Society for the Plastics Industry Southern Region Presents… Competitiveness Series #4

1. Society for the Plastics Industry Southern Region Presents… Competitiveness Series #4 www.tmgva.com

2. Investing in Human Capital to Build a Workforce Prepared to Compete www.tmgva.com

3. Today’s LearningObjectives • Understand human capital return on investment • Link your human capital programs to the business • Understand how Senior Leader’s see Human Capital • Learn from others like you • Participate in an interactive “Consulting Session” • Review some good idea product examples www.tmgva.com

4. Session Feedback • Start with the end in mind! www.tmgva.com

5. Business Card Exchange • Position? • Type Company? Plastics; Other • Product? • Number of Employees? • Number of Locations? • #1 Challenge? www.tmgva.com

6. Take a Blue Slip Our Way to Communicate!

7. Take a Blue Slip • What do you want to learn today? www.tmgva.com

8. Agenda 10:00 – 11:00 Kick Off Let’s Get Out of the Box with Some Big Picture Thinking 11:00 – 12:45 Senior Leader Panel Discussion 12:45 – 1:15 Lunch/Break/Networking Time 1:15 – 2:15 Review & Bemis Case Study 2:15 – 3:00 Practical Exercise 3:15 Good Idea Demonstrations www.tmgva.com

9. Getting Out of the Box… Big Picture Thinking!

10. Leaping Ahead Learning from Others… • Proof of Principle • Can modernized Human Capital Programs significantly increase an organization’s ability to accomplish its mission more resource efficiently?YES Done • Proof of Concept • Has the Principle been proven in similar organizations?YES Done • Proof of Design • Can modernized Human Capital Programs significantly increase YOUR organization’s ability to accomplish its mission more resource efficiently?YES - But . . . • Depends upon YOUR application in YOUR specific circumstance To Do ? www.tmgva.com

11. …It is All About Performance! REQUIRED Level of Performance CURRENT Level of Performance Resources Required Performance Gap Measures of Performance www.tmgva.com

12. Fundamentals “Managing today is about finding great PEOPLE, linking them with ideas, processes, and resources, and ENABLING them to produce something remarkable that leads to VALUE!” • Leaders are Responsible for— • Clear Goal Definition and the plan. • Providing sufficient resources • Ensuring people have the correct knowledge and skills • Employees are Responsible for— • Accomplishing goals and objectives– performance • Contributing to Team Improvement www.tmgva.com

13. …It is All About Performance! REQUIRED Level of Performance CURRENT Level of Performance • Options: • Re-allocate Current Employees • Hire Experienced • Hire New People • Work Overtime • Increase Productivity • Change the Process (Lean) • Increase Capacity (Automate) Resources Required Measures of Performance Performance Gap www.tmgva.com

14. Supporting the Business The Mission: Provide employees in the right numbers in the right skills at the right time to meet business needs. The Goal: An agile, competent workforce capable to move at the speed of business. www.tmgva.com

15. Human Capital “End to End” Generate Labor Requirement Initial Entry Common Training Recruit Interview Orientation Initial Assignment Business Focus: Labor Cost • Probationary On the Job Training • In Service Training • Specialized Training • New Job Required Training Promotion Track/ Assign/ Determine Proficiencies Promotion Reqs Met www.tmgva.com

16. Leveraging Experience Take Advantage of these Talents High Quality/ High Quantity Shorten this time period Low Cost High Cost Lower Physical Abilities High Skills Lower Skills/ Experience Most Productive Years Low Quality/ Low Quantity Joe 2 Joe 3 Joe 4 Joe 1 Time of Service: 30 Year Career www.tmgva.com

17. Success Principles • Business Focus (People, Process, plus Material = Products) • Senior Leaders Must Personally Engage • Centralized Planning and Decentralized Execution • 1st Line Supervisors are Primary Trainers and responsible for performance • Be Accountable to meet Return on Investment Predictions • Start with the end in mind: Big Picture Thinking www.tmgva.com

18. …Start with the End in Mind! • Who are the people we are trying to serve? • Why are we doing this? • What kind of experience do we want our people to have? • What kinds of media are most appropriate for the subject and audience? • How much can we ask our training/instructional staff to change the way they do things? • How are we going to measure progress? www.tmgva.com

19. Quantity vs. QualityMove the Employee in the right Direction – Go To Guy High Quantity High Quality High Quantity Low Quality Quantity of Work Low Quantity Low Quality Low Quantity High Quality New Guy Quality of Work What is our plan to move our people along the correct developmental path? www.tmgva.com

20. Life Cycle Skills Development Program Management Skills Supervisor Development Training Complex Tasks Supervisor Skills Training Pre-Employment V Employment Skills Mentor Skills Basic Skills Intermediate Skills Advanced Skills Soft Skills Development IV Initial Entry Skills Training Basic Training Intermediate Training Advanced Training III Practical ApplicationCoaching/ Evaluation Practical ApplicationCoaching/ Evaluation Practical ApplicationCoaching/ Evaluation Skills Evaluation II Experienced Personnel I Career Competency Level www.tmgva.com

21. Learning:Effort vs. Competency • “I know” skill: • Exchange of Information • Computer Based Training • “I can do” skill: • Performance based skills transfer • Computer Assisted Instruction • “I can adopt and apply” skill: • The actual performance requirement • Practical Application and Coaching www.tmgva.com

22. Understand the Cost of Training Overwhelming Cost of Training is Student Labor www.tmgva.com

23. Sample Performance Metrics • Productivity of Work Units (Cost, Schedule, Quality, Safety, Revenue) • Quality of Work Units (Reduction in rework, customer complaints) • Employee Retention Rates • Internal Promotion Rates • Absentee Rates • Employee Accident/Incident rates • Time for New Hires to begin productive work: “Time to Competency” • Smile Sheets • Supervisor Feedback www.tmgva.com

24. Measurement and Metrics • Did you waste your time? • Did you learn what the course was designed to teach you? • Could you do your job better? • How much did it cost to train you versus the performance improvement gained? • Did the business get better? www.tmgva.com

25. Metrics Process What is the Business Objective? Three Levels: What Should I Measure? Modify Measures Outcome What Measurement Methods and tools will we use? Program Modify Processes How should we collect and analyze the Measures? System Who are the Stakeholders and what do they need to know? Aid Decision- Making What do the Measures tell us and how should we change? Goal: Predictive Measurement Which Framework is best? www.tmgva.com

26. Performance Improvement“A Systems Engineering Approach” • How are you doing it now? Current State Map • What are the opportunities for improvement? Good Idea List • What does the future system look like? Future State Map • What does the perfect system look like? Perfect State Map • How do we get from here to there? Plan of Action and Milestones with Resources Required and Return on Investment Prediction www.tmgva.com

27. Senior Leader Panel Discussion Use the Blue Slips!

28. Case StudyBemis Manufacturing

29. Practical Exercise

30. Performance Improvement“A Systems Engineering Approach” • How are you doing it now? Current State Map • What are the opportunities for improvement? Good Idea List • What does the future system look like? Future State Map • What does the perfect system look like? Perfect State Map • How do we get from here to there? Plan of Action and Milestones with Resources Required and Return on Investment Prediction www.tmgva.com

31. Scenario Barto Plastics Company

32. Corporate Overview • Product: 3 Plastic Containers • 3 Locations in United States (Virginia, Michigan, and Ohio) • 350 Employees • Skilled: 200 • Unskilled: 150 • Current Training Program: On the Job Training • Business Problem: • Increase capacity from 10,000 to 50,000 per day. • Decrease cycle/change-over time • Aging Equipment with decreasing reliability • Acquiring a new plant to increase capacity in next year www.tmgva.com

33. Hiring Process – Current State Production Identifies Requirement HR Posts Requisition & Sends to OET HR Receives Applications HR Schedules Interviews Production Interviews Welding Test Hiring Decision Drug Screen and Physical Offer Sent Applicant Given Report Date Hiring Tact Time: 80 days Cost: $1,000 Time to Competency: 2 years Attrition Rate: 1st Year 50% Hiring Forecast: 10 per month HR Admin Inprocessing 8 Hours of Video OSHA Training OJT Training www.tmgva.com

34. Current State www.tmgva.com

35. The Process A Repeatable Template

36. A Systems Engineering Approach • Phase 1 – Data Gathering and Understanding • Phase 2 – Design • Phase 3 – Development • Phase 4 – Pilot, Data Capture, & Analysis • Phase 5 – Roll-Out • Phase 6 - Enterprise Implementation www.tmgva.com

37. Phase 1 www.tmgva.com

38. Phase 2 www.tmgva.com

39. Phase 3 www.tmgva.com

40. Phase 4 www.tmgva.com

41. Phase 5 www.tmgva.com

42. Phase 6 www.tmgva.com

43. Program Planning Model • Executive Review Board (ERB) • Sets Strategic Direction based on business priorities ERB Actions: Defines what needs to be included in the business case and the criteria it will use to judge the projects Scores, Ranks. and selects projects based on defined criteria Reviews projects at measurable checkpoints that set boundaries to monitor and fund the project Evaluates projects to determine whether components can be reused Fund Next Phase? Fund Next Phase? Fund Next Phase? Yes Yes Yes No No No Pre-Concept Understanding Analysis Definition and design Creation and Development Pilot Implementation and testing Roll Out Manage Life Cycle Assess the viability, value, return on investment, and risk; complete high-level design Ramp to full production. Communicate to audiences Evaluate the appropriate-ness of project concept Develop detailed project plan. Document agreement Develop and verify offering against specifications Determine ongoing demand for current course or need to update/delete Conduct final test/pilot. Proceed to completion if valid Project Management Life Cycle www.tmgva.com

44. Analysis and Understanding May 1- 31 Strategic Communications Program Pilot Program Decision ERB Program Reviews Monthly Execution Decision Program Implementation Support July 1, 2002 – Jan 31 Courseware Development Oct 1 – March 30, 2004 Training Model Development July 1, 2003 – Sept 30 Sample Training Modernization Program Plan of Action and Milestones Phase 1 Phase 2 Phase 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Courseware Vendor Selection Definition and Design June 1 – Aug 31 Pilot/Prototype Creation and Development and Systems Integration Test Oct 2 – Oct 16 SOJT Pilot Begins Dec 1 – Jan 31 www.tmgva.com

45. Integrated Training Integration and Testing Strategic Communications Program ERB Program Reviews Monthly Major Report Out Major Report Out Final Report Out June 1 – Aug 31 Special Skills Analysis Pilot Implementation, Data Capture Dec 1 – April 30 Dec 15 – August 31 Integrated Training Strategy Development Jan 1 – June 30 Sample Training Modernization Program Plan of Action and Milestones (continued) Phase 4 Phase 5 Phase 6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Courseware Development and Automated Support Tool Integration Jan 1 – March 30 Training Pilot Sep 1 – Dec 31 www.tmgva.com

46. Phase 1: Data Gathering and Understanding • Time: ~ 4 weeks • Deliverables: • “Current State” Human Capital Value Stream Map • Total Cost of Ownership Model “Current State” • Defined Client application of the Life Cycle Skills Development Model • Identification of Key Cost Drivers • Develop and Define a list of “Good Ideas” for Management Review • Establish an Executive Review Board and Program Team (Client and TMG) • Identification of Stakeholders with defined Value Propositions • Strategic Communications (Internal and External) • Client Requirement: • Provide an Internal Program Manager • Full Access to gather information by TMG Program Manager • Non-Intrusive Information Gathering • Decision on which Good Ideas to further Develop into Pilot Project(s) www.tmgva.com

47. Training Audience Analysis 5929 Total Population www.tmgva.com

48. Some Good Ideas • Apply the Life Cycle Skills Development model to develop Client Career Maps linked directly to Lean Value Stream Map • Use the Process Step Skills List to develop Client Team “Visibility” Map with Bench Strength analysis… The Client Depth Chart! • Detailed Skills Training and Development Program • Technology Enhanced Hiring and Orientation Program • Team Leader Development Program • Technical School Out Reach Program • Use ACT Work Keys as Pre-Hiring Skills Assessment • Use 2nd Shift as a Training and Development Center 9. Others? www.tmgva.com

49. Phase 2: Definition and Design • Time: ~ 6-8 weeks • Deliverables: • “Future State” Human Capital Value Stream Map • Total Cost of Ownership Model “Future State” • Pilot Project(s) Return on Investment Predictions • Pilot Metrics Definition Document • Expanded Pilot Project Architecture Document • Detailed Plan of Action and Milestones with Test Plan for Pilot Project Implementation. • Strategic Communications Campaign Revisions and Execution • Client Requirement: • Assign Project Team for each Pilot Project (Program Manager, IT Point of Contact, and Specific Team Members/Subject Matter Experts as required) • Allocate Resources www.tmgva.com

50. Phase 3: Creation and Development • Time: ~ 2 -3 Months • Deliverables: • Build the System and its components • Produce Pilot Project User and Technical Documentation • Define a Testing Plan and scenarios with Data Capture and Test Plan • Strategic Communications Campaign (Internal and External) • Client Requirement: • Chair Monthly Executive Review Board meetings and provide guidance to Program Team • Approval/Guidance at Designated In Progress Reviews • Implementation, Data Capture and Analysis as required by Project Team www.tmgva.com