Appreciate the kind courtesy, support and cooperation extended by The Industrial Committee Chamber Of Commerce, Eastern

1. Enterprise Performance ImprovementCentre, GOLEM IMS GMBH, Vienna, Austria Elite Training Programs Center (ETPC) Jubail Industrial City, Kingdom Of Saudi Arabia & Appreciate the kind courtesy, support and cooperation extended by The Industrial Committee Chamber Of Commerce, Eastern Province, Dammam Saudi Arabia for the arrangements and assistance in presentation of UNIDO Business Performance Solutions for Industrial Entrepreneurs and Managers

2. Presenters For the Evening Business Performance Solutions For Entrepreneurs and Managers by Dr. Serge Golovanov Client Support For UNIDO Business Performance Solutions by Narayana Sharma

3. President of GOLEM IMS GmbH as of 1990 • UNIDO Expert and International Consultant for nearly 20 years • Member of Board INSME Association • International Network for Small & Medium Enterprises • Dipl. Engineer, PhD in Systems and Computer Sciences Dr. Serge Golovanov Enterprise Performance Improvement Centre GOLEM IMS GMBH, Vienna, Austria www.win2biz.com e-mail: info@win2biz.com Member of INSME Association, Rome, Italy Official Development,Training and Support Center for UNIDO Business Performance Management Software

4. UNIDO Expert and International Consultant for nearly 20 years • President of GOLEM IMS GmbH • Member of Board INSME Association • International Network for Small & Medium Enterprises • Dipl. Engineer, PhD in Systems and Computer Sciences Dr. Serge Golovanov SOME OF THE UNIDO INTERNATIONAL PROGRAMMES ACCOMPLISHED DUBAI: Keynote speaker, First Int. Conference on Small & Medium Enterprises, Department of Economic Development – Government of Dubai, 2005 PalestineImproving Business Performance by Introducing Continuous Improvement Practices based on UNIDO Business Performance Management Software, 2004-2005 LEBANON: “Introducing measurement tools for continuous improvements in quality, efficiency, productivity and competitiveness in manufacturing”Association of Lebaneese Industries, UNIDO, Euro-Lebanese Centre for Industrial Modernization TURKEY 2004: "SMEs Competing in a Knowledge Economy“, Speaker at OECD Ministerial Conference for SME” EGYPT: "Application of UNIDO benchmarking and business excellence tools Pharos + Produce-Plus + FIT"for enterprise upgrading, strategic and production management of industrial enterprises” IMC/UNIDO workshops 2004

5. UNIDO Expert and International Consultant for nearly 20 years • President of GOLEM IMS GmbH • Member of Board, INSME Association • International Network for Small & Medium Enterprises • Dipl. Engineer, PhD in Systems and Computer Sciences Dr. Serge Golovanov SOME OF THE UNIDO INTERNATIONAL PROGRAMMES ACCOMPLISHED contd… BAHRAIN: "Strategic and production management of industrial enterprise: application of UNIDO benchmarking and business excellence tools Pharos + Produce-Plus"UNIDO ITPO/ARCEIT office, Manama, 2003 COLOMBIA: “Improving Productivity, Quality and Competitiveness of Colombian Industries”, Programme UNIDO-Ministry of Economics and Transportation, 2002-2004 ITALY: “INSME THINK TANK”, The International Network for Small and Medium Sized Enterprises” INSME 2004 SWEDEN 2004 and BARCELONA 2005: INSME Association Committee Meetings,INSME RUSSIAN FEDERATION:" Sustainable Industrial Development and Competitiveness” Siktivkar, Komi, 1999 INDIA: “Strengthening of Small and Medium automotive component suppliers to deliver export quality products in India” ACMA -UNIDO Programme 1999

6. Company: GOLEM IMS GmbH • Activities: Development of Information Technology tools for entrepreneurs, training, consulting • Location: Vienna, Austria • Established: June 1990 • Portal: www.golem.at

7. Manager, UNIDO FOCAL POINT – NATIONAL TRAINING CENTRE FOR ENTERPRISE PERFORMANCE IMPROVEMENT, (NTCEOI-PEDC, Bangalore, India) AMIE - Electronics & Commn. Eng, IEI, Kolkatta Narayana Sharma • Industrial Technical Practitioner with wealth of 10 years experience and expertise on production/factory issues covering: • Industrial Sector Specialty • Fabrication • Electronic Equipment • Food • Equipment Specialization at Principal facilities in US, Germany & Switzerland • Automated & Portable Test systems for Electrical Rotating Machines • Electro-Optic Systems - Spectroradiometers, Photometers, Radiometers • Automotive Sensors • Calibration Systems for Temperature, Pressure, Humidity & Electrical Parameters

8. Manager, UNIDO FOCAL POINT – NATIONAL TRAINING CENTRE FOR ENTERPRISE PERFORMANCE IMPROVEMENT, (NTCEOI-PEDC, Bangalore, India) AMIE - Electronics & Commn. Eng, IEI, Kolkatta Narayana Sharma Developed Sustainable Business Model For Productivity Improvement in association with Indian Institute of Management, Bangalore • Expertise in Productivity Improvement Areas • Waste Management • Waste reduction • Process improvement & optimization • Efficiency improvement in processes & machinery • Lean manufacturing (produce maximum with existing infrastructure) • Creative Engineering • Layout improvement • Handling improvement

9. UNIDO Business Performance Management Solutions for Entrepreneurs by Dr. Serge Golovanov

10. Focus on Small and Medium-sized enterprises (SME)

11. THE ENTERPRISE’S EXISTING INFRASTRUCTURE You have set visions, missions and targets for your business based on a defined capacity of your manufacturing enterprise THE ENTERPRISE’S GROWTH PROSPECTS You also know globalization brings new challenges as well as export opportunities to your manufacturing enterprises

12. This also means the manufacturing enterprise must achieve:Competitiveness (Quality, Price, Delivery & Safety)Capability (Technical, Material & Process)Stability (long term enterprise vision and financial)Resourcefulness (management, human resources and staff training)

13. Now the Question is…How Do You Find Out Whether Your Business Is Under-performing or Over-performing Its Capacity Towards Realizing Your Visions, Missions And Targets?

14. Let’s take a positive example, “A Manufacturing Company set a target/budget for exports and profits for 1st Q 2005 and it achieved 25% more”‘Why did the management under-estimate their performance and what are the possible reasons? Let’s take a simple negative example, “A Manufacturing Company set a target/budget for exports and profits for 1st Q 2005 but it did not achieve it”‘Why did the management over-estimate their performance and what are the possible reasons? Several reasons could cause these results. The need to identify the present performance indicators of the business and monitor them is key issue to address.

15. Thus you need to measure & monitor1) The present performance indicators to take corrective actions & 2) Also get an idea of the trend of your business(Where is your business ship sailing to?)

16. Sailing to target destination Target (Promised Land) Ideal path Initial position

17. Sailing with navigation

18. Sailing without navigation New technologies do not help reaching the target but can make failure impact more costly and severe! (e.g. new engine, design or construction of the ship do not change the outcome )

19. You also may need to do this performance monitoring exercise • Accurately • Scientifically • Efficiently • Cost-effectively • Frequently (possibly hourly, daily or weekly) and • Easily

20. UNIDO’s Enterprise Business Performance Management Improvement Solution A Tried and Tested One worldwide! • It’s • Accurate (for the minimized data collected) • Scientific (UNIDO developed methodology) • Efficient (improves actual business results) • Cost-effective (investment vis results) • Frequent (available 24/7 if the data is fed in) • Easy-To-Use (see example further)

21. Let us examine some of the important aspects and results achieved using this solution

22. SME Issues and Discussions worldwide: • Economic Development • Financing and Taxation • Entrepreneurship • Innovations and Technology Transfer • Needs for effective Training and Support • Environmental impact • Impact of all these issues on sustainability of economies in countries • . . .

23. Speakers analyse problems by • Geo-positioning • Cultures • Training areas • Case studies • Statistics, statistics & statistics in countries, sectors, regions (%, %, %) • Opinions and Conclusions • * * *

24. However there is always the same common issue left: What are the practical actions to achieve positive change in controllable way ?

25. Customer aspects

26. Entrepreneurs & Management in Industries are looking for: • Culture in business planning, monitoring and measurement • Understanding and using Total Quality Management principles • Structured practical management inContinuous Improvement • Resources and knowledge to introduce and effectively use IT tools for business monitoring, measurement and decision preparation • Interest / support by suppliers of ICT tools & consulting services • Possibility obtaining know-how and training in performance management (busy, no funds, costly training, not well targeted, etc) • Assistance by Regional Governments, Associations, Chambers, etc. in building capacity to improve the situation

27. Challenges facing entrepreneurs: • High losses, Inefficiencies and little knowledge of actual figures!-where it is going wrong? • Major decisions demand quality preparation and evaluation in necessary detail, be compared by consequences, optimized and monitored in implementation • The potential is underutilized, developments are risky, results may be unpredictable and unexpected!

28. ? SME mortality rate after successful start-up is high due to premature death of SMEs caused by uncontrollable losses and non- efficiencies unknown to management Actual data by San Paulo Department of Statistics, Brazil: 5 billion dollars lost and 530 thousands jobs in the medium and low range of manpower are lost within one year in San Paulo State only. 1,000,000 businesses closed between 1990-2002 just in the State of San Paulo worth of 62 billion dollars in invoicing and consequent losses in taxes. (Source: Newspaper “O Estado de San Paulo”, Economy and Business Section, 4th December 2003) Similar situation exists in other developing countries lacking of official statistics. Result:Most of SMEs are running life time experiment “W i n or D i e” !

29. Estimations of lost gross profit (GP) due to various inefficiencies, per annum Enterprise Group 1 (GP € 400,000): 54,900 € Enterprise Group 2 (GP € 3,000,000): 215,500 € The price of ignorance(UK case studies, CoVE and MII, food industry):

30. Overall Productivity Increase (or value Added/person) + 9% Improved Efficiency + 18% Improved Gross Profit + 25% Reduction in Labour cost - 15% Overall Effective Efficiency increase + 5% Acceleration of business development - 6 years Average enterprise improvement results benchmarked after the Programme implementations

31. Basic principles of continuous improvement in business • Measuring business results (UNIDO Software) • Identifying problematic areas having measurements data • Formulating optional solutions which can potentially solve problems and bring improvements (new machine, production profile, production team change & control, etc) • Evaluating the options including impact of uncertainties and risks by simulating the major outcomes (scenarios) • Selecting the best (most effective) option • Implementing the best option in practice • Returning to Step 1

32. Vienna Pharos – Business Navigator KSA Produce Plus Financial Improvement Toolkit Components of UNIDO’s Enterprise Business Performance Management Solution Client Support & Consulting on-site Software Suite Training Course Certification Software Installation Data collection & entry, Biz target setup Reports, Export-import Enterprise Professionals Benchmarking Measuring & Improving Business: Developing best practices

33. The Programme Components (Phase 1: Course Training) • Awareness seminars, selecting of enterprises • Training courses for SME management (5 days, < 24 persons per group)

34. The Programme Budget Components(Phase 1: Course Training) 3. Supply of UNIDO Business Performance Measurement & Management Software suites Pharos-Business Navigator, Produce Plus and FIT to participating (at least 2 licenses per enterprise for general and production managers)

35. The Programme Budget Components (Phase 2: On-site consulting & support) • Training and certification of client’s support team • Transfer of know-how, methodology to Enterprise Management, setting best continuous improvement practices (up to 12 months, 1 consultant support up to 10 enterprises, installing software, data collection, business targets, decision support, results’ measurement, etc). • Final results evaluation and reporting, conference

36. Some additional practical outcomes • Pre & Post Programme enterprise benchmarking, diagnostics, performance measuring, production efficiency analysis is made for each participating enterprise (suppliers, non-conformances, planning, production resources' utilization, etc.) • UNIDO Certificates of “Enterprise Business Performance Excellence“ for enterprises and “Business Performance Management Excellence” for entrepreneurs and managers based on benchmarked improvements. • Training of SME managers in presentation of the enterprise performance results to investment and credit institutions

37. Performance management and measuring training Preparing SMEs to introducing innovations Innovative directions of work with SMEs New options in addressing key national priorities by Gov. & Chambers etc Possibilities of launching new development projects New options in increasing scale of business and its image Training of entrepreneurs and managers in Kingdom or in Europe (Austria, UK) Exchanging experiences and benchmarking results between countries International & National Support For Enterprise Growth

38. IMPACTS • When each enterprise is measured and benchmarking reports are available the analysis of industrial sectorsbecomes feasible facilitating as follows: • Policies and recommendations formulation by Chambers & Committees • Legislation adjustments by governments and lawmakers • Innovation and Technology transfer efficiency • Funding & Investment efficiency • Loan & Credit results improvement • Investment climate improvement (by increased transparency of businesses)

39. Implementations • UNIDO integrated programme: the Republic of Komi, Russia Sustainable Industrial Development and Competitiveness, Oct. 1999 • Strengthening of Small and Medium automotive component suppliers to deliver export quality products in India, Nov. 1999, India, New Delhi, Pune, Bangalore, Mumbai, Baroda, Nashik, Ahmednagar. • Application of Quality Principles To The Food Processing Sector of 7 Sub-Sahara African Countries, July 2000 Kenya, Uganda, Tanzania, Zambia, Ethiopia, and Zimbabwe. • 4. Application of Quality Principles To The Leather Production Sector in Egypt, April 2001, Cairo, Egypt • 5. Integrated Programme for Columbia, 4 industrial sectors, Ibage, Pereira (Eje Cafetero), Barrancabermeja.

40. 6. The workshop "Strategic and production management of industrial enterprise: application of UNIDO benchmarking and business excellence tools Pharos + Produce-Plus", UNIDO ITPO/ARCEIT Manama, Bahrain. • 7. The workshops "Application of UNIDO benchmarking and business excellence tools for enterprise upgrading, strategic and production management of industrial enterprises, IMC/UNIDO workshops, Cairo – Alexandria - Borg El Arab, Egypt, February - April 2004. • Introducing UNIDO measurement tools for continuous improvements in quality, efficiency, productivity and competitiveness in manufacturing, Association of Lebanese Industrialists (ALI), Euro-Lebanese Center for Industrial Modernization (ELCIM), Lebanon, June – October 2004. • Palestine Improving Business Performance by Introducing Continuous Improvement Practices based on UNIDO Business Performance Management Software, UNIDO Programme 2004-2005

41. Bahrain UNIDO ITPO/ARCEIT office, Manama Bulgaria BUSINESS CENTER & INCUBATOR ISKAR Ltd., Sofia HIRON Management Consulting Ltd., Sofia Colombia De Williams Servicios, Barrancabermeja ELECTROTÉCNICOS, Barrancabermeja IMSOL, Barrancabermeja INDUSTRIAS PALMIRA, Barrancabermeja MEC LTD., Barrancabermeja METALMAQ, Barrancabermeja METALTEC, Barrancabermeja METCOL, Barrancabermeja REYMOM, Barrancabermeja TALLERES UNIDOS, Barrancabermeja Boston Shoes, Bogota CALZADO ATLAS LDTA, Bogota Curtiembre el Reno ltda, Bogota Esmeralda Leather, Bogota Henry Mouse, Bogota IMACAL De CALZADO Manufacturera, Bogota Industria de Calzado Soani Ltda., Bogota Manufacturas en Cuero V & C Ltda, Bogota Confecciones Caribean S.A, Ibagué Confecciones Cathy Ltda., Ibagué Confecciones Mershy Collection, Ibagué Ibis S.A, Ibagué Industrias Titanic, Ibagué Outsoursing Industrial, Ibagué Plano y Punto Ltda., Ibagué Root & Co Kids Ltda, Ibagué Serviconfección, Ibagué Sheffy Sports, Ibagué Basculas Prometalicos, Manizales CI Plastigoma S.A., Manizales Conelec S.A, Manizales Sinterizados S.A, Manizales Cable Link de Colombia S.A, Pereira GL Ingenieros Ltda., Pereira Industrias de Cables y Partes, Pereira Magom Electroinica, Pereira Normarh Ltda, Pereira Integrando Ltda., Pereira Dosquebradas Chile Universidad de La Frontera, Temuco Egypt Cairo Int’l for Leather Industries Short Shoe Factory Baramki Group Cairo Industry For Leather and Chemicals Arto M Co. Ramadan Chehata Sons Factories Condor Footwear Leather Technology Center FLISC, UNIDO Ministry of Industry and Technology TCAE 2 M Shoes Company ASI-Egypt International customer list

42. Wonder Foods products Glacier Products Ltd. Kuwait Arab Planning Institute, Shuwaikh India Vir Rubber Products, Mumbai Standard Radiators (metal-radiators producer), Baroda Zylog Plastalloys Ltd, Nasik Manikprem Industries, Ahmednagar, Engineering Plastics, Pune ACMA Technical Centre, Delhi Federation of Indian Chambers of Commerce & Industry (FICCI), New Delhi Power & Energy Development Centre, Bangalore Iran The Upgrade & Training Programme is under discussion for 2005-2006 Lebanon Joseph B. Amatoury s.a.r.l Oriental Paper Products Kfarshima General Packaging Industries Cortas Canning & Refrigeration Company s.a.l. TANMIA International customer list OPTIMA Systems Ltd. Siemens Business Services GMBH, Russia Palestine UNIDO Integrated Programme for Palestine Birzeit Pharmaceutical Company NBC-Cocacola ASI- Egypt Pharmacare PLC Sinokrot Food Co Al Haya Food Co. Jerusalem Pharmaceuticals Nassar Invest. Co Ministry of National Economy Gama Pharmaceutical Flefel Co. Russia Center for Executive Education, Siktivkar State University ENIGMA Training and Constructions, Ltd

43. International customer list OPTIMA Systems Ltd. Siemens Business Services GMBH, Russia Slovakia Industrial Management Consulting s.r.o, Bratislava Melli Interiery, s.r.o., Bratislava Sri Lanka University of Kelaniya, Kelaniya Sudan Solutions Company Ltd., Khartoum Thailand Thai Pharos Software Company Ltd., Asian Institute of Technology, Turkey USEGO Consulting, Istanbul Zambia Eureka Chickens Ltd. (Zambia) Meatland Ltd, Lusaka (Zambia) United Kingdom Centre of Vocational Excellence, The Humber Institute of Food and Fisheries, Grimsby, Manufacturing Improvement International Ltd., Grimsby, N E Lincolnshire Hull University MSc Food Standards Science Disposables UK, Ltd. Vickers Laboratories Ltd, Graftons Bakery Ltd. Yorkshire Farm Bakery Ltd Riverside Food Services Ltd. Wensleydale Creamery Ltd. Smales Fish Merchants Ltd. Regal Fish Ltd Kwoks Ltd. Healthfresh Ltd. Bleikers Smokehouse Ltd. Food Design Ltd. Shepherds Purse Ltd. University of Wales Institute, Cardiff Uganda Hwan Sung Ltd., Ngege Ltd Uganda Fish Packers Greenfields Limited

44. C o n c l u s i o n s: • This UNIDO certified service package will help majority of entrepreneurs, industrialists to acquire sufficient knowledge and performance management tools and practices to monitor and measure their businesses, optimize decisions, eliminate inefficiencies systematically and maximizes use of available resources. • The Training and Upgrade Programmes for SMEs introduce best continuous improvement practices and UNIDO IT tools facilitating productivity, competitiveness, quality,sustainable growth. • SMEs become much more transparent and better prepared for national and international investors, improving export potential. • The Training Programmes facilitate entrepreneurs capacity building in introduction and managing of innovations, new technologies.

45. C o n c l u s i o n s (cont) • The Training Programmes facilitate human resource developments, managerial capacity and potential, path to ISO 9000 standardization, meeting WTO requirements, decreasing SME mortality in the regions. • The Training Programmes deliver unique content and provide comprehensive package of services at acceptable cost level resulting in important Knowledge Capital Gain. • Governmental, international and private sector support of the Training Programs is an effective way to boost economic performance and sustainability of industrials sectors. • The programme results are measured and documented providing vital economic and industrial statistics to factory owners and entrepreneurs

46. Training Programme with or without on-site support <3-12 months • The practical instruments exist and proved: Training and Upgrade Programmes for SMEs • The costs of fundamental improvements are reasonable and realistic compared to other options. • The results are measurable and documented. Input: Client procures the Service Package Output: Measurable increase of major indicators including net profits, productivity, etc. The total enterprise service package price depends on the Programme duration, consultants, number of participating enterprises and local cost factors

47. You do need measuring and better controlling the movement of your business vessel. In a sea of competitors, globalization, non-stable markets and fast technology change this solution helps achieving the Promised Land.

48. Client Support For UNIDO Business Performance Solutions by Narayana Sharma

49. ENTERPRISE RESOURCES Capital Equipment, & Infrastructure PRODUCT LABOUR LOSSES & WASTE ENERGY & RAW MATERIAL

50. UNIDO software: Pharos – Business Navigator Produce Plus- Manufacturing Navigator FIT- Financial Improvement Toolkit Suite of simple tools for Business Performance Management & Measurement