The study to improve productivity for the cottage industry in the North Eastern part of Thailand, aimed at 4 major industrial sectors such as handloom weaving, bamboo wicker, gems cutting and mat, weaving. There exists a very high potential for productivity improvement through the use of work place design, process improvement and the use of machinery. The most important problems in the development of cottage industries in this area are the same in all selected industries. They are marketing and financial problems. To promote and help them commercialize their products would improve productivity indirectly.