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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Project of the People’s Republic of China

SAP: 140037

Project title: Intelligent manufacturing technology and its application in small and medium-sized enterprises

Thematic area code GC2, GC21

Starting date: February 1, 2017

Duration: 3 years

Project site: Shanghai, China

Government

coordinating agency: China International Center for Economic and Technical Exchanges (CICETE) of the Ministry of Commerce

Counterpart: Shanghai Qingpu IPEC Modern Industry and IT Service Center (IPEC)

Executing agency/ cooperating agency: United Nations Industrial Development Organization (UNIDO)

Project Inputs:

- UNIDO inputs (from IDF): US$ 530,973

- Counterpart inputs: in-kind input US$ 380,000 from IPEC

- Support costs (....%): US$ 69,027

- Grand Total: US$ 600,000 incl. 13% PSC

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Brief description:

Intelligent Manufacturing (IM) may be understood as a step in the direction of Industry 4.0 and a part of the New Industrial Revolution. IM speaks directly to overcoming challenges, such as productivity, competitiveness and consumer preferences, which small and medium enterprises (SMEs) face on a continuous basis. Thus, the overall objective of the project is to introduce SMEs in Chinese manufacturing to the concept of IM and its attendant ICT needs, increase awareness of its benefits and provide training on its implementation. The objective will be achieved by providing industry and business associations with necessary sector-specific ICT and IM knowledge, practices and training, access to international networks of relevant institutions and experts as well as with tools and methodologies for them to deliver training activities and consultancy services to SMEs. Apart from helping to expand the awareness and knowledge of IM and its application, the project is expected to increase the propensity of SMEs to implement IM systems in their business and manufacturing operations.

The project may be seen as a demonstration one in that it will only be implemented in Shanghai. However, if successful, it is envisaged that the project may be up scaled to include more industrial sectors and/or regions and cities in China.

Approved:

Signature: Date: Name and title:

On behalf of

IPEC: ________________ __________ ___________________

On behalf of

CICETE: ________________ __________ ___________________

On behalf of

UNIDO: ________________ __________ ___________________

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TABLE OF CONTENTS

A. CONTEXT ........................................................................................................................ 4

A.1. Origin of the project .................................................................................................... 4

A.2. Background................................................................................................................... 4

A.3. Challenges addressed by the project .......................................................................... 7

A.4. Expected target beneficiaries ...................................................................................... 8

B. REASONS FOR UNIDO ASSISTANCE ....................................................................... 8

C. THE PROJECT................................................................................................................... 9

C.1. Objective ....................................................................................................................... 9

C.2. UNIDO approach ......................................................................................................... 9

C.2.1. Inception phase .................................................................................................... 11

C.2.2. Implementation phase ........................................................................................ 11

C.3. Project management and coordination .................................................................... 12

C.4. RBM code and theme ................................................................................................. 12

C.5. Expected outcome ...................................................................................................... 13

C.6. Outputs and activities ................................................................................................ 13

C.7. Sustainability of the project ...................................................................................... 14

C.8. Risks ............................................................................................................................ 15

D. INPUTS .............................................................................................................................. 15

D.1. Counterpart inputs .................................................................................................... 15

D.2. UNIDO inputs ............................................................................................................. 15

E. BUDGET (UNIDO COMPONENT)................................................................................ 16

F. MONITORING, REPORTING AND EVALUATION.................................................. 17

G. PRIOR OBLIGATIONS AND PREREQUISITES ....................................................... 18

H. LEGAL CONTEXT .......................................................................................................... 18

J. Timeline of the activities (indicative) ............................................................................... 22

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A. CONTEXT

A.1. Origin of the project

UNIDO first met with the Shanghai Qingpu IPEC Modern Industry and IT Service Center (henceforth IPEC) in May 2013 to discuss this project. Thereafter, UNIDO was approached by the China International Center for Economic and Technical Exchanges (CICETE) in December 2013 to develop and implement a project on information and communications technology (ICT) in Shanghai in cooperation with the IPEC.

A.2. Background

Small and medium-sized enterprises (SMEs) are an important driving force of industrial development in virtually all countries. They play a leading role in creating employment, income and value added services, and function as a seedbed for innovation and development of new technologies.

China is no exception, with SMEs providing around 80% of total employment 1 . In manufacturing alone there are more than 2.6 million SMEs, equaling 19.1% of the total number of SMEs2 in China (Table 1).

Table 1: Sectorial distribution of SMEs in China (2014 data)

Distribution SMEs %SMEs

Agriculture, forestry, animal husbandry and fishery 951045 6.94

Mining 101673 0.74

Manufacturing 2616671 19.10

Supply of electricity, gas and water 79679 0.58

Construction 464975 3.39

Transportation, warehousing and postal services 323044 2.36

Information transmission, computer services and software 289162 2.11

Wholesale and retail trade 3513338 25.64

Accommodation and catering 235337 1.72

Finance 91583 0.67

Estate 419618 3.06

Leasing and business services 1161947 8.48

1OECD (2012), Economic Outlook for Southeast Asia, China and India 2014 - Beyond the Middle-Income Trap, OECD Publishing. 2 Note that SMEs in the data include micro enterprises. Medium-sized enterprises in China are defined as enterprises having less than 2,000 employees, whereas “small” refers to those that have less than 300 employees. Thus, SMEs are enterprises with less than 2,000 employees.

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Scientific research, technical services and geological prospecting industry 544309 3.97

Water conservancy, environment and public facilities management 97522 0.71

Resident services and other services 242251 1.77

Education 444038 3.24

Health, social security and social welfare 265537 1.94

Culture, sport and entertainment 263384 1.92

Public administration and social organization 1596327 11.65

TOTAL 13701440 100.00

Source: National Bureau of Statistics of the People’s Republic of China3

Today, SMEs operate in a global environment where they face intense competition and specific customer expectations. Thus, companies have to constantly re-engineer their business practices and procedures to increase their responsiveness to customers and competition. To compete, inter alia companies are continuously seeking to (1) lower total costs, (2) shorten throughput times, (3) reduce stock to a minimum, (4) enlarge product assortment, (5) improve product quality, (6) provide more reliable delivery dates and higher service to the costumers and (7) efficiently coordinate global demand, supply and production.

Furthermore, with the advent of big data, cloud computing and the internet of things, each step of manufacturing production, e.g., research, design and processing, is changing and needs to be redefined. By adopting intelligent sensing, man-machine interaction technologies as well as those pertaining to decision and execution, intellectualization can be realized in the process of design and manufacturing.

Introduction of so-called Intelligent Manufacturing (IM) speaks to these needs (more about IM below). More specifically, with adoption of IM, SMEs will be in a better position to respond to clients’ needs and disparate preferences and will have a chance to operate close to the manufacturing production technology frontier. However, in turn it requires introduction of advanced ICT applications.

The use of advanced ICT applications in advanced countries provides a benchmark for efficient utilization of ICTs, as well as for their impact on enterprise performance.4

How ready is China for IM? An indication is provided by the Networked Readiness Index (NRI).5 NRI shows that China, at place 62 out of 146, is an average performer only (Table 2), suggesting a strong rationale for preparing SMEs on the use of ICT.6 3 Downloadable from website: http://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/industries/financial+markets/msme+finance/sme+banking/msme-countryindicators-aboutdata. 4 Kotelnikov, V. (2007), Small and Medium Enterprises and ICT, United Nations Development Programme – Asia-Pacific Development Information Programme (UNDP-APDIP) and Asian and Pacific Training Centre for Information and Communication Technology for Development (APCICT).

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Table 2: Networked Readiness Index – individual countries, 20147

Economy Rank Score

Top 5 Finland 1 6.04

Singapore 2 5.97

Sweden 3 5.93

Netherlands 4 5.79

Norway 5 5.70

Asia Hong Kong SAR of China 8 5.60

Korea, Rep. 10 5.54

Japan 16 5.41

Malaysia 30 4.83

Brunei Darussalam 45 4.34

China 62 4.05

Indonesia 64 4.04

Thailand 67 4.01

World average 4.01

Sri Lanka 76 3.94

Philippines 78 3.89

India 83 3.85

Vietnam 84 3.84

Cambodia 108 3.36

Lao PDR 109 3.34

Bangladesh 119 3.21

5 The NRI, which was developed by the World Economic Forum (WEF), has already provided decision makers with a useful conceptual framework to evaluate the impact of ICTs at a global level and to benchmark the ICT readiness and usage of their economies. NRI is comprised of four sub-indexes: the environment for ICTs; the readiness of a society to use ICTs; the actual usage of all main stakeholders; and, the impact that ICTs generate in the economy and in society. The first three sub-indexes can be regarded as the drivers that establish the conditions for the results of the fourth sub index, ICT impact. 6 Another indication of the importance of digital technologies is provided by the 2016 World Development Report by the World Bank. Among many results, the report shows that, thanks to the internet, production costs are reduced and efficiency and labour productivity across nearly all economic sectors are enhanced. 7 While NRI is not SME or sector-specific, given the weight the SMEs in manufacturing play in Chinese economy, it may be concluded that NRI is sufficiently informative.

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Myanmar 146 2.35

Source: World Economic Forum 2014

This somewhat disappointing performance is partly due to the many challenges that SMEs in China, and in several other emerging and developing economies face when they are trying to access and use advanced ICTs. These challenges include:

• Lack of affordable access to ICT due to high costs of quality hardware, software and broadband Internet

• Lack of ICT knowledge, basic ICT literacy and computing skills

• Lack of tailor made ICT solutions that meet local needs

• Lack of awareness of potential benefits that ICT can bring to local enterprises

Therefore, the first step in this project is to raise awareness of the need to upgrade the ICT systems in SMEs in order to prepare for implementation of IM.

What is IM? IM refers to an integrated intelligent system simulating a human’s manufacturing intelligent activities via computer. It can perform analysis, judgment inference, adaptation and decision-making on manufacturing problems, partly replacing or extending a part of human’s brain work in the manufacturing environment. It develops the concept of manufacturing intelligence, and extends it in a highly flexible and intelligent manner.

IM is thus changing the production process. These trends are already taking place in several OECD countries. For example, in Germany, aspects of Industry 4.0 have been rolled out, while in the US, emphasizing industrial internet, efforts to develop intelligent manufacturing are intensified, with an aim to take the lead in this round of industrial revolution. These countries thus constitute good learning sources.

This project is in response to the strategies of Chinese government and Shanghai Municipal Government. For example, the central government has put forward “Made in China 2015”, combining advanced technologies with traditional manufacturing, aiming to be globally competitive. The State Council has issued the Guidance on the Internet Plus Action Plan, emphasizing the integration of the internet, cloud computing, big data and internet of things with modern manufacturing industry. Moreover, Shanghai, as the economic center in the world’s largest developing country, while implementing the national strategy, has put more emphasis on Science, Technology and Innovation (STI), with the aim of becoming a globally recognized STI centre through its active involvement in international cooperation.

A.3. Challenges addressed by the project

In China, manufacturing industry is facing challenges, such as intense competition, productivity, competitiveness and the need to meet specific customer expectations. For

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SMEs, these challenges may be addressed by implementation of IM. However, the awareness and knowledge of IM and attendant ICT needs amongst SMEs are low: For instance,

• Inadequate understanding of the benefits provided to SMEs by application of IM as well as attendant ICT needs. This suggests a need to undertake awareness raising activities.

• IM system is extremely complex and difficult to implement and many SMEs that have tried to implement such systems have encountered problems leading to failures. This suggests a need to undertake training activities focusing on the effective implementation process and critical success factors for top and middle managers as well as frontline employees.

• Inadequate knowledge among domestic SMEs on key intelligent manufacturing skills, such as cyber-physical systems (CPS) technology and applications. This suggests a need to undertake training and learning activities covering such emerging technologies.

A.4. Expected target beneficiaries

The main target group is SMEs in the manufacturing sector in Shanghai. These will be reached through industry and business associations. These associations will be trained and are, in turn, expected to train SMEs (training-of-trainers principle). Importantly, throughout the project equal opportunity should be given to women and men, thus catering to increased contribution of female entrepreneurs to manufacturing productivity and excellence and thus to overall economic performance in Chinese manufacturing.

B. REASONS FOR UNIDO ASSISTANCE

UNIDO, alone among the UN family of agencies and organizations specialized in industrial affairs, works with governments, business associations and individual companies to solve industrial problems. In many fields, it has rightly earned a reputation as a neutral and honest broker, playing a vital role in building up cooperation and coordination. Its services are customized and have been designed to be easily integrated into packages that will address specific country needs. At the same time, well-forged links with industry associations, academic and research institutions, non-governmental organizations and other international agencies ensure that time and resources are not wasted by duplicating services. In the area of technology, UNIDO is transferring its rich global experience in building up awareness about new technologies and innovations, and providing countries with access to technology sources and relevant technical support services to manage technological change for enhanced productivity and competitiveness of local manufacturing industry. This is in line with Inclusive and Sustainable Industrial Development (ISID). Inter alia, this requires new approaches that harness globally available knowledge, technology and innovation, such as

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those in the area of ICT. Knowledge exchange and technology transfer will (therefore) significantly contribute to realizing ISID.

A key service offered by UNIDO aims at strengthening technological capability and technology transfer mechanisms for further sustainable development, advising on ways and means to manage technological change, providing support to networking arrangements, fostering international cooperation and formulating national policy to provide these processes in line with the notion of ISID.

Through the recommendations coming from the identification of the relevant thematic policies of the country during the inception phase and from the public-private dialogue (Output 5: ICT Forum), whose goal is to improve future policy documents in this area, this project will contribute to mainstreaming ISID into policy-making.

While implementing the projects/programmes, UNIDO makes available its tools, methodologies, manuals, guidelines and training kits, which allow the counterparts to apply the best international practices in different areas of technology promotion and transfer. This enables UNIDO to manage technological change in conditions of a rapidly changing global economic environment and fast technological pace. In addition, UNIDO uses the services and seeks collaboration with its International Technology Centers (ITCs), Investment and Technology Promotion Offices (ITPOs) and established UNIDO Centers for South-South Industrial Cooperation (UCSSICs) as global mechanisms for building up partnerships with other institutions and enterprises in both public and private sectors worldwide.

B.1. Gender Mainstreaming Strategy

C. THE PROJECT

C.1. Objective

The overall objective of the project is to address challenges, such as productivity, competitiveness and consumer preferences, faced by SMEs by paving the way for implementation of IM.

Immediate objective

The immediate objective is to establish the Shanghai International Intelligent Manufacturing Promotion Center (SIIMPC) in Shanghai. Its main purpose is to serve SMEs with a view to increase use of IM applications. Inter alia, SIIMPC will act as a platform for awareness and knowledge/best practices dissemination of IM technologies and attendant ICT needs, a window for promotion of IM technologies and an implementing body of training on IM and attendant ICT needs.

C.2. UNIDO approach

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Overall approach

As there is a large quantity of manufacturing SMEs in Shanghai, it is impossible to deliver services to all of them. Therefore, in this project UNIDO will employ the “training-of-trainers” principle, by establishing SIIMPC that, together with IPEC, will function as the trainer. The two bodies will train select industry and business associations on IM and attendant ICT. In turn these will train SMEs in their respective industrial sectors. Industry and business associations will identify and select relevant SMEs for the training on IM. UNIDO, SIIMPC and IPEC will assist through the process.

As such, this should be seen as a demonstration project covering SMEs and business associations in 2-3 industrial sectors in Shanghai. If the project is successful, a second phase may be foreseen, which could entail more sectors and/or more regions/cities.

The establishment of SIIMPC to the level of trainer is accomplished through the engagement of international consultants and research institutions and by using effective tools. In addition, SIIMPC will be charged with outreach activities such as awareness raising and networking.

Some points are worth noting, namely:

• Through its strategic partnerships, UNIDO will coordinate closely with the different international organizations involved in IM, in particular the International Telecommunication Union (ITU) in Geneva and the Asian and Pacific Training Centre for Information and Communication Technology for Development (APCICT), which has been established by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).

• UNIDO will take into consideration the ongoing UNIDO activities in the Asia-Pacific region as well as other interventions by other donors/organizations to ensure close coordination and synergy, and avoid duplication and potential conflicts of interests.

• UNIDO will liaise with globally renowned institutions such as the Massachusetts Institute of Technology (MIT), which has a strong track record in the field of ICT.

• When possible, UNIDO will partner with other institutions in the region and in countries with highly developed ICT capacity, such as Japan, the Republic of Korea and Singapore.

• UNIDO will transfer its knowledge and experience gained from similar interventions and adopt the good practices and the success stories involved. For example, UNIDO can draw from its existing programme Business Information Centers (BICs), which use ICT and relevant business information for the development of local entrepreneurial skills. The service portfolio of BICs includes entrepreneurial advisory services, access to relevant business information and reliable internet technology, basic and advanced ICT trainings and assistance in establishing linkages to local, regional and international markets.

• The project will make every effort to ensure that gender equality and equity are taken into account at all levels of implementation.

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The project will be implemented in two phases: inception phase and implementation phase.

C.2.1. Inception phase

The inception phase lasts for three months.

During this phase, the first step is to establish SIIMPC. Its director, one assistant and one administrative staff will be appointed for the duration of the project. The main counterpart of the project, IPEC, will assume a technical advisory role for SIIMPC during project implementation.

Secondly, an inception phase workshop will be organized with a view to refine and fine-tune the project’s logical framework, and to develop key performance indicators (KPIs) and a monitoring plan. An inception phase report, including the recommendations on relevant thematic policies of the country, will be produced upon completion of the workshop.

Thirdly, relevant industry and business associations will be selected for awareness raising and training on IM/IMS. These, in turn, will identify SMEs to be trained. Moreover, during the inception phase, an exercise to survey the relevant thematic policies of the country will be carried out.

C.2.2. Implementation phase

Upon completion of the inception phase, the implementation phase of the project will commence. The implementation phase covers all activities related to the project’s three modules:

1. The first module consists of awareness raising activities for SMEs on IM and attendant ICT needs. This will be done through organization of seminars, production of promotional materials and web-based platforms. Three exchange workshops, which function as a mechanism for exchange of experiences between Shanghai and countries that have already or in the process of implementing IM will be organized. The purpose of these workshops is to increase the flow of knowledge/information among relevant industry associations and counterparts participating. UNIDO will “moderate” this programme.

2. In the course of the second module, the project collects and disseminates information on sector-specific IM applications and attendant ICT applications and best practices. This is done through:

a. Setting up of training units with training toolkits that will assist SMEs to apply

sector-specific IM applications.

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b. Specific training sessions for SMEs. The trainings will cover various sector-specific themes concerning application of IM and attendant ICT needs.

c. A manual, which will cover sector-specific IM applications, relevant ICT needs and best practices.

3. The third module of the project provides a meeting ground for project stakeholders. The arena for this cooperation and exchange as well as for learning from foreign (advanced) enterprises will be the annual Global CEO Conference held annually in Shanghai. While the full organization of the conference cannot be subsumed under this project, the goal is to contribute with workshops, side-events, keynote speakers and similar activities. All of those will be done in the context of the newly established forum ICT Forum, which is a forum for regional cooperation, learning and dialogue on ICT and a platform for dialogue and exchange. ICT for implementation of IM will constitute a special focus of the Forum. Apart from relevant stakeholders from China, potential future stakeholders from other countries in the Asia-Pacific region will be invited to participate as well. As such, the ICT Forum will serve as a platform to raise awareness about the project outside of China with a view for promoting South-South cooperation. This is relevant particularly in view of a potential second phase of the project.

C.3. Project management and coordination

The UNIDO Project Manager (PM) at UNIDO HQs is the Main Allotment Holder, overseeing the use and management of project funds. The PM ensures the coherence of interventions, provides technical support, liaises with international partner institutions, monitors project progress and reports on results as well as assesses the need for changes.

The project implementation will be overseen by a Steering Committee (SC), which will be established at the beginning of the project. Apart from UNIDO, members of the SC will include representatives of the CICETE of the China Ministry of Commerce and IPEC, with industry associations potentially participating as observers. Depending on the topics being discussed by the SC, also ICT research and development centers may be invited to specific meetings. It is foreseen that there will be one SC meeting per year.

As a specialized international assistance executing agency under the Ministry of Commerce, China International Center for Economic and Technical Exchanges (CICETE) is responsible for the coordination of the development activities of UNDP and UNIDO in China, supervises and coordinates UNIDO projects at the macro level and participates in some of the project activities. For smooth implementation of the projects, the domestic executing agency should provide CICETE with annual work progress reports and annual financial reports under the guidance of UNIDO Headquarters.

C.4. RBM code and theme

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RBM code: GC2, GC21

C.5. Expected outcome

SIIMPC and IPEC have delivered sector-specific information, knowledge and training to manufacturing business and industry associations in Shanghai on the benefits of implementing and using IM as well as of attendant ICT requirements that need to be satisfied for successful implementation of IM.

C.6. Outputs and activities

Output 1: Establishment of SIIMPC

Activities Responsibility

1.1. Interviews and appointment of director, an assistant and an administrative staff

UNIDO, IPEC

1.2. Arrange office space UNIDO, IPEC

Output 2: Inception phase workshop and report

2.1. Organization of inception phase workshop UNIDO, IPEC, SIIMPC

2.2. Identification of targeted industries, selection of industry and business associations as well as of SMEs to receive training, exercise to survey the relevant thematic policies of the country

UNIDO, IPEC, SIIMPC

2.3. Refinement of project logframe UNIDO, IPEC, SIIMPC

2.4. Development of key performance indicators (KPIs) and monitoring plan

UNIDO, IPEC, SIIMPC

2.5. Drafting of inception phase report, including recommendations on relevant thematic policies of the country

UNIDO, IPEC, SIIMPC

Output 3: Training-of-trainers programme on IM and attendant ICT needs

3.1. Identification of relevant sector-specific IM applications and best practices as well as attendant ICT needs for SMEs in select industries

UNIDO, IPEC, SIIMPC

3.2. Development and implementation of knowledge exchange workshops on sector-specific IM and attendant ICT needs

UNIDO, IPEC, SIIMPC

3.3 Development and implementation of training sessions on sector-specific IM and attendant ICT needs

UNIDO, IPEC, SIIMPC

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3.4. Development of training modules for subsequent training beyond project duration

UNIDO, IPEC, SIIMPC

Output 4: Promotional campaigns and awareness activities on IM and attendant ICT needs

4.1. Seminars for business and industry associations as well as SMEs in Shanghai

UNIDO, IPEC, SIIMPC

4.2. Web-based exercises for awareness raising UNIDO, IPEC, SIIMPC

4.3. Production of promotional material (posters, flyers, brochures, etc.) UNIDO, IPEC, SIIMPC

Output 5: Organization of ICT Forum at the Global CEO Conference

5.1. Develop and agree on a plan for the ICT Forum at the Global CEO Conference

UNIDO, IPEC, SIIMPC

5.2. Develop and implement a communication plan and strategy for the ICT Forum

UNIDO, IPEC, SIIMPC

5.3. Implement ICT Forum at the Global CEO Conference UNIDO, IPEC, SIIMPC

5.4. Upon completion of the ICT Forum and lessons learned, draft an operational framework for the future functioning of the ICT Forum and policy recommendations in this area building on the recommendations of the inception report

UNIDO, IPEC, SIIMPC

Output 6: Self-evaluation

6.1. Prepare annual progress reports and terminal project evaluation UNIDO, IPEC, SIIMPC

C.7. Sustainability of the project

The following elements will contribute to sustaining the results expected by the end of the project:

• The IPEC will develop a sustainable business plan on the basis of lessons learned from

the project. At the same time, they will expand their network in Shanghai.

• The project will equip industry and business associations with knowledge, networks and tools, as a result of the training-of-trainers programme, to continue the work of the project beyond project duration.

• Technical experts recruited under this project will be available after the completion of the

project through an HR pool accumulated throughout the project implementation.

C.8. Gender Mainstreaming Strategy

The project will make every effort to ensure that gender equality and equity are taken into account at all levels of implementation. The project will give attention to the gender balance

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in the recruitment process for the project personnel. Moreover, a Gender Focal Point will be elected amongst the members of the SC to ensure that gender equality concerns are considered in the decision-making process and throughout the project life cycle. Gender indicators will be included in the Monitoring and Evaluation tools to be developed for this project. To enhance the capacity of project implementation staff, all those hired on the project will be required to complete an online gender mainstreaming training. The training aims to ensure that project staff are aware of gender issues, are able to address them appropriately throughout implementation, and are able to respond to gender based barriers in project activities. At least one full-time project staff will have significant knowledge of gender mainstreaming in projects and will oversee the monitoring of activities from a gender perspective throughout the project.

C.9. Risks

Risk Mitigation measure Level

Cooperation from private sector is limited

Motivational awareness and information meetings held.

Low

Demand for project services is too high

Suggest that online training be provided.

Medium

SIIMPC is not able to use the allocated office space in time or the entire project duration

The host of office space is given enough lead time to allocate office space. Contract is written to cover the duration of the project

Low

D. INPUTS

D.1. Counterpart inputs

It is expected that the project will leverage upon resources of its counterpart IPEC. These include a network of experts that will provide training on IM.

D.2. UNIDO inputs

International staff

The PM will be assisted by an international expert on a part-time basis (UNIDO HQs based) for the execution and follow-up of project activities, relying as well on available support services from the rest of the organization, i.e., for organization of study tours, etc.

National staff

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The work of SIIMPC staff will ensure the timely progress of the project in collaboration with international and national experts. They will work closely with UNIDO HQs and counterparts in order to ensure timely completion of the project and the achievement of its objectives. The director will organize and supervise a team of national technical experts to ensure seamless implementation and timely delivery of technical activities. He/she will ensure timely preparation of periodic work plans, budget forecasts (RBM) and reports, in close collaboration with the UNIDO PM and counterparts. He/she will also be responsible for the implementation of a communication and visibility plan. Short-term national experts on IM applications may be hired on a temporary basis in order to assist with the implementation.

Training

- Manual and curriculum - Three exchange workshops - Specific training sessions - Training units with training toolkit

E. BUDGET (UNIDO COMPONENT)

The total budget amounts to US$ 600,000. The IPEC, as the main counterpart, will provide in kind support in the value of US$ 380,000. UNIDO shall make its Industrial Development Fund (IDF) of US$ 600,000 dedicated by the Government of China, available to the project.

Consolidated budget (in US$):

BL Year 1 Year 2 Year3 Total

11-00 International consultants 30,000 35,000 25,000 90,000

15-00 Project travel 14,000 14,000 14,000 42,000

16-00 UNIDO staff travel 7,000 7,000 7,000 21,000

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Project director 20,000 20,000 20,000 60,000

Project staff and assistant 10,000 10,000 10,000 30,000

National experts 20,000 20,000 20,000 60,000

30-00 Training 15,000 25,000 20,000 60,000

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F. MONITORING, REPORTING AND EVALUATION

Monitoring: The PM will monitor the progress of the project in order to ensure that activities take place as planned, with special attention given to project Key Performance Indicators (KPIs). KPIs will be established during the inception workshop in consultation with project counterparts and project stakeholders. In addition, a monitoring plan will be established after the inception workshop and approved at the first SC, laying out the expected schedule for implementation of the various activities.

In addition, the SC will monitor progress of the project and, if needed, propose corrective actions. To this end, the SC will meet once per year. A Gender Focal Point will be elected amongst the members of the SC to ensure that gender equality concerns are considered in the decision-making process and throughout the project life cycle.

Reporting: A detailed reporting system will be an integral part of the monitoring system, which will be designed during the inception phase. There will be two levels of reporting: An annual project progress report and a final report.

Financial monitoring will be exercised by UNIDO as per UNIDO’s standard financial regulations, and regular financial statements will be submitted to the donor according to a periodicity to be specified in the financial agreement between the parties.

Evaluation: Given the size of the project, self-evaluation will be carried out. At the end of the project, the SC will meet with the representatives of the target beneficiaries to review the project’s overall impact and prepare an evaluation report. This should be circulated sufficiently in advance to allow technical clearance by UNIDO and be followed by a terminal review meeting involving CICETE, the IPEC and UNIDO upon completion of all project activities.

35-00 Conference/seminars/exhibitions 30,000 30,000 30,000 90,000

Inception seminar and report 33,000 0 0 33,000

43-00 Office and related costs (rent, cleaning, electricity, etc.)

10,000 10,000 10,000 30,000

51-00 Miscellaneous 5,000 5,000 4,973 14,973

Total (excl. PSC) 194,000 176,000 160,973 530,973

IDF 13% UNIDO PSC 69,027

Grand total (incl. PSC) 600,000

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G. PRIOR OBLIGATIONS AND PREREQUISITES

Prior to project implementation, adequate premises for the project team should be secured and counterpart staff be made available.

H. LEGAL CONTEXT

The Government of the People’s Republic of China agrees to apply to the present project, mutatis mutandis, the provisions of the Standard Basic Assistance Agreement between the United Nations Development Programme and the Government, signed on 29 June 1979 and entered into force on 24 June 1985.

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I. LOGICAL FRAMEWORK

Intervention logic Objectively verifiable indicators Sources of verification Risks

Development goals/impact

The overall objective is to address challenges, such as productivity, competitiveness and consumer preferences, faced by SMEs by paving the way for implementation of IM

• Number of SMEs using or about to adopt IM in their business and manufacturing operations

• National statistics • Data collected from

SMEs through surveys

• Cooperation from private sector’s side is limited

Outcomes/purpose

SIIMPC and IPEC have delivered sector-specific information, knowledge and training to manufacturing business and industry associations in Shanghai on the benefits of implementing and using IM as well as of attendant ICT requirements that need to be satisfied for successful implementation of IM

• Number of awareness sessions, workshops, trainings and consultancy services offered to SMEs by primary stakeholders (business and industry associations)

• Stakeholder survey report

• Demand for project services is too high

Outputs

1 Establishment of SIIMPC

• Director and assistant appointed • Office space with attendant

equipment in place

• Employer contracts for 1 director and 1 assistant

• Rental agreements and receipts

• UNIDO does not get the permission to hire the director/CTA and the assistant of the OS in time

• OS is not able to use the allocated office space in time

2 Inception phase workshop and report

• # of attendants at the workshop • # of industry and business

associations, and SMEs targeted for training and information dissemination

• # identified relevant thematic policies of the country

• # of reports • # recommendations included in the

report • # of refined logframes

• Workshop minutes and attendance list

• 1 report • List of industry and

business associations as well as firms selected

• 1 refined logframe • 1 KPI list

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Intervention logic Objectively verifiable indicators Sources of verification Risks

• # of KPI lists

3 Training-of-trainers programme on IM and attendant ICT needs

• Training material produced and disseminated

• # of industry and business associations participating in training-of-trainers programme (target = at least 24)

• # of experts from relevant associations (two from each associations) participating in training-of-trainers programme (target: at least 48, of which at least 30 % should be female)

• # of self-evaluations

• IM and ICT manual • Minutes of knowledge

exchange workshops and attendance lists

• Self-evaluation of experts from industry and business associations (target = at least 48, of which at least 30 % should be female)

4 Promotional campaigns and awareness activities on IM and attendant ICT needs

• # of seminars for SMEs in Shanghai organized

• # of web-based platforms • # of printed promotional material

(posters, flyers, brochures, etc.)

• Record of publications • Seminar materials • 1 web-based platform • Promotional material

5 Organization of ICT Forum at the Global CEO Conference

• # of female and male participants at the ICT Forum at the Global CEO Conference (gender target: at least 30 % of participants should be female)

• # of blueprint of the operational plan of the ICT Forum

• # policy recommendations • # of promotional material for the

ICT Forum

• 1 blueprint of the operational plan of the ICT Forum

• Promotional material for the ICT Forum

• 1 list of female and male participants and attendees at the ICT Forum

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Intervention logic Objectively verifiable indicators Sources of verification Risks

6 Self-evaluation • # of reports such as annual progress report and final self-evaluation

• 1 printed self-evaluation report

• 3 printed annual progress report

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J. TIMELINE OF THE ACTIVITIES (INDICATIVE)

Year 1 Year 2 Year 3

Outputs and activities

Output 1 Establishment of SIIMPC

1.1. Interviews and appointment of director, an assistant and as administrative staff

1.2. Arrange office space

Output 2 Inception phase workshop and report

2.1. Organized inception phase workshop

2.2. Identification of targeted industries, selection of industry and business associations as well as of SMEs to receive training, exercise to survey the relevant thematic policies of the country

2.3. Refinement of project logframe

2.4. Development of key performance indicators (KPIs) and monitoring plan

2.5. Drafting of inception phase report, including recommendations on relevant thematic policies of the country

Output 3 Training-of-trainers programme on IM and attendant ICT needs

3.1. Identification of relevant sector-specific IM applications and best practices as well as attendant ICT needs for SMEs in select industries

3.2. Development and implementation of knowledge exchange workshops on sector-specific IM and attendant ICT needs

3.3. Development and implementation of training sessions on sector-specific IM and attendant ICT needs

3.4. Development of training modules for subsequent training beyond project duration

Output 4 Promotional campaigns and awareness activities on IM and attendant ICT needs

4.1. Seminars for business and industry associations as well as SMEs in Shanghai

4.2. Web-based exercises for awareness raising

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4.3. Production of other promotional material (posters, flyers, brochures, etc.)

Output 5 Organization of ICT Forum at the Global CEO Conference

5.1. Develop and agree on the plan for the ICT Forum at the Global CEO Conference

5.2. Develop and implement a communication plan and strategy of the ICT Forum

5.3. Implement ICT Forum at the Global CEO Conference

5.4 Upon completion of the ICT Forum and lessons learned, draft an operational framework for the future functioning of the ICT Forum and policy recommendations in this area, building on the recommendations of the inception report

Output 6 Self-evaluation

6.1. Prepare annual progress reports and terminal project evaluation

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Request letter

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Partner of the project

Shanghai Qingpu IPEC Modern Industry and Information Technology Promotion Service

Center (IPEC) was established in 2013. Its main fields of work are carrying out cooperation

and exchange of industrial and information technology innovation and development activities;

connecting international well-known enterprises, projects and funds; speeding up local

enterprises transfer and absorption of the world's leading technology; promoting integrated

innovation and independent innovation focused on key areas and major projects, and

enhancing the enterprise’s ability in technological industrialization and innovation

development.

IPEC actively seeks financial support and project support in industry and information

technology among international institutions, famous enterprises and financial institutions, and

carrying out cooperation and exchange in industrial and information technology development.

The center’s mandate is to promote the development of industry and information technology

innovation.

IPEC is an important partner of the UNIDO project on the Shanghai International

Information Technology Promotion Center (SITPC), and the main sponsor of UNIDO Global

CEO conference. The UNIDO Global CEO Conference is set up by UNIDO in response to

the “Global Cooperation for Development” initiative put forward in the "United Nations

Millennium Summit".