PROJECT IMPLEMENTATION PLAN ADDENDUM

31 May 2018

1. Project Code 17-AG-39-GE-NFP-C-11

2. Title Productivity Enhancement through Applications of Industry 4. 0 inFiji

3. Reference Project Notification 17-IN-83-SPP-OSM-A dated 29 September20f7; Project Notification 17-AG-39-GE-NFP-C dated 9 May2017; Project Notification Addendum dated 11 July 2017; andProject Implementation Plan 17-AG-39-GE-NFP-C-11 dated 17May 2018

4. Timing & Duration 1 8-23 June 2018 (six days)

5. Venue Suva, Fiji

6. Addendum No. 1

7. DetaUs Change in Venue in Project Implementation Plan

7-1 Change in Item No 5. "Venue"

The project implementation venue has been changed from Suva, Fiji to Suva and Nadi, Fiji.

Other terms and conditions specified in the Project Implementation Plan dated 17 May 2011remain unchanged.

Dr. Santhi KanoktanapomSecretary-General

Asian Productivity Organization1-24-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan Tel: (81-3)3830-0411 Fax: (81-3)5840. 5322 www.apo-tokyo. org

17 May 2018

1. Project Code

2. Title

3. Reference

^py

PROJECT IMPLEMENTATION PLAN

17-AG-39-GE-NFP-C-11

Productivity Enhancement through Applications of Industry 4. 0 in Fiji

Project Notification 17-FN-83-SPP-OSM-A dated 29 September 2017;Project Notification 17-AG-39-GE-NFP-C dated 9 May 2017; andProject Notification Addendum dated 1 1 July 2017

4. Timing & Duration 18-23 June 2018 (six days)

5. Venue

6. ImplementingOrganizations

Suva, Fiji

National Training & Productivity Centre (NTPC)Fiji National UniversityLot 1, Beaumont Road, Narere, Suva, FijiPhone: 679-339-2000 Fax: 679-334-0184e-Mail: dntpc@fnu. ac. fj

Fiji Commerce & Employers Federation (FCEF)Employers Hub42 Gorrie Street, Suva, FijiPhone:679-331-3188

7. No. of Participants Up to 200 participants

8. Objectives

a. To assist Fijian manufacturers to develop and transition their operations to Industry 4. 0; and

b. To understand how to tackle the challenges in the applications of Industry 4. 0 in the context ofmanufacturing in Fiji

9. Background

Fiji is ranked among the more favorable countries for manufacturers in the Melanesian SpearheadGroup due to its affordable utility costs. However, since there is still little knowledge of Industry4. 0, most manufacturers identify their operations as at the Industry 2. 0 stage. Larger manufacturers,mostly multinational enterprises, are now in Industry 3. 0. The implementation of Industry 4. 0 inthe Fijian context will start with upgrading to Industry 3.0 using the Internet of Things (loT) tostreamline manufacturing processes by connecting all computer numerical control operations andcentral control systems to analyze the performance of production lines and incorporate signals toavoid downtime.

TheAPO, with financial support from the Ministry of Foreign Affairs of Japan, organized a studymission on Productivity Enhancement through Applications of Industry 4.0 in Tokyo, 6-9 March2018. During that study mission, Chairperson Himen Chandra, Trade Standards Advisory Council,Ministry of Industry, Trade and Tourism of Fiji and Immediate Past President of the FCEFrepresented Fiji. The NTPC and FCEF are conducting a follow-up project to intensify the sharing

1-24-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan Td: (81-3)3830-0411 Fax: (81-3)5840-5322 www.apo-lokyo.org

of knowledge on best practices for promoting productivity enhancement through applications ofIndustry 4. 0.

10. Scope and Methodology

For training by the NTPC, the methodology will include lectures, videos, and Q&A sessions.Participants will be presented not only with the theoretical concepts of Industry 4.0 but also withpractical examples of how IT applications in business processes and factory operations can be usedto address labor constraints, sustain profitable operations, and improve productivity.

The FCEF plans a one-day workshop for Manufacturing Trade & Export Council members alongwith a day of visits to manufacturing organizations. The approximately 200 participants will alsoattend the FCEF Annual Top Executive Conference where the APO-assigned international resourceperson will join other speakers to address senior executives, business leaders, and representativesfrom the public sector on topics related to the loT and the future of work.

The tentative program is given in Appendix 1.

11. Requirements of Participants

The participants should be operation managers in the manufacturing-related sector; seniorgovernment officials involved in setting industrial policy; representatives of industrial associations;managing directors, chief executives, and senior managers from the Manufacturing Trade & ExportCouncil; senior executives from both the public and private sectors; or business leaders and boardmembers.

12. Resource Persons

The APO will assign one overseas resource person. Local resource persons from relevant agencieswill be assigned by the implementing organizations.

13. Financial Arrangements

To be borne by the APOa. All assignment costs of one overseas resource person.b. Implementation costs up to a maximum of USD5,330 for making local arrangements. An

itemized breakdown of the implementation costs is attached (Appendix 3).

To be borne by the host country (Fiji)a. Implementation costs exceeding the APO share ofUSD5,330.b. Project management fees and personnel costs of the implementing organizations in Fiji.c. Any other local implementation costs not covered by the APO.

14. Roles and Responsibilities

The roles and responsibilities of the implementing organizations (as listed in section 6) and APOare:

Implementing organizationsa. Inviting local participants and arranging mass media coverage;b. Assigning local resource persons;c. Making copies of the conference and workshop materials;d. Organizing the program for a two-day training session, two-day workshop, and two-day

conference in Suva, Fiji; ande. Bearing part of the project cost in excess ofUSD5, 330.

2-

APOa. Providing financial support for organizing the program as detailed in section 13;b. Assigning one overseas resource person for the program; andc. Coordinating with the overseas resource person and implementing organizations.

15. Procedures for Project Implementation

This project is to be implemented by the local implementing organizations in Fiji in closecollaboration with the NTPC and APO Secretariat, referred to as the APO in this document.

a. The proposed project will be carried out by the implementing organizations.

b. The local implementing organizations in Fiji will make the expenditures for the assigneditems and settle the entire account by providing all necessary proof of payment, e.g., bills,payment records, and receipts issued by third parties, which must be submitted together at onetime, written in clear English, and with an English translation of all documents not originallywritten in English. In general, internal evidence is not accepted as proof of payment and willnot be reimbursed. The payment will be made based on the actual expenditure after theimplementing organizations submits the project completion report.

c. The local implementing organizations in Fiji will submit a comprehensive project completionreport including a statement of expenses to the APO within one month of project completion.The report will provide details on how the project was carried out in Ihe country; program ofactivities; a registration list of participants and resource persons; number and type ofparticipants; statement of the expenses related to the APO's contribution to the project;benefits and advantages to the manufacturing sector, local businesses, implementingorganizations, and host country; recommendations and follow-up action plans; selectedphotos; and summary of the onsite evaluation of the program by the participants, resourcepersons, and implementing organizations along with the original evaluation forms completedby them. Other forms of documentation may also be submitted as part of the comprehensiveproject completion report.

16. Final Project Output and Outcomes

Upon completion of the project, the NTPC in collaboration with the FCEF will undertake thefollowing:

a. Submit a project completion report on the training, workshop, and conference to the APO anddisseminate the report on the proceedings of the program including recommendations torelevant government bodies within one month after project completion.

b. Submit a statement of expenses supported by third-party receipts/bills within one month afterproject completion.

c. Submit documents and e-links relating to promotional material on the national program, e. g.,newsletters, news articles, brochures, bulletins, and news clippings, written in English or thelocal language with an English translation of the main points.

d. Disseminate the knowledge and experience gained to the public and private sectors throughpublications, consultancy services, training courses, etc.

e. Monitor the follow-up actions undertaken by participants or participants' organizations andreport them to the APO.

-3

After completion of Die program, participants or their organizations will undertake the following:

Government agencies and universities:a. toclude innovative techniques and technologies of Industry 4.0 in extension programs; andb. Coordinate with various agencies in support of awareness, extension, and adoption of Industry

4.0 initiatives.

Participants:a. Submit action plans to the NTPC and FECF for the implementation of concepts, technologies,

and best practices in their own organizations;b. Inform the NTPC and APO of success stories on the implementation of the lessons and

insights learned from the program; andc. Submit requirements for government agency assistance for their own action plans.

Expected outcomes:a. Developing productive, innovative mindsets on new ways of production utilizing Industry 4.0

tools and techniques;b. Adapting emerging approaches in implementing Industry 4.0 for strategic advantage in

business; andc. Enhancing the productivity and competitiveness of the Fijian manufacturing industry.

Dr. Santhi KanoktanapomSecretary-General

-4-

Project Code: 17-AG-39-GE-NFP-C-11 Appendix 1

Tentative program

APO National Follow-up Program on Productivity Enhancementthrough Applications of Industry 4.0 in Fiji

Suva. Fiji, 18-23 June 2018

Provisional Program of Activities for the NTPC:

DAY 1:18/06/188:30 Welcome & Introduction9:00 . Industry 4.0 definition

. Benefits of Industry 4.0

. Industrial revolutions and future view

. The digital transformation of industry and the FourthIndustrial Revolution

10:00 Morning tea break10:30 . Principles of smart factories

. Industry 4. 0: key principles

. Automation 101

. Industry 4. 0 and the industrial Internet13:00 Lunch break

14:00 Status of Industry 4.0

Industry 4.0 strategy and implementationIndustry 4. 0 challenges and risks

15:15 Afternoon tea break15:30 Role of leadership and technological capabilities in

implementing Industry 4. 0 for strategic advantage inbusiness

16:30 Conclusion of day 1DAY 2:19/06/18

8:30 Recap of day 19:00 Leadership capabilities

Industry 4. 0 and the future of productionEffects and challenges

10:00 Morning tea break10:30 * Digitization of manufacturing

. Disruptions

. Data volumes, computational power, and connectivity innew low-power wide-area networks

3:00 Lunch break

-5-

14:00 Recommended strategies for developing the necessaryskills

Foundational capabilities to support implementation15:15 Afternoon tea break

15:30 Industry 4.0 technologies within an organization^16:30 Closing and evaluation

Provisional Program of Activities for the FCEF:1-day workshop: 20/06/188:30 Welcome and introduction

9:00 Setting the scene

Situation analysis for Fijian manufacturers and the MelanesianSpearhead Group

10:00 Morning tea break

10:15 Challenges faced by Fijian manufacturers

11:15 Situation of Industry 4. 0 in Germany (comparison with Japanand how to start)

12:15 Lunch break

13:15 Action plan design

15:15 Afternoon tea break

15:30 Action plan presentations16:30 Closing and evaluation

Site visits: 21/06/18

-6

Project Code: 17-AG-39-GE-NFP-C-11 Appendix 2

Tentative Program for Annual Top Executive Conference

TOPEX CONFERENCE AGENDA 2018"CMAMOE & TRANSmO.S'; READINESS & RESISTANCE"

22 &23 June 2016, Ss>f;ltJ!Fl(] Reiort&Sps. Daniyau

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Appendix 3

Project Code: 17-AG-39-GE-NFP-C-11

Estimated costs for the National Follow-up Program onProductivity Enhancement through Applications of Industry 4.0 in Fiji

Suva. Fiji, 18-23 June 2018

NTPC: 18-19/06/18

No.

2.

3.

Sub-total (a)

Item

Rental costs of room and

equipment for 35 pax atGrand Pacific Hotel

(meals not included)Reproduction ofconference materials

Conference kit (pens,paper, etc.)

APO budget(USD)

4,700

210

20

USD4, 930

Local partnersbudget

FCEF: 20-21/06/18

No. Item APO budget(USD)

Local partnersbudget

Rental cost of room

(FEFHA boardroom) andequipment (meals notincluded)

150

2. Reproduction ofconference materials

(printing and binding

100

3. Conference kit

^iptepads, etc.)(pens, 50

4. Transportation costs forsite visits

100

Sub-total (b) USD400

TOPEX: 22-23/06/18

No. Item APO budget(USD)

Local partnersbudget

Rental cost of room and

equipment (meals notincluded)

FCEF

2. Reproduction ofconference materials

FCEF

3. Conference kit (pens,papers, etc.)

FCEF

Sub-total (c) FCEF

Grand Total (a+b + c) = USD 5,330