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    1. 1. Alberta’s PRODUCTIVITY Action Plan Alberta Finance and Enterprise “ Creating Alberta as the Regional Leader in Productivity and Innovation” THE NEED FOR AUTOMATION
    2. 2. Finance and Enterprise Minister’s Mandate <ul><ul><li>Develop and implement policies, initiatives and tools to help Alberta businesses to improve their productivity and global competitiveness </li></ul></ul>
    3. 3. What is Productivity? <ul><li>Working smarter not harder! </li></ul><ul><li>The value of what we create in an economy (GDP) per unit of resources – whether the resources are an hour of labour, an hour of machine time or a barrel of oil </li></ul><ul><li>Labour productivity is defined as: </li></ul><ul><li>GDP per number of hours worked </li></ul><ul><li>Annual change in real output per hour worked </li></ul>
    4. 4. Alberta Labour Productivity Growth Total Economy Labour Productivity Growth Rates 1997 – 2007 (Based on Hours Worked) High overall productivity - yet - Reveals the lowest average growth rate amongst the provinces
    5. 5. Why Is Alberta’s Productivity Lagging? <ul><li>Significant capital investment in the energy sector not yet ‘productive’ </li></ul><ul><li>Worker “tool time” and productivity in major projects is problematic </li></ul><ul><ul><li>Persistent labour challenges </li></ul></ul><ul><ul><li>Pressures on other economic sectors from capital flows to oil sands related projects and competition for labour </li></ul></ul><ul><li>Low investment in new equipment and technology </li></ul><ul><li>slow adoption of new processes </li></ul><ul><li>Lagging workplace training </li></ul>
    6. 6. There’s Something About Productivity <ul><li>Efficiency vs. Effectiveness </li></ul><ul><ul><li>Efficiency = doing things right </li></ul></ul><ul><ul><li>Effectiveness = doing the right things </li></ul></ul><ul><ul><ul><li>Peter Drucker: “One without the other is not worth a damn!” </li></ul></ul></ul><ul><li>Constraints in the Global Economy </li></ul><ul><ul><li>Resources </li></ul></ul><ul><ul><li>Outsourcing </li></ul></ul><ul><ul><li>Supply/Demand Balances </li></ul></ul>
    7. 7. It’s Also About INNOVATION <ul><li>80% of innovation is non-technical </li></ul><ul><li>Must capture multiple forms and sources of innovation to be highly competitive </li></ul>Innovation Engine Market Extension Technology Invention Product Improvement Integration System Solutions Business Models Re-Invent Process Improvement
    8. 8. Our Vision Our Mission “ Alberta is known as the most productive and innovative region in the world” “ Create a globally competitive environment for Albertans to prosper and thrive through collaborative innovation” Purpose “ To establish “Productivity Inc” as Alberta’s umbrella program whose purpose is to take productivity, innovation, and strategic competitiveness to new levels of awareness and application”
    9. 9. Productivity Inc. <ul><li>Connection point for all industry - immediate access to information, tools and programs and assistance in productivity improvement. </li></ul><ul><li>Formation based on drivers of productivity: </li></ul><ul><ul><li>Investment in capital - machinery and equipment </li></ul></ul><ul><ul><li>Technology adoption </li></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Clusters of people and businesses </li></ul></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Skilled workers and capable management </li></ul></ul><ul><ul><li>Business policy and regulatory environment </li></ul></ul><ul><ul><li>Scientific and engineering talent </li></ul></ul><ul><li>Pillars of Action: </li></ul><ul><ul><li>Education and Awareness </li></ul></ul><ul><ul><li>Enhancement Tools, and </li></ul></ul><ul><ul><li>Policies </li></ul></ul>
    10. 10. Productivity Inc. <ul><li>Primary clients include: </li></ul><ul><ul><li>Alberta-based industry (manufacturers, processors, and service providers) </li></ul></ul><ul><ul><li>Institutions, post secondary education centers, government, health organizations, and relevant industry associations </li></ul></ul><ul><ul><li>Community-based economic development agencies </li></ul></ul>
    11. 11. Productivity Alberta Web Portal
    12. 12. Current Activities & Tools <ul><li>Lean Manufacturing Assessments </li></ul><ul><li>Management Capability and Capacity Benchmarking Tool </li></ul><ul><li>Pressure Vessel Competitiveness Benchmarking Study </li></ul><ul><li>Construction Mega Projects </li></ul><ul><li>Automation Seminars </li></ul>
    13. 13. Policy <ul><li>Part of an overall productivity policy framework </li></ul><ul><li>A broad review of policy from a standpoint of conduciveness to productivity growth including undertaking of a competitive gap analysis </li></ul><ul><li>We will review and compare other jurisdictions' productivity and tax policies </li></ul>
    14. 14. Next Steps for 2008 <ul><li>Department will forward Minister's Report (MR) through government's decision making process - Fall </li></ul><ul><li>Begin Building and Connecting Networks - Summer </li></ul><ul><li>Leadership Team in place by August </li></ul><ul><li>Business Plan submitted in October </li></ul><ul><li>Coordinated productivity policy framework </li></ul><ul><li>Launch Productivity Inc in November </li></ul><ul><li>Incorporate productivity into labor force strategy (BETW) </li></ul><ul><li>Developing business productivity toolkit </li></ul>