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An Assignment of Joint Donor Technical Assistance Fund (JDTAF) Conducted by, Foyzul Bari Himel.

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Presentation on theme: "An Assignment of Joint Donor Technical Assistance Fund (JDTAF) Conducted by, Foyzul Bari Himel."— Presentation transcript:

1 An Assignment of Joint Donor Technical Assistance Fund (JDTAF) Conducted by, Foyzul Bari Himel

2 Evaluate possible structure for: National Electro Medical Equipment Workshop and Training Center (NEMEMW&TC) Transportation Equipment Maintenance Organization (TEMO) Proposed Options: Spinning Off into a Public Corporation Outsourcing Services from Private Companies

3 Step 1: Feasibility of the Proposed Structures Whether the proposed structures are operationally feasible Whether the proposed structures are financially feasible Step 2: Comparison among structures in the perspectives of Cost Risk Performance

4 Sources of Information Secondary Source Primary Source Information Collection Method Secondary Literature Review Face to Face Interview with: HSM Officials (LD, HSM, Project Managers) NEMEMW&TC Officials (CTM, TMs, Technicians, other officers) TEMO (WM, AO, SAE, other officers) Public and Private Hospitals and Health Facilities Private Transportation Equipment Maintenance Entities Private Electro Medical Equipment Providers


6 National Electro Medical Equipment Maintenance Workshop and Training Center Equipment Procurement Assistance Technical Specification Development Evaluation of Procurement Bids Equipment Procurement Assistance Technical Specification Development Evaluation of Procurement Bids Equipment Commissioning Installation Calibration Equipment Commissioning Installation Calibration Equipment Maintenance Preventive Maintenance Corrective Maintenance (Electrical, Electronics, X-Ray, Mechanical, Optical, A/C) Equipment Maintenance Preventive Maintenance Corrective Maintenance (Electrical, Electronics, X-Ray, Mechanical, Optical, A/C) Training On Commissioning On Maintenance Training On Commissioning On Maintenance Service Provider Services CMSD Government Hospitals and Health Complexes Public Medical Educational Institutes Public Medical Research Entities Services Recipients Regular Service Intermittent Service Planned but Unavailable Service

7 PositionStatus of HR Sanctioned Posts Currently available Vacant CTM, TM, AE1st class officer AO, Sub AE, PO2nd class oficer Sr. Tech, Tech3rd class th class Total

8 1 acre land area 1 administrative building, 1 workshop 5 vehicles 1 full fledged inventory of spare parts 6 repair sections – electrical, electronics, X- ray, optical, A/C, and mechanical refrigeration 1 training section with demonstration and trainee accommodation facilities

9 ServicesGaps in Service Provision Equipment Procurement Assistance None Equipment Commissioning Very limited installation services, only if the vendor does not provide it No calibration services Equipment Maintenance No preventive maintenance Less than 30% of required corrective maintenance Maintenance provided only for older equipment No service is provided for latest and or highly technical equipment Training Intermittent provision of services No service was provided in last few years Training depends on availability of fund from GOB or DPs

10 Technical Resource Pool: much smaller than required size (35 Technicians for over 700 GOB hospitals) Lack of system for continuous Updating of Technical Knowledge Rigid structure barring demand driven changes in service provision; Human resources structure not revised despite increased demand of electro medical equipment maintenance services; No Management Autonomy allowing self-generation of revenue to supplement the budget or any incentives to do so; Budget allocation not in pace with increasing demand for maintenance services;

11 Currently the private electro medical equipment industry in Bangladesh is not ready to takeover the functions of NEMEMW&TC REASONS Performance Perspective of Electro Medical Equipment Suppliers : do not have large enough inventory of equipment and spare parts to cover all GOB health care facilities Human resource pool is not large enough to serve all the service recipients Technical skills not diversified enough to maintain equipment of all companies and country of origin

12 Risk Perspective Volatile nature of industry, no policy for electro medical equipment business, no association or business member organization to regulate service providers business behavior, no apparent exit barrier Limited investment from the suppliers, no workshop or infrastructure setup, limited investment, dependency on mother company for spare parts and equipment replacement Existing technical human resources of NEMEMW&TC will not be able to reinstate in other departments within ministry, private service providers do not have the capacity to consume the entire technical human resources pool, potential risk of employee unrest

13 Cost Perspective Existing spare parts and equipment inventory is suitable only for older equipment installed in GOB health facilities, and hence would not be possible to sell, resulting wastage Existing technical human resources are required to be compensated in return of cash, as it is not possible to reinstate them within ministry Service charge from Private service providers will be high, resulting additional cost involvement for CMSD

14 As a public corporation, the organization can: Grow more flexibly based on business needs and growth plans prioritizing service provision: can hire HR based on skill needs; purchase demand based equipment and spare parts; Provide quality services: respond to service request at the quickest time and at lower cost through revitalization of DEMEWs; Generate own revenue; Relate performance with finance, motivating the employees to perform and enhance satisfaction Maintain impartiality in providing services to public medical facilities through CMSD; Greater accountability as the corporation will be responsible for its profit and loss;

15 Advisory Technical Specification Development Technical Evaluation of Procurement Bid Inspection of Equipment Quality for Goodness of Fit CommissioningCalibrationInstallationMaintenance Preventive Maintenance Corrective Maintenance ConsultancyFacility Layout Equipment Planning Training and Technical Assistance Training Workshop Facility Rental

16 NEMEMW&TC DEMEW CMSD Medical Education and Research Institutes Govt. Hospitals Govt. Upazila Health Centers Advocacy Maintenance Private Hospitals, Clinics, Medical Colleges Consultancy Technical Educational Institutes Training & Technical Assistance Installation Service Provision Service Charge Payment

17 Conduct survey for electro medical engineering services both in public and private sectors to identify – Specific areas of service demand and extent of service requirements in each area; Potential clients segregated into public and private sectors; Estimated cost of the service provision; Service charge that the potential customers think feasible enough Develop Business Plan based on survey findings including: Services to be provided; Determining Service charge; Service delivery modality; Cost analysis for service delivery; Revenue Generation Plan;

18 Develop an Organizational Plan incorporating – specific structure for board of directors; Executive management and implementation level; staffing plan in line with market demands and revenue target of the company. This should also include specific salary, allowances and other benefits of the staffs to ensure required employee satisfaction Legal issues associated with the restructuring including risks, and mitigation measures for those


20 To ensure regular maintenance and mobility of vehicles under MOHFW health facilities Service Mandate – Technical Assistance to CMSD Maintenance, both preventive and corrective, of vehicles of MOHFW in and outskirts of Dhaka

21 Workshop Manager (1) Sub-Asst. Engineer (1)Store Officer (1)Accountant (1)Administrative officer (2) Store man Tech (2)Clerk/Typist (2)Chief Guard (1)Driver (6) Guard (8)Peon (3)Cleaner (2) Sr. Mechanic (5)Sr. Electrician (1)Driver cum Mechanic (3) Body repairer (3) Jr. Mechanic (13) Cleaner (12) Jr. Electrician (3) Wielder (2)Painter (3)

22 Technical Assistance to CMSD Provide Technical Specification for vehicles to be procured Assist in bidding evaluation Inspection of supplied vehicles against quoted specification Maintenance services in the following areas: Power transmission and Auto-electrical, Engine troubleshooting, Engine overhauling, Chassis related functions wheel alignment and related services. Body Works

23 1 Acre of Land Area 1 Administrative Building 1 Workshop Shed with required equipment to maintain vehicles 1 Store room, 1 guard room, 1 dinning room and 1 parking shed 3 Vehicles Six functioning sections - Power transmission and Auto-electrical; Engine troubleshooting; Engine overhauling; Chassis related functions; wheel alignment and related services; and Body Shop

24 Satisfactory service delivery to CMSD Less than 20% of required preventive service provided to the MOHFW vehicles within and outskirts of Dhaka Less than 50% of required corrective maintenance services provided to the aforementioned vehicles Lengthy process in availing required services Troublesome service reception for the recipients since there is only one workshop and located in Mohakhali, which is rather inconvenient for many health facilities even in Dhaka

25 Inadequate technical persons (only 47 with only 8 senior technicians) to provide maintenance services for all the vehicles under MOHFW and its implementing agencies within and outskirts of Dhaka Large number of non-technical persons (28) resulting in high overhead cost Rigid structure barring demand driven change in service provision and incorporation of human resources with updated knowledge to provide better services Centralized service provision from the workshop in Mohakhali, a place which is inconvenient for most of the health care facilities in Dhaka and the outskirts;

26 Operationally it is feasible but it will not increase performance to a large extent

27 No competitive advantage over private service providers in terms of variation and efficiency of service provision No special service offer to attract private vehicles and increase revenue Service provision will still continue from a central location, with existing problems of inconvenience for vehicles to avail services Maintenance capacity will not be increased to a significant level, the structure would not be able to provide services to a large number of vehicles, revenue generation will not be enough to sustain itself, reliance on government funds or DPs

28 Majority of the functions can be outsourced from Private Service Providers

29 Private vehicle maintenance sector is well established and equipped with over 25,000 maintenance facilities throughout the country; 5,000 in Dhaka; Larger facilities have huge investments averaging BDT 400 million and capacity to assemble vehicles; Even smaller ones have capacity to provide regular maintenance services for all types of vehicles Strong association of service providers regulate business behavior; Minimum Risk of service discontinuity; MOHFW vehicles outside Dhaka are already availing services from private providers;

30 Providing technical assistance to CMSD in : Developing procurement specifications Evaluating technical bids Ensuring quality of the supplied vehicle as per the specification

31 TEMO (Smaller Structure, Mostly Technical People, 7-8 Positions) A Pool of Private Service Providers (Located in and outskirt of Dhaka) Vehicles under Government Health Facilities within and outskirts of Dhaka MOHFW CMSD Reporting Technical Assistance Monitoring Vehicle Maintenance Services CMSD Pays for Services Ministry Pays TEMO Staffs

32 Option 1: Placing existing technical resources to Central Vehicle Maintenance workshop under the Directorate of Government Transport Placing non-technical personnel in different departments of the ministry Selling infrastructure, inventory and other physical resources Option 2: Convert TEMO into an employee cooperate led entity Handing over physical infrastructure to the cooperative Cooperative to operate as independent vehicle maintenance entity like the private service providers Option 3: Releasing employees -Golden Handshake scheme Allocating physical infrastructure and other resources in dispense of other agencies under the ministry

33 Thank You

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