Consultant for Process Improvement in Leather Production

Consultant for Process Improvement in Leather Production

Project Overview and Role:

Guatemala is a developing country with great potential for economic growth. However, despite the efforts made by the Government to boost growth, Guatemala faces major challenges related to sustainable development. The estimated population is 14,901,286 people (48.5% men and 51.5% women), and about 41.7% are Indigenous. It is considered a young country, as 54.69% of the population is 24 years old or younger. Despite this potential, 59.3% of the population lives in poverty, earning less than Q.10,218.00 or US$1,327.31 per year. Guatemala faces a series of adverse realities including, in addition to poverty, high rates of social, cultural, and historical violence that divides the country along ethnic, economic and geographic lines. Migrants cite the problem as “lack of employment opportunities, income generation and educational opportunities. There are no technical careers for young people in Guatemala”. According to data from the Ministry of Education, 170,000 students graduate each year; however, the gross employment rate remains below 60%, evidencing the problem of labor market insertion in the country.

The USAID/Guatemala Creating Economic Opportunities (CEO) Project supports economic growth, private sector development, competitiveness, and job creation in Guatemala. It also strengthens investment and trade promotion, catalyzes productive infrastructure, develops Guatemala’s labor force, and improves the enabling business environment. A central objective of the CEO Project is to strengthen the private sector as an engine of growth to reduce poverty, improve living conditions, and create sustainable economic opportunities in Guatemala for Guatemalans. By focusing on the country’s secondary cities as natural platforms for investment and growth, cultivating partnerships among stakeholders in the public, private and civil society sectors, and emphasizing an ecosystem conducive to innovation and entrepreneurship, the CEO Project plays a key role in creating jobs, facilitating investment, and promoting prosperity in the country’s interior.

In this context, one of the strategic and operational actions of the Project is to contribute to improve financial services practices in Banks, Cooperatives, Financial Institutions and Impact Funds in the Project territories, through interventions that address the supply of capital to small, medium and large businesses, as well as to strengthen the practices and skills of the demand side in terms of the presentation of bankable business projects by these businesses and/or SMEs that operate independently or are part of production or value chains.

For its part, GRUPO JC WYN, S. A., an industry in the tanning sector since 2008, has shown sustained growth in its operations in recent years. During 2021 they produced and commercialized around 800,000 square feet of leather, more than 500,000 Kgs. of fleshing, generating with this productive process 38 direct jobs in the production plant. As a result of market demand, the company expects significant growth in production in 2022 and 2023, which suggests significant investments, increased sales, and the creation of new jobs for young people, women, and men. In addition, within the framework of the alliance formalized between the Project and this company through a Letter of Understanding, one of the priority areas is to provide technical support to improve the quality of their products through on-site advisory services in leather manufacturing and good industrial safety practices, The Project and the SME have prepared these Terms of Reference for the identification of an international consultant to provide specialized technical assistance services to improve the processes and production lines of leather skins and training for the company’s personnel in all the processes to be established as a result of this technical assistance.

Primary Duties and Responsibilities: 

OBJECTIVES

GENERAL OBJECTIVE

To support the company in improving and increasing its level of efficiency and productivity in the leather production process in order to increase its competitiveness in local and international markets.

SPECIFIC OBJECTIVES

That GRUPO JC WYN, S. A. has an analysis of the production processes and leather production lines (process flow diagram), and a diagnosis of the condition and availability of machinery and equipment.

That GRUPO JC WYN, S. A. has an analysis of the gaps and areas for improvement, and a technical proposal focused on increasing productivity and quality of finished products.

That GRUPO JC WYN, S. A. optimizes manufacturing processes, improves production lines, and increases productivity and quality levels in leather production, with a focus on environmental sustainability.

CONSULTANCY PRODUCTS

Diagnosis, evaluation, and analysis of the current leather production processes, which should address from the reception of fresh and salted hides, process flow, condition and use of machinery and equipment, profile and roles of employees working in the plant, supply of raw materials and inputs, inventory control recording tools, waste, and wastewater management, among others.

A process and plant production manual with its diagrams/process flows, machinery/equipment redistribution and environmental measures (solid and liquid waste management) with their respective design indicators or metrics in each of the phases of the production plant that allow measuring its performance.

A training and technical assistance plan to be implemented in the different areas of the company, including the process and production manual designed in the consultancy, good manufacturing practices and industrial safety in leather manufacturing, focused on improving productivity and product quality.

ACTIVITIES

The following is a suggested set of indicative activities for the consultant. When submitting the Work Plan, the professional should propose adjustments to these activities if deemed appropriate for approval by the SME and the Project.

a) Preparatory and coordination actions

It is important to emphasize that the services should focus on the implementation and execution of actions to modernize and make processes more efficient. What is expected is that the consultant, together with the company’s management and the USAID/CEO project’s business advisor, define exactly the work route to be followed, the phases and the strategic actions.

• Elaborate and present the work plan and schedule for the achievement of the objectives foreseen. The presentation of the plan and schedule for approval must be to the Business Advisor of Component II of the regional office of the project in Quetzaltenango, as well as to the SME Manager and/or other persons that the entrepreneur or the Project indicate.
• Holding of coordination and work planning meeting(s), together with the SME Manager and the business advisor of Component II of the Quetzaltenango Regional Office. The consultant must consider in the work methodology the official provisions resulting from the COVID-19 crisis.

b) Field Work Actions

• Evaluate and analyze current processes and production lines, identifying bottlenecks or dead points; evaluate process times and movements, human resources assigned to each area and activity, wastage, etc. The aim is to identify the gaps that affect the effectiveness of the processes and flows.
• Perform a diagnosis and evaluation of the profile of the production plant’s collaborators, highlighting their functions and roles in the manufacturing process. The aim is to analyze their capabilities, performance level and productivity.
• Evaluate the availability of machinery and equipment, its condition and capacity, versus its level of use and idleness. The consultant should verify whether the machinery and equipment are appropriate for the type and quality of leather expected and propose improvements and/or changes to the machinery and equipment.
• Develop a technical assistance and support plan for the implementation of good manufacturing practices in the tannery industry. This should be included in the company’s process plan and with the support of the company’s operational team.
• Train and advise the general management and plant operating team on innovative processes and practices in the leather industry. This training should be theoretical and practical using methodologies appropriate to the level of the company’s human resources, focused on maximizing the use of inputs and more efficient process lines and flows; optimizing the use of machinery, new techniques to improve quality, the use of by-products, incorporation of process controls and records, industrial safety measures, and the use of new technologies.
• Prepare a technical manual on sustainable industrial leather production to support the implementation of actions and good manufacturing and industrial safety practices, which should be presented to the company’s management and the USAID/CEO Project’s Business Advisor for their endorsement. Emphasis should be placed on improving environmental mitigation measures for solid and liquid waste management.
• Submit periodic progress reports and accounts to the SME’s Management and Directors, and to the C2 Business Advisor of the USAID/CEO Project’s Quetzaltenango Regional Office for analysis and approval.
• Present the final report to the SME Management and Directors, and the USAID/CEO C2 Business Advisor for analysis and review.

c) Cabinet Work

• Design of tools and other working instruments.
• Preparation of progress reports by the consultant.
• Presentation of reports to SME Management, C2 Business Advisor in Quetzaltenango, as well as to other component staff that the Component 2 Leader may indicate.
• Make changes to the report as requested by the SME Management and the CEO Project.
• Formally present and deliver the final report. This presentation shall be made by the Consultant to the entrepreneur as well as to the Project’s Management; to the Assistant Manager; and to the management and technical staff using the Project’s own administrative rules.

LEVEL OF EFFORT AND EXECUTION PERIOD

The time for the execution of this consultancy will be within a period of 5 months, during which time the level of effort will be 60 effective working days as of USAID’s approval. Due to the nature of the consultancy, it shall be carried out at the company’s headquarters and production plant located at 6ª. calle 37-41, zona 8 in the City of Quetzaltenango, Department of Quetzaltenango, Guatemala. The consultant shall contemplate for the performance of its functions the protocols and official measures of protection by COVID-19.

Required Qualifications:

Academic Background

Due to the nature of the services, knowledge of industrial engineer or related career specialized in leather and fur industries is required. Given the scope and specialty required, it is recommended that the call for proposals be made at international level, in order to find experts in the field who have experience in a more developed leather industry than that of Guatemala. The consultancy needs to be executed in Spanish. 

Professional Experience

In consulting and implementation of process improvements in tanneries.

In the field of innovative processes for the leather industrial sector.

In the design of production lines and plant operations.

In training and coaching of operational and administrative personnel in production plants.

The consultant must be fluent in Spanish

Additional Skills

Mastery of tools to support the management of leather production processes.

Mastery of Kpis and performance evaluation indicators.

Required Competencies/Skills

Availability to travel to the Department of Quetzaltenango, Guatemala.

Ability to analyze and synthesize information to carry out the required diagnoses.

Willingness to carry out technical work in the field to gather information.

Ability to analyze, integrate and draft technical reports.

Focused on results.

Effective time management.

Office and social networking skills.

Company Overview:

About Palladium – Palladium is a global leader in the design, development and delivery of Positive Impact – the intentional creation of enduring social and economic value. We work with governments, businesses, and investors to solve the world’s most pressing challenges. With a team of more than 3,000 employees operating in 90 plus countries and a global network of over 35,000 experts, we help improve economies, societies and, most importantly, people’s lives.

Equity, Diversity & Inclusion – Palladium is committed to embedding equity, diversity, and inclusion into everything we do. We welcome applications from all sections of society and actively encourage diversity to drive innovation, creativity, success and good practice. We positively welcome and seek to ensure we achieve diversity in our workforce; and that all job applicants and employees receive equal and fair treatment regardless of their background or personal characteristics. These include: (but are not limited to) socio-economic background, age, race, gender identity and expression, religion, ethnicity, sexual orientation, disability, nationality, veteran, marital or Indigenous status.

Should you require any adjustments or accommodations to be made due to a disability or you are a neurodivergent individual or for any other circumstance, please email our team at [email protected] and we will be in touch to discuss.

Safeguarding – We define Safeguarding as “the preventative action taken by Palladium to protect our people, clients and the communities we work with from harm”. We are committed to ensuring that all children and adults who come into contact with Palladium are treated with respect and are free from abuse. All successful candidates will be subject to an enhanced selection process including safeguarding-focused interviews and a rigorous due diligence process.