May 10, 2014 / best practices, continuous improvement, Employee Morale, human capital, industry news, LIT, maintaining talent, operator training, quality, root cause analysis, skills gap
There is no question that the skills gap is one of the most pressing issues for industrial metal-cutting companies and, of course, the manufacturing industry at large. According to a recent article from the U.S. News & World Report, it is estimated that more than half a million skilled manufacturing jobs remain unfilled due to the labor skills gap in the U.S., and that number will likely increase as more and more Americans age out of the workforce.
As we covered here, this has prompted industry leaders like GE and industry associations like the Society of Manufacturing Engineers (SME) to take action. Just last week, JPMorgan Chase & Company announced a $5-million commitment to the city of Dallas to help shrink the skills gap within several industries. The move is part of a five-year, $250-million national initiative Chase launched in December to provide job training and fund local research to identify the areas most in need. As this video explains, the banking giant is using real data to identify real needs and then investing in those needs to fill the actual gaps.
While these types of large-scale initiatives might be left to large-scale companies, Chase’s strategy is one that just about any fabricator can apply to their own operations. Like Chase, fabricators that want to make a real difference in their business need to identify the actual gaps within their own company walls. This is especially true if a large number of your workers are headed for retirement. Once you have identified the gaps within your organization, you can determine the skills that are needed and then adjust your training and hiring programs accordingly.
The following are two strategies that can help you determine if (and where) there are skills gaps in your operation:
- Map them out—literally. Marlin Steel, featured in a profile on thefabricator.com, is using a Skills Matrix to ensure that its shop always has someone available to perform the necessary skills. In a Q&A with the trade publication, Marlin Steel President Drew Greenblatt explains that the Skills Matrix is essentially a Microsoft Excel spreadsheet that identifies each worker’s skill set. Each skill is awarded a point value and, in essence, ranks workers by their skill level. This helps the shop identify strengths, gaps, and individual opportunities for improvement. It also encourages cross-training. To make it a win-win situation, Greenblatt provides financial compensation every time a worker adds a skill. (You can read the rest of the interview here.)
- Identify problem areas. Another method for identifying skills gaps in your fabrication shop is to evaluate your workers on the job to determine whether or not they are causing avoidable errors or inefficiencies. Here are a few tactics described in a white paper from LIT that can help managers identify problem areas:
- Conduct a time analysis to measure shop floor efficiency. You can read the specifics on how to conduct an analysis here. Once the analysis is performed, managers can review the results to identify inefficient workers, patterns when certain tasks are performed (i.e., cutting different grades of material), and baselines for improvement. Ideally, this is performed without worker knowledge in order to get a more accurate picture of performance.
- Take a close look at inventory levels. Even if an organization is meeting customer orders, high levels of inventory can indicate “hidden” inefficiency and quality issues. Waste and remnants are often the result of operator errors such as incorrect machine settings and improper blade usage—both of which point to a lack of training or knowledge.
- Implement some form of process control. Without a paper trail, it is difficult for managers to find the source of operational issues, including problem operators. By having processes in place to hold operators accountable such as daily checklists, maintenance reports, defect reports, and signatures to hold operators accountable, executives can quickly and easily pinpoint the cause of workflow bottlenecks, increased tooling costs, and other issues that can impact business performance.
As the skills gap is proving, investing in your human capital is just as critical as investing in your technology and equipment. Taking the time to identify strengths and weaknesses within your operations staff—and then encouraging and rewarding improvement—is one way industrial metal-cutting leaders can equip themselves for today, as well as the future.