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PRESENTATION TO THE SELECT COMMITTEE ON

LABOUR AND PUBLIC ENTERPRISES

(NCOP)26 AUGUST 2009

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BACKGROUND

• Productivity Advisory Council established in 1969

• Composition of Productivity Advisory Council - employer organisations - employee organisations - government

• National Productivity Institute became a section 21 – 1975

• National Productivity Institute name changed to Productivity SA - 2007

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ESTABLISHMENT OF PRODUCTIVITY SA

• Productivity SA established under the new Skills Development Amendment Bill 37,2008

• Under the new Bill, complies with the requirements set out in Schedule 4 of the Bill

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VISION AND MISSION

VISION

• To lead and inspire a productive and competitive South Africa.

Mission

• Productivity SA is a tripartite organisation dedicated to the development and enhancement of South Africa’s productivity by unleashing the spirit of continuous productivity improvement in all South Africans.

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KEY FOCUS AREAS

• Productivity Promotion Campaign for South African Citizen

• Productivity in Public-Benefit Organisation

• Productivity in Enterprises (Social Plan, Workplace Challenge and SMME’s)

• Knowledge Management and Research

• Corporate Services (Human Resources and Finance)

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STRATEGIC OBJECTIVES

• To promote a culture of productivity in workplaces• To develop relevant productivity competencies• To facilitate and evaluate productivity improvement and

competitiveness in the workplaces• To measure and evaluating productivity in the workplace• To maintain a data-base of productivity and competitiveness

systems and publicising these systems• To undertake productivity related research• To support initiatives aimed at preventing job losses • To perform any other prescribed functions

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ALIGNMENT WITH THE MINISTER’S PROGRAM OF ACTION

• Contribution to employment creation

• Enhancing Skills Development

• Strengthening multilateral and bilateral relations

•Promoting sound labour relations

•Monitoring the impact of legislation

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PRODUCTIVITY PROMOTION CAMPAIGN FOR SOUTH AFRICAN

CITIZEN

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PRODUCTIVITY AWARENESS

OBJECTIVE

To promote productivity awareness, through:

• Championing productivity nationally

• Influencing key decision makers from business, labour and society to support the national productivity campaign

• Imparting productivity related knowledge at a strategic level to support the national productivity campaign

Projects

Accelerate the National productivity movement campaign

Increase productivity awareness Level

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NATIONAL AWARENESS CAMPAIGN

OBJECTIVES

To popularise the National Productivity Movement

Enterprises (e.g. waste reduction, continuous improvement, Annual Productivity Awards)

To dissemination of productivity-related info.(Productivity magazine and other forms)

• National Productivity Awareness Drive

• Promotion of Productivity Solutions (SP, WPC)

• Productivity related information

PROJECTS

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KNOWLEDGE MANAGEMENT AND RESEARCH

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OBJECTIVESThis intervention aims to provide decision makers in Government, Business and Labour with information and knowledge on productivity of economic sectors to improve competitiveness of our economy

Initiate, conduct and co-ordinate productivity related research through a network of research partners

Generate information to influence policy debates

Collate and disseminate the results of research

Distil lessons learnt and best practices fromsuccessful cases inside and outside the country for adaptation and application

PRODUCTIVITY IN INDUSTRY

• In-depth research reports supporting sector development strategies • Annual productivity statistics publications• Annual reports on International competitiveness (IMD reports)• Seminars for economic policy-shapers from Government, Business and Labour• Research report on the impact of productivity on labour legislation

Projects

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PRODUCTIVITY IN PUBLIC BENEFIT ORGANISATONS

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PRODUCTIVITY IN PUBLIC BENEFIT ORGANISATIONS

OBJECTIVE

• To provide productivity training to intermediaries such as educators Skills Development Facilitators and Education and Training Development service providers to leverage our reach to organisations and communities

• Educators trained to train learners on productivity concepts

• Training of government and SOE managers Implement customised Continuous Productivity  improvement processes

• Accredited ETD service providers

• Productivity Training of Skills Development Facilitators

• Productivity improvement in one public-benefit organisation

Projects

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PRODUCTIVITY TRAINING

Actual Performance

Performance Indicator 2004/05 2005/06 2006/07 2007/08 2008/09 Totals

ETD service providers trained as distributors of productivity

75 584 383 676 383 2 101

Skills Development Facilitators trained on productivity concepts

0 39 2 121 79 241

Workers trained on productivity 1 369 552 152 459 123 2 655

Business and government managers trained on coordinating productivity improvement

30 229 30 38 27 354

Emerging entrepreneurs trained on productivity improvement

78 388 446 1 811 478 3 201

FET learners exposed to and taught productivity concepts

4 168 5 037 4 791 2 876 2156 19028

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PRODUCTIVITY IN ENTERPRISES

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TURNAROUND SOLUTIONS (SP)

• Establish Future Forums (FF)

• Develop turnaround strategies

• Establish Early Warning System (EWS)

• Conduct Impact assessment

• Conduct industry desktop studies

• Orientation of in-company Productivity Champions on self-implementation process

Projects

OBJECTIVE

To prevent a decline in the country’s employment levels in organizations and sectors in distress through turnaround interventions To retain jobs by sustaining companies through proactive solutions.

To conduct Future Forums and Early Warning Systems training for the Social Plan

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SECTORS/ACHIEVEMENTS

SECTORS Agriculture ,Hunting,Forestry & Fishing

Metal, Steel & Iron

Clothing & Textiles

Wood

Printing

Security Service

Food Processing

Arts & Crafts

Transport

MORE THAT 96 000 JOBS IMPACTED UPON

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PROVINCES COVERED

Provincial Representation

0

5

10

15

20

25

30

35

1

•North West

•Eastern Cape

•Gauteng

•Limpopo

•Mpumalanga

•Western Cape

•KwaZulu-Natal

•Northern Cape

•Free State

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WORKPLACE CHALLENGE

• To improve productivity and competitiveness of South African firms and sectors through constructive labour relations and the implementation of continuous improvement principles at the workplace

OBJECTIVE

Projects

Enterprises nurtured

Capacity building workshops (for companies participating in Clusters)

Implement workplace transformation in clusters of between 6 and 9 enterprises.

Clusters participating in the aftercare programme

Model Companies established to enhance competitiveness through demonstrating to other companies

Manufacturing centres implementing Continuous Improvement principles

Implement awareness and dissemination programme

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PRODUCTIVITY IN SMMEs

OBJECTIVE

To develop increased number of sustainable small micro enterprises through productivity improvement

To instil a culture of productive behaviour and best productive practices amongst the SMME sector

Projects

Productivity competencies for emerging entrepreneurs

• Small and Micro enterprises improved their survival by increasing their profitability annually

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Second Economy Interventions

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Second Economy Interventions

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CORPORATE SERVICES

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International Partnerships

• To create a forum of transferring

cutting-edge productivity knowledge and skills to Productivity SA and other National Productivity Organisations in Africa

OBJECTIVE Projects

• Implementation of partnership projects with: Asian Productivity Organisation

(APO) Japan Productivity Centre for

Socio Economic Development (JPC-SED)

Productivity SA still serves as PAPA Secretariat of Pan African Productivity Association

AU Labour and Social Affairs Commission

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ORGANISATIONAL MANAGEMENT

OBJECTIVE

To create an enabling environment, that continuously ensures the alignment of financial and material resources to organizational strategy

• Implement Risk Management Strategy

• Implement the Fraud Prevention policy • MTEF Budget submitted to Treasury

• Annual budget submitted to Treasury • Adherence to PFMA

ProjectsHUMAN RESOURCE AND FINANCE