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Building a nation at work

NATIONAL PRODUCTIVITY

INSTITUTE

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VISION

The irrefutable champion of holistic,

innovative and sustained development of

South Africa’s productive capacity for the

equitable benefit of all in a socially

responsible manner

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MISSION

The NPI is a tripartite body dedicated to the

development and enhancement of South

Africa’s productive capacity by articulating

the spirit of tripartism through research,

information dissemination, training, facilitation,

consulting, auditing and monitoring all

productivity issues and challenges in order to

improve the quality of life of all South Africans.

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STRATEGIC PROJECTS

The NPI identified, developed and

managed projects that address

National Priorities

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SOCIAL PLANSOCIAL PLANFollowing the Presidential Jobs Summit 1998, the NPI was

appointed to provide technical assistance

to:

• Detect early signs of decline in industry sectors

• Facilitate the establishment of Future Forums

• Provide technical advice on developing turnaround and redeployment strategies

• Assist stakeholders with relevant information

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SOCIAL PLANAchievements

• The NPI facilitated the Social Plan process and formulated the implementation guidelines

• 70 Future Forum established

• 10 projects completed-1169 jobs saved

• 3 Sector Initiatives Clothing Sector Study - complete Mining Sector Study - complete Footwear Project - ongoing

• 3 Social Plan Centres established in Gauteng – two operating

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WORKPLACE CHALLENGEWORKPLACE CHALLENGE

The Workplace Challenge is a joint initiative between Nedlac and the Department of Trade and Industry, managed by the National Productivity Institute.

The WPC objective is to improve the competitiveness of manufacturing sectors.

The cornerstone of the Workplace Challenge is that it works with management and workers at the shop-floor to improve productivity through better relationships and business processes.

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•11 sector projects were implemented, involving 70 companies.

•Qualitative improvements between labour and management and productivity were reported in all sectors:

•Weir-Envirotech in Isando, employing 320 workers, recorded delivery time improvements of 75% and cost-savings of 7,5%

•Dorbyl Structural Products in Vanderbijlpark recorded a 33% reduction in breakdown hours

•Vynide Midlands (near Sasolburg) recorded a saving of 300 jobs.

•Willowton, a footwear company in KwaZulu Natal, reported an increased manufacturing capacity of 300% with the same labour force.

WORKPLACE WORKPLACE CHALLENGECHALLENGE

AchievementsAchievements

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WORKPLACE CHALLENGEWORKPLACE CHALLENGEAchievementsAchievements

SECTOR LOCATION NUMBER OF COMPANIES

STAGE OF COMPLETION

Capital Equipment Gauteng & 1 KZN 5 Completed

Plastics Gauteng & 1 W/Cape 6 Completed

Clothing E/Cape & W/Cape 5 95% Complete

Footwear KwaZulu Natal 7 95% Complete

Auto. Components KwaZulu Natal 6 90% Complete

Furniture KwaZulu Natal 6 80% Complete

Stainless Steel Western Cape 6 70% Complete

Fruit Packaging Western Cape 8 60% Complete

Textiles KwaZulu Natal 6 60% Complete

Footwear Western Cape 7 40% Complete

Fish Processing Western Cape 7 30% Complete

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SECTOR INITIATIVESSECTOR INITIATIVESSector Initiatives targets sectors with growthpotential. The objective is to aggressively encourage competitiveness through productivity improvement.

AchievementsAchievementsFORESTRY CONTRACTORS’ PRODUCTIVITY INITIATIVE (NATIONAL)

A skills audit and training of 40 forestry contractors, as well as the development of a national strategy to develop productivity and competitiveness for the forestry industry completed.

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SECTOR INITIATIVESSECTOR INITIATIVESAchievementsAchievements

INFORMAL CLAY BRICK SECTOR INFORMAL CLAY BRICK SECTOR (EASTERN CAPE) (EASTERN CAPE) T he NPI developed a sector initiative proposal and raised funds to develop the informal clay brick manufacturers in the Eastern Cape. The NPI is currently involved in the project together with PERMAC.

Programme has started with 2 of the 5 projects envisaged. (Approximately 15% completed)

TIMBER INTERNET CLEARING HOUSETIMBER INTERNET CLEARING HOUSE

(GAUTENG AND NATIONAL)(GAUTENG AND NATIONAL) The NPI developed a proposal and secured early funding for an initiative to trade internationally in timber products using the internet. The DTI’s Sector Partnership Fund provided the funding for the initiative.

8 International transactions concluded with 6 countries at final stages of negotiation. (Spain, Dubai, India, China, Kuwait, Zimbabwe)

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SECTOR INITIATIVESSECTOR INITIATIVESAchievementsAchievements

CLOTHING HUB A sector initiative to establish a Clothing Hub in KwaZulu- Natal for cut, make & trim (CMT) operators was facilitated by the NPI. The DTI’s Sector Partnership Fund provided the funding for the initiative. Third overseas visit to secure orders for Clothing Hub during December 2001

THE UKUKHULA CONSORTIUM (GAUTENG AND CAPE TOWN)

The NPI facilitated the formation of the Ukukhula consortium to improve com--petitiveness through export opportunities in the commercial refrigeration industry. This has resulted in substantial export orders to the UK and Australia.

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EMERGING SECTORSEMERGING SECTORS

NPI activities focused on creating

productivity awareness and developing

productivity capacity in the SMMEs,

Rural Communities, Youth and Women.

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SMMEs AND COMMUNITY-BASED SMMEs AND COMMUNITY-BASED DEVELOPMENT INITIATIVESDEVELOPMENT INITIATIVES

• PRODUCTIVITY AWARENESS WORKSHOPS: Gauteng, North-West, Freestate, KwaZulu-Natal and Mpumalanga

– 168 services providers – 346 SMMEs– 79 facilitators trained in KZN, Mpumalanga and Gauteng

• PRODUCTIVITY AUDITS: KwaZulu-Natal, Mpumalanga and Gauteng

– 10 Audit reports completed viz.: Kyalami, Tshwane, JHB, Ekurhuleni, Lekoa, Richards Bay, Ladysmith, Port Shepstone, Witbank and Nelspruit

• PRODUCTIVITY IMPROVEMENT PROGRAMMES FOR DISABLED ENTREPRENEURS: in partnership with Ntsika (Cape Town and Pretoria)

• CRITICAL PARTNERSHIPS AND LINKAGES were developed with provincial SMME desks and service providers to ensure synergy and coherent interventions.

• CADET PROJECT (IN PARTNERSHIP WITH NTSIKA AND UWC)

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CADET PROJECTCADET PROJECTNPI, UWC and NTSIKA PartnershipNPI, UWC and NTSIKA Partnership

Trained 32 University postgraduate and third year students in the Enterprise Development Unit of the University of Western Cape as productivity coaches/ cadets.

• SMMEs– 18 SMMEs participated– Mixed sectors– Employs between 5 to 200 people

• PROCESS – Conduct Audit– Design and implement Turnaround Strategy

for SMMEs– Students assigned to SMMEs for the whole

year– Students coached by NPI

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INNOVATIVE DISABLED ENTREPRENEUR AWARD SCHEME

(NPI AND NTSIKA)

The project aims at equipping the participants with knowledge, skills and requisite attitudes to be productive and competitive.

- Two workshops in Cape Town and Pretoria

- Trained 25 individuals (10 female and 15 male)

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PRODUCTIVE BEHAVIOUR AND COMPETENCIES

The NPI in partnership with Standard Generating Bodies and SETAs are taking productivity concepts and application to

the nation by ensuring that productivity is a component of all South African

qualifications

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PRODUCTIVITY UNIT STANDARDS INCORPORATED INTO

STANDARDS GENERATING BODIES AND SETA

• Human Resource Management and Practices

• Mining• Lumber Milling• Tourism and Hospitality• Plastics• Services• Generic Management

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EXPORT MARKETINGEXPORT MARKETING• Part of the NPI’s

commitment to national priorities is to promote exports by sharing expertise through workshops.

• The NPI- initiated AGOA awareness campaign for the local textile and clothing industries.

IMPORTS &EXPORTS

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PROMOTIONS AND

ADVOCACY

The NPI created awareness

and maintained national

and international links.

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EVENTS, EVENTS, PROGRAMMES PROGRAMMES AND AND PUBLICATIONSPUBLICATIONS

Productivity Awareness Programme

• National Productivity Week – Productivity Awards– Seminars, Workshops and

Conferences

• Productivity Statistics

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WORLD COMPETITIVENESS WORLD COMPETITIVENESS YEARBOOKYEARBOOK

The NPI became an “institutional partner” of the Competitiveness

Yearbook

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• The NPI maintained links and cooperated with the following international organisations:

– European Association of National Productivity Centres(EANPC), Brussels, Belgium

– Irish Productivity Centre, Ireland– National Productivity Council, India– Asian Productivity Organization (APO), Japan– Productivity Centre for Socio-Economic Development, Japan– World Confederation of Productivity Science – National Productivity Corporation, Malaysia

– Productivity and Standards Board, Singapore– Botswana National Productivity Centre (BNPC)– Commonwealth Secretariat– International Labour Organisation– Kenya, Zambia, Zimbabwe and Swaziland

INTERNATIONAL RELATIONS

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REVIVAL OF PAN-AFRICAN REVIVAL OF PAN-AFRICAN PRODUCTIVITY ASSOCIATION (PAPA)PRODUCTIVITY ASSOCIATION (PAPA)

• The NPI hosted a very successful PAPA meeting in August 2001.

• High- level representatives from national productivity and related organisations in Botswana, Kenya, Mauritius, Seychelles, South Africa, Swaziland, Zambia and Zimbabwe.

• The meeting reaffirmed the critical need for a continental forum that will actively promote the sharing of ideas, experiences and best practices on productivity enhancement in Africa.

• The meeting adopted a draft constitution and elected an interim board: -       President - Ketan Lakhani - NPI, South Africa -       First Vice- President – Thembo Lebang – BNPC, Botswana) - Second Vice-President – Ms Janick Bru – Seychelles - Co-opted Member – Mr Yusuf Sooklal - Mauritius - Secretary General – Dr Yvonne Dladla - NPI South Africa

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THREE YEAR PLAN (2002 -2004)

Five programmes have been adopted to ensure that South Africa, through the NPI, emerges as one of the leaders in productivity and competitiveness.

A representative management team will seek to find innovative and holistic productivity solutions for individual and organisation to enable them to compete in the global marketplace

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PROGRAMME 1

–Support SMMEs through increased productivity awareness

–Productivity audits-by sector, by region

–Developing productivity coaches

–Establishing productivity coaches forum to share challenges and successes

–Partnerships with business schools to broaden the pool of coaches

–Disseminating relevant information

PRODUCTIVE BEHAVIOUR AND COMPETENCIES:

Entrenching a culture of productive behaviour and productive practices by building the capacity of intermediary bodies in direct contact with our target audiences to improve individual productivity competenciesand to implement productivity solutions for organizations – therebyenhancing national competitiveness and contributing to economic growth and social development

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PROGRAMME 3

POSITIONING AND PROMOTING

PRODUCTIVITY

• Position the NPI and its programmes

• Create and promote Productivity awareness

• Disseminated productivity-related best

practices

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PROGRAMME 4

SUPPORTING NATIONAL STRATEGICINITIATIVES

• SMME and Community-based initiatives• Social Plan• Workplace Challenge• Sector Initiatives

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RESEARCH, KNOWLEDGE MANAGEMENT AND ADVOCACY:

• Undertake research in productivity improvement and measurement, • Develop and disseminate productivity-related information and knowledge.• Generate information that will have a positive influence on policy debates and formulation that impact on productivity and competitiveness.

PROCESS

 Research Positioning and promoting productivity Supporting national strategic initiatives

 

PROGRAMME 2

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PROGRAMME 5

CONSULTING

Provide technical assistance to: • Large and small Corporations• Public sector organizations, provincial and

local levels• SMMEs, community-based projects, non- governmental organisations• Educational institutions

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FINANCIAL PERFORMANCE

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HIGHLIGHTS

2000

R

2001

R

Revenues 39,738,745 40,514,923

Net income 7,495,498 3,673,958

Total Assets 12,655,156 15,919,693

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REVENUE

Government grant47%

Social Plan0%

Workplace Challenge30%

Own Income23%

SOURCES OF REVENUE 2000/2001

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REVENUE OVER 5 YEARS

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22.7

29

39.7 40.5

0

5

10

15

20

25

30

35

40

45

1997 1998 1999 2000 2001

REVENUE 2000 -2001

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18

10

1820,44

19,28

0

5

10

15

20

25

1997 1998 1999 2000 2001

GOVERNMENT GRANTGOVERNMENT GRANT

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THANK YOUTHANK YOU