The Study on Revitalization of Small and Medium Enterprises in Argentina” and Entrusted the Study to Japan International Cooperation Agency (JICA)
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Japan International Cooperation Agency Secretary of Industry, Commerce and Small and Medium Enterprise, Ministry of Economy and Production, Argentina Sub-Secretary of Industry Sub-Secretary of Small and Medium Enterprise and Regional Development National Institute of Industrial Technology The Study on Revitalization of Small and Medium Enterprises in Argentina Final Report MARCH 2006 UNICO INTERNATIONAL CORPORATION Preface In response to a request from the Government of Argentine Republic, the Government of Japan decided to implement “The Study on Revitalization of Small and Medium Enterprises in Argentina” and entrusted the study to Japan International Cooperation Agency (JICA). JICA dispatched a study team led by Mr. MORIGUCHI Toru of UNICO International Corporation, seven times during the period from September 2004 to March 2006. The team held a series of discussions on the study with the officials concerned of the Government of Argentina and conducted related field surveys. After returning to Japan, the team conducted further studies and compiled the final results in this report. I hope this report will contribute to the revitalization of small and medium enterprises in Argentina and to the enhancement of friendly relations between our two countries. I wish to express my sincere appreciation to officials concerned of the Government of Argentina for their close cooperation throughout the study. March 2006 IZAWA Tadashi Vice-President Japan International Cooperation Agency March 2006 Mr. Tadashi IZAWA Vice-President Japan International Cooperation Agency Letter of Transmission Dear Sirs; I would like to submit a final report of the Study on Revitalization of Small and Medium Enterprises in Argentina. The Study is concerned with the manufacturing sector in Argentina, which is now in the process of recovering, gradually but steadily, from a persistent recession followed by national economic crisis. The Government of Argentina, in an attempt to revitalize the sector by using small- and medium-sized enterprises as an engine, is eager to learn from Japan’s SME support policies and programs, including their experience and lessons learned. In particular, it is highly interested in business and production management technology (soft technology) that is considered to be a major source of competitive strength of Japanese manufacturing industries in the world market. As part of the Study, basic surveys were conducted on the current situation of small- and medium-sized manufacturers in the country. Then two model projects were implemented, jointly with personnel of National Institute of Industrial Technology (INTI) – a counterpart organization of the Study, to provide field guidance for selected manufacturers by applying soft technology, while developing a SME database with another counterpart organization, Sub-Secretary of Small and Medium Enterprise and Regional Development (SSPyMEyDR), to promote business relationships between SMEs and large assembly manufacturers. As a result, INTI has gained expertise and experience through the model project and is upgrading resources to step up support activities in the area of soft technology. Also SSPyMEyDR has inaugurated and launched the SME database available to the public. Meanwhile, we propose action programs that are designed to continue the intention and energy of the model projects, i.e., to disseminate and promote basic technologies and to develop an environment to foster and encourage broader inter-company business relationships, which are believed to be an important role of government in the industrial development process that should be primarily left to the working of a market mechanism. We sincerely hope that INTI and SSPyMEyDR will play a leading role in promotion of soft technology, which was the main theme of the Study, in the country’s manufacturing sector by leveraging their nationwide networks and resources. Finally, I would like to express a sincere gratitude to JICA, the Ministry of International Affairs, the Ministry of Economy and Industry, and the Japanese embassy in Argentina for guidance and support extended to the study team in the course of the Study. Also, I would like to express thanks to Sub-Secretary of Industry, SSPyMEyDR, INTI, local governments, private organizations and companies, and other groups and individuals, which have collaborated with this important endeavor. Toru MORIGUCHI Team Leader Study on Revitalization of Small and Medium Enterprises in Argentina Japan International Cooperation Agency UNICO International Corporation INTI made a brochure of the Study, in which the transfer of soft technology to the local SMEs with the experts of the Study Team is presented. “Bolsa de PyME” (SME database) developed as a joint work of SSPyMEyDR and the Study Team was launched in the closing seminar of the Study. Procedure of the closing seminar of the Study on March 2, 2006 in Buenos Aires Abbreviations ADEFA Asociación de Fábricas de Automotores ADERR Agencia de Desarrollo Región Rosario (Rosario Regional Development Agency) ADIMRA Asociación de Industriales Metalúrgicos de la República Argentina AFAC Asociación de Fábricas Argentinas de Componentes AFIP Administración Federal de Ingresos Públicos AFYDREM Asociación Fabricantes y Distribuidores de Repuestos para Automotores de la República Argentina AGE Asesores en Gestión de Empresa AIM Asociación de Industriales Metalúrgicos de Rosario BICE Banco de Inversión y Commercio Exterior, SA BID Banco Interamericano de Desarrollo CAFMA Cámara Argentina de Fabricantes de Maquinaria Agrícola CAP Common Automotive Policy CDE Centro de Desarrollo Empresarial CDTI Centro para el Desarrollo Tecnológico Industrial CEINDEPRO Centro de Investigaciones para el Desarrollo Productivo CEMROS Centro Multipropósito Rosario de INTI CET Common External Tariffs CGI Confederación General de la Industria CIDETER Centro de Investigación y Desarrollo Tecnológico Regional CIF Cost, Insurance, Freight CIME Centro de Investigaciones del Metal Estampado CIME Centro de Investigación de Métodos y Técnicas para Pequeñas y Medianas Empresas CITSAFE Centro de Investigaciones Tecnológicas de la Provincia de Santa Fe DAT Dirección de Asesoramiento Técnico de la Prov. de Sta. Fe EPSAM Environment, Physical Sciences and Applied Mathematics EU European Union FA Flexible Automation FICO Feria Internacional de Córdoba FOGAPyME Fondo de Garantía para la Micro, Pequeña y Mediana Empresa FONAPyME Fondo Nacional de Desarrollo para la Micro, Pequeña y Mediana Empresa FPM Food Processing Machinery GBA Great Buenos Aires GDP Gross Domestic Product GPS Global Positioning System IAS International Accounting Standard i IBQP Instituto Brasilero de Calidad y Productividad ICT Information and Communication Technology IDB Inter-American Development Bank IDEB Instituto de Desarrollo Empresario Bonaerense IMV Innovative International Multi-purpose Vehicle INDEC Institute Nacional de Estadística y Censos INPI Instituto Nacional de Propiedad Industrial INTA Instituto Nacional de Tecnología Agropecuaria INTEMIN Instituto Tecnológico Minero INTI Instituto Nacional de Tecnología Industial ISIC International Standard Industrial Classification for all economic activities JICA Japan International Cooperation Agency JIT Just In Time MERCOSUR Mercado Común del Sur MRP Material Requirement Planning MTySS Ministerio de Trabajo y Seguridad Social OAPLO Organización Argentina de Producción Logística y Operaciones OECD Organization for Economic Cooperation and Development. OEM Original Equipment Manufacturing OJT on-the-job training OLAC Organización Latino-Americana para la Calidad PATI Programas de Asistencia Técnica Integral para la Formación de Empresarios de la Pequeña y Mediana Industria PDE Proyectos de Desarrollo Empresarial PDM Project Design Matrix PRE Programa de Apoyo a la Reestructuración Empresarial REM Replacement Equipment Manufacturing S.G.R. Sociedades de Garantía Recíproca (Society of Mutual Guarantee) SCM Supply Chain Management SEBRAE Servicio Brasilero de Asistencia a Empresas (Brazil SME Promotion Organization) SENAI Servicio Nacional de Asistencia a la Industria SIJP Sistema Integrado de Jubilaciones y Pensiones SLP Systematic Layout Planning SSPyMEyDR SubSecretaría de la Pequeña y Mediana Empresa y Desarrollo Regional SWOT Strength,, Weakness, Opportunity, Threat TPM Total Preventive Maintenance TQC Total Quality Control UADE Universidad Argentina de la Empresa UBO Unión Brasilera para la Calidad UIA Unión Industrial Argentina ii UNIDO United Nations Industrial Development Organization USI Unidad de Sistemas de Información UVT Unidad de Vinculación Tecnológica VA/VE Value Analysis / Value Engineering iii Contents Study Outline........................................................................................................................... 1 1 Background of the Study ........................................................................................... 1 2 Objective of the Study ............................................................................................... 4 3 Sectors and Technologies Covered by the Study ....................................................... 5 4 Components of the Study........................................................................................... 5 4.1 Basic Survey....................................................................................................... 5 4.2 Model Projects.................................................................................................... 6 4.3 Formulation