TECHNICAL SPECIFICATIONS Trade Related Technical Assistance (TRTA) Programme-Pakistan

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Component 2: Improved compliance of exported products Result Area 2.2.2: Improving competitiveness in selected pro-poor manufacturing sectors

THE TECHNICAL SPECIFICATIONS FOR PURCHASE OF EQUIPMENT AND SUPPLIES 1. General Background Information The Trade Related Technical Assistance (TRTA II) Programme is a project funded by the European Union (EU) which aims at strengthening the capacity of Pakistan to participate in international trade. The Financing Agreement was signed by the European Commission on 30 June 2009 and countersigned by the Government of Pakistan on 28 August 2009. Total programme value is €10,045,000, made up of funding of € 9,545,000 by the EC and €500,000 contribution from UNIDO, which will manage the overall programme implementation.

The overall objective of the programme is to contribute to poverty reduction and sustainable development in Pakistan. The specific purpose is to support economic integration of Pakistan into the global and regional economy and to stimulate decent work and employment creation by increasing exports and enhancing the enabling climate for international trade. The programme activities are to be implemented through three components:

Component 1: Trade policy capacity building; the expected result is increased relevance and effectiveness of trade policy

Component 2: Export development through improvement of quality infrastructure; the expected result is improved compliance of export products with market requirements

Component 3: Strengthening of the intellectual property rights system; the expected result is a modernized IP system that facilitates increased investment and trade in IP protected goods and services

1.1 As a result of the benchmarking exercise conducted under the TRTA II programme in the cutlery sector it was identified that to improve productivity and

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environmental condition on workspace new technology is required at the polishing stage i-e rolling polish machines. Further investigation has informed that roller machines work best for the knife and dagger industry, whereas, the vibrator ones will work well with tableware and cutlery.

Under the current practices it takes almost a week to prepare a batch of knives, or cutlery. Polishing has been identified as the key bottleneck in the process. Replacing this with a faster technology can bring down the batch production to one day instead of a week. This will considerably reduce the need for inventory investment and also improve quality, environment and employment.

The roller polishing machine, proposed to be installed in a proportion of 3, will sextuple the process by polishing 6 cutlery pieces per minute. Below is the process which the cutlery products have to undergo. Evident from the graph is the break preceding polishing. Thus, focusing on expediting the post-break portion of the process, the roller polishing machine can successfully shorten the polishing time of the full daily output from the preceding steps i.e. 220 dozens of cutlery pieces, from 7 working days to 1 working day.

Within the roller polishing process, there are three processes undertaken by either three separate machines or by one machine with three different rollers sequentially, facilitated by conveyor belts in between. Each step can take up different capacities of cutlery pieces, ranging from 5 to 30 pieces at a time. A sample process is illustrated below with each step taking 5 dozens of cutlery pieces at a time.

5 dozen=10 min 5 dozen=10 min 5 dozen=10 min 5 dozen=10 min 10 dozen=20 min 10 dozen=20 min 10 dozen=20 min 10 dozen=20 min 20 dozen= 40 min 20 dozen= 40 min 20 dozen= 40 min 20 dozen= 40 min

Based on simulations which have been presented below, it can be inferred that the optimal capacity for a machine to take up at a time is the median i.e.: 10 dozens, Page 2 of 6 TECHNICAL SPECIFICATIONS Trade Related Technical Assistance (TRTA) Programme-Pakistan given that it exhibits a manageable number of batches and also has an adequate time lag between each machine.

Polishing: Step 1 Step 2 Step 3 Finishing Total # Initial Time of Lag Batches 5 dozens 8am – 8.10am- 8.20am-430 8.30am- 45 10 min 4pm 4.10pm pm 4.30pm

10 dozens 8am- 8.20am- 8.40am- 9.00-5.00pm 24 20 min 4pm 4.20pm 4.40pm 20 dozens 8am- 8.40am- 9.20am- 9.40am-6pm 14 40 in 4pm 4.40pm 5.20pm

Additionally, such roller polishing machines have inbuilt exhausts and dust absorbers, hence from an environmental aspect, they are more friendly in terms of air pollution and worker health concerns.

1.2 The TRTA II programme will support the following four companies: M/s Manson Industries, Wazirabad M/s Attique Cutlery, Wazirabad M/s Asif & Brothers, Wazirabad M/s Arif & Brothers, Wazirabad Note: The city of Wazirabad is at the drive of 2 hours from Lahore

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2. The Scope of Supply

2.1 The following items should be supplied:

UNIDO REQUIREMENTS TO BE COMPLETED BY THE INVITEE DAP DAP KARAC KARACHI Quantit HI Unit Total item Complianc Item Name and required parameters y price price e*] Remarks Currency Currency Yes/no 0 GENERAL REQUIREMENTS ALL ELECTRICAL EQUIPMENT, PLUGS AND CABLES MUST BE COMPLIANT WITH THE CUTLERY POLISH MACHINES I. Equipment 1 Spoon, fork and knife polish machine 1.1. CUTLERY POLISH MACHINE 4 unit

General Requirements:

Description Min Max Unit Spee Upper shaft 2000 2800 rpm Polishing d Lower shaft 2000 2200 rpm Wheel Length 620 620 mm Maximum horizontal stroke 50 50 mm Maximum vertical Worktable stroke 350 auto mm Upper shaft 5.5 7.5 KW Motor Lower shaft 5.5 7.5 KW 1700 2000 *158 *140 0*14 0*17 Dimensions (L*W*H) 50 00 mm

. The machine can up and down automatically. . The machine forward and backward automatically also . Productivity: 500-800pcs per hour

Cost of recommended spare parts for 1 year, as per supplier’s list. Cost of Installation on site Cost of Commissioning Cost of Training on site Cost of insurance and transportation Total CIF Price

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2.2 Supplier’s General Responsibilities

The supplier shall make its best efforts to ensure that all works will be carried out according to "good quality and adequate accessories". The supplier assumes the overall responsibility for the correct selection, supply, installation, commissioning and training on the operations of the equipments for the successful implementation of the Project.

The supplier shall take into account all the details presented in these TSs and shall request any further information, which is considered necessary for the correct implementation of the Works.

The supplier should be able to provide support and maintenance within Pakistan.

The supplier has to inform whether it has a representative able to provide after sale service [technical support, maintenance, and the provision of spare parts] established in Pakistan.

The supplier should be able to supply, install and train personnel where necessary and also to provide all services needed for the technical reception of the equipment at the four identified companies in Wazirabad, Pakistan mentioned in section 1.2 above by latest the 31st December, 2013.

2.3 Personnel in the Field

The supplier must appoint/nominate a contact person. This person will be the primary contact point for UNIDO and will be responsible for the services of the supplier and especially for the installation. All staff deployed for the training of equipment must be suitably qualified. The supplier is responsible for all allowances, accommodation, transportation and such costs related to its personnel fielded in Pakistan for training. The UNIDO Chief Technical Advisor based in Islamabad, Pakistan will be the primary focal point for UNIDO.

2.4 Reporting A final report (in English) should be submitted by the supplier to UNIDO confirming delivery, installation, training. The report should be provided no later

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than 2 weeks for approval by UNIDO. A Certificate of acceptance countersigned by the end user should be obtained.

2.5. Language

The Official Project communication language shall be English. The drawings, catalogues, illustrations, printed specifications and other documentation related to the present project shall be in English.

3. Guarantee Requirements At least One year guarantee is required.

4. Delivery

Time: Delivery, installation and training should ideally be completed by latest 31 December 2013. (Later date to be agreed between selected supplier and UNIDO).

CIF Karachi Port

Consignee: United Nations Industrial Development Organization (UNIDO) 7th Floor, Serena Business Complex Sector G-5/1, Islamabad Pakistan

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