Evolving Workforce Affecting Your Productivity and Safety - What You Can Do About It

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1 Evolving Workforce Affecting Your Productivity and Safety - What You Can Do About It Steve Ludwig Programs Manager, Safety Rockwell Automation PUBLIC Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 1

11 Global Nature of the Issue NORTH AMERICA One-third of workers: >50 Average age skilled worker: 56 Skilled workers retire at 65 By 2020 >115 million skilled workers nearing retirement Shortfall of 875,000 machinists, welders, machinery operators, and other manufacturing professionals SKILLED WORKER SHORTAGE WILL CONTINUE FOR THE FORESEEABLE FUTURE Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 11

wages rise China has rescinded their single-baby rule in anticipation of worker shortages in the coming years

12 Global Nature of the Issue CHINA Over-65 population is projected to soar to 210 million in 2030 Retirees projected to be 1/4 of the population by 2050 Chinese factories starting to struggle to fill positions as education and wages rise China has rescinded their single-baby rule in anticipation of worker shortages in the coming years SKILLED WORKER SHORTAGE WILL GROW FOR THE FORESEEABLE FUTURE Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 12

13 Global Nature of the Issue LATIN AMERICA Birth rates have plummeted from 5.98 children/woman in 1960 to 2.20 children per woman in 2010, significantly shrinking the future talent pools in these countries SKILLED WORKER SHORTAGE WILL GROW FOR THE FORESEEABLE FUTURE Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 13

Global Nature of the Issue EUROPEAN UNION EU countries seeking to prolong working lives, extending workers time in the workforce EU employment for people aged 55-64 at 46% in 2009 vs. 60% U.S.

14 Global Nature of the Issue EUROPEAN UNION EU countries seeking to prolong working lives, extending workers time in the workforce EU employment for people aged at 46% in 2009 vs. 60% U.S. Europe 2020 Strategy aims to increase the employment rate from 68.5% to 75% people aged SKILLED WORKER SHORTAGE WILL CONTINUE FOR THE FORESEEABLE FUTURE Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 14

16 Productivity Impact The global GDP growth rate is expected to decline from 3.6 percent/year between 1964 and to only 2.1 percent for the next 50 years. It would take 80% faster productivity growth to compensate for the projected decline. Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 16

Someone dies from a work-related accident or disease.

17 The Importance of Safety Every 15 seconds, somewhere in the world: 160 workers have a work-related accident. Someone dies from a work-related accident or disease. 240 Deaths by the time I finish this presentation. Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 17

18 Every year 2.3 million people die, 317 million accidents 4% Global Gross Domestic Product Source: International Labour Organization

19 Business Risks EVOLVING WORKFORCE Retiring workers Loss of skills and knowledge Unfilled jobs Inexperienced workers at higher risk 40% reduction in productivity growth SUPPLY CHAIN INTERRUPTION CAUSES Accidents #1 Production #2 Labor availability #3 Financial loss and premiums #6 Regulatory #8 Lawsuits #10 REPUTATIONAL BRAND RISK Worker treatment / injuries Environmental Labor Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 19

AGE GROUP (USA) Rates of Work-Related Injuries and Illnesses Treated in Emergency Departments by Age Group, United States, 2007

20 Younger / Inexperienced Workers More frequently injured More acute, serious injuries ATTRIBUTED TO: Inexperience Cognitive & developmental characteristics Hesitance to ask questions Misjudging risks Failure to recognize workplace dangers INJURY RATES BY AGE GROUP (USA) Rates of Work-Related Injuries and Illnesses Treated in Emergency Departments by Age Group, United States, 2007 (The National Institute for Occupational Safety and Health (NIOSH)) Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 20

BY AGE GROUP (USA) Rates of Work-Related Injuries and Illnesses Treated in Emergency Departments by Age Group, United States,

21 Older / Experienced Workers Higher risk for musculoskeletal & repetitive stress injuries AGING WORKERS EXPERIENCE CHANGES: Skeletal muscle strength Flexibility Range of motion Vision Cognitive abilities Reaction time Longer recovery times INJURY RATES BY AGE GROUP (USA) Rates of Work-Related Injuries and Illnesses Treated in Emergency Departments by Age Group, United States, 2007 (The National Institute for Occupational Safety and Health (NIOSH)) Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 21

22 What are you doing today? What are you doing today to deal with an evolving, aging workforce? Are these actions addressing productivity? Are these actions addressing the safety issues of both younger & older workers? Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 22

24 Workforce Availability COMMUNITY ENGAGEMENT Improve the skills and availability of young workers, and improve your reputation as an employer. Don t assume that schools will product your workforce Younger people have different skills and experiences than previous generations Engage communities and educational programs to preparing future workers Manufacturing isn t an aspiration for younger workers Reach out to younger people and underrepresented groups Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 24

25 Hiring & Productivity BUILD A CONNECTED ENTERPRISE Improve productivity and identify risks Reduce Job Complexity: Worker-specific instructions and information Ease Information Access: Mobile access, convenient, readily available Reduce Travel Demands: Improve availability of your most knowledgeable, in-demand employees Improve Labor Utilization: Do more with existing employees Improve safety: analysis of safety shutdowns, location, status Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 25

26 Workforce Competency TRAINING Improve worker skill sets Establish a formal program to document standard processes and procedures Conduct an analysis of job skill and knowledge levels to ensure your workers have the knowledge and abilities to perform at the desired level Embed a sustainable and flexible competencyimprovement program Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 26

27 Workforce Competency SUPPLEMENTAL EXPERTISE W/NON-CORE COMPETENCIES Augment core competencies Determine what skills are only intermittently used. Augment core competencies with services. Safety/risk assessments. Occasional maintenance. Employ remote monitoring to relieve your workers from mundane activities and help immediately identify and quickly resolve technical issues. Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 27

Retain & Produce MACHINE DESIGN Ergonomic, Contemporary Designs Ergonomic design to prevent operators and maintenance personnel from strain and repetitive stress Contemporary safety

28 Retain & Produce MACHINE DESIGN Ergonomic, Contemporary Designs Ergonomic design to prevent operators and maintenance personnel from strain and repetitive stress Contemporary safety systems / Alternative Protective Measures to prevent injury (younger workers), reduce unscheduled shutdowns, reduce MTTR Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 28

29 5. Maintain & Improve 1. Hazard or Risk Assessment Procedure THE SAFETY LIFE CYCLE 4. Installation & Validation 2. Functional Requirements 3. Design & Verification System design based on integrating safety & machine functionality Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 29

30 Risk Reduction Methods Who is Responsible? Engineering EHS HIERARCHY OF PROTECTIVE MEASURES Design it out Fixed enclosing guard Monitoring Access / Interlocked Gates Awareness Means, Training and Procedures Personal protective equipment (VPP) Most Effective Least Effective PUBLIC Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 30

Business Value OF SAFETY 5%-7% Higher OEE 2%-4% Less Downtime <50%

33 Trends and Takeaways The Evolving Workforce is a global issue dramatically affecting safety and productivity. Coping with the issue requires a multifaceted approach: Community outreach work with local schools to teach needed skills Training skills assessment, documented procedures, technical skills Supplemental services augmenting core competencies Improved machinery design ergonomics, improved safety and productivity Building a connected enterprise providing insight, information, mobility Copyright 2016 Rockwell Automation, Inc. All Rights Reserved. 33

Workforce Support and Training. How to retain and build critical skills as workforce and technology landscapes undergo dramatic changes

Workforce Support and Training How to retain and build critical skills as workforce and technology landscapes undergo dramatic changes A Seismic Skills Shift Two major transformations are simultaneously