Automotive Supplier Park 30 Helium Road Rosslyn X2, South Africa Private Bag X36 0200 Rosslyn Tel: +27 (12) 564 5300 Fax: +27 (12) 564 5301 E-mail: aidc@aidc.co.za Reg. Nr. 2000/028678/07 Project Charter: Ford T6 Training Project Developed by: Ford and AIDC Project Team Date: 01st April 2011 Revision: 1 Page 1 of 10 Project Charter Partners FMCSA & AIDC Project Name Document Rev and Date Ford T6 Training Project 01 April 2011 Rev. 01 FMCSA AIDC Project Sponsor Mr. Trevor Kock Mr. Barlow Manilal Project Owner Mr. Charles Kemp Mr. Liyanda Handula Mr. Themba Buthelezi Mr. Niki Nkuna Project Manager 1. Milestones and Target Completion Dates 2. 3. 4. Ford T6 Training Project Project Concept Formulation Initial discussions with FMCSA & AIDC Discussions and agreement with DED regarding the funding requirement and institutional arrangements - 28 August 2009 (Letter from MEC) Concept document drafted and signed-of Project Set-up and Initiation Start date: September 2009 End date: October 2009 Finalization of Funding Agreements Finalization of Non-Disclosure Agreement Approval of project charter Project Planning (2011/12) Financial Year Project Continuation form September 2009 until Nov 2012 Start date: April 2011 End date: May 2011 Project Planning: Resources, infrastructure and deployment planning Approval of Project Charter and Plan Approval of expenditure plan Project Execution: Start date: May 2011 End date: Mar 2012 01 April 2011 Page |2 Management of daily project activities on time, within scope and within budget according to sound project management principles Reporting on training and recruitment statistics in accordance to GPG/DED/BIQ/AIDC required formats Evidence to be provided for all training and recruitment to be filed as evidence in accordance to PFMA requirements Adherence to prescribed government supply chain policies and procedures Adherence to all PFMA regulatory requirements Sourcing of service providers for training and procurement of training interventions (3 Quote principle to be applied) Sourcing of service providers for training equipment and purchasing of aforementioned equipment (3 Quote principles to be applied) Training and up-skilling of current FMCSA staf in preparation of the T6 vehicle introduction, this includes training which takes place outside of South Africa Recruitment of staf in preparation of the T6 vehicle introduction and manufacturing Compilation of risk register to identify risks to the project and develop action plans to mitigate risks Tracking and tagging of all training equipment procured (All training equipment are owned by the AIDC) 5. Project Closure Reports Yearly: 1st Year- March 2010 2nd Year- March 2011 Final Report- March 2012 Project Post-mortem Drafting of lessons learnt document Project Background In the State of the Province Addressed by, Premier Nomvula Mokonyane highlighted the overarching priority for the Department of Economic Development, which is the creation of decent work through inclusive economic growth. This is one of the five priorities of the Gauteng Provincial Government (GPG). In order for the department to contribute to achievement of decent work through inclusive, labour absorbing growth, and sustainable economic development, a two-pronged strategy has been devised. The strategy includes Ford T6 Training Project 01 April 2011 Page |3 immediate measures by government to address structural unemployment and the impact of the recession. Despite consistently high levels of economic growth over the last 15 years, unemployment never dropped below 22 percent. This suggests structural unemployment and more emphasis on Skills Development. The recession has aggravated unemployment which had increased to 25,2 percent in the third quarter of 2009 according to the Labour Force Survey. The Automotive Industry Development Centre (AIDC), in its capacity as a developmental agency focuses on rolling out socio-economic programmes in support of provincial as well as national growth and development priorities. One of these priorities is driving socio-economic development through skills development and training and promoting sustainable growth and development through the innovative creation of employment opportunities. The AIDC, in support of Gauteng's Employment Growth and Development Strategy, has identified a support measure against the heavy impact of the recession in the form of a Recruiting, Training and Re-skilling current employees to ensure readiness for introduction of the new T6 vehicle to be manufactured in the FCMSA production facility. This is an endeavour that can alleviate poverty, improve the standard of living and change the lives of many South Africans. The AIDC, through Blue-IQ and the Gauteng Department of Economic Development, has committed R 32 million to executing this project. The project will be rollout for 3 years commencing in 2009. Project Goal The AIDC to assist FMCSA with the training and recruitment as well as re-skilling of current employees to ensure readiness for the production of the new Ford T6 vehicle to be manufactured in the FMCSA production facility in Silverton, Pretoria. Objectives Deliverables 1. Retrain current employees on T6 production requirements Ford T6 Training Project FMSCA to identify training requirements FMCSA to identify relevant service providers FMCSA to select training service providers AIDC to assist FMCSA to ensure that all PFMA requirements are adhered to: o Service provider selection - 3 Quote principle o Supply Chain policies and procedures are followed AIDC to assist FMCSA to ensure that all BIQ/DED reporting requirements are met: 01 April 2011 Page |4 Monthly and quarterly reporting Evidence files to be maintained as proof of all training done AIDC to ensure that all BIQ/DED reporting requirements are met o o 2. Employ relevant people to support T6 production HR functions by FMSCA AIDC support if required 3. Purchasing of training equipment FMCSA to identify training requirements FMCSA to identify equipment providers AIDC and FMCSA to conform to supply chain requirements AIDC to agree to service providers AIDC and FMCSA to do Asset tracking 4. Preparation of monthly invoices Conform to supply chain requirements AIDC to audit invoices and supporting claim documentation AIDC to process financials for payment 5. Preparation of monthly reports FMCSA to provide AIDC with; Number and Demographics of trained people Number and Demographics of employed people Phased Approach (Continue from 2009/12) Project Concept Formulation: Start date August 2009 - End date August 2009 Project Set-up and Initiation: Start date September 2009- End date October 2009 Non-disclosure agreements to be concluded Formalize the partnership between AIDC and Ford and conclude contractual arrangements Complete the project charter document and prepare for project planning Project Planning: Start date April 2011- End date May 2011 Project Planning: Resources, infrastructure and implementation planning Project Execution: Start date June 2010- End date November 2012 Project Initiation and Planning Finalise Project Timeline Framework Finalise Project Management Plan (Org Structure, Roles & Responsibilities, Communications Plan & Contact List, Lessons Learnt, Risk Management, RACI Chart) Ford T6 Training Project Sign-of Project Charter and Schedule Sign-of SOW 01 April 2011 Page |5 Automotive Supplier Park 30 Helium Road Rosslyn X2, South Africa Private Bag X36 0200 Rosslyn Tel: +27 (12) 564 5300 Fax: +27 (12) 564 5301 E-mail: aidc@aidc.co.za Reg. Nr. 2000/028678/07 Project Assumptions We made the following assumptions: It is possible to obtain buy-in from stakeholders and forge partnerships to assist in project delivery. It is possible for FMSCA to identify programmes quicker than anticipated in responding to their needs and securing employment opportunities. The Training and recruitment Plan will be developed quicker than anticipated. Our customers will remain interested and satisfied with our services. We will be able to maintain good relationships with all our stakeholders. FMSA will remain consistence about Training and Recruitment targets. Project Partnership: PRIMARY STAKEHOLDERS SECONDARY STAKEHOLDERS FORD MOTOR COMPANY SA BIQ ESDA GDED FET COLLEGES UNIVERSITIES (TUT & UP) SERVICE PROVIDERS (FOR TRAINING EQUIPMENT AND TRAINING ) MERSETA NUMSA CITY OF TSHWANE (COT) NAAMSA RMI SPDC Boundaries The project is targeting Gauteng Province. Project Risks Frequent changes to recruitment and training figures on submitted plans Project behind schedule on both Training and Recruitment due to shift in Launch Plan Accuracy of reporting - Breakdown of the figures in terms of demographics , age grouping and youth Key Stakeholders AIDC Barlow Manilal Project Sponsor (Snr. Management) Liyanda Handula Programme Support (Snr. Project Manager) Niki Nkuna Project Manager Lilian Maswabi HR Support FMCSA Stakeholders Trevor Kok (Snr. Management) Charles Kemp Project Owner (Point of escalation) Themba Buthelezi Project Manager Charles Joseph Subject Matter Expert: Recruitment Roles and Responsibilities AIDC To prepare and finalise the contract and to ensure that the contract is signed by both AIDC and FMCSA Project Planning: - Assist FMCSA to develop detailed plans for the project - Assist FMCSA in the development of a detailed Training and Recruitment Plan - Assist FMCSA with recruitment of candidates for training Ensure procurement adherence to defined PFMA-compliant procedures, eg, develop a compliance checklist agreed upon between AIDC and FMCSA Reconciling all expenses and invoices from FMCSA for reimbursement Tracking and Tagging of all training equipment procured Manage training budget Reporting to project sponsors FMCSA Ford T6 Training Project 01 April 2011 Page |8 Develop Training and Recruitment Plan of the T6 vehicle Sourcing of service providers for training and procurement of training interventions Sourcing of service providers for training equipment and purchasing of aforementioned equipment Recruitment of candidates for training of the T6 vehicle Training and up-skilling of current FMCSA staf in preparation of the T6 vehicle introduction Assist AIDC in Tracking and Tagging of all training equipment procured Critical Success Factors Commitment of trainees to attendance and completing the programme. Availability of accredited service providers that are flexible in course customization for FMCSA. Marketing the project efectively to obtain buy - in of all stakeholders (new recruits) Securing employment opportunities for beneficiaries 2011-2012 Financial Quarter Estimated Expenditure Quarter One R 3,675.500.00 Quarter Two R 7,351.000.00 Quarter Three R 9,675.500.00 Quarter Four R 14,702.000.00 Total Expenditure R 14,702,000.00 Ford T6 Training Project 01 April 2011 Page |9 Project Authority Aspect Project Team Authority Project Scope changes Changes to the project scope are at the discretion of the project team. The Project Manager must seek approval from the Project Sponsor if the requested change is not within project team authority. Product/Service changes The Product Manger must approve scope changes that afect product design. Expenditures Project Sponsor must approve any costs not identified in original scope document. Major Milestone changes Acceptable range of time deviation is +/- one week. The Project Sponsor must review further deviations. . Resource Issues The Project Manager will escalate any resource issues that cannot be solved within the team to the Functional Managers of the resources involved. Legal/Contract FMCSA / AIDC legal team Charter Change Record The team can choose to note critical decisions made regarding the Project Charter as the project progresses. Date Decision and Change Made Approvals: These signatures indicate our agreement to initiating the project defined by this charter and supporting it with resources for the initial project team. Project Sponsor [Mr. Barlow Manilal] Project Owner [Mr. Liyanda Handula] Project Manager [Mr. Niki Nkuna] Note: Add signature lines as neededone for each executive from the departments involved in and contributing to the project, and executives who need to be aware of the project launch and to sign off on the charter content. Your organization may have a strong preference for emails or accompanying memos, but get signatures on the charter itself if possible; an inked signature is still a very powerful thing even in our increasingly digital workplace. Ford T6 Training Project 01 April 2011 P a g e | 10