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This scholarly presentation was given at the 2004 Academy of Human Resource Development Asian Conference in Seoul, Korea.
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Structured On-the Structured On-the Job Training and Job Training and
Change Change Management:Management:
Learning, Reducing Cost & Learning, Reducing Cost & Increasing ProductivityIncreasing Productivityby: Phillip Milazzo, Exide Technologiesby: Phillip Milazzo, Exide Technologies
Steve L. Whatley, The Ohio State Steve L. Whatley, The Ohio State UniversityUniversity
Cheryl L. Engle, The Ohio State Cheryl L. Engle, The Ohio State UniversityUniversity
2
Organization ProfileOrganization Profile Exide TechnologiesExide Technologies
17,000 employees17,000 employees Operating in 89 countriesOperating in 89 countries Net sales $2.4 billionNet sales $2.4 billion
Global Business GroupsGlobal Business Groups Collective market potential $9.4 billionCollective market potential $9.4 billion
TransportationTransportation MotiveMotive Industrial EnergyIndustrial Energy
Organization Profile Organization Profile (cont’d.)(cont’d.)
Primary Unit of AnalysisPrimary Unit of Analysis Vernon Recycling Facility, California Vernon Recycling Facility, California
U.S.A.U.S.A. Est. 1924Est. 1924 Employs 108 peopleEmploys 108 people 105,000 tons of recycled lead/annually105,000 tons of recycled lead/annually
Closed-loop Recycling SystemClosed-loop Recycling System Key performance indicatorsKey performance indicators
EnvironmentEnvironment ProductivityProductivity
Organizational Organizational CrossroadsCrossroads
Past Worldwide PhilosophyPast Worldwide Philosophy Batch manufacturingBatch manufacturing Lack of equipment maintenanceLack of equipment maintenance ErgonomicsErgonomics
Newly Adopted Newly Adopted PhilosophyPhilosophy
Key performance indicatorsKey performance indicators SafetySafety
Lost time accidents (LTA)Lost time accidents (LTA) Blood lead levelsBlood lead levels
The EnvironmentThe Environment Testing of air, water and waste emissionsTesting of air, water and waste emissions
QualityQuality Internal/External customer specificationsInternal/External customer specifications Value-added workValue-added work Reduce errors/defectsReduce errors/defects Continuous improvement cultureContinuous improvement culture
ProductivityProductivity OEE measurementsOEE measurements
Problems Confronting the Problems Confronting the OrganizationOrganization
Adverse economic conditionsAdverse economic conditions On-going competitive pressureOn-going competitive pressure Capital market volatilityCapital market volatility Production cost structureProduction cost structure Company-wide reorganizationCompany-wide reorganization Filed for Chapter 11 bankruptcy (2002)Filed for Chapter 11 bankruptcy (2002) Joint Plan of Reorganization confirmed Joint Plan of Reorganization confirmed
(2004)(2004)
EXCELLEXCELLEXide’s Customer-focused EXide’s Customer-focused
Excellence Lean Leadership Excellence Lean Leadership systemsystem
Change Change management management philosophyphilosophy
Lean management Lean management strategiesstrategies
Source: EXCELL system, Exide Technologies, Milazzo, 2002
Concepts of LEAN Concepts of LEAN ManufacturingManufacturing
Elimination Elimination of wasteof waste
ImplementaImplementation of tion of continuous continuous flow and flow and customer-customer-pull pull techniquestechniques Source: EXCELL Strategies, Exide Technologies, Milazzo,
2002
Structured-on-the-Job Structured-on-the-Job TrainingTraining(S-OJT)(S-OJT)
Lean leadersLean leaders Employee trainersEmployee trainers Departmental interfaceDepartmental interface Lean practices training and Lean practices training and
coaching coaching Communication…. is key!Communication…. is key!
Source: Building Momentum, Exide Technologies, Orzel, 2004
EXCELL’s Universal EXCELL’s Universal MetricMetric
““Leveled Leveled the the playing playing field” for field” for all all business business entities entities worldwidworldwidee
Source: Building Momentum, Exide Technologies, Orzel, 2004
Design, Role & Context of Design, Role & Context of TrainingTraining
Training transfer Training transfer (Clark & Voogel, 1985; Baldwin & (Clark & Voogel, 1985; Baldwin &
Ford 1988; Stein, 2001; Jacobs, 2003)Ford 1988; Stein, 2001; Jacobs, 2003) Selection of training designSelection of training design Situational learningSituational learning Knowledge creationKnowledge creation
S-OJT defined (Jacobs, 2003)S-OJT defined (Jacobs, 2003) ““the planned process of developing the planned process of developing
competence on units of work by having an competence on units of work by having an experienced employee train a novice experienced employee train a novice employee at the work setting or a location employee at the work setting or a location that closely resembles the work setting”that closely resembles the work setting”
Systems ThinkingSystems Thinking
S-OJT as a systemS-OJT as a system
Inputs
• Trainee• Trainer• Training Location• Unit of work• Communications Technology
Training Process
Prepare Trainees Present Training Require Response Provide Feedback Evaluate Performance
Outputs
Trainee Development Training Performance Work Performance
Source: Systems View of S-OJT, Adapted from Jacobs, 2003
S-OJT and EXCELLS-OJT and EXCELL
Adoption of Lean Manufacturing Adoption of Lean Manufacturing PrinciplesPrinciples
Embedded S-OJT in situated work Embedded S-OJT in situated work settingsetting KaizenKaizen Problem-solvingProblem-solving Performance improvement Performance improvement
strategiesstrategies Operational efficiencyOperational efficiency
S-OJT InterventionsS-OJT Interventions
Lean Lean manufactumanufacturing ring principlesprinciples
Source: Building Momentum, Exide Technologies, Orzel, 2004
Kaizen EventsKaizen Events
S-OJT Interventions S-OJT Interventions (con’t.d)(con’t.d)
Source: Building Momentum, Exide Technologies, Orzel, 2004
S-OJT Interventions S-OJT Interventions (con’t.d)(con’t.d)
Just-in-TimeJust-in-Time
Source: Building Momentum, Exide Technologies, Orzel, 2004
Results of S-OJT and Results of S-OJT and EXCELLEXCELL
Corporate success storyCorporate success story Vernon Recycling FacilityVernon Recycling Facility World class leader in North AmericaWorld class leader in North America Secondary lead battery recyclingSecondary lead battery recycling Carlos E. Pena, Plant Manager Carlos E. Pena, Plant Manager
[email protected]@exide.com
Key Performance IndicatorsKey Performance Indicators SafetySafety
Reduction of LTA’s by 100%Reduction of LTA’s by 100% Blood lead standards (30 ug/100g) < OSHA (50 Blood lead standards (30 ug/100g) < OSHA (50
ug/100g) ug/100g)
Results of S-OJT and Results of S-OJT and EXCELL EXCELL (cont’d.)(cont’d.)
Key Performance IndicatorsKey Performance Indicators The EnvironmentThe Environment
Since EXCELL’s implementation…Since EXCELL’s implementation… Notices of violation filed: (2) in 2002, (1) in Notices of violation filed: (2) in 2002, (1) in
20032003 None filed in 2004None filed in 2004 Renewed commitment to employee safety Renewed commitment to employee safety
and the environmentand the environment
Results of S-OJT and Results of S-OJT and EXCELL EXCELL (cont’d.)(cont’d.)
Key Performance Key Performance IndicatorsIndicators
Source: Vernon Smelting Facility statement, Exide Technologies, 2004
QualityQuality 90%
reduction in DPPM
Achieved Silver recognition (2004)
Results of S-OJT and Results of S-OJT and EXCELL EXCELL (cont’d.)(cont’d.)
Key Performance IndicatorsKey Performance Indicators ProductivityProductivity
Team emphasisTeam emphasis Productivity increased by 11%Productivity increased by 11% Man hours/ton of lead improved 42%Man hours/ton of lead improved 42% Decreased cycle time of 42%Decreased cycle time of 42% Dock-to-Dock time reduction of 23%Dock-to-Dock time reduction of 23% Vernon’s OEE = 86.4%Vernon’s OEE = 86.4%
1.4% above world class standard1.4% above world class standard Profitability increased by 42.6%Profitability increased by 42.6%
Organizational CultureOrganizational Culture
Self-directed work teamsSelf-directed work teams Embedded cross-trainingEmbedded cross-training Implementation of EXCELL a Implementation of EXCELL a
successsuccess Employee ownership, problem-Employee ownership, problem-
solving, and performance solving, and performance improvementimprovement
Implications for HRDImplications for HRD Performance paradigmPerformance paradigm Learning and performance at ExideLearning and performance at Exide
Organization of 3 basic performance Organization of 3 basic performance levelslevels
Individual, process, and organization (Rummler Individual, process, and organization (Rummler & Brache, 1995)& Brache, 1995)
Prioritized 4 key performance indicatorsPrioritized 4 key performance indicators SafetySafety The EnvironmentThe Environment QualityQuality ProductivityProductivity
For further information…For further information…
Phillip MilazzoPhillip Milazzo
Exide TechnologiesExide Technologies
13000 Deerfield Parkway Building 20013000 Deerfield Parkway Building 200
Alpharetta, GA 30004 U.S.A.Alpharetta, GA 30004 U.S.A.
Work phone: 678.566.9631Work phone: 678.566.9631
E-mail: E-mail: [email protected]@exide.com
ReferencesReferences Baldwin, T. T., & Ford, J. K. (1988). Transfer of training: A review and directions for future research. Baldwin, T. T., & Ford, J. K. (1988). Transfer of training: A review and directions for future research.
PersonnelPersonnel
Psychology,Psychology, 41(1), pp. 63-105. 41(1), pp. 63-105. Clark, R. E., & Voogel, A. (1985). Transfer of training principles for instruction design. Clark, R. E., & Voogel, A. (1985). Transfer of training principles for instruction design. Educational Educational
communicationcommunication
and technology,and technology, 33(2), pp.113-125. 33(2), pp.113-125. Drucker, P. F. (1995). Drucker, P. F. (1995). Managing in a time of great change.Managing in a time of great change. New York: Harper Business. New York: Harper Business. Exide Fast Facts. (2002). Retrieved April 14, 2004, from http://Exide Fast Facts. (2002). Retrieved April 14, 2004, from http://www.exideworld.com/pdf/company_facts.pdfwww.exideworld.com/pdf/company_facts.pdf Exide’s Lead Recycling Campaign poster downloaded from Exide’s Lead Recycling Campaign poster downloaded from http://http://www.exideworld.comwww.exideworld.com// on 11.07.04 on 11.07.04 Exide Technologies. (2004, March). Exide Technologies. (2004, March). State of Performance – Vernon Recycling Facility.State of Performance – Vernon Recycling Facility. Los Angeles: Author. Los Angeles: Author. Exide Technologies Network Power – The Industry Leader. (2003). Retrieved May 5, 2004, fromExide Technologies Network Power – The Industry Leader. (2003). Retrieved May 5, 2004, from
http://http://www.networkpower.exide.comwww.networkpower.exide.com Exide Worldwide photographic images downloaded from Exide Worldwide photographic images downloaded from http://http://www.exideworld.com/exide_worldwide.htmlwww.exideworld.com/exide_worldwide.html
on 11.07.04 on 11.07.04 Gilbert, T. F. (1996). Gilbert, T. F. (1996). Human competence: Engineering worthy performance.Human competence: Engineering worthy performance. (Tribute ed.). New York: (Tribute ed.). New York:
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ed.). Saned.). San
Francisco: Berrett-Koehler Publisher.Francisco: Berrett-Koehler Publisher. Milazzo, P. (2002). The Lean Turnaround: Lean Manufacturing in Crisis Mode.Milazzo, P. (2002). The Lean Turnaround: Lean Manufacturing in Crisis Mode. Presented at the 2002 Presented at the 2002
International Manufacturing Show. Retrieved May 5, 2004, from International Manufacturing Show. Retrieved May 5, 2004, from http://http://www.exideworld.com/pdf/Exide_Iwww.exideworld.com/pdf/Exide_I. MTS_9-02.pdf. MTS_9-02.pdf
References References (cont’d.)(cont’d.) Milazzo, P., & Weiner, B. (2002). Exide Technologies: Going Lean When the Going is ToughMilazzo, P., & Weiner, B. (2002). Exide Technologies: Going Lean When the Going is Tough. Target. Target, 18(4), , 18(4),
pp.22-29. Retrieved May 5, 2004, from pp.22-29. Retrieved May 5, 2004, from http://www.exideworld.com/pdf/going_lean.pdfhttp://www.exideworld.com/pdf/going_lean.pdf Milazzo, P., Whatley, S. L., & Engle, C. L. (2004). Milazzo, P., Whatley, S. L., & Engle, C. L. (2004). Structured on-the-job training and change management:Structured on-the-job training and change management:
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May 5, 2004, from May 5, 2004, from http://http://www.exideworld.com/pdf/building_momentum.pdfwww.exideworld.com/pdf/building_momentum.pdf.. Pena, C. (2004). Vernon Smelting Facility General Statement, Los Angeles, CA.Pena, C. (2004). Vernon Smelting Facility General Statement, Los Angeles, CA. Rummler, G. A., & Brache, A. P. (1995). Rummler, G. A., & Brache, A. P. (1995). Improving performance: How to manage the white space on theImproving performance: How to manage the white space on the
organization chart. organization chart. (2nd ed.). San Francisco: Jossey-Bass.(2nd ed.). San Francisco: Jossey-Bass. Stein, D. S. (2001). Situated learning and planned training on the job. In R. L. Jacobs (Issue Editor) & R. A.Stein, D. S. (2001). Situated learning and planned training on the job. In R. L. Jacobs (Issue Editor) & R. A. Swanson (Editor-in-Chief) Swanson (Editor-in-Chief) Advances in developing human resources: Planned training on the job, Advances in developing human resources: Planned training on the job, 3(4), 3(4),
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efficiency of other functions. efficiency of other functions. Psychological Review,Psychological Review, 8, pp. 247-261. 8, pp. 247-261.
RJR
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Questions?Questions?
Thanks for your kind attention.Thanks for your kind attention.
Copyright © 2004 Phillip Milazzo, Steve L. Whatley, & Cheryl L. Engle