EXPLANATORY PAPER FOR PROPOSED
DIPLOMA IN COMPETITIVE MANUFACTURING
1. Introduction
This explanatory paper has been developed to accompany the release of a consultation draft for the proposed Diploma in Competitive Manufacturing.
This paper sets out the background and purpose of the qualification and should be read in conjunction with the consultation draft.
Comments and feedback on the draft qualification is strongly encouraged. Comments can be sent on the feedback form that has been distributed with this paper.
Industry should feel free to comment on any or all of the parts of this explanatory paper. Many thanks for your time and input into this project.
2. Background
The Competitive Manufacturing Consortium of ITOs has been established to represent ITOs involved in manufacturing for the purpose of coordinating industry training strategies and resources to support the implementation of Competitive Manufacturing qualifications in New Zealand.
In recognition of the fact that Competitive Manufacturing qualifications are a by-product of the implementation of productivity initiatives within enterprises, the Consortium is committed to the wider objective of implementation of productivity improvement strategies throughout the public and private sectors in NZ to support an innovative and competitive manufacturing sector. The Consortium sees this as a key strategy for manufacturing in New Zealand to be sustainable and to develop into the future.
The Consortium has registered two qualification structures to date to recognise the development of skills to support the implementation of continuous improvement processes in the workplace. Outlines of these qualifications appear in the Appendix of the qualification draft document.
There have been calls from industry for higher levels to be developed in the set of qualifications for Competitive Manufacturing. An industry workshop was help in June 2007 to define the needs for higher level qualifications. This was followed by a provider workshop which aimed at ensuring that the draft qualification could be delivered in a way that met industry needs.
3. Strategy and focus for the proposed Diploma in Competitive Manufacturing
The existing Competitive Manufacturing qualifications at levels 2 and 4 provide training targeted for practitioners at the level of shopfloor teams and team leaders and facilitators of Competitive Manufacturing practice. The proposed Diploma is aimed at the level of the managers who are leading the strategy to implement CM in the organisation.
Preliminary research and consultation with industry has shown that this is a group that needs to be recognised, not only for their particular skill sets, but also to recognise the critical role played by the target group in terms of leadership of the implementation of Competitive Manufacturing programmes within organisations.
4. Target Audience for the Diploma
Input received at workshops indicates that the qualification structure relates to organisations as follows:
| Qualification |
Position |
Focus |
| Diploma |
General Managers, CEOs, Plant Managers, Dept Leaders, Production Managers, Team Managers, Site Delegates, Operations Managers |
Strategic focus
Accountable for budgets
Establishes the environment for the process of change |
| L4 |
Dept Supervisors, Team Leaders, Dept Training Coordinators, Senior Operators, Delegates, Shift Managers |
Implementation focusWeek to week business |
| L4 |
Team Leaders |
Operational day to day business |
| L3 |
Team Leaders |
Operational day to day business |
| L2 |
Operatives |
Manufacturing, quality assurance, customer service, manufacturing support |
It is noted that:
- The role and level at which Team Leaders operate varies across organisations - this is reflected in the feedback
- The Diploma is aimed at people that lead people. For smaller organisations, the Diploma level would be appropriate for senior management; for larger organisations, this would be the next level of leadership - operational managers.
5. Scoping of Content
Two meetings have been held with industry representatives and representatives of those providing on site CM training in New Zealand. The direction and suggested content from these meetings was similar and is reflected in the following:
CM and Business Strategy
CM needs to be recognised as integral to business strategy. It is not a training strategy - the qualifications recognise the outcomes of productivity improvement programmes. There is a need for the principles of CM to be understood at a senior level in an organisation and for there to be senior buy-in for programmes to be successful.
Leadership Approach
The success of CM programmes is based on whether there is the development of a new culture in the organisation. There is a critical set of skills needed around leadership of change which includes the ability to understand strategy and translate that into the actions that need to be undertaken at an operational level.
Leadership of CM Strategy and Implementation
The Diploma was seen as a natural development of learning after a leader had already carried out projects at level 4 because the knowledge is gained through practical application.
The Diploma is about having the ability to lead the strategy by having a practical knowledge of the CM tools and practices and being able to provide leadership for those who are carrying out the implementation.
One of the key parts of the leadership role is to manage the implementation in a way that creates not only change but also the capability to sustain change.
The Diploma needs to give tools to managers who play a critical role in interpreting corporate push and customer drivers and who play a key role between organisation and customers.
6. Content of a Diploma Plan
Pulling ideas from these discussions together, the recommendation was that there are three key components to the qualification:
Strategic Understanding
- Understand how to build competitive advantage (and stay in business) - Value-creation model/Manufacturing+ /environmental sustainability
- Understanding the need for change and ability to create that in others
- Understand organisational behaviour/culture/the framework for innovation
- Understand change management (ways to influence, gain buy-in)
- Theoretical understanding of CM and components and how to implement practically
- Be able to "clear the clutter" e.g. managers clearing themselves for new roles (5S at their level)
- Be part of groundwork for changing the organisational direction and strategy (contribute to it)
Leadership Skills
- Facilitation/communication, education
- Analyse problems/develop solutions
- Ability to plan and implement plans
- Listening skills/understanding team dynamics
- Project management
- Leadership that empowers people (not bound up by systems) e.g. SOPs are living documents/continuous improvement - not barriers/bureaucracy
- Report-writing/making presentations
- Interpret financial information
- Ability to understand and manage the transition required in middle management
- Reward and recognition
CM Skills
- Understand theoretical and practical CM
- Analysis/problem-solving/planning
- Development of systems (e.g. standardisation/SOPs)
- Value stream mapping
- Continuous improvement
- Setting KPIs/measurements - hard and soft measures
- Benchmarking and quality systems
- Understand and implement tools - RCA, 5S, Value stream mapping, VPM, Quick Changeover, preventative maintenance, teamwork, loss and waste (include environmental sustainability)
7. Possible Qualification Structure
The group has taken this concept a step further and developed a possible qualification structure to support these outcomes based on competency standards. A major requirement for this structure is the need for flexibility, so that organisations can select some of the skill requirement for their own organisational needs. This has to be balanced with the need for a qualification to have a set of definable outcomes that are consistent across the country.
A proposed structure has identified key skills for all holders as:
- Value stream mapping
- Development of measures and goals to support objectives
- Making cultural change happen in the organisation at operations level
- Implementing a Competitive Manufacturing strategy
To support this set of skills the structure suggests that the holder will have a number of the following skills:
- Able to make improvements to the value stream
- Development of strategic plans for implementing CM
- Relationship building out side the organisation
- Development of communication systems within the organisation to support CM implementation
- Completing at "Kaizen Blitz" or similar improvement activity
- Measurement and improvement of process capability using SPC
- Implementation of document control systems
- Development of sustainable energy practices
- Development of sustainable environmental practices
- Development of a new product
The suggestion is a total of five or six of these skill sets should be required.
There is a recommendation that a further technical strand could be added to the qualification for those that wish to progress their training further. This strand would not be required to complete the diploma. This strand would consist of a selection of technical skills focused on Competitive Manufacturing skills in:
- Quick changeover
- Just in Time
- Process design
- Product cost optimisation
- Analysis of costs in the organisation
- Proactive maintenance strategies
- Use of Statistical process control techniques.
A further facilitation strand has also been suggested that would allow upskilling in the management of people, the development of business processes and systems, the leading of people and organisational development skills. These skills would be selected from those already registered by other standards setting bodies on the national qualifications framework, and could be delivered by providers in generic management skills.
The proposed qualification structure is set out in the consultation draft.
8. Training Delivery
The discussion so far has confirmed that this is to be an applied qualification. The trainee will do things in the workplace to demonstrate they have the skills described in the qualification. Therefore the training delivery has to be related to opportunities for the trainee to practice the skills and present proof of activities completed to meet these requirements.
The workshops noted that there will need to be development of training approaches that suit smaller organisations and regional locations.
It was also noted that there is a need to develop further capability in New Zealand. The introduction of competency standards and assessment against these skills will provide a measure of the quality of training currently being delivered.
The CM Consortium has developed a programme to recognise individuals that have proven track records in the delivery of CM training inside New Zealand companies. Part of the purpose of this process is to develop relationships with providers at this level and to encourage them to support the delivery of the diploma programme. To date these people are practitioners that work for consultancies engaged in implementing Competitive Manufacturing. While some tertiary providers have programmes that support the implementation of Competitive Manufacturing, these programmes tend to be theoretically based rather than focused on making a change in the organisation as part of the learning experience.
The workshops also discussed some ideas for the development of capability:
- A school of Competitive Manufacturing - set up based on industry leadership
- Development of independent best practice (based on international as well as NZ based research and practice)
- Development of synergies between CMI and the wider context of government strategies to deliver productivity in order to ensure that further opportunities to provide support to industry are fully explored
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