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Developing a strategic framework for skills development!

A manufacturing perspective!Bob  Paton  

CEO  –  Manufacturing  Skills  Australia  30th  June  2014  

Manufacturing in Australia

!  Manufacturing  in  Australia  and  the  world  is  changing  rapidly  and  Australia  needs  to  re-­‐posiFon  its  manufacturing  industry  

!  Tomorrow's  workforce  will  need  some  quite  different  skills,  and  not  just  about  technology  

!  We  need  to  change  our  educaFon  at  school,  in  VET  and  higher  educaFon  

!  We  need  a  change  of  mindset  about  manufacturing  to  match  the  reality  of  future  work  

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1985  1987  1989  1991  1993  1995  1997  1999  2001  2003  2005  2007  2009  2011  2013  

Employment  in  Australia  1985-­‐2013  

Total  employed  in  Australia  (millions)  

Total  employed  in  manufacturing,  Australia  (millions)  

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Contribu;on  to  economy  1985-­‐2013  

GDP  Manufacturing;  billions   GDP  Australia  ;  billions  

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1948  Holden  48-­‐215  cost  £733    Approximately  92  weeks  of  average  weekly  earnings  

2014  Holden  Commodore  Interna;onal  cost  $36,990    Approximately  26  weeks  of  average  weekly  earnings  

What future for manufacturing in Australia?!  Compared  to  many  others,  we  enjoy:  

– high  standards  of  living  – readily  available  and  reliable  energy  and  water  supplies  

– poliFcal  stability  and  homeland  security  

– organised  social  infrastructure  (health,  educaFon  etc)  !  We  cannot  compete  with  low  labour  cost  economies  

!  We  must  find  our  new  manufacturing  ‘place’  !   We  must  have  a  manufacturing  workforce  that  is  

capable  of  delivering!  

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Manufacturing Skills Australia symposium

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Experts  shared,  collaborated  and  tackled  some  of  the  naFon’s  most  pressing  challenges.    

Key  parFcipants  included:  •  Dr  Karl  Kruszelnicki  •  Prof  Göran  Roos    •  Dr  Swee  Mak  (CSIRO)  •  Prof  John  Buchannan  (Sydney  University)  •  Prof  Sam  Bucolo  (Uni  of  Technology  Sydney)    •  Prof  Andy  Smith  (FederaFon  University)  

Expected changes in the future!

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!  impact  of  servi&sa&on  !  revised  business  structures  !  transformaFve  use  of  technology  !  a  new  approach  to  meeFng  customer  demands  

!  an  increasing  need  for  STEM  skills,  for  all  workers  (Science,  Technology,  Engineering,  MathemaFcs)  

Servitisation (or servitization)!Moving  to  products  and  services  

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(Andy  Smith  –  FederaFon  University)  

Revised business structures

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!  Management  skills,  management  for  and  of  change,  new  products,  new  markets  

!  Benchmarking,  adopFng  new  pracFces,  processes,  lean  thinking  and  operaFons  

!  People  management,  workforce  development  !  PromoFng  innovaFon  

Design thinking

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(Sam  Bucolo  –  University  of  Technology  Sydney)  

Transformative use of technology

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!  AdapFng  exisFng  technology  !  AdopFng  new  technology  –  3D  prinFng  –  4D  prinFng,  

roboFcs,  new  materials,  new  processes  !  DigiFsaFon,  bringing  the  customer  closer    !  Exploring  new  horizons  –  innovaFon  –  risk-­‐taking    

$625.00  !!!  

A new approach to meeting customer demands!

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!  Personalise  or  customise  products  and  services  –  mass  customisaFon?  

!  Understand  and  respond  to  customer  insights  and  needs  more  rapidly  

!  Create  knowledge  and  sell  experiences  !  Be  aware  of  increasing  customer  expectaFons  in  

terms  of  business  operaFons  and  social  impacts  

An increasing need for STEM skills!

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!  Current  and  future  work  demands  increases  in  science,  technology,  engineering  and  mathemaFcs  skills  

!  Current  situaFon  is  not  dealing  with  the  present  demand  for  STEM  skills  

!  Making  value  vs  making  things  requires  “design  thinking”  !  problem-­‐solving,  insight,  innovaFon,  

integraFon    

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!  To  maximise  producFvity,  a  “system  of  system”  soluFons  that  not  only  leverage  materials,  processing,  and  informaFon  sciences  but  also  seamlessly  integrate  into  the  producFon  and  business  flows  of  the  firm  is  required  to  enable  the  more  efficient  transformaFon  of    

•   LABOUR  –  Ensuring  all  labour  is  supporFng  value  add  acFviFes  

•   KNOWLEDGE  –  Ensuring  informaFon  is  used  to  opFmize  decisions  

•   RESOURCES  –  Ensuring  waste  (Fme  and  materials)  is  minimized    

(Swee  Mak  –  CSIRO)  

Addressing systems productivity!

What does this all mean for skills?!

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! Manufacturing  jobs  are  changing  –  some  will  be  lost,  others  will  grow  

!  Need  for  beqer  management  skills  at  all  levels  

!  New  skills  for  exisFng  jobs  !  Build  capabiliFes  and  adapFve  capacity  across  the  whole  workforce  

The meandering path of life, work and skills!

17  (John  Buchanan  –  Sydney  University)  

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phone  +61  2  9955  5500  email        info@mskills.com.au    web    h\p://www.mskills.com.au