Summary of Evaluation Results
1. Outline of the ProjectCountry name: Islamic Republic ofProject name: The Project for Balancing

Pakistanand Modernization of Workshop Facilities
at the Pakistan Industrial TechnicalAssistance Centre

Fields: Industrial development, extension

Assistance type: Technical cooperationof technology

project

Supervising office: Small and Medium

Monetary amount of cooperation (at time

Enterprise Team, Economic Developmentof evaluation): Approximately 822 million

Department

yen

Period of

R/D: September

cooperation

2002

toSeptember 2006

Counterpart organization: Pakistan
Industrial Technical Assistance Centre;(Extension):

Ministry of Industries, Production, andF/U:Special Initiatives

E/N: (Grant aid)

Cooperating organizations in Japan:
Materials Process Technology Center
Other associated cooperation:

1-1 Background and outline of the Project
Along with agriculture, its key industry, the Islamic Republic of Pakistan is working toenhance its engineering sector in view of the importance of balanced industrial
development in vitalizing its economy. As part of its industrialization assistance,
Japan implemented project-type technical cooperation from September 1982 to October1985 in areas that included machine processing, heat treatment, and design andmanufacture of moulds and dies, with the Pakistan Industrial Technical AssistanceCentre (PITAC) serving as the implementing agency. Moreover, Japan provided
after-care cooperation to PITAC from 1994 to 1995. Utilizing the machinery,equipment, and technology that were provided through this cooperation, PITAC
continues to be actively involved in activities that include providing technical training
and manufacturing services to nearby companies.
However, the demands of companies are becoming more sophisticated as the country’sindustries develop, and there are strong demands for higher-level technical services andupgraded machinery. In addition, the Pakistani government is working to cultivate
supporting industries by listing promotion of small and medium enterprises (SMEs) asa priority industrial policy in an economic revitalization plan announced in December

1999, and by employing a policy for domestic industrialization that seeks to attain local
procurement rate goals for parts and components as a measure against recent
advancements into Pakistan by overseas companies.

In line with these policies, thePakistani government made a request for project-type technical cooperation aimed at
upgrading the technologies, machinery, and equipment of PITAC and at improving its
technical assistance capacities in the plastic mould-making field. This request wasmade to realize domestic production of precision moulds and components, items forwhich Pakistan currently depends on imports.
In response, Japan commenced a technical cooperation project in September 2002 forthe purpose of contributing to the promotion of supporting industries in Pakistan.
This Project intends to do this by transferring Japanese technologies in mould design,processing, polishing, assembly, and testing, and then by having counterparts (C/Ps)
utilize the transferred technologies to provide high-quality technical services toprivate-sector mould companies.
1-2 Description of cooperation(1) Overall Goal
Domestic plastic mould-making industries are able to supply better quality moulds forplastic production in Pakistan.
(2) Project Purpose
Technical capability of PITAC is upgraded so that it can extend technical services in thefield of plastic mould technology.
(3) Outputs of the project
1. The Project operation unit is established for making advanced plastic moulds.
2. The necessary machineries and equipment are provided, installed, operated, andmaintained properly.
3. The technical capability of the C/Ps is upgraded.
4. Technical training courses and seminars are implemented systematically.
5. Technical backup support services are implemented systematically.
6. Advisory services are implemented systematically.
7. Interactions of the Project with private companies are strengthened.
(4) Inputs (at time of evaluation)

Japanese side
1. Dispatch of long-term experts:

6 experts

2. Dispatch of short-term experts:

20 experts

3. C/P training in Japan:

26 C/Ps

4. Provision of machinery and equipment:

Approximately 340 million yen

5. Support for local costs
Pakistani side
1. Allocation of C/Ps:

30 C/Ps

2. Provision of buildings, machinery/equipment
3. Assumption of local costs:

27 million rupees

2. Outline of the Evaluation Team
Members

LeaderTakeshi Nakano

Senior Assistant to the Director
General, Economic Development
Department, JICA

Technical evaluation

Tetsuo Sasaki

Chairman of the Advisory Committee
for the Project (visiting professor ofthe Mould Technology Laboratory,
Faculty of Engineering, IwateUniversity)

Training planning

Chikako Yamauchi

Chief, Material Process TechnologyCentreEvaluation management

Etsuji Yoshimura

Chief, Small and Medium
Enterprise Team, Economic
Development Department, JICA

Evaluation analysis

Jun Ikeda

General Manager, UNICO InternationalCorporation

Evaluation

May 14, 2006, to June 1, 2006

Evaluation type: Final evaluation

period3. Outline of Evaluation Results
3-1 Confirmation of achievements
3-1-1 Input achievements(1) Achievements of inputs from the Japanese side (at the time of the evaluation)
Through the Project, six long-term experts and 20 short-term experts (of whom, two arescheduled for dispatch) were dispatched. Three C/Ps from Pakistan were sent to thePhilippines and Thailand, three C/Ps were sent to the Philippines, and 20 C/Ps weresent to Japan for training. A total of 42 types of large-scale machinery and equipment
as well as 39 items including jigs, spare parts, and consumables were provided to theProject by Japan. The total amount of expense assumed by Japan from FY1999 toFY2006 (planned) is 822 million yen.
(2) Achievements of inputs from the Pakistani side (at the time of the evaluation)
The total performance-based amount of budgeted funds invested into the Project by thePakistani side is 27 million rupees (scheduled total of 42 million rupees). The
Pakistani side provided construction of buildings, installation of ancillary facilities, andmachinery and equipment (peripheral machinery and equipment for mould design &CAD/CAM, for mould processing, and for mould assembly injection tryout; othermachinery and equipment).
3-1-2 Achievement of the outputs(1) The Project operation unit is established for making advanced plastic moulds.
Although delays occurred in procuring budgeted funds needed for allocation of C/Ps, theC/Ps were allocated according to plan after authorization of revision PC-1 (budgetapplication). However, some C/Ps will need further capacity improvement.
(2) The necessary machineries and equipment are provided, installed, operated, andmaintained properly.
Although delays occurred in construction and procurement of the machinery andequipment to be borne by the Pakistani side, construction of facilities, procurement ofmachinery and equipment, and procurement of machinery and equipment from theJapanese side were implemented properly. Guidance in operating and maintaining
the facilities, machinery, and equipment has been provided following their installation,and the machinery and equipment are being utilized. However, frequent power
failures have restricted operation of the machinery and equipment.
(3) The technical capability of the C/Ps is upgraded.
Technical transfer was conducted through manufacture of model moulds, and theresulting technical capability gave the C/Ps the ability to solve problems on their own.
Furthermore, the technical capability of C/Ps improved to the point at which they canmanufacture unique Project moulds for the purpose of improving technology on theirown.
(4) Technical training courses and seminars are implemented systematically.
A total of 224 people participated in training courses that were implemented based on
yearly plans. Of these, a total of 109 people attended nighttime courses that wereconducted in response to strong demand from private companies. Seminars were heldin five fields—labor safety and hygiene, advanced mould technology, TQC, project
introduction, and 3-D modeling—at 19 venues and were attended by 1,454 people.
(5) Technical backup support services are implemented systematically.
Fourteen orders for backup support services were received, and six orders werecompleted. PITAC also provided backup support services pertaining to moulds on its
own; C/Ps and long-term experts responded to orders that PITAC did not have thetechnical means to handle.
(6) Advisory services are implemented systematically.
Twenty six orders were received for advisory services, and more of have of these orders
were completed. PITAC is gradually responding to even complex orders. Currently,
C/Ps are taking the lead in providing services, primarily at a model factory.
(7) Interactions of the Project with private companies are strengthened.
The Project side held training courses and seminars and provided backup support andadvisory services to support private companies, and these activities were rated highlyby the targeted private companies (known through answers provided in questionnaires,etc.). The results of private-sector evaluations (level of satisfaction with service)indicate that the relationship between both sides has strengthened through, forexample, feedback to improve various private-sector support services.
3-1-3 Achievement of the Project Purpose
According to responses from a questionnaire survey of training course participants,participants are satisfied with the content of their training. This same trend isapparent for seminars. In particular, the CAD/CAM course was very well attended,with the number of applicants exceeding capacity each time the course was provided.
A needs survey of private companies showed that companies have a strong desire tohave their employees participate in the CAD/CAM course. Furthermore, the numberof requests for advisory support services and backup support services is increasing.

3-1-4 Achievement of the Overall Goal
If achievement of the Overall Goal is evaluated from the standpoint that the technicallevel of domestic mould companies in Pakistan is rising, achievement is being madeunder current conditions. However, as a whole, the mould industry has not reached alevel at which it can supply high-quality moulds to the plastic mould-making
industries.
3-2 Outline of evaluation results(1) Relevance
It is confirmed that Project is in accordance with not only needs of the private sector but
also Pakistani government policy, and that it is in line with Japan’s cooperation policy
toward Pakistan. The Overall Goal is in line with the development policy of Pakistan,as, in particular, promotion of SMEs is mentioned in medium- and long-term
development plans. Moreover, a government strategy to promote plastic moulds isbudgeted within the framework of the “Annual Plan 2004.” The relevance of theProject is further verified by PITAC’s need to improve its capabilities in providing
training courses, advisory services, and backup support services in response toprivate-sector demand.
(2) Effectiveness
The machinery and equipment were effectively procured and installed, and JICAlong-term experts transferred basic technologies to the C/Ps through said machineryand equipment. In addition, the C/Ps began to manage training courses on their own.
Improvement of the advisory services also continued, and these services are now
meeting private-sector demand. The functions of the backup support services are also
being reinforced to meet the practical needs of factories concerned. However, frequent
turn-over in the position of PITAC general manager resulted in PITAC’s being unable
to achieve management consistency and continuity. Also, although budgetary funding
was secured, budget execution was delayed, due partly to government procedures.
These factors hindered achievement of the Project Purpose.
(3) Efficiency
Efficiency with regard to guidance fields of dispatched experts; allocation of C/Ps;
technical transfer plans; provision of machinery, equipment, materials, and facilities;
assumption of local cost; and functions of the Joint Coordination Committee (JCC) wassatisfactory for the most part.
Although dispatches of experts were insufficient in some areas, attempts were made tocompensate for this through training of C/Ps in Japan, etc. Looking beyond simple
technical transfer, there were some C/Ps that showed considerable improvement intheir sense of responsibility and work attitude in that they wanted to contribute to theProject’s success; however, there were also other C/Ps who needed further attitudeimprovement. Furthermore, there were delays in the installation of several machines
because construction of buildings was not completed in time for installation. A
subcommittee comprised of representatives of the JCC and concerned organizations
contributed to efficiency by holding meetings to resolve various such problems duringthe Project.
(4) Impact
Instructors that participated in the training courses are spreading what they learned intheir own institutions. At the level of individuals/employees, they are contributing tohigher positions and increases in salary; and at the company/factory level, they
contributing to higher productivity in areas that include strict observance of delivery
dates, quality management, and cost reduction. Furthermore, the advisor services are
helping resolve client problems, while backup support services are helping resolve
problems at clients’ production sites. Although PITAC is moving toward achievementof the Project Purpose of supplying private-sector support services, impact toward theOverall Goal remains to be confirmed.
(5) Sustainability
1) Technical aspects
C/Ps have acquired basic technical knowledge and know-how that allow them to operate
training courses on their own. Moreover, the advisory services and backup support
services have commenced and are meeting the needs of private companies. Although
the C/Ps desire to be able to repair and maintain machinery and equipment on theirown, such ability has not been realized due to the complexity of the machinery andequipment.
2) Organizational and financial aspects
An internal study committee should be established to look at handling and positioningof Project components in the future. Moreover, because it is expected that PITAC

revenue will increase through application of multiple budgets and acceptance of orders
from private companies, the possibility exists that the Project’s financial sustainability
will be maintained and strengthened.
3) Policy and institutional aspects
The Ministry of Industries, Production, and Special Initiatives; TUSDEC; and thegoverning body of PITAC have made clear statements pertaining to improvement andreform of PITAC’s operating system and strategies (infusion of private-sector resources
into PITAC’s organization, operation, and management, etc.). At the same time, there
is strong government policy support for the modernization and improvement of PITAC.
3-3 Factors contributing to emergence of effects(1) Factors pertaining to planning content
No comment in particular(2) Items pertaining to the implementation process
On Wednesday of each week, C/Ps in charge of each department and JICA experts heldweekly meetings to confirm progress and examine problems. These meetings allowed
all members to understand the agreed-upon solutions and to reflect these solutions on
their daily work. The JICA experts concentrated on training and instructing 10 C/Ps
that had participated in the Project from its beginning. Twenty C/Ps that wereassigned later were jointly trained and instructed by the JICA experts and theaforementioned 10 C/Ps.
3-4 Problem areas and factors leading to problems(1) Factors pertaining to planning content
No comment in particular(2) Items pertaining to the implementation process
Construction and repair of buildings and allocation of counterparts, which wereestablished as preconditions at the PDM preparation stage, were not completed by thestart of cooperation from Japan. Moreover, there were delays in securing budgetaryfunds for these activities. As a result, the preconditions were not met for half of the
four-year cooperation period, a situation that forced the JICA experts to expend
considerable energy. Consequently, of the project outputs that were planned for
implementation after completion of technical transfer to the C/Ps, the backup support

services and advisory services are just getting started, although some success wasachieved in implementation of the training courses and seminars.
Furthermore, central Pakistani personnel in the Project were the general manager ofPITAC (director) and the project manager. However, while the same project manager
remained in charge throughout the duration of the Project, the PITAC general manager
was frequently replaced. This led to problems in communication andmanagement-related discussions between PITAC and the JICA Project team, andhindered smooth Project implementation.
3-5 Conclusion
The joint evaluation team concludes that, having overcome the problems andconstraints encountered during the initial stage of the Project, the Project has achieved
the Project Purpose at an acceptable level. However, the Project has some problems interms of future sustainability, and thus JICA experts, C/Ps, and PITAC managers must
continue to make further efforts to resolve these problems by the end of the cooperation
period.
3-6 Recommendations(1)

In order to steadily improve their skills and know-how, it is desirable that C/Ps
not only manufacture several moulds a year but also participate in overseas
and/or domestic training Furthermore, it is desirable that C/Ps rotate todifferent departments roughly once every three years in order to acquire a broad
range of technologies.

(2)

The Occupational Safety and Health Committee should take the initiative torealize the “5Ss” (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke) and to hold Tool
Box Meetings (pre-work meetings) to make safety calls and check that workers
are wearing their uniforms and safety shoes.

(3)

Ventilation equipment should be installed, dust countermeasures should beimplemented, power cables should be replaced, and stable power should besupplied so that provided machinery and equipment can be fully utilized.

(4)

All software used in the Project should be licensed versions. It is hoped thatbudgetary funding will be secured for software upgrades and hardware
maintenance contracts.

(5)

The tender system should be closely examined to realize fast and accurateprocurement. When tender bids are examined, not only price but also quality ofgoods and/or services should be assessed.
(6)Standardization of technology transferred through the Project with international
standards should be completed by 2008.

(7)

Textbooks and curricula used in the training courses should be continuously
updated so that completion-of-training certificates have currency for industry.

(8)

Brochures and periodicals should be issued once a year to publicize the Project’sactivities. Seminars should be carried out regularly based on an annual plan.

(9)

An ordinary budget should be secured to ensure continuation of Project activities.
Overall income created by the Project should be utilized for machine maintenanceand domestic/overseas training, etc.

(10) PITAC should be given the authority to directly use foreign currencies to realize
speedy procurement of machinery, equipment, materials, and parts necessary for
the Project.
(11) C/Ps that are hired under two-year contracts should be promoted from temporary
employee status to full-time employee status in order to ensure the sustainabilityof the Project. Moreover, education and training should be provided to improveknow-how.
(12) The JICA Project team should issue detailed lists of machinery and equipment,
including specifications (model numbers, serial numbers, etc.), as well as lettersaddressed to companies/makers/producers of machinery and equipment to request
their cooperation in the supply of required spare parts and materials. Moreover,the Pakistani side must issue “end-use certificates” tocompanies/makers/producers of machinery and equipment.
(13) A PITAC internal examination committee should be established by personnel
from both Japan and Pakistan for the purpose of studying the future of Projectcomponents (including their position within PITAC) and organizational matters.
3-7 Lessons learned
Not all of the preconditions laid out during the Project’s preparatory period werefulfilled before cooperation began, and this hindered Project progress. Thus, it wasreaffirmed that satisfying all preconditions noted in the PDM is vital. At the sametime, it is strongly recommended that, in the future, contingency plans be studied byboth sides before a project begins so that workaround measures can be implemented
even if important preconditions are not satisfied.