Presentation to the ECAF An overview of ASCCI and its skills - - PowerPoint PPT Presentation

Presentation to the ECAF

15 June 2017 An overview of ASCCI and its skills development and black supplier development programmes

What is ASCCI?

Based on a recommendation by industry to Minster Davies, ASCCI was established as a collaborative initiative to fulfil two primary roles

3

Facilitate, coordinate and

• versee supplier

competitiveness improvement activities Set the strategic direction for specific practically oriented competitiveness improvement projects Collaboration

ASCCI’s business plan has the primary objectives of advancing supplier competitiveness and increasing local content

4 Supplier capability Localisation Strategic insights Transformation Advance supplier competitiveness

• Increase local content
• Support employment

creation

• Progress transformation

OBJECTIVE Achieve comparable levels of supplier productivity to leading cost countries (as measured in Rand of MVA per Rand of employee cost) PROGRAMMES Value-chain competitiveness upgrading interventions

• Tier 2 / 3

competitiveness upgrading

• Skills development

OBJECTIVE Increase levels of localisation (as the value

• f vehicle sales ex-factor

less all imported content) from base condition of 41% PROGRAMMES Raw material beneficiation

• Tier 1 and 2 localisation
• Link tier 1 and 2 suppliers

with localisation

• pportunities

OBJECTIVE Inform longer-term strategic initiatives focused on building competitiveness and increasing localisation PROGRAMMES Market and regulatory review

• Industry trends and

insights

• Regional alignment

Some of our recent activities have focused on supporting competitiveness development of local suppliers….

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HELPING SUPPLIERS IMPROVE THEIR COMPETITIVENESS BLACK SUPPLIER DEVELOPMENT SKILLS DEVELOPMENT Phase 2 of our World Class Manufacturing programme has just wrapped up with some very positive results amongst the 23 firms ASCCI supported. Phase 3 of the programme has recently kicked off with a further 40 suppliers. We are excited to be launching ASCCI’s black supplier development programme. The programme will give OEMs and suppliers the opportunity to deploy ED and SD spend towards supporting the development of black owned suppliers. Following on from research conducted last year, ASCCI is working to establish a nationally aligned programme to develop

• perator and supervisor skills.

Together with industry, we have mapped the skills that are considered most important to develop. The next step is to identify service providers to deliver the content.

* *

… and endeavouring to advance the industry’s localisation objectives

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LOCALISING POLYPROPYLENE (PP) COMOUND POLYMER TESTING LOCALISATION PIPELINE TOOL We are working with a selection

• f local compounders with the

view to localising PP compound. While compounding capability exists locally, accessing the right compounding technology to support the automotive industry’s needs is the primary barrier at this point in time. We are currently working with compounders, Tier 1 suppliers, and OEMs to understand how this blockage can be best

• vercome.

Local polymer testing capabilities do not fully meet the automotive industry’s needs. While small local testing volumes are a barrier to establishing capability for the full suite of polymer tests locally, we believe there is opportunity to better align testing capabilities with industry’s needs. We will be hosting regional workshops (PE on 5th July) to align the industry and local testing facilities. ASCCI is developing a tool to assess the viability of potential localisation opportunities. The purpose of the tool is to rapidly assess localisation

• pportunities to identify early on

which opportunities are less likely to be viable, and which are worth deploying funding and resources to pursuing. We are engaging industry stakeholders as we look to develop a robust and practical tool for the industry.

We are particularly proud of the results achieved by firms participating in the second phase of ASCCI’s WCM programme

7 De Jager Plastics & Extruders cc YENZA MANUFACTURING

How is ASCCI supporting the development of black owned suppliers?

ASCCI’s black supplier development programme plans for the development

• f 15 suppliers over the 3-year business plan

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Black supplier development programme

OEMs (VWSA and TSAM confirmed) The tier 2/3 competitiveness upgrading activities will be delivered in the form of a supplier transformation programme focused

• n the development of

black-owned suppliers

• How will black owned suppliers will be selected for the supplier transformation programme? ASCCI will engage with the

sponsor firm to identify suitable black owned suppliers for participation in the programme. Given the equal funding is being contributed by ASCCI and the sponsor firms, it is necessary for both parties to agree to the suppliers to be included

• How will the programme be funded? Through it’s T2/3 competitiveness upgrading programme, has the capability to fund part of

the cost of the black supplier development programme. In addition to this, the sponsoring supplier and / or OEM will be required to contribute a minimum of R250,000 per supplier. Suppliers themselves will also be required to commit funding – to the tune of R25,000 for participation in the programme.

• What will the funding be used for? The funding will be used to craft a tailored development programme that will be defined and

delivered for each participating black owned supplier (described in upcoming slides)

Key points

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Supplier sponsored firms (Shatterprufe confirmed)

Each black owned firm will benefit from 18 months of support to bolster competitiveness on the shop floor

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Supplier selection Supplier assessment and programme development Programme delivery Project conclusion

Month 1 Months 2 and 3 Months 4 to 17 Month 18

Activity

• High level

assessment of potential suppliers to participate in programme. Considerations include: interest in participating in programme, medium and long term business

• bjectives,

feedback from customers.

Activity

• Benchmarking assessment do

determine operational capabilities of selected suppliers;

• Based on benchmark

assessment, develop programme to address areas

• f weakness (programme

development to include defining KPIs and targets in collaboration with customer sponsor).

Activity

• Deliver supplier development

programme;

• Supplier to participate in

knowledge sharing and networking activities of the SAABC;

• Monthly monitoring of

programme progress;

• Quarterly monitoring and

tracking of KPIs;

• Quarterly progress feedback

to customer(s) and ASCCI.

Activity

• Second

benchmarking assessment (linked to SAABC participation);

• Final presentation

by supplier to ASCCI and customer(s), including status against targets set;

• Develop case study.

Outcomes

• Selection of

supplier(s) that will most likely reflect positive results through participation in the programme.

Outcomes

• Benchmarking assessment

presented to supplier;

• High level project plan, KPIs

and targets.

Outcomes

• Appointment of suitable

service provider(s) to deliver programme at firm;

• Monthly status reports;
• Quarterly status meetings

and reports (including KPI reporting).

Outcomes

• Final supplier

presentation;

• Case study

developed by ASCCI.

The assessment is a unique supplier assessment that provides a comprehensive view of the operational capabilities of suppliers

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Outcome Identification of opportunities and priorities for competitiveness improvement

Competitiveness assessment Firm profile Data based analysis and on- site assessment Competitiveness rating based on

• perational benchmark comparisons

The capabilities and maturity of the supplier will inform the depth of benchmarking assessment. For an immature supplier with limited capabilities, the assessment will be simplified in comparison to the more detailed assessment for a mature supplier.

Cost Quality Flexibility Reliability HR

The assessment outcomes will be used to define a unique competitiveness improvement programme for the black owned supplier

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Benchmark assessment Competitiveness improvement programme

• Key areas of focus and high level activities
• Key performance indicators, including baseline

and targets

• High level timelines and responsibilities
• Project risks

Each firm-level competitiveness improvement programme will have 3 key dimensions

Support will be provided by a specialist consultant for 5-6 days per month over 13 months

Best practice manufacturing support General business support

Support to develop the manufacturing competitiveness

• f suppliers

Mentoring for the business owner / leadership team with a focus on providing strategic guidance and business development support Business management support encompassing general business administration and financial management

Mentoring and business development

Each participating firm will also receive membership to the SAABC which

• ffers a range of networking and support opportunities

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Benchmark assessment

An annual benchmark providing insights into the firm’s performance relative to locally and internationally based automotive suppliers, as well as insights into the customers view of the firm’s performance

Strategic industry sessions

Facilitated industry sessions that give firms an

• verview of the latest global and South African

automotive industry trends, and their relevance to local suppliers

Best practice workshops

A series of best practice workshops hosted at leading local automotive suppliers to provide participants with insights into best practice and the opportunity to engage with leading firms

Networking facilitation

Ad-hoc facilitation of introductions to other firms that may offer insights to support the competitiveness development of participating firms (at request of firms)

The total minimum funding for each project is R525,000; this amount can be increased if sponsoring firms are interested in a larger contribution

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Project funding ASCCI contribution R250,000 Minimum sponsor contribution R250,000 Supplier contribution R25,000 Total project funding R525,000 Any additional sponsor contribution to be deployed towards increasing the scope and / or timelines of the project Project expenses Supplier selection, initial benchmark assessment, and baseline project management Covered as part of ASCCI’s project management budget Additional project management and travel R25,500 SAABC participation for 12 months R27,000 Delivery of project at participating black owned firm R472,500 Total project expenses R525,000

Set at 10% of total project value

What work is ASCCI doing in respect

• f skills development?

Agreement was that ASCCI’s initial focus should be to address gaps related to soft skills and manufacturing basics at the shop floor level

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Skills Gap Matrix

• The lack of practical experience of unemployed individuals was noted as being a particular weakness
• Additionally, weaknesses in the schooling system demand the need for a bridging course to ensure that learners have a base

level of skills before embarking on an industry-defined skills development programme

Key points

• Initial focus area: Skills at a shop

floor level including Operators and Team leader/ Supervisors

‐ Operators (employed and unemployed) – skills development is required to ensure basic skills gaps are addressed ‐ Team leaders/ supervisors – skills development is necessary to ensure skills gaps are addressed and that skills are transferred down to lower levels of the organisation

• Soft skills were considered a

critical skills gap with particular emphasis on;

‐ Basic ethics ‐ Business basics ‐ Leadership skill (this is only applicable at team leader / supervisor level) Initial Focus Area

Source: BMA and AIH study

As a starting point, ASCCI hosted a workshop with industry to define a high level skills development framework for shop floor employees

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Group 1 Industry Representatives:

• 1. Leon Stoltz

(Lumotech)

• 2. Kevin Corris

(Auto Industrial)

• 3. Noah Naidoo

(Supreme Springs) Group 2 Industry Representatives:

• 1. Paul Vermaak

(Smiths)

• 2. Simon Faheem

(Torre)

• 3. Amy Benn (DAC)

Group 3 Industry Representatives:

• 1. Glen Zamisa

(Borbet)

• 2. Chanel Smailes

(Feltex)

• 3. Andrea Moz

(Auto Industrial)

• 4. John White

(DAC)

Working Group for Workshop Activities

EC GP KZN WC KZN GP EC GP GP KZN

The training framework needs to allow for progression of individuals from

• perator level, to more advanced levels

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Operator Level Senior Operator Team Leader Assessment Bridging Course Employed Unemployed Assessment

• The training framework must allow for

progression of individuals from operator level to more advanced levels within the industry.

• The initial focus is on operators through

to team leaders / supervisors.

• The framework will cater for the

development of both individuals currently employed by the industry, and individuals that are unemployed.

• In both cases, individuals will be

assessed before entering the

• programme. Bridging courses should be

provided to support individuals who need upskilling before entering the programme.

• The assessment will include an

assessment of:

• Numeracy and literacy
• Cognitive capabilities
• Dexterity
• Attitude

Key points Framework for training progression Bridging Course

The priority modules scoped focus on developing soft and generic technical skills for operators through to team leaders/supervisors

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Operator Level Senior Operator Team Leader

Work Ethics & Values Code of Conduct IR (Understand) Personal finance* Business Wise (how a business works, impact of cost on business) Working in a team Communication Numeracy Prioritising (Output Level) Scheduling (Output Level) Organising (Output Level) Chane Management (Understand) Conflict Management (Understand) Self Management

*Covered only once in career

Work Ethics & Values Code of Conduct IR (Understand) Personal finance* Business Literacy (how a business works, impact of cost on business) Working in a team Communication Numeracy Prioritising (Multi- Skills Speed) Scheduling (Multi- Skills Speed) Organising (Multi- Skills Speed) Change Management (Understand) Conflict Management (Understand) Self Management

Health, Safety & Environment Financial Basics

(Individual & Business)

Communication & Team-work Time Management Leadership

Work Ethics & Values Code of Conduct IR, including discipline (implement) Health and first aid (Induction) Safety and firefighting (induction) Environment (Induction) Personal finance* Business Financials (how a business works, budgeting, costing, forecasting) Working in a team Structuring a team Numeracy Prioritising Scheduling Organising Change Management (Leading) Conflict Management (Resolving) Self Management

Soft Skills

IR & Code of Conduct

Leading a team Communication Visual Process Management (Leading) Visual Process Management (Doing) PDCA Emotional Intelligence

WCM Manufacturing Techniques

Quality Problem Solving TPM

Technical Skills

TQM KAIZEN Lean 5s 7 Wastes Quality Problem Solving TPM TQM KAIZEN Lean 5s 7 Wastes Quality Problem Solving TPM TQM KAIZEN Lean 5s 7 Wastes Technical drawings + measurements Computer basics (Adv) Manufacturing Techniques (Train) Assembly techniques (Train) Tech drawings & measurements (Multi) Computer basics Tech drawings & measurements (Basic) Manufacturing techniques & terminology Assembly techniques Computer basics

NQF 2-3 NQF 4 NQF 5

Visual Process Management (Participating) Manufacturing techniques & terminology Assembly techniques Setting Health and first aid (Induction) Safety and firefighting (induction) Environment (Induction) Health and first aid (Induction) Safety and firefighting (induction) Environment (Induction)

Other comments for consideration

• Leverage existing qualifications, capabilities, and programmes – much of what is scoped in the

ASCCI skills framework is already being delivered to some degree. The process must look to leverage existing qualifications, capabilities, and programmes as opposed to build from scratch.

• Alignment with qualifications and standards – relevant qualifications and standards are likely to

already be defined by the SETAs for most/all of what the framework proposes. Any training should be aligned with the existing SETA qualifications and standards, and should be certified accordingly.

• Support skills development for employed AND unemployed – the programme should offer the

capability to support skills upgrading of individuals currently employed in the industry (based on firm- level needs) as well as unemployed individuals who that could be introduced to the industry.

• Offer framework for progression – the framework must offer the opportunity for individuals to

progress through different levels of skill / competency.

• Focus on generic industry requirements – the purpose of the training framework is to address

generic industry skills development / competency needs. In addition to this, it is expected that firms will have their own, unique training requirements. These unique training requirements will need to be met by firms themselves, and firms must take responsibility for aligning generic training elements with their own specific requirements.

• Link to shop floor performance – the training framework should have the ability to link training
• utcomes back to shop floor performance. It is expected that this must be done in collaboration with

participating firms.

• Assessments of incoming individuals – all individuals, whether currently employed or

unemployed, should be assessed before entering the programme. Where necessary, a bridging course should be provided.

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In terms of next steps, ASCCI intends to support the establishment of a robust national skills development framework for automotive suppliers, with 4 key areas of required focus

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Qualifications

Having a qualification that encompasses the required content

Training material and Assessments

Having quality and robust training material to meet the skills development

• utcomes at the

correct standards that are verified with assessments

Training provider(s)

Having quality training service providers that have the capability to meet the required skills development standards Work with merSETA and training providers to develop robust content Work with merSETA to ensure qualifications meet industry needs Identify and engage with quality training providers to deliver qualifications

Funding

Having a funding framework that draws from multiple available sources to fund the training

• n a sustainable basis.

Julia Wedgwood

julia.wedgwood@bmanalysts.com 011 465 6911