Project Plan for establishing an

Upstream Oil & Gas Center of Expertise

This sector-wide initiative calls for cooperation between Oil and Gas companies, service contractors, branch organisations and HBO education institutes.

March 2012

Herbert Lansink www.weops.com

CONTENTS
1 2 SUMMARY INTRODUCTION 2.1 Background 2.2 An Upstream Center of Expertise REVIEW BUSINESS SETTING PARTNER REQUIREMENTS 3.1 Introduction 3.2 Industry 3.2.1 HBO Techniek graduate intake requirements 3.2.2 Overall requirements and objectives 3.2.3 Remarks from specific companies 3.3 HBO Techniek Institutes 3.3.1 Introduction 3.3.2 HBO Techniek graduates: supply and demand 3.3.3 Quality of education 3.3.4 Education program and effectiveness 3.3.5 Organisation of education program 3.3.6 Advantages 3.3.7 Requirements 3.3.8 Existing initiatives 3.4 Nogepa/IRO 3.1 Students 3.2 Government PLAN 11 4.1 Introduction 4.2 Goals 4.3 Education program 4.3.1 General 4.3.3 Teachers 4.4 Innovation 4.5 Organisation 4.5.1 General 4.5.2 People 4.5.3 Organisation form 4.5.4 No physical location 4.6 Marketing 4.7 Online knowledge support system 4.8 Funding 4.8.1 General 4.8.2 First 2 years - Partner funding ATTACHMENTS Examples Education projects between Industry and Education Institutes Development and Yearly Operating Costs 3 5 5 5 6 6 6 6 6 6 7 7 7 7 7 8 8 8 9 10 10 10

11 11 12 12 13 13 13 13 13 14 14 14 14 15 15 15 16 16 17

SUMMARY

This is a proposal for establishing an Upstream Oil and Gas Center of Expertise (UpstreamCE). This sector-wide initiative calls for cooperation between Oil and Gas companies, service contractors, branch organisations and education institutes. Centers of expertise are currently recognised and promoted in The Netherlands as main vehicle for strategic collaboration between industry branches and education institutes. A number have been established already, more are being defined. The high level aims of a center of expertise are to foster the knowledge economy and stimulate innovation, immediate practical results are an improved quality of education and potential interest of top performing students to seek employment in the industry branch. The education program that will be developed together with the education partners under the UpstreamCE initiative is directly aimed at the latter. Being faced with an immediate shortage of qualified high potential new employees, the education program will be designed at early identification of high potentials, stimulating interest in the branch and attracting the students for work in the O&G business. The UpstreamCE is envisioned to become the main knowledge center for all aspect of the Upstream O&G business in Europe. In order to achieve this ambition the following goals have been defined: Goals Show the attractiveness of the Upstream O&G business and attract (more) students to enter into O&G education programs. Identify, and secure employment of, top performing HBO Techniek students for jobs in the Dutch Oil&Gas industry. Provide education services to engineering courses: Dual education program at the Hanze hogeschool/NHL Content services to minors. Increase the education quality resulting in effectiveness improvements of technical studies: Providing state of the art knowledge as the base for the education programs Quality assurance of technical content and education means. Quality improvement by linking the education to practical research and development. Using the latest education tools s.a. education labs and animated simulations Supporting entrepreneurial behavior among students Provide information and technical support to third parties as and when required. Marketing of branch achievements (e.g. innovation and sustainability) using all contemporary media. Establish an international network Establish innovation R&D programs Establish and Upstream Center for Entrepreneurship Internal Establish organization an working relations with partners Establish on-line Knowledge Support system Increase professionalism of teachers: Technical content Link with R&D projects in industry Self sufficient Year, KPIs Y-1 Y-2 Y-1 Y-2

Y-1 Y-1 Y-2 Y-2 Y-2

Y-1 Y-1 Y-2 Y-3

The UpstreamCE will be an independent organisational entity. Experiences in similar initiatives have shown that a foundation is best means for providing organisational structure. Partners may, according to their whishes, have an organisational role either in the managing or the steering board. A CE Director will coordinate activities and perform part of the operational work. An education program coordinator will be responsible for defining and establishing the educational content and collaboration between partners. Quality and progress will be monitored by a steering committee with representatives from all partners-groups. The technical Upstream content will originate from the business partners and will be located on an internet based co-operation and support center. NAM Wells, Engineering and production, together with Shell The Hague, have volunteered the contents of their technical training programs. It is proposed to use the same as base content to be augmented with content and materials from other partners. It will be required to adapt this technical content to HBO level education requirements before loading on the internet support center, after which it will be enhanced with contemporary elearning services such as learning labs. In order to highlight the O&G industry attractiveness and challenges some of the content will be developed into special interactive and animated learning modules. The use of knowledge will not be limited to pure technical Upstream content, it will also concern those aspects of knowledge management required for practical application of the upstream knowledge in innovation projects s.a. entre&intra-preneurship and management of innovation projects. Partners are expected provide funding for the development of the CE and its first 2 years of operation, thereafter the center will be self sufficient. Out of a number of development options a total of 2 viable ones have been identified: base development at 400.000 Euros per year and an optimum development option at 580.000 Euros per year. Main variables are the initial quality of technical content, education material and educators. After 2 years the center will be self sufficient with earnings generated from for instance, school fees, placing students in partner organisations, payments for innovation projects, etc.

INTRODUCTION

2.1

Background

The project plan describes the results of discussions between representatives from NAM, the Noordelijke Hogeschool Leeuwarden (NHL), the Hanze Hogeschool Groningen, NOGEPA, IRO and the Energy Valley. The plan started off as an initiative to provide education services to HBO techniek curricula with the aim to be able to identify, and secure employment of, top performing HBO Techniek students for jobs in the Dutch Oil&Gas industry. In a situation where there is a structural shortage of HBO Techniek graduates, the O&G industry will be facing increased competition for talented new employees from other industries. The latter have already started similar initiatives for attracting students: not only by means of sponsoring minors, an increasing number of centers of expertise have, or are being, started. This approach is promoted by the Dutch government for fostering the Dutch knowledge economy, stimulating innovation and increasing the quality of education (better fit between education and industry), It requires structural collaboration between industry and education institutes (Lit 1), prime requirement from the HBO partners for their participation in this initiative. 2.2 An Upstream Center of Expertise

The Oil&Gas industry in The Netherlands and the North Sea is, and will be, in need of large numbers of new personnel and innovation in order to remain profitable in the next decades. As described in the previous section, a dedicated Center of Expertise is the prime vehicle for attracting top HBO Techniek talent to work in the oil business. The Upstream CE will be the intermediate between organisations in industry and education, it will benefit all of the participating parties by improving the quality and quantity of graduates and by creating a structure aimed at innovation and entrepreneurship by means of amalgamation, development and application of related knowledge. The first initiatives will involve introduction of state-of-the -art industry knowledge in education curricula at MBO and HBO level with the aim to attract top-performing students for jobs in the O&G industry. The use of knowledge will not be limited to pure technical Upstream content, it will also concern those aspects of knowledge management required for practical application of the upstream knowledge in innovation projects s.a. entre&intra-preneurship and management of innovation projects.

REVIEW BUSINESS SETTING PARTNER REQUIREMENTS

3.1

Introduction

This section summarises the results of discussions with various project partners and literature review in terms of objectives and requirements for each of the specific partner or stakeholder groups 3.2 3.2.1 Industry HBO Techniek graduate intake requirements

The demographic situation in the upstream part of the O&G business is such that a large number of experienced people will be retiring within the next 10 years or so. At the same time there is a lack of suitable replacement candidates leaving the education institutes. This combination calls for a concentrated efforts for companies to be able to attract the right type of personnel required for the future. New people will be required in all technical functions within well engineering, construction and intervention, engineering and execution of production operations and engineering and construction of production facilities. Intake requirements are summarised as: Sector O&G companies NAM Wells NAM Production & maintenance Others .. .. Service Companies .. 3.2.2 3.2.3 NAM Overall requirements and objectives Demonstrate attractiveness of the Upstream O&G work (content, culture and ..) to students. Conduct initial training while students are still at school. Assess student quality while they are still at school. Attract top performing students for jobs and internships. Demonstrate role in society and related commitment. Remarks from specific companies The preferred way of employing new HBO techniek graduates is via internships: more that 80 % of those that do a graduation study with NAM is willing to join the company thereafter. During discussions with graduations coordinators of HTO institutes in the NE of the Netherlands, NAM was invited to establish close working relationships which are not limited to satisfying its immediate employment aspirations, but showing prolonged commitment by participating in education programs in a sector wide context. Being the largest O&G company in the Netherlands, NAM was called upon to review its social responsibility. Being the major holder of Upstream O&G knowledge and competencies in The Netherlands, NAM will take a leading role in establishing technical content of the education program. It is envisaged to use (parts of) the Shell RI & II Well Engineering and Production operations training packages as the basis for this program. ......... 6 Required intake (Grads/Year) 15-20 5 Graduate type

Mech. or Civil Mech., Civil, Electr., Process

3.3 3.3.1

HBO Techniek Institutes Introduction

Discussions about this initiative with Mrs. A. Schat And Mr. G.Kuiken, directors of the technical institutes of the HBO institutes in Leeuwarden, resp. Groningen, have resulted in commitment to jointly participate in the UpstreamCE initiative. They propose to position it in the Energy Knowledge Cluster/Energy valley. 3.3.2 HBO Techniek graduates: supply and demand

Supply Some general statistical figures for Dutch HBO techniek institutes are: Circa 53% of those that start actually finish their study within 5 years. The time between graduation and finding a job 0.17 for Civil Engineering and 0.51 for Mechanical Engineering The number of new students in the NE of The Netherlands is presented as follows: School Mechanical Engineering Full time Part time Hanze Hogeschool Groningen 111 33 Noordelijke Hogeschool Leeuwarden 48 -Stenden Hogeschool Emmen 26 -Windesheim Zwolle 112 2 Saxion Enschede/Deventer 111 -Total 408 35 Civil Engineering Full time Part time 57 4 22 ---36 1 45 -160 5

Data from the Dutch Nationale Studiekeuzedatabase, http://www.studiekeuze123.nl/

Demand Graduate output to various industries/branches .. To be expanded .. 3.3.3 Quality of education

A drawback of the initiative is the cannibalising effect on existing education programs. There are two options to counteract: to increase the amount of new students and/or to reduce the amount of school drop outs (currently some 50 %). Both options relate to the quality of education. The schools require quality aspects of education to be addressed in the project plan s.a the attractiveness for students to enter and complete technical curricula, the practicality of the education, job-opportunities, ... 3.3.4 Education program and effectiveness

Program options The way that Upstream education may be incorporated in the overall education programs of both schools largely depends on the amount of students that apply for the program on the individual school. Both schools define a total of 20 students as a cutoff point: at less than 20 students the Upstream program will have to fit in with the existing school program. This would entail a number of guest lectures in the first 3 years and providing a minor O&G program and options for graduation projects in the final, 4th, year. with more than 20 students it will be possible to define a specific 4 year Bsc. level Upstream O&G curriculum. Such full time program will offer an initial 2 year general mechanical engineering program, the final 2 years will concern Upstream engineering issues. The program of the latter will be determined after the project start, it is envisioned that it will involve dual education where the student will attend classes in combination with working in an O&G organisation. The above concerns HBO techniek students following a regular Bsc. education program. 7

An additional option for attracting students into a Bsc program is via the Associated Degree route. An AD route is designed for MBO students with the desire to increase their level of education with an official degree without completing a full Bsc program. As the AD program is part of a full Bsc curriculum, the AD allows students to continue learning for a full Bsc should they so desire. Program effectiveness Little research has been conducted in The Netherlands about the effectiveness of various education programs. Evidence from other countries (the German system of Meister-Gesell and the UK .....Ref) and practical experience (Ref: Schat, NHL) shows that the dual education route is most effective from an industry point of view. In a dual education program, the student is working for a number of days per week, the other days he/she is going to school. During the working days a considerable amount of time is spent on learning on the job, the student receives a salary. Main advantages for industry parties is that the student is getting acquainted with industry and specific companies and will obtain her/his initial training while studying. The borderline between dual education and regular education is not a fixed one. It depends on the time spent on actual work vs. study. From a practical point of view also the situation where the student is doing a graduation assignment in a company may be defined a dual education, especially if such assignment is preceded by an industry organised minor and/or industry education in the third year of study. It should be noted that in the situation where these 3 situations are combined (graduation assignment, minor and education in the 3rd year), the education program may be defined as an industry Bsc program. 3.3.5 Organisation of education program

At present the schools do not have a desire to develop and maintain Upstream type content nor to hire professors with the proper level of expertise. Directors of the technical institutes of both schools advised the creation of an independent body to build and cultivate technical educational content suitable for application at HBO level. This would have a number of advantages: it is clear which parties are responsible for the content, who owns the content and related issues of propriety and secrecy, .. 3.3.6 Advantages

Advantages for the education institutes are summarised as: Improved quality associated with expansion of the regional footprint (regional demand for education meets knowledge supply of regional industry) Expected to result in an increase of the total amount of students (standard education revenue for each student is about 7500 Euro per year (75% from government, 25% from student college fees). Extra chances for post grad. education. Student entry marketing is partly done by industry, assignments are all taken care of/arranged. Job assurance: will also increase student entries. 3.3.7 Requirements Partner commitment for establishing an ongoing and lasting working relationship for setting up specific course programs and providing course content. Participation will not be limited during the final year of study. In a situation of over-demand for graduates, additional requirements as described in section 2, above, leads to a reduction of graduates available for other industries. It will be required to find ways to attract more starters, for instance MBO graduates. 8

Companies pay for development of curriculum and costs of teachers (lector??) HBO schools, as professional education institutes, have a prime interest in delivering students with a competency profile that is in line with regional requirements: this may increase the success in attracting new students. Further described in section 4.4, the institutes envisage a joint initiative involving Dutch O&G companies, service contractors and branch organisations s/a Nogepa and IRO will be required. Existing initiatives

3.3.8

3.3.8.1 Existing education programs Upstream O&G type education at university level is provided by the TU Delft. In the past referred to Mijnbouw (Mining), the faculty is now called Civil engineering and Geoschiences. A section petroleum engineering results under the 'Department' Geotechnology. (http://citg.tudelft.nl/en/about-faculty/departments/geotechnology/sections/petroleumengineering/). They also provide a Master program in Offshore Engineering. (http://www.offshore.tudelft.nl/en/study/master-of-science/master-programmes/offshoreengineering/) HBO level Upstream education was, up to some 10 years go, provided by the Noorder Haaks Hogeschool for Petroleum and Gas Technology in Den Helder. Due to years of depression in the O&G branche, this curriculum had to be discontinued. Parts of the education program were incorporated in a curriculum at the Hogeschool of Amsterdam, however to date this program was not successful. With the current increase in demand for HBO techniek graduates in the O&G and Energy industry, a number of HBO institutes have started related education programs. The most successful one up to now is the minor Offshore Engineering and Automation in the Avans Hogeschool in Den Bosch. Started some 4 years ago, this minor is now attracting some 70 students per year; it focuses on the surface engineering aspects of the Offshore Industry. The NHL (Leeuwarden) started a study Maritieme Techniek. The O&G part of the curriculum is currently being developed and will concentrate on seafaring contractors s.a. vessels for laying pipe, crane vessels, drill ships, etc. A similar program is under development at the STC in conjunction with the Hogeschool Rotterdam. In a recent HBO level initiative, the Faculty of Chemical Technology of the Van Hall Larenstein Institute included parts of Upstream education in their major Petrochemie en Offshore. They also organise a minor Olie en Gas at the Maritieme Campus in Den Helder. While it is claimed that this minor is established for technical students, they also accept students from non-technical students. It may therefore be expected that the technical content of the program is limited and/or that quality goals are compromised Education programs at MBO level are: Courses for O&G production operators at the ROC in Delfzijl. A study Maritieme Techniek is offered by the Friese Poort in Sneek and by the STC in the West of the Netherlands. 3.3.8.2 Collaboration It will be attempted to establish collaboration with the programs as described in the previous section along the lines of the overall goals of the UpstreamCE. Operational contact may entail cooperation regarding content, it will also be attempted to align curricula such that smooth transition from MBO to Bsc and from Bsc to Msc type education is possible. Co-operation with the Van Hall Larenstein Institute has been established: they are committed to participating in this UpstreamCE initiative and look forward to being able to use technical content and expert resources. 9

3.4

Nogepa/IRO

Nogepa and IRO look favorably on support this initiative. Conditions for active support are approval from their members and a situation where Upstream type education programs in the Netherlands are combined under one umbrella (clarity for students and quality assurance of technical content) and that they are offered through (an) established mechanical engineering education institute(s). 3.1Students During a NAM-recruitment initiative in 2010 it transpired both NAM as a company and the O&G industry are not recognized as opportunities for future employment. Once the type of work is explained however (exiting, lots of responsibilities early in the career, possible rotation, good earnings), people are interested. 3.2 Government

Further detailed in http://www.centresofexpertise.nl/, regional sector initiatives involving industry and educational institutes are now recognized by Dutch Government as one of the business drivers of the future. The resulting regional Centers of Expertise are expected to boost the Dutch knowledge economy and result in innovation and for reducing the qualitative and quantitative shortage of technical personnel. The centers will obtain an official position in the Dutch knowledge and education infrastructure as official innovation areas. It is expected that both industry and the education institutes will invest in these Centers of innovation, they will become marketing tools in attracting a new generation of technical experts. Technical knowledge thus shared and developed will be part of the official education programs. The first initiatives for Industry-Education collaboration have been established already, others are currently being planned. Typical projects involve, a/o establishing industry specific education programs and active involvement of industry partners in the execution thereof. Examples are: BouwTalent Twente, Automotive (Arnhem-Nijmegen), Chemie (Zuid Limburg), Watertechnologie (Friesland), Dutch Delta Academy (Zeeland), Micro-elektronica Devlab15 (Salland), Kunststoftechnologie (Salland), Civiele Techniek (Twente)

10

PLAN

4.1

Introduction

It is proposed to establish an Upstream Oil & Gas Expertise Center, a sector-wide initiative with cooperation between Oil and Gas companies, service contractors and HBO education institutes. The UpstreamCE will be the intermediate between organisations in industry and education, it will benefit all of the participating parties by improving the quality and quantity of graduates and by creating a structure aimed at innovation and entrepreneurship by means of amalgamation, development and application of related knowledge. The first initiatives will involve introduction of state-of-the -art industry knowledge in education curricula at MBO and HBO level with the aim to attract top-performing students to enter the O&G industry. The next steps are to: 1. establish the industry-wide partnership (Current activity), 2. agree stakeholder requirements and expectations for the expertise center. This will include, but is not limited to, education services, knowledge support, recruitment services, innovation support, marketing services. This will include the requirements of existing education programs that will/may use the content as developed in the CE. 3. define education programs and technical contents. 4. establish an internet based co-operation and support center. 5. initiate education-, knowledge-, innovation-, information- and marketing activities It is estimated that the duration of these steps, the start up phase, will be 2 years. Costs for this period are to be funded by industry partners, thereafter the CE will be self-sufficient. Note: in its current form this plan requires input from industry partners, stakeholder parties are invited to provide feedback and ideas for improving and completing the plan. 4.2 Goals

The UpstreamCE is envisioned to become the main knowledge center for all aspect of the Upstream O&G business in Europe. In order to achieve this ambition the following goals have been defined: Goals Show the attractiveness of the Upstream O&G business and attract (more) students to enter into O&G education programs. Identify, and secure employment of, top performing HBO Techniek students for jobs in the Dutch Oil&Gas industry. Provide education services to engineering courses: Dual education program at the Hanze hogeschool/NHL Content services to minors. Increase the education quality resulting in effectiveness improvements of technical studies: Providing state of the art knowledge as the base for the education programs Quality assurance of technical content and education means. Quality improvement by linking the education to practical research and development. Using the latest education tools s.a. education labs and animated simulations Supporting entrepreneurial behavior among students Year, KPIs Y-1 Y-2 Y-1 Y-2

11

Provide information and technical support to third parties as and when required. Marketing of branche achievements (e.g. innovation and sustainabilty) using all contemporary media. Establish an international network Establish innovation R&D programs Establish and Upstream Center for Entrepreneurship Internal Establish organization an working relations with partners Establish on-line Knowledge Support system Increase professionalism of teachers: Technical content Link with R&D projects in industry Self sufficient

Y-1 Y-1 Y-2 Y-2 Y-2

Y-1 Y-1 Y-2 Y-3

4.3 4.3.1

Education program General

The current plan is to: 1. establish an Upstream education program for Technical HBO students at the technical institutes of the NHL and Hanze Hogeschool. Main objectives of the program are: Provide technical students with the engineering and operating basics of the Upstream O&G industry. Early identification of high potentials, stimulating interest in the branch and, attracting the students for work in the O&G business. W.r.t. the experiences with, and effectiveness of, various education programs as described in section 3.3, and the unavailability of exact numbers of students that will follow the program, it is proposed to start the program with introductory lectures in the 3rd year of study followed by an elementary dual-type final study year program. The exact content of this final year program is to be developed as part of this initiative, it is foreseen that it will consist of the equivalent of a technical minor in combination with graduation assignments. Based on the success of the program and the number of students interested in and upstream study, the curriculum may be expanded. 2. to provide education services to existing minors s.a. the Olie en Gas minor on the Maritiem institute in Den Helder and to the Offshore Engineering and Automation faculty of the in the Avans Hogeschool in Den Bosch. 4.3.2 Technical Content The technical content will originate from the business partners and will be located on an internet based support center: NAM/Shell will contribute (part of) its standard well engineering and operations course material. This material is considered to be world leading and will form the basis for the HBO course content. Other O&G Companies and Contractors: It will be required to adapt the course material as supplied by program partners to HBO techniek level. A review of the Shell material (oriented towards the operational aspects of Upstream business) shows that more emphasis will be required on the true engineering aspects and making the material more accessible and attractive for the target group by creating interactive and/or animated learning modules. Once loaded on the on-line support center, the content will be enhanced with contemporary internet learning, content management, web publishing and communication services.

12

The use of technical content will not be limited to the Upstream material, it will also include knowledge concerning entre&intra-preneurship and management of innovation projects. Quality assurance: HBO techniek level to be verified by education partners Technical content checking and editing will be done by qualified technical upstream engineers. 4.3.3 Teachers

It is proposed to use industry experts as teachers. One expert will be engaged full time and will be responsible to provide the base program and coordinating contributions from guest lecturers from industry partners. Wrt. section 4.8, the choice to use industry experts as teachers determines, to a large part, the total operating costs for the UpstreamCE. Further explained in that section this choice is justified based on quality. Note: Education partners have no desire, and maybe more importantly will not be able, to develop personnel to become teachers/professors on the subject of upstream knowledge. 4.4 Innovation

While the initial innovation efforts will consist of graduation assignment for students, the center will gradually start functioning as an innovation incubator and facilitator in its intermediate between organisations within the partnership and with 3rd party organisations. This section to be expanded based on feedback from industry partners 4.5 4.5.1 Organisation General

The sector-wide initiative calls for cooperation between Oil and Gas companies, service contractors and HBO education institutes. All parties will contribute. The technical content will be determined by the industrial partners. They will also be responsible for providing the content and developing it such that it may be used in HBO level educational programs. HBO institutes will advise on, and ensure the quality, in line with the requirements of HBO level education. It will be attempted to establish links with similar initiatives (if any) and other relevant education institutes in the "education chain" s.a. MBO Techniek and/or Technical Universities. The UpstreamCE will be part of the Energy Valley (www.energyvalley.nl). It will, however operate as independent organisational entity. 4.5.2 People

A CE Director will coordinate activities and perform part of the operational work. An education program coordinator will be responsible for defining and establishing the educational content and collaboration between partners. The actual education will be the responsibility of a core education group consisting of the program coordinator (lector ??) , 1 teacher and 2 industry experts (to be confirmed). Quality and progress will be monitored by a steering committee with representatives from all partners-groups.

13

4.5.3

Organisation form

Using the experiences from similar initiatives (see appendix - 1) it is proposed to establish a foundation as the organisational means to conduct and control activities. According to their whishes founding partners will get an organisational role either in the managing or the steering board. Establishing such independent body has a number of advantages: it is clear which parties are responsible for the content, who owns the content and related issues of propriety and secrecy. Content may be made available for third party education (for instance at the Avans Hogeschool and at the Van Hall Larenstein Institute, see also section 3.2). Partners may determine which of their proprietary content is used by which specific parties and under which restrictions. 4.5.4 No physical location

While having a physical location and offices may be an option for the future, the UpstreamCE will be completely on-line based during its start up phases. The on-line basis will be a Knowledge Support System built on the Vakschool 2.0 platform, an on-line application for learning and cooperation in professional networks developed under auspices of KennisNet. 4.6 Marketing

The marketing efforts will concentrate on: improving the image of the branch with the general public (current relatively unknown and lack of green/sustainability image) improve exchange of knowledge and cooperation between members and 3rd parties highlighting the attractiveness of the branch for employment. Demonstrate the branch innovativeness All contemporary media will be used for communicating and interacting with target groups. 4.7 Online knowledge support system

The Knowledge Support System (KSS) will facilitate communication, knowledge sharing and collaboration between partner members/students and third parties. Third party communication will be by means of a billboard function for the WECI industry towards all stakeholders (students, society, ..) via website and related presence in social networks. Internal requirements concern: Content (reference and study) Planning and execution of educational tasks (industry teachers and coaches) Planning and execution of study tasks (individual students and groups) Planning and execution of practical assignments s.a. practical assignments and graduation projects. (supply and demand for assignments) Quality assurance and monitoring (a/o. working environment for coordinator group). Employment opportunities Post graduation education The KSS will be established on the Vakschool 2.0 platform - or equivalent. Designed under auspices of KennisNet, Vakschool 2.0 provides for an on-line knowledge network of professionals in a specific profession in close co-operation with the professional (branch) group, contractor and customers.

14

4.8 4.8.1

Funding General

The project requires a 2 year start up period before entering a "steady state" operating mode. Partner funding will be required for this period as income from other sources s.a. obtaining part of the student school fees and/or obtaining government funding will be unfeasible. After the 2 years start up the CE will be self sufficient, income to be generated from the amount of graduates "delivered" to industry partners and results of successful innovation projects. Described in this section is the funding required from industry partners during the 2 year start up. The largest part of the investment will be consumed by remunerations for a CE manager (0.5 FTE) and a full time teacher. 4.8.2 First 2 years - Partner funding

Start up funding will be the responsibility of the industry partners and will depend on their willingness to participate in the initial quality of technical content, education material and educators. Detailed in attachment 2, a total of 3 development scenarios have been reviewed: 1. Minimal development with an investment of 170.000 Euros (.... per year). Industry content will be loaded on the internet based co-operation and support center as is. Educators will be retired experts (paid as HBO level teachers) and invitees from industry partners (at no cost). 2. Base development with an investment of 315.000 euro (.... per year). This option involves: development of a total of 3 HBO specific education modules and enhancing the technical content with contemporary learning services, 0,2 FTE industry expert instructors, 0,8 FTE HBO level teacher and invitees from industry partners (at no cost). 3. Optimum development with an investment of 570.000 Euro (.... per year). This will cover: 5 HBO specific education modules and enhancing the technical content with contemporary learning services, 1 FTE industry expert instructor and invitees from industry partners (at no cost). In view of the aims of the program scenario 1 is rejected as it is expected that the overall quality of the content and the program is not high enough, thereby not attracting students at the level envisaged in this plan. Main reasons are that the technical content is not geared for HBO level education and the quality of teachers is not high enough. Market research has revealed that industry experts, even after retirement, will not accept payment as HBO level teachers. Scenario 2 and 3 remain as viable development options. Scenario 2 is defined as the base option with adequate technical content and appeal for HBO students.

15

ATTACHMENTS Attachment 1

Examples Education projects between Industry and Education Institutes 1 General An existing initiative in the building sector: http://www.bouwtalent.nl/twente/ Industry participation in civiele techniek at the UTwente: http://www.utnieuws.nl/achtergrond/sector-pompt-miljoenen-opleiding-civiele-techniek 2 Centers of Epertise

For general information: http://www.centresofexpertise.nl/ De HBO Centres of Expertise (commissie De Boer) en MBO Centra voor Innovatief Vakmanschap (commissie Hermans) richten zich op het versterken van de Nederlandse economie en innovatie en het doorbreken van de kennisparadox. De centra dragen bij aan het oplossen van het schaarsteprobleem binnen de btatechniek. Kennis die binnen de nationale sleutelgebieden en de maatschappelijke innovatieagenda wordt gegenereerd, krijgt via de centra een plek in de onderwijs- en kennisinfrastructuur. De centra profileren zich scherp op een economische innovatiespeerpunt en worden geleid door onderwijs n bedrijfsleven. De centra dragen bij aan de innovatiekracht van ondernemers. De centra streven naar het oplossen van de kwalitatieve en kwantitatieve tekorten binnen deze sectoren. Structuur en organogram ACE Uitgangspunt is dat een aparte rechtspersoon wordt opgericht die verantwoordelijk is voor het initiren, cordineren en beheersen van de activiteiten van het ACE. Vanuit de gedachte dat de organisatie slagvaardig zal moeten zijn en dat het niet de bedoeling is dat de nieuwe organisatie winst gaat maken ter verdeling onder de leden, noch het doen van uitkeringen aan bestuurders, oprichters of aangesloten, wordt gedacht aan een op te richten stichting. Alhoewel het verboden is voor een stichting om leden te hebben , is het wel mogelijk dat een stichting aangeslotenen of donateurs kent. De primaire partners zullen zich alle als aangeslotene/donateur aan de stichting verbinden en zich verenigen in een hierna nader te beschrijven raad van toezicht en programmaraad. Door de bijdrage van de aangeslotenen (materieel en immaterieel) kan de continuteit van de stichting worden gewaarborgd. De op te richten stichting zal vervolgens ten behoeve van haar aangeslotenen activiteiten initiren, cordineren en beheersen. Stichting ACE zal drie organen kennen: De directeur / statutair bestuurder van het ACE is verantwoordelijk voor de dagelijkse gang van zaken. De raad van toezicht houdt toezicht op de directeur/statutair bestuurder en zal hem gevraagd of ongevraagd van advies voorzien. De raad van toezicht zal bestaan uit vertegenwoordigers van Fontys, HAN en het bedrijfsleven (via FOCWA en FHA). In de raad van toezicht zal sprake zijn van gewogen zeggenschap (Fontys: 30%, HAN: 40% en het bedrijfsleven (waarschijnlijk FHA/HTAS en FOCWA ieder 15%). De programmaraad adviseert de directeur/statutair bestuurder op het gebied van onderzoek en onderwijs. In de programmaraad hebben afgevaardigden zitting van de beroepenveldcommissie van HAN Automotive, van de Raad van Advies van Fontys Automotive, van Hogeschool Rotterdam opleiding Autotechniek en van de primaire partners. In Figuur 8 is het organogram van het ACE afgebeeld: 16

Attachment 2 Development and Yearly Operating Costs

17