the Confederation of Indian Industry (CII), Pupuk of Indonesia and CEESTA and Beijing Eco-Green Advisory (BEGA)/Institute for Environment and Development (IED) conducted its first year 2016 project assessment, planning & budgeting workshop for year 2 last March 20-21, 2017 at Beijing, China. BEGA/IED hosted the meeting and conducted it at an old “futong” or village workplace near the capital city of Beijing (#28 Zhonglao Hutong & Xilao Hutong, Beijing, China).

The 10 participants came from the 3 National Focal Points (NFPs) and ACMFN lead & technical partners — ADFIAP and Adelphi. The meeting was presided by Atty. Alberto B. Reyno, Country Project Manager for ACMFN China.

The 2-day meeting discussed the project accomplishments and financial performance for year 1. On the second day, the NFPs presented their work plans and budget for year 2 to the Project Steering Committee led by Atty. Reyno and Mr. Mirko Zuerker of adelphi.

ACMFN was launched in February 2016 in New Delhi, India and in just one year, the respective NFPs of the 3 target countries were able to successfully establish their presence in their respective communities. Over a period of 6 months, several national awareness-raising activities were conducted by the NFPs and these events attracted well over 1200 cleantech MSMEs to get to know the various activities of the ACMFN. Also, the project was able to conduct as scheduled, the TOT Cleantech Consulting for identified potential project technical and financial advisors at the 3 target countries/NFPs.

For more information on the ACMFN project, please visit its website at www.acmfn.com or email inquiries@adfiap.org.

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ACMFN project launched in China

ACMFN ChinaThe China Electronic Energy-Saving Technology Association (CEESTA) and the Institute of Environment and Development (IED) organized the launching of the Asian Cleantech MSME Financing Network (ACMFN) project on March 22, 2016 in Beijing, China. The event was attended by fifty (50) delegates including representatives from the Ministry of Industry and Information Technology (MIIT) of China, SMEs, international organizations, large corporations and various media outfits.

The ACMFN is a four-year project funded by the European Union (EU) Switch Asia Programme. The project’s implementing partner-organizations are Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) as the lead agency, CEESTA & IED of China, Adelphi of Germany, the Confederation of Indian Industry (CII) and PUPUK of Indonesia.

The ACMFN aims to build and leverage a cleantech financing eco-system to spark improved access to finance for Asian cleantech MSMEs in order to enhance sustainable consumption and production patterns in Asia. Cleantech refers to products, services and processes that reduce or eliminate negative ecological inputs, improve the productive and responsible use of natural resources and provide superior performance at lower cost. MSMEs, considered to be the major drivers of worldwide economies, are being tapped to benefit from the project. The ACMFN will fund the capacity-building for about 400 MSMEs in order that they would have better chances to access financing for their projects. Workshops, advisory services and mentoring, among other activities, will be conducted, including national forums for matchmaking process between MSMEs and financial Institutions as well as training manuals and toolkits. Around 200 MSMEs are expected to have improved processes or created innovations within the project timeline.

The Director of IED, Mr. Walter Ge, introduced the ACMFN project during the launching and announced the establishment of ACMFN office as well as the process of implementation of the project in China. Other speakers during the event were representatives from the MIIT, CEESTA, EU and guests from financial institutions.

The ACMFN project comes at a time when China spares no efforts in promoting green production and green financing which will help explore feasible solutions to the cleantech MSMEs traditionally-neglected by financial institutions.

ADFIAP, partners launch EU-funded Asia Cleantech MSME Financing Network project

ObpADFIAP together with its project partners, Germany’s Adelphi, the Confederation of Indian Industry (CII), Pupuk of Indonesia and CEESTA and Green Start Ups of China, launched on February 23, 2016 in New Delhi, India, the 3-country “Asia Cleantech Micro, Small and Medium Enterprises Financing Network” (ACMFN) project funded by the European Union (EU) through its SWITCH Asia Programme. About 60 attendees and stakeholders joined the successful project launch held at the Lalit Hotel in the Indian capital.

Eminent speakers from the EU Delegation to India, CII’s Green Business Centre, the Regional Council on MSMEs, the Integrated Association of Micro, Small & Medium Enterprises of India (I am SME of India) and the Small Industries Development Bank of India (SIDBI) shared their insights on MSMEs and clean technologies.

The ACMFN is a 4-year project which aims to build and leverage a cleantech financing eco-system to spark improved access to finance for Asian cleantech MSMEs in order to enhance sustainable consumption and production patterns in Asia. Cleantech refers to products, services and processes that reduce or eliminate negative ecological inputs, improve the productive and responsible use of natural resources and provide superior performance at lower cost.

MSMEs, considered to be the major drivers of worldwide economies, are being tapped to benefit from the project. The ACMFN will fund the capacity-building for about 400 MSMEs in order that they would have better chances to access financing for their projects. Workshops, advisory services and mentoring, among other activities, will be conducted, including national forums for matchmaking process between MSMEs and financial Institutions as well as training manuals and toolkits. Around 200 MSMEs are expected to have improved processes or created innovations within the project timeline.

For more information on the ACMFN project, please visit its website at www.acmfn.com or email inquiries@adfiap.org.

ADFIAP invited to climate change impact assessment & adaptation planning workshop

ADFIAP was invited to participate in the workshop entitled, “Capacity Building on Climate Change Impact Assessments and Adaptation Planning in the Asia-Pacific Region: Technical Review of Background Assessment for Climate Change Adaptation,” held on January 27-28, 2016 in Manila, Philippines with 60 participants from 15 countries attending.

The event is one of the series of events organized by the Institute for Global Environmental Strategies (IGES) as part of the activities of the Asia-Pacific Adaptation Network (APAN) and supported by the Ministry of Environment of Japan (MOEJ) and the United Nations Environment Programme (UNEP).

Following the previous workshop on “Capacity Building on Climate Change Impact Assessments and Adaptation Planning in the Asia- Pacific Region: Needs and Challenges for Designing and Implementing Climate Actions” in Bangkok, Thailand on October 1-2, 2015, this workshop focused on the necessary background assessments for climate change adaptation (CCA) which can be categorized into three distinct types: assessment of climate change scenarios and impacts; assessment of risks, hazards and vulnerabilities associated with climate change impacts; and assessment of effectiveness of CCA countermeasures. These are aimed at identifying action plans of the CCA background assessments at the subnational and/or national levels on the key sectoral and/or cross-sectoral bases, e.g., agriculture, water resources, health, etc.

The workshop provided for a better understanding and identification of effective and feasible tools of CCA background assessments and the best practices. Through the exchange of views and relevant information, the workshop has increased capacity-building of national government officials and other relevant stakeholders engaged in developing and implementing National Adaptation Plans (NAPs) and the impact assessments in the region.

ADFIAP was represented by Ms. Cora D. Conde, Group Head of ADFIAP Consulting.

Benefits for workers and business through higher productivity in garment factories in Myanmar

(How Shwe Yi Zabe succeeded in increasing productivity and setting up an incentive system for workers)

This article provides an account of a garment producer in Myanmar with a vision of combining increased productivity with incentives for workers.

Shwe Yi Zabe was not always able to achieve the expected and pre-planned productivity of daily and monthly outputs. They could not identify the problem, because the management had no data on the efficiency of each department and worker due to lacking records. All workers received the same wages based on their skill levels no matter if they reached their daily production target or not.

SMART Myanmar and experts from the German company ESGE recommended a payment system which allows to pay wages according to each individual worker´s performance. Apart from transparency of workers’ performance the payment system also captures figures of overall productivity throughout all production departments.

Read More: Article Shwe Yi Zabe final

Repair and maintenance of machinery and equipment ensure smooth production flow

(How Shwe Sakar Co. Ltd. managed to overcome bottlenecks in production capacity)

Regular maintenance of machinery and equipment at Shwe Sakar was practically non-existant. Unused sewing machines were stored in the production area and partly in a separate storage room. None of these unused machines were covered to protect them from dirt and dust; nor were they serviced or repaired.

In case of a sudden machine break down in the sewing lines or an unexpected requirement to increase the production capacity, stored machines needed to be cleaned and adjusted first to make them ready for production. This hampered the production flow and led to bottlenecks and, in the worst case, stopped the entire production.

Read More: Artikel Shwe Sakar

Higher productivity, higher profits and higher wages through lean management in Myanmar’s garment sector

The example of Myanmar Synergy Garment Co. Ltd. linking productivity with benefits for both, business and workers
Myanmar Synergy is a vivid example of successful collective action. As a company with young leadership, Myanmar Synergy quickly realized that business is not only about higher profits but depends to a large extent on good worker-management relationship. For solving production related issues Myanmar Synergy always involved line supervisors and workers. This strategy paid off, as we can see in this article.

Myanmar Synergy has practiced pre-production meetings based on internal experienced method. General order information´s were discussed with staff members of all departments, including production issues such as workmanship matters and capacity planning. Nonetheless not all departments were prepared on time for collective production start. Now and then the fabric was not ready for cutting because the relaxation period was not completed, or some sewing machines were not prepared and adjusted for particular order on time.

Myanmar Synergy was introduced to a pre-production meeting method which is commonly used in the garment industry international wise. A major component during pre-production meeting is to create a time table for all department in-charge. Based on these dates each department in-charge must plan and organize his area of responsibility according to start and end date.

Myanmar Synergy confirmed that their practiced pre-production meetings are similar to introduced version, but the major component “Time Table” has not been included in their current proceeding. Myanmar Synergy created a new pre-production meeting procedure by implementing the time table system and a few more other suggestions from advised SMART Myanmar´s version by modifying according to their purpose.

Read More: Article Mynamar Synergy final

Transforming a Garment Factory in Myanmar

How Hallmark Manufacturing Co. Ltd. takes big strides ahead with view to production management, social standards and occupational and health and safety.

Hallmark participated enthusiastically in SMART Myanmar’s various programs and takes pride in its achievements. This article presents a few examples of changes the management brought about during a short period of time.

Floor planning and organization

hallmarkDuring the first factory visit of Smart Myanmar along with international consultants from ESGE (Germany), production departments were disorganized and did neither have a structured floor planning nor sufficient space. Due to the production area being overloaded, there was no smooth production flow.

Prod. and eff. before

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Suggestions of SMART Myanmar consultants:

Generally, all items which do not necessarily belong to the production floor need to be removed and brought to a storage area. The layout of the production floor and the set-up of space between the workstations shall follow international good practice.

A space was assigned as a storage area and equipped with racks. The sewing department is no longer overloaded which allows the line in-charge to move the bundles from one work station to the other without space constraints. Bundles of cut garment pieces that are ready for sewing are placed in a designated area, adjacent to the sewing lines and easily accessible for the line in-charge. Thus, the line-in charge can monitor the production flow and plan accordingly.

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Efficient use of raw materials
The fabric warehouse was not organized. Rolls of fabric were placed haphazardly on the floor and became unwrapped. Dirt and moisture damaged several meters of fabric (in average 1 to 2 meters at the start of the roll and 5 to 10 cm at the edges) and made them unusable for production.

Such practice caused Hallmark and their customers a considerable loss of resources, especially with fabric accounting for 2/3 of the total production cost.

Likewise a quality inspection and recording of incoming fabrics, accessories and auxiliary items was lacking.

Resources before

Smart Myanmar´s suggestion with ESGE consultants
A well-organized garment production starts with a proper warehouse. A warehouse in-charge coordinates the quality and quantity inspections of delivered materials, attaches tags with customer information and production order and keeps inventory records about received and issued items. Materials are stored according to customer and production order.

Director Mr. Moe Pwint instructed his team to clear the whole warehouse and install racks. The warehouse in-charge was trained to carry out the following steps for maintaining the factories inventory:

• Check incoming goods by
1. quantity
2. weight
3. quality
• Assure the fabric is properly packed to protect it from dust, dirt and humidity
• Store all fabrics from same customer and production order in one place
• Place information tags for identification
• Keep an inventory register by recording “in” and “out”.

Due to arrange the storage system the raw material wastage is now decreased by approximately 3%.

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Human Resource Management

As part of their social standards agenda and in order to comply with international social standards Hallmark made use of the training and advise of the Social Compliance Academy conducted by Systain, an international consulting firm and made some changes and improvements in its human resources management.
Labor contracts were prepared for all workers in the company. Previously, only workers who joined the company from 2013 onwards were given contracts.

As birth certification and ID cards are not mandatory in Myanmar, it is advised that age identification for new workers is done by medical practitioners. Thus, Hallmark’s new entrants were sent for age identification in order to avoid employing under-age workers.

For day-job workers actual working hours were registered in order to compensate them adequately.
A bonus payment system was adapted which takes into account the seniority (years of employment in the factory) and the skill level of workers.
Deductions from workers’ salaries for uniforms was done away with.
Management introduced a suggestion box for giving workers an opportunity to voice grievances.

Fire Safety

As a result of its participation in the Social Compliance Academy Hallmark upgraded the fire safety of its factory – fire extinguishers were placed at the required locations and maintained according the user’s manual. Fire exits were vacated and marked and escape routes identified. Large emergency evacuation maps were placed in all departments.

Tools with the potential to cause injuries were secured, e.g. scissors were tied with ribbons at each workstation and labeled with the worker’s name.

Chemical Safety

Chemicals are used in various stages of manufacturing garments, e.g. ink for stamping in cutting department and stain removers in the finishing department. Previously, all workers that used chemicals had unrestricted access to these chemicals. Names of users, quantity of consumption were not recorded and chemicals not returned to the storage area which was reason for concern with regard to health and fire safety issues.

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