Ex-post Evaluation

1. Background of the Project

The Thai government has been promoting productivity and management development since the establishment of Thailand Management Development Centre (TMDPC) in 1962 in the Department of Industrial Promotion, MOI. The Thai government requested Project-type Technical cooperation from the Japanese Government to strengthen the function of TMDPC, and also aimed at training instructors on disseminates the productivity movement throughout the country to counter competition with the neighbouring newly-industrialized countries. In 1994, the Productivity Development Project started. Then in 1997 during this project, the economic crisis, triggered and the Thai to government hammer out 9 productivity improvement policies which emphasized SMEs' international competitiveness. Based on the Record of Discussions (R/D) signed in Bangkok on February 18, 1994 which was in accordance with the results of the Joint Evaluation by the Japanese and Thai teams on November 10, 1998. Both sides agreed to recommend to their respective Governments to implement the follow-up programme for 2 more years, up to February 2001. 3 year after the F/U termination, the Ex-post Evaluation Project has been assigned by JICA Overseas Office to assess the impact and sustainability of the F/U programme in order to draw lessons-learned and recommendations for the improvement of the country programme.

2. Project Overview

Overall results of the study imply that FIPI’s responsibility to improve productivity in Thai enterprises coincides with the Thai Government Policy on strengthening international competitiveness. The effectiveness of the Project is obvious since it has laid down the essential basic management system in most of Thai SMEs in terms of their attitudes, though proximately only 1,000-1,500 enterprises among more than 100,000 Thai SMEs have applied and benefited with tangible results. More efficiency form the Project will not be obtained unless time allocation and mutual needs of all parties concerned are met with proper consideration.

(1) Overall Goal

Through FTPI as a state productivity organization, productivity activities are disseminateing in Thai enterprises.

(2) Project Purpose

The productivity activities are effectively carried out in Thai enterprises by the FTPI's counterparts.

(3) Outputs

1. The management system for project execution is strengthened
2. FTPI's counterparts obtain knowledge of the consulting technology
3. FTPI's counterparts obtain knowledge on human resource development and labor management for the sake of productivity improvement.

(4) Inputs

Japanese side:(1994-2001)

Thai's side:(1994-2001)

Thai's side:(2001-2003)

3-1 Summary of Evaluation Results

(1) Impact

The overall impact of the Project in terms of productivity development activities have been widely and effectively diffused and penetrated into the Thai enterprises. During the cooperation period FTPI provided 96 companies with On-the-Job training (OJT) activities for productivity improvement, and trained 38 consultants. However, if training services on productivity development and process improvement as well as other processes including quality management system and environmental management standard system are taken into consideration, 480 companies received training. For consulting services (50 training curricula) on consulting skills and human resources management/development, there were 294 companies (consulting activity/OJT, Company diagnosis/OMG). Besides this, some unanticipated impact such as the Human Resources Development Project, under IRP for industrial sector with cooperation from the Technology Promotion Institute, Thailand Business Management Foundation and Siam Productivity Co., Ltd., where 5,268 staff from 70 companies received training.

(2) Sustainability

Overall sustainability of the Project from completion to October 2003 was very high in comparison with the period from during February 1994-17 February 2001 with the 2002 results in terms of trained counterparts 28 persons (in 1994-2001): trained companies 167 plus FTPI's customers 2,877 persons (in 2002), technical media produced 32 items (in 1994-2001): 61 items (in 2002), and trained and consulting service 1,018 companies (in 1994-2001) : 827 companies (in 2002). In addition to this, an attitude change on SMEs' management system has been confirmed by both the FTPI's counterparts and the selected SMEs. Thai SMEs have realized that the process of management system, with less investment cost but more productivity is essential.

3-2. Factors Promoting Sustainability and Impact

(1) Factors concerning Planning

Firstly FTPI has been able to generate its own income by various services and in 2002 it managed to earn more than it spent for the first time; secondly FTPI has been recognized and upgraded to a higher rank by the World Economic Forum (WEF), and the Institute for Management Development (IMD).

(2) Factors concerning the Implementation Process

1. FTPI's image has improved through JICA assistance which is recognized by international organizations and external viewers.
2. In 2002, FTPI managed for the first time to earn more than it spend by providing training and consulting services to over 100 SMEs on Invigorating Thai Business Project (ITB), etc.
3. It was successful in launching the Thailand Quality Award (TQA).
4. It has put in place a new HR system based on Broadband and competency.
5. FTPI managed to construct about 14 outstanding programme for the year 2002.

3-3. Factors Inhibiting Sustainability and Impact

(1) Factors concerning Planning

1. After the Project termination until 2003, some of the counterparts resigned the FTPI and the Productivity promotion Division. However, FTPI has solved this problem by recruiting new staffs.
2. FTPI's consulting team is rather limited in number only 14 persons out of total staff 120-150 personnel currently. They could train only 1,000-1,500 SMEs out of more than 100,000 SMEs around the whole country.
3. Timing of F/U did not match with the economic crisis situation of the country.

(2) Factors concerning the Implementation Process

1. FTPI's counterparts are able to upgrade SMEs only to shop-floor level which is regarded as a basic function of the consulting aspect.
2. Lastly, the counterparts did not gain the "can do attitude" and relied on the JICA experts for most of the cooperation period.

3-4. Conclusions

(1) The Productivity Development Project is regarded as being sustained through FTPI's activities. The expansion in terms of the numbers of SMEs obtaining consultation and training is still limited in comparison with the number of SMEs over the whole country (1:100 proportion), but with the support of the Department of Industrial Promotion, MOI and continuous improvement of FTPI the sustainability is high.

(2) The Project made a good impact on Thai SMEs, in particular it has shed some light on SMEs' and maintained/increased productivity. Productivity Development based on Quality Control Story has made obviously impacted on SMEs, though not on large enterprises. In addition, SMEs' staffs have been upgraded and are able to analyze problems and collect data systematically.

(3) JICA experts have laid down a good consulting system or basic function for consulting. FTPI's counterparts and SMEs can improve their capabilities later on. Besides, the counterparts have self-confidence in their work and have become professional consultants.

(4) Overall impact in terms of image from external viewers was good since FTPI has been well recognized and accepted and trusted by both the Government and industrial sectors. This led to more activities and cooperation.

(5) Machinery and equipment provided by JICA during the Project including F/U are placed in various divisions in the FTPI office, including the library.

3-5. Recommendations

(1) Flexibility in terms of qualification and experience of JICA’s experts/specialist as well as appropriate duration of courses should be flexible to suit the needs and conditions in providing consultation and training activities for target groups.

(2) FTPI should try to maintain the number of the original C/Ps/consultants or increase the number of qualified personals in both consulting and training aspects. Positive incentives should be provided for its technical staff.

(3) FTPI's technical staff should have opportunities to improve their technical knowledge and skills up to advanced level/international standards.

(4) New products should be produced through continuous improvement and cooperation with international organizations, and also to secure FTPI's financial aspect.

3-6. Lessons Learned

(1) Full discussion and adjustments on the time allocation and qualifications of JICA experts/specialists and FTPI's counterparts are essential to secure not only smooth project management, but also technical satisfaction of the impact of the Project.

(2) Due to the economic crisis, the time set for training (6 months) was too long for problem solving. A short cut process and top-management knowledge and skills must be practiced.

(3) Failure to secure an absolute number of trained counterparts might be one of the prohibiting factors to obtaining more satisfaction (>50 percent) from the Project.

3-7. Follow-up Situation

N/A