We recently celebrated our more than 200 PMI graduates for 2011. We awarded certificates, diplomas and degrees in a number of PMI programmes ranging from Operations Development Management to a Bachelor of Science (Honours) in Industrial Technology and Management.

The annual KZN graduation was held at the Clairwood racecourse on 4 November and was attended by the PMI staff, the 2011 graduates and their proud families. John Botha, PMI’s executive director of strategy was our guest speaker and we were honoured to have Professor Nzimande join us as our guest on the evening.

Our 2011 Cum Laude learners are:

• Chris Govindsamy (Nampak) Diploma in Production Management
• Dumiso Mhlope (Nampak) Diploma in Production Management
• Cameron Raman (Toyota) Diploma in Production Management
• Rodney Pillay (Toyota) PMI Certificate in Production Management

Congratulations!

Most South African businesses have identified the value of formalising and executing a strategic skills development strategy. The value seems obvious, the business is investing in the skills of its staff thereby increasing performance and benefiting long-term from the positive consequences of such. The employees are enriched with knowledge and their skills set enhanced, making them more eligible for promotion or better work opportunities. However, one of the most appreciated returns on investing in skills development is the tax deduction businesses are eligible for, as stipulated by taxation legislation (1).

Despite the obvious benefits of a skills development strategy, the full value is only realised when it supports the overall business strategy and has an impact on profitability. Herein lies the challenge. The hours an employee spends in classroom training for Learnerships and other training interventions are unproductive in terms of the day-to-day operational requirements of the business, hereby potentially having negative short-term impact on productivity and profitability. The long-term benefits are often over-shadowed by the short-term cost of working hours.

“Recognition of Prior Learning (RPL) offers employers an opportunity to enhance the strategic value of their skills development investment without the short term impact on productivity through lost working hours,” says Dr Karen Deller, academic executive of PMI.

RPL is an assessment process through which the skills and knowledge that an individual acquires outside of formal educational institutions are formally recognised.

“Many long-serving employees have in-depth and practical experience in the very qualifications or skills the business is training on. This learning is acquired over years of working, perhaps within the current business or perhaps prior to it. Learning can also take place outside the workplace, in family and other informal contexts. Recognition of Prior Learning typically has a shorter classroom-contact period than Learnerships and traditional training, therefore minimising the cost of lost working hours while still earning the tax incentives,” says Dr Deller.

If a business’ strategy is to promote from within, RPL has the added value of making employees eligible for promotion or transfer in a shorter time period. Employees will also earn certificated recognition for their years of service and on-the-job learning. The RPL could also gain them access to higher or further education where previously they did not meet the academic requirements. All these outcomes generally have a positive impact on staff retention and morale.

Understanding the unique value and relevance of all forms of skills development interventions is imperative to the success of any skills development strategy. The Skills Development Act has provided South African businesses with the tools to customise and implement skills development according to their strategic and operational needs while addressing the macro socio-economic needs of our country. “RPL is a very effective tool to quickly quantify the skills profile of a business, qualify for tax rebates and potentially enhance the productivity, morale and retention of staff,” concludes Dr Deller.

(1) Taxation Laws Amendment Acts, No. 8 7 9 of 2007

While the state’s target of 50 000 artisans by 2014/15 might be optimistic meaningful progress towards maximising artisan training has been made this year.

Addressing delegates to a seminar in Johannesburg yesterday, John Botha, executive director for strategy at Production Management Institute (PMI), said: “The artisan training space has moved away from a period of great uncertainty to one of certainty and clarity.

“This has in turn paved the way for the pace of delivery of qualified artisans into the South African economy to increase.”
Botha attributed this important milestone to three key developments:

1. The incorporation of the Sector Education and Training Authorities (SETAs) into the Department of Higher Education and Training (DHET) last year, followed by an overhaul of the SETA landscape and then by key improvements to SETA constitutions and governance structures this year;
2. Stronger collaboration between government, business and labour, as well as communities, arising mainly out of the National Skills Accord (NSA) signed in July this year; and
3. A multi-pronged strategy to make Further Education and Training (FET) colleges function as high quality institutions that produce critical middle-level skills and are integrated with the National Qualifications Framework (NQF); the general and the higher education landscapes; SETAs; employers – both private and public; and unions.

Said Botha: “SETA boards are far more capacitated – they are stronger, have independent chairpersons and better business, government and labour representation. For example, human resource personnel, that in many instances were representing business, have been replaced by higher-level individuals with stronger business minds. Government representation is now at Ministerial and national levels.

“The DHET’s overall strategy is to put in place a single, cross-sectoral artisan training system and in parallel, do away with sector-specific programmes coupled with SETA-issued certificates of competence. The overhaul of the SETA landscape and the SETAs themselves was thus a crucial first step in rolling out this strategy.”

Meanwhile, business, government and labour committed to training 30 000 new artisans with the recent signing of the NSA. Of this figure, 13% is to come from state-owned companies, 31% from government and the majority – 56% – from business.

Commented Botha: “The NSA focuses on tangible issues and commits all parties to specific deliverables around artisan training.”

As part of the NSA, private companies have committed to ramp-up their training-spend to well over the compulsory 1%-of-payroll training levy, a significant proportion of which will be steered towards the FET colleges.

Botha continued: “DHET has highlighted the production of quality, qualified artisans as a key goal of the public FET sector.

“Having identified weaknesses in this sector at systemic and institutional levels, immediate-impact interventions have been launched to turn colleges around. Other tactics are planned to take effect in the medium- and longer-terms.

“FET colleges have everything going for them to take centre stage in providing the theoretical qualification component of artisan – as well as other occupational training – requirements.”

Botha welcomed the shift of FET college management from regional to national government, as well as a set of multi-pronged initiatives that will ultimately see the 50 public FET colleges spread across South Africa:

• Offer full qualifications;
• Align programme offerings with local and regional industry needs;
• Ensure effective articulation with both general and higher education;
• Improve programme quality;
• Increase enrolment of youths and adults;
• Develop and attract qualified, full-time teaching staff; and
• Create positive perceptions about colleges as institutions of choice for vocational post-school learning.

He went on to applaud the introduction of the Artisan Development Technical Task Team (ADTTT) as well as that of the National Artisan Moderating Body (NAMB), a quality assurance body. He said they had a crucial responsibility to create a standardised apprenticeship-based artisan development programme and to ensure that it is centrally coordinated and monitored.

Botha also welcomed establishment of the Ministerial Task Team charged with improving SETA performance.
Added Botha: “It is worth bearing in mind the artisan-technician-engineer ratios set by industry which indicate that for every eight artisans, three will become technicians and one will become an engineer. These ratios are significant for manpower planning at organisational level, but also at the systemic level.”

In wrapping up, Botha said: “At last there is clarity on the fundamental framework that will guide artisan development going forward. Included here is clarity around the ‘very basics’ such as the four possible routes to becoming an artisan.

“Importantly, this all feeds directly into the NGP and its manufacturing enabler, the Industrial Policy Action Plan 2 (IPAP2), as well as the National Skills Development Strategy III (NSDS III) and the Human Resource Development Strategy of South Africa (HRDSA).

“Of course, there is much work to be done by all stakeholders, but it will be interesting to assess the impact that these measures have on boosting our current output of 5 600 qualified artisans every year to the ideal target of 12 500.”

Production Management Institute (PMI), an accredited a private training company in the Adcorp Holdings stable, currently trains about 5% of the national artisan output.

“In 2011, PMI expects to produce in the region of 1 500 qualified artisans,” added Botha.

PMI’s Engineering & Mining Training division offers a 360° solution to the industries within the South African borders and beyond. With decades of experience in the setting up of dedicated engineering and mining training centres, the PMI team of industry specialists and experts offer services ranging from feasibility studies, to consulting, to project management incorporating the setting up of franchise structures and the development of full package models including equipment, staffing and management needs to full outsourced onsite operational management of the delivery models.

A case study that demonstrates the 360 view that PMI has become recognised for is the development of the Joe Morolong training centre in the Northern Cape as commissioned by United Manganese of Kalahari (UMK).

PMI project managed the 106-day conversion of a shopping centre into a world-class mining training centre. Originally developed to offer skills programmes to the largely unemployed local community of Kuruman, Kathu, Mothibistadt and Hotazel, the Joe Morolong training centre will now, 5 years and 1800 qualified learners later, offer learnerships to this community; once again in full partnership with PMI once full accreditation process with Mining Qualifications Authority (MQA) has been finalised.

“This growth in strategy and services with PMI enables UMK to offer the previous learners who have qualified as artisan aids to now re-enter the training system and complete a learnership registered by the MQA in terms of the Skills Development Act. thus enabling them to become qualified miners and artisans, with prospects for further development in the mining and engineering industry, depending on their performance and aspirations,” says Carel van der Merwe, PMI’s Management Executive: Technical Division.

UMK is a non-listed company and a joint venture between the BBBEE company, Majestic Silver Trading 40 (Pty) Ltd and Russian-owned, Renova Manganese Investment Limited.
Issued with a prospecting right in May 2005 and issued with a new mining order right in March 2008, it has been UMK’s strategic intent to invest in the creation of a ready and skilled workforce in the area.  The entrusted PMI with this task and are currently renewing the contract to continue the success achieved to date.

As a member of Adcorp Group Limited, PMI have access to in-house skills that enable a comprehensive solution that takes learners from training to viable employment. The learners who come out of the Joe Morolong training centre are offered assistance with job seeking.

“Our solutions are ever-dynamic and we continuously add to our already comprehensive service offering. Future projects include a strategic partnership with Man-Dirk to develop, nurture and grow a sustainable artisan development network, successfully addressing the national agenda by establishing new, and capacitating existing artisan training centres throughout urban and rural South Africa. We also offer our clients access to an online human capital competency management system called PMI Pathfinder,” concludes Carel van der Merwe.

PMI has been rebranded. New logo, new positioning, new website.

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By strategic intent, PMI is always adding to their already comprehensive basket of services. To this end, PMI has recently acquired Prior Learning Centre, an accredited provider of training and recognition of prior learning services.

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We were all taught to consider all factors carefully before answering an equation. This principle is as true in life and business as it is in math.

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Prior Learning Centre

• Prior Learning Centre was formed in 1999 to assist organisations with training. In 2005 the company’s focus shifted to assessment and RPL.
• Prior Learning Centre has two key focus areas: recognition of prior learning (RPL) and training for skills programmes, qualifications and learnerships.
• Prior Learning Centre offers a full turnkey RPL capability – including the development of the assessment tools, the training of assessors and facilitators, the project management of the entire RPL implementation and the final certification after moderation and verification.
• Prior Learning Centre is a fully accredited provider with SERVICES SETA, INSETA, ETDP SETA, SABPP, WRSETA, FASSET and BANKSETA.
• Prior Learning Centre is accredited with UMALUSI and provisionally registered with the Department of Higher Education and Training as a private FET college.
• Prior Learning Centre is South Africa’s only private, multi-sectored RPL and assessment provider.
• Prior Learning Centre is a rated for BBBEE as a level two contributor, and has a presence in Durban, Cape Town, Port Elizabeth and Johannesburg, though its reach extends throughout South Africa.

Production Management Institute (PMI)

• The Production Management Institute (PMI) of Southern Africa is registered as a private Higher Education Institution by the Department of Higher Education and Training in South Africa.

• PMI’s areas of expertise traverse the entire range of education, training and development requirements, ranging from the initial assessment of learners, bridging programmes, apprenticeships, learnerships (RPL and full) and skills programme from NQF level 1 through 5 as well as a progression into higher education such as certificates, diploma’s and honours level qualifications.

• PMI works in a range of key economic sectors including automotive; manufacturing; logistics, warehousing and distribution; food and beverage; engineering; business process outsourcing; finance and printing and packaging.

• PMI is an accredited education provider that focuses on workplace training, offering qualifications across the National Qualifications Framework (NQF) to company employees at all levels, usually as part of a strategic skills and organisational development programme.

Brief biographies

Prior Learning Centre Academic Director, Dr Karen Deller

Prior Learning Centre Academic Director, Dr Karen Deller, set up the business from a zero base in 1999. Karen has been involved with SAQA since 1992 when she was part of the private sector/government forum established to debate the roles and duties of the South African Qualifications Authority (SAQA). Karen holds a doctorate from the University of Johannesburg, where she completed her thesis on recognition of prior learning in the South Africa context.

Managing Director of PMI, Tim Smeeton

Tim Smeeton has been the Managing Director of PMI for the past six years. During this time the business has grown from a turnover of R7 million (2003) per annum to over R135 million (2010). Under Tim’s leadership PMI today delivers and project manages over 7 000 learnerships, 1 500 Artisans and 1 500 learners in a higher education stream every year. Out of his passion for the disabled, PMI recently launched a Disability Academy which already has 90 adults with intellectual disabilities on learnership programmes. The company was recently awarded two BBBEE Awards at the 2011 Durban Chamber of Commerce annual awards.  Tim Smeeton was recently awarded the Adcorp Chairman CEO Award.

The business case for formally recognising prior learning as a critical first step in staff training and development programmes is as strong as imperatives to promote employment equity in the workplace.

This is according to Tim Smeeton, Chief Executive of the Production Management Institute (PMI), the dedicated training company in the Adcorp Holdings stable, that has purchased Prior Learning Centre, a multi-purpose assessment facility that focuses on Recognition of Prior Learning (RPL).

“Our acquisition of Prior Learning Centre will enhance PMI’s suite of training offerings by bringing the official RPL process ‘in-house’,” says Smeeton.

Dr Karen Deller, Academic Director of Prior Learning Centre, says: “RPL is a process that allows for the formal recognition of a worker’s existing learning. It gives equal value to workplace and academic knowledge and skill, recognising the workplace as a valid site of learning.”

Smeeton notes that RPL reduces money spent on repeat learning and enables training budgets to be spent on what they are intended for – developing new skills.

“With RPL, workplace training needs can be quickly identified and, because they have been accurately quantified, they can be appropriately addressed,” he adds.

While the original national objectives of RPL focused on access, redress and promoting employment equity, Smeeton says today the business case for RPL is becoming widely accepted amongst employers.

“PMI has long been a proponent of the importance of accurate assessment at the outset of career path and skills development planning. When organisations invest in a proper RPL process amongst the workforce upfront, implementation of staff training and development programmes  is made easier, and success rates are far higher.”

Says Deller: “RPL is achieved by assessing what a person knows and can do, and matching this to the outcomes of a registered qualification. How the knowledge and skills were acquired is immaterial.”

“An accurate RPL process is critical for a skills development programme to be successful. It significantly reduces cost, boredom in the classroom and time out of the workplace.”

“The strategic fit between Prior Learning Centre and PMI is ideal in that our respective core businesses intercept around training. RPL is the unique value-add that the Prior Learning Centre operation brings into PMI,” says Smeeton.

“Prior Learning Centre has vast experience in managing RPL and learnership projects of substantial magnitude. Its 35-strong full-time staff complement is held in high regard by public and academic organisations as well as by business.
”RPL acknowledges that people never stop learning, whether it takes place formally at an educational institution, or whether it happens informally.”

A new engineering artisan training facility which will deliver as many as 500 artisans into the South African economy every year is being launched by Production Management Institute (PMI) in Johannesburg today.

The training centre, located in Jet Park, is home to the full infrastructure required to produce qualified electricians, boilermakers and welders – three trades identified as being in particularly serious short supply.

Managing Director of PMI, Tim Smeeton, says: “This is a direct intervention to produce more engineering artisans. We are opening our new Jet Park campus today and next week we will have our first intake of learners.”

The Jet Park campus is housed in PMI’s Technical Training Services division, which also runs several other engineering and mining training sites in the Gauteng, North West, Northern Cape and Free State provinces.

Apprenticeships and learnerships for electricians, boilermakers and welders, as well as specialist short courses in these trades to fit specific employer needs, are being offered at the new facility.

Says Smeeton: “The initial capacity of the Jet Park campus allows for 250 certified engineering artisans to graduate annually though our intention in the short-term is to escalate capacity and double candidate output.

“Location of the training centre in the Johannesburg City Region as well as its focus on engineering skills also represents a response to the needs of industry in Gauteng.”

PMI Technical Training Services is borne out of the acquisition last year of Goldfields External Training Services (GFETS) by PMI parent company, Adcorp Holdings. Adcorp placed the acquisition with PMI as its specialist training and skills development company.

This year, PMI expects to produce up to 1 500 certified artisans across all its operations.

Smeeton says it is hoped that this initiative on the part of business will kick-start more collaboration between private and public sector players in training artisans.

“PMI has long-been the proponent of a coordinated approach by government and business to address skills shortages in South Africa as the problem is far bigger than any one player can handle.”

PMI trains and up-skills people in the workplace in several key economic sectors and produces graduates with accredited apprenticeships, learnerships, certificates, diplomas and degrees, including postgraduate qualifications.

At PMI’s Welkom campus run by its Technical Training Services division in the Free State employees from six mining houses are trained as artisans or up-skilled on an ongoing basis.

South Africa’s shortage of skills, especially artisans, is largely responsible for the country’s ongoing failure to achieve its targeted growth rate.

It is estimated that South Africa currently produces just 5 600 artisans a year while government has set the target of 50 000 new artisans by 2014.