THE IFPTI PROGRAMME IN SUPPORT OF SA’S 4IR RESPONSE - SAIMC WORKSHOP Presented by: Dirk van Dyk 20 SEPT 2018

RECENT ACCENTURE REPORT: “CREATING SA’S FUTURE WORKFORCE” The disruptive technological environment created by the 4th Industrial Revolution places 1 in 3 jobs in SA at risk by 2025. “5,7 MILLION JOBS” GLOBALLY THE MANUFACTURING SECTOR SKILLS GAP IS GROWING ! MORE THAN 10 MILLION JOBS UNFILLED?

THE INTSIMBI FUTURE PRODUCTION TECHNOLOGIES INITIATIVE (IFPTI) A partnership between Government (the dti) and Industry (PtSA) in response to the 4th Industrial Revolution in Manufacturing. Focusing on capacity building through: Systemic Skills Supply Solutions Systemic Enterprise development Solutions New Innovation in Funding partnership development NEW TECHNOLOGIES IMPLEMENTATION PLATFORM (PTY) LTD - (NTIP) is the implementation agency for the programme.

Skills System Innovation ED System Innovation Government Industry the dti PtSA PARTNERSHIP IFPTI PROGRAMME Skills System Innovation ED System Innovation Funding System Innovation Manufacturing Sector Intervention INTSIMBI NPC GOVERNANCE BOARD NTIP (PTY) LTD IMPLEMENTION 100% INDUSTRY OWNERSHIP

HISTORY OF THE PARTNERSHIP Started in 2005 as the NATIONAL TOOLING INITIATIVE PROGRAMME (NTI) Structure formation and capacity building 2005 to 2009 Pilot in TDM sector 2010 to 2018 Widespread recognition in 2017 Expansion to broader manufacturing sector impact areas 2018 onwards

SYSTEM DESIGN & SOLUTION APPROACH Industry Driven Advanced Manufacturing (4IR) Skills & ED Supply System AUTO AERO MINING AGRO … Industry/Government Partnership Advanced Manufacturing Cross-cutting Requirement FMCG, DEFENSE, … OTHER SECTORS Solution Pilot Future Production Technologies NTI Programme Tooling systems Machining Automation, Robotics Industrial Maintenance Additive Manufacturing Composites Plastics Processing Metals Processing Glass Processing Paper & Wood Processing Tooling Machining Pilot

ENTERPRISE DEVELOPMENT Factories of the Future OPPORTUNITY FUTURE FACTORIES Big Data Management AI/VR/Simulation Data Analysis/QA Applications Software Computers Networks Monitoring & Control Sensors Automation & Robotics Tooling Systems Machinery INNOVATION CAPACITY Product Development Industrialisation Project Implementation Financial Engineering SKILLS DEVELOPMENT ENTERPRISE DEVELOPMENT SUPPORT SERVICES CAPACITY Installation Maintenance Financial & Admin Services Logistics Services Slide 7

SOLUTION APPROACH Talent Identification/sourcing system Skills Development System Talent & Skills Deployment Creates Innovation Capacity in Sector

NEW INNOVATION IN SKILLS SYSTEM Advancxed Skills Middle Level Skills Entry Level Skills Modular competency components, Stackable, Flexible, Multiple entry and exit points Foundation & Bridging Skills

Skills Develpment Solution Design Principles Fundamentals Applied and Trade Theory Online Examinations Knowledge Component – 25% Practical Training – 35% Machining Techniques Advanced Machining Techniques Subject Matter Projects Work Pieces (Assessment) Formal Training On-the-Job Training – 40% Workplace Experience One-on-Ones Personal Development Plans Life and Employability Skills Student Support and Life Skills

Toolmaker and Part Qualifications Toolmaker Qualification Qualification NQF Level Occupational Certificate: Toolmaker NQF Level 5 Part qualifications under the Occupational Certificate: Toolmaker Part Qualification NQF Level Lathe Operator 3 Milling Machine Operator Surface Grinding Operator 2 CNC Milling Machinist 4 CNC Turning Machinist EDM (electro discharge machining) Wire Operator 5 EDM (electro discharge machining) Plunge Operator Manufacturing Workshop Assistant Tooling Machinist Tooling CAD Operator

17 Modules that can be used for specific competency requirements of the manufacturing industry - NIMS (National Institute for Metalworking Skills –USA) Expert in Tooling – International (EU Credit System)

Master Toolmaker Qualifications NQF Level Occupational Certificate: Master Toolmaker (Plastic or Rubber or Glass Master Toolmaker) NQF Level 6 Occupational Certificate: Master Toolmaker (Metal Forming Die Master Toolmaker) Occupational Certificate: Master Toolmaker (Casting and Die-Casting Mouldmaker Master Toolmaker) Occupational Certificate: Master Toolmaker (Purpose Built Machine Master Toolmaker) Occupational Certificate: Master Toolmaker (Specialised Tooling Machinist Master Toolmaker) Masters in Tooling Engineering – NQF Level 9

International Partners Partnership Implementation Model: Regional Clusters 000 Colleges UnivTech AC Univ Centres of Excellence Industry Assessment Centres International Partners NTIP – Development, Facilitation, Interface Management, Quality Assurance Migration into Existing Business Transformation of Existing Business New Venture Creation

Skills & Competency Development Formal New Cluster-based Skills Development System Regional Clusters Current 000 TVETs Colleges UnivTech AC Univ Centres of Excellence Industry Assessment Centres International Partners NTIP Development, Facilitation, Interface Management, Quality Assurance Modular Competency Components Stackable into Part & Full Qualifications Industry 4.0 Requirement (2025) 55% 35% 10% International Standards Based Future

7 FACILITIES FULLY OPERATIONAL Advanced Training Facilities Advanced Tooling Sector Practical Training Training Centres of Excellence 7 FACILITIES FULLY OPERATIONAL 1

NATIONAL FOOTPRINT

Student Statistics and Population Distribution Skills Development Age Distribution Population Distribution 2198 learners enrolled between 2010 and 2017 98% from previously disadvantaged communities >85% African 32% Female 2% 1% 8% 89%

Student Age and Gender Distribution Age Distribution Gender Distribution 30% 57% 9% 3% 32% 68%

ENTERPRISE DEVELOPMENT SUPPORT SYSTEM Supplier Development –TDM sector example Enterprise Development Competencies 12 South African Focus Areas . Re-Industrialized business Market Product Process Resources Journey towards …international competitiveness Market Intelligence Service Integration Collaboration System Environment Market Appearance Tool Innovation Process Structure Technology Capability Strategy Tool Focus Shop floor Management Employee Qualification Re-Benchmarking Re-benchmarking a company to measure growth and identify continuous improvement measures Intervention Projects A comprehensive consulting project is initiated to derive measures directing towards international competitiveness Benchmarking EXISTING BUSINESS A comprehensive benchmarking exercise evaluated company performance against local and international peers.

Transformation of Existing Business ENTERPRISE DEVELOPMENT SYSTEM Development of Young Industrialists Journey towards …inclusive business ownership . Source prospective youth/future Industrialists Present suitable business opportunities ZZ Ownership migration Facilitate black ownership buy-in/buy-out and skills transfer support YY Exit/Entry & Funding process support Exit/Entry/Funding process support XX Business under improvement (Intervention projects) A candidate buisiness for takeover/buy-in that has been assisted in growing competitiveness and for which good p[erformance datat is available Participating Business

New Venture Creation LEARNING FACTORIES AND BUSINESS INCUBATORS Development of New Generation - Young Industrialists Journey towards …inclusive business ownership . Source prospective future young Industrialists from TDM Skills system pipeline Source suitable mentor partners 100% Ownership migration New Comer Facilitate ownership buy-in/buy-out of mentors who exits after pre-agreed term. Incubate new enterprises Candidates and mentors set up NEW business with facilitated funding operating completely independently Riversand Learning Factory Internship A comprehensive Internship under experienced mentors in a fully equipped operational business (no ownership) Duration 2-3 years

NTIP - USA Partnership Scope/Access to Institutions NIMS (National Institute of Metalworking Skills) Competency based modular credentialing system & international accreditation SKILLS DEVELOPMENT HAAS CNC Technical Education center development CNC Trainer Development Equipment supply and maintenance Slide 23

ENTERPRISE DEVELOPMENT NTIP - Germany Partnership Scope/Access to Institutions WBA Modular credentialing & accreditation for: Master Artisan Expert-in-Tooling Master-in-Tooling Engineering SKILLS DEVELOPMENT Benchmarking Internal database Intervention Projects & Consultation Assistance Knowledge Transfer Research & Development Support WBA ENTERPRISE DEVELOPMENT Slide 24

Industry and Supplier Participation and Contribution Skills Development Industry > R250million Suppliers > R15 million Government – > R750 million OJT – > 550 companies participating Students worked more than 2 million hours on machines >85% permanent job placement rate of Artisan Students to date

Framework for Skills Pipeline (Tooling and Machining) 4IR Critical Production Technologies Requirements Profile Available Upgraded Qualifications Average Duration / Time to Completion Estimated Industry Needs per Annum NQF 9 NQF 7 Tooling CNC Machining Industrial Automation / Maintenance Additive Manufacturing Metal Processing Plastics Processing Composites Processing Glass Processing Wood and Paper Processing Masters Degree in Tooling Engineering Expert in Tooling 4. ENGINEERS 2-3 Years 10 - 15 Master Toolmaker (Plastics, Metal, Casting, Machine Building or Machining) 3. TECHNICIANS AND MASTER ARTISANS NQF 6 2-3 Years 150 - 200 Toolmaker Tooling Machinist EDM Wire Operator EDM Spark Operator CNC Milling Machinist CNC Turning Specialist CAD Operator Lathe Operator Milling Machine Operator Surface Grinder Operator Manufacturing Workshop Assistant (Common Foundational Skills) NQF 5 NQF 4 NQF 3 NQF 2 3.5-4 Years 3-3.5 Years 2-3 Years 2 Years 8 – 12 Months 200 - 250 400 - 500 150 - 200 1200 - 1500 800 - 1000 500 - 600 1000 – 1200 300 – 400 8000 - 10000 2. ARTISANS 1. ENTRY LEVEL SKILLED WORKERS

Development of new National Partnership Funding Model for Technical Skills Development for Advanced Manufacturing. DEV & CAP THEORY PRACT OJT Development & Capacity building: INDUSTRY GOVERNMENT National,Provincial,Municipal Donors Development funding SETA reallocation Training pipeline Dev Funding Bursaries SETA reallocation BBBEE Training Pipeline

RECENT INDUSTRY DEVELOPMENTS In November 2017, big business delivered a “white paper” to government outlining the “MAP TO A MILLION” plan to create a million manufacturing jobs within the next decade. Two specific elements of this plan has relevance: “We recommend that the SETA system be abolished, but that the skills levy be retained for general revenue purposes, with deductions to be claimed by companies from SARS for training actually done. The accumulated surplus and reserves can be applied to reduce education and training costs through existing channels.” “We recommend that the highly successful NTIP model be scaled up to accelerate the provision of skilled labour across all levels of the manufacturing sector.”

INDUSTRY FUNDING SUPPORT FOR IFPTI PROGRAMME OUTCOMES TRUST FUND Board of Trustees Beneficiaries: Trainees, Entrepeneurs, GOVERNANCE Board Industry body representation CREATES FUNDING MANDATES FOR TRUST FUNDS VIA INDUSTRY BODY MANDATES INDUSTRY OR CPY BASED FUNDS NPC CPY STRUCTURE

INDUSTRY FUNDING SUPPORT FOR IFPTI PROGRAMME OUTCOMES CONCEPT PHASE1 PtSA SACEEC (*) SAEEC MAN. CIRCLE SAIMC Industry bodies create Governance Board capacity in an new NPC structure for managing funding inputs into IFPTI programme outcomes IFPTI PROGRAMME PHASE 2 AUTO MINING PLASTICS COMPOSITES OTHER *SACEEC TO INITIALLY REPRESENT INTERESTS OF NUMBER OF BODIES (SAIW, SASSDA, AFSA, SAEFA,SAIF ETC.)

Based on the above it should be clear that this programme has succeeded in creating highly innovative industry driven solutions that are sustainable and will position SA’s Advanced Manufacturing sector for the 4th Industrial revolution busy transforming the global MANUFACTURING landscape. We thank you for your interest.