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MANDATE

National Productivity Institute 2005/2006 Annual Report PRESENTATION TO THE PORTFOLIO COMMITTEE ON LABOUR 31 October 2006. MANDATE. Tasked with the responsibility of improving productivity in all spheres of the nation’s economic and community life. Governed by a tripartite Advisory Council

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MANDATE

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  1. National Productivity Institute2005/2006 Annual Report PRESENTATION TO THE PORTFOLIO COMMITTEE ON LABOUR31 October 2006

  2. MANDATE Tasked with the responsibility of improving productivity in all spheres of the nation’s economic and community life. Governed by a tripartite Advisory Council drawn from government, labour and business.

  3. VISION • The South African productivity champion for • sustainable socio-economic development

  4. MISSION • The NPI is an institution mandated by government, • labour and business to enhance productivity in order • to contribute to South Africa’s socio-economic • development and competitiveness

  5. VALUES • Dedicated to developing and enhancing the productivity of South Africans • Thrive on customer intimacy through unparalleled service excellence • Equity driven in all our interventions • Continuously challenge existing assumptions through innovation and creativity • Social awareness in everything we do

  6. STRATEGIC THRUSTS • Enterprise productivity and competitiveness • Micro-small enterprises productivity capabilities • Public sector efficiency and effectiveness • Knowledge Management and Research • Strategic Leadership on Productivity

  7. STRATEGIC OBJECTIVES • To increase the productivity and competitiveness of South African enterprises • To provide strategic leadership productivity and competitiveness • To generate and disseminate knowledge to addresses key productivity challenges through research and knowledge management • To build the productive capacity of micro-small enterprises • To enhance public sector efficiency and effectiveness • To ensure financial sustainability of NPI

  8. FOCUS AREAS NPI STRATEGIC PROGRAMMES Productive and Competitive Enterprises Sustainable Micro-Small Enterprise Inspiring Accelerated and Shared Growth in South Africa Public Sector Productivity Knowledge Management & Research Strategic Leadership on Productivity

  9. NPI ALIGNMENT WITH THE MINISTER’S PROGRAM OF ACTION • (Numbered according to DoL’s Success Indicators) • 1. Contribution to employment creation • 2. Enhancing Skills Development • 5.Strengthening multilateral and bilateral relations • 7. Promoting sound labour relations • 9. Monitoring the impact of legislation

  10. Yr 5: 2009 Yr 4: 2008 Yr 3: 2007 Strengthening the institutional capacity of the Department 10 • Contribution to employment • creation Yr 2: 2006 Yr 1: 2005 2. Enhancing Skills Development Monitoring the impact of legislation .9 POA Strengthening the capacity of labour market institutions 8 3. Promote equity in the labour market Promoting sound labour relations .7 4. Protecting vulnerable workers 5. Strengthening multilateral and bilateral relations Strengthening Social protection 6

  11. PRODUCTIVE AND COMPETITIVE ENTERPRISES

  12. PRODUCTIVE AND COMPETITIVE ENTERPRISES • Key Objective: • To increase productivity levels and competitiveness of private sector enterprises and as well as growth sector industries with a potential of employing more people. • The program focuses on the following projects: •Workplace Challenge •Social Plan •Sector Initiatives

  13. Workplace Challenge (WPC) Objective: To assist businesses improve productivity and competitiveness through workplace relations, world-class practices Successes: • 116 companies employing 18500 people in 16 clusters • 38 Milestone workshops conducted • 9 Change facilitators trained in 30 Best Operating Practices

  14. WPC - Case Studies • Case study #1: Dunlop Tyre • Problem:Poor relations between management, workers and union affected implementation of Best Operating Practices. • Solution:The WPC capacity building workshops empowered all parties to focus on implementation of Best Operating Practises • Results: Increase in production (30%) and speed (1.54%). Quality improved (40%) as well as morale, Attendance rate risen to 98.43% Case study #2: Widney Transport Components • Solution:Implemented Productivity intervention Initiatives through Mission Directed Work teams • Results:Excellent growth in sales. Constructive labour relations

  15. Social Plan Objective: To prevent job losses through development and implementation of turnaround strategies in companies that are in decline Successes: • 91 company Future Forums were established to implement turnaround strategies • 10 400 jobs protected

  16. Social Plan: Case Studies • Case study #1: Juanre Clothing • Problem:The company was experiencing large losses and about to close down. • Solution: Social Plan conducted business analysis, identified problem areas and resolved them. • Results: Improved turnover, Increased productivity (30%), acquired new premises, supplier of Woolworths girls and ladies underwear. Employment 130 to 152 • Case study #2: Mount Frere Emerging Farmers • Problem: Lack of technical knowledge and skills led to underutilisation of land • Solution: Formed a future forum that developed a turnaround strategy to deal with the relevant interventions. • Results: 51 jobs retained, established key partnerships with NDA, DBSA, Dept of Agric. A cash grant of R250 000 from social development dept.

  17. Sector Initiatives Objective: To improve productivity and competitiveness in growth sectors through collaboration between enterprises – both large and small • Successes: • •Expansion of the Load Accreditation Programme (LAP) • • Completed the 2nd phase of Forestry Productivity initiative

  18. Infrastructure Development (LAP) In partnership with the Department of Transport and other industry players in the timber industry, the NPI developed Load Accreditation Program (LAP) to promote driver wellness, road safety, efficient loading, and improved transport productivity. The number of hauliers participating actively in LAP has expanded over the last year. Overall reduction in overloading in the timber industry is between 40% and 45%.

  19. SUSTAINABLE MICRO-SMALL ENTERPRISES

  20. MICRO-SMALL ENTERPRISES PRODUCTIVITY CAPABILITY • Key objective: • To develop increased number of sustainable small micro • enterprises through productivity improvement. • Successes: • Seda/NPI partnership • Productive Capacity Building Programme for SMMEs • Development of Productivity Coaches • 100 Incubation Project

  21. PUBLIC SECTOR EFFICIENCY AND EFFECTIVENESS

  22. PUBLIC SECTOR EFFICIENCY AND EFFECTIVENESS • Key objective: • To enable public service departments and state owned enterprises to deliver on its national mandate of ensuring efficient and effective service delivery. • Interventions in the following areas: • SOEs • Government department e.g, Education, Transport, Labour, Provincial and Local government

  23. PUBLIC SECTOR EFFICIENCY AND EFFECTIVENESS • Education and Training • 584 ETD service providers [target 224] • 39 Skills development facilitators [target 22] • 229 Business and government managers [target 50] • 489 Workers [target 450] • 388 Emerging entrepreneurs [target 260] • 5 037 Learners exposed to productivity concept • through debates

  24. PUBLIC SECTOR EFFICIENCY AND EFFECTIVENESS • NPI support government’s mandate to ensure increased levels of operational efficiency of service provision in Public Enterprises. • Strategies were implemented in SOEs: • Eskom • Spoornet • Pretoria Zoo • Legal Aid Board • Development Bank of South Africa

  25. KNOWLEDGE MANAGEMENT AND RESEARCH

  26. KNOWLEDGE MANAGEMENT AND RESEARCH • Key Objective: • In partnership with relevant stakeholders the NPI conducts research, publish research reports, productivity statistics, case studies, conducts seminars and disseminates information. • Reports completed: • IMD World competitiveness report, 2006 • Productivity Statistics and analysis report, 2005 Projects underway: • Concise Productivity Handbook • Performance, Productivity and Service delivery in the public sector • Knowledge Management Framework Interventions: • Labour (NUMSA) and Management (Defy)

  27. STRATEGIC LEADERSHIP ON PRODUCTIVITY

  28. STRATEGIC LEADERSHIP ON PRODUCTIVITY • Key objective: • To position NPI and the principles of productivity improvement. • Successes: • Productivity month campaign: • School debates finals • Annual National productivity awards • Initiation of the National Productivity Movement • Media coverage • Establishment of APO Partnership • Partnership with Chambers of Commerce

  29. PARTNERSHIPS AND ALLIANCES • Department of Education • Department of Transport • SMME provincial Directorate in FS, KZN, MP • Western Cape Provincial Government • Department of Economic Development and Tourism in Limpopo • Gauteng Enterprise Propeller • Forest Industry Education and Training Authority (FIETA) • Canada-SA Teacher Development Project • International Institute for Management Development • NEDLAC • CCMA • Pan African Productivity Association • Asian Productivity Association • World Confederation of Productivity Science

  30. SUPPORT SERVICES: HR, FINANCE, IT & ADMINISRATION

  31. HUMAN RESOURCES • Successes: • • Implementation of Balanced Scorecard linked to Performance • Management System • APO partnership relating to capacity building of NPI employees • Improved Labour relations

  32. GOVERNANCE • •Unqualified audit opinion • • Fully compliant with PFMA • • Sound Risk Management processes

  33. FINANCIAL REPORT

  34. 2006/07 FOCUS

  35. CURRENT FOCUS • •National Productivity Movement championed by DoL Minister • • Promoting collaboration between workers and management • • Improving productivity in micro and small enterprises • • Productivity improvement interventions in the Public Sector • • Development of unemployed graduates to facilitate productivity improvement in organisations • • Sector focus • • Impact of Labour legislation on the labour market (partners • DOL, NPI, CCMA, Nedlac, Naledi) • • Sectoral studies • • Strengthening relationships with NPOs • • Building the capacity of NPI employees through • APO partnership

  36. CHALLENGES

  37. CHALLENGES • • Capacity – limited financial and human resources given our National mandate • • Delays in execution of project phases caused by third parties e.g. DOE having not received permission from provinces for the release of teachers to be trained by the NPI. • • Promoting productivity awareness amongst all stakeholders • • National Productivity Accord supported by social partners

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