Our impact, Their voices

SMEs in Peru transform to become more productive and competitive

Through government lead initiatives to institutionalise SCORE, a sustainable model has been developed to ensure more Peruvian business have access to SCORE Training.

Article | 12 May 2019
The impressive change with SCORE Training: a new vision for workers and employers, working together to achieve positive change that benefits all.

In the current changing business environment, new patterns of purchase and consumption require the digitalization of processes and the personalization of products. This requires companies to implement and maintain a high degree of flexibility in their production systems. Small and medium sized enterprises (SMEs) in developing countries such as Peru, are slow to react to changes, and often don’t have the tools to maintaining operations without degrading their employment conditions.

Solasky S.A.C., is a factory that produces plastic bottles and offers packaging services in Lima, the Peruvian capital. Before SCORE Training, the company had constant problems with lack of order in the production areas: raw material and tools were often lost or misplaced. Additionally, high production costs meant they were not competitive in the market. This was also connected to lack of management policies, lack of workers´ training and high labour turnover.

The enterprise implemented 5 SCORE Training modules and achieved, through cooperation between management and workers, increased productivity and better working conditions. They reduced waste and the use of resources (materials, water and energy). Now they report having a more orderly and clean work environment, training provided to workers, human resources responsibilities, and a new ´´team approach´´ that allowed the company to expand to new markets.

SCORE Training’s focus on developing cooperative working relations resulting in shared benefits, is delivered through 5 SCORE Training modules: Workplace Cooperation, Quality Management, Clean Production, Human Resource Management, and Occupational Safety and Health – each offered via a two-day workshop for managers and workers, followed by on-site consultations with industry experts that help to put the training into action.

In Perú, 215 companies have been benefited with SCORE Training. Those SMEs have strengthened their capacities and team work skills to obtain the following results:
  • Cost reductions of up to USD 11,000
  • Reduction of absenteeism up to 20%
  • Reduction in labour accidents up to 20%
  • Production increase up to 43%
  • Labour turnover reduction on average 45%
  • Optimization of the use of physical spaces from 5 - 30%
Seeing synergies with their SME development agenda, the Peruvian Government - Ministry of Production (PRODUCE), signed a framework agreement with the International Labour Organization (ILO) for cooperation in 2016, with the aim of institutionalizing SCORE Training as part of the ‘Promotion of Productive Development Program’. The enterprise improvements experienced by Solasky, as well as by many other SMEs in the country, were implemented as a result of this agreement.

The Technological Institute of Production (ITP) is an agency executing the policies of PRODUCE and manages the network of Productive Innovation and Technology Transfer Centers (CITEs). At the request of the Institute, since 2017 SCORE Training has been carried out in nine Centers across seven regions. During this process, a base of certified SCORE Trainers was formed, and benefited more than 50 companies with SCORE modules and trained 194 workers. Additionally, a funding mechanism was established, where the ILO gradually withdraws participation over a period of 2 years.

As part of framework agreement with the ILO, in 2017 PRODUCE executed a fund for public bidding of business services of USD 65,000, to implement SCORE Training in 40 companies. By 2019, PRODUCE will allocate a similar fund, which will expand the intervention in two additional regions. These actions and results in selected companies form the base of the “empirical experience” in the manufacturing sector, which will allow the incorporation of SCORE Training as part of PRODUCE´s permanent goals and have a designated budget line within the Ministry.

Meanwhile, in 2018 the Ministry of Labor (MTPE), established a sectorial strategy for labour formalization, based on the integrated approach that the ILO establishes: aim to improve labour productivity as a mechanism to generate the necessary conditions to transition to formalization. Among the tools established by the strategy is the implementation of SCORE Training and SCORE Microenterprise (a modified training process for microenterprises). The MTPE plans, along with PRODUCE, to incorporate SCORE Training and SCORE Microenterprise as a permanent tool and have a designated budget line for SCORE.

These actions with the Ministries of Production and Labour, facilitate business growth while ensuring opportunities for formal work, within a framework of respect for the environment. Clearly, the employers´ and workers´ organizations are also beneficiaries of these efforts, which they support through their participation in the Tripartite Consultative Committee in Peru.

Through these government lead initiatives to institutionalise SCORE, a sustainable model has been developed to ensure many more Peruvian business have access to SCORE Training, improving their competitiveness while upgrading skills of their workforce to meet the demands of an increasingly challenging business environment, while ensuring that Peru is at the forefront of new global market needs.

For more on the improvements made in Solasky, please refer to this short film.