Structured On-the Job Training and Change Management: Learning, Reducing Cost & Increasing Productivity by: Phillip Milazzo, Exide Technologies Steve L. Whatley, The Ohio State University Cheryl L. Engle, The Ohio State University

Storing for tomorrow

Organization Profile Exide Technologies 17,000 employees Operating in 89 countries Net sales $2.4 billion Global Business Groups Collective market potential $9.4 billion Transportation Motive Industrial Energy

Exide Technologies

17,000 employees

Operating in 89 countries

Net sales $2.4 billion

Global Business Groups

Collective market potential $9.4 billion

Transportation

Motive

Industrial Energy

Organization Profile (cont’d.) Primary Unit of Analysis Vernon Recycling Facility, California U.S.A. Est. 1924 Employs 108 people 105,000 tons of recycled lead/annually Closed-loop Recycling System Key performance indicators Environment Productivity

Primary Unit of Analysis

Vernon Recycling Facility, California U.S.A.

Est. 1924

Employs 108 people

105,000 tons of recycled lead/annually

Closed-loop Recycling System

Key performance indicators

Environment

Productivity

Organizational Crossroads Past Worldwide Philosophy Batch manufacturing Lack of equipment maintenance Ergonomics

Past Worldwide Philosophy

Batch manufacturing

Lack of equipment maintenance

Ergonomics

Newly Adopted Philosophy Key performance indicators Safety Lost time accidents (LTA) Blood lead levels The Environment Testing of air, water and waste emissions Quality Internal/External customer specifications Value-added work Reduce errors/defects Continuous improvement culture Productivity OEE measurements

Key performance indicators

Safety

Lost time accidents (LTA)

Blood lead levels

The Environment

Testing of air, water and waste emissions

Quality

Internal/External customer specifications

Value-added work

Reduce errors/defects

Continuous improvement culture

Productivity

OEE measurements

Problems Confronting the Organization Adverse economic conditions On-going competitive pressure Capital market volatility Production cost structure Company-wide reorganization Filed for Chapter 11 bankruptcy (2002) Joint Plan of Reorganization confirmed (2004)

Adverse economic conditions

On-going competitive pressure

Capital market volatility

Production cost structure

Company-wide reorganization

Filed for Chapter 11 bankruptcy (2002)

Joint Plan of Reorganization confirmed (2004)

EXCELL EXide’s Customer-focused Excellence Lean Leadership system Change management philosophy Lean management strategies Source: EXCELL system, Exide Technologies, Milazzo, 2002

Change management philosophy

Lean management strategies

Concepts of LEAN Manufacturing Elimination of waste Implementation of continuous flow and customer-pull techniques Source: EXCELL Strategies, Exide Technologies, Milazzo, 2002

Elimination of waste

Implementation of continuous flow and customer-pull techniques

Structured-on-the-Job Training (S-OJT) Lean leaders Employee trainers Departmental interface Lean practices training and coaching Communication…. is key! Source: Building Momentum, Exide Technologies, Orzel, 2004

Lean leaders

Employee trainers

Departmental interface

Lean practices training and coaching

Communication…. is key!

EXCELL’s Universal Metric “Leveled the playing field” for all business entities worldwide Source: Building Momentum, Exide Technologies, Orzel, 2004

“Leveled the playing field” for all business entities worldwide

Design, Role & Context of Training Training transfer (Clark & Voogel, 1985; Baldwin & Ford 1988; Stein, 2001; Jacobs, 2003) Selection of training design Situational learning Knowledge creation S-OJT defined (Jacobs, 2003) “ the planned process of developing competence on units of work by having an experienced employee train a novice employee at the work setting or a location that closely resembles the work setting”

Training transfer (Clark & Voogel, 1985; Baldwin & Ford 1988; Stein, 2001; Jacobs, 2003)

Selection of training design

Situational learning

Knowledge creation

S-OJT defined (Jacobs, 2003)

“ the planned process of developing competence on units of work by having an experienced employee train a novice employee at the work setting or a location that closely resembles the work setting”

Systems Thinking S-OJT as a system Inputs Trainee Trainer Training Location Unit of work Communications Technology Training Process Prepare Trainees Present Training Require Response Provide Feedback Evaluate Performance Outputs Trainee Development Training Performance Work Performance Source: Systems View of S-OJT, Adapted from Jacobs, 2003

S-OJT as a system

Inputs

Trainee

Trainer

Training Location

Unit of work

Communications Technology

Training Process

Prepare Trainees

Present Training

Require Response

Provide Feedback

Evaluate Performance

Outputs

Trainee Development

Training Performance

Work Performance

S-OJT and EXCELL Adoption of Lean Manufacturing Principles Embedded S-OJT in situated work setting Kaizen Problem-solving Performance improvement strategies Operational efficiency

Adoption of Lean Manufacturing Principles

Embedded S-OJT in situated work setting

Kaizen

Problem-solving

Performance improvement strategies

Operational efficiency

S-OJT Interventions Lean manufacturing principles Source: Building Momentum, Exide Technologies, Orzel, 2004

Lean manufacturing principles

Kaizen Events S-OJT Interventions (con’t.d) Source: Building Momentum, Exide Technologies, Orzel, 2004

Kaizen Events

S-OJT Interventions (con’t.d) Just-in-Time Source: Building Momentum, Exide Technologies, Orzel, 2004

Just-in-Time

Results of S-OJT and EXCELL Corporate success story Vernon Recycling Facility World class leader in North America Secondary lead battery recycling Carlos E. Pena, Plant Manager [email_address] Key Performance Indicators Safety Reduction of LTA’s by 100% Blood lead standards (30 ug/100g) < OSHA (50 ug/100g)

Corporate success story

Vernon Recycling Facility

World class leader in North America

Secondary lead battery recycling

Carlos E. Pena, Plant Manager [email_address]

Key Performance Indicators

Safety

Reduction of LTA’s by 100%

Blood lead standards (30 ug/100g) < OSHA (50 ug/100g)

Results of S-OJT and EXCELL (cont’d.) Key Performance Indicators The Environment Since EXCELL’s implementation… Notices of violation filed: (2) in 2002, (1) in 2003 None filed in 2004 Renewed commitment to employee safety and the environment

Key Performance Indicators

The Environment

Since EXCELL’s implementation…

Notices of violation filed: (2) in 2002, (1) in 2003

None filed in 2004

Renewed commitment to employee safety and the environment

Results of S-OJT and EXCELL (cont’d.) Key Performance Indicators Source: Vernon Smelting Facility statement, Exide Technologies, 2004 Quality 90% reduction in DPPM Achieved Silver recognition (2004)

Key Performance Indicators

Quality

90% reduction in DPPM

Achieved Silver recognition (2004)

Results of S-OJT and EXCELL (cont’d.) Key Performance Indicators Productivity Team emphasis Productivity increased by 11% Man hours/ton of lead improved 42% Decreased cycle time of 42% Dock-to-Dock time reduction of 23% Vernon’s OEE = 86.4% 1.4% above world class standard Profitability increased by 42.6%

Key Performance Indicators

Productivity

Team emphasis

Productivity increased by 11%

Man hours/ton of lead improved 42%

Decreased cycle time of 42%

Dock-to-Dock time reduction of 23%

Vernon’s OEE = 86.4%

1.4% above world class standard

Profitability increased by 42.6%

Organizational Culture Self-directed work teams Embedded cross-training Implementation of EXCELL a success Employee ownership, problem-solving, and performance improvement

Self-directed work teams

Embedded cross-training

Implementation of EXCELL a success

Employee ownership, problem-solving, and performance improvement

Implications for HRD Performance paradigm Learning and performance at Exide Organization of 3 basic performance levels Individual, process, and organization (Rummler & Brache, 1995) Prioritized 4 key performance indicators Safety The Environment Quality Productivity

Performance paradigm

Learning and performance at Exide

Organization of 3 basic performance levels

Individual, process, and organization (Rummler & Brache, 1995)

Prioritized 4 key performance indicators

Safety

The Environment

Quality

Productivity

For further information… Phillip Milazzo Exide Technologies 13000 Deerfield Parkway Building 200 Alpharetta, GA 30004 U.S.A. Work phone: 678.566.9631 E-mail: [email_address]

Phillip Milazzo

Exide Technologies

13000 Deerfield Parkway Building 200

Alpharetta, GA 30004 U.S.A.

Work phone: 678.566.9631

E-mail: [email_address]

References Baldwin, T. T., & Ford, J. K. (1988). Transfer of training: A review and directions for future research. Personnel Psychology, 41(1), pp. 63-105. Clark, R. E., & Voogel, A. (1985). Transfer of training principles for instruction design. Educational communication and technology, 33(2), pp.113-125. Drucker, P. F. (1995). Managing in a time of great change. New York: Harper Business. Exide Fast Facts. (2002). Retrieved April 14, 2004, from http:// www.exideworld.com/pdf/company_facts.pdf Exide’s Lead Recycling Campaign poster downloaded from http:// www.exideworld.com / on 11.07.04 Exide Technologies. (2004, March). State of Performance – Vernon Recycling Facility. Los Angeles: Author. Exide Technologies Network Power – The Industry Leader. (2003). Retrieved May 5, 2004, from http:// www.networkpower.exide.com Exide Worldwide photographic images downloaded from http:// www.exideworld.com/exide_worldwide.html on 11.07.04 Gilbert, T. F. (1996). Human competence: Engineering worthy performance. (Tribute ed.). New York: McGraw Hill. Jacobs, R. L. (2003). Structured on-the-job training: Unleashing employee expertise in the workplace (2nd ed.). San Francisco: Berrett-Koehler Publisher. Milazzo, P. (2002). The Lean Turnaround: Lean Manufacturing in Crisis Mode. Presented at the 2002 International Manufacturing Show. Retrieved May 5, 2004, from http:// www.exideworld.com/pdf/Exide_I . MTS_9-02.pdf

Baldwin, T. T., & Ford, J. K. (1988). Transfer of training: A review and directions for future research. Personnel

Psychology, 41(1), pp. 63-105.

Clark, R. E., & Voogel, A. (1985). Transfer of training principles for instruction design. Educational communication

and technology, 33(2), pp.113-125.

Drucker, P. F. (1995). Managing in a time of great change. New York: Harper Business.

Exide Fast Facts. (2002). Retrieved April 14, 2004, from http:// www.exideworld.com/pdf/company_facts.pdf

Exide’s Lead Recycling Campaign poster downloaded from http:// www.exideworld.com / on 11.07.04

Exide Technologies. (2004, March). State of Performance – Vernon Recycling Facility. Los Angeles: Author.

Exide Technologies Network Power – The Industry Leader. (2003). Retrieved May 5, 2004, from

http:// www.networkpower.exide.com

Exide Worldwide photographic images downloaded from http:// www.exideworld.com/exide_worldwide.html on 11.07.04

Gilbert, T. F. (1996). Human competence: Engineering worthy performance. (Tribute ed.). New York: McGraw

Hill.

Jacobs, R. L. (2003). Structured on-the-job training: Unleashing employee expertise in the workplace (2nd ed.). San

Francisco: Berrett-Koehler Publisher.

Milazzo, P. (2002). The Lean Turnaround: Lean Manufacturing in Crisis Mode. Presented at the 2002 International Manufacturing Show. Retrieved May 5, 2004, from http:// www.exideworld.com/pdf/Exide_I . MTS_9-02.pdf

References (cont’d.) Milazzo, P., & Weiner, B. (2002). Exide Technologies: Going Lean When the Going is Tough . Target , 18(4), pp.22-29. Retrieved May 5, 2004, from http://www.exideworld.com/pdf/going_lean.pdf Milazzo, P., Whatley, S. L., & Engle, C. L. (2004). Structured on-the-job training and change management: Learning, reducing cost and increasing productivity. Manuscript submitted for publication. Noe, R. A. (1986). Trainees’ attributes and attitudes: Neglected influences on training effectiveness. Academy of management review. 11(4), pp. 736-749. Orzel, D. (2004). Building Momentum. Presented at the 2004 Auto Manufacturing Conference. Retrieved May 5, 2004, from http:// www.exideworld.com/pdf/building_momentum.pdf . Pena, C. (2004). Vernon Smelting Facility General Statement, Los Angeles, CA. Rummler, G. A., & Brache, A. P. (1995). Improving performance: How to manage the white space on the organization chart. (2nd ed.). San Francisco: Jossey-Bass. Stein, D. S. (2001). Situated learning and planned training on the job. In R. L. Jacobs (Issue Editor) & R. A. Swanson (Editor-in-Chief) Advances in developing human resources: Planned training on the job, 3(4), Thousand Oaks: Sage Publications. Swanson, R. A., & Holton, E. F. III. (2001). Foundations of human resource development. San Francisco: Berrett Koehler Publisher. Thorndike, E. L., & Woodworth, R. S. (1901). The influence of movement in one mental function upon the efficiency of other functions. Psychological Review, 8, pp. 247-261.

Milazzo, P., & Weiner, B. (2002). Exide Technologies: Going Lean When the Going is Tough . Target , 18(4),

pp.22-29. Retrieved May 5, 2004, from http://www.exideworld.com/pdf/going_lean.pdf

Milazzo, P., Whatley, S. L., & Engle, C. L. (2004). Structured on-the-job training and change management:

Learning, reducing cost and increasing productivity. Manuscript submitted for publication.

Noe, R. A. (1986). Trainees’ attributes and attitudes: Neglected influences on training effectiveness. Academy of

management review. 11(4), pp. 736-749.

Orzel, D. (2004). Building Momentum. Presented at the 2004 Auto Manufacturing Conference. Retrieved May 5, 2004, from http:// www.exideworld.com/pdf/building_momentum.pdf .

Pena, C. (2004). Vernon Smelting Facility General Statement, Los Angeles, CA.

Rummler, G. A., & Brache, A. P. (1995). Improving performance: How to manage the white space on the

organization chart. (2nd ed.). San Francisco: Jossey-Bass.

Stein, D. S. (2001). Situated learning and planned training on the job. In R. L. Jacobs (Issue Editor) & R. A.

Swanson (Editor-in-Chief) Advances in developing human resources: Planned training on the job, 3(4), Thousand Oaks: Sage Publications.

Swanson, R. A., & Holton, E. F. III. (2001). Foundations of human resource development. San Francisco: Berrett

Koehler Publisher.

Thorndike, E. L., & Woodworth, R. S. (1901). The influence of movement in one mental function upon the

efficiency of other functions. Psychological Review, 8, pp. 247-261.

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Questions? Thanks for your kind attention. Copyright © 2004 Phillip Milazzo, Steve L. Whatley, & Cheryl L. Engle

Thanks for your kind attention.