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Page 1: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

Automotive Industry Business Case 2016

Page 2: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

1

The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee (IRC) Work Plans and specified in the Australian Industry Skills Committee’s (AISC) National Review Schedule. The Business Case was undertaken by Auto Skills Australia and has been signed off by the IRCs.

The Business Case confirms industry support for the proposed first year training product development items specified in the Work Plans, identifies perceived industry and vocational education and training sector (VET) impacts of the proposed changes, and proposes a cost effective approach for progressing with the technical work in the next stage of the training package development process.

The scope of the Business Case is limited to the validation of the proposed work items. The Business Case was developed using a robust methodology involving consultation with a targeted and representative sample of industry and VET stakeholders that was commensurate with the proposed work items, including their breadth, complexity and potential impact on industry and the VET sector.

The Business Case outcome confirms broad support from stakeholders for the need for, and nature of, the following proposed training product changes to proceed. The details are provided in the appendix.

Proposed work Changes recommended to the training product

A new or revised qualification to reflect the job role of automotive tyre fitting and wheel alignment technicians and meet state-based licensing requirements

Modify the existing Certificate III in Automotive Underbody Technology

Review the units for technical currency and alignment with job roles

A review of the Certificate IV in Automotive Body Repair Technology

Re-structure the qualification core and elective units to meet the job role

Review the units for technical currency and alignment with job role

A new qualification to reflect the job role of automotive vehicle repair estimators

Create a new qualification from new and existing units

New units for safely depowering electrical and hybrid vehicles Create new units

New units for inspecting, monitoring and reporting on the condition of OTR (Off-The-Road) tyres

Create new units

New units or modify existing units for multi-combination heavy commercial vehicle braking system compatibility

Modify existing units and possible new unit

New skill sets for preparing automotive mechanical technicians to work in the bicycle retail, service and repair sector

Create new skill set

New units for safely working with marine fuel systems Create new units

New skill sets for preparing automotive mechanical technicians to work in in the marine retail, service and repair sector

Create new skill set

A review of the Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

Re-structure the qualification core and elective units to meet the job role

Review the units for technical currency and alignment with the job role

New units for the service and repair of personal mobility devices (for example, golf carts and electric wheel chairs)

Create new units

Revised unit - AURETU005 Retrofit and modify air conditioning and HVAC systems

Revise unit

Page 3: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

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The automotive manufacturing sector is contracting with the exit of light vehicle manufacturers while the much larger automotive retail, service and repair sector is growing due to the increasing number of vehicles on Australian roads. The Australian motor vehicle market is one of the most competitive in the world. While Australians have a greater level of automotive product choice than most, the challenge for industry is keeping abreast of product and repair technologies and ensuring the adequate supply of suitably trained technicians to repair and service automotive products. The proposed training product changes ensure that training products designed for the automotive industry best meet the industry’s needs.

Risks of not progressing with this training product development work include:

• Unnecessary training product lag behind the needs identified by industry and associated risk of stakeholder disengagement

• Decreased industry relevance and subsequent damage of the training product’s perceived value in industry, locally and overseas

• Reduced VET capability to meet the demand for suitably trained technicians

• Increased cost of future training product development work due to missed opportunity to stay abreast of cumulative technological change

• Increased impacts of training product development due to increased magnitude and complexity of future changes required

VET stakeholders identified that the proposed product changes represent an opportunity for business growth and increased responsiveness to learner and industry needs. Other potential impacts on training providers include additional investment in the professional development of trainers and assessors, training and assessment practices, training and assessment resources and equipment, and scope of registration. To minimise the implementation cost impact on training providers, the proposed approach involves releasing the changes in a single batch.

There are no outstanding issues with stakeholders, including state and territory governments, confirming safe passage for the work to proceed to the technical development phase. This phase will purposefully engage stakeholders in the development and review of detailed specifications of the proposed content to shape the development of the proposed training products. Strong industry interest in engaging in the technical phase has been confirmed with Technical Advisory Groups scoped, and industry representatives keen to be engaged in the practical development work, as is typical for this industry.

The IRC’s proposed approach and estimated timelines ensure maximum return on investment, leveraging established industry and VET relationships and networks.

The IRC looks forward to working with the AISC and Auto Skills Australia to support industry growth through effective training package development.

Page 4: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

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Training Package Code

Training Package Name

Qualification Code

Qualification Name

IRC Name

Review status (Set options)

Change Required (Set options)

AUM Automotive Manufacturing

AUM30213 Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

Automotive Vehicle Manufacturing (Bus, Truck and Trailer) Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

AUR40716 Certificate IV in Automotive Body Repair Technology

Automotive Vehicle Body Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

N/A New or revised qualification to reflect the job role of automotive tyre fitting and wheel alignment technicians and meet state-based licensing requirements

Automotive Mechanical and Specialisation Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

N/A New qualification to reflect the job role of automotive vehicle repair estimators

Automotive Vehicle Body Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

N/A New units for safely depowering electrical and hybrid vehicles

Automotive Electrical Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

N/A New units for inspecting, monitoring and reporting on the condition of OTR (Off-The-Road) tyres

Automotive Mechanical Heavy Vehicle Sector IRC

Completed Change, costs of change are less than the benefits of change

ATTACHMENT ASchedule of Review of Training Products – 2016/2017 Auto Skills Australia

Page 5: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

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Training Package Code

Training Package Name

Qualification Code

Qualification Name

IRC Name

Review status (Set options)

Change Required (Set options)

AUR Automotive Industry Retail Service and Repair

N/A New units, or modify existing units, for multi-combination heavy commercial vehicle braking system compatibility

Automotive Mechanical Heavy Vehicle Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

N/A New skill set for preparing automotive mechanical technicians to work in the bicycle retail, service and repair sector

Bicycle Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

N/A New units for safely working with marine fuel systems

Marine Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

N/A New skill set for preparing automotive mechanical technicians to work in in the marine retail, service and repair sector

Marine Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

N/A New units for the service and repair of personal mobility devices (e.g. golf carts, electric wheel chairs)

Automotive Electrical Sector IRC

Completed Change, costs of change are less than the benefits of change

AUR Automotive Industry Retail Service and Repair

N/A Revise unit - AURETU005 Retrofit and modify air conditioning and HVAC systems

Automotive Electrical Sector IRC

Completed Change, costs of change are less than the benefits of change

Notes:1. Fields with X will be drawn from the National Schedule and be provided by the Department. 2. The Review status field will be completed for each training product scheduled in that year. This will be a drop down list from which one of the

following options can be chosen: 2.1. Completed2.2. Included in another business case2.3. No, postponed review

3. The Change Required field will be completed for each training product scheduled in that year that are considered as part of the business case. This will be a drop down list from which one of the following options can be chosen: 3.1. No change, to be scheduled for review in four years3.2. No change, to be scheduled for review in less than four years3.3. No change, costs of change are greater than the benefits of change3.4. Change, likely to be recommended for removal from the national training system 3.5. Change, costs of change are less than the benefits of change

4. Proposed new training products should added to this table. SSOs should provide a brief description under the Qualification Name column, and the name of the relevant IRC under the IRC Name column.

Page 6: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

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Administrative information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Name of IRCs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Name of SSO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Qualifications, skill sets and/or units of competency examined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Additional direction given by the AISC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Methodology of the Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Information about the industry stakeholders consulted and how the consultation took place . . . . . . . . . . . . 8

Industry stakeholder consultation responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Confirmation of consultation with the states and territories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Description of how industry use the relevant training products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Overview of the issues and proposed changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Estimated impacts of proposed changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

VET sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Interdependencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Outstanding issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Proposed approach and estimated timeframes for undertaking development work . . . . . . . . . . . . . . . . . . . . . . . . . 22

Proposed approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

Proposed timeframes for development work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

Proposed timeframes for product release . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

APPENDICES

Page 7: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

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Name of IRCs

There are eleven Automotive Industry Reference Committees (IRCs).

The seven IRCs relevant to the proposed work items presented in this Business Case are:

• Bicycle Sector IRC

• Marine Sector IRC

• Automotive Electrical Sector IRC

• Automotive Mechanical and Specialisation Sector IRC

• Automotive Mechanical Heavy Vehicle Sector IRC

• Automotive Vehicle Body Sector IRC

• Automotive Vehicle Manufacturing (Bus, Truck and Trailer) Sector IRC

• The other four IRCs are:

• Automotive National Training Advisory IRC

• Automotive Vehicle Manufacturing (Passenger Vehicle) Sector IRC

• Automotive Sales, Parts, Administration and Management Sector IRC

• Outdoor Power and Equipment Sector IRC

Name of SSO

The interim SSO for the Australian Automotive Industry is Auto Skills Australia.

Qualifications, skill sets and/or units of competency examined

The following twelve items of Training Package development work from the Automotive IRC Work Plans were considered.

• Two existing qualifications to determine stakeholder support for their current structures

- AUM30213 Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

- AUR40716 Certificate IV in Automotive Body Repair Technology

• Ten individual items of work to determine the requirements for new training package components

- A new or revised qualification to reflect the job role of automotive tyre fitting and wheel alignment technicians and meet state-based licensing requirements

- A new qualification to reflect the job role of automotive vehicle repair estimators

- New units of competency for safely depowering electrical and hybrid vehicles for first responders

- New units of competency for inspecting, monitoring and reporting on the condition of OTR (Off-The-Road) tyres

- New units of competency for multi-combination heavy commercial vehicle braking system compatibility

- New skill set for preparing automotive mechanical technicians to work in the bicycle retail, service and repair sector

- New units of competency for safely working with marine fuel systems

- New skill set for preparing automotive mechanical technicians to work in in the marine retail, service and repair sector

- New units of competency for the service and repair of personal mobility devices (for example, golf carts, electric wheel chairs)

Additional direction given by the AISC

Revision of AURETU005 Retrofit and modify air conditioning and HVAC systems, at the request of the Australian Department of Education and Training, to ensure consistency with industry regulation.

ADMINISTRATIVE INFORMATION

Page 8: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

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Overview

This Business Case is based on data collected through a robust methodology targeting key stakeholder groups in the Australian automotive industry and the VET sector. The data was analysed and summarised, and then validated by the IRCs.

Key stakeholder groups were identified on the basis of whether they could be affected by the outcomes of the Business Case. The stakeholder groups were categorised as either industry stakeholders who could provide feedback on industry needs and impacts or VET stakeholders who could provide feedback on VET impacts.

A consultation plan identifying the consultation purpose and activities for each key stakeholder group is summarised in the table below.

Stakeholder category

Consultation purpose

Stakeholder groups

Consultation activities

Industry stakeholders

Confirm industry needs and impact

IRC members IRC Forum

Online employer survey

Targeted interviews

Employers Online employer survey and targeted interviews

Other industry stakeholders including:

- Associations and peak bodies

- Unions

- Regulators

Targeted interviews

VET stakeholders Identify VET impact Training providers Online RTO survey

Other VET stakeholders including:

- State Training Authorities

- ITABs

- Regulators

Face to face meetings

METHODOLOGY OF THE REVIEW

Page 9: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

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Information about the industry stakeholders consulted and how the consultation took place

The purpose of the industry consultations was to build on the information collected through the Work Plan development process and confirm industry product development needs, explore product development options and identify industry impacts. Consultation activities included an online employer survey, targeted interviews with employers and other industry stakeholders, and an IRC forum.

The online employer survey was distributed widely via Auto Skills Australia’s database of 733 industry representatives. The survey collected information from employers about the product development options and industry impacts. 77 industry responses were collected and analysed.

Although the online survey was designed to gather feedback from as many relevant employers as possible, the response rate was low when compared with similar surveys administered by Auto Skills Australia in the past. This may be due to the conceptual nature of the research which did not include concrete samples of the draft product for comment.

Targeted face to face and telephone interviews were conducted with employers and other industry stakeholders in each state and territory for each proposed item of training product development work. The interviews added depth to the data collected through the surveys while addressing broader industry issues and concerns.

In the event of disagreements among stakeholders, Auto Skills Australia was prepared to gather the views and arguments and present these to the relevant IRC for members to make decisions based on the operating procedures outlined in the IRCs’ Memorandum of Understanding. However, for this Business Case, there were no disagreements among stakeholders.

Historically, employers in the automotive industry are vocal only when opposing something, otherwise, no response is typically an indication of support. This conclusion is reasonable given that none of the survey and interview responses yielded opposition to the changes and many employers indicated that they wanted to be involved in the development of training product once the technical work commences. This signifies that the Work Plan and the Business Case can move smoothly on to the next phase of training product development.

Page 10: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

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Industry stakeholder consultation responses

The tables below provide a breakdown of the number of individuals who were targeted and who responded to the consultation activities by state and territory, and by proposed training product development item. There is also a list of the industry stakeholders consulted.

The table below summarises the total number of individual industry stakeholders who were engaged and gave input to the Business Case. They include those from the online survey, an IRC forum held in August 2016 and face-to-face interviews conducted by Auto Skills Australia representatives throughout the country. The table shows that roughly 10% of targeted individuals responded to the online survey.

Total industry consultation responses by consultation activity.

Consultation method Responses

Online employer survey 77 out of 733 targeted

IRC face to face forum 44

Targeted interviews 60

Total 181

The table below provides a breakdown of the number of individuals who were engaged through targeted interviews, the online survey and the IRC Forum by state and territory.

Total industry consultation responses by state/territory.

Note: numbers in brackets denote total numbers surveyed.

State/territory Interviews Online survey IRC forum Total

New South Wales/ Australian Capital Territory 6 11 (142) 13 30

Northern Territory 16 2 (17) 1 19

Queensland 8 5 (78) 6 19

South Australia 4 9 (54) 1 14

Tasmania 4 1 (22) 0 5

Victoria 11 19 (279) 18 48

Western Australia 11 25 (106) 4 40

National 0 5 (35) 1 6

Total 60 77 (733) 44 181

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The table below provides a breakdown of total responses by proposed product development item.

Total industry consultation responses by proposed product development item.

Note: interviewees/respondents may have contributed to more than one item.

Proposed product development item Interviews Online Survey

IRC Forum

Total by item

A new or revised qualification to reflect the job role of automotive tyre fitting and wheel alignment technicians and meet state-based licensing requirements

14 3 11 28

A review of the Certificate IV in Automotive Body Repair Technology

10 6 12 28A new qualification to reflect the job role of automotive vehicle repair estimators

New units for safely depowering electrical and hybrid vehicles 6 0 10 16

New units for inspecting, monitoring and reporting on the condition of OTR (Off-The-Road) tyres

18 1 14 33

New units, or modify existing units, for multi-combination heavy commercial vehicle braking system compatibility

8 16 14 38

New skill set for preparing automotive mechanical technicians to work in the bicycle retail, service and repair sector

4 1 1 6

New units for safely working with marine fuel systems

9 4 4 17New skill set for preparing automotive mechanical technicians to work in in the marine retail, service and repair sector

A review of the Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

3 4 3 10

New units for the service and repair of personal mobility devices (for example, golf carts and electric wheel chairs)

3 0 10 13

Revision of AURETU005 Retrofit and modify air conditioning and HVAC systems, to ensure consistency with industry regulation

3 0 0 3

Respondents who had no opinion about the items of work 0 42 0 42

Page 12: Automotive Industry Business Case 2016 · The 2016 Automotive Industry Business Case validates the priorities and directions identified in the Automotive Industry Reference Committee

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The following is a list of automotive industry businesses from which owners and employees gave input to the Business Case.

List of industry representatives consulted

Albany City MotorsAlcoa of AustraliaArtini Crash RepairsAussie Boat CoversAustralian Refrigeration CouncilAutocrash Express RepairsAutomotive Holdings Group (AHG)B&J Catalano Pty LtdBarrie Auto ElectricsBikes to FitBob Jane Corporation Pty LtdBridgestone Earthmover Tyres Pty LtdBridgestone Select HobartBroady MotorsBryant EngineeringBunbury AutomotiveCallaghans Marine ServicesCapital Harley- DavidsonCaterpillarChallengerChannel Auto ElectricsCMI ToyotaCMV Truck SalesCranbourne Body WorksCycle ZoneDefense Maritime ServicesDMS MaritimeEngine Action International Pty LtdETS Fleet ServicesFord Motor CompanyGlynde Auto SparesHaulmark Trailers (Australia)Hino Motor Sales AustraliaHM Gem EnginesHoffy CyclesIan Diffen City Discount TyresI-CAR AustraliaImpact AutomaticsIn & Outboard MarineInsurance Australia Group (IAG)John Edwards AutomotiveKawasaki Motors Pty Limited.Ken Stone Motor TrimmersKerry’s Automotive GroupKomatsu AustraliaLiebherr-AustraliaLonsdale St. Auto ElectricsMarathon TyresMaynes Marine

Mid Coast CouncilMidland Truck and BusNew Age MobilityNoordeman DieselNorthern Territory Fire and& Rescue ServiceNT Mobility EquipmentNT Tyre ServiceO’Brien GlassPACCAR AustraliaPedders Shock Absorber ServiceSuspensionPlaza AutomaticsRods & RelicsS.A. Auto ElectricsSeafood and & Marine Industries Training NTStaetite FastenersThe Valspar Automotive RefinishCorporationTristar Industries Pty LtdTruck Centre WATyrepower LtdWesTracc WAWestruck Commercial RefinishingWilliam Adams

List of other industry stakeholders consulted

Australian Manufacturing Workers’ UnionAustralian Refrigeration CouncilConstruction Mining & Equipment Industry GroupFarm Machinery & Industry Association of WAHeavy Vehicle Industry AustraliaInstitute of Automotive Mechanical EngineersMotor Trade Association of South AustraliaMotor Trade Association of Western AustraliaMotor Traders’ Association of NSWMotor Trades Association of AustraliaMotor Trades Association of QueenslandMotor Trades Association of the ACTMotor Trades Association of the Northern TerritoryTasmanian Automobile Chamber of CommerceVictorian Automotive Chamber of Commerce

Confirmation of consultation with the states and territories

The Business Case was provided to the states and territories and their feedback was incorporated before final IRC sign-off. State Training Authorities were also consulted on the IRC Four Year Work Plans and briefed on the items of work arising from the Work Plans in face to face meetings with Auto Skills Australia representatives through the period August to October 2016.

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Description of how industry use the relevant training products

Information about how the training products link to occupations is provided in the following table. There are no direct links with higher education.

Projects Occupations

A new or revised qualification to reflect the job role of automotive tyre fitting and wheel alignment technicians and meet state-based licensing requirements

Motor Mechanic General (ANZSCO 321211)

Tyre Fitter (ANZSCO 899415)

A review of the Certificate IV in Automotive Body Repair Technology

Panelbeater (ANZSCO 324111)

Body Repair Technician

A new qualification to reflect the job role of automotive vehicle repair estimators

Insurance Loss Adjuster (ANZSCO 599612)

Panelbeater (ANZSCO 324111)

Body Repair Technician

New units for safely depowering electrical and hybrid vehicles Automotive Electrician (ANZSCO 321111)

Motor Mechanic General (ANZSCO 321211)

Automotive Electrical Technician

Light Vehicle Mechanical Technician

Service Advisor

New units for inspecting, monitoring and reporting on the condition of OTR (Off-The-Road) tyres

Motor Mechanic General (ANZSCO 321211)

Heavy Vehicle Mechanical Technician

Service Advisor

New units or modify existing units for multi-combination heavy commercial vehicle braking system compatibility

Motor Mechanic General (ANZSCO 321211)

Heavy Vehicle Mechanical Technician

Service Advisor

New skill set for preparing automotive mechanical technicians to work in the bicycle retail, service and repair sector

Bicycle Mechanic General (ANZSCO 899911)

Bicycle Mechanical Technician

New units for safely working with marine fuel systems Motor Mechanic General (ANZSCO 321211)

Mechanic’s Assistant (ANZSCO 899916)

Marine Mechanical Technician

Service Advisor

FINDINGS

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Projects Occupations

New skill set for preparing automotive mechanical technicians to work in in the marine retail, service and repair sector

Mechanic’s Assistant (ANZSCO 899916) Motor Mechanic General (ANZSCO 321211) Marine Mechanical Technician Service Advisor

A review of the Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

Vehicle Body Builder (ANZSCO 324211)

New units for the service and repair of personal mobility devices (for example, golf carts and electric wheel chairs)

Mechanic’s Assistant (ANZSCO 899916) Automotive Electrician (ANZSCO 321111)Automotive Electrical Technician

Revise unit AURETU005 Retrofit and modify air conditioning and HVAC systems

Automotive Electrician (ANZSCO 321111)Automotive Electrical Technician Motor Mechanic General (ANZSCO 321211) Light Vehicle Mechanical Technician Service Advisor

Consultation with industry indicates that the industry preferred mode of training and assessment varies widely and cannot be generalised for all sectors of the industry. Depending on a number of factors (including geographical considerations, types of learners, and types of businesses), the training may be:

• a combination of on the job, off the job (at a training provider) and online

• only on the job

• fully online and on the job

• other combinations to suit particular circumstances.

Learners for the Certificates II and III level qualifications are typically young school leavers who may be entering the workforce for the first time, although the incidence of mature age apprentices is rising. The rate of technological change in the industry has resulted in a need for learners to have a higher level of literacy and numeracy skill than was the case in past decades. Often, however, learners who are attracted or recommended to the industry may have had difficulties at school and may struggle with literacy and numeracy skill demands.

Typically, the Certificate III is expected to take three years to complete to thoroughly learn and apply the underpinning knowledge and skills essential to the trade.

Learners for the Certificate IV qualifications are typically experienced existing workers with an automotive trade qualification.

Workplace learning is strongly supported by industry. It is recognised as the most efficient and effective method of acquiring skills, allowing learners to learn and practice on the job to achieve experience tailored to the specific job context. Strategies employed by industry to support workplace learning include formal buddy systems, informal mentoring by experienced technicians, coaching in correct workplace processes using current technologies, clearly identified task lists and routines and scheduled regular time for workplace learning activities.

The automotive industry is an industry with a mobile workforce that recognises and values pre-trade, trade and post-trade national qualifications. There is a long history of strong industry support for national recognition of qualifications.

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Advice about whether the two reviewed qualifications are suitable to be delivered as a traineeship or an apprenticeship is provided in the following table. The automotive industry traditionally sees Certificate I & II qualifications as suitable for traineeships, and Certificate III qualifications as suitable for apprenticeships, but recognises that post-trade qualifications may also be suitable as traineeships.

Qualifications Delivery

AUM30213 Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

Apprenticeship

AUR40716 Certificate IV in Automotive Body Repair Technology

Traineeship

Overview of the issues and proposed changes

The Business Case process, based on the industry and VET stakeholder consultation, confirmed the opportunities identified in the Work Plans.

A summary of the training product issues, the drivers, the occupational mapping issues and the recommended changes to the training product are summarised in the following table.

While there are no critical timeframes associated with the proposed new product, there is a requirement for the work to be done within the twelve month period due to the pace of technological change associated with the industry, the safety considerations of the items of work and state regulatory requirements.

Consultations with training providers active in the industry confirmed that the training products are typically delivered using a combination of on the job, off the job (in the workplace), off the job (not in a workplace) and online modes.

Proposed work Drivers for change Training product issues

Occupational mapping issues identified

Changes recommended to the training product

A new or revised qualification to reflect the job role of automotive tyre fitting and wheel alignment technicians and meet state-based licensing requirements

Technological changes

Regulatory and/or licensing changes

Workplace health and safety changes

Changed work practices due to OEM requirements

Changed work practices due to business moving into new and/or different markets

Current qualifications do not reflect the job role of people working in this industry

The existing qualification does not match the job role of wheel aligner.

The qualification chosen in NSW to fulfil the licensing requirements of wheel aligners does not reflect the job role as the selection of core units restrict its use

Modify the existing Certificate III in Automotive Underbody Technology

A review of the Certificate IV in Automotive Body Repair Technology

Technological changes

Changed work practices due to OEM requirements

Changes in customer expectations

Changed work practices due to business moving into new and/or different markets

Industry stakeholders have identified a problem with the structure of the current qualification

Industry stakeholders have identified that two units in the core of the qualification should be in the elective bank as the job role has changed from a management role to a higher level technical role

Re-structure the qualification core and elective units to meet the job role

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Proposed work Drivers for change Training product issues

Occupational mapping issues identified

Changes recommended to the training product

A new qualification to reflect the job role of automotive vehicle repair estimators

Technological changes

Changed work practices due to OEM requirements

Changed work practices due to business moving into new and/or different markets

Changes in customer expectations

Changing roles within the industry have created the need for this qualification

No occupational mapping due to there being no existing qualification

Create new qualification

New units for safely depowering electrical and hybrid vehicles

Workplace health and safety changes

Technological changes

Changed work practices due to OEM requirements

Industry stakeholders have identified that there are no existing units for depowering electric and hybrid vehicles

No occupational mapping due to there being no existing units

Create new units

New units for inspecting, monitoring and reporting on the condition of OTR (Off-The-Road) tyres

Workplace health and safety changes

Changed work practices due to business moving into new and/or different markets

Current units of competency do not adequately cover safety, technology and industry requirements

Inappropriate units of competency have been used to train people who perform this role due to a lack of appropriate units

Create new units

New units or modify existing units for multi-combination heavy commercial vehicle braking system compatibility

Workplace health and safety changes

Technological changes

Changed work practices due to OEM requirements

Current units of competency do not adequately cover safety, technology and industry requirements

Recent incidents have highlighted shortfalls of current units as a result of technological changes

Modify existing units and possible new unit

New skill sets for preparing automotive mechanical technicians to work in the bicycle retail, service and repair sector

Skills shortages within the industry sector

No skill sets currently exist

Lack of suitably qualified technicians

No occupational mapping due to there being no existing skill set

Create new skill set

New units for safely working with marine fuel systems

Technological changes

Workplace health and safety changes

Regulatory and/or licensing changes

Changed work practices due to OEM requirements

Current units of competency do not cover the safety and technology that is required for marine fuels systems

Marine technicians are using generic units that go across the automotive industry that do not meet specific marine requirements

Create new units

New skill sets for preparing automotive mechanical technicians to work in in the marine retail, service and repair sector

Skills shortages within the industry sector

No skill sets currently exist

Lack of suitably qualified technicians

No occupational mapping due to there being no existing skill set

Create new skill set

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Proposed work Drivers for change Training product issues

Occupational mapping issues identified

Changes recommended to the training product

A review of the Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

Technological changes

Workplace health and safety changes

Changes in customer expectations

Regulatory and/or licensing changes

Changed work practices due to OEM requirements

The industry is not confident of consistent outcomes as the qualification is not sufficiently robust

The number of compulsory core units may be too small

Re-structure the qualification core and elective units to meet the job role

New units for the service and repair of personal mobility devices (for example, golf carts, electric wheel chairs)

Changed work practices due to business moving into new/different markets due to ageing population

Technological changes

No units of competency currently exist for this work

No standards currently exist for work

Increasing demand for repair and servicing

No occupational mapping due to there being no existing units

Create new units

Revision of AURETU005 Retrofit and modify air conditioning and HVAC systems, to ensure consistency with industry regulation

Regulatory and/or licensing changes

Changed work practices due to OEM requirements

Current unit of competency may not reflect regulatory and licensing requirements of some jurisdictions

Industry stakeholders have identified that explicit reference to changing to hydrocarbon based refrigerants poses a safety issue and is not consistent with state regulations

Review and modify unit

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Industry

Industry identified that the proposed training product changes would:

- Address safety concerns in the changing workplace environment

- Address skills shortages

- Identify skills and knowledge gaps

- Provide training to meet changing customer expectations

- Meet regulatory and licensing requirements

- Better align training to contemporary job roles

It also identified that the changes may result in:

- Increased cost of training to employers and employees

- Increased time employees are away from the workplace being trained

- Increased competition between businesses for the same work

Industry consultation process

The consultation process and list of industry stakeholders consulted in relation to the industry impacts was as per the process included in the methodology previously.

VET sector

Training providers identified that the changes represented opportunities that required investment.

The opportunities include:

- Increased responsiveness to industry

- Increased responsiveness to learner needs

- Increased business opportunities

To realise the opportunities, training providers identified that they would need to increase their investment in:

- Professional development of trainers and assessors

- Training and assessment

- Training resources, equipment and/or infrastructure

- Administration and compliance

- Scope of registration

To minimise the implementation cost impact on the VET sector it is recommended that all proposed training product changes be released in a single batch, unless regulatory or safety risk priorities arise.

VET sector consultation process

The purpose of the VET consultations was to identify the impact of the proposed product changes on the VET sector.

The consultation activities for VET stakeholders included an online training provider survey and targeted interviews with other VET stakeholders.

The online training provider survey was distributed widely via Auto Skills Australia’s database of 565 training provider representatives. The survey collected information about the perceived impact that the proposed product development items would have on individual training providers. 74 training provider responses were collected and analysed. The response rate was comparable to the performance of similar surveys administered by Auto Skills Australia in the past.

Targeted face to face and telephone interviews were conducted with other VET stakeholders in each state and territory, including State Training Authorities. The interviews added depth to the data collected through the survey while addressing broader issues and concerns associated with the perceived impact of the changes.

ESTIMATED IMPACTS OF PROPOSED CHANGES

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The following table summarises the total number of individuals targeted and the total number of individuals who responded and engaged in the consultations by consultation activity.

Consultation method Number targeted Number engaged

Online RTO survey 565 74

Targeted face to face interviews with state training authorities, VET regulators and ITABs

14 14

Total 579 88

The following table provides a breakdown of the number of individuals who were targeted and responded to the consultation activities by state and territory and a list of the VET stakeholders consulted.

Total VET responses by consultation activity by state/territory

State/territory Online survey Targeted interviews Total

New South Wales/Australian Capital Territory 136 3 139

Northern Territory 11 2 13

Queensland 88 2 90

South Australia 60 1 61

Tasmania 22 1 23

Victoria 178 2 180

Western Australia 70 3 73

Total 565 14 579

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List of training provider respondents

Bendigo Kangan InstituteCentral Regional TAFE WAChisholm InstituteCQ University Australia CQU TAFEElevating Work Platform Association of AustraliaFederation University AustraliaFusion Business Solutions Pty LtdThe Gordon Institute of TAFEGoulburn Ovens Institute of TAFE GO TAFEHolmesglen InstituteHyundai Motor CompanyLake Tuggeranong CollegeMTA Group Training SchemeMTA Institute QueenslandNew England College (NSW)North Regional TAFE WAOpen CollegesOtraco InternationalPolytechnic WestRegional Training Services QueenslandldSkill Invest LimitedSouth Metropolitan TAFE WASt. Stanislaus’ College BathurstSunraysia Institute of TAFETAFE Kurri Kurri TAFETAFE NSWTAFE NSW - Western Sydney InstituteTAFE NSW Hunter Institute TAFE (NSW)TAFE Queensland East CoastTAFE Queensland Gold Coast TAFETAFE SATAFE SA (regional campuses)TAFE TasmaniaTasTAFEVantage AutomotiveWestern Australian College of Agriculture - Narrogin WACOA-NArroginWorks Skills Incorporated

List of other VET stakeholders consulted

Australian Skills Quality AuthorityAutomotive Training Board of NSWDepartment of Business, NT - NTDepartment of Education and Training, QLD - QLDDepartment of Education and Training, - VICACT Department of Education, ACTNSW Department of Industry, NSWDepartment of State Development, SA - SAWA Department of Training and Workforce Development, WAIndustry Skills Advisory Council NTSkills TasmaniaTraining Accreditation Council Western AustraliaUtilities, Engineering, Electrical and Automotive Training Council WAVictorian Registration and Qualifications Authority

Interdependencies

The effects of any changes to training package components, including new components, were considered at this stage of the process. At this point no issues have been identified that would require consultation with other IRCs. This will be further analysed during the technical writing stage of the process.

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Risk management

The IRCs apply a systematic approach to the management of risk to assure the quality of the training product development. The following table represents an initial assessment of the risks identified and advice about how these will be addressed.

Category Risk Likelihood Impact Management strategies

Organisational Appointment of new Skills Service Organisation

Medium High Robust and detailed Work Plans and Business Case

Transparent communications with industry stakeholders

Managed handover

Methodology Incorrect identification of key stakeholders

Low High Utilise IRC networks

Utilise extensive Auto Skills Australia stakeholder database

Methodology Lack of industry engagement

Low High Staff and consultants are established and connected in the industry

Adopt flexible approach to engaging stakeholders

Piggyback consultation activities to avoid stakeholder consultation fatigue

Product quality Not meeting industry needs

Low High Experienced technical writers

Robust consultation and validation processes

Adherence to timelines

Not meeting proposed timeframes

Low Medium Assigned project manager with demonstrated project management experience

Robust project methodology and project plans

Regular project meetings to track project progress against milestone targets

Clear statements of staff and consultant responsibilities

Product quality Non-compliant training product

Low Medium Experienced technical writers

Interim quality assurance check and ongoing support for technical writers

VET sector impact

Too high cost of implementation

Low Medium One release of all proposed training product changes

Robust consultation with the VET sector, including training providers and State Training Authorities

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There are no outstanding issues.

OUTSTANDING ISSUES

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The following proposed approach and estimated timeframes are based on Auto Skills Australia’s strong relationship with industry, understanding of the evolution of automotive training products and deep automotive technical knowledge. The process is cost effective and efficient as it leverages established relationships Auto Skills Australia has developed with automotive industry and VET sector stakeholders. If a new Skills Service Organisation is appointed, then the proposed approach may need to be reviewed and timeframes extended.

Proposed approach

The approach for undertaking the development work is proposed as follows:

1. Brief IRCs on the development work to be undertaken. The role of the IRCs will be to provide strategic direction for the project, oversee its conduct and identify suitable industry expertise to assist in the development of the draft training package components.

2. Prepare scoping statement that identifies and establishes Technical Advisory Groups to assist with the development, review and evaluation of the proposed training product changes.

3. Draft training products based on advice received from the IRCs and technical input from the Technical Advisory Groups.

4. Distribute draft product to relevant industry and VET stakeholders for comment and feedback. Provide links to the draft products on Auto Skills Australia website to enable broad feedback and comment.

5. Use the feedback gathered to inform the development of the final draft products.

6. Review final draft products with relevant industry and VET stakeholders.

7. Prepare case for endorsement and complete external quality review.

8. Submit to AISC for endorsement.

A list of proposed work to be done is provided below.

• Develop a new or revised qualification to reflect the job role of automotive tyre fitting and wheel alignment technicians and meet state-based licensing requirements

• Review the AUR40716 Certificate IV in Automotive Body Repair Technology

• Develop a new qualification to reflect the job role of automotive vehicle repair estimators

• Develop up to two new units for safely depowering electrical and hybrid vehicles

• Develop up to two new units for inspecting, monitoring and reporting on the condition of OTR (Off-The-Road) tyres

• Develop up to two new units or modify up to four existing units for multi-combination heavy vehicle braking system compatibility

• Develop a new skill set for preparing automotive mechanical technicians to work in the bicycle retail, service and repair sector

• Develop up to two new units for safely working with marine fuel systems

• Develop a new skill set for preparing automotive mechanical technicians to work in in the marine retail, service and repair sector

• Review the AUM30213 Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

• Develop up to four new units for the service and repair of personal mobility devices (for example, golf carts and electric wheel chairs)

• Revise AURETU005 Retrofit and modify air conditioning and HVAC systems unit of competency

PROPOSED APPROACH AND ESTIMATED TIMEFRAMES FOR UNDERTAKING DEVELOPMENT WORK

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Proposed timeframes for development work

The proposed timeframes are presented in the following table.

Project work item Complexity of work

Estimated timeframe for undertaking the development work

A new or revised qualification to reflect the job role of automotive tyre fitting and wheel alignment technicians and meet state-based licensing requirements

High 12 months

A review of the Certificate IV in Automotive Body Repair Technology High 12 months

A new qualification to reflect the job role of automotive vehicle repair estimators

High 12 months

New units for safely depowering electrical and hybrid vehicles Low 6 months

New units for inspecting, monitoring and reporting on the condition of OTR (Off-The-Road) tyres

High 12 months

New units or modify existing units for multi-combination heavy commercial vehicle braking system compatibility

High 12 months

New skill set for preparing automotive mechanical technicians to work in the bicycle retail, service and repair sector

Low 6 months

New units for safely working with marine fuel systems High 12 months

New skill set for preparing automotive mechanical technicians to work in in the marine retail, service and repair sector

Low 6 months

A review of the Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

Low 6 months

New units for the service and repair of personal mobility devices (for example, golf carts and electric wheel chairs)

High 12 months

Revised unit - AURETU005 Retrofit and modify air conditioning and HVAC systems

Low 6 months

The proposed timeframes are based on an analysis of magnitude and complexity of the changes.

Magnitude of change relates to the training product and is divided into four categories:

• Minor 1 - Changes that are unlikely to require AISC approval and include new and/or revised skill sets using existing training products

• Minor 2 - Changes that are unlikely to require AISC approval and include revised qualifications with no change to the core structure and no new or revised units

• Major 1 - Changes that are likely to require AISC approval and include the development and/or revision of units of competency

• Major 2 - Changes that are likely to require AISC approval and include the development of new qualifications or a change to an existing qualification’s core structure

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Complexity of change relates to the training product development work and is divided into two categories:

• High complexity – Work that is likely to require significant and/or complex consultation and/or is related to job tasks that are highly technical, dangerous or regulated. For example, consulting in sector not previously engaged with the VET sector (e.g. personal mobility devices) or in an area of cutting edge technology (e.g. vehicle body repair)

• Low complexity – Work that is likely to require routine and/or simple consultation and/or technical work. For example, consulting in a sector with a small number of homogeneous employers (e.g. bus, truck and trailer manufacturing) or in an area with existing technology (e.g. preparing mechanics to work in the marine or bicycle sector)

The analysis identified that none of the proposed projects were minor in magnitude. The findings are summarised in the following table.

High complexity New units for safely depowering electrical and hybrid vehicles

New units for the service and repair of personal mobility devices (for example, golf carts and electric wheel chairs)

A new or revised qualification to reflect the job role of automotive tyre fitting and wheel alignment technicians and meet state-based licensing requirements

A review of the Certificate IV in Automotive Body Repair Technology

A new qualification to reflect the job role of automotive vehicle repair estimators

New units for inspecting, monitoring and reporting on the condition of OTR (Off-The-Road) tyres

New units or modify existing units for multi-combination heavy commercial vehicle braking system compatibility

New units for safely working with marine fuel systems

Low complexity New skill set for preparing automotive mechanical technicians to work in the bicycle retail, service and repair sector

New skill set for preparing automotive mechanical technicians to work in in the marine retail, service and repair sector

Revise unit - AURETU005 Retrofit and modify air conditioning and HVAC systems

A review of the Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer

Major 1 magnitude Major 2 magnitude

Proposed timeframes for product release

To minimise the implementation cost impact on the VET sector, it is recommended that all changes be submitted for endorsement in a single batch even though those projects that are estimated to take only 6 months may be completed sooner.

However, it is possible some projects may need to be submitted for endorsement sooner, for example, in response to safety and regulatory priorities.