Presentation from the Case Webinar: How do German SME clusters implement apprenticeships? This webinar focuses on the approach German companies take to implement a dual training system as a cluster. It also discusses the transferability of these methods in the context of initiatives such as 'Make in India' and 'Skill India'. Using the case study method, iMOVE experts shall work with the participants to create a live example of this process. Participants get an opportunity to engage, exchange ideas and also collaborate with iMOVE experts on implementing some of these concepts in their national/regional contexts. For more details visit : https://goo.gl/5Jo9Sk To stay updated : Follow www.twitter.com/BIBB_de Like YouTube channel www.youtube.com/iMOVE Germany

1. iMOVE Case Webinar
How German SMEs approach Apprenticeships?
April 11, 2018 ; 09.00 – 10.00 CET
Resource Persons : Pooja Gianchandani, International TVET Consultant
Jürgen Maennicke , Senior Consultant
Arunachalam Karthikeyan, Head of iMOVE Office in India

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Case Study : SMEs of Automobile K - Cluster
K – Cluster is a group of German SMEs operating near Stuttgart for over a decade. They are
suppliers of auto ancillary parts for passenger vehicles. Each Company is an industry leader in the
providing products such as ABS systems, spark plugs, blades, fans or AC systems, circuits and other
auto parts. Many companies part of this district have also diversified into manufacturing
accessories such as stereo sets, navigation systems, seat covers etc. Over the last few years,
increasing raw material costs, greater technological innovation and competition from other
markets in Asia has challenged this Cluster.
One of the main areas that this district struggles with is the supply of workers trained in its
technology. The Cluster observed that most school leavers aspired for a white collared job, near
the big city with the OEMs. Despite healthy order books, certified processes and the technological
advantage; the SMEs struggled to remain productive. The Regional Chamber advised this group
on how to attract young talent by offering apprenticeships under the dual VET system. The
Regional Chamber also supported them in identifying trainees.

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Main challenges for SMEs & motivation for approaching Apprenticeships
"I want to save job familiarisation
and retraining costs."
• Obtain certification to provide
training
• Offer training place(s)
• Asses applications of trainees
• Select young person for VET
"I have a social responsibility
to offer training."
"I want to
provide training."
Seek and find a trainee
"I want employees who can competently fulfil
the tasks and duties needed in my company,
both now and in the future."
"I want the productive and
innovative contribution of
trainees."
"I want workers to be loyal to my
company."
Source: GOVET Presentations

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SMEs aligned apprenticeships to dual principles of Vocational Training
70% of VET
in company
30% of VET
in vocational
school
In-company training
• Legal basis:
training contract
• Company pays trainee a
"training allowance"
• Company provides
systematic training under
real-life working conditions
(in-company trainer, up-to-
date equipment, etc.)
Vocational school
education
• Legal basis: compulsory
education law
• Local government finances public
vocational schools (facilities,
teachers, etc.)
• Vocational schools offer lessons
in vocational (2/3) and general
education (1/3) subjects free of
charge
Approx. duration of Dual VET: 2 – 3.5 years
Source: GOVET Presentations

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SMEs met the following conditions to be approved
for Training by Regional Chamber
Conditions for being approved as a training company
» The company must be able to offer training as per the Occupation
Standard
» Facilities (offices, workshops, sanitary facilities and conditions,
production and services spectrum, production and work procedures)
» Trainers (professional and pedagogical qualification)
=> At least one person must have a training of trainer certificate
» Adequate ratio of workers to apprentices

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SMEs coordinated the Learning Locations

7. iMOVE. Training – Made in Germany Copyright : iMOVE Germany
SMEs coordinated the Learning Locations

8. iMOVE. Training – Made in Germany Copyright : iMOVE Germany
SMEs coordinated the Learning Locations

9. iMOVE. Training – Made in Germany Copyright : iMOVE Germany
SMEs coordinated the Learning Locations

10. iMOVE. Training – Made in Germany Copyright : iMOVE Germany
The Chamber, as the competent body under the Vocational
Training Act, delivered the following services to the Company:
» Accreditation and reviewing of training companies,
» Registration of apprenticeship contracts
» Maintaining the register of training contracts, enter, amend and delete training contracts
» Set up & manage the inter-company training centres
» Training of in-company Trainers
» Conducting examinations and issuing certificates
» Verifying the aptitude of training staff
» Advising of instructors and trainees
» Advising firms on all initial vocational training issues via training advisors
» Monitoring execution of training
» Establishing vocational training committees

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What are some lessons for
SMEs in other countries?
Example : India

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Source:

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Automobile Industry in India : SMEs are the backbone
Indian automotive sector would
continue to hire at a rate of 2
percent to 2.5 percent YoY
against a historical growth rate
of 3 percent to 3.5 percent to
reach 14.3 million in 2022. And
60 percent to 65 percent of the
jobs in 2022 would require new
skill sets. (Source :
www.autocarpo.in)
Source: McKinsey & Company

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Lessons for SME Clusters : Adapting not Adopting!
» Principle of Duality : Training at two learning locations Vocational School &
Company
» In-Company Training : The premise of the dual system is that the training is
conducted on site / in real work environment as per the agreed training standards
» Occupational Standards : approx. 300 Occupations cover all professions for the
worlds 4th strongest economy, developed in a comprehensive manner over a period
of 18 – 24 months
» SMEs supported end to end by Chambers : All Companies must register with
Chambers (SSCs/Sector Organisations) but not all Companies can offer training
» Apprentices treated as Employees : Salary agreed through collective bargaining,
Trade Unions organise youth councils

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Lessons for SME Clusters : Adapting not Adopting!
» Awareness : MSMEs and MSME Clusters to be taught how to organise
apprenticeships as per their needs
» Cluster Managers : Training of cluster managers to coordinate with various
stakeholders and make use of the support systems available through MSDE and
its various Institutions.
» Support the clusters in creating need based curricula, implement training,
assessment / examination and certification as per NCVT
» Teachers and Trainers : Creation of experienced teachers in Vocational Schools
and In-company Trainers within MSMEs / MSME Clusters
» Recognition : Approval of curricula from NCVT

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Facts and Figures
» BIBB VET Report 2014
» Statistisches Bundesamt
» BMBF Analyses and Statistics
Standards
» BIBB Brochure: Vocational Training
Regulations and the process behind
them
» Example: trainig regulation and
framework curriculum for
Mechatronics Fitter
Laws
» Vocational Training Act
WEB Resources
» www.govet.international
» www.bmbf.de
» www.bibb.de
Dual VET Presentation
» GOVET Standardpräsentationen
Contact details for further questions
» govet@govet.international
Further sources

17. iMOVE. Training – Made in Germany Copyright : iMOVE Germany
Contact
Arunachalam Karthikeyan
Head of iMOVE Office India
imove-india@sequa.de
Hans-Gerhard Reh
Deputy Head of iMOVE
VET Export Advisor Asia, Europe
reh@bibb.de
Twitter: @bibb_de
www.imove-germany.de