Profiles in training: foundries on the education edge.

Three very different foundries with varying resources offer benchmark examples of effective training and educational initiatives.

Benchmarking is an important part of surviving in a competitive manufacturing climate, and it is crucial to know how you compare to the "best in-class." Most firms have a good idea where they stand in terms of quality, delivery and customer satisfaction when compared to other foundries vying for position in their market. Those are the terms of the competition and excelling in them will win you the lion's share of the market. But have you thought about competing for an ever-shrinking pool of skilled manufacturing labor?

The firms that will excel in this new competition are the ones who are able to develop the workforces they have in place to the fullest extent by devoting significant resources to training in a new manufacturing culture that makes education as important as productivity. To show how this has already been done, and allow you to perhaps grab an idea for your own situation, this article takes you inside the training programs of three different foundries, ranging in size and resources from the very large to the very small. There may be vast differences between the companies, but they have one essential thing in common that any foundry planning for existence past the next decade must emulate: an aggressive, proactive educational philosophy.

Nemak, S.A.

Training and education for larger foundries generally isn't a question of "Should we?," but of "How much?" For large metalcasting organizations, the answer can be seen in the extent of their training programs. Nemak, S.A. in Monterrey, Mexico boasts a sophisticated and extensive training apparatus.

For Nemak, training employees is part of its mission. Producing 4.2 million aluminum cylinder heads a year (40% of the North American market) using the permanent mold and precision sand processes, and employing 1,550 hourly workers, the foundry's success depends on living up to the ever-increasing quality specifications of the auto industry. Since that can't be done without continuously upgrading the skills of its people, Nemak restructured its training in 1994 and implemented a new long-term master program.

The first step in the firm's $2 million/year training program is a six-week course for potential hourly employees at a local public school. Nemak has a contract with the Mexican government work bureau to provide basic technical training to a group of 30 students every six weeks in areas that include mathematics, mechanics, hydraulics and electricity. Nemak then hires about 80% of the course's graduates. This initial course allows the foundry to assess the qualifications of each potential employee and generate a competent starting workforce.

Once in the plant, the employee begins the bulk of his on-the-job learning. The plant operates around the clock, seven days a week. Employees train during working hours, with overtime when necessary.

"The training programs are related to the different levels in the company," said Gabriel Pinon, training and control improvement coordinator. "The workers understand that they must complete the different types and training and tests to grow within the structure of the company."

For Nemak, its on-the-job training is focused on two main areas. The first is standard procedures in which the workers are shown the process involved in their job. The second is operating and maintenance, which teaches workers how to adequately run their equipment and perform basic maintenance work on it.

This master program of training, which covers every job position at its three plants (with a fourth plant under construction), is divided into seven different departments with a total of 327 separate courses [ILLUSTRATION FOR FIGURE 1 OMITTED]. The average time to complete all the courses in a given department is 2.6 years, with individuals receiving an average of 7 hr a month (maintenance has 14) and 230 hr during their careers. About 200 different courses are offered per year.

"Our goal is to target the areas where our employees need the most training. We want to develop these areas and raise them to the levels of the rest of our company," said Pinon.

Almost all of the training and education at Nemak is performed at an on-site facility, by in-house trainers with engineering degrees who are skilled in interpersonal communications. These trainers use a combination of tools, including books, slides, video and PLC simulators to educate employees.

On occasion, the company has brought in outside firms for special organizational development training that specifically covers leadership, communications and languages for salaried workers. In addition, Nemak has implemented an in-house salaried worker program that addresses about 100 topics. As with the hourly workers, employees only take courses in areas where they are deficient. Program courses include program management, customer communication, product innovations and time management.

Hourly workers are continuously encouraged to learn the skills needed for other available positions within the plant. Every individual has the opportunity to take courses on any job position upon completion of the program corresponding to his present job. This opportunity enhances plant productivity by producing more knowledgable workers, while at the same time putting them in a better position for future promotion.

Even with an extensive training program in place, Nemak still has stumbling blocks to overcome. As a supplier to the auto industry, it needs to stay one step ahead of the certifications such as QS-9000.

"We have a lot of new processes, parts and technology that need to be integrated into our system. Sometimes they arrive very fast and we have to provide the training necessary to maintain our high level of performance," said Pinon. For instance, a few years ago, Nemak was asked to launch seven new products in one year.

With the master program in its third year, Nemak is constantly evaluating its structure. Diagnostic tests are frequently administered to determine training needs. Pinon believes that with continued expansion (perhaps six plants and 5000 workers in the next decade), the importance of a quality, well maintained training program will be magnified.

"Nemak has a special set of circumstances with the products we produce for the auto industry," said Pinon. "We must prepare our people in all our plants to provide a quality environment and quality operations."

Benton Foundry

More often than not, when a foundry official talks about expansion these days, he means more than just the addition of another jolt-squeeze line or holding furnace. He means a significant upgrade in technology on the shop floor. Such has been the case with Benton Foundry, [TABULAR DATA FOR FIGURE 1 OMITTED] Benton, Pennsylvania. The gray and ductile iron job shop has been modernizing for most of the decade, throwing continuous technological challenges at its 275-employee workforce. These changes, said Human Resource Manager Jim Carruthers, "were the fuel for a strong training initiative."

Besides new technology, the basics of Benton's business are demanding. The green sand foundry produces more than 7000 different castings. "It takes a lot of time and effort to get a new worker up to speed when you produce that many separate products," Carruthers said.

Until about three years ago, Benton hadn't changed the way it was educating its workforce ("train-as needed," according to Carruthers). But it was becoming clear that a comprehensive, organized training system was needed.

The program that emerged from Benton's need was at once ambitious and sensible, losing sight of neither the goal of an educated workforce nor the reality of the bottom line. "Our initial assessment was done in-house," Carruthers explained. "We didn't use consultants or outside sources. We used our own observations and, most importantly, input from the foremen. The guys on the floor are the ones who know what's going on, and what is needed to get the job done."

That approach to determining the foundry's training and education needs remains a permanent feature of Benton's program. Every December, human resources personnel meet with the operations foremen to identify areas of knowledge that should be addressed in the coming year. Should there be a need for some employees to brush up on identifying sand-related defects, for instance, HR will canvas suppliers and other sources for training in this area. Depending on the topic, these training sources may include CMI, vocational educators, teachers from the local school system or industry. A tentative training agenda is drafted at that point, taking into account projected production levels and schedules. "The key is to be flexible," Carruthers said. "If you make it too difficult, and clash with production demands, training [TABULAR DATA FOR TABLE 2 OMITTED] will fall through the cracks. At the same time, a long term plan is necessary, because things get so busy that training is impossible to schedule unless you do it well in advance."

The training schedule is prepared so that every employee in the plant receives an average of 40 hr of training per year. This works out to a company total of about 11,000 man-hours per year (not including the 8000 hr of on-the-job cross training that goes on on the floor).

March of this year was a fairly typical training month. Two employees attended a two-week course on advanced PLCs (at a local community college); four employees took a two-day CMI course on gating (held in Williamsport, Pennsylvania, and sponsored by the AFS Penn-York Chapter); one attended a compressed air equipment seminar; 25 learned the basics of hydraulics and pneumatics; two attended a three-day CMI class on foundry safety (in Des Plaines, IL); and 260 had a course on personal protective equipment. On top of that, eight new hires went through a day-long orientation.

Although, as noted, some training is done offsite, most happens right at the foundry. To accommodate it, Benton recently built a 45-seat training facility housing all the necessary educational tools. "It was an excellent investment - it really enhanced the efforts," Carruthers said, "Vendors don't want to come and teach in a cafeteria. But here, you're away from the distractions. People want to come here to be trained."

A physical training facility is a significant investment, but it is also a symbol of the firm's commitment to workforce education, Carruthers said, and it can offer benefits beyond being a home for training. In pursuing state funding for Benton's training efforts, Carruthers tries to have state funding decision makers visit the foundry whenever possible. "Showing them this brand-new training facility lets them know you're serious and committed, and that state dollars will be put to good use."

Like any foundry, the budget for training is somewhat limited. "We try to get as much for free as we can. Vendors provide some free training, and we're fortunate to have several community colleges and universities in the area with which we can make arrangements." In one instance, a teacher who was studying for a master's degree in education set up a course in algebra, trigonometry and calculus for the foundry's patternmakers and supervisors. The teacher received credit toward her degree and the foundry received a valuable, professionally assembled curriculum.

Another dimension is continuing education. The foundry pays for tuition and commuting expenses for any job-related college or trade school courses. This practice is a particular success with Benton's maintenance workers, and is as beneficial to the company as the individual. "The guys go to technical school on the company," Carruthers explained, "and we're getting more rounded individuals. We don't want specialists; we want a guy that can walk up to a machine and fix an electrical problem, a hydraulic problem or whatever it takes. You're a lot more efficient that way."

Benton pays its workers (including overtime, if necessary) for any mandatory training. A certain amount of training is tied to every position in the foundry (Table 2). When an employee bids on an open job, he's given a list of training objectives, of skills needed to perform that particular job as well as can be. If he gets the job, he must agree in writing to undergo the necessary training. He is paid a training wage until the curriculum is completed. "So there's a financial incentive to learn," said Carruthers. In addition, the foreman serves an oversight function in making certain individuals complete their coursework. The foreman must sign off that the individual is fully qualified to do the job. Cross training is continual and, according to the foremen's recommendations, various departments receive specialized training in relevant subjects throughout the year.

Supervisors are not exempt from the education process. Monthly leadership classes are held, covering topics like communication, motivation and mediation. Computer courses and internet training are also provided. In addition, Benton began to incorporate "life training" into this year's schedule. Carruthers said the driving idea is, "if you teach people how to live better lives, they make better employees." The first effort in this area was a domestic violence class, in which the local women's center came in with actors who performed skits illustrating potential domestic violence situations. "The employees were positive about it. I had guys come up to me and say, 'I'm really watching how I speak to my wife.' It was very effective." Upcoming classes include AIDS awareness, financial management and substance abuse. "We want them to feel they belong to a worldclass organization that really cares about them," Carruthers said.

An inherent problem with any training initiative is justifying expense in terms of return on investment. While Benton has received $300,000 in grants for training, the company's investment in such a comprehensive system is considerable. "We're trying to develop a way to gauge the training program for results, and we don't have any formula for return on investment," Carruthers admitted, "but we have seen benefits. I correlate everything to absenteeism, and ours was 1.5% last quarter. I believe that's a lot lower than the industry standard." Employee turnover is also lower, and in many operational areas, higher efficiency has meant fewer people are needed to do a job.

Carruthers can also measure progress according to academics. "Five years ago, we had three people with college diplomas in this plant," he said. "Today, we have 27. Ten years ago, 65% of our training was in basic skills and 35% was in technical. That ratio is reversed now." Benton's safety training effort has also helped to cut is workers' compensation rates by half.

The foundry has found success in its training efforts, said Carruthers, because of the support of top management. "If management isn't behind you," he said, "you won't have the flexibility you need - or the funding. The president must communicate that training is a priority. Otherwise, when you get into trying to schedule around production, you'll meet resistance."

Keeping with the no - nonsense approach, Benton's program has no name or catchy acronym. But it is not without a clear, guiding purpose. "If you want to have a motivated workforce," said Carruthers, "trust is crucial. You sometimes hear employees gripe that they're not trusted. It may be because they're not competent. We're trying to make them competent, and it's working."

Superior Aluminum

The letterhead of Superior Aluminum Castings, Inc., Independence, Missouri, reads: "Dedicated to excellence through teamwork." Of course, in a 17-man foundry producing 450,000-500,000 lb of castings per yr, there isn't much room for anything other than teamwork. True teamwork in that environment requires that each member of the team be able to play multiple roles, which demands that individuals possess a good deal of knowledge.

Superior President Dwight Barnhard has found that the most effective way to ensure those two conditions is by making education as important a mantra as productivity and quality. Training at Superior was formalized 12 years ago, and has evolved into a sophisticated program. However, it begins and ends with philosophy. The foundry's "Associate Development" program (all of Superior's staff is referred to as associates) is founded on the principle that people receive training not just to make the company more effective, but to make each person more effective, and enhance their lives.

The program has two levels, Associate Development and Leadership Development. Associate Development is designed to be completed in three years and embraces general knowledge (basic math, basic English composition and interpersonal skills); manufacturing process skills (industrial maintenance, electrical principles, mechanical print reading and welding) and metalcasting process knowledge and skills. For this last area, associates are required to complete two skills-specific metalcasting courses (Sand Technology and Metal Technology) at CMI. The basic skills and maintenance classes are provided by the Business Technology Center of Kansas City's Metropolitan Community College, and associates must maintain a "C" or better in all classes to be eligible for the Leadership Development program.

While the Associate Development program is mandatory, Leadership Development is a voluntary course of study paid for by Superior. This four-year curriculum calls for reviews of basic math and English skills and manufacturing and maintenance principals before delving into human relations and management, and Covey's Seven Habits of Highly Effective People (Barnhard is a licensed Covey facilitator at a nearby Covey Leadership Center). Finally, the associate attains a General Foundry Certification from CMI. Certification requires courses in sand and core technology, metals technology, melting technology, gating and risering and foundry engineering, all followed by a comprehensive written exam.

"Our training program may seem rigid," Barnhard said, "but it actually is rather flexible. Everyone must take some basic courses, but the rest is done by choice and at their leisure."

Aside from the formal development program, other training goes on continuously at Superior. Safety classes using video and discussions are held weekly, and at least six times per year various general quality and process training sessions are provided in-plant by vendors or CMI.

Superior's training initiative is a fine example of resourcefully assembling a comprehensive, progressive education program. "You just have to look around," said Barnhard. "You can put together your own program using many different sources. And you don't have to spend a lot of money - we haven't used a dime in grants."

You also have to show that you're serious, which comes naturally for Barnhard, who attended his first CMI class in 1965 and eventually became involved with the Covey Leadership Center. "The best way to start a training program is to lead by example," Barnhard said. "I'm 51 and I'm taking courses for a master's degree. If management doesn't believe in training and ongoing education, the program will never get off the ground."

Superior dedicates about 2% of its gross earnings to training and education - a high number for a small business. But Barnhard believes the investment to be crucial. "Some people might ask why we should spend money training the associates when they can take what they've learned and work elsewhere," he said. "Well, I say that if they go elsewhere for a better opportunity, we've done a good thing anyway."

RELATED ARTICLE: Foundry HR Officials Talk Training

The following data was gleaned from an informal modem casting survey of members of the AFS Human Resource Training and Development Committee.

New hourly employees' preparedness (in terms of skills) for working in foundry (1-10 scale): 4.

Percentage of sales spent on training per year: 0.9%

Percentage of training program devoted to basic and technical skills: 32% and 68%, respectively.

Deficiencies revealed by a skills assessment: "Weak basic skills...Technical knowledge and skills, leadership, computer, communication, basic skills, quality, teamwork...Need better process, more technical training, math and reading...Reading comprehension - number one...Employees lack skills of how to learn, and specifically reading/writing/computation, communication skills, creative thinking/problem solving, personal management, working with others and work ethic."

Most frequently-relied upon training sources (in order) for all training needs: Supervisors, AFS/CMI, industry seminars/conferences, trade schools, industry vendors, community colleges, universities, consultants

Most effective training tools for hourly employees? "Combination of lecture, video, hands-on...Group participation...Video and lecture/discussion...Computer tutorials and external seminars...Video and handson...Brief sessions, visual aids, Q&A...Well-prepared, instructor-led training."

Obstacles preventing you from solving education problems?

"Resources to develop the programs. We would need to carry an additional head count to allow training to be a reality...Money, workload and competition...One of the biggest problems is employees who speak only Spanish. Other obstacles are time, good materials, and instructors... Lack of funding to provide training...The need to maintain full production, and employees' willingness to participate...Three things, production, funding and culture...Production requirements...Production is always a problem. It takes much work to balance. If it weren't cutting into production time, training would be quite easy to accomplish without much impact on operations...Time and money."