Proactive Technologies Report – July 2016

“Full Job Mastery” means “Maximum Worker Capacity” – DeanA Verifiable Model for Measuring and Improving Worker Value While Transferring Valuable Expertise 

By Dean Prigelmeier, President of Proactive Technologies, Inc.

It is no secret that with the traditional model of “vocational” education, the burden of the job/task-specific skill development falls on the employer. It is not economic feasible nor practical for educational institutions to focus content for every job area for every employer. So they, instead, focus rightly on core skills and competencies – relying on the employer to deliver the rest. This is where the best efforts of local educational institutions and training providers begin to break down even if highly relevant to the industry sector.

Employers rarely have an internal structure for task-based training of their workers, so even the most aggressive related technical instruction efforts erode against technological advances as every month passes. If core skills and competencies mastered prior to work are not transformed quickly into tasks the worker is expected to perform, the foundation for learning task performance may crumble through loss of memory, loss of relevance or loss of opportunity to apply them.

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New workers routinely encounter a non-structured, rarely focused, on-the-job training experience. Typically, the employer’s subject-matter-expert (SME) is asked to “show the new employee around.” While highly regarded by management, the SME (not trained as a task trainer and having no prepared materials) has difficulty remembering the nuances of the tasks when explaining the process to the new employee, since that level of detail was buried in memory long ago. Each SME, on each shift, might have a different version of the “best practice” for processes, confusing the trainee even more – rendering the notion of “standardization” to “buzzword” status.

New employees have difficulty assembling, understanding and translating the disjointed bits of recollection into a coherent process to be replicated. Each comes with their own set and levels of core skills and competencies, and learning styles vary from the self-learner/starter to the slow-learner worker who, with structure to make sure they learn the right best practice, may become loyal workers.

The more time the SME spends with the new employee in this unstructured, uncontrolled and undocumented experience, which is the prevailing method of on-the-job training, the more the employer is paying two people to be non or minimally-productive. Adding employees can actually lower short-term productivity and add little to long-term productivity for an organization, but the costs will attract notice internally.

However, this only describes the costs of inadequate new-hire training. What about the incumbents who made it through the process and are part of the staff? Does anyone know which tasks have been mastered or not? No structured on-the-job training system in place implies no records of task mastery or metrics of worker capacity, therefore no methods for improving worker performance. Read More


Retiring Workers and the Tragic Loss of Intellectual Property and Value

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

The warnings went out over two decades ago. Baby Boomers were soon to retire, taking their accumulated expertise – locked in their brains – with them. But very little was done to address this problem. Call it complacency, lack of awareness of the emerging problem, disinterest or disbelief very few companies took action and the Crash of 2008 disrupted any meager efforts that were underway.

According to Steve Minter in an IndustryWeek Magazine article on April 10, 2012, “Only 17% of organizations said they had developed processes to capture institutional memory/organizational knowledge from employees close to retirement.” Who is going to train their replacements once they are gone? Would the learning curve of replacement workers be as long and costly as the retiree’s learning curve? Would operations be disrupted and, if so, to what level?

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“In our new “outsourcing nation,” a widely held belief is that employees are simply costs to be cut and not assets to be valued.” …. “Manufacturing faces a two-sided problem: it not only has thousands of people retiring, but it does not have the training programs to train skilled workers to replace them.”

Michael Collins
A Strategy to Capture Tribal Knowledge
IndustryWeek 5-23-16

In the last few years, it seems an alternative to the concentration of expertise in a few subject matter experts has become to use lower-wage temporary or contract workers who specialize in smaller quantities of processes, and who can be “traded-out” with a minimum amount of disruption. History will tell us just how costly that approach was and if anything was learned. h. Read More

Vocational Training in High Schools – A Model the United States Should Revisit: Part 2 of 2

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In Part 1 of “Vocational Training in High Schools – A Model the United States Should Revisit” in the June, 2016 issue of the Proactive Technologies Report, a personal experience of vocational and community college program completion was discussed. The point was made that the high school vocational training programs of the past, which was phased out in the 1980’s while schools faced budget cuts, seemed closer to a European educational system approach and offered a relevancy to local employers that nationally coordinated efforts of today do not.

The 1980’s saw the beginning of the proliferation of computers in personal lives and business. Machines were being retrofitted to be run, in part, by PLC (“programmable logic controller”) programs and new machines were being designed around it. Even the most mundane tasks, such as writing correspondence and processing a business transaction, was being automated. As the technology, with all of its promise, was understood and absorbed the rate of technological innovation accelerated – creating an increasing gap between 2 and 4-year educational curriculum and industry needs.

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In order for a textbook to be integrated into a technical or career education program, someone from industry would have to write it. The textbook would have to be published, it would have to be marketed, vetted by the curriculum or book review committee and issued during an upcoming semester. Then someone would have to schedule the class and complete a 2 or 4 year program. That is 2 – 3 years for a book to be written plus 1 – 2 years to publish the book plus 1 year for the book to be marketed plus 1 year for the book to be accepted by the review committee plus 2 – 4 years for a student to complete the program. It is easy to see that the latest and best content might yield a graduate 7 – 11 years behind the current needs of employers. Read More


Differences in Job and Task Analysis Methodologies

by Dean Prigelmeier, President of Proactive Technologies, Inc.

There are many forms of job analysis today, each with its unique outcome, its own taxonomy and methodology. Depending on the needs of the job analysis data user, any type of output can be derived.

Job analysis can be defined as “the process of collecting and verifying information about the job.” Any job classification may have numerous components, such as duties, tasks and sub tasks. The best way to identify each is to break it down into its components. Approaching an analysis in any other way may prove frustrating and the output unreliable. In addition, when analyzing multiple jobs, tracking progress in any one of them may be difficult unless a defined, analytical method and taxonomy is established, and systematically applied.

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The chart illustrates several popular types of analysis – from the position-specific to the standardized, general information; from those that provide data about the work and those about the worker. Most of the methods of job analysis today have limitations and tend to have “single-purpose” outcomes. Some that are survey oriented methods allow for more subjectivity and may diminish the usefulness of the data. The more technical the requirements of a job classification (e.g. classifications in manufacturing, chemical operations, healthcare) the less subjectivity may be tolerated. This type of analysis is easier to administer and seems to be a “quick and dirty” solution, but seldom gives the level of detail necessary to identify complex job qualifications or process-related training and testing criteria. Read More

Read the full July 2016 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – June 2016

Eroding Organizational Capacity: The “Unstructured, DeanHaphazard and Ad Hoc Task Training Effect”

by Dean Prigelmeier, President of Proactive Technologies, Inc.

If you work long enough for a variety of employers, there is one theme that seems to run common to all – the lack of structure to the all important job-based training that one would expect. Often we are shown our workstation, introduced to the area manager and then we wait for some guidance and training for what is expected of us. Sometimes we wait in vain. Sometimes we are subjected to bits and pieces of information and take it upon ourselves to make sense of them rather than wait.

None of our core skill bases and work-based task mastery history are, alone, sufficient enough to substitute for the need to know the best practices for performing the tasks for which the new employer hired us. If an employer hires a new employee not having a structure to quickly transfer job expertise from the incumbent experts to the new-hire, it is fair to say this runs counter to good business practices and economic principals. Yet unstructured, haphazard and ad hoc task training is the norm.

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“Only 17% of organizations said they had developed processes to capture institutional memory/organizational knowledge from employees close to retirement, while just 13% said they were providing training to upgrade the skills of older workers.”
IndustryWeek Magazine April 10, 2012 by Steve Minter


We all know that inaction to rectify this doesn’t make sense, but many managers dismiss the concern and take comfort in group-thinking, “this phenomenon is the norm, why not apply my efforts elsewhere since I will not be judged on something that appears to others to be beyond my control.” Some see a problem because this deficiency has become the norm. Others see it more critically as a threat to current and future organizational capacity and competitiveness and would be receptive to the following discussion.  Read More


Cross-Training Workers After Lean Efforts Builds Capacity Using Existing Staff

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

Lean activities to redesign processes for better efficiencies in a department, or between departments, sometimes result in “surplus” workers – partially or in whole units. It is the subjective priority of Lean practitioners since it is a tangible illustration of a successful Lean improvement. Processes that previously needed 3 people to complete may now only need two, if the efficiencies were discovered. So what happens to that one person that has valuable acquired expertise, representing a significant investment by the employer? Would the wise outcome of Lean efforts be to just cut that person from the lineup?

The short answer is most likely not. Any efficiencies and cost savings brought about by the Lean redesign would be offset by the loss of the expertise for which the investment has already been made. Most likely the reason for the Lean was not in reaction to no return on worker investment, but rather a desire to increase the return on worker investment.

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If the worker is reassigned to another department, and no task-based training infrastructure is in place, that reassignment may lower the efficiencies there which, again, reduces the gains made by the Lean effort. So part of the Lean effort must be the deliberate cross-training of workers in temporary assignments or longer-term reassignments to other departments that seem to have the need for increased staffing, perhaps as a result of the increased throughput achieved from the Lean effort in the upstream department in the chain. Read More


Regional Workforce Development Partnerships That Enhance Economic Development Efforts

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Most area economic development goals are simple; expand the tax base so revenue is available to maintain and sustain the local socio-economic system. Strategies to accomplish this may differ but often include adding to the employment base of the community and/or region, since an effort to expand consumption – mandatory and discretionary – produces a “multiplier effect” as money circulates through the community. This goal can be reached by local and state governments offering tax abatement, cash and/or infrastructure improvements to companies seeking to relocate, or which are in an expansion mode. At least that was the simple vision of economists past.

It is fairly a proven fact, however, that in the past two decades the results of these tactics have become mixed as large corporations became larger and used their clout to seek incentives and cheap labor throughout the world. Commitments to local communities providing the incentives often evaporated faster than the ink on the documents dried, and corporations hopped from state to state, country to country, upsetting the stability of local tax bases, economies, communities and regions.

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Economic development agencies and government leaders have always talked about helping locally grown enterprises which create an estimated 70-80% of the new jobs in the country. As they start, grow and expand they would hire more, provide more in taxes and be more likely to stay put. As large corporations gained more control of the policies and policy makers of the states and the federal government, the focus drifted away from local small and mid-size businesses and toward policies and strategies that helped large corporations at great expense. Read More


Vocational Training in High Schools – A Model the United States Should Revisit and a Lesson From the Past

by Dean Prigelmeier, President of Proactive Technologies, Inc.

I know this dates me, but in high school in the 1970’s I participated in a very good vocational electronics program. It was 2 ½ years in length and was conducted in addition to the traditional high school curriculum. I felt fortunate to attend and complete the program, as did my friends who were enrolled in electronics and the other craft training programs such as automotive, drafting (precursor to CAD-CAM), metalworking, welding and woodworking. Each one of us in the vocational electronics program went on to achieve higher degrees and/or successful careers after receiving our certificate of completion at graduation.


“…my point is this and begs the question every technical school graduate asks themselves even today, ‘How can I be marginally or completely obsolete 2 weeks after graduation”


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Looking back, I am still impressed with the quality of the program. It was closer in purpose to the European style of education and apprenticeships. The electronics program was state-of-the-art along with the instructor’s delivery of industry-relevant content supplemented by guest speakers from industry with current topics. Our high school vocational students, as with others in each state, even competed with community college students across their state to test our skills in Vocational Industrial Clubs of America (“VICA”) competitions for the right to represent the state at the national competition. That is how good our high school vocational program was; comparable to community college levels of learning. Since prior to the advent of microprocessors technology advanced at a slower pace, the vocational electronics training programs at that time trained students for local jobs that were currently in industry very well, which was exactly their mission. Read More

                


Read the full June 2016 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – May 2016

Appreciating the Value of LaborDean

by Dean Prigelmeier, President of Proactive Technologies, Inc.

For expanding and improving businesses that have the capital for the investment in new equipment or processes, attempting to become or remain competitive, the level of investment is not as important as the return on that investment. This consistent practice of determining where to best place capital for the highest return should apply to labor. What is “paid” for labor is not as relevant as the value it adds to the operation and, ultimately, profit; the return on worker investment.

The lack of appreciation for the difference in “training cost” and “training investment”  is understandable because it is rarely contrasted. The college textbook entitled Financial Accounting: An Introduction to Concepts, Methods and Uses, defines “direct labor cost” as the “Cost of labor (material) applied and assigned directly to a product; contrast this with indirect labor cost.” Indirect labor cost” is defined as, “An indirect cost of labor (material) such as supervisors (supplies).” There is no mention of an expected return on investment. Generations of cost accountants have been taught that there is no good that comes for higher labor costs, which to them is determined by the level of staffing and wage levels. There is no differentiation between strategic labor costs and uncontrolled labor costs.

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The profit from, and value of, most worker’s labor comes from task-based work, so all inputs that drive workers to high-performance, high-capacity output are investments.


As discussed in many articles in past issues of the Proactive Technologies Report, although labor costs are considered direct costs from an accounting standpoint, they should be more importantly considered as an investment in the operation’s overall level of competitiveness. Operations may vary as to the level of return on investment from labor, but each worker’s cumulative expertise gained while employed becomes an asset to the operation akin to intellectual property and, therefore, wages and compensation paid to develop a worker is an investment.

As many operation managers have found out, drastic moves like reducing the wage rates by 20%, 30% or more, while expecting to maintain the same output quantity and quality, chases off the workers with the gained technical expertise…because they can leave. The investment is lost and so are any returns. Furthermore, it is difficult to find new candidates who are willing and able to “hit the ground running” for an unreasonably low wage rate. And if a good candidate for employment is found and selected, bringing their productive capacity up may be delayed or hindered by the fact that the remaining “subject matter experts” are not as capable of transferring expertise as the technical experts that were driven away. Read More


Who is Responsible for the Shortage of Skilled Labor?

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Some critics say that employers have repeated the phrase, “we just can’t find skilled workers” to ease their guilt from outsourcing good paying jobs to lower wage labor markets. Some say they say this to justify low wages in the U.S., and some say it is to make the case to congress that the worker visa programs need to be opened up to allow technically skilled foreign workers who are willing to work for a reduced wage enter the labor market. While all of these may be true or could have been true at one time, no one doubts that the affects of the past few decades have greatly disrupted the continuity of a strong U.S. labor force and its ability to advance.

In an article written by Michael Collins for Industry Week last year entitled “Why America Has a Shortage of Skilled Workers,” the author makes a convincing argument that the so-called shortage was in large part self-inflicted. This article should be on every manufacturing operation manager’s, every accounting department manager’s and every corporate executive’s reading list.

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“Year after year, the large corporations have invested in more automation and complex machinery to eliminate labor, but do not seem to want to invest in the comprehensive training programs that will increase the skill levels of employees to maintain, troubleshoot and repair what they have installed.”


In an example of the misunderstanding of the value of labor he notes that, “Year after year, the large corporations have invested in more automation and complex machinery to eliminate labor, but do not seem to want to invest in the comprehensive training programs that will increase the skill levels of employees to maintain, troubleshoot and repair what they have installed.” I would add “operate” to that list. Read More


“Realistic Job Previews” Can be a Useful Tool for Measuring a Prospective Employee’s Transferable Task-based Skills       

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.                                              

The hiring process can be difficult for both the employer and the prospective employee. A wrong decision can cost each party a lot of time, money and opportunity. An unwanted outcome based on the employer not providing an accurate picture of the job, work environment and work expected to be performed can be avoided with a “Realistic Job Preview.” (“RJP”).

Wikipedia points out that “Empirical research suggests a fairly small effect size, even for properly designed RJPs (d = .12), with estimates that they can improve job survival rates ranging from 3–10%. For large organizations in retail or transportation that do mass hiring and experience new hire turnover above 200% in a large population, a 3–10% difference can translate to significant monetary savings. Some experts (e.g., Roth; Martin, 1996) estimate that RJPs screen out between 15% and 36% of applicants.

When RJPs are less effective, “According to researchers there are four issues that challenge RJP:

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1. Recruiters do not share RJPs during interviews. (Rynes, 1991)
2. The nature of “realistic” information shared (in lab research or in the field) is unclear (Breaugh & Billings, 1988)
3. Not asking the right questions.
4. Applicants consistently report desiring more specific, job-relevant information than they commonly receive (Barber & Roehling, 1993; Maurer, Howe, & Lee,1992) Read More


A Simple Solution to Skill Gaps – New-Hires and Incumbents

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Proactive Technologies, Inc. has worked with many employers over the years, establishing cost-effective, task-based structured on-the-job training programs. For each employer, every effort is made to tailor the worker training system to accommodate the employer’s budget, job classifications (even unique training programs for each job classification in each department), business goals and manage the system through all types of change. Unlike some products or services that require the employer to change practices that work in order to utilize them, the PROTECH© system of managed human resource development  is built around what is working for the employer, incorporating established information such as work processes and specifications, safety standards, quality standards, etc. This approach minimizes the need for the employer’s culture to drastically change what works for them, focusing instead

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There is no doubt this approach is effective. After all, what is better: unstructured and haphazard worker training that cannot be explained, measured, improved or understood, or structured on-the-job training for all workers that is easily measured, implemented, improved and explained to auditors?


on improvements in an area of weakness. The main steps used to build an employer-based structured workforce development system starts with understanding the desired outcome first:

  1. Determine the Employer’s Need and Agree on Strategy: How has the client been (or not been) training workers until now; what are the current and projected staffing levels for incumbents and new-hires along with attrition rate; is the culture supportive of training workers and see it as vital to competitiveness; are any task-based documents available and are they in use (e.g. work processes, quality standards, safety standards); which jobs are targeted and why; is the company following any quality mandates, such as ISO/TS/AS and do they have any quality programs underway such as LEAN, Six Sigma; what is the budget for setting up the structured on-the-job training program and implementation. A strategy encompassing all of these points is prepared for the employer before an agreement and timetable is confirmed. Read More

 


Read the full May 2016 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – April 2016

Is an Apprenticeship Without Structured On-The-Job Training an Apprenticeship?Dean

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Career and vocation-focused training is a pivotal point in every current and future worker’s life. This world is overwhelmed by forces that make the effort more difficult for the education and training providers, more urgent and critical for the learner, more scrutinized by the employer and constantly measured against time; how long the training takes (which determines costs) and the relevance of the skills acquired to the targeted job which is always moving to the next level of technology. If the training is not “continuously improved” and maintained to be predominantly current and accurate, the graduate may find that jobs for which the new-found skills were targeted now marginally or, even worse, no longer exist.

In theory, apprenticeships offer a promising approach for traditional trades and crafts. As of 2008, more jobs can be registered as apprenticeships with new models accepted by the U.S. Department of Labor. If the program is based on a sound structure and methodology (one that can work for any type of job classification), an apprenticeship capstone – the job-related, employer-based training – would be maintained current and accurate for at least the employer apprenticeship host. Without this component, an apprenticeship experience may be as hollow as some of the for-profit educational chains which are often criticized for high costs and low placement rates. Read more.



How Start-Ups and Technology Transfer Partnerships Can Benefit From Structured On-The-Job Training

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

In the December, 2105 issue of Proactive Technologies Report article entitled “”Enterprise Expansion/Contraction and Worker Development Standardization” this topic was touched on as it explained the process of standardizing training for expanding, contracting, merging and acquiring enterprises. It discussed how to take inventory of incumbents and new-hires in training, and how to standardize multiple worker development strategies. But what about standardizing tasks that are in design, have just been designed or are evolving in their design? Or the importance of this component in creating an enterprise to perform the tasks meant to lead to profit from an innovation? If the goal is the repeatable high-quality performance of tasks once they have been formalized, then standardizing and documenting the procedural steps is necessary, though often an afterthought.

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Entrepreneurs and engineers that design and fine-tune a production process or service strategy are immersed in it until they feel confident it is ready for scaling. Whether through “expert bias” – the overconfidence that results with satisfaction in discovery leading to the opinion that everyone should understand their innovation – or through mere oversight, a brilliant idea can fail in proliferation during efforts to transfer the processes and techniques without a formal structure. Read more.



Worker “Prior Learning Assessment” – Documenting Cumulative Work Skills and Knowledge Acquisition

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Older workers, boomers, generation X’ers and Millennials, have either encountered or seen the point on the horizon when they may be separated from their job and need to sum up the training, education, skills and experiences of the last years, or lifetime to date, in a one or two page resume as they hunt for the next open position. How does one accurately and adequately summarize 5, 10, or 40 years of experience so the next potential employer can recognize the value and determine the fit to their organization’s needs? Can a person profile their life experiences and skill acquisition in a way that is complete and compelling?

For the last 20 years, many employers have used a “key-word” search filter to scan resumes, disqualifying millions of potential workers for not knowing the right words to match the key-word to explain their experience. Now that a vast majority of employers have realized the deficiencies of resume scanning programs – disqualifying well-qualified candidates for one – they are back to looking for substance in the resume to be substantiated at the interview. Being able to succinctly and completely summarize one’s education, training and work experience is more important than ever as more qualified people compete for fewer quality jobs.

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The new generation of high school graduates will encounter the same challenge, but unfortunately have less content to draw upon. But from the moment they enter the workforce they are adding value to their personal portfolio for every seminar they attend and every job for which they obtain and apply new skills and master new tasks. For every type of worker this “accounting” represents their value to their current and future employer and vital to maintaining their place in the economy.For many, they have yet to take an inventory of their personal worth and “intellectual capital,” and have failed to clearly detail it for anyone else to accurately sense the same value. Many have never even thought about it until pushed to take an inventory or explain their worth through job loss? Read more.



Piece-Part Incentives Gone Wrong

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Sometimes we are tempted to take the easy route, even though it may cost more in the end, offer much less on the path to the desired outcome or cause us to repeat the effort another way. Shallow analyses and shortcuts often lead to unintended consequences. Changes to weaken metrics to convince us, or others, that progress is better than reality only postpones solutions to the underlying challenge. Too often we are focused on the search for a solution to a symptom and not the problem. The example I am about to share represents all of these tendencies.

As a Quality Control Line Inspector at an aerospace manufacturing facility in my early years, one of my first assignments was to in-process inspect work samples from several rows of NC Lathes, Mills and Grinders. I was assigned there with the implicit instructions to be on the look-out for “problems” identified by management: decreased quality yield, substantially high rates of scrap and rework, which lead to increased worker costs and lower returns. The proposed solution was more rigorous quality inspection of parts in-process before they became a component of an expensive sub-assembly or assembly.

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While making my rounds, meeting the operators and inspecting samples, it seemed I was seeing evidence that management identified the “problem” correctly. I say problem, but my feeling was that I had not gotten to the root cause of what I was observing. I was rejecting parts at nearly every work station, on every pass. I decided to dig a little deeper – get to know the operators a little better to see if I could determine why this was happening. Read more.


Read the full April 2016 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – March 2016

Grow Your Own Multi-Craft Maintenance Technicians – Using a “Systems Approach” to TrainingDave Just Head Shot

Dr. Dave Just, MPACT

Since partnering with Proactive Technologies, Inc. in 1994, together we have advocated the use of a “systems approach” to training that includes a combination of related technical instruction and structured on-the-job training to develop multi-craft maintenance technicians, as well as other job classifications, within a company. This is a viable option to paying thousands of dollars per year to employment recruiters to locate these technicians on a nationwide basis…who still need to be trained once hired.

The systems approach to training, if built correctly for your company, forms the infrastructure of a highly effective, low cost apprenticeship (registered or not) model. This model can quickly and cost-effectively produce the multi-craft maintenance technicians you need, who will be qualified to perform the tasks required at your facility. Based on detailed job/task analysis data – collected by Proactive Technologies’ experts using your internal subject matter experts who have the final review – worker development materials are generated by Proactive Technologies’ PROTECH© software system for immediate use. Most importantly, technical support to the project includes project implementation management, so you can focus on running your business. Read article.



Pay-for-Value Employee ProgramsDean

by Dean Prigelmeier, President of Proactive Technologies, Inc.

Everyone is aware that the United States trade agreements with other countries and regions facilitated a substantial movement of good paying U.S. manufacturing jobs to lower-wage labor markets in other countries. The effect of the loss of middle-income jobs on consumer consumption, and subsequently industrial investment and growth, has been increasing in its significance and the connection to sustained GDP growth has become more evident.

In the short run, a lower-wage workforce reduces direct labor costs and allows corporations to realize higher earnings, but as the lower-wage workers form unions and demand higher pay for their labor those advantages start to diminish. As nations start to codify safety and environmental regulations, the advantages to relocation shrink. After adding in the logistical costs, disjointed supply chain challenges and socio-political instability corporations start to look for even lower-wage labor markets for relocation – a temporary solution.

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It may have seemed to be the only immediate reaction to the need to improve quarterly reports, but what if there was an alternative to relocation? Would an option where the inevitable outcome is simple and predictable be attractive enough? Would a mass exodus of manufacturing jobs even materialize?


“When Proactive Technologies performs a job/task analysis on a job classification for a client to set up a structured on-the-job training program, task-based best practices for all of the critical tasks of the job, one of the next steps of the process is to take inventory of the incumbent workers to identify which of the tasks both the employee and their manager agree the worker has been mastered. This leaves the un-mastered tasks, representing the “gap” to be closed which should be the focus of structured on-the-job training.”


The one example given indeed cuts direct labor costs. The question is whether the NET rewards of any short-term benefit looks as attractive and is sustainable over the long-term. Read article.



Structured On-The-Job Training Programs for Salaried Personnel

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

It is not just the hourly workers that, once hired, run into the “Bob, this is Sally. Why don’t you show her around” form of “training.” In environments where no structure exists to deliberately train hourly workers, supervisors and managers are similarly shown their desk and wished “good luck.”  Yes, the company may offer a series of management courses that explain contemporary management theories, but often the most overlooked training is for the tasks against which performance is ultimately measured.

We frequently hear anecdotal stories about supervisors who are “thrown into the mix” of not only having to lead their workers to measured levels of performance, but concurrently learn their own job from their surroundings as best they can. Other supervisors and managers may be under the same pressure to focus on output, so they may be rarely available to mentor a new manager. Most likely, nothing was ever written down. Even worse, supervisors or managers who are new to the entire operation may have to learn what it is their employees do by observation before they can attempt to lead them to better performance.

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Sounds familiar? It seems to run contrary to all the other business improvement initiatives, such as Six-Sigma, LEAN, Continuous Improvement, Total Quality Management, etc. Do companies have to settle for a “seat-of-the-pants” learning experience for their hourly and salary workers? And could this be a major contributing factor in reduced organizational competitiveness? Read article.



Even Corporate Finance Departments Struggle With the “Skill Gap”

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In a February, 2016 issue CFO Magazine article entitled “All in the Family,” author David McCann discusses the problems facing CFOs regarding “talent management. He identifies four problems they face in looking ahead to the year 2020:

  • 70% of finance positions will experience a change in skill requirements over the next five years. However, HR competency models lag the new skills requirements.
  • Only 36% of employees have a real understanding of internal capabilities. HR can design standard career paths but cannot push employees to the right opportunities.
  • Traditional training only has a 3% impact on finance skill development. Training vendors often fail to apply courses and content to a given team’s day-to-day work.
  • Recruiting is not able to identify who would be a strong financial analyst beyond backgrounds and accreditation, limiting the scope of potential strong ties.
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The article’s author goes on to discuss the virtues of “renting expertise” versus building capacity, but does not really go into detail on how a CFO would build capacity.

The predicament described is not a new one. It is the same gap that has grown with regard to manufacturing skill gaps of production workers. This is further evidence that gaps have grown in the areas of engineering, technical management and, yes, finance as well. Read article.


 

Read the full March 2016 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – February 2016

Recurring Training Cost vs. Decreasing Training Cost

by Dean Prigelmeier, President of Proactive Technologies, Inc.Dean

There is no way to avoid the recurring costs of classroom or online-delivered training. Historically, classroom training has been priced on a “per seat” or “per event” basis. It is model that has continued to today. Many online courses have used this pricing structure, as well, probably because it is familiar to everyone. Some online training providers offer “block pricing” based on number of course credits offered or “subscription pricing” based on the number of attendees during a set time frame. Nevertheless, these are recurring cost models given thorough scrutiny by accounting departments for evidence they are necessary and “add value to the business model.”

In the November and December issues of the Proactive Technologies Report’s two-part article titled, “Costs Associated With Unstructured, Haphazard Worker Training,”  I touched on the notion that there is another approach to worker development that can clearly be seen as more of an investment than recurring cost. It is the formation of a job task-based, structured on-the-job training infrastructure that, once established, has declining per person costs for each additional trainee.

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All factors considered, this is more like a “return on worker investment” model.


Training is occurring at all corners of an operation, all the times, whether anyone is aware or not. One person shows another person how to perform a required task of the job. It is often hard to see, hard to explain, hard to control for consistency and hard to document since it operates on a ad hoc, haphazard and unstructured basis. Miraculously it produces some skilled workers or we would not see any product or service output. But I believe everyone instinctively sees this as nothing more than a “seat of the pants” approach with malperformance as the only metric of ineffectiveness – which can be costly.

By simply structuring the unstructured an employer can take that which has marginally worked and make it deliberate, measurable and controllable. Read more.



Training The Skilled Labor You Need – An Investment That Keeps on Returning

by Dean Prigelmeier, President of Proactive Technologies, Inc.

In a recent Manufacturing Institute-Deloitte survey, 82% of manufacturers surveyed reported encountering a moderate or serious shortage of skilled workers to fill their positions.Over the next decade it is expected 3 ½ million manufacturing jobs will likely need to be filled. Skill gaps are expected to result in 2 million of these jobs remaining unfilled. More than 75% of manufacturers report that the skills shortage has hampered their ability to expand and 69% of manufacturers expect the shortage in skilled production workers to worsen.

In a recent article in IndustryWeek by Glenn Marshall – formally with Newport News Shipbuilding – entitled “Closing the Nation’s Skills Gap, Marshall discusses a program used during World War II to rapidly develop the skilled workers needed to quickly ramp up U.S. manufacturing to meet the needs of the war effort. Obviously there was a shortage of skilled workers; U.S. manufacturing had never been required to produce at such levels. In many cases workers were using new technology, so skilled workers could not possibly be available. The need was exacerbated by the fact that the world was in crisis. Read more.



Internships of Value – For Employer AND Intern

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

In my college years, a number of my classmates participated in internships in an effort to gain real-world work skills and experiences, and to be able to add a line to their resumes. Over the years when we compared notes, it seems the results varied from company and by job area. But the common sentiment was that the experiences were not as helpful to building workplace skills and personally fulfilling as they could have been.

According to a NACE (“National Association of Colleges and Employers”) 2015 survey entitled “Internship & Co-op Survey,” “The primary focus of most employers’ internship and co-op programs is to convert students into full-time, entry-level employees (70.8 percent and 62.6 percent, respectively).”  So, it appears most employers view internships as a potential recruitment tool and a way of evaluating candidates for employment.

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“Shadowing” without being able to touch and interact can be done with a DVD at home. Fetching coffee and making sure the break room is stocked with paper plates and napkins do not test the skills developed after 12 years of educational learning and 2 or 4 years of technical and academic study. Do not get me wrong, those who were paid while interns are appreciative for the opportunity and the resume line. However, they all seemed to wish they could have been able to learn and experience more. Read more.



Task-Specific Performance Reviews – An Accurate Metric for a Structured On-Job-Training Outcome

by Dean Prigelmeier, President of Proactive Technologies, Inc.

We have all been through it. For decades this has been the topic of comedy shows and movies…the dreaded annual performance review. And when it is over, we might tell our confidants how non-reflective of reality and unfair it was. We calm down over the next few months and grow more anxious each month as we get closer to the next one thinking we are at its whim.

Why are they used? Are they supposed to be a good measure or performance or just a way to meet a human resources department obligation. More times than not they seem like a justification for not giving a wage increase than guidance on how an employee can continually improve and contribute to the organization.

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It is bewildering why management would spend the time and money, and risk employee morale time and again, on a employee measurement that isn’t.


Conceptually, the performance review has a purpose. It is to measure employee performance during a review period, identify areas of weakness and strength, and offer guidance on how an employee can improve on shortcomings and expand potential. But that is only possible if it is accurate to the job classification against which an individual is measured. Read more.



Use Business Cycle Lulls to Develop Unused Worker Capacity…With Minimized Costs

by Dean Prigelmeier, President of Proactive Technologies, Inc.

For those of us who have been around a while, business cycles come and go. Yes, there are the not-so-typical but horrific business disruptions like the S & L Crash of 1986, Stock Market Crash of 1987, Dot.com Crash of 2000, and the Crash of 2008 (with scandals like the SBA and HUD woven in between), but if a business is run sharply and lean enough to survive these disruptors they most likely focus on using the downward part of the a busy cycle to perfect their operations, build capacity and prepare for the upward part of the cycle.

One important business asset is often overlooked in this preparation. A lot can be done to build and increase worker capacity (during a period when workers are paid to perform at less than capacity) so that they, too, are ready for a sustainable recovery on the upward swing. An employer is paying labor costs for each worker it retains through the slump anyway. Why not utilize every labor dollar spent in a downturn to make it worth more on the upturn? Read more.


Read the full February 2016 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – January 2016

Special Offer to South Carolina Manufacturers – REMINDER – Deadline Approaching!FlagofSouthCarolinastateflag

Proactive Technologies, Inc. announced in November, 2015 a special opportunity for South Carolina manufacturers who, prior to the “Economic Crash of 2008-2011,” participated in a structured on-the-job training program through one of the UpState community or technical colleges. The response has been exciting! Proactive Technologies developed the materials for the structured on-the-job training program – many registered as apprenticeships – and is in a unique position to provide an economical “quick restart” to the worker training program and support for the program’s continuation, which in each case was structured to the actual tasks employees are required to perform.

Proactive Technologies would like to suggest, for those of you who are interested but have not yet responded, that you express your interest in the discount program before this offer deadline of January 15th is reached. This will allow your company more time to schedule an online teleconference presentation (see schedule and instructions below). You should have received an email detailing where we left off on your organization’s program. Contact us at our website if you need it resent.

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Once we have discussed your project status and recommendations of what we can do get your project going within your budget constraints, Proactive Technologies will quickly follow-up with a proposal – including any potential South Carolina grants that may help defray your project cost or reimburse you for the training activities as we “pick up where we left off.”

In addition, for any South Carolina manufacturers who haven’t yet experienced the PROTECH© system of managed human resource development, we have a great offer for you as well. Read more.



Standardizing “Best Practices”

Dean Prigelmeier, President of Proactive Technologies, Inc.

When it comes to the term “best practices” for process-driven tasks, there seems a wide range of understanding of the concept; some better than others. According to Wikipedia, “A best practice is a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark. In addition, a “best” practice can evolve to become better as improvements are discovered…Best practices are used to maintain quality as an alternative to mandatory legislated standards and can be based on self-assessment or benchmarking.[1] Best practice is a feature of accredited management standards such as ISO 9000 and ISO 14001.[2]

This credible definition of the concept is representative of a consensus opinion that I have seen in the field at organizations who strive for high quality performance. However, how many individual interests derive their best practices, or what they display as their best practices, seems often to operate at the edge of the definition yet close enough to claim that best practices have been achieved. In truth, proclaiming a process as a best practice may be soothing to the locals, it may not have the same credibility with clients, potential clients or auditing agencies.

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There are few steps that can help any organization achieve a best practice, which is related to the quality assurance notion of “repeatability.” Each systematic step is important to ensure credibility of use of the title. In addition, this approach helps to minimize the tendency to over-analyze a procedure and dwell on the least important aspects for benchmarks and metrics. Read more



The Accelerated the Transfer of ExpertiseTM

Dean Prigelmeier, President of Proactive Technologies, Inc

The American Heritage Dictionary defines expertise as, “specialized knowledge or skill; see expert.” Expert is defined as, “Having or demonstrating great skill, dexterity or knowledge as a result of experience or training.” Transferring “expertise” to a new worker is a much different process and experience than simply conveying knowledge. One measure of gaining expertise is the utilization of the knowledge in the skilled performance of a task.

When it comes to task-based expertise, this definition can be applied with a little elaboration. Some examples of technical task performance are: setting up a multi-axis NC lathe to material, machine and engineering specification; welding exotic metals; sterilizing surgical instruments; or troubleshooting an electronic circuit board. These all represent higher order skills developed over time and with practice. Knowledge of “how to” never is enough when it comes to high-order skill requirements of technical tasks. Read more.



Keeping Employers Engaged in Regional Workforce Development Projects

Dean Prigelmeier, President of Proactive Technologies, Inc.

Billions of dollars have been spent on workforce development projects funded by the state and federal governments in the last 20-30 years. However, from the tone of the discussions surrounding workforce development projects and participants today, it seems that the same things that were troubling employers in 1980 are still troubling them today.

Getting an employer to sign up for a grant-funded workforce development project should not be that difficult, if the brands and reputations of the institutions promoting the project are sound, and the project concept appears logical, achievable and will in all likelihood contribute to the employer’s business model. But once the pitch has been made to the employers and the bold outcomes projected, keeping the employers engaged for the duration of the project and beyond can be difficult. Read more.


Read the full January 2016 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – December 2015

HAPPY HOLIDAYSchristmas-images-clip-art-9qkzqc3f
Proactive Technologies, Inc. would like to wish you, your staff and families “Happy holidays and best wishes for a safe and prosperous New Year!”



Special Offer to South Carolina ManufacturersFlagofSouthCarolinastateflag
ProactiveTechnologies, Inc. announced a special opportunity for South Carolina manufacturers who, prior to the “Economic Crash of 2008-2011,” participated in a structured on-the-job training program through one of the UpState community or technical colleges. Proactive Technologies provided the structured on-the-job training component and is now offering a special discount offer to “pick up where we left off.” The offer has been extended to January 15th, 2016. In addition, for any South Carolina manufacturers who have not yet experienced the PROTECH© system of managed human resource development, we have a great offer for you as well. Read more.



Costs Associated With Unstructured, Haphazard Worker Training (part 2 of 2)

Dean Prigelmeier, President of Proactive Technologies, Inc.

The November issue of Proactive Technologies Report’s Part 1 of “Costs Associated With Unstructured, Haphazard Worker Training,” offered a number of examples of unstructured, haphazard and ineffective worker training that I experienced in my early years in manufacturing. We all have had similar experiences throughout our lives to draw on, I am sure. It is still perplexing that – in view of all of the advanced systems, process controls and metrics that keep an enterprise operating competitively – management would assume that such a “hands-off” approach to developing the critical worker component wouldn’t detract from the other metrics. Why would management expect anything more than skeptical results?

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New equipment that leads to decreased output, more workers added but productivity and capacity falling, or more workers producing product but most of it going into the scrap or rework bin. All of these counter-intuitive outcomes – signs of inadequate or non-existent task-based training – will eventually grab upper management’s attention!
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It is a given that new technology and equipment are dependent on someone learning to either program, service and/or operate them correctly. The incumbent workers, in the job classification before the transition, are the obvious choices for learning. Conceptually, they were doing the work prior to automation with previous version technology and understand the theory and current best practice of the work to be done. These worker’s attained skills will now be tested against the new skill requirements. Unfortunately, training of current workers for even obvious new technology requirements such as setup, operate and changeover of the equipment, is often overlooked or its significance downplayed. Consequently, often the economic benefits that advances in technology are to provide are marginally, or never, realized despite the costly investment. Read more



Enterprise Expansion/Contraction and Worker Development Standardization

by Dean Prigelmeier, President of Proactive Technologies, Inc

One challenge faced when expanding, contracting or acquiring an enterprise is adjusting the scale of the workforce development strategy(ies) that already exist(s) to the increase/decrease in the number of workers while maintaining a consistent ratio of output, quality yield, safe performance and process compliance. Contrary to an accountant’s perspective on staffing level adjustment, there should be serious consideration given to the range and depth of each worker’s acquired skills; an “inventory” of each employee prior to the official act of expanding or contracting. We take a physical inventory of product, equipment, parts, etc. to assess value, so why would we treat a human asset any different?

Obviously an expansion strategy is different than a contraction strategy, but when it comes to determining the value of a worker it is similar for both strategies. How an organization addresses the development, measurement and maintenance of that value may differ widely. Let’s look at both scenarios. Read more.



Making Worker Training Comply With Quality Initiatives; The Role of Worker Training/Certification Versus Worker Audit by Quality Assurance

Dean Prigelmeier, President of Proactive Technologies, Inc.

When attempting to comply with the worker training provision of ISO, AS, TS, or NADCAP, it is important to keep in mind the intent of the requirement. The goal should include avoiding an “overshoot” with unnecessary additional work and/or creating an infrastructure that is hard to manage and prone to noncompliance. Often interdepartmental rivalries interfere with logical discussions of how to meet the requirement without creating an internal institution to manage it.

Typically, the guidelines for each of the major quality initiatives listed contains a section that provides a fairly open requirement for worker training to make sure the worker component of the quality system is sufficient to ensure that process-based tasks can be performed as designed. If they cannot, the effectiveness of the rest of the quality assurance system will be thrown into doubt. The section provides enough guidance but places the responsibility on the registrant to end any past practices that were inconclusive and open to questions: Read more.



Read the full December 2015 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – November 2015

Special Offer to South Carolina Manufacturers
ProactiveTechnologies, Inc. announced a special opportunity for South Carolina manufacturers who, prior to the “Economic Crash of 2008-2011,” participated in a structured on-the-job training program through one of the UpState community or technical colleges. Proactive Technologies provided the structured on-the-job training component and is extending a special discount offer through January 15th, 2016 to “pick up where we left off.” In addition, for any South Carolina manufacturers who haven’t yet experienced the PROTECH© system of managed human resource development, we have a great offer for you as well.

Prior to the Crash, Proactive Technologies had set up for many South Carolina manufacturers structured on-the-job training programs (some for multiple job classifications) that were in the process of implementation. This was in combination with related technical instruction to provide the employer and trainees a robust registered apprenticeship program. Some employers reached the apprenticeship registration stage, some had not. With the Crash came changes in client staffing, short-term priorities and workforce development contacts, so several of the programs went dormant though many continued through to today.

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To refresh memories, click on these links for more information:
Proactive Technologies Report – August, 2015
Proactive Technologies Report – Summer, 2008
Proactive Technologies Report – Summer 2007
Proactive Technologies – Spartanburg CC Flyer 2006

A lot of effort went into setting up the original grant-funded program, and together success was reached in… Read more.



Costs Associated With Unstructured, Haphazard Worker Training (part 1 of 2)

Dean Prigelmeier, President of Proactive Technologies, Inc.

I have met with many employers, in most industries, since 1987 when providing technical workforce development services. Often I am led to draw upon my own experiences when I worked in product configuration management, quality assurance, quality control and human resource development positions before starting my own company. After all, it was my frustration with the state of common practices in improving, measuring and managing performance that led me to start my own business. I hoped to help other employers address the issues that I was not allowed to in the positions I held due to interdepartmental friction or strict organizational boundaries associated with larger corporations.

I have many memories from that period, but there is one that continues to perplex me when I see it manifested at companies I visit. Sometimes I get the shivers and a foreboding sense of déjà vu.

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Without exception, management expresses shear excitement when showcasing their latest technology and innovations. Equipment that will do what they previously have been doing but now faster, better and cheaper. New and better “best practices” and processes from continuous improvement efforts. Though impressed, I am reminded of the tradeoffs that must be considered in order to take advantage of the latest technology or process, or risk not realizing the improvement’s full potential.


The question is, “what truly takes less time and keeps costs down; throwing two people together and hoping for the best or a thoughtful, structured and deliberate task-based on-the-job training program for the ‘accelerated transfer of expertise™?”

-from Part 2


Prior to starting my own company, while working at one major aerospace manufacturer in the quality control department, a department meeting was called to inform us that within the week three $500,000 Zeiss coordinate measurement machines were going to be installed. Of course we were excited – this was truly state of the art at that time. The equipment was delivered, carefully installed and calibrated as advertised and each quality inspector couldn’t wait for their turn to learn how to use it. Read More



Education-Employer Partnerships That Work

By Frank Gibson, Program Manager – The Ohio State University Alber Enterprise Center

A lot is being said these days about “employer-responsive” worker training programs. I think all educational institutions want to believe they have all the answers to all of the challenges employers face. Although I have found that we have many of the answers for many disciplines, it is important to realize our limitations and either find other resources to fill the gap or be truthful with the client so that they might look elsewhere for those answers and solutions.

The Ohio State University – Alber Enterprise Center has been around since 1996 and was founded on the premise that we provide educational and technical consulting services to business enterprises throughout our region to help them grow and prosper. Whether to help them train their workers to the latest in technical skills or train their management on the latest management theories and best practices, the Alber Center has assembled an extensive network of institutional and private training providers to meet their needs and have continued to expand our network to help our employer-clients maintain their competitive best.

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While we feel we do a good job of providing foundation skills for all levels of an operation, we recognize that an educational institution cannot, and really should not, provide employer-specific, task-based training. Read more.



When is Illustrating Technical Materials Useful to the Learner?

Dean Prigelmeier, President of Proactive Technologies, Inc.

Technical process documents standardize work processes in an attempt to maintain task performance at a consistent level of output. From organization to organization, process documents may vary in usefulness though required by ISO/AS/TS certification. Some may be too vague, too specific or too cluttered into lengthy paragraphs designed for human error. Nevertheless, the intended purpose is to offer guidance as to the “best practice” way of performing work. Whether illustrating technical documents is useful in achieving that goal is dependent on a few factors.

Technical processes, illustrated or not, are most useful to a worker when learning a task for the first time. Unless in a checklist format where step-by-step initials are required to document that no steps are missed, most process documents are reduced to a “reference status” Even though management and auditors want to believe process documents are followed intently each time, that is usually a “staged” behavior. In reality, once committed to a worker’s memory many documents are not seen by the user until the audit is scheduled. Unfortunate but true.

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Sometimes more diligent workers make up for document inadequacy or lack of process documents by keeping notes in their lunchbox or, more precariously yet, in their head. Heaven forbid this is discovered during an audit. These notes not only are uncontrolled and unofficial, but they represent a wealth of “tribal knowledge” that is not routinely shared with new-hires. Mistakes that are known to have happened, and can be avoided if shared, are repeated with each trainee to everyone’s detriment. The fact that each employee feels the need to keep their own notes is a sign of some problem with process documentation and should be investigated.

Stepping back to get a better view of learning patterns of a typical worker may be helpful. Read more.



OH Incumbent Worker Training Voucher Grants Round 4

by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

A fourth round of the Ohio Incumbent Worker Training Voucher program became available for applications on October 14th. At that time, those employers submitting the grant application would have had the best chance for approval. “Funding approvals for this program will be on a first-come, first-served basis” according to the OH IWT Guidelines.

If your organization was late to the party, there may still be an opportunity for those employers who were not able to conceive a project and prepare an application for grant funding. According to the OH IWT Guidelines, “Once the training funds are completely committed, the Ohio Development Services Agency will hold subsequent applications in a “queue,” in the event that additional program funds become available.” Read More.

Proactive Technologies, Inc. has assisted client-companies to successfully apply for, manage, document and receive reimbursement for almost $2,000,000 in projects in just the last 2 years alone! A substantial amount was reimbursed to the clients by the state to lessen their initial out-of-pocket investment on a project that can lead to maximized results! Click here for more information.



Read the full November 2015 newsletter, including linked industry articles and online presentation schedules.

Posted in News

Proactive Technologies Report – October, 2015

 ATTENTION OHIO EMPLOYERS: 
The OH Incumbent Worker Training Voucher Grants Round 4 Submissions Started October 14, 2015! What Now for Latecomers?
by Stacey Lett, Director of Operations – Eastern U.S. – Proactive Technologies, Inc.

Approximately $20 million in grants were awarded over the last three years by the Ohio Incumbent Worker Training Voucher Program, funded by contributions from the Ohio casinos. The first three rounds of grants targeted critical industries – manufacturing being one of them. A fourth round became available for application building starting September 28th, with a submission start date of 10:00 am ET on October 14th. At that time, those employers submitting the grant application would have the best chance for approval. According to the OH IWT Guidelines, in addition to the quality of the proposed training activities, “funding approvals for this program will be on a first-come, first-served basis.” With over 600 employers being approved each round, anyone submitting an application on October 14th had a better chance of being at the front of the line to have serious consideration before all funds are obligated.

ATTENTION LATECOMERS: There is an opportunity for those employers who were not able to conceive a project and prepare an application for grant funding. According to the OH IWT Guidelines,

“Once the training funds are completely committed, the Ohio Development Services Agency will hold subsequent applications in a “queue,” in the event that additional program funds become available.”


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Even though the OH IWT website states that “all funds have been committed,” they will be reviewing the applications for the next 60 days and many applications may be rejected or the amount asked for scaled back, freeing up funds for the late applicants.So if you are still interested, the sooner you get an application submitted, the better your chances are of qualifying for funds either if some committed funds are released, or new funds are added to the program.
This is, by far, the easiest grant money to use and the paperwork, once set up, is relatively easy to comply. Proactive Technologies, Inc. has assisted client-companies to successfully apply for, manage, document and receive reimbursement for almost $2,000,000 in projects in just the last 2 years alone! A substantial amount of that amount was reimbursed to the clients by the state of Ohio to lessen their initial out-of-pocket investment on a project that can lead to maximized results! Click here for more information.
This is a reimbursement program. Once the employer applies and is accepted, the employer completes the approved training and submits the receipts and rosters to the OH IWT. The employer will be reimbursed for 50% of the cost. If the proposed training isn’t held and no cost incurred, the employer simply has nothing to submit. For Round 4 information, visit the OH state’s website click here.

Apprenticeships That Make Money? Not as Impossible as it Seems (part 2 of 2)
Setting Up an Apprenticeship Center
Dean Prigelmeier, President of Proactive Technologies, Inc.

In the September issue of Proactive Technologies Report, I discussed what seemed to be the obvious differences in European and U.S. apprenticeship models in the article “Apprenticeships That Make Money? (part 1 of 1)“. I suggested that visionary U.S. business leaders consider creating a revenue-generating “apprenticeship center” within the organization to cover the costs of the apprenticeship and, in some cases, make money. How could that be accomplished? In continuing the discussion I would like to offer a possible strategy.

American manufacturers turned to lower wage labor sources, such as Mexico, China and India, during the last 30 years to lower their production costs in the hope that they would be more profitable. It is now understood that with lower wage costs comes additional supply chain costs which can, if uncontrollable, erase some or all of the gains a lower wage level might offer.

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But what if some of the services or operations to manufacture products or sub-assemblies that were, or are to be, off-shored could be done internally – at the labor cost of “training wages” as done in Europe – using equipment that would otherwise have to be idled, sold or shipped? What if those training wages could be furthered reduced by state grants? Could employers find that the source of lower wages is in their own back yard? Although the following approach for determining if an apprenticeship center/cost-reduction center is right for your organization is simple, it should be scalable to any organization with slight modifications. Read More

Training Workers in a Roller Coaster Economy
Dean Prigelmeier, President of Proactive Technologies, Inc.
Often an afterthought, the need for structured on-the-job training is just as critical during a time of contraction as during a time of expansion. During cutbacks in staffing, work is redistributed to remaining employees as workers with expertise are inadvertently let go. Sometimes more attention is paid to worker seniority and wage levels than the potential loss of the accumulated investment in worker expertise and related replacement costs as a result of hasty workforce reductions.

Unfortunately, selling the need for an investment in a training infrastructure can be a harder sell to management who might be reluctant to make the case for fear of being perceived as being too “spend-happy” rather than seen as appropriately proactive. However, if no consideration is given to such planning that fact will subsequently reveal itself later in the form of transition costs – lost capacity and decreased operational productivity.

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“How an organization prepares for change determines if they will survive or succumb to it.”


It can be said that if the organization was running efficiently before a cutback, worker expertise must have helped since the numbers now show that output and yield have been reduced. If the organization was not running efficiently before the cutback, and cutting workers has little effect on output and yield, perhaps the reason was there was a lack of expertise in running operations. Either way, developing expertise and preserving it through adversity should be seen as worthy goals by any organization. Read more.

Certifying and Auditing Workers, Subcontractors
Dean Prigelmeier, President of Proactive Technologies, Inc.
When auditors sample worker performance for compliance with process documents and quality standards, they observe the employee perform the steps of the defined process and watch for accuracy. That is necessary for assuring repeatable quality output.

Yet process documents and references to quality standards do not a training strategy make. Technical documents were never intended to be training materials. Depending on the engineer’s style, they may be too technical or too verbose for the average user. Rarely are technical documents tested for readability (against the reading levels of the intended users) let alone repeatability.

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The experienced worker who has somehow learned to interpret the process document and fill the gaps of missing information to perform the task as envisioned, has the opportunity to repeat that process in a self-standardized way in lieu of proper training. They retain the best practice through repetition. But new-hires and transfers have different skills and abilities and may not be able to identify and assembly the various bits of information into a coherent, repeatable best practice without guidance and structure. The learning curve may become unnecessarily long and costly.

For this among many reasons, structured on-the-job training is critical to efficient process performance and indicative of higher levels of productivity. Read more.

Read the full October 2015 newsletter, including linked industry articles and online presentation schedules.


Posted in News

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