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Ex-post Evaluation

Asia

1. Outline of the project

  • Country: Philippines
  • Project title: Upgrading Project for Plastic Molding Tool Technology (UPPMTT)
  • Issue/Sector: Industry/General
  • Cooperation scheme: Project Type Technical Cooperation (PTTC)
  • Division in charge: First Technical Cooperation Division,
    Mining and Industrial Development Study Department
  • Total cost: 909 million Yen
  • Period of Cooperation
    1 September 1997- 31 August 2002 (R/D)
  • Partner Country's Implementing Organization: Metal Industry Research Development Center (MIRDC)-Department of Science and Technology (DOST)
  • Supporting organization in Japan: The Materials Process Technology Center Inc.
  • Related cooperation: Project-Type Technical Cooperation "Republic of Philippines Metallic Foundry Technology Center Project"

1.1 Background of the project

In order to improve the government's technical capability on metal casting, which was a key sub-sector of the "supporting industries" in the Philippines in 1970s, the Government of the Philippines (GOP) requested a technical cooperation from the Government of Japan (GOJ). In response to this request, the GOJ, through JICA, assisted the MIRDC in implementing the Metal Casting Technology Center Project under JICA's PTTC program from July 1980 to January 1986. In 1995, the Philippines realized the need to foster its "supporting industries" particularly the metal works industry sector to advance industrial promotion as a strategy for sustained economic growth. However, the government's available technology on this sector was found lagging behind with those of other newly industrializing countries. Under this circumstance, the GOP again requested GOJ for a technical cooperation to upgrade MIRDC's technologies on metal processing particularly on molding and casting. Responding to the request, the GOJ, through JICA offered a technical cooperation only in the field of plastic molding because the basic technology in the field of casting has already been transferred to MIRDC staff during the technical cooperation in the 1980s. The GOP authorities agreed on this suggestion and signed the Records of Discussions (R/D) in June 1997 regarding the implementation of the "Upgrading Project for Plastic Molding Tool Technology (UPPMTT)" under JICA's Project-Type Technical Cooperation (PTTC) Program. The project cooperation commenced in September 1997 and ended in August 2002. To complement the implementation of the UPPMTT, the MIRDC carried out the project titled, "Support to the establishment of Precision Tool and Die Center" from January 2000 to December 2001 with a grant funding from UNDP of $320,000 which was accessed by UNDP from the Japan Human Resources Development Thrust Fund. This project was focused on training out-of-school youths while the UPPMTT was focused on training the technicians and engineers already working with industry companies.

The Mid-Term Evaluation study for the Upgrading Project for Plastic Molding Tool Technology (UPPMTT) was carried out by JICA in August 2000, while the Terminal Evaluation study was undertaken in March 2002. This Ex-Post Evaluation Study was aimed at determining the Impact and Sustainability of the project.

1.2 Project overview

In order to improve the training and technical support capability of MIRDC, the project transferred technologies to MIRDC counterpart staff on plastic molding in the following fields: (i) designing, (ii) processing, and (iii) assembling, repair and trial manufacturing.

(1) Overall goal

Technical level of engineers and technicians in the Philippines' Tool and Die industry will be upgraded. (The project was actually expected to contribute to the improvement of the Philippines' technical capability in the field of mold for plastic)

(2) Project purpose

MIRDC will be able to provide training and technical support related to plastic molding tool technology.

(3) Outputs

1) The project management and operation system will be enhanced
2) The machinery and equipment will be provided, installed, operated and maintained properly
3) The technical level of counterpart personnel will be upgraded
4) Training courses for the tool and die industry will be implemented systematically
5) MIRDC's technical support services to the tool and die industry will be implemented systematically

(4) Inputs

Japanese side:
Long-term Experts10 Equipment 304million Yen
Short-term Experts 32Local Cost 30 million Yen
Trainees received in Japan19Others-
Philippine side:
Assignment of counterparts57
Land and facilities17 million Yen
Local Cost261million Yen

2. Evaluation Team

Members of evaluation team
JICA-Philippines office
Commissioned to: Guru Technologies Corporation
Consultant: Ms. Rosario Bantayan
JICA In-house Consultants providing technical guidance and supervision to the study:
(1) Engr Rey Gerona
(2) Engr Nick Baoy
Period of evaluation:
November 8, 2005 – January 6, 2006
Type of evaluation:
Ex-Post Evaluation

3. Results of evaluation

3.1 Summary of evaluation results

(1) Impact

The impact of the technical cooperation on the individual counterpart staff of MIRDC was highly significant, such that, compared to the time when the technical cooperation was not yet implemented, former project counterparts at MIRDC can now be considered highly competent in delivering lectures during trainings and in providing technical consultancy or advisory services to small and medium enterprises in the industry. As a result of an improved capability, the number of MIRDC's clients expanded from engineers and technicians in the small and medium enterprises to out-of-school youth trainees of vocational schools which are potential sources of skilled employees in the Philippines. To sustain the generation of positive impacts, however, there is a need for more advanced technologies using modern equipment in order to effectively cope with the rapid technological advancement of plastic molding and to appropriately respond to market demands. It certainly requires longer time to achieve the project's overall goal of "upgrading the technical level of engineers and technicians in the Philippines' tool and die industry" considering the varied fields involved in the whole tool and die industry. But the project is already contributing towards achieving this goal by "improving the Philippines' capability in the field of mold for plastic".

There was no negative impact produced by the project, and the production of the same is seen unlikely in the future.

(2) Sustainability

Institutional

The institutional sustainability aspect of the project is secured. MIRDC remains the only government agency in the Philippines directly supporting the metals and engineering industries through the provision of professional management and technical expertise on the training of engineers and technicians; information exchange; trade accreditation services; quality control and testing of metal products; and business economic advisory services. As such, MIRDC remains a relevant organization particularly on the Philippines' continuing effort of fostering "supporting industries" in the country. To further ensure its institutional sustainability, MIRDC successfully acquired ISO/IEC Guide25 accreditation for its laboratories in 1996, an ISO 9002 Certification of Precision Casting Section and Investment Casting Unit in 1998 and an ISO 9001 certification for its Industrial Training Section which was later upgraded to ISO certification: 2000 version that signifies a mark of excellence in addressing the demands or needs of training participants. Also in 1998, MIRDC got accreditation from NATA of Australia for its force and mass laboratory. The MIRDC had likewise acquired ISO 14001-Environmental Management System certification in 2001 that recognized the MIRDC's integration of environmental management, pollution prevention, health and safety in all its activities. With an average budget of 101 million provided by the central government every year, MIRDC is staffed with more than 290 permanent personnel, 79% of whom are technical staff. The Philippine Government remained committed to develop its human resources to achieve the goal of having highly trained and skilled manpower that can contribute to the achievement of Philippine industrialization in the future. These agenda are highlighted in the current Medium-Term Philippine Development Plan 2004-2010. Therefore, the continuing work of the MIRDC in upgrading the technical levels of technicians and engineers in the tool and die industry is considered vital. Along this line, the MIRDC continues to enjoy a policy support from the national government, and as such, strengthens the institutional sustainability aspect of the project.

To help sustain project activities, the MIRDC maintains very close relations with the private industry sector such as the Philippine Die and Mold Association (PDMA) and the Metalworking Industry Association of the Philippines (MIAP) and the Philippine Metalcasting Association, Inc. In addition, MIRDC maintains a working partnership with the TESDA (Technical Education Skills Development Authority, a government agency attached to the Department of Labor and Employment) through which trainers of TESDA in plastic molding are continually trained by MIRDC staff in addition to assisting TESDA in prioritizing and formulating the occupational trade skills and competency assessments, and in evaluating the curricula of different vocational schools applying for accreditation.

Technical

The technical sustainability aspect of the project is likewise secured. Forty-eight (48) out of the 57 former project counterparts are still working at MIRDC and continue to work for plastic molding. Only eight (8) former project counterparts have left the government service since 2000, most of whom are either managing their own business enterprise or working for the companies in the metal and engineering and allied industries. At the time of evaluation, thirteen (13) out of the 19 project counterparts who were trained in Japan are still connected with MIRDC and performing functions related to plastic molding tool technology. The MIRDC staff are able to practice the learned knowledge and skills on plastic molding by continuously delivering lectures in training and seminars, workshops or conferences and through continued provision of consultancy services to medium and large companies that are equipped with more advanced technologies and modern equipment. The MIRDC had conducted at least 22 trainings related to plastic molding technology since the project cooperation ended in 2002. These trainings were attended by more than 700 participants from different industry companies. Former project counterparts at MIRDC are also providing continuously consultancy services on mold design, fabrication, assembly and processing to small and medium industry companies. The learnt knowledge and skills are also applied by former project counterparts in other MIRDC training courses, such as Analysis and Testing Course, Quality Management System, Productivity Improvement, Management and Supervisory course, and engineering production and planning courses. The MIRDC continues to serve as the secretariat of the Philippine Die and Mold Association and has been instrumental in strengthening linkages both local and abroad. Until at present, the MIRDC remains active in the Federation of Asian Die and Mold Association (FADMA), through which MIRDC former project counterparts had the opportunity to participate in technology upgrading activities with Asian counterparts in related international conventions that are held from time to time. The various sets of equipment provided by the project are still in good condition. All these equipment are regularly used during trainings, consultancy services, testing and technology demonstration activities for visiting students from different vocational schools and universities. However, the technology on plastic molding is fast-changing and as such there is an apparent need for MIRDC staff to be constantly exposed to new product designs and latest trends in tool and die technologies to keep pace with rapid technological innovations.

Financial

The financial sustainability aspect of the project is also secured. MIRDC gets a yearly budget ranging from 100 million to 110 million pesos from the national government starting in 2002. This budget allocation is bigger than those provided to MIRDC during the project cooperation period that ranged only from 92 million to 96 million a year. Because of the huge budget deficit the Philippine government is presently encountering, however, the budget allocation to MIRDC from the national government is gradually decreasing from 110.5 million in 2002 to only 101.9 million in 2005. This budget reduction however has not so far adversely affected the operations and activities of the MIRDC, except that MIRDC will not be able to acquire immediately modern equipment, which is seen necessary to advance its technologies on plastic molding. In addition to the budget provided by the national government, MIRDC generates revenues averaging 30 million pesos per year from trainings and consultancy services. Furthermore, an average of 10 million pesos every year is received by MIRDC from DOST as "grant-in-aid" for the purchase of accessories, fabrication, repairs and maintenance of equipment. Over the last 35 years, MIRDC has been consistently provided with an operational budget from the national government and that this budgetary support can be expected to continue in the future. As such, the financial sustainability aspect of the project is ensured.

3.2 Factors that have promoted the project

(1) Impact

The continuous linkage and support of the Metalworking Industry Association of the Philippines (MIAP) and the Philippine Die and Mold Association (PDMA) to MIRDC had contributed to the production of positive impacts by the project. These two associations have been instrumental in drumming up support and creating awareness of the project to industry members such that personnel from different industries as well as from other training and academic institutions have continuously availed of the training programs of the Center. Through the sustained partnership of the PDMA and MIRDC, the first international exhibition cum conference which brought together industry players of die and mold and other related industries in the country and the Asian region was held in 2003 to promote their products and services as well as expand business networks.

(2) Sustainability

The following factors had promoted the sustainability of the project: (i) Priority given by government to increasing productivity and enhancing global competitiveness of the industrial sector in which the MIRDC plays a vital role, (ii) low staff turn-over at MIRDC, and (iii) the continued existence of MIRDC as the sole agency of the government mandated to provide training and technical services to the metalworking industry in the Philippines.

3.3 Factors that have inhibited the project

The rapid technological advancement in the plastic molding industry, on one hand, inhibits the impact and sustainability aspects of the project because this requires the continuous upgrading of the knowledge, skills and equipment available at MIRDC to which the financial resources of MIRDC may not be able to respond appropriately. On the other hand, it poses real challenge to MIRDC to finds ways to keep itself at pace of the technological innovations in the industry. Also, there are always possibilities that the trained technicians and engineers will leave for work overseas because of the more attractive job packages offered by tool and die companies abroad. Without functional mechanisms and motivational incentives adopted at the plastic molding companies in the Philippines, this poses another challenge to MIRDC's capability to expand its clientele coverage.

3.4 Conclusion

The project has brought about positive impacts to MIRDC's capability as evidenced by its continuing conduct of related training and technical support on plastic molding tool technology not only to industry companies but also to vocational schools and university students and out-of-school youths. If seen from the angle of the original statement of the overall goal of the project ("upgrading the technical level of engineers and technicians in the Philippines' tool and die industry"), the impact of the technical cooperation in the whole tool and die industry may be considered small because this objective requires more time to achieve considering that plastic molding tool technology is just a small segment of the tool and die industry. However, if viewed from the angle of improving the Philippines' capability in the field of mold for plastic, then the impact of the technical cooperation is highly significant. Sustainability of the project is likewise secured. The production of positive effects caused by the project is continuing.

3.5 Recommendations

To MIRDC

To ensure sustainability of project activities, there is need for MIRDC to explore possibilities of acquiring sufficient funding for the operations and maintenance of its facilities and equipment, upgrading of some obsolete equipment and in advancing MIRDC's plastic molding technologies to keep itself abreast with the rapid technological innovations in the plastic molding sector.

To GOJ-JICA

In order to strengthen the positive gains produced by the project, JICA may wish to study the possibility of providing a follow-up support for the upgrading of equipment and enhancing the skills of technical staff of MIRDC.

3.6 Lessons learned

Strong partnership between the government and the private sector particularly the stakeholders and other beneficiaries of the project is vital for the sustainability of project effects. This partnership, together with the commitment and support of the private sector, will redound to the achievement of purpose and the goal of the project.

Establishing the direct logical links between and among project objectives during the project designing stage helps clarify contribution of project purpose to over-all goal and thus facilitate effective project implementation and evaluation. In this project, the over-all goal of the project of "upgrading the technical level of engineers and technicians in the tool and die industry" appears too high for the plastic molding project alone to achieve, considering the fact that plastic molding is just one of the many areas under the entire tool and die industry. The overall goal statement could have been about "improving the capability in the field of mold for plastic", which can be easily linked to the project purpose statement of "providing training and technical support related to plastic molding tool technology."

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