Management Capabilities and Training Needs in Australia's Small-to-medium Size Manufacturing Enterprises:
an Analysis of Existing Reports and Studies

by Manjit Monga, PhD

Summary

1. Introduction
   1.1 Purpose of the report
   1.2 Scope of the report

2. Method
   2.1 Identification of existing studies

3. Classification of training needs

4. Sources

5. Findings

   5.2 Diffusion of management techniques and the delivery of training
      Drivers of training
      Diffusion and delivery
      Commitment to training

   5.3 Comparison with the needs identified in the submission to DISR

6. Conclusion

   6.2 Implications for Smartlink

7. Appendices

   7.1 Agencies contacted

   Bibliography

   7.2 Opportunities provided by e-commerce to the manufacturers

   Abbreviations

Summary

This report is prepared for Smartlink in fulfilment of requirement of the TDP grant provided by the Department Industry Science Resources to assist in the establishment of Smartlink. It is a result of desk research of existing studies related to the required capabilities and training needs for Australian SME managers in the manufacturing sector.

The following steps were undertaken in the preparation of this report –

• Identification of existing studies
• Development of a classification for training needs
• Analysis of the studies and collation of findings
• Drawing conclusions, including a comparison of the identified priorities with those listed in the Smartlink TDP grant submission.

33 sources were identified which either directly or indirectly addressed the training needs of the target group. They include various surveys and reports commissioned by government departments and other agencies, academic literature and informal Australian sources. Only studies completed after the Karpin report have been included. The sources identified are listed in section 4 with brief summaries of their content.

The management capabilities and training needs are classified into three categories--

• Hard Skills – including functional skills required for manufacturing processes such as total quality management and continuous improvement.

• Issues related to diffusion and delivery of training

From the 33 sources it was possible to identify key management capabilities which are essential to success for manufacturing SMEs:

• Quality management and continuous improvement
• People management
• Needs arising from globalisation
• Networks and alliances
• E-commerce and IT skills
• Need for training to be demand led, flexible, focussed and accessible

The report also indicated that these key capabilities were not adequately developed in Australian manufacturing SMEs and that there was a need for training to be demand led, flexible, focussed and accessible.

The findings of this phase of needs identification confirm the priority needs identified in the submission to DISR on which smartlink is based. In addition implications of and needs arising from globalisation and e-commerce are identified. This report emphasises the need for developing a learning culture in the fast changing global economy. Present study also looks at the methodological requirements of training and diffusion.

While preparing this report various authoritative people in relevant government departments were contacted and the emerging findings were discussed. A list of the organisations contacted can be found in Appendix 1.

Acknowledgements

The author wishes to acknowledge the help and assistance of the many people and organisations who contributed their knowledge and experience to the contents of this paper.

A special thanks is given to the Department of Industry Science and Resources, for funding the Smartlink project, to the staff of the University of South Australia for their assistance and especially for the views and feedback from the manufacturing industry.