The United Kingdom Automotive Academy and the Northwest Automotive Alliance
INTERNATIONAL SKILL ECOSYSTEMS EXEMPLAR | Belinda Smith, SmithComyn & Associates for TAFE NSW ICVET
This case study outlines how the UK automotive industry, and in particular the Northwest region, are meeting demands of a global marketplace with the challenge to align its technology, product and business performance to deliver customer value at even lower cost. Part of the industry’s response has included the establishment of the Automotive Academy as a national training broker and content specialist for the industry.
The Academy is organised on the basis of a central hub and a series of regional spokes. The hub is based in the West Midlands, in the heart of the automotive industry and is the centre of operations for the Academy. It is a very lean organisation, with a small team creating a strategy for enhancing the industry's skills. The North West spoke is based within the North West Automotive Alliance, which is a cluster organisation for the automotive industry in the region.
This exemplar features many components of a skill ecosystem including:
- demand led activities
- integrated industry collaboration, and
- flexible workforce development.
The Industry
England’s Northwest has the second highest regional representation of vehicle makers and is the second UK region in terms of automotive employment after the West Midlands. The Northwest is home to 450 automotive companies, 200 of which are major automotive supply chain companies. The sector has an annual business turnover of £9 billion and employs 43,000 people. 200,000 cars and 13,000 trucks were produced in 2003. It is estimated that the automotive supply base of the Northwest automotive sector exports 60% of its products. This is twice the national average.
The Northwest Automotive Alliance (NAA), an automotive industry cluster, manages the Northwest spoke of the Automotive Academy. The NAA pursues the development of world-class standards of excellence in manufacturing, engineering, supply chain management, innovation and workforce skills. The overall strategic goal of the NAA is to create and develop a sustainable local industry that makes a positive contribution to the growth and social well being of the region.
NAA has established three sub-groups to develop and oversee the implementation of its strategy in the following areas:
- supplier development
- skills and employer development
- innovation and technology
The NAA's Skills Group is chaired by a director of the NAA with representation from training managers from key Northwest automotive companies.
The Skills Group:
- identify local industry needs
- identify best practice providers
- deliver needs in partnership with providers
Training reflects the business plan demands of each partner company. ISO/TS 16949 Quality Management and Auditor training has been provided for local companies and their suppliers. Part of the training involves visiting larger or more innovative companies and reviewing their activities that are relevant to the training topic.
Impetus
At an industry forum attended by more than 150 vehicle makers and strategically important suppliers, they identified their experiences of developing skills and achieving profitability in their UK-based operations and their supply chains.
Information from the industry forum helped to direct the agenda of the Automotive Academy. Key points highlighted from the forum include:
- 61% of the attendees believed that a lack of employee skills affected profitability
- half the audience experienced greater difficulty in recruiting people with the right skills in the UK compared with other countries
These findings strongly justify the decision to create an Automotive Academy capable of developing employees skilled to a globally competitive level.
Established as a partnership between Government and industry, the Academy promotes quality training and skill development throughout the UK's automotive industry and has been created with the backing of up to £12 million of Government funds through the Department of Trade and Industry. The Academy is not a deliverer of training, rather it provides a brokering service for the industry. The Academy has a network of industry and nationally recognised training providers.
Brokerage service
The Academy ‘validates’ or endorses organisations to deliver training to the industry. Training covers new apprenticeships through to senior boardroom directors . All content being demand driven. The Board is made up of Chairmen, Managing Directors, Vice Presidents and other senior car manufacturers. Senior Managers in the training division have strong backgrounds working in industry, often in training roles related to the VET sector.
The Automotive Academy has set validation criteria for materials, trainers, providers and assessors against specific measurable and achievable targets incorporating national vocational quality standards. Training that is assessed as being of national curriculum standard will become 'Academy Validated'.
The Academy is creating a 'skills escalator'. This draws on life long learning principles that training should be a continuing process, not just a one off. The escalator will enable trainees to map out development opportunities and plan career paths.
Valuing Team Leaders
During the industry forum 84% of the audience identified that a vocationally qualified team leader would add more value to business than a recently qualified graduate. In response to this the Automotive Academy implemented a Team Leader Award, incorporating a National Vocational Qualification Level 3 in Business Improvement Techniques that is delivered by vocational colleges. Other examples of their course offerings include ISO/TS16949:2002 training, lean management, product liability, process improvement and Japanese best practice training.
Business Executive Support
The Business Executive Support Programme for motor industry managers is a free distance learning programme, designed to refresh knowledge of business essentials, support personal development and help participating companies stay competitive, sustainable and profitable.
The programme has three phases. The first phase contains six refresher modules, which can be undertaken at home or in the office, of approximately half an hour duration. The modules – Planning in Business, Leadership, Motivation, Principles of Marketing, Sales Essentials and Customer Service – give the manager a condensed, easy to follow guide to the 10 most important things you need to know about for each topic. One module is delivered each month.
The second phase is made up of self-selected topics taken from a menu of Academy courses covering workplace organisation, statutory regulations, continuous improvement techniques and problem solving. The final 'Business Engine' phase is a forum for like-minded executives to discuss best practice and learn from a range of seminars and workshops.
Re-employment Training
Alongside existing worker training the Automotive Academy has a Re-employment Training Program, aimed at those made redundant by car manufacturers and their supply chain. Funded by the Learning and Skills Council programmes are free to eligible candidates.
Upskilling for training providers
Industry has identified that some trainers do not have current industry skills and knowledge. To address this the Academy is upgrading the capacity and capability of training providers as one of its priority programmes and by the end of 2005 over 300 trainers and assessors will have been through the Academy's up-skilling packages.
Success
One local toolmaker, W H Smith and Sons, had staff undertake the Business Improvement techniques training and has seen vast improvements in process that has brought costs down and reduced wastage making the company more profitable overall. Another company has seen a 30% increase in people productivity. Both companies are in a fitter economic state and believe the training intervention has assisted the companies in reaching this positive position.
Further information
The Northwest Automotive Alliance
See also
Skill Ecosystems/Industry Partnerships | A-Z Resources
Skill Ecosystems ICVET Project for TAFE NSW
Partnerships and Entrepreneurship – for other exemplars and papers
