business impact and the skills gap leslie parady project manager
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Business Impact and the Skills GapLeslie ParadyProject Manager
NIST Manufacturing Extension Partnerships
Business Impact and the Skills Gap
National program with at least one center in every state
Market driven program that responds to the needs of private sector manufacturers
Federal/State, public-private partnership
Leverage partnering expertise as strategic advantage
MassMEP Workforce Development Goals
Business Impact and the Skills Gap
“accelerating the development of industry-led skills strategies that result in a productive workforce for employers and in high quality jobs for workers”
▪ Skills development▪ Industry-recognized credentials▪ Employer engagement ▪ Work-based learning▪ Connected education and training strategies▪ Clear and demonstrable outcomes
NIST Business Impact Survey
Business Impact and the Skills Gap
▪ SalesNew and Retained
▪ JobsCreated and Retained
▪ Cost Savings
▪ InvestmentsIncreased or Avoided
▪ Scale of 1 to 10 – Rate MEP
Talent & Business Goals and Performance
Business Impact and the Skills Gap
Strategic Talent Management vs. Tactical HR
Business Impact and the Skills Gap
Extracting Insight from Data
Business Impact and the Skills Gap
"Most people use statistics the way a drunkard uses a lamp post, more for support than illumination."
- Mark Twain3-4 Key Performance Indicators
Understandable, meaningful and measurable
Something that will track behavior changesAND can be quantified ($$$)
Training ROI
Business Impact and the Skills Gap
Rejects Scrap$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Monthly Rejects & Scrap - Before Training & Af-ter
38% Re-duction
50% Reduc-tion
Confidential / © Siemens AG 2011. All rights reserved
Worcester, MA
Manufacture Proprietary Equipment in Worcester
Specialize in close tolerance, high accuracy, high speed equipment
Be the lead factory in core competency
Help grow the rest of our colleagues in the Metal Technologies division
Confidential / © Siemens AG 2011. All rights reserved
Business Challenge: Preparing for the Future
Manufacturing in US is resurgent but: Not enough qualified people to meet the need
Existing training programs are insufficient
Confidential / © Siemens AG 2011. All rights reserved
Business Challenge: Preparing for the Future
There are three key issues we are mindful of: Demographics
Training/qualification gaps In our people In current training programs/approaches
Increasing need for people capability and flexibility
Confidential / © Siemens AG 2011. All rights reserved
Business Challenge: Preparing for the Future
We believe: Businesses have a role to play in development of resources
and filling the gaps
This aligns with our specific business need and our responsibility to the community and the country in which we live and work.
Confidential / © Siemens AG 2011. All rights reserved
Worcester: Typical demographics
Average age understates challenge Bell curve shifted to the right
Next 10 years critical Exodus of developed talent
Focus areas: Work with current experienced talent,
engage as trainers Develop flexible work schedules to extend
service Document work instructions and standards –
capture the know how
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Worcester: Training/Qualification Approach
Six step Approach:Identify specific needs
Detailed job description development Baseline assessments (MEP)
Evaluate gaps Current and future
Confidential / © Siemens AG 2011. All rights reserved
Worcester: Training/Qualification Approach
Design programs for: Cross training current employees, co-ops and apprentices Must define credentials required
Utilize partners/external resources Provide tools, specific training materials, base lining, assisting with
Grants etc. (MEP, LearnCNC™, technical/trade schools, colleges, universities and other NGO’s)
Confidential / © Siemens AG 2011. All rights reserved
Worcester: Training/Qualification Approach
Create Roadmap Defines steps and tools to be used Roadmap must address both our near term needs and our long term
objectives: talented work force with knowledge, key skills and flexibility that allows us to compete and grow in fast changing and challenging markets
Execute roadmap and monitor
Siemens Engagement with MassMEP
Business Impact and the Skills Gap
▪ New Hire Recruiting and Training – late 2011Placed 10 peopleCNC Machine Operators
▪ Founding member of Manufacturing Advancement Center Workforce Innovation Collaborative (MACWIC) – 2012
▪ Incumbent worker training – 2014
▪ Skills assessment – 2014
Applied Manufacturing Technology Pathway Certification
Business Impact and the Skills Gap
Siemens Skills Gaps
Tested 96 shop floor employees in each module comprisingLevels 1 & 2
Need Training
Shop Math 24
Blueprint Reading 79
Metrology 80
Lean 88
Programming 86
Lathe 83
Mill 78
NIST Business Impact Survey
Business Impact and the Skills Gap
▪ SalesNew and Retained
▪ JobsCreated and Retained
▪ Cost Savings
▪ InvestmentsIncreased or Avoided
▪ Scale of 1 to 10 – Rate MEP
MassMEP Business Impact
104 companies surveyed in 2013
• Created 522 jobs that otherwise would not have existed• Retained 1,565 jobs that otherwise would have been lost• Increased and retained $149.1 million in sales• Spent $49.3 million on new investment• Experienced $12.4 million in cost savings and avoided
costs
• Net Promoter Score
On average, an industry’s NPS leader outgrew its competitors by a factor greater than two times.
MassMEP Federal & State ROI
IMPLAN Pro V3.0
• Creating or retaining 5,109 jobs that paid a total of $340.6M in employee wages and benefits
• Increasing or retaining economic output worth $1.22B
• Contributing or retaining $709.2M of gross state product
• Generating or retaining $137.2M in additional tax and non-tax revenues at the federal, state and local government levels ($51.7M at the state, and local level)
Applied Manufacturing Technology Pathway Certification
Business Impact and the Skills Gap