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National Career Pathways Network Pre-Conference Luncheon Oct 25, 2017

My Safety Commitment “I will strengthen the Toyota Bodine safety culture by applying the principles of knowledge, mind, and action.”

Manufacturing Talent Wes Woods, VP Toyota-Bodine Aluminum

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Wes Woods

Vice President, Toyota Bodine [wes.woods@toyota.com]

Experience: 34yrs Automotive Manufacturing (Powertrain)

Career: Production Floor Team Member, Engineer, Supervisor, Manager, GM, VP

Academic Outreach - Elementary to Post Secondary

Personal Introduction

- Support High School STEM Academies - Robotics and related STEM programs K-12 - National Visiting Committee Member for CARCAM (carcam.org) Alabama Regional Technical College Workforce Development - Have lectured at colleges in Southeast US

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Presentation Outline 3

1.Toyota Bodine Company Overview

2.The Need for Skilled Manufacturing Technicians A. The Skills Gap B. The Gap Between Students and Manufacturing Jobs C. The Creation of Advanced Mfg Technician (AMT) D.Missouri FAME and Statistics E. Reflections, Improvements, Call for Action

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TITLE

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Parts Mfg

Wheels

Cars, Engines, Engineering HQ

Cars, SUVs

Castings - Blocks - Heads - Transmission

Engines Transmissions Vans

SUVs

Engines Trucks

Trucks

Cars

Toyota Manufacturing in North America

Corp. HQ

Design HQ

- 10 Mfg Locations in U.S. (14 in N.A) - 1.4M Vehicles Produced in U.S. (2016) - $23.4B Direct Investment in U.S. - 136,000 Dedicated U.S. Employees - $921M in Total U.S. Donations

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Toyota Bodine Plants and Customers

Troy, MO

Jackson, TN

Kentucky Engines,

West Virginia - Transmissions - Engines

Alabama Engines

STL, MO

135 Employees

294 Employees

852 Employees

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- 2016 Marks 26 Years with Toyota

Bodine Aluminum History/Timeline

- Bodine Celebrated 100th Anniversary in 2012

Bodine Pattern

Shop Founded

1912

Toyota Purchased

Bodine

1990

Troy, MO Plant Began

Production

1993 2005

Tennesse Plant Began

Production

100 Year Anniversary

2012 2016

One Toyota

N.A. Reborn

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• Tundra • Sequoia

• Camry • Rav4 • Corolla

• Avalon • Tacoma • Sienna • Highlander • Lexus RX & ES

Bodine Produces Aluminum Castings

Head Castings

Block Castings

Transmission Castings

L4 Engine

V6 Engine

V8 Engine

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6 million castings per year.

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STEM Education

NPLD

Food Bank

Vehicle Donations

Playground Donations

ADA Accessibility at State Park Diversity Education

Support Local Agencies

Computer Donations

Community Betterment – Troy and St.Louis

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Solar Lights

Reducing Resource Consumption Tree and Foliage Planting

1. Reduce 2. Reuse 3. Recycle

We Value Our Environment

We are a Zero Landfill Company Environmental Month Activities

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What If I Told You? 10

We have a career pathway for Your Child that…

Raise Your Hand - If you would consider this opportunity for your child.

1. Has a Base Pay of $40K - $60K per Year.

2. Has Overtime Pay, Medical Benefits, 401K, PTO, etc.

3. Has Growth & Advancement Opportunities

4. Only Requires a 2yr Degree

7. The Graduation Rate > 80%

8. The Employment Rate > 90%

..IN A MANUFACTURING CAREER.

5. Provides Practical Job Experience while in School

Can Graduate with Little or No Debt

6. Pays a Salary as Part of the Program

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Clarify The Need – Manufacturing Technicians

Mfg Needs Capable Multi-Skilled Maintenance Technicians

1) Strong Technical Ability Industrial Maintenance from Technical or Community College - Electrical Repair - Motor Controls - PLC - Machine Tool - Fabrication - Welding - Mechanical Repair - Robotics - Other Automation

2) Soft Skills Proficiency - Effective Communication - Teamwork - Problem Solver (incl. root cause analysis) - Critical Thinker - Punctual

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84%

0% 0%

Executives who agree there is a talent shortage in U.S. mfg.

82% Executives believe the skills gap will negatively impact their ability to meet customer demand

78% 69% 62% 48%

Will Implement new technologies

Are providing effective customer service

Developing new products

Expanding internationally

Problem - There’s a National Skills Gap

Manufacturing Largest Skill Gap of any Workforce Sector - Health Care - Retail - Energy - Construction - etc.

How Do We Close this Skills Gap?

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Student

Manufacturing Jobs

Engineers & Other 4yr

Degree Professions

Teachers & Parents

Universities

Maintenance Technicians

Must Create an Effective Pathway for Students 13

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What Employers Need Today

What Employers Historically Receive

Define the Job and the Technical Gap to Close

Silo’d Skilled Maintenance - Electricians - Mechanics - Welders - Machinists - Tool Makers - Programmers - Etc

Multi Function Technician (and More)

Key Change Points

1. Global Competition - Cost - Quality - Value

2. Shareholder Pressures - Accomplish more with the same resources

3. Advanced Technologies - Machines PLC, Computer Automation - Materials Plastics, Resins Other Composits

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1. Five Semesters Five Areas of Study

The “Standardized Degree” for Mfg (AMT)

General Education - Language - Science - Math - History

Mfg. Core Exercises

Professional Behavior

Job Experience

- Safety - Organization - Problem Solving - Lean Mfg.

- Electricity - Mechanics - Robotics - Fabrication

Technical Education

- Teamwork - Communication - Work Culture

- On-Job Training - Job Mentoring

2. Create Partnership State Technical College of Missouri

Develop Curriculum and Classroom. (Yokoten)

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The “New Model School” for Mfg (AMT) We’ve Developed a Place of Learning that

Looks and Feels Much Like a Place of Work

More Realistic Looks and Feels like a factory

Mfg Simulator For learning how to troubleshoot problems

Additional Learning - Safety - 5S - TPS

Process Learning - Structure - Sequence - Right first time

Org Structure - Electricity - Fluid Power - Mechanical - Fabrication, etc

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Wor

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M Tu W Th F

8-10

hrs

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SCHO

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Program Work (1-2 hrs) 2-

4 hr

s Homework and Study 2-4 Hrs

The “New Model Regimen” for Learning (AMT) A Realistic Work - Study Experience. “Every Minute Counts”

40 Hour Work / Study Week

8-10

Hrs

5 Continuous Semesters

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The Student Earns $20K/yr While in School

Sem

este

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ak

Sem

este

r Bre

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Sem

este

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Sem

este

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GRAD

UATI

ON

16 Weeks

Fall 2015

Semester

Spring 2016

Semester

16 Weeks

Summer 2016

Semester

16 Weeks

Fall 2016

Semester

16 Weeks

Spring 2017

Semester

16 Weeks

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The Next Step for AMT MO FAME

- HQ: State Tech. College - 3rd Year in Program - 8 Industry Partners - 29 Students (total) - 9 Graduates to Date - 89% Graduation Rate - 89% Employment Rate

Statistics

Created a Collaboration with Other Local Manufacturers

8 Industry Partners

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1 K-12

2 College Tech Partners

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Work & Learning Readiness

Industry Best

Globally competitive achievement level

AMT

The Solution Is Fully Developed 19

Nationally - 16 Operations - 9 States - Over 160 FAME Companies

Work Preparation

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Student

Universities Teachers &

Parents

The Gap to Manufacturing Jobs is Closed

Colleges + Industry

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Manufacturing Jobs

Engineers & Other 4yr

Degree Professions

Technical Colleges

Other Tech Schools

Teachers, Parents, Industry

Maintenance Technicians

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Meet the New Generation Skilled Technician Totally Multi-Skilled - Electrical / Fluid / Mechanical / etc

Strong Math – Upper 1/3 Nationally

Fast Technical Learner - Can Learn, apply, improve, learn again

Uses and Learns with Digital Media

Strong Problem Solver - Can fully explain problem solving and methods

Effective Communicator - Group and 1-on-1. High quality writing skill.

Natural Team Worker - Prefers working as part of a team.

Prepared to Move to Next Level - Has Assoc. Degree & Req’d Company Training

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Not yet a Success Story – “Need Improvement”

We’ve Almost Completed the First PDCA Cycle

PLAN:

DO:

CHECK:

ACT:

Although mostly good, we’ve recognized opportunities to improve

We’ve implemented the Plan

We recognized a problem and made a plan.

We’ve Checked the Results.

Together, let’s take action and repeat the PDCA Cycle again.

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Key Objective – Strengthen the Connections

1. Not Enough FAME Applicants - Improve the perception of manufacturing. - Recruit students and parents

2. Not Enough Diversity - Deliberately Recruit Females and People of Color

3. Not Achieving the Main Goals - Clarify Recruiting Roles (high school, technical college, industry partners) - Increase our passion to recruit…and see it through to employment

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Diego Rivera – Detroit Institute of Arts

Kaizen – Improve The Perception of Mfg

Miserable Environment

Manual, Strenuous

Work

Crowded Conditions

- Unsafe - Dirty - High Overtime - Uncaring Leaders - Low Pay & Benefits - Frequent Layoffs

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< 20% of students said that their Parents or School Leaders encouraged them to pursue a career in manufacturing.

Early Manufacturing

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Kaizen – Strengthen Recruiting Methods

Hourly Annual

Mean Wage $22.11 $46,000 + Overtime

90% of Top Wage $31.84 $66,000 + Overtime

** Pay Stats (Bureau of Labor and Statistics May 2016)

Other Benefits 1. Overtime and incentive pay 2. Medical, Dental, Eye Care 3. Paid Holidays & Vacations

Reach Students and Parents with a Targeted Message 1) Students and Teachers visit local factories Learn & Teach Mfg

2) Deliberately educate students and Parents regarding the great career, pay, and benefits with manufacturing companies

3) Manufacturers are ready to support (not lead). Lack connections.

Problem Solving Bright, Clean, Safe Environment

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Kaizen – Deliberately Recruit Diversity

1. Recruiting POC and female technicians is challenging.

2. We have many STEM partnerships. Must consciously connect with under-represented groups.

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Kaizen - Point STEM Students Toward Mfg Jobs

Ben Harley

A Tale of 2 Wayward High School Students

Saturation with STEM in Middle / High School….

1. Is not enough by itself. Students need practical guidance. - Based on individual circumstances - Must see it through to employment 2. Cannot be sustained. Teachers can burn-out quickly.

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End

MOFAME First Graduating Class 28