Structured On-the Structured On-the Job Training and Job Training and

Change Change Management:Management:

Learning, Reducing Cost & Learning, Reducing Cost & Increasing ProductivityIncreasing Productivityby: Phillip Milazzo, Exide Technologiesby: Phillip Milazzo, Exide Technologies

Steve L. Whatley, The Ohio State Steve L. Whatley, The Ohio State UniversityUniversity

Cheryl L. Engle, The Ohio State Cheryl L. Engle, The Ohio State UniversityUniversity

2

Organization ProfileOrganization Profile Exide TechnologiesExide Technologies

17,000 employees17,000 employees Operating in 89 countriesOperating in 89 countries Net sales $2.4 billionNet sales $2.4 billion

Global Business GroupsGlobal Business Groups Collective market potential $9.4 billionCollective market potential $9.4 billion

TransportationTransportation MotiveMotive Industrial EnergyIndustrial Energy

Organization Profile Organization Profile (cont’d.)(cont’d.)

Primary Unit of AnalysisPrimary Unit of Analysis Vernon Recycling Facility, California Vernon Recycling Facility, California

U.S.A.U.S.A. Est. 1924Est. 1924 Employs 108 peopleEmploys 108 people 105,000 tons of recycled lead/annually105,000 tons of recycled lead/annually

Closed-loop Recycling SystemClosed-loop Recycling System Key performance indicatorsKey performance indicators

EnvironmentEnvironment ProductivityProductivity

Organizational Organizational CrossroadsCrossroads

Past Worldwide PhilosophyPast Worldwide Philosophy Batch manufacturingBatch manufacturing Lack of equipment maintenanceLack of equipment maintenance ErgonomicsErgonomics

Newly Adopted Newly Adopted PhilosophyPhilosophy

Key performance indicatorsKey performance indicators SafetySafety

Lost time accidents (LTA)Lost time accidents (LTA) Blood lead levelsBlood lead levels

The EnvironmentThe Environment Testing of air, water and waste emissionsTesting of air, water and waste emissions

QualityQuality Internal/External customer specificationsInternal/External customer specifications Value-added workValue-added work Reduce errors/defectsReduce errors/defects Continuous improvement cultureContinuous improvement culture

ProductivityProductivity OEE measurementsOEE measurements

Problems Confronting the Problems Confronting the OrganizationOrganization

Adverse economic conditionsAdverse economic conditions On-going competitive pressureOn-going competitive pressure Capital market volatilityCapital market volatility Production cost structureProduction cost structure Company-wide reorganizationCompany-wide reorganization Filed for Chapter 11 bankruptcy (2002)Filed for Chapter 11 bankruptcy (2002) Joint Plan of Reorganization confirmed Joint Plan of Reorganization confirmed

(2004)(2004)

EXCELLEXCELLEXide’s Customer-focused EXide’s Customer-focused

Excellence Lean Leadership Excellence Lean Leadership systemsystem

Change Change management management philosophyphilosophy

Lean management Lean management strategiesstrategies

Source: EXCELL system, Exide Technologies, Milazzo, 2002

Concepts of LEAN Concepts of LEAN ManufacturingManufacturing

Elimination Elimination of wasteof waste

ImplementaImplementation of tion of continuous continuous flow and flow and customer-customer-pull pull techniquestechniques Source: EXCELL Strategies, Exide Technologies, Milazzo,

2002

Structured-on-the-Job Structured-on-the-Job TrainingTraining(S-OJT)(S-OJT)

Lean leadersLean leaders Employee trainersEmployee trainers Departmental interfaceDepartmental interface Lean practices training and Lean practices training and

coaching coaching Communication…. is key!Communication…. is key!

Source: Building Momentum, Exide Technologies, Orzel, 2004

EXCELL’s Universal EXCELL’s Universal MetricMetric

““Leveled Leveled the the playing playing field” for field” for all all business business entities entities worldwidworldwidee

Source: Building Momentum, Exide Technologies, Orzel, 2004

Design, Role & Context of Design, Role & Context of TrainingTraining

Training transfer Training transfer (Clark & Voogel, 1985; Baldwin & (Clark & Voogel, 1985; Baldwin &

Ford 1988; Stein, 2001; Jacobs, 2003)Ford 1988; Stein, 2001; Jacobs, 2003) Selection of training designSelection of training design Situational learningSituational learning Knowledge creationKnowledge creation

S-OJT defined (Jacobs, 2003)S-OJT defined (Jacobs, 2003) ““the planned process of developing the planned process of developing

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

Systems ThinkingSystems Thinking

S-OJT as a systemS-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 and EXCELLS-OJT and EXCELL

Adoption of Lean Manufacturing Adoption of Lean Manufacturing PrinciplesPrinciples

Embedded S-OJT in situated work Embedded S-OJT in situated work settingsetting KaizenKaizen Problem-solvingProblem-solving Performance improvement Performance improvement

strategiesstrategies Operational efficiencyOperational efficiency

S-OJT InterventionsS-OJT Interventions

Lean Lean manufactumanufacturing ring principlesprinciples

Source: Building Momentum, Exide Technologies, Orzel, 2004

Kaizen EventsKaizen Events

S-OJT Interventions S-OJT Interventions (con’t.d)(con’t.d)

Source: Building Momentum, Exide Technologies, Orzel, 2004

S-OJT Interventions S-OJT Interventions (con’t.d)(con’t.d)

Just-in-TimeJust-in-Time

Source: Building Momentum, Exide Technologies, Orzel, 2004

Results of S-OJT and Results of S-OJT and EXCELLEXCELL

Corporate success storyCorporate success story Vernon Recycling FacilityVernon Recycling Facility World class leader in North AmericaWorld class leader in North America Secondary lead battery recyclingSecondary lead battery recycling Carlos E. Pena, Plant Manager Carlos E. Pena, Plant Manager

carlos.pena@exide.comcarlos.pena@exide.com

Key Performance IndicatorsKey Performance Indicators SafetySafety

Reduction of LTA’s by 100%Reduction of LTA’s by 100% Blood lead standards (30 ug/100g) < OSHA (50 Blood lead standards (30 ug/100g) < OSHA (50

ug/100g) ug/100g)

Results of S-OJT and Results of S-OJT and EXCELL EXCELL (cont’d.)(cont’d.)

Key Performance IndicatorsKey Performance Indicators The EnvironmentThe Environment

Since EXCELL’s implementation…Since EXCELL’s implementation… Notices of violation filed: (2) in 2002, (1) in Notices of violation filed: (2) in 2002, (1) in

20032003 None filed in 2004None filed in 2004 Renewed commitment to employee safety Renewed commitment to employee safety

and the environmentand the environment

Results of S-OJT and Results of S-OJT and EXCELL EXCELL (cont’d.)(cont’d.)

Key Performance Key Performance IndicatorsIndicators

Source: Vernon Smelting Facility statement, Exide Technologies, 2004

QualityQuality 90%

reduction in DPPM

Achieved Silver recognition (2004)

Results of S-OJT and Results of S-OJT and EXCELL EXCELL (cont’d.)(cont’d.)

Key Performance IndicatorsKey Performance Indicators ProductivityProductivity

Team emphasisTeam emphasis Productivity increased by 11%Productivity increased by 11% Man hours/ton of lead improved 42%Man hours/ton of lead improved 42% Decreased cycle time of 42%Decreased cycle time of 42% Dock-to-Dock time reduction of 23%Dock-to-Dock time reduction of 23% Vernon’s OEE = 86.4%Vernon’s OEE = 86.4%

1.4% above world class standard1.4% above world class standard Profitability increased by 42.6%Profitability increased by 42.6%

Organizational CultureOrganizational Culture

Self-directed work teamsSelf-directed work teams Embedded cross-trainingEmbedded cross-training Implementation of EXCELL a Implementation of EXCELL a

successsuccess Employee ownership, problem-Employee ownership, problem-

solving, and performance solving, and performance improvementimprovement

Implications for HRDImplications for HRD Performance paradigmPerformance paradigm Learning and performance at ExideLearning and performance at Exide

Organization of 3 basic performance Organization of 3 basic performance levelslevels

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

Prioritized 4 key performance indicatorsPrioritized 4 key performance indicators SafetySafety The EnvironmentThe Environment QualityQuality ProductivityProductivity

For further information…For further information…

Phillip MilazzoPhillip Milazzo

Exide TechnologiesExide Technologies

13000 Deerfield Parkway Building 20013000 Deerfield Parkway Building 200

Alpharetta, GA 30004 U.S.A.Alpharetta, GA 30004 U.S.A.

Work phone: 678.566.9631Work phone: 678.566.9631

E-mail: E-mail: pmilazzo@exide.compmilazzo@exide.com

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

PersonnelPersonnel

Psychology,Psychology, 41(1), pp. 63-105. 41(1), pp. 63-105. Clark, R. E., & Voogel, A. (1985). Transfer of training principles for instruction design. Clark, R. E., & Voogel, A. (1985). Transfer of training principles for instruction design. Educational Educational

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and technology,and technology, 33(2), pp.113-125. 33(2), pp.113-125. Drucker, P. F. (1995). Drucker, P. F. (1995). Managing in a time of great change.Managing in a time of great change. New York: Harper Business. New York: Harper Business. Exide Fast Facts. (2002). Retrieved April 14, 2004, from http://Exide Fast Facts. (2002). Retrieved April 14, 2004, from http://www.exideworld.com/pdf/company_facts.pdfwww.exideworld.com/pdf/company_facts.pdf Exide’s Lead Recycling Campaign poster downloaded from Exide’s Lead Recycling Campaign poster downloaded from http://http://www.exideworld.comwww.exideworld.com// on 11.07.04 on 11.07.04 Exide Technologies. (2004, March). Exide Technologies. (2004, March). State of Performance – Vernon Recycling Facility.State of Performance – Vernon Recycling Facility. Los Angeles: Author. Los Angeles: Author. Exide Technologies Network Power – The Industry Leader. (2003). Retrieved May 5, 2004, fromExide Technologies Network Power – The Industry Leader. (2003). Retrieved May 5, 2004, from

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Francisco: Berrett-Koehler Publisher.Francisco: Berrett-Koehler Publisher. Milazzo, P. (2002). The Lean Turnaround: Lean Manufacturing in Crisis Mode.Milazzo, P. (2002). The Lean Turnaround: Lean Manufacturing in Crisis Mode. Presented at the 2002 Presented at the 2002

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

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management review.management review. 11(4), pp. 736-749. 11(4), pp. 736-749. Orzel, D. (2004). Building Momentum. Presented at the 2004 Auto Manufacturing Conference. Retrieved Orzel, D. (2004). Building Momentum. Presented at the 2004 Auto Manufacturing Conference. Retrieved

May 5, 2004, from May 5, 2004, from http://http://www.exideworld.com/pdf/building_momentum.pdfwww.exideworld.com/pdf/building_momentum.pdf.. Pena, C. (2004). Vernon Smelting Facility General Statement, Los Angeles, CA.Pena, C. (2004). Vernon Smelting Facility General Statement, Los Angeles, CA. Rummler, G. A., & Brache, A. P. (1995). Rummler, G. A., & Brache, A. P. (1995). Improving performance: How to manage the white space on theImproving performance: How to manage the white space on the

organization chart. organization chart. (2nd ed.). San Francisco: Jossey-Bass.(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.Stein, D. S. (2001). Situated learning and planned training on the job. In R. L. Jacobs (Issue Editor) & R. A. Swanson (Editor-in-Chief) Swanson (Editor-in-Chief) Advances in developing human resources: Planned training on the job, Advances in developing human resources: Planned training on the job, 3(4), 3(4),

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RJR

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Questions?Questions?

Thanks for your kind attention.Thanks for your kind attention.

Copyright © 2004 Phillip Milazzo, Steve L. Whatley, & Cheryl L. Engle