Noushig, Inc. dba Amoretti Small Business < $50,000 ET
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1 Panel Meeting of: June 21, 2013 Training Proposal for: Noushig, Inc. dba Amoretti Small Business < $50,000 ETP Regional Office: North Hollywood Analyst: N. Weingart CONTRACTOR Type of Industry: Manufacturing Priority Industry: Yes No Number of Full-Time Employees California: 52 Worldwide: 53 Number to be trained: 60 Owner Yes No Out-of-State Competition: NAICS Code Eligible Special Employment Training (SET): Yes No High Unemployment Area (HUA): Yes No Turnover Rate: 1% Repeat Contractor: Yes No FUNDING Requested Amount: $37,440 In-Kind Contribution: $23,645 ETP130 SB (02/05/13) 1 of 5
2 TRAINING PLAN TABLE Job No. Job Description Type of Training Estimated No. of Trainees Range of Hours Class /Lab CBT Average Cost per Trainee Post- Retention Wage 1 Retrainee Priority Rate SB <100 HUA Business Skills, Computer Skills, Manufacturing Skills, Management Skills * Including 8 temporary to permanent - see page 4. 60* $624 $11.02 Weighted Avg: 24 Reimbursement Rate: County: $26 SB Priority Ventura Occupations to be Trained: Manufacturing Worker, Warehouse Worker, Customer Service, Clerical Staff, Financial Staff, Support Staff, Information Technology, Manager, Owner Union Representation: Yes No Health Benefits: $2.25 per hour SUBCONTRACTORS Development Services: Administrative Services: Training Vendors: N/A N/A To Be Determined OVERVIEW Noushig, Inc. dba Amoretti (Amoretti), a family-owned business for more than 25 years, makes nearly 2,500 food and beverage ingredients. This includes flavorings, extracts, compounds, icings, pastes, sauces, and food colors. The company also makes edible perfume sprays, candies, and flavored oils. The company promotes a brand image based on quality, flavor, freshness, and consistency. Amoretti creates, designs, formulates, manufactures, fills, bottles, packages, and ships product from its single location in Oxnard. Customers around the world include patisseries, chocolatiers, ice creameries, five-star hotels and restaurants, industrial bakeries, gourmet coffee chains, and private chefs. Amoretti started primarily as a wholesale business but, over the past 18 months, has ventured into the retail market with tremendous success. The company continues to develop and expand its product lines; business has expanded into Canada and other markets outside of the U.S; and the workforce has grown. ETP130 SB (02/05/13) 2 of 5
3 Since the start of the last ETP Agreement (in 2008), Amoretti has hired 20 additional full-time employees, and is on track to hire another 10 to 15 within the next 12 months based on a 2 year sales growth projection of 15-20% for each year. However, the company did not request Job Creation. Amoretti has made recent changes in software and workflow, to keep pace with its new product lines, international customers, and overall growth. The company installed Microsoft Customer Relationship Management (CRM) software to hold all customer-related data. Its older Navision Dynamics 2009 Enterprise Resource Planning (ERP) software, which has only been used for inventory and invoicing, must now be fully utilized to connect workflow in all departments. Further, the new product lines have generated a change in manufacturing protocols and equipment usage, as well as company-wide operational changes. Training Plan Amoretti s workforce requires a strong understanding of products, protocols, and procedures. The need for training has become paramount. Amoretti staff designed the proposed curriculum to expand all employees skill sets to meet company and customer expectations. Business Skills training will be given to all staff to understand various aspects of every product, such as contents, applications, manufacturing specifications, and cost, as it applies to their job duties. Customer Service staff will be taught about the company s products to be effective in consultations with customers. Computer Skills courses will be delivered to all staff to effectively use CRM and ERP to track product movement and customer activities. Newer staff, and those with limited computer exposure, will also receive hardware and software skills such as Microsoft Office and Internet Explorer. Information Technology staff will learn to maintain, troubleshoot, and support all computer operations. Manufacturing Skills training will be given to production personnel in proprietary manufacturing protocols and processes, equipment usage, and quality standards. Trainees will learn to properly create finished goods while ensuring the highest quality standards, account for wasted raw materials, and be responsible for process improvement. Management Skills training for frontline Managers will cover creating and reaching goals, working with staff to improve performance, and improving training programs to keep up with growth and change. Training will begin upon ETP approval, and will be delivered by in-house trainers at the worksite. All project administration will be done by Amoretti personnel. Training in the prior Agreement was very limited and included only Manufacturing Skills (machine operations, SOPs and HazMat) and Computer Skills (basic Navision in two functions, basic Microsoft Office, and ACT-Database). The curriculum for this proposal is much more extensive and intended for a larger audience. ETP130 SB (02/05/13) 3 of 5
4 Training Hours Limitation Small Business retraining is capped at 60 hours per trainee; however, Amoretti is asking for a modification of the cap to 75 hours based on the need for a large number of Computer Skills training hours for some employees to properly understand and utilize CRM. This increase will also allow most employees to receive extensive training in product knowledge. High Unemployment Area All trainees work in a High Unemployment Area (HUA), a region with unemployment exceeding the state average by 15%. Wage Modification Amoretti requests a post-retention HUA hourly wage modification for approximately 15 trainees to $11.02; all others will at least earn the ETP minimum wage of $14.69 per hour for Ventura County. Temporary to Permanent Hiring Approximately eight trainees come under Panel guidelines for temporary to permanent employment. Amoretti has retained these employees through a temporary agency with the intention of hiring them into full-time, permanent positions after training. These trainees must be determined eligible to participate in ETP-funded training before the start of training, while on payroll with the temporary agency. (Unemployment Insurance Code Section 10201(c).) However, the retention and post-retention wage requirements cannot be satisfied until after they have been hired by Amoretti. Until then, Amoretti will not receive progress payments. Funding Amount The company submitted a training plan for 60 trainees at an average of 60 hours per person for a requested amount of $93,600. This was considered the minimum amount of training needed for each employee to become proficient in CRM and ERP, and to gain a sufficient amount of product knowledge. However, based on prior performance staff felt unable to allocate the requested funding. (See Prior Project table.) Consideration was given to providing the same amount earned in the prior project; however, $19,925 divided by $26 per hour (reimbursement rate) equals 766 total training hours, which would equate to only training hours per trainee. In lieu of this amount, and in order for the company to undertake its training program, staff is requesting a funding amount equal to half of the Approved Amount from the prior Agreement ($37,440) for 1,440 total training hours, which is an average of 24 training hours per trainee. RECOMMENDATION Staff recommends approval of this proposal including the HUA wage modification and the 75-hour cap for training hours per trainee. ETP130 SB (02/05/13) 4 of 5
5 PRIOR PROJECT The following table summarizes performance by Amoretti under an ETP Agreement that was completed within the last five years: Agreement No. Location (City) Term Approved Amount Payment Earned and (%) ET Oxnard 05/05/08 05/04/10 $74,880 $19,925 (27%) According to the Contractor, there were several delays in the implementation of Amoretti s new Navision software, which affected training. Also, the company did not have sufficient personnel available to deliver and administer a structured/focused training program (smaller workforce). Due to lack of oversight, internal trainers did not submit adequate documentation for several training hours that were actually provided and, therefore, could not be reimbursed. Amoretti s focus and training needs have changed since this Contract: management has made training a top priority, and all of the Executive Staff will assist with training in any way possible. The new Chief Information Officer (CIO) has taken on the role as the architect and facilitator of the company s training program. The CIO conducts weekly status meetings with the Owners, Managers, and training staff to determine which courses will be delivered and to schedule classes, and subsequently gathers feedback from attendees at the completion of each course. Amoretti has additional technical staff who will assist in training delivery. They are: a Technical Writer, to compile, write, and assemble training material; a full-time Trainer, to cover procedures and product knowledge with new hires; and a full-time Art Department (staff of four) to create copy, graphics, and layouts to make training materials visually stimulating. Finally, the Contractor has elected a one year term (which allows for nine months of training) to show that Amoretti will deliver training in an expedited manner at 100% performance. ETP130 SB (02/05/13) 5 of 5
6 Exhibit B: Menu Curriculum Class/Lab Hours 8-75 Trainees may receive any of the following: BUSINESS SKILLS Communication Skills/Phone Etiquette Order Processing Customer Service Philosophy 101 Product Knowledge by Product Group Category Product Knowledge / Application Product Knowledge / Allergens Product Knowledge / Formulation Product Knowledge / Net Use Calculations Product Knowledge / Retail Product Knowledge / Color, Consistency, Flavor, and Texture Amoretti Corporate Structure & Workflow COMPUTER SKILLS Microsoft Navision Dynamics 2009 R2 o Enter Customer Orders o Track Customer Orders o Review Customer Pricing o Report on Customer Purchase History o Review Shipping Status Microsoft Customer Relationship Management (CRM) 2011 o Track Communications with Customer\ s\Fax\Phone o Track Appointments-Reminders-Tasks o Assign Customers to Specific CSR Groups or Personnel Basic Desktop Skills: Equipment, Network Login, Security, Printing, Saving Shared and Personal Files Microsoft Internet Explorer Microsoft Office 2010\2013 o Word o Excel o Outlook o Power Point MANUFACTURING SKILLS Manufacturing Protocols Process Oriented Training Equipment & Machinery Quality Assurance Proprietary Amoretti Process (product-specific) Skills Navision: Enter, Track & Monitor Products MANAGEMENT SKILLS (Managers only) Creating Attainable Goals Employee Skills Assessment Building Employee Confidence Rewarding Hard Work Note: Reimbursement for retraining is capped at 75 total hours per trainee, regardless of method of delivery. ETP 100 SB (02/05/13) Exhibit B 1 of 1
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