Page 39 - MetalForming May 2012

Oberg Industries\Workforce Development
www.metalformingmagazine.com MetalForming/May 2012
Tracking Training—ROI by the Numbers
Training can be a feel-good term. While every company boasts of training efforts, return on investment (ROI) can be elusive. Not so at Oberg Industries, where all sorts of training data illustrate an efficient ROI.
The shift from time-based to competency-based appren- ticeship training has enabled the company to know, with cer- tainty, what each graduate can do, according to Greg Chambers, Oberg director of corporate compliance.
“This is critical in a work environment where you have a constantly changing product mix,” he says, “and competency- based training provides us with the ability to quickly move human resources to areas with the greatest need.”
The training shift away from a rigid length of time also ben- efits employees, allowing them to more quickly earn higher wages associated with increased training, and more quickly attain skills that make them valuable assets, thus assisting in job and career security.
Training time is the percentage of work an employee’s time charged to training. For example, in Group One, Year 2 train- ing time rose by 42 percent over Year 1. With each passing year, training time decreases, with the percentage represent- ing a change from the Year 1 baseline. So in Year 4, Group One charged 45 percent less time to training than in Year 1, while for Group Ten training time decreased by 58 percent compared to Year 1. Ideally, the time charged to training should decrease, with more time charged to production.
Multiple machine time tracks the ability of one operator to run multiple machines, a huge push at Oberg, where the com- pany strives for cellular and lights-out manufacturing. Group One failed to register any multiple-machine time in Year 1 or Year 2, as its members did not learn their craft well enough to run multiple machines until Year 3. By Year 4, training had resulted in more than 1000 hours spent running multiple machines. Group Ten shows a similar trend.
Direct labor utilization tracks the amount of time an apprentice spends performing direct labor, as opposed to time spent training, performing maintenance or doing other tasks
*This chart tracks apprentices in a variety of job classifications at Oberg Industries. Group One was the first group to go through the competency-based apprenticeship program, while Group Ten was the most recent group to complete it. Completion of an apprenticeship occurs on an individual basis, but the majority of apprenticeships are completed within 4 yr.
not directly related to production. For example, Group One had a 15-percent increase in Direct Labor Utilization for Year 4 apprentices relative to their first year. The percentage trend is even more impressive when considering the employees’ increasingly complex job assignments each year.
ROI represents how apprentices are bringing revenue to Oberg. By Year 4, Group One apprentices generate $96 for each dollar spent on training. The return is even greater for Group Ten apprentices, reflecting improvement in worker per- formance as the competency-based apprenticeship program evolves.
“Another deaf person was working here, so I was interested,” explains wire-EDM operator Scott Craig, who went through a 4-yr. apprenticeship and has worked for Oberg for 15 yr.
“I work on three machines alone, or sometimes partner to work on five. This job is a lot of fun. I have to think every day, but the time goes very quickly.”
says Wagner, describing the 2-yr.-old program. Training includes classroom and on-the-job instruction, with management selecting a few projects where trainees can learn to report and analyze data, and follow work through the manufacturing process. Project managers form a bridge between management and shop-floor per- sonnel, with all parties benefitting from the exchange of ideas and infor- mation, according to Wagner.
“Front-office personnel may not always understand what exactly occurs on the shop floor, and the employees on the floor may not understand front-office concerns,” he says. “We’ve tried to bridge that gap, and the feed- back through our project-manage- ment initiative helps do that.” MF
Press operator Mike Urik worked at Oberg for six years and went through the apprenticeship program, then left the company, only to return five years later. “I started on the press floor, and they saw that I was a hard worker,” he says, “so I was placed on some special jobs and projects and have moved up.”
Benefits of Apprenticeship Training— (Year 1 is the Baseline)
Group One*
Training Time (percent)
Multiple Machine Time (hr.)
Direct Labor Utilization (percent)
Return on Investment (percent)
Group Ten
Training Time (percent)
Multiple Machine Time (hr.)
Direct Labor Utilization (percent)
Return on Investment (percent)
Year 2
42
0
–12
–62
–27
126
18
26
Year 3
10
621
–2
–13
–27
0
20
25
Year 4
–45
1230
15
96
–58
1714
35
137