Japan to extend technical support to Auto parts manufacturing industry by end of this month

ISLAMABAD: Japan International Cooperation Agency (JICA) would extend technical support to Auto parts manufacturing industry of Pakistan by end of this month, Engineering Development Board (EDB) sources said.

According to EDB, the Project for Technical Support to Auto Parts Manufacturing Industry would be initiated by the end June 2015 by the Small and Medium Enterprises Development Authority (SMEDA) and the Japan International Cooperation Agency (JICA) with local consultants and engineers, such as PAAPAM (Pakistan Association of Automotive Parts and Accessories Manufacturers).

Based on the minutes of meetings on the Detailed Planning Survey on the Project signed on October 1, 2014 between SMEDA and JICA, JICA held a series of discussions with SMEDA and relevant organizations to develop a detailed plan of the Project.

Both parties agreed that SMEDA, would be responsible for the implementation of the Project in cooperation with JICA, coordinate with other relevant organizations and ensure that the self-reliant operation of the Project is sustained during and after the implementation period in order to contribute toward social and economic development of Pakistan.

The Project, the EDB sources said has been extended for 4 years from this June and qualified and experienced JICA Experts would stay in Lahore and Karachi to transfer the Japanese techniques for improvement of quality and productivity.

Japan has an advantage in this field and this project would contribute to increase the local procurement ratio of auto parts by Original Equipment Manufacturer (OEM).

Japanese OEM also expressed the high expectation for this project.

Automotive sector is one of the fastest growing sectors in Pakistan.

It contributes towards the nation's economy in the form of technology transfer, employment and revenue generation.

Local vendors deem to play an important role in the growth of auto industry as they bear the responsibility of producing auto parts and sub-assemblies according to the bench mark set by the respective OEMs.

On the other hand, local auto parts manufacturing industry is still in the process of development and lacking competitiveness in terms of quality, cost and flexibility of manufacturing systems.

Unfortunately,the EDB said Pakistan has not been able to derive maximum benefits in terms of technical know-how, production technology and quality control in order to upgrade the vendor base of auto sector.

Therefore, SMEDA requested to Government of Japan for initiating a long term technical support of Japanese way of improving productivity and quality, "Kaizen".

SMEDA aims to broaden the scope of productivity improvement activities across the value chain of auto sector in the development of the vendor base across the country.

To achieve the goal, a framework of support system is formed and model cases are created through such support system for auto part supplier.

Fundamental skills of support system members, which include SMEDA, PAAPAM engineers and local consultants, would be developed through the Project by the JICA expert.

Guidelines/manuals for consulting services to auto parts suppliers would also be prepared.

Local consultant's, PAAPAM engineers (two in Lahore and Two in Karachi) and SMEDA's capacity is enhanced to further transmit the same (information, learning's and skills) to quality and productivity management and other suppliers through on-the job training by the JICA Experts.

JICA is very confident that this new project would support to achieve higher results in auto parts industry by ensuring implementation of the plan of actions, efficient use of existing resources and building trustful services delivery, where confidentiality of the suppliers is maintained, the EDB said.

JICA currently also dispatches the policy experts to the Engineering Development Board (EDB), the Board of Investment (BOI), and trade promotion office.