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Training Pays Off For Manufacturer

Posted by aj Aug 13, 2008

"Business growth isn't random."

That's one of my favorite quotes, from manufacturing pundit overall bad cat-daddy Doug Hall. He was quoted this past March addressing a group of manufacturers in Rockford, Illinois - considered by many the cradle of the machine tool business in the U.S.

I was reminded of that quote when I read "Manufacturer Finds Certification Pays Off" from the Olympian. This story documents the investment in training personnel made by Wisconsin-based manufacturer Federal Tool & Engineering. So, what's the story in that?

Federal won work worth $1.5-million (US) directly due to its commitment to training.

What clinched the recent deal ... was that the customer could have confidence that Federal Tool has at least six employees certified by the American Welding Society to aptly weld a variety of materials of various thicknesses. "Anybody can buy the equipment," says Federal's owner. "We're willing to invest in the people and develop the training."
And what really caught my eye was where Federal is based.

Wisconsin.

It's a familiar theme for manufacturing SMBs in the U.S. Wisconsin just seems to "get it" in regards to growing and protecting its manufacturing base - at least, more than most other states.

"In many ways, Wisconsin is the leading state," Leo Reddy, chief executive officer of the Virginia-based Manufacturing Skills Standards Council, said before a recognition ceremony last month at Federal Tool. Reddy cited Gov. Jim Doyle's commitment to have 40 percent of Wisconsin's manufacturing work force complete at least one component of the certification by 2016. Thanks in part to state grants to technical colleges and workforce development boards, Wisconsin also has one of the best systems for assessing worker skills and providing standardized training, Reddy said.
But one thing that Wisconsin has in common with many other states is something not to be so proud of:

None of the four employees receiving their certificates for manufacturing skills training had received any such schooling before they began factory work. All agreed that what they learned is essential knowledge for manufacturing workers now.

As with most states, "essential training" isn't readily available. What a shame. Add to that the fact that the Federal employees who were certified represented the training they received as high-end in important categories - process/production, puality, computers, communications, math and science, to name a few.

Hmmmmm. Maybe training your people can pay off.

Go figure.

HAT TIP: Kid Rock



Aug 13, 2008 8:10 PM Click to view no1toolmkr's profile no1toolmkr

I've been down this road. paid the guys extremely well invested in their training heavily. only to be told I'm not doing it like the other shops. Granted I'm not like other shops here I wasn't training them to sit on and run the time off on one CNC machine I wanted them skilled enough to run all the equipment well and be able to bounce from machine to machine as needed follow through on a project no matter which machine they were needed on. Thats what a tool room is all about. having people skilled on lathes mills 3 axis 4 axis what ever. The guys just want to sit on one machine and take advantage of all they can get, and soak up all the payroll they can get me for. I'm not certain training alone is the answer. Mitch wrote a blog I read not to long ago wanting to know what happened. wheres this entitlement society come from? it is so destructive.
At this point of the game for all I have invested in people I should have 12 or more people on the floor and a huge anual revenue. They say its me I'm not willing to give them more and more of the pie. I say its them their not willing to actually work for their paycheck, they just get it if they work for it or not. Mitch wrote "run your business like a team and not a family". I say it doesn't quite matter anymore your not going to get the devotion from the employees you need. they are too spoiled on union wages and benifits. with todays technology there is more than one way to get this done and there is more than one way to rid yourself of employee's all together. I've pretty much had it with the whole idea of training and employees. I'm not entirely certain employees are apart of the future of manufacturing anyways so why not start early.
lets automate to the maximus and drive down the costs of product till anyone with employees trained or not, foreign or domestic is completely out of business, wouldn't that be adding value to my business?
people make mistakes, they get hurt and they reqire a living wage if they are to give you their time. If we eliminate them we have eliminated almost all that could possibly go wrong with a job and that makes doing business with me benificial to a buyer not how many trained people I have on staff.
Or am I wrong in my thinking?

Aug 14, 2008 9:05 AM Click to view aj's profile aj in response to: no1toolmkr

I don't think you're necessarily wrong in your thinking. But I do think there are solutions that work for one business that don't work for others. Company's that define and approach growth as long-term will put a different priority on things like training. A corporate culture may vary from an entrepreneurial culture. And I've seen both scenarios succeed, and both fail.

Ultimately, though - a foundation of lean manufacturing is to support and value people. The principle is founded on the belief that people think, and robots don't. Automating the process is all good - but overlooking the value of human intervention can directly impact value in the product. Toyota manages to value its people without perpetuating the sense of entitlement that you and Mitch lament. It's hard to argue with lean as a manufacturing principle, especially in a larger manufacturing enterprise.

What I'm saying is there has to be balance, and it's up to the owner or principal to set that course and reap (or suffer) the rewards.

Aug 14, 2008 10:15 AM Click to view no1toolmkr's profile no1toolmkr in response to: aj

Now that i totally agree with. I have no problem valuing my employees and I havn't got rid of them all. But I did get rid of my senior toolmkaker that I depended on. He definately had the entitlement thing happening and bucked me on everything I tried to do to automate and speed up the process. allthough talented but slow on manual equipment he had a problem with computers and the way I was steering my shop. Just couldn't make the jump to CNC the process of the toolroom no matter how much I spent training him. Not because he couldn't but because he didn't want to aply himself to a new way of thinking and that was his demise. I had another employee that was working out but when He seen that I let the senior one go he left shortly after on his own after realizing that he was going to be expected to run and program multiple machining centers and not get to sit on the one he liked.
Yes for the time being people can make decisions and robots can not. however the darn things are becoming more and more capable everyday, and if you think open sourcing through to its end then you may realize its going to be the beginning of the end for people on the manufacturing floor.
When you take out the ability of people/corporations to profit from their products service there will be only one way to benifit from manufacturing.
The tool room has been and will continue to be manufacturings crutch. It supports it. now that production manufacturing has went overseas for cheaper labor and now to complete automation. The tool room can not use cheaper labor. It must make the jump to automation and thats going to mean the robot has got to think because the tools it needs will be open sourced.

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