Presentation to the ECAF An overview of ASCCI and its skills development and black supplier development programmes 15 June 2017
What is ASCCI?
Based on a recommendation by industry to Minster Davies, ASCCI was established as a collaborative initiative to fulfil two primary roles Collaboration Set the strategic direction for Facilitate, coordinate and specific practically oriented oversee supplier competitiveness improvement competitiveness improvement projects activities 3
ASCCI’s business plan has the primary objectives of advancing supplier competitiveness and increasing local content Advance supplier competitiveness Supplier Strategic ------- Transformation Localisation capability insights Increase local content ------- Support employment creation OBJECTIVE OBJECTIVE OBJECTIVE ------- Achieve comparable Increase levels of Inform longer-term levels of supplier localisation (as the value strategic initiatives Progress transformation productivity to leading of vehicle sales ex-factor focused on building cost countries (as less all imported content) competitiveness and measured in Rand of from base condition of increasing localisation MVA per Rand of 41% employee cost) PROGRAMMES PROGRAMMES PROGRAMMES Value-chain Raw material Market and regulatory competitiveness beneficiation review upgrading interventions ------- ------- ------- Tier 1 and 2 localisation Industry trends and Tier 2 / 3 insights ------- competitiveness ------- Link tier 1 and 2 suppliers upgrading with localisation Regional alignment ------- opportunities Skills development 4
Some of our recent activities have focused on supporting competitiveness development of local suppliers…. HELPING SUPPLIERS IMPROVE BLACK SUPPLIER SKILLS THEIR COMPETITIVENESS DEVELOPMENT DEVELOPMENT Phase 2 of our World Class We are excited to be launching Following on from research Manufacturing programme has ASCCI’s black supplier conducted last year, ASCCI is just wrapped up with some very development programme. working to establish a nationally positive results amongst the 23 aligned programme to develop firms ASCCI supported. The programme will give OEMs operator and supervisor skills. and suppliers the opportunity to Phase 3 of the programme has deploy ED and SD spend towards Together with industry, we have recently kicked off with a further supporting the development of mapped the skills that are 40 suppliers. black owned suppliers. considered most important to develop. The next step is to identify service providers to deliver the content. * * 5
… and endeavouring to advance the industry’s localisation objectives LOCALISING POLYPROPYLENE POLYMER LOCALISATION PIPELINE (PP) COMOUND TESTING TOOL We are working with a selection Local polymer testing capabilities ASCCI is developing a tool to of local compounders with the do not fully meet the automotive assess the viability of potential view to localising PP compound. industry’s needs. localisation opportunities. While compounding capability While small local testing volumes The purpose of the tool is to exists locally, accessing the right are a barrier to establishing rapidly assess localisation compounding technology to capability for the full suite of opportunities to identify early on support the automotive polymer tests locally, we believe which opportunities are less industry’s needs is the primary there is opportunity to better likely to be viable, and which are barrier at this point in time. align testing capabilities with worth deploying funding and industry’s needs. resources to pursuing. We are currently working with compounders, Tier 1 suppliers, We will be hosting regional We are engaging industry workshops (PE on 5 th July) to and OEMs to understand how stakeholders as we look to this blockage can be best align the industry and local develop a robust and practical overcome. testing facilities. tool for the industry. 6
We are particularly proud of the results achieved by firms participating in the second phase of ASCCI’s WCM programme YENZA MANUFACTURING De Jager Plastics & Extruders cc 7
How is ASCCI supporting the development of black owned suppliers?
ASCCI’s black supplier development programme plans for the development of 15 suppliers over the 3-year business plan Black supplier development programme Supplier sponsored OEMs (VWSA and TSAM firms confirmed) (Shatterprufe The tier 2/3 confirmed) competitiveness upgrading activities will be delivered in the form of a supplier transformation ??? programme focused on the development of black-owned suppliers Key points • 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) 9
Each black owned firm will benefit from 18 months of support to bolster competitiveness on the shop floor Month 1 Months 2 and 3 Months 4 to 17 Month 18 Supplier assessment and Project Supplier selection Programme delivery programme development conclusion Activity Activity Activity Activity • • Benchmarking assessment do • Deliver supplier development • High level Second assessment of determine operational programme; benchmarking • Supplier to participate in potential suppliers capabilities of selected assessment (linked to participate in suppliers; knowledge sharing and to SAABC • Based on benchmark programme. networking activities of the participation); • Considerations assessment, develop SAABC; Final presentation • Monthly monitoring of include: interest in programme to address areas by supplier to ASCCI participating in of weakness (programme programme progress; and customer(s), • Quarterly monitoring and programme, development to include including status medium and long defining KPIs and targets in tracking of KPIs; against targets set; • Quarterly progress feedback • term business collaboration with customer Develop case study. objectives, sponsor). to customer(s) and ASCCI. feedback from customers. Outcomes Outcomes Outcomes Outcomes • Appointment of suitable • • Benchmarking assessment • Selection of Final supplier service provider(s) to deliver supplier(s) that will presented to supplier; presentation; • High level project plan, KPIs programme at firm; • most likely reflect Case study • Monthly status reports; positive results and targets. developed by • Quarterly status meetings through ASCCI. and reports (including KPI participation in the reporting). programme. 10
The assessment is a unique supplier assessment that provides a comprehensive view of the operational capabilities of suppliers Firm profile Competitiveness assessment The capabilities and maturity of the supplier will inform the depth of benchmarking assessment. Competitiveness rating based on Data based analysis and on- For an operational benchmark comparisons site assessment immature Cost Quality Flexibility supplier with limited capabilities, the assessment will Reliability HR be simplified in comparison to the more detailed assessment for Outcome a mature Identification of opportunities and priorities for competitiveness supplier. improvement 11
The assessment outcomes will be used to define a unique competitiveness improvement programme for the black owned supplier Benchmark Competitiveness improvement programme assessment • 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 Best practice General business Mentoring and manufacturing support support business development Mentoring for the business owner / Business management support Support to develop the leadership encompassing general business manufacturing competitiveness team with a focus on providing administration of suppliers strategic guidance and financial management and business development support Support will be provided by a specialist consultant for 5-6 days per month over 13 months 12
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