Frequently Asked Questions

What is the SMART program?

Thanks to funding provided by the Government of Ontario, Canadian Manufacturers & Exporters (CME) has created the SMART Program to help small and medium-sized manufacturers in Ontario improve their manufacturing productivity to enable them to compete more effectively in the global economy.

What projects qualify for the SMART program?

We're looking for manufacturing productivity improvement projects that include lean manufacturing, quality improvement, energy efficiency, IT best practices, and environmental impact reduction. Funds being asked for any capital equipment must be going into the facility that has made the application. We'll support the best projects proposed to us, only available up to 50% of project costs or $50,000, whichever is less.

Where can I learn more about Canadian Manufacturers and Exporters (CME)?

Canadian Manufacturers & Exporters (CME) is Canada’s leading trade and industry association and the voice of manufacturing and global business in Canada. The association directly represents more than 10,000 leading companies nationwide. More than 85% of CME’s members are small and medium-sized enterprises. Also, check online at About CME.

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What sort of manufacturing companies are eligible for SMART Project Funding?

Any company that makes or adds value to a physical product is a manufacturer. The SMART Program will employ the following definition of a manufacturer: “Any natural or legal person who makes a physical good with tools and/or machines by effecting chemical, mechanical, or physical transformation of materials, substances, or components, or by simulating natural processes, usually repeatedly and on a large scale with a division of labor. Manufactured items often are, or are made out to be, different from other similar goods in one or more aspects, and are sold commonly under a particular brand name.“ This includes, for example, food and beverage manufacturers, printing, pulp and paper processing, mineral processing. Companies predominantly engaged in trading, exporting or distribution are not eligible.

To be eligible for the SMART program, your company must have manufacturing operations in Ontario, must employ between 10 and 500 people at the facility being applied for and must also have at least two years operating history. For more information on Companies eligible for SMART Funding, check online for Eligible Companies

How do I apply for SMART Project Funding?

In general the steps are as follows:

You have to have a well-defined manufacturing productivity improvement project ready to go. If you need assistance finding the right kind of project to undertake, consider the SMART Assessment as a way of getting professional advice on the most promising areas of improvement in your plant. If you have a good idea of where improvements are needed, consider using SMART Project Funding to help fund outside experts to develop a detailed project plan (however, note that only one project at a facility can be funded, so funding of a project planning application prevents the SMART Program from funding the subsequent implementation of that project).
Once your plan is defined, develop a proposal that describes a clear, yet simple plan for the implementation of that project, along with a clear statement of before and after productivity measurements that will be improved when the project is complete. Download a Microsoft Word version of the application form to help you organize your proposal.
Find and meet with a representative of one of the Reference Organizations listed online, It is imperative that they provide a Reference Check for your company and your project. You will need to select this person as your reference in the online application form.
Register for the Online Application System and enter the information from your proposal into the system. Only applications submitted through the SMART Program’s online application system will be considered for funding. If you run into trouble technical help is available at(613) 751-4456 or via email VGOsupport@eperformance.biz. When your online application is complete, you will be able to “click” to formally submit it to the SMART Program.
Within 45 calendar days after you submit your application, the SMART Program will notify you if your proposal has been selected for funding.

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What if my project is not selected?

The SMART Program seeks to fund the best projects submitted. Projects not selected are not bad – just not as good as others under consideration. If your project is not selected for funding, we will try to offer constructive feedback about how applications can be improved, and we encourage you to make improvements and resubmit.

How long do we have to execute our project once it is funded?

Funded projects should start within 2 months of being notified that you will receive funding (if they haven’t already started), and should finish within 6 months of notification.

What about multiple projects?

At this time, the SMART Program cannot fund multiple projects at a given facility. However, if your company has multiple facilities, each one can propose its own project.
If you are planning multiple manufacturing productivity improvement initiatives at a given facility, it may be possible to combine them into one proposal, provided that they are all being managed as a single project, the resulting productivity improvements can be measured together, and the timing of the implementation is roughly the same for all the initiatives.

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Can SMART Project Funding be used to improve our marketing activities?

Marketing activities, new market development, and in general, new product development, are not eligible projects or eligible activities for SMART Project Funding.

Can SMART Project Funding be used for training?

Yes, provided the training is connected with your productivity improvement project. This training would also be eligible for funding from the Yves Landry Foundation – you should consult their website for details on the funding that is available.

Does the SMART Program only fund “lean” projects?

“Lean Manufacturing” is just one kind of manufacturing productivity improvement technique. The SMART Program has no preference regarding the kinds of techniques that you can use – the key is using a well-established technique that allows you to project the sorts of productivity improvements you can achieve.

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Can SMART Project Funding be used for building improvements or additions?

Building improvements or additions would not be eligible expenditures on their own, unless they were integral and essential to a project that would allow your company to achieve measurable improvements in manufacturing productivity.

Can SMART Project Funding be used to pay for a move to a new facility?

While the benefits of moving to new facilities are often clear, the costs of doing so would not be eligible.

What is the difference between the SMART program and the Energy Benchmark Study?

The Energy Benchmark Study provides energy benchmarks for a company and compare the benchmarks with other companies in the same industrial sector. This enables companies to understand their current energy use and also identify opportunity areas to reduce the company’s energy use and costs. The benchmark study includes all industrial facilities in Ontario from small to large, and covering all industrial sectors.

The data obtained by the Energy Benchmark Study is also used to define the energy savings potential in Ontario for industry. The data will provide relevant and current information to enable the CME, government and utilities to develop new initiatives and programs aligned with the needs of industry in Ontario. The Energy Benchmark Study is funded by NRCan, Government of Ontario, Hydro One, Enbridge Gas, Union Gas, OPA, and Fednor.

The SMART program is funded by the Government of Ontario to help small and medium-sized manufacturers in Ontario improve their productivity so they can compete more effectively in the global economy. The energy efficiency portion of the program will assist a manufacturing company identify an energy project and provide funding to implement the associated project. The program has immediate benefits to improving energy efficiency at a manufacturing facility.

Can SMART Project Funding be used for projects already underway?

Projects must start within 2 months from your notification of selection and should be completed within 6 months of that notification. CME intends to notify applicants whether their projects have been selected within 45 calendar days of application, so applications shouldn't be submitted too far in advance of the planned start of a project.

Effective January 16, 2009, applications will only be accepted for projects that have started no more than 2 months prior to the submission date as long as less than 50% of the total project expenses have been incurred (eg. applications submitted on January 16, 2009 must not have projects or expenses that have started earlier than November 16, 2008).

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What should I include in my SMART project?

Be sure to include all the tasks and expenditures that are needed to allow your firm to achieve the productivity improvements that you project for the project. For example, if you are proposing the purchase of a new piece of production equipment, you should also include installation costs, the integration of the equipment into your existing production lines, training of operators and other affected personnel, as well as any other modifications to your facility or operations that will be needed before you will be able to experience the benefits that your forecasting for the project.

How do I sign up for a SMART Assessment?

Effective February 2, 2009, SMART Diagnostics for manufacturing productivity and energy efficiency will be available. One of these will need to be completed before you would be eligible for SMART Assessments in the corresponding area.

Up to 250 SMART Assessments will be available to Ontario manufacturers. The total cost of each SMART Assessment is up to $7,000 depending on size of facility and work involved. Your company only pays $1,000 (or 15% of the Assessment cost, whichever is less), plus any direct expenses incurred by the service provider (for example, for travel to and accommodation at your location) – the SMART Program pays the balance

Who can I use to perform a SMART Assessment?

CME is accepting applications from Consultants and other Service Providers who want to provide SMART Assessments. We have posted an initial list of qualified Service Providers online, and will be updating this list regularly, and you can ask one or more of these organizations to put together a brief proposal in your area of interest, which you can submit to CME as part of your Assessment Application. If you have a relationship with a Service Provider that you would like to perform an Assessment for you, ask them to apply to become a Qualified Service Provider

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Do I have to complete a SMART Assessment before I can apply for SMART Project Funding?

No. If you need to use a SMART Assessment to better define the project you want to submit for funding, please be sure to apply for that Assessment as soon as possible, so that you will have time to apply for SMART Project Funding as early as possible next year. We will advise everyone who has registered to the SMART website when the SMART Assessment application forms are available.

Can I apply for both a SMART Assessment and SMART Project Funding?

Yes, and potentially you could be selected for both.

I am a Consultant, and I want to perform SMART Assessments. What do I do?

CME is accepting applications from Consultants and other Service Providers who want to provide SMART Assessments. You will need to provide some background about your experience and qualifications, confirm that you can perform the Assessment without vendor bias and provide reference information so that CME can verify your reputation in the areas of expertise that you claim. Based on our review of this information we will identify qualified Service Providers on our web site that can be selected by manufacturers to perform Assessments in an area of their choosing.

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I am a Consultant with a client ready to submit an application.

If your client is ready to submit an application, they must first create an account. See here for more info. CME will not accept applications from a consultant on behalf of a client. Each applicant must have a unique user ID.

I sell goods or services to manufacturers. Can my customers use SMART Project Funding to help pay for my products?

If using your product can generate predictable manufacturing productivity improvements, your customers should be able to create a project around its acquisition and installation, and you should encourage them to do so. The SMART Program does not endorse any products or services.

My product improves the manufacturing productivity of the companies who use it. Can I apply for SMART Project Funding? Can I get my product listed somehow as qualified for the SMART Program?

Only your customers would be able to apply for project funding. The SMART Program does not endorse any products or services. Also, SMART will not contact manufacturers about your product.

I sell products to manufacturers, and I also provide consulting services to them in my area of expertise. Can I become a Qualified Service Provider for SMART Assessment?

SMART Assessments must be performed without vendor bias. If your organization has a financial interest in the sale of a particular vendor’s products (including your own) it would not qualify.

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Who are the Reviewers?

CME will use a fair and impartial process, using independent reviews by outside experts, to ensure that the best projects are selected for funding. All information is kept confidential. The identity of expert reviewers is also confidential to prevent any solicitation of influence from applicants. For more information on the selection process, check online for Information About the Selection Process.

Why do we need a reference from a Reference Organization?

CME has recruited a network of Reference Organizations that help CME check the information each applicant provides. For more information on Reference Groups, check online for Reference Organizations

How will money be distributed and who issues the payment?

Once your project has been selected for funding and you have executed a contract with CME, you will receive the award amount in three installments from CME, as follows:

Initial Installment = 30% of award amount,
Second Installment = 50% of award amount.
Final Installment = 20% of award amount.

For more information on details of payments and the requirements for each, check online Project-Payments

What is considered an incurred cost?

An incurred cost is the sum of actual and committed costs, whether invoiced/paid or not. An issued purchase order is considered an incurred cost.

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When is a project complete?

When you tell us that your project is complete, your facility should be able to report benefits from the project almost immediately. If other things have to happen before you can realize those benefits, then you have missed some important tasks that should have been included in your project description (tasks and expenditures). We realize that it may take time for some of the benefits you project to be realized – for example as you undertake trial production runs on a new line. SMART will give you up to 6 months to report your actual benefits.

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