technology audit case studies final

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TECHNOLOGY AUDIT (TA)

Case Studies Food Industry

By

Technology Transfer Centre (AU)

Prepared by

Prof Dr. Magdi El Messiry

Dr. Khaled El Saadany

Eng. Dina Roushdy Gohar

June 2013

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Content

Executive summary

First Part

1.1. Structure of Egyptian Industry

1.1. 1. Introduction

1.2. SWOT Analysis of Egyptian Industry

1.3. Summary of Results from the First Part Diagnosis

1.4. Methodology and Instrumentation

1.4.1. Methodology

Second Part

2.1. Problems Identified

2.2. Action Plan

2.2.1. Technology Auditing for the Egyptian Industry

2.2.2. Training Action Plan Template

2.3. Results of the Activities

2.4 Examples of Case Studies

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Executive summary

The primary purpose of a technology audit is to create an accurate list of

all of the technology-related equipment and programs owned or operated by an

organization. There are three areas of focus for a technology audit: production line,

technology, human resources infrastructure. A technology audit typically is completed

once per year as part of the organization's year-end procedures. The data collected

during a technology audit is used to create a snapshot of the current level of technology

benchmark. For financial statements, equipment valuations can be updated based on

the auditing results. The other use for this data is to create benchmarks for long-term

and short-term technology plans. Technical audits can cover a wide variety of reviews

relating to business practices. Companies use audits as an objective review of business

and operational activities. Auditors will use a checklist that outlines the specific activities

which they must follow when conducting audits.

The objective of the document is a preliminary audit of some SME’s in

several governorates in order to survey their need for technology transfer. The study

deals with the mapping and assessment of some Egyptian technology and innovation

infrastructures. The data was collected by the researchers of the Technology Transfer

Center at (GITIC), ALEXANDRIA UNIVERSITY. Since 2012 the number of carried out

courses are 245 for 3150 trainees.

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FIRST PART

1.1 STRUCTURE OF EGYPTIAN INDUSTRY

1.1 Introduction

The Egyptian industry can be divided into the following sectors;

Pharmaceutical Products

Jewelry Sector

Textiles and Apparel

Industry

Processing

Materials

iture

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It consists of about 2995762 Establishments with total investment costs of about

3.500 billion EG (2009).

The number of the workers in the different industries reaches 1.9 million (2009).

Table (1) shows the total number of companies and their distribution by the

different industrial activities.

Table (1). Total Number of Factories Registered in IDA and Distributed by

Industrial Activities

Activity No. of

Establishments

Investment

Costs

Production

Value

No. of

Labor

Annual

Wages

Worker's

Average

Wage

Pound

Productivity

/ Wage

Intensity of

Invested

Money

Factory's

Average

Production

Value

Plant & Animal

Production 24 207 337 1957 12 0.0568 30.6 2.6 14.7

Coal

Extraction &Processing

4 424 85 950 10 0.01081 7 0.4 35

Petroleum &

Refining &

Natural Gas

Products

17 42350 30037 24486 369 0.03018 40.7 1.7 1876.9

Mineral Ore Extraction

2 237 137 882 10 0.01134 13.7 0.3 68.5

Mines &

Quarries

Exploitation

47 473 275 6411 51 0.00794 5.5 0.1 5.8

Foodstuffs &

Beverages &

Tobacco

6052 49146 96562 527280 2367 0.00819 41.1 0.2 15.5

Spinning & Textile &

Clothing &

Leather

6480 28339 41834 450281 2197 0.00482 18.9 0.1 6.3

Wood and its Products

2598 5897 8042 33000 210 0.00633 38.5 0.2 3.1

Paper & Paper

Products &

Printing & Publishing

1752 11366 9024 66042 437 0.00663 20.1 0.2 5.1

Basic Chemicals

and their

Products

3505 51597 66517 206012 2621 0.01125 27.6 0.3 18.4

Building

Materials &

Ceramic & Chinaware &

Refractories

2054 27812 23611 118477 1041 0.00899 21.2 0.2 11

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Basic Metallic 599 40931 61506 73109 1233 0.01637 44 0.6 87.5

Engineering & Electronic &

Electrical

Industries

7555 50531 112251 281556 2585 0.03194 12.2 0.2 18.9

Other

Manufacturing

Industries

568 1151 7885 8674 39 0.00458 192.2 0.1 13.9

Lighting Electricity &

Power

Production and Distribution

33 36059 7360 20002 258 0.01290 26.3 1.8 206

Service &

Maintenance

Centers

64 1540 59 2814 12 0.00424 4.9 0.6 0.9

TOTAL 29576 348063 465523 1821933 13450 0.01255 22.6 0.2 15.1

NB: (production value – investment costs – wages) in million LE. Source: IDA, 2/2/2009

Table (2) shows the distribution of the companies holding operation license in

different governorates. This indicates that most of establishments are

concentrated in Cairo and Alexandria governorates.

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Table (2). Total number of industrial establishments holding operating licenses

in governorates (40,000 establishments)

(value in million LE)

Governorate No.of Establishments Investments No. of Labor Wages

Cairo 9676 39309 330504 3371

Alexandria 3329 100313 228801 6674

Port Said 372 3527 25984 228

Suez 136 24883 32536 555

Damietta 1100 3624 17699 103

Dakahlia 1502 5112 37286 249

Sharkia 4260 36283 223260 1471

Qaliubia 4120 36169 119100 2568

Kafr El Sheikh 541 1734 10320 74

Gharbia 2492 6496 99248 509

Menoufia 2568 13562 65541 384

Beheira 1592 6678 50743 696

Ismailia 202 2519 21352 174

Giza 2951 45321 215292 2057

Beni Sueif 696 2267 10163 63

Fayoum 215 2737 11369 78

Minya 403 1962 14298 101

Assiut 1015 8402 17841 153

Sohag 3182 5828 50831 313

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Qena 173 8693 20822 295

Aswan 263 3770 14299 195

Luxor 16 6 238 1

Red Sea 119 551 6566 56

New Valley 48 1587 2212 12

Marsa Matruh 35 594 939 13

N. Sinai 972 2345 3987 41

S. Sinai 17 5748 4624 97

TOTAL 41996 369968 1735855 20530

Source: IDA, 15/10/2008

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2 - SWOT ANALYSIS OF EGYPTIAN INDUSTRY

The SWOT analysis for the Egyptian Industry * results in the main points that

determine STRENGTH, WEAKNESSES, OPPORTUNITIES and THREATS

facing the Egyptian Industry, which are;

FIG.(1) SWOT analysis relations

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STRENGTH

Well-diversified industrial base

Abundant cheap labor

Relatively-developed infrastructure base

Strategic location

Low cost of production inputs (energy and utilities)

WEAKNESSES

Low manufacturing value added per capita

Manufactured exports structure dominated by resource-

based and low-tech exports

Mismatch between output of education system and industry

skill needs

Low labor productivity in manufacturing

Insufficient R&D activities and low technological capabilities

Non-compliance of domestic products with international

standards

Unfavorable business conditions for SME’s

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OPPORTUNITIES

Ongoing policy reforms pave the way for launching a full-

fledged industrialization strategy

Ongoing reforms in the business environment encourage

private investment

Capitalizing on bilateral and regional trade agreements

Large capital surplus in the Gulf region due to oil prices

could be attracted

THREATS

Continued inward-orientation and relying on the domestic

market

Marginalization in the global economy (failing export)

Intense global competition in low-wage activities from late

comers (mainly China and India)

Declining competitiveness due to low technological

upgrading

================

*http://www.imc-egypt.org/studies/FullReport/Egypt%20National%20Industrial%20Development%20Strategy_EN.pdf Egypt’s

Industrial Development Strategy Industry: The Engine of Growth

http://www.imc-egypt.org/studies/FullReport/Egypt%20National%20Industrial%20Development%20Strategy_EN.pdf

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1.4. SUMMARY OF RESULTS FROM THE FIRST PART DIAGNOSIS

One of the weakness fundamentals is low labour productivity in the production,

mismatch between output of education system and industry skill needs, moreover

the unavailability of the skilled labour. This was the main target of the technology

audit concerned in this phase.

1.5 METHODOLOGY AND INSTRUMENTATION

1.5.1. Methodology

Table (3) Structure Methodology of Technology Audit

STEP OBJECTIVES TIME

Appointment • Finding the company and the right

person to contact.

• Contact and appointment.

1 day

Preparation

• Forward information to the company

• Self assessment and research

1

Auditing • Interview with key people and visit

facilities

1 day

Follow up Reporting to the company.

Receiving interest from the company

Set a real action plan

Keep a long term relationship

2 – 4 days

1 – 2 weeks

Questionnaire for the visit

To find technology transfer opportunities, it is very useful to define a

questionnaire to follow.

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Main Parts of the questionnaire:

Questions about the company

Questions to find needs or opportunities

Tools for gathering information and defining

the strategy and/or priorities

The questionnaire for the visit should contain as the following;

AREA

CONTENT

About the company Basic information, data,

activities.

Identifiying needs Questions for detecting

needs, tech. opportunities,

problems, interests

Tools Tables and tools to fill

with data

Copy of the designed questionnaires and the visit reports are given in appendix (I).

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SECOND PART

2.1. Problems identified

For this study 50 companies were chosen. Their training requirement was defined

as a need for upgrading the existing employees and newly employed. For this

purpose, the Technology Transfer Center at Alexandria University organized visits

and meetings to each company and planned the necessary courses, as given in

Figure (). The courses are classified according to the following areas:

TECHNOLOGY PROCEDURES

COMPUTER & INFORMATION TECHNOLOGY SKILLS

PERSONAL & PRODUCT SAFETY

COMMUNICATION SKILLS

TEAM WORK CAPABILITY

LABOUR LAW

ACCURACY & REGULATIONS

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Fig. (2) Analysis of the companies’ requirements

The courses were designed and prepared by the experts of Alexandria University

and presented either on job training or at class training according to the request of

the company.

A contract with the company was signed to employ the trainees after they

successfully passed the required courses.

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2.2. Action plan

2.2.1 Technology Auditing for the Egyptian Industry

The Technology Transfer Center at Alexandria University made a survey for the

diverse needs of the companies in the different areas of Egypt. It was found that

one of the most handicaps in all areas is the level of technical employees and they

need special skills essential for modern technology. Therefore, it was sought after

to start designing the training programs to fulfill the requirements of each mill. For

this purpose, groups of researchers were formed to survey the training

requirements on the number of the employees for these training modules. After

each visit, the questionnaire, shown below, was filled. For successful trainee the

company will guarantee him/her the job.

Fig. 3 Distribution of the serviced companies by governorate

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Starting from June 2012, there have been several visits to a number of the

industrial companies with the following main purposes:

1) Assess their technology used in terms of effectiveness and

competitiveness.

2) Carry out research and development activities based on the company's

needs.

3) Determine each company's competitive advantage.

4) Offer local and international experts in the company's field of

manufacturing.

5) Train current employees on technical and soft skills.

6) Identify the number of vacancies available in each company to help them

employ job seekers after getting the training needed to do the job.

2.2.2 Training action plan template

Table ( ) gives the action plan template used for the determination of the training

requirements for each company.

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Table (4) Training action plan template

Training Action Plan Template

What Who When Where How Complete

Briefly

describe

what

training is

required

Who needs

to be

trained?

Training

date(s)

and

time(s)

Venue /

location for

the training

What method

will be used to

provide the

training – e.g.,

toolbox

meeting,

coaching,

formal

training

course,

simulation

exercise, etc

Sign and date

when the

training is

complete

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The company addressed should agree on the action plan before the course is

tailored. This is prepared through the meeting of our researcher and the

representatives of the company.

2.3 Results of the activities

Figure (1) shows the distribution of serviced companies by governorate, while

Table (5) gives the number of companies served by Technology Transfer Center in

different governorates.

Table (5) Number of served companies in the different Egyptian governorates

Frequency Governorate No

34 Alexandria 1

25 Cairo 2

10 Buhaira 3

9 Elsharkia 4

6 Elmonofya 5

7 Elmenia 6

4 Benisuief 7

3 Qena 8

1 Sharm El Sheikh 9

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The services involved only in two sectors at the present stage, Food and Textile

Sector. This was due to the fact that the major number in the mills in the Egyptian

industry is the Food and Textile industry.

Table (6) Number of the companies and trainees served by SME’s by sectors

Number of trainees Number of companies Sector

3139 90 Food 1

11 1 Textile 2

Table (5) gives the number of courses and number of trainees classified by the

course category.

Table (7) Classification of the training courses

Number of

courses

Number of trainee

1 Machinery maintenance 7 80

2 Soft skills 101 938

3 Food technology 24 363

4 Poultry technology 2 22

5 Dairy technology 5 94

6 Agro-Technology 29 508

7 Personal and Industrial hygiene 33 516

8 Food safety 11 132

9 Management skills 8 121

10 Miscellaneous 25 376

11 Total 245 3150

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Figure ( ) and Figure ( ) indicate that the soft skills courses were the highest in the

number and number of the trainees.

Fig. (4) Comparison between numbers of trained courses

Fig. (5) Comparison between numbers of trainees

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2.4. EXAMPLES OF CASE STUDIES

CASE 1

COMPANY

Givrex

EMPLOYEES

NUMBER

500

PROJECT

IMPLEMENTATION

2013 ACTIVITY

Frozen fruits &

vegetables

Problems in: Computer illiterate staff – hygiene requirements- business ethics.

Employees needed more training on IT, personal higiene, & work ethics.

PROJECT CARRIED OUT:

Special coures were designed and accomplished. After achieving the required

results, the employer asked for more trainings courses on Decison making & Time

management.

………………………………………………………………………………………

CASE 2

COMPANY

Dakahlia Co.

EMPLOYEES

NUMBER

180

PROJECT

IMPLEMENTATION

2012 ACTIVITY

Agriculture

Problems in: Computer illiterate staff – hygiene requirements - business ethics -

team work deficiency.


The required courses were designed and taught, however the employees needed

more training on IT, Personal hygiene, Team work, Work ethics, Puntuality. The

training environment was not very suitable, but changes were made to improve it.

………………………………………………………………………………………

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CASE 3

COMPANY

Domty EMPLOYEES

NUMBER

25

PROJECT

IMPLEMENTATION

2012 ACTIVITY

Food

Technology

Problems in: Employees needed training on Communication skills, Team work, &

Punctuality.


The training was a bit long for the trainees, so it was decided not to exceed 4

training hours/day.

…………………………………………………………………………………

CASE 4

COMPANY

Al etehad al

esteshary

EMPLOYEES

NUMBER

60

PROJECT

IMPLEMENTATION

2013 ACTIVITY

Food

technology

Problems in: Trainings needed for Agriculture engineers & labour.


Special courses in food technology were presented for the engineers.

………………………………………………………………………………………

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CASE 5

COMPANY

French Group EMPLOYEES

NUMBER

15

PROJECT

IMPLEMENTATION

2012 ACTIVITY

irrigation

Problems in: The irrigation system needed some modification. The irrigation

technicians needed to be trained.


The irrigation system was modified using specially designed models to ensure

water access to high and remote places along with the maintenance. Training

basics and the irrigation network development courses were implemented.

…………………………………………………………………………

CASE 6

COMPANY

Chuck Wood

Restaurant

EMPLOYEES

NUMBERS

14

PROJECT

IMPLEMENTATION

2012 ACTIVITY

Restaurant

services

Problems in: Lack of sufficient expertise & unqualified labour to prepare fast food.

Personal hygiene & food sanitation issues.


. The project team provided them with qualified training.

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CASE 7

COMPANY

Mass Food

International

EMPLOYEES

NUMBER

200

PROJECT

IMPLEMENTATION

2012 ACTIVITY

Food

technology

Problems in: Employees needed training in the different fields as well as more

training on Personal higiene.


The courses in core subjects of the food technology were developed.

………………………………………………………………………………………

CASE 8

COMPANY

unifood EMPLOYEES

NUMBER

160

PROJECT

IMPLEMENTATION

2013 ACTIVITY

Food

technology

Problems in: Employees had insuficient skills in the áreas of IT, work ethics, &

punctuality.


The especial courses in required subjects were developed.

………………………………………………………………………………………

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CASE 9

COMPANY

Speria Egypt EMPLOYEES

NUMBER

550

PROJECT

IMPLEMENTATION

2012 ACTIVITY

Plastics

Problems in: IT, communication, team work, work ethics, & punctuality.


The Project prepared the required personel with the skills suit technical need of a

new production line established in the company.

………………………………………………………………………………………

CASE 10

COMPANY

Chuck Wood

Restaurant

EMPLOYEES

NUMBER

14

PROJECT

IMPLEMENTATION

2012 ACTIVITY

Restaurant

services

Problems in: menúe design


The Project developed new menues & the Project expert trained the staff on new

menu preparation.

………………………………………………………………………………………

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Appendix I

1 - FORM No.1: IDENTIFING TRAINING NEEDS SURVEY FORM

2 - FORM No.2: IDENTIFING NEEDS OF THE NEW TECHNICAL LABOUR

3 - FORM No.3: EVALUATION AND FOLLOW-UP

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FORM No.1 IDENTIFING TRAINING NEEDS SURVEY FORM

استمارة استطالع تحديد االحتياجات التدريبية القائم باالستطالع: أوالً بيانات عامة:

اسم الشركة: النشاط االساسى للشركة: رقم السجل التجارى أو الصناعى: التليفون: الفاكس:العنوان:

:E-mailلمسئول: الوظيفة:اسم ا رقم المحمول : رقم هاتف العمل:

بيان العمالةاجمالى عدد الموظفين

و العاملين

عمالة مساعدة عمالة إدارية عمالة فنية

مؤقتة دائمة مؤقتة دائمة مؤقتة دائمة

األعداد

اسم القائم بالمقابلة: التاريخ:

ثانياً: التدريب بالشركة:

أمام أوجه القصور ( ما هى أوجه القصور فى المعارف و المهارات التى ترونها فى هؤالء العاملين ؟ )ضع عالمة

المهاراتأوجه القصورفى المعارف و م

المعلومات و المعارف المتعلقة بالوظيفة 1

مهارات الكمبيوتر وتكنولوجيا المعلومات 2

اتباع تعليمات الصحة و سالمة الغذاء و السالمة المهنية 3

مهارات االتصال 4

امكانية العمل كفريق 5

االلمام بقانون العمل 6

الدقة و االنضباط 7

م يتم ذكرها:أوجه قصور ل 8

..............................................................................................

ال هل يوجد بالشركة/ المصنع أدارة تدريب؟ نعم -

ال نعم هل يوجد بالشركة /المصنع مركز تدريب؟ -

يرجى تحديد احتياجتكم التدريبية من منظوركم لكل حرفة أو مهنة فى الجدول التالى: -

الحرفة)المهنة( المستوى الوظيفى

.....(-مشرف -مهندس–)عامل البرامج التدريبية المطلوبة

العدد المطلوب تدريبه

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_____________ بأن كل البيانات الواردة أعاله صحيحة .نقر نحن شركة _____

التوقيع : أسم المسئول :

التاريخ :

ختم الشركة :

30

FORM No. 2

R UNEEDS OF THE NEW TECHNICAL LABOING IDENTIF

تحديد االحتياجات من العمالة الفنية الجديدة

أوالً بيانات عامة:

اسم الشركة: النشاط االساسى للشركة:

لتجاري أوالصناعي :رقم السجل ا

العنوان : الفاكس: التليفون:

:E-mailاسم صاحب الشركة : الوظيفة:

رقم هاتف العمل : رقم المحمول :

بيان العمالةاجمالى عدد الموظفين و

العاملين

دةعمالة مساع عمالة إدارية عمالة فنية

مؤقتة دائمة مؤقتة دائمة مؤقتة دائمة

األعداد

اسم القائم بالمقابلة: التاريخ:

ثانياً: موقف العمال و التوظيف و التدريب بالشركة:

:الفنية بالشركة أوالتدريب المهنى ضمن العمالة هل يوجد خريجين من التعليم الفنى أو الزراعي -

نعم ال

اذا كانت االجابة نعم فكم عددهم .............

أمام أوجه القصور ( ضع عالمة ما هى أوجه القصور فى المعارف و المهارات التى ترونها فى هؤالء العاملين ؟ )

صورفى المعارف و المهاراتأوجه الق م

بالوظيفة المتعلقة والمعارف المعلومات 1

المعلومات الكمبيوتروتكنولوجيا مهارات 2

اتباع تعليمات الصحة و سالمة الغذاء و السالمة المهنية 3

مهارات االتصال 4

امكانية العمل كفريق 5

االلمام بقانون العمل 6

الدقة و االنضباط 7

أوجه قصور لم يتم ذكرها: 8 .......................................................

.......................................

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هل يوجد بالشركة/ المصنع أدارة تدريب نعم ال -

ال نعم هل يوجد بالشركة /المصنع مركز تدريب -

كيف تقوم الشركة بالحصول على احتياجتها من العمالة الجديدة؟ -

االعالن بالصحف االعالن الداخلى االعتماد على العالقات

العمال أو الموظفين أنفسهم الحصول عليها من مصانع/شركات أخرى

شاكل فى توفير احتياجتها من العمالة الفنية الجديدة ؟ هل تواجه الشركة م -

نعم ال

o اذا كانت االجابة بنعم فما هى المشاكل ؟

ضعف مستوى المتقدمين عدم توافر العمالة

توفير اإلقامة للعاملين من خارج ارتفاع أجور العاملين من خارج المحافظة

كيف تقوم الشركة بتأهيل العمالة الفنية الجديدة للعمل بها؟ -

من خالل دورات تدريبية منتظمة من خالل التدريب بالممارسة أثناء العمل

طرق أخرى ) تذكر(

ما هو معدل دوران العمالة بالشركة / المصنع سنوياً؟

يد احتياجتكم التدريبية من منظوركم لكل حرفة أو مهنة فى الجدول التالى:يرجى تحد -

البرامج التدريبية المطلوبة الوظيفة المطلوبة العدد المطلوب تدريبه

و توظيفه

نقر نحن شركة __________________ بأن كل البيانات الواردة أعاله صحيحة .

أسم المسئول : قيع :التو

التاريخ :

ختم الشركة :

32

FORM No.3

Evaluation and Follow-Up

استمارة التقببم والمتابعة

؟ كم عدد من قاموا بالتدريب -1

اء من قامو بالتدريب ؟ ماهي اسم -2

من قام بالتدريب العملي ومن قام بالتدريب النظري؟ -3

مامدي جودة المادة العلمية وتطابقها مع العمل ؟ -4

ماهي نسبة العملي الي النظري ؟ -5

ماذا عن المدة الزمنية للبرنامج ؟ -6

التدريب من أجل التوظيف؟ ماذا عن امكانية الوصول للمكان في حالة -7

ماذا عن جودة العدد واألدوات والمعامل داخل المصنع ؟ -8

ماذا عن اتساع قاعة التدريب؟ -9

ما مدى تطبيقهم للمعلومات التى اكتسبوها؟ -11

؟ post & pre testهل يوجد -11

هل تم اعالمهم مسبقا بوجود امتحان فى نهاية الدورة؟ -12

للمصنع قبل بدء الدورة؟ TNAهل تم عمل -13

ريبهم؟ كم عدد الذين تم تد -14

هل يوصون اخرين بحضور مثل هذه الدورات؟ -15

هذه مجرد اسئلة استرشادية و يمكن اضافة المزيد