CHAPTER 25  Productivity Improvement

Introduction

 

   This chapter presents the current productivity situation, objectives, and strategies to improve productivity in the region. Technologies, best practices and total productivity improvement systems will be utilized at the firm/entity and farm levels and by the individuals. It will be applied to the public and private sectors. Institutions and mechanisms will be established and action plans will be prepared and implemented.

 

Situational Analysis

 

   The regions contribution to the national economy is a measly 2.8 percent in terms of Gross Regional Domestic Product (GRDP). The growth rate of the GRDP is erratic and sluggish at 5.4 to 5 percent from 2003 to 2005. It has decreased in 2006 due to the effects of typhoons Milenyo and Reming on various production and infrastructure sectors. This resulted to a smaller GRDP contribution to the national economy. The services sector provided 44.1 percent, agriculture with 33.5 percent and industry at 22.4 percent. This means that the region is largely a consumer of goods and services and has small exports to other regions and other countries. The regions agriculture products are generally intended for local consumption, only a small portion is exported to other regions and a small portion is likewise manufactured in the region. The production of agriculture and non-agriculture commodities in the region is low, as well as the processing of these commodities. Low agricultural productivity is attributed to the lack of transport access between the farms or points of production to the markets, layered marketing system, difficulty in accessing credit, among others. Trade and industry is generally affected by the high cost of doing business in the region and lack of infrastructure facilities. Tourism needs efficient infrastructure support facilities and services (see Chapters 12-17).

 

   The labor productivity in the region is low valued at P17,366 in year 2005. The regions labor productivity is the fourth lowest in the country compared to other regions.

 

   The Regional Productivity Committee (RPC) is inactive. The Regional Action Agenda for Productivity (RAAP) needs to be updated. The Regional Tripartite, Wage and Productivity Board (RTWPB) has to expand and improve its activities related to productivity improvement.

 

   The challenges on productivity improvement are:

1. Increase yield of agricultural commodities;

2. Develop new agricultural lands for high value, non traditional and exportable crops/commodities;

3. Expand and improve processing agriculture and non-agriculture commodities;

4. Increase exports of agriculture and processed commodities; and

5. Increase productivity of the firm/entity and of the individual in the public and private sectors.

Objectives

 

   The objectives for productivity improvement are:

1. To strengthen productivity improvement institutions at the regional and local levels;

2. To promote and monitor productivity improvement in the public and private sectors; and

3. To make productivity improvement a way of life in Bicol.

Strategies

 

   The strategies that will lead to productivity improvement are:

1. Institution and Linkages. The Regional Productivity Committee (RPC) of the Regional Development Council (RDC) will be strengthened. The RPC will undertake the updating, implementation and monitoring of the action plan for productivity improvement. The RPC will have a Regional Technical Working Group (RTWG). The Regional Tripartite Wages and Productivity Board (RTWPB) will serve as the secretariat of the RPC. The RTWPB will be the lead agency to coordinate and promote productivity improvement activities. The RPC will advocate productivity improvement at the regional and local levels and for the public and private sectors. The LGUs will be encouraged to establish productivity improvement units at the local level.

2. Productivity Improvement Advocacy. Productivity improvement materials,  e.g., websites, CDs, DVDs, brochures, leaflets, multi-media presentations, video presentations, posters, slogans, trainings modules, among others, will be prepared by the RPC in cooperation with the media and LGUs. The productivity improvement materials will be developed consistent with the action plan for productivity improvement, making use of the technologies and showcasing best practices under Science and Technology.

3. Training and Consultancy Services. Training programs, consultancy services and technical assistance related to productivity improvement, e.g., 5S, total quality management, systems improvement, packaging and labeling, methodology improvement, extension of shelf life will be prepared and will be provided to the entities of the government and private sector. For the government sector, priority will be given to the frontline and revenue generating agencies. For the private sector, emphasis will be given to processing, tourism-related activities, services, agriculture and forestry.

4. Measurement of Improvement on Productivity. The RPC will devise a tool and a system to measure improvement on productivity.

5. Recognition of Accomplishments on Productivity Improvement. The RPC and the LGUs will conduct a search on and recognize significant accomplishments on productivity improvement.

6. Filipinovation. Innovations in technologies and processes in pursuit of global competitiveness will be pursued. It shall be comprised of four categories, namely: a) strengthening human capital; b) supporting business incubation and acceleration efforts; c) regenerating the innovation environment; and d) upgrading the Filipino mindset. The first category will be linked to the research consortia in the region for research and development and extension services. The second category will encourage industry participation in incubation, human capital collaboration and establishment of common service facilities. The third will engage stakeholders in improving and streamlining government systems, procedures and policies to encourage innovations. The fourth category will encourage competitive innovation for sustainable development.

Major Programs and Projects

1. ISTIV Productivity Awareness. This is a continuing project of the Regional Tripartite Wage and Productivity Board (RTWPB) in all provinces. It is a values-driven human resource strategy for productivity and quality improvement rooted on the five ideals of a productive individual. stands for industrious, for systematic, for time-conscious, for innovative, and for strong value for work. It is a management concept that recognizes the value of human resources in bringing about the needed changes to improve the quality of goods and services and the productivity of business enterprises.

2. "ISTIV BAYANIHAN" Productivity Enhancement Training Program for BMBEs and Micro Enterprises. This is a continuing project of the RTWPB in all provinces. The project premises that management and workers must share the common values to improve productivity levels of an organization. The concept starts with the individual and eight (8) major attributes, such as: I-Industrious, S-Systematic, T-Time Conscious, I-Innovative, V-Strong Value for Work, plus Re-VISITING Values ING, I-Improvement, N-Neighborliness and G-Growth or additional value for improvement.

3. Productivity Awareness. This is a continuing project of the RTWPB in all provinces. This program will intensify advocacy on productivity awareness throughout the region. It will have a dynamic public information and education program on productivity concepts, tools and applications. It will adhere to effective communication strategies geared at raising the publics consciousness on productivity tools through multi-media and linkages with various private and public organizations.

4. Training and Seminar on Productivity Improvement.  This is a continuing project of the Department of Trade and Industry (DTI) in all provinces. Trainings and seminars on productivity improvement for small and medium enterprises and national government agencies are also conducted

5. 5S.  This is a proposed project of the RTWPB in all provinces. This involves the training and application of the 5S concepts to enhance productivity and services of the national government agencies and LGUs. This project will give recognition to the significant improvement in the work performance and services of government agencies.

6. Total Quality Management (TQM). This is a proposed project of the RTWPB in all provinces. A training program to improve management, systems and processes in the government and private entities which is aimed to improve the quality of service and efficiency.

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