Value Chain Development Training

A brief presentation for General Winget Poly technic college staff

Alemu Yetwale

Technical skill capacity building Expert, FTA, Ethiopia

December, 2020
FTA Addis Ababa
Contents

1. Overview of Value chain

2. Value chain development steps

Integrations of global economy

The dominant features of the world are Trade and investments

World trade Investment Product/services

The actors are

 Developing
 Emerging
 Developed countries economy
 VCD

Value chain development is an effective approach for sustainable

development

 To survive continually in the market

 To address the economic development issues and problems
 Supporting/strengthening the
competitiveness of private sectors
2. Competitive rural
economy and its
growth
(social & economy )
1. Competitive
private sectors 3 Essential
components of
sustainable Providing opportunities in rural
developments areas is essential;
 reduce the development gap
People tend to manage between urban and rural
natural resource better  Reduce national poverty
when they drive direct  Reduce migration to cites
3. Sustainable natural
benefit from it
resources

Value chain plays as an instrumental role by enhancing the three components through
1 strengthening competitiveness of private sectors
2.Strengthening competitiveness of rural economic sectors
3.Promoting sustainable use of natural resources
 Value chain

What is your understanding of the

• value chain?
• Value chain analysis ?
• Value chain development?

FTA
Value chain is: is

It is a sequence of activities that an enterprise operating

in a specific sector and sub sector performs to deliver a
valuable product or service to the market.

Value chain includes horizontal and vertical linkage

between serval actors that generate value in a
product or services.
 Inputs

Storage

Transport

Market

Consumers
VCD models
Example
Value chain development in TVET

In TVET; through technology accumulation and transfer

process has gained a tremendous experience of interest in
promoting value chains ,

as a way to identify technology,

add value, diversify economies,

contribute to Micro, Small and Medium Enterprise in all

sectors
Objectives of value chain
development
Objectives
 Scopes of value chain development

1. Addresses all GTP priority Sectors and Sub Sectors

2. Focus on development and competitiveness of micro, small and
medium
Value chain development
principles
Principles of value chain
 Coincide with GTP priority sectors
 Develop cooperatively.
 Support by governmental and non-governmental concerned
organizations.
 focuses on technology identification
 Map AS IS and Benchmarked
 Upgrade based on trends of technologies.
 Validate, Document and report to concern organization
 Reduces
Simple and production costs
better way and improves
profitability

Importance of value
chain development
Increases
efficiency and Improves
systemic customer
competitiveness satisfaction

It denotes where or
at which stage value
is added and or not.
 Value chain categories
Simple value
chain
Focuses on activity analysis of a
specific product/commodity
within sub sector.
 Describes the full range of
activities
 Prepared by technical experts
 Conducted and facilitated by
in any TVET structure
Extended value
chain
It is much more complex, tend to be many
more links in the chain and comprises of
many sectors and sub sectors.
 It should be developed at sector or sub
sector
 Address all gaps
 Conducted and facilitated at federal and
regional level,
The illustration about the simple and extended value chain in
Agriculture sector;

Sector Sub sector Products Sub products

----- wheat --------

Agriculture Animal production ----- corn -------
----- bread
Crop production feeding for human
The illustration about the simple and extended value chain in industrial
development sector

sector Sub sector Products Sub products

Industrial textile & garments - yarn ---------

development - fabric ---------
- shirts ---------
leather * belt *
* shoe *
* bag *
Example of simple value chain

LEATHER WALLET

INPUT CUTTING QUALITY

PREPARATION STITCHING FINISHING PACKAGING MARKETING
CONTROL

TOOLS & LEATHER ATTACHING PACKED

STITCHING CLEANING INSPECTION & WHOLE SALE
EQUIPMENT CUTTING LEATHER FINISHED GOODS
TESTING

PATTERN SEGREGATING THREAD RETAIL

LEATHER BURNING
PREPARATION BY PARTS

MANPOWER
DESIGN Key
Main Chain

Sub Chain
Examples of extended value chain

Tex le/Garment Value Chain

TEXTILE GARMENT HOME
INPUT PRODUCTION GINNING WHOLESELLING RETAILING
PRODUCTION TEXTILE PRODUCTION

LAND
FARM SITE GINNING SPINNING DESIGNING TRANSPORT RETAIL
PREPARATION

SEED SOWING WEAVING CUTTING SALES

DISTRIBUTE
SEEDS
TRANSPLANTING
KNITTING ASSEMBLING
SELL CONSUME
TOOLS & IRRIGATION
EQUIPMENT FINISHING FINISHING
WEEDING

PACKAGING
Key
FERTILIZER FERTILIZING

Main Chain
PEST & DISEASE
PESTICIDES CONTROL
Sub Chain
HARVESTING

POST-HARVEST
Steps of value chain development
Steps

Preparatory

Phase Value chain development and

solution

Concluding
Value chain
workflow Input Steps Results Responsibilities
GTP Different Actors agreed on
Identified Sector/Sub-Sector/Industry (1) Value Chain Selection joint plan Data about activities,
actors, constraints, etc.
Detailed data about sector, Techno based data Sector & Sub-
Manual: Data (2) Data Gathering Phase sub-sector or industry to be Human based data sector
Gathering Template able to develop value chain Orga based data representatives
Info based data with support

Value Chain description and analysis

Input from TVET
Manual:
* how to develop VC (1) Value Chain AS IS Value Chains incl.
(3) Value Chain Mapping
* Selection criteria for activities, actors, enablers,
benchmark (2) Benchmark Value Chain stakeholders, data
TO BE
(4) Value Chain Analysis Analyses done according to
• Yield, Quality, Cost, Time
As Is against the benchmark • Cost and Return Analysis
Set of criteria (5) Gap identification & = Gap Techno based Gap
Prioritization of the gaps Human based Gap
Orga based Gap
Designed Technology to close Info based Gap
(6) Technology gap
to Value Cain Identification and 100% Copy Team (=
Selection categorization department within TVET)
Designed Technology to close
gap
Project Based Training
Intervention

(7a) Transfer to 100% Trained human resources, e.g. Team (= department

Copy team Lead trainers and/or TVET within TVET)
(7b) Project based trainers are trained to produce
Training technology Lead Trainers and/or
TVET Trainers and/or
Multiplyer MSE are trained Extension Agents
and know how to use or
(8) Assessment & produce technology
Evaluation
Conclusion

MSE is able to use technology

Target reached? and reach intended targets
Value chain selection criteria

GTP
Women Size of
empower sub
ment sector

Conservatio
Employm
n
importance ent

Value chain GDP

Potential
share
impact on selection
SME
criteria

Share of
Product export
diversifica
tion

Growth
Factor potential
condition
Market
potential
GTP priority sectors

GROWTH AND TRANSFORMATION PLAN (GTP)

PRIORITY SECTORS

1 Agriculture 4.2 Road Transport

2 Industry development 4.3 Shipping Transport
2.1 Textile and Garment 4.4 Air Transport
2.2 Leather Industry Energy
2.3 Sugar 4.6 Water and Irrigation
2.4 Cement 4.7 Telecommunication
2.5 Metal Engineering 4.8 Urban Development
2.6 Chemical 5. Trade
2.7 Agro Processing 6. Health
3 Mining 7. Culture,Tourism,Sport
4 Economy and infrastructure 8. Social
4.1 Rail Transport
Rating check list chart.pdf
Data collection

 Compose study team

 Collect data from primary and secondary sources
 Visit the study area to know the existing situations
 Review the background the past experiences
 Specify days of number of days for field visit or any other
 Arrange target respondent
 Prepare data gathering tool (questionaries')
 Refer literatures
Mapping the Value chain

Mapping: It is the visual representation or a flow

diagram of the connections between activities in
chains as well as other market players.

Activities Activities Activates Activates

Activities

Activates

Activates

Activates

Activates
  to translating the findings of
the gathering of data into a
Value Chain
Purpose of mapping
 Visualizing complex things
we find in reality.

Analysis the activates by brainstorming which product or

services comes on the main chain or sub chain.
Mapping terminologies

1. Main Chain is a major activities of work flow in a chain.

Main Main Main

chain chain chain
2. Sub Chain is a sub/support activities of work flow in a chain

Sub chain

Sub chain

Sub chain
3. AS IS: is the actual or existing sequence of activities

4. TO BE: represents the benchmark or the standard used as a point

of reference

5. Benchmarking: The process of comparing own performance

parameters with the performance parameters
Factors to be consider during selection of benchmarking
 Productivity(quality, production/yield, cost)
 Conditions like (level of technology, skill, employment/labour intensive
and environment) Rating chart.pdf
Examples of mapped AS IS value chain
of Metal product

METAL PRODUCT (AS IS)

INPUT PREPARATION PACKAGING &

SHAPING ASSEMBLING FINISHING TRANSPORTING MARKETING
STORAGE

RESEARCH & FINISHED DIRECT

MEASURING BENDING WELDING GRINDING DELIVERY
DEVELOPMENT PRODUCTS IN SELLING
WORKSHOP
LAY OUT MECHANICAL BODY FILLER
DESIGN SCROLLING ASSEMBLY
PROCESS

MATERIAL RIVETING SANDING

SELECTION CUTTING TWISTING Key
PAINTING Main Chain
DRILLING

Sub Chain
 Examples of Mapped TO BE value chain of
Metal product

METAL PRODUCTION (BENCHMARK) GERMANY

PACKAGING AFTER
INPUT QUALITY
PREPARATION SHAPING ASSEMBLING FINISHING & TRANSPORTING MARKETING SALE
CONTROL
STORAGE SERVICE

RESEARCH & INSPECTION PACKED DELIVERY RETAILING

MEASURING BENDING WELDING GRINDING SERVICING
DEVELOPMENT & FINISHED
TESTING PRODUCTS REPAIRING
MECHANICAL WHOLE TRAINING
DESIGN LAY OUT SCROLLING BODY FILLER
PROCESS ASSEMBLY SELLING
STANDARD
STORAGE
MATERIAL RIVETING SANDING
SELECTION CUTTING TWISTING
Key
PAINTING
DRILLING
Main Chain

Sub Chain
 Rice Produc on Value Chain(AS IS)
CULTIVATION & PRODUCTION & POST- HARVEST
INPUT PROCESSING MARKETING
PLANTING MANAGEMENT (40% LOSSES)

CAPITAL SITE SEED GROWTH WEEDING THRESHING POWDERING WHOLESALE

SELECTION SELECTION MONITORING -
FARM SITE
LAND INSECT & PEST DRYING INJERA MAKING RETAIL
TOOLS & SEED SOWING IRRIGATION&
PREPARATION DRAINAGE CONTROL
EQUIPMENT
CROPPING TRANS- MILLING TELA MAKING
MANPOWER PLANTING FERTILIZING HARVESTING
CALENDAR
SEEDS STORAGE
Key
PESTICIDE
TRANSPORTING Main Chain
FERTILIZER
Sub Chain
 Rice Produc+ on Value Chain (To Be)CHINA
CULTIVATION & PRODUCTION & POST- HARVEST
INPUT PROCESSING MARKETING
PLANTING MANAGEMENT (40% LOSSES)

CAPITAL PESTICIDE SOIL TESTING GROWTH MONITORING THRESHING

soil test kit on time(mechanical, 2 ha/ RICE WHOLESALE
day)5hp FARINACEOUS local market/export
FARM SITE FERTILIZER
Dishes
(Adequate IRRIGATION & DRAINAGE
CROPPING
Irrigation) soil CALENDAR
moisture required DRYING BEVERAGE RETAIL
for upland, IRRIGATION & DRAINAGE ,mechanical if rainy Production 35-40 birr/kg,
LAND SOAKING
lowland-5cm season ,sun Display
drying(concrete) Management with
WEEDING price and variety tag
TOOLS & BAKING & PASTRY
(once) (Proper Plowing has great affects on
EQUIPMENT Production
LAND weeding, spray 1day/ha,2hp, manual-1 day/
STORAGE
PREPARATION ha 15hp, water prevent weeds to grow
Mechanized
12-14% MC)wooden/
MANPOWER plastic pallettes
INSECT & PEST CONTROL
SEEDS SEEDLING MILLING
(inbred, PREPARATION HARVESTING In house,mobile miller,no
hybrid)lowland/ (Seed (67 qu/ha lowland)2 crop/yr upland,2-3 broken grain,rice bran
upland Soaking-24h,incubatio crop /yr lowland,Harvester - taken by farmer
n period- 36 h) 40kg/ Harvester/thresher(grains output) 3ha/day
varieties,regular ha PACKAGING
changing,
Sacks,plastic,brandname,
(moisture TRANSPLANTING labels
content 12-14 % Wet direct-
Broadcast-100kg/ha
MC)pure, Dry Direct-100kg/ha, TRANSPORTING
90-100% GP, 20mm depth 10-15 hp, (tractor-
120-140 days 1day/ha trailer,jeepney,cart)
 GUEST ROOM PREPARATION (AS IS)

INPUT GUEST ROOM REPORTING &

PRE-ENTRY ENTRY FINALIZATION
CLEANING INSPECTION

PERSONAL BEDROOM VACUUMING &

CHEMICALS ANNOUNCEMENT ROOM ATTENDANT
PREPARATION CLEANING EQUIPMENT
REPORT
ARRANGEMENT
ROOM
PPE ROOM BATHROOM
ASSIGNMENT &
OBSERVATION CLEANING
KEY SUPERVISORY
GUEST AMENITIES
CLEANING CHECK UP
MATERIALS ROOM STATUS
IDENTIFICATION
GUEST ROOM
MATERIAL
ARRANGEMENT
Key
HUMAN POWER
Main Chain

Sub Chain
 GUEST ROOM PREPARATION (BENCHMARK) AUSTRALIA

INPUT GUEST ROOM REPORTING &

PRE-ENTRY ENTRY FINALIZATION
CLEANING INSPECTION

PERSONAL BEDROOM VACUUMING &

CHEMICALS ANNOUNCEMENT ROOM ATTENDANT
PREPARATION EQUIPMENT
CLEANING REPORT
ARRANGEMENT
ROOM
PPE ROOM BATHROOM
ASSIGNMENT &
OBSERVATION CLEANING
KEY SUPERVISORY
GUEST AMENITIES
CLEANING CHECK UP
MATERIALS ROOM STATUS
IDENTIFICATION
GUEST ROOM
MATERIAL
ARRANGEMENT
Key
HUMAN POWER
Main Chain

Sub Chain
DAIRY AS IS
Dairy TO BE
Terrazzo value chain AS IS

Input identification Material preparation Casting Production and Finishing Delivery and transport marketing
management

grey cement Placing the mix Transporting

Batching Removing and Polishing
selection For storage Local assembler
Mould preparation transporting
Measuring by volume wet tile Placing the tile on and trader
Reviewing
Placing face mix the polishing
cement product
Removing the machine
Cement spraying tile from mould
Grinding the tile
Mixing Placing dry back Transporting to
mix the rack
Aggregate Manual l mix
marble and sand
selection

Observing on site

Leveling

Trimming extra mix Curing

from the mould
Sealing the mould Spraying
Terrazzo TO BE
Food preparation value chain AS IS

STORING &
PURCHASING RECEIVING ISSUING
PREPARING SELLING

-
No full Unable to prepare as Lack of maintaining
documents No checking of No proper storage
per the standard food with proper
specification area temperature

No market No separation of
assessment perishables & non Sub standard
Lack of quality perishable items cooking staff
controller equipment communication
problem
No standard
purchase
specification Lack of properly Unskilled man
regulated power Dalliance of
storage area service
Random lack of proper Inability to
purchase\ no receiving bay prepare as per
identification of No proper the standard No equal service
expiring & documentation recipe -
production date for every guest
No proper No separation poor OHS and poorly trained
Does not follow documentation of food items
and cleaning HCCP in the service
standard agents kitchen personnel
purchasing
procedures Kitchen brigade lack of adequate
with insufficient supervision
knowledge
Food preparation value chain To be
Menu PURCHASING RECEIVING
STORING &
PREPARING SELLING
planning ISSUING

-
Able to full fill the Maintaining
Planning before Preparing full checking of proper storage
purchasing food documents required standard food with
items specification area proper
temperature
Premarket Separation of Maintain
market Quality perishables & standard
assessment controller non perishable cooking
should be items equipment Effective
assigned communication
of staffs
Prepare Recruit skilled
standard Availability of
purchase properly man power
specification regulated Fast and
proper storage area satisfactory
receiving bay The ability to service
Planed prepare as per
purchase\ Access to the standard
- Provide service
identification of proper recipe
expiring & documentation equally with out
production date proper Maintain OHS discrimination
documentation
Food items and and HCCP in the Well trained
Follow standard cleaning agents kitchen
should be kept service
purchasing on separate Well trained personnel
shelves
procedures ,educated
disciplined Kitchen Adequate
brigade supervision
 Manufacturing፡- Value chain of metal door &windows AS IS

Transportin
In put Preparation Shaping Assembling Finishing Marketing
g

Customer Measuring
order -inaccurate Beading Grinding
Welding -un safe
- -improper -Use one die -improper Retailing
agreement technique --no jig Delivery
parameter -in cash
-non SRD -by cart
Material machine - By Bajaj
selection Rolling Filling
-material Lay out -traditional -filler rod
identificatio -traditional tools
n
-material
property
Drilling Sanding
Design Cutting fastening -Manual by
-un safe -less duty -poor
-Photo hand
-Wastage -misaligned technique
gallery
-Sketch -Hand
shearing
-Hack saw
Painting
–by brush
man -Low mixing
Bending ratio
power -out source -dust
-through -traditional environment
experience
 Manufacturing፡- Value chain of metal door &windows BENCH MARK

Packing After
Prepar Shapin Assem Finish Quality Transp Mark
In put &storin sale
ation g bling ing control orting eting
g service
Measur Beading
R&D Grinding
ing -d/t die Weldi -polishing Packing
-SWOT -Accurat -use jig ng -Prepare Promoti Shipp
-demand
-jig fixture Inspecti Delive
e packing M on
for cast fixture -proper - on ry ing
-Proper welding rectificati –banding -Business
Design techniqu parame
-Visual
-Standardi -ready card -by
on
-Material Layeout ter ze -loading -Brusher car
selection -proper - --media - Trial
-BOM Rolling advanc Filling Whole
tools
-utilization -Scientifi -use e -stucco selling
-Working c rolling Standar -Agree
drawing M/C ment
-Cost Cutting Sanding d
estimate -shearing -portable storage on
machine Twisting Testing quality Service
sander -Setting
-metal - Use -Distrac -
- out &
man circular twisting Fasting tive orderly
assurance
Painting quanti -Maintena
power disc m/c - -non
&M/C -by ty nce
cutter advanc distract
-Certified compres - -Training
Bending e ive Prepare Retail
-STD M/C sor air
-use techniq User ing
Checking ue -Correct
Plan bending manual -
-quality mixing
-Operatio -quantity m/c ratio tender
nal -spare
Value Analysis

Value Analysis is analyzing value of each activities.

Method of Comparative Analysis

A. Four Parameters (Yield, Quality, Cost, Time)

B. Line Graph

C. Cost and Return Analysis

A. Four Parameters (Yield, Quality, Cost, Time)

 Yield – refers to level or number of output acquired

 Quality – refers to the level of standard applied

 Cost – refers to the amount of money allotted in a specific activities

 Time – refers to the specific duration, time limitation in performing

the activities
 Examples
Comparative Analysis ( Lowland Rice )
Value Chain Yield Quality Cost Time
I. Cultivation As Is To Be As Is To Be As Is To Be As Is To Be
Site Rainfed Irrigation
selection & dainage
infra
Soil Analysis Free from Done before
MoAg cropping
Cropping Not Recorded Harvesting Harvesting
Calendar Recorded (Oct-Dec) ( Oct-Nov)
Land Traditional Iron curve 4,500 (3-4 5-6 days Amt. of
Soaking/ wooden plow/ times 2000 birr water is
Land Prep plow Hand plowing) available at
Flooded- tractor the right
rainfed time
II. Planting
Rice Seed 55 67 qt/ha Long 200kg.ha 40kg/ha at 150-160 100-110 EM
Varieties quintal / Round grains, at 10birr/ 10 birr/kg days DAP/ 111-120 MM
ha grains registered kg DAS 121 up LM
certified
seeds
B. Line Graph

This shows an analysis of yield using the line graph.

 C .Cost and Return Analysis
This shows the cost of production analysis and the return of investment by comparing the AS IS versus the TO
BE.
COMPARATIVE YIELD ANALYSIS-UPLAND
UPLAND AS IS % TO BE % YIELD ANALYSIS AS IS TO BE
1 1ST 2ND 1. Total Production
= 3,500 kilos 6,000.00
CROPPING CROPPING CROPPING
SEEDS 1, 500 5.51 800 800 3.04 2. Less 10% PH losses 210 kilos 6% losses 180.00 3% PH loses
3. Average Yield pe
FERTILIZER 1, 750 6.42 2,200 2,200 8.38 Hectare
PLOWING 4,500 19.83 6,100 6,100 23.24 = 3,290.00 kilos 5,820.00

PLANTING 600 2.20 600 600 2.28 COST AND RETURN

ANALYSIS
WEEDING 6, 000 26.45 3000 3000 13.71
HARVESTING 900 3.30 900 900 3.42 1. Farm Gate Price
= 8.00 ETB 8.00 ETB
2. Gross Income
THRESHING 1,680 6.17 3,840 3,840 14.63 = 26,320.00 ETB 46,560.00 ETB
TRANSPORT 390 1.43 600 600 2.28
Add: Rice Straw 1,600.00 2,000.00 ETB
SACKS 800 2.93 800 800 3.04 Rice Bran
LAND 7,000 25.71 7,000 7,000 26.67 27,920.00 48,560.00
TOTAL ETB
RENTALS 3. Production Cost
TOTAL 25, 120 100% 26,240 26,240 100% = 25,120.00 ETB 26,240.00 ETB
4. Net Income
= 2,800.00 ETB 22,320.00 ETB

5. Return of Investment
= 0.11 0.85

AS IS TO BE
NET INCOME-ONE CROPPING NET INCOME-TWO CROPPING
2,800.00 ETB 44,640.00 ETB
Identification of gap/constraints

A gap is something missing from an activity.

Constraints/Gaps Analysis of a Value Chain has terminologies

Main Chain Gap

Gap
Activates Activates on Activities
main chain
 Sub Chain gaps

Activities Activities

Sub chain Critically mismanaged

approach gap
gap activities activities

Activities Activities
 Examples

Rice Production Value Chain (Constraints/Gap)

CULTIVATION & PRODUCTION & POST- HARVEST
INPUT PROCESSING MARKETING
PLANTING MANAGEMENT (40% LOSSES)

CAPITAL INJERA, TELA

PESTICIDE SOIL TESTING GROWTH MONITORING THRESHING MAKING
soil test kit on time(mechanical, 2 WHOLESALE
FARM SITE FERTILIZER ha/day)5hp local market/export
RICE
(Adequate IRRIGATION & DRAINAGE
CROPPING FARINACEOUS
Irrigation) soil CALENDAR Dishes
moisture required DRYING RETAIL
for upland, IRRIGATION & DRAINAGE ,mechanical if rainy BEVERAGE 35-40 birr/kg,
LAND SOAKING
lowland-5cm season ,sun Production Display
drying(concrete) Management with
WEEDING
TOOLS & BAKING & PASTRY price and variety tag
(once) (Proper Plowing has great affects on
EQUIPMENT weeding, spray 1day/ha,2hp, manual-1 Production
LAND STORAGE
PREPARATION day/ha 15hp, water prevent weeds to grow 12-14%
MANPOWER Mechanized MC)wooden/plastic Key
pallettes
INSECT & PEST CONTROL
Main Chain
SEEDS
SEEDLING MILLING
(inbred, HARVESTING In house,mobile miller,no
hybrid)lowland/u
PREPARATION
(67 qu/ha lowland)2 crop/yr upland,2-3 crop Main Chain Gap
(Seed Soaking- broken grain,rice bran
pland /yr lowland,Harvester - taken by farmer
24h,incubation period-
Harvester/thresher(grains output) 3ha/day Sub Chain
varieties,regular 36 h) 40kg/ha
PACKAGING
changing,
(moisture
Sacks,plastic,brandname, Sub Chain Gap
TRANSPLANTING labels
content 12-14 % Wet direct-Broadcast- Critically mismanaged
MC)pure,90- 100kg/ha Dry Direct- TRANSPORTING approach
100% GP, 120- 100kg/ha,20mm depth (tractor-
10-15 hp, 1day/ha
140 days trailer,jeepney,cart)
Prioritizing the technology Gaps/Constraints

Criteria's used for prioritizing the technology gaps

1. Marketability 3. Capability and

4. Functionality 6. Import Substitution
 Attractiveness 2. Profitability Usefulness
 The quality of  Able to replace the
to potential  Able to yield a  Able to be used
being suited product imported
buyers of the profit or for a practical
to serve a from outside of the
product and financial gain purpose or in
purpose well country
services several ways

9. Potential 11. Employment

7. Feasibility Impact to the MSE 10. Woman  Ability to utilize
 State or degree 8. Adaptability  Able to Empowerment available manpower
of being easily  Able to adjust strengthen the  Able to offer including persons
or conveniently into a local linkages with equal rights to with disability and
done within condition Micro Small men and can reduce the
MSE’s level and Medium women unemployment rate
Enterprises in the country
 Technology Identification and Categorization

Technology identification: Identifying technologies from the benchmark.

Categorization of technology: segregating identified technologies

according to four categories of technologies.
 Four categories of technology

TECHNOLOGIES DESCRIPTION

TECHNOWARE (TOOLS) Includes materials, gadgets etc. This component is the object-embodied physical
technologies, like tools & equipment, implements, vehicles and machinery

HUMANWARE (SKILLS) Includes human knowledge, ability and experience. This component is the
person-embodied art-of-doing technologies, like ingenuity, craftsmanship, skills in
performing the task.
INFOWARE (FACTS) Includes organized information, work processes, design etc. This component is
the record-embodies know-what–why-how-type technologies, like systematized concepts
and technical specifications (parameters, diagrams, formulae, theories and manuals).

ORGAWARE (SETUPS) Includes organizational structures, setups, methods of doing things etc. This
component is the organization-embodied work-operations-schemes-type technologies.
Like Soil testing Laboratory, Food Processing Plant
 Example, Segregating identified technology

VALUE TECHNOWARE HUMANWARE INFOWARE ORGAWARE

CHAIN

CULTIVATION  Soil Test Kit  Prepare land for agriculture  Seed Quality Manual  Seed Center

 Improved Iron Plough crop production – FCP L3  Soil Sampling Manual  Soil Analysis Center

 Low Draft Chisel Plough  Soil samples and analyze results  Land Preparation  Mechanization Bureau
– FCP L3 Manual  Crop Insurance Agency
 Para Plough
 Establish Nursery- FCP L3  Seedling Preparation
 Tractor Drawn Bed Furrow Maker
Manual
 Spading Machine
 Tractor Operation &
 Power tiller
Maintenance Manual
 Rotator
 Spring Tyne Cultivator
 Tractor Drawn Disc Plough
 Tractor Drawn Disc Harrow
 Mini Power Tiller

PLANTING  Seedling tray Transplant seedling – FCP L2 Transplanting Manual

 Transplanted
 Validation
The technical advisory panel (TAP) at Sector-Industry Leading Body should
validate it.

Assessment and Evaluation

The technology which is identified from value chain analysis should be

assessed and evaluated.
 ROLE OF ACTORS AND STAKEHOLDERS

Actors are those who have direct engagement on value chain development.
These are;
Sectors, subsectors and development institutes
Research institutions, Universities,
TVET
Industries, chambers
Stakeholders are those who support the value chain development. These are;
Input suppliers
professional Association
NGOs
Donors
 TVET Sector roles
I. Federal level

 create awareness and build capacity

 Facilitate and work collaboratively

 Generate concepts for the implementation

 Intervene in the solution,

 Generate obligatory rules for the implementation of value chain,

 facilitate the process of validating developed value chain,

 support and follow up the value chain development and implementation,

 Designing and formulating value chain upgrading strategies,

 Conduct Monitoring and evaluation,

II. Regional level
• create awareness and build capacity

• Facilitate and work collaboratively

• Generate concepts for the implementation

• Generate obligatory rules for the implementation of value chain,

• facilitate the process of validating developed value chain,

• carry out value chain development at a cluster level according to growth corridor,

• Implement the validated value chain accordingly,

• support and follow up the value chain development and implementation,

• Designing and formulating value chain upgrading strategies,

• Conduct Monitoring and evaluation,

TVET institutes/Dean, Industry Extension Vice-Dean:
create awareness and build capacity.
 Identifying local growth corridor.
 Involve and work collaboratively.
 Facilitate technology copy & transfer implementation.
Trainers
 Trainers can participate on value chain development as
technical expert, if and only if their expertise skill is
desirable.
 need to have a clear understanding on value chain
development, and implication on technology copy &
transfer as well as project based training
Industries(from large to micro level)
Being cooperative.

Intervene in the solution,

support all actors and stakeholder

Indicates where or at which stage value is added and how much,

Roles of stakeholders
 Provide consulting.
 technical support on value chain development,

 support in financing the value chain development,

 share international experiences on value chain development,

Thank you !