Introducing A New Way to Achieve Manufacturing Excellence: Tooling U-SME's Competency Framework

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1 Introducing A New Way to Achieve Manufacturing Excellence: Tooling U-SME's Competency Framework Jeannine Kunz, Managing Director of Workforce and Education, SME John Hindman, Manager of Professional Services, Tooling U-SME

2 Contents Skills Gap Revisited Why Competencies? Tooling U-SME Competency Framework Questions 2

3 Poll Question What role do you provide for your organization? A. C-Level Executive B. Manufacturing Supervisor C. Frontline Supervisor D. Engineer E. Shop Floor Worker F. Non-profit/Educator G. Other 3

4 4 Skills Gap Revisited Reviewing the latest statistics on skilled worker shortage

5 5-Year Projected Competitiveness Global Manufacturing Competitiveness Index Top indicator of a country s competitiveness: access to talented workers followed by a country s trade, financial and tax system, and the cost of labor and materials. Source: Deloitte, Jan

6 89% of Manufacturers Have Difficulty Finding Skilled Workers IT 14.90% 47.40% Healthcare 36.40% 50.00% Manufacturing 50.90% 37.70% 0% 20% 40% 60% 80% 100% Regional Enterprise Wide Source: SME Research, May

7 54% have no plan to address it Source: SME Research, May

8 Who are these skilled workers? CNC Machinist 44% CNC Programmer 31% Machine Operator Tool Maker Mechanical Technician Welder Electrical Technician 19% 18% 17% 16% 15% Source: SME Research, May

9 Lack of Skilled Workers Impact on Business Inability to grow the business 56% Inability to maintain good quality on current product line 45% Inability to compete with current business product line 30% Inability to keep good workers from moving to competitors 26% Inability to comply with external quality standard 11% Source: SME Research, May

10 The Boston Consulting Group Made in America Again, The U.S. Skills Gap, Could it Threaten a Manufacturing Renaissance - August 2013 By understanding the magnitude of the challenge and investing now to cultivate the next generation of professionals, all stakeholders can ensure that a skills crunch won t derail the U.S. manufacturing resurgence. 10

11 Twenty-first century manufacturing talent base Work with schools, government agencies and nonprofits to work on pipeline. Use demographic risk-management and workforce-planning tools to understand future manufacturing-skills challenges and to enlarge the pool of potential candidates. Return to investment in internal training programs to build job competence. Build up visibility in schools and create greater awareness of attractive manufacturing careers. Source: Boston Consulting Group,

12 Business Impact Innovation Business innovation is a strategic imperative A highly skilled and educated workforce is the most critical element for innovation success Performance Workforce Quality Source: The Innovation Imperative in Manufacturing How the United States Can Restore Its Edge 12

13 Benefits of an internal development program A well-trained workforce will benefit an organization s goals and bottom line: Quality Cycle Time Costs (labor/materials) Communications Reliability Safety Downtime/rework 13

14 Poll Question Do you feel your organization is suffering from a skills gap? A. Yes, right now. B. No, but I will within the next five years. C. No, we are experiencing no shortage of workers. 14

15 15 Why Competencies? How competencies will help the skills gap need

16 Terminology What is a competency? The capability to apply a set of related knowledge, skills, and abilities (KSA) to successfully perform functions or tasks in a defined work setting. Competencies often serve as the basis for skill standards that specify the level of KSAs needed for success, as well as potential measurement criteria for assessing competency attainment. What is a competency model? A collection of competencies that together to define successful performance in a particular work setting. Competency models are the foundation for important human resource functions. 16

17 Why Competencies? Bersin & Associates: Key Findings Becoming a High-Impact Learning Organization, 2012 High-impact learning organizations are better able to drive value from a welldesigned, well-adopted and sustainable use of job / role profiles and competency frameworks. Effective use of profiles and competencies provides a common language to describe talent throughout the organization. This language allows productive conversations in areas, such as skills gaps, performance management, talent acquisition, and leadership development. 17

18 Why Competencies? Ensure enterprise-wide consistency making your workforce more flexible and dynamic (ultimately reducing labor costs) Streamline the training process and cut costs by eliminated unnecessary/redundant training and allows more training on true needs Help managers to easily evaluate worker performance levels defined using specific behavioral indicators, which reduces subjective assessment, increases assessment accuracy Enhance employee satisfaction based on the rationality of the system Define and explain to an average performer what they need to attain in order to become a superior performance (career pathways) 18

19 Poll Question Does your organization leverage competencies for your technical workforce? A. Yes B. No C. No, but we have a current business initiative to implement competencies 19

20 20 Tooling U-SME Competency Framework For Manufacturing Excellence

21 Introducing Tooling U-SME s Competency Framework 9 FUNCTIONAL AREAS > 60 JOB COMPETENCY MODELS 21

22 22 A trusted development tool grounded in experience from industry leaders

23 Competency Framework Development Process Identified and refined a list of manufacturing functional areas. Identified relevant job roles in each functional area. Identified the knowledge and skills required for high performance in a job role. Clustered similar knowledge and skill sets to look at crossfunctionality between job roles. 23

24 Why was it necessary? Current gap is competency modeling for job specific infrastructure Answer the need of manufacturing to better define and assess workforce requirements Provide manufacturing with a basis for career pathways in development of their workforce 24

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27 27 CNC Programming Competency Objectives

28 What Does The Framework Bring? Stronger workforce performance for companies and career growth for employees: Complements other models in the marketplace, and is fully customizable based on each organization s needs Helps companies combat the increasing talent shortage and achieve stronger performance from their workforce while providing career growth opportunities for their employees Designed to improve manufacturing education to boost morale, keep people employable and productive, and improve their credentials 28

29 Training Resources All of our relevant training resources are mapped to the knowledge and skill objectives (elements) for each competency model. Provides a mapped curriculum for companies to quickly stand up learning solutions to complement competency-based programs. 29

30 Questions Let s talk For more information, please contact your Tooling U-SME representative or call us at , 30