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1
GMR - Skills Development Institute
Presented by: Param Sivalingam
CEO – EPC Division,
GMR Infrastructure Ltd.
10th July, 2012
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Agenda
Background of GMR and its entry into Construction
Genesis of Skill Development Institute
Analysis of Market and Choice of Holmesglen as Technical Partner
Selected Model of Training
Challenges faced
Sustainability of this Model and Way forward
3
GMR Infrastructure has emerged as one of the leading Companies in Indian Infrastructure Space
Creating Tomorrow, Today
Bangalore Headquartered Infrastructure Major with interests in the
Airports, Energy, Highways and Urban Infrastructure
Entry into Infrastructure
1994
200 MW IPP in Chennai
2010
4 Airports
6 Highways / 4 Projects
3 Power Plants / 11 Projects
3 Coal Blocks
Large & diversified infrastructure
player
2013
4 Airports
9 Highways
3 SEZs
6 Power Plants/8 Projects
3 Coal Blocks
Gaining momentum
Largest National Highways Developer (Lane Km) under NHDP, India
* At the end of Mar2012
4,963 MW of Power Projects under Construction
Operation Gross Block: ~USD 9.25 bn*
4th Largest Private Airport Developer in the World
Owner of IPL Cricket Franchise- Delhi Daredevils
Established in 1978
4
While the growth in GMR Projects is tremendous, reliability of outside contractors has been low
Historical risks faced by
GMR owing to execution
through small
contractors
Details
Low reliability of bids
Initial design, value engineering and
estimations are critical for competitive bids
Relying on smaller external sub-contractors
for these critical activities impacted bid
reliability
Low reliability during
execution
Poor or non-existent systems & processes
for project management
Inadequate supply chain
Leveraging GMR to
climb up the value chain
Leveraging GMR experience to emerge as
developers themselves
Effectively, evolving as competition rather
than sub-contractors
To mitigate project execution risks and sustain GMR’s Competitive Advantage, In-house EPC
Division was formed in 2008.
5
During the formation of EPC Division, lack of skilled Labour Force in India was highlighted as a major Challenge
2%
68%
75%
80%
96%
0% 20% 40% 60% 80% 100%
India
UK
Germany
Japan
Korea
% of labor force undergone skills training
Source: Planning commission of India
The current vocational training system in
India is inadequate to meet the demand of
the Industry..
Migratory nature of the semi–skilled /
unskilled labor necessities constant re-
training.
Variations in construction methods /
processes by various contractors lead to
varying degree of quality outcomes
A foremen with a conceptual background to compliment hand-skills was virtually nonexistent in India
6
Due to their critical role, GMR identified supervisors as the key to productivity & quality at sites
Semi-skilled & unskilled labourers
Skilled labourers
Supervisors/foremen
Project Managers
& Engineers
Approach
• Recruited & retained at management
level
• Recruited & retained on GMR’s rolls
• Sourced through labour contractors
- Few key resources on GMR rolls
• Sourced through labour contractors
Supervisors are critical because they are the last-mile link between project managers & laborers
- They drive productivity and quality of delivery on site
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Given the above GMR decided to go for foreign collaboration to establish a high quality Skills Development Institute
Current Shortcomings in Indian Construction
Training Setup Advantage of foreign collaboration
Available skills training Infrastructure in India is
rudimentary
Foreign collaboration gives access to
- World-class skills
- Global best practices in Quality & Productivity
No systematic curricula for master training in
construction trades exist in India
- Training is on-site, done mostly by supervisors
with little formal training
- Worker is unable to adapt to the changes in
Construction Technology and methods
Collaboration with an advanced training
organization will bring
- Access to established master training system
- Best practices to improve productivity & quality
8
Agenda
Background of GMR and its entry into Construction
Genesis of Skill Development Institute
Analysis of Market and Choice of Holmesglen as Technical Partner
Selected Model of Training
Challenges faced
Sustainability of this Model and Way forward
9
Studies show that vocational training in Europe & Australia are the most advanced
Country Quality of
construction
Quality of
construction
training
curriculum
Cost
effectiveness
Communication
effectiveness
Overall fit for
GMR
Germany
UK
Australia
The top 3 countries for construction training are Germany, UK and Australia
Among above three options, Australia appears to be the most suitable destination for
GMR’s immediate training needs
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The possible alternatives for GMR to enhance the quality of its labor force were….
Skills training school
1 • Infrastructure & curriculum comparable to Australian TAFE
• 3-4 year course duration coupled with apprenticeship
Partnership with vocational
training schools
2 • Support infrastructure & curriculum development at existing ITI &
ITCs in relevant geographies
• Create access to sub-contractors to hire trained workmen
Skills up-gradation training
3 • Create/partner for a dedicated skill up-gradation course
• Select workmen with hand-skills to enhance their knowledge & skill
set
Train the Trainer
4 • Advanced training center to generate high quality master trainers
• Master trainers will conduct short-term onsite training in every
project based on need basis
“Train the Trainer” is the most suitable approach for GMR construction, given
the level of investment, scalability and need for focused training
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Skills Development Institute
Skilled master
trainers &
supervisors
Skilled Labour
Force
Quality Productivity Eco System
Development
Development of EPC Industry Social Upliftment
Leap of faith shown by Holmesglen is the Key Success factor to make Skills Development Institute Operational
Technical Training
Partner
Risk mitigation
High quality products
Lower Wastage
Higher Profitability
Skilled Supervisors can
become Labour Contractors
Better Earning Opportunities
for Skilled Labour
Development of
Quality workforce
12
Agenda
Background of GMR and its entry into Construction
Genesis of Skill Development Institute
Analysis of Market and Choice of Holmesglen as Technical Partner
Selected Model of Training
Challenges faced
Sustainability of this Model and Way forward
13
One of the Key drivers for SDI has been the stringent selection criteria adopted for selecting trainees
Only 1 in 40
selected
candidates
are chosen
for Training
by
Holmesglen
14
Care has been taken to ensure that trainees are sourced from across the country
Total – 122
21
15
08
06
15
12
03
13
01
05
02 03
03
12
03
15
Most of the trainees are high school graduate and in the age of 25-35 years
66%
16%
9%
9%
Experience
08 -12 Yrs
13-18 Yrs 19-25 Yrs
26-30 Yrs
34%
53%
13%
Qualification
10+ ITI
10+2+ *ITI
Below 10th
75%
9% 16%
Age
25- 35 Yrs
36- 45 Yrs Above 46 Years
*ITI: Industrial Training Institute: An Indian
Government –run training Organization
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Basic
Computer Skills
(1 Month)
Hands on tradesman
/ foreman/skilled
supervisor/trainer
English Language
(1 Month)
Personality
Development
Training by
Holmesglen
(14 Weeks)
The Holmesglen Training is complemented through various preparatory & personality development courses
Preparatory Course Main Course Deployment
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Training by Holmesglen: The Course Content followed at SDI is similar to the Course offered in Australia
Owing to the rich prior experience of the Tradesmen, the courses conducted so far
were at a level much higher than earlier anticipated.
Structural Trades
Different type of Formworks and Scaffolding
Measurement & Calculations
Hand And Power Tools
System Formwork components and its uses
Reading And Interpreting Plans
Carry out Basic Setting
Steel Fixing/ Reinforcement Schedule
Concreting
Knowledge about construction material
Finishing Trades
Measurement & Calculations
Levelling
Brick/Block Work
Plastering Work
Tile–Laying
False-ceiling & Partition Works
Painting Work
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Structural Trades Training at SDI
Dressing
Timber with
Hand Plane
and Practical
Handsaw Use
Carpentry
hand-Tools
and Timber
Works
Column
Framework
and Soffit
Slab with
Column and
Beam
19
Structural Trades Training at SDI
Concrete
Finishing and
Precast-Tilt
Panel
Construction
Column and
Wall
Formwork
Reinforcement
Cutting and
Setout
Leveling
20
Finishing Trades Training at SDI
Bricklaying
Solid and
Gypsum
Plastering
Tile Cutting
and Laying
21
The Graduate Foremen are rated on multiple parameters to give a comprehensive view of their ability
Technical
Proficiency
50%- 59% - 6
60%- 69% - 18
70%-79% - 25
80%-89% - 33
Above 90% - 06
Ability to
Learn
Excellent - 25
Good - 55
Satisfactory - 8
Verbal
Expression
Excellent - 13
Good - 48
Satisfactory-27
Understanding
Teaching
Excellent - 18
Good - 63
Satisfactory-07
Teaching
Skills
Excellent - 17
Good - 59
Satisfactory-12
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Post training, Foremen are deployed on project sites
122 Graduated Foremen are currently deployed
on various Project Sites of EPC Division.
The feedback clearly indicates that the foremen
produced are of the highest quality.
The foremen are effecting a great deal of savings
on cost while ensuring high and uniform quality
control.
Each foreman is capable of training up to 30
unskilled / semi-skilled labors on site.
So far there has been zero attrition.
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Agenda
Background of GMR and its entry into Construction
Genesis of Skill Development Institute
Analysis of Market and Choice of Holmesglen as Technical Partner
Selected Model of Training
Challenges faced
Sustainability of this Model and Way forward
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Challenges faced: SDI Implementation
Curriculum finalization and training package:
Training modalities and Curriculum got revised few
times to suit Indian Construction Industry needs
Visa Issues: Without a recognized educational
qualification and language skill, selected master
trainers couldn’t meet Australian Visa permit
criteria. As a result, we had to rework our entire
training program
Recruitment of candidates as Master Trainee: It
took almost one year to select right candidates as
Master trainees, who have academic qualification
as well as Hands-on experience
Buy-in from Internal Stakeholders: Being a
totally new concept, different from traditional On-
site training, it took some time for our Staff to
understand the benefit out of it.
Integration of Master Trainers at Site
Continuity of training to unskilled migrant
workers at site
Retention of Master Trainer
Current Challenge
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Agenda
Background of GMR and its entry into Construction
Genesis of Skill Development Institute
Analysis of Market and Choice of Holmesglen as Technical Partner
Selected Model of Training
Challenges faced
Sustainability of this Model and Way forward
26
GMR has adopted a comprehensive Retention Strategy to retain the Foremen
Bond for five years
Diploma and Degree Certification by IGNOU facilitated through GMR
Varalakshmi Community College
Top performing trainers and supervisors to be developed to become sub-
contractors.
Building Loyalty through regular feedback
Job satisfaction - delegation of authority and independence in
discharging their duties
27
Over a period of time, we expect the SDI to emerge as a Source of Competitive Advantage for GMR
Better employability
Better wages
Improved Social
Status
Improved Quality
Better Productivity
Inclusive Growth
Social Harmony
Society
Employer
Individual
Sustainable
Competitive
Advantage
for GMR
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Going forward, introducing Apprenticeship training program under supervisors will help this model to become self sufficient
Migratory nature of unskilled workers necessesities constant training program, which can be
addressed through Introduction of Apprenticeship Program
A Certified Apprenticeship Program, complemented by On-Job training under supervision of Master
trainer can Unlock the skilled labor export potential of India.
Indian Construction
Market
Project
Manager
Engineer
Semi-skilled & Unskilled
Laborers
Supervisors/Foremen
Certification
from
Government
Accredited
Institute
Middle East Market
Singapore
Apprenticeship Program Certification Potential Market
Apprentices
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India: Land of World’s Largest Young Population
Currently 50% of India’s Population is under 25 years
Training program and certification from International institute(TAFE), supported by industry(GMR) can
transform the demographic into industry-ready professionals.
We can leverage Indian Demographic factor to achieve optimum from this model
22.2
17.0
13.9
10.2
6.9
4.3
2.1
0.6
22.9
25.6
21.3
17.3
13.3
9.4
6.3
4.2
1.8
0.8
0-9
10-19
20-29
30-39
40-49
50-59
60-69
70-79
80+
1991 Age 2001 2011 2021 19.6
18.7
19.5
14.4
11.6
8.2
5.0
2.4
0.8
15.8
17.1
17.0
15.7
12.6
10.1
6.9
3.5
1.3
By 2020, Average Age of Indian will be 29 Years
Source: United Nations Government Census;
Huge Potential Training and Certification from TAFE
By adopting the partnership approach of Industry-Institution, We can bring prosperity to
grass-root communities
Thank you