GMR - Skills Development Institute - Australia India …. Param Sivalingam - GMR... · 3 GMR Infrastructure has emerged as one of the leading Companies in Indian Infrastructure Space

1

GMR - Skills Development Institute

Presented by: Param Sivalingam

CEO – EPC Division,

GMR Infrastructure Ltd.

10th July, 2012

2

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

7

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





Challenges faced


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

10

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

11

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





Challenges faced


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





Challenges faced


24

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





Challenges faced


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

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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

Documents

GMR - Skills Development Institute - Australia India …. Param Sivalingam - GMR... · 3 GMR Infrastructure has emerged as one of the leading Companies in Indian Infrastructure Space