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PSDC Model:
Application For The SSA Scenario
LETSGA Workshop Singapore30 Jan 2008
BOONLER SOMCHITCEO, PSDC
4
• Population of 27M (2007) – multi-ethnic society
• Peaceful & politically stable• Predictable & pro-business
– Liberal investment policies – Sound intellectual property
protection• Signatories to the Bern & Paris Convention
– Good financial, banking, accounting & legal practices• English widely spoken together with Bahasa Malaysia,
Chinese & Indian dialects
MalaysiaPenang
Indonesia
Phillipines
Singapore
MALAYSIAMALAYSIA
MalaysiaPenang
Indonesia
ThailandPhillipines
Southeast Asia
Singapore
5
• Gateway to northern Malaysia• Population of 1.5M • Manufacturing &
tourism leadingeconomic growth
• 2nd smallest State, but one of the most progressive!
• 2nd largest InternationalAirport in the Country
• 3rd largest seaport in the CountryPenang’s Vibrant EconomyPenangPenang’’ss Vibrant EconomyVibrant Economy
• GDP growth – 6.7% (2005)• Full employment • Mfg. sector contribution to
GDP – 43% • Mfg. growth – 6.5% (2005)
G’town
B’worthFerry
KEDAH
PERAK
Kulim
Bayan Lepas Free Industrial Zone& Penang Cybercity
PenangBridge
Penang’s 2nd Bridge
PENANGPENANG
Industrial Parks
PENANGPENANG
6
Changing Structure of the Penang Economy
5.8%61.8%
19.7%
12.7%
2.4%
1.7%
42.9%
53.1%
1970 2005
Agriculture, Mining & FisheriesManufacturingConstructionTrade and Services
8
1987Manpower shortage
highlighted
1989
Steering Committee
“This (PSDC) is
a good e.g. of
Malaysia Inc.
concept at work”
Tun Dr. MahathirMohamad
Former Prime
Minister of
Malaysia1994
PSDC Model (1989)
Government
AcademiaIndustry
Malaysia IncMalaysia Inc
10
RECOGNITIONApprovalLicence
INFRASTRUCTUREFacilitiesBuilding
INCENTIVES• Training Support (HRDF)• Double deduction Incentive• Tax exemption
CAPITAL GRANTSet Up Grant
1989 - 1991 - US$15.8k/year1992 - 1999 - US$31.6k/year
Equipment Grant6 Malaysian Plan - US$1.5M7 Malaysian Plan - US$2.2M8 Malaysian Plan - US$4.2M
Building Grant6 Malaysian Plan - US$240K7 Malaysian Plan - US$430K8 Malaysian Plan - US$3.0M
Government’s Role
11
LEADERSHIPNew Concepts / IdeasProcesses & Systems
SHARINGResources / ExpertiseTechnologyTrainers
SUPPORTCritical numbersLeverageFees
MANAGEMENT/OWNERSHIP
Set up labsUpgrade programs /facilitiesTraining Needs
Industry’s Role
12
TRAINING RESOURCE
LecturersTrainersContent ExpertsAcademic Advisors
PROGRAM DEVELOPMENT
Training MaterialsTrain The Trainer
Academia’s Role
13
PSDC Today
• Skills Training and Education Centre
• Established in May 1989
• Tri-partied (Industry, Govt & Academia)
• Non-Profit Society (Since 16.11.1989)
• 142 Members (Malaysian Inc Companies)
• Trained more than 100,000 participants
• Facilities: 230,000 sq. ft.
• Financially self-sustaining
• Part capital grant from Federal Govt.
Area: 5,000 sq ftFacilities: 3Members: 24Participants: 559Courses: 32Headcount: 2
1989
27,000 sq ft5563,71022410
1994
PSDC Today
Area:Facilities:Members:Participants:Courses:Headcount:Branch Campus:
170,000 sq ft35 10110,9915805620,000 sq ft
2004 2007
230,000 sq ft52 142> 10,000> 50080-
PSDC Today
Promote Shared Learning for the Manufacturing and Service Industriesto be Globally Competitive by Providing Proactive HRD Initiatives
Mission
Members142
companies
USA 29
Japan 11
Germany 6
Chinese Taipei 4
China (HK) 1
France 1
Canada 1
By Country of Origin
Australia 1UK 2
Netherlands 1
Denmark 1
Singapore 3Malaysia 78
Ireland 1
Switzerland 1
Sweden 1
MembersBy Industry
Institution4%
Education9%
Textile1% Medical
2%
Food2%Packaging
3%
Manufacturing19%
Engineering24%Electronics /
Semiconductor36%
142companies
20
Management Structure
11 ELECTED- 1 Chairman- 1 Deputy Chairman- 2 Vice Chairman- 7 Ordinary Members
4 APPOINTED
MANAGEMENT COUNCIL CHAIRMAN(Bi-Annually)
PSDC STAFF7 EX-OFFICIO- 6 (Govt agencies)- 1 (University)
Industry Govt./Academia
QuarterlyManagement
CouncilMeetings
Yearly
AGMS
1989 1989 -- 19921992
Tan Bian EeCEO,
Agilent
S K KoCEO,
Motorola
19921992--19941994
C.D. FariaCEO,
Grundig
19941994--19951995
Alfred TehCEO,
Eng Tek
1995 1995 -- 19971997
Tan Thiam SengCEO,
Komag
19971997--20012001
Robin SeoMD,
Motorola
20012001--20042004
Mohd SofiMD, AMD
20052005--20082008
22
Establishment Strategic & Business
Development
Working Group
CoE Leadership Six Sigma
EXCO
OperationsSME/LocalIndustry
MANAGEMENT COUNCIL
Management Structure
23
PSDC Today –Business Model
Strategically Supporting and Strengthening Customers' Business Requirements
Human Capacity
HRDServices
Technical
Managers
Engineers
Technicians
Operators
Technology
TRAINING PROGRAMS
ProductsShort term (Skills Upgrading)Long term (Career Advancement)
Design &Development
Non-Technical
Others
Human ResourceDevelopment
Business Coaching Manufacturing / Production
PSDC Management
Pre-employmentTrainees
ProactiveHRDInitiative
SharedLearningINDUSTRY
PARTNERSHIPS
24
Requirements
AcademiaHardware &Software VendorsHRD Consultants Government
SME Business Coaching
InternalTraining
OutsourcingSharedLearning
CoreCompetencies
Business
TrainingNeeds
MeetHRD
Requirements
GlobalSupplyChain
Resource& Program
Pool
PSDCOne-StopHRD Entity
Resourcesand Programs
In-HouseExpertise
Experts& Programs
Skilled Workforce
HRDServices
TrainingPrograms
Smart Partnership
ProactiveHRD
InitiativesGlobalMarketing
SkillsRequirements
Coaching
PSDC Today –Industry Partnership
Training Throughput (1989-2006)
Participants137,831
Courses 7,122
* 1 June 02 – 31 Dec 03 (19 months)
3276
156231 169 224
356 434 472 458 487766
496 580 455667 541522
9,7909,140
13,396
9,141
10,99116,104
10,476
9,9209,206
10,6468,869
6,255
3,710
2,5712,137
1,121
559
3,799
1
10
100
1,000
10,000
100,00089
/90
90/9
191
/92
92/9
3
93/9
494
/95
95/9
6
96/9
797
/98
98/9
9
99/0
000
/01
01/0
2*
2003
2004
2005
2006
2007
Fiscal Year
Part
icip
ants
26
Training Needs
Managers
Engineers
Supervisors
Technicians
Operators
School Leavers
JOB CATEGORY
Basic MachiningBasic Electronics
Intro to SMTRadio RepairSoldering
Tech. SkillsPneumatics/Hydraulics
Dip. Sup. Mgmt/HRPSDMInteraction ManagementCAD/CAMAutomate MfgBasic Supervisory PSDM
PHASE 1
(1989 – 1990)
PHASE 2
(1991 - 1995)
PHASE 3
(1996 - 2000)
PHASE 4
(2001 - 2005)
HNC/HND EngineeringAdv. Machining
Cert. in E/E (C&G)Basic Automation
Chargeman AOSMTControl TechnologyRF TechnologyMAST DesignRoboticsDip. in Adv. Mftg.
Cert. In Training & Dev.
JIT FMEAPneumaticsVision SystemEmpowerment Mfg/Process Quality/Reliability
Bachelor of EngineeringAdv. Dip. In Network Centered ComputingApprenticeshipPrograms
Total Productive Mgmt Statistical Process ControlQCCHND EngineeringVacuum Tech.Control Technology
DOE TPMTQMTeambuildingDesign of ExperimentASIC DesignVLSI
Ethics ProductivityNegotiation Skills
Master of EngineeringBachelor of IT
Calibration/MetrologyAdv. Technical TrainingTroubleshooting /
Maintenance
ASIC DesignVLSI
Project ManagementTPM
Software SimulationIC DesignDynamic ModellingRF Technology
E-LearningSupply Chain MgmtLeadershipKnowledge Mgmt
27
Value – Added Services• World Class Engineering & Technical Diplomas
• Design & Development Training Programs
• Relevant Corporate Interventions
• SME Training & HRD
• Events Management
• Shared Services
• Rentals
• SME Product & Service Promotion / Exhibition
• HRD & TNA
• Institutional Set-up
• Process Engineering & Improvement
29
• Sustainable Workforce Training Entity to meet the needs of industry.
• Provide skills upgrading for all level of employees
• Provide educational programs for career advancement
• Platform for public-private collaboration in HRD
PSDC Impact
• Pro-Active - Leading Edge• Cost Effective - Lean & Focused• Contemporary & Advanced Technology• High Quality at Competitive Cost• Full Support of Members & Government• High Profile - Good Marketing• Good linkage between Public & Private Sectors• Strategic Alliance - Think Win-Win
Success Factors
• Identification of measurable and achievable objectives
• Identification of committed stakeholders• Ability to secure commitment of stakeholders• Strong government support• Identification of sources of funding for set-up• Identification of sources of income • Identification of relevant training programs• Anticipate and overcome possible challenges
Factors to consider in the African Context
33
Key Learning
1. PSDC Tripartite Model Works
2. Shared Vision for Development
Govt.Must involve all stakeholders Industry
Academia3. Training Institutions Must Innovate or Die
- Disruptive Innovation- Sustainable- Demand Driven
37
Phase 0: Initial set-up
• Co-operation and commitment of industry - industry-led- industry-driven
• Support of local and central governments• Careful selection of key personnel in Management
Council• Clear statement of vision, mission and goals
- needs to be quantifiable • Location within the industrial estate
Lessons Learnt
38
Phase 1: Growth
Lessons Learnt
• Identification of a suitable site with capacity to expand• Maintain support of all parties• Identify value-added courses
- close liaison with industry to determine training needs• Focused 20:80 strategy• Appropriate activities to support training function • Financially self-sufficient