Manufacturing Our Future Summit 1998: An Economic Summit
October 6 – 8, 1998
Hosted at the Worcester Centrum Centre
Training Report
Introduction
Education, Training and School to Work Programs conducted through
the Manufacturing Advancement Center are all endorsed by the National
Coalition for Advanced Manufacturing (NACFAM) in collaboration with
C.J. Shroll, Vice President – Workforce Development and Director
– National Skill Standards for Manufacturing. The reasons for paying
special attention to the development of skill standards in manufacturing
and their role in workforce development programs are outlined in the
following text.
Background and Needs
Economist Lester Thurow of MIT wrote, "The skills of the workforce
are going to be the key competitive weapon in the twenty-first century.
Brainpower will create new technologies, but skilled labor will be the
arm and legs that allow one to employ the new product and process technologies
that are being generated. Skilled people become the only competitive
edge." Alex Trotman, Chairman, Ford Motor Company and Chair,
National Employer Leadership Council, may have put it into better terms
when he said, "Making our workforce the most competitive in
the world is the key to ensuring the vitality of our industries, our
economy, and perhaps most importantly, our democracy."
Agile enterprises, those companies with the ability to respond quickly
to the constant technological changes and increasing empowered and demanding
customers, require skilled workers at all levels. Only skilled workers
can design and implement change quickly, often and with quality. As
we move into the next century, workers in high performance manufacturing
will need to possess a broader skill set than today’s workers.
In addition to basic academic and technical skills, workers will need
teamwork, customer service, communication, problem-solving and lifelong
learning skills.
Jobs for workers without the skills to implement technologies such
as, CAD, TQM, JIT, CNC, SPC and CAM, are rapidly disappearing. The graph
below illustrates the percentage for each of the major technologies
utilized in U.S. manufacturing today. These numbers will only continue
to grow as technology advances, displacing the unskilled jobs with those
that require more technical skills, and the ability to adapt to an ever-changing
manufacturing environment.
Technologies Used by the Majority of U.S. Manufacturers
In 1950, roughly 60% of the manufacturing jobs were unskilled.
Today that figure is 30% and by the year 2005, the number of unskilled
manufacturing jobs is expected to shrink to 15%. Another way of stating
this is what Peter Drucker repeatedly pointed out, the shift to knowledge
work means a shift from prefigured to configured responses. In other
words, instead of simply carrying out routines that have been figured
out by others, the knowledge worker must figure out what to do in this
or that situation. Today’s worker must also be able to work in
teams, communicate with customers, and continuously upgrade their skill
levels in order to maintain wages and job security.
If the center of gravity in the workplace has indeed shifted from those
who invoke prefigured routines to those who configure or construct their
responses, then it follows that the center of gravity in training must
shift from task-specific skill development, with its limited emphasis
on employee knowledge, to the development of general problem solving
skills and a greater increased emphasis on the employee’s knowledge
base and ways of keeping it current.
This is not only a manufacturing and/or education problem, but in the
larger scope effects the entire community. A unified, coordinated system
for preparing the workforce of the future is not only a benefit to employers,
but it is also very important to the local economy. Businesses can import
many resources needed for success, raw materials, executive talent,
technology, but depend on the local labor pool for employees at the
technical and service levels. It is the successful companies that will
provide the good paying jobs that enable a community to enjoy a high
and rising standard of living. If companies can not find qualified talent
in the local labor pool, there is a good possibility that they may close
or move to a more desirable location, and when this happens, the community
as a whole suffers. Indeed, the availability of high-quality technical
and career education, which leads to good jobs and opportunities for
career advancement, contributes to the quality of life of the entire
community. Successful communities will be those that develop a workforce
development system that equip people, of all age, with skills needed
by high performance manufacturers.
Unfortunately, few communities have a system that is filling this mission.
In fact, as employers adjust their hiring to find workers with these
broader skill sets, they report, in all industries and at all levels,
a substantial shortage of qualified applicants. This has lead to a growing
frustration among employers with the education and training system.
Employers believe that the K – 16 system should prepare people
for the new workplace, and are frustrated when graduates from high schools,
community colleges or universities don’t have the necessary skills.
The expectations of the K – 16 system held by employers is clearly
a minority view. Most educators, parents, students, and policymakers
expect the K – 16 system to meet a liberal arts/academic standard
leading to a four-year university degree. If they are frustrated with
the current system, it is that too few students are meeting the standards
needed to obtain the four-year degree. The major push to reform K –
12 education reflects these broad based expectations of preparing for
college by pushing for more rigorous standardized tests, higher academic
standards and higher academic expectations for all students. But what
about those students who do not want to go beyond high school and are
preparing to enter the workforce upon graduation? And, as pointed out
by the employers, what good is the Liberal Arts degree if the structure
of curriculum is not based on skills required in today’s workplace?
There are, of course, pieces of the current K – 16 system that
are more career oriented, vocational programs in high school, occupational
degrees at community colleges, and professional schools at universities.
But even those are built on the traditional model of fixed academic
and technical mastery leading to a degree. The broader skills and competencies
sought by employers are not normally part of even these career-oriented
programs.
Statistics show that 75% of students entering high school today will
not go on to complete the requirements of a four-year college degree.
At best, only about half of those who enroll in a four-year college
program have graduated six years later. Some estimate the figure to
be as low as 30%. In 1996, 27% of the freshmen class nation-wide dropped
out, an all-time high rate. And if you think that students will transfer
from a community college to a four-year program, think again, only 12%
are found on those campuses three years later.
If that is not discouraging enough, consider that currently one out
of every three students who graduate with a bachelor’s degree fails
to find a job in their field of study. Only one in two who graduate
with a professional credential such as teaching, engineering, accounting
or the biological sciences, will find commensurate employment. There
are not enough jobs to satisfy the professional goals of all college
graduates. While our nation’s colleges graduate more than a million
students with professional degrees each year, the economy only generates
600,000 jobs. By the year 2000, 25% of college graduates will be employed
in jobs that do not currently require a college education.
Yet we as a nation continue to support colleges and universities and
their public relations sales pitch. Every parent wants their child to
go to college. It is their firm believes that the only way to "get
ahead" in today’s society is with a four-year college degree.
Our educational guidance counselors cram the benefits of a post-secondary
degree.
Conversely manufacturing is an underserved market. Technical employment
is the fastest-growing segment of today’s labor market. Professional
occupations, mainly those that are supported by the traditional four-year
degree, make up only 20% of all jobs. This number has held steady for
almost 50 years. Technical jobs not only pay well, but are more plentiful
than professional jobs, and their numbers continue to grow. If someone
wants to continue their education after high school, then they should
consider a technical two-year programs. Graduates of two-year college
programs in high demand occupations such as, certified welders, machine
technicians, and even dental hygienists, usually find high-paying jobs
quickly. While graduates of four-year colleges who lack a career focus
in school find themselves working in low-skill, low-wage jobs while
they search in vain for an opening in the field for which they studied.
Labor market advantage for high-skill, high-wage jobs comes from education
that is focused on a career goal, not from education for the sake of
a degree.
John Clendenin of BellSouth said, "The bottom line in America’s
fight for long-term competitiveness ultimately will be won or lost not
in the halls of Congress, not in the boardrooms around the world, but
in America’s classrooms." We must supply our educators
and training community with the proper ammunition to win this battle.
We have just given examples of why they are currently ill prepared to
engage in this war. The question then becomes how do we, the manufacturers
and the community, along with the educators better equip our graduates
at all level to step-up to the challenge before us? The solution is
not going to happen overnight, but if we start today them we have a
chance. If we start tomorrow, we are already too late!
Resources
Defining the skills, background, and abilities of workers is subjective
in many ways. Those workers that decide not to pursue formal undergraduate
or graduate-level education yet seek to improve their knowledge about
their career, may attend various training sessions, seminars, or classes
in their specific area of expertise and receive certification of training
when these classes are completed. Those that sponsor the training session
may award these certificates to attendees of the seminars without discretion,
based solely on attendance.
Skill standards serve to "document the knowledge, skill, and abilities
required for workers to successfully perform in a given occupation or
field. Skill standards are the thread, which pulls together job requirements
with education, training, and career development programs. Academic
curricula can be more effectively integrated with hand-on employer training
programs through linkage of skill standards.
Many individual organizations have for some time recognized the problem
and independently they have taken steps to rectify the situation. However,
in isolation they are sometimes but a weak voice crying out in the wilderness.
They address only the particular industry they represent. One characteristic,
weather it is NIMS Approved, National Institute for METALWORKING skills,
distributed by The National Tooling and Machining Association, or those
developed by The National Printing Skills & Knowledge Standards
Project and adopted by the Printing Industries of America, or The Skills
Standards developed by PMA, Precision Metalforming Association, is that
they all contain a portion labeled core, basic or general knowledge
skills which may include some, if not all, of the following categories:
Communications Teamwork Math/Measurement
Health & Safety Problem Solving Quality Blueprint Reading
Mfg. Fundamental
Business Planning & Org. Computer Use Process Control
Workforce Issues Workplace Skills Learning Skills
To some degree these are the fundamental skills required by any individual
entering the workforce. It is with these basic ingredients that we can
start to define jobs in American Manufacturing. We have found that NACFAM,
the National Coalition for Advanced Manufacturing, has developed a set
of core skills, in each of the above subjects, called the National Skill
Standards for Advanced High Performance Manufacturing.
In 1994, passage of the National Skills Standards Act (NSSA) enabled
Congress to establish the National Skills Standards Board (NSSB), an
independent, non-partisan body whose function is to coordinate the development
of a voluntary system of skill standards to meet the needs of employees
and employers alike. In June of 1997, the NSSB awarded a grant to the
National Coalition for Advanced Manufacturing (NACFAM) and the Industrial
Union Department (IUD) of the AFL-CIO to create a voluntary partnership
capable of developing a nationwide system of voluntary standards for
manufacturing, installation and repair. The standards that have been
developed will assist employees gain skills that are transferable between
various sectors of industry and give employers access to skilled workers
whose abilities, background, and training are accredited through a nationally
recognized system of standards.
These are the core, or basic, skills on which all manufacturing industries
can, and should, build job descriptions and define manufacturing positions.
They are also the skills which can easily be communicated back to our
educational institutions and training providers by manufacturers and
employees. In some of the higher skilled positions, the skill standards
that have been developed by those previously noted, are used, and manufacturers
are able to identify gaps in their current workforce and can specifically
address these with educators and training providers. We need to standardize
the core standards so that everyone can easily communicate, in the same
language, their needs to the appropriate resource that can provide the
training. The long-term effect would be to eventually transfer this
training need back to our K – 16 educational systems.
The NACFAM Skill Standards, also referred to as the National Skill
Standards for Manufacturing, are less than two years old, yet there
is a ground swell of support across America for their use. Utilization
ranges from defining skills for a broad range of manufacturing jobs
to enhance workforce development and employee skills, to curriculum
development by schools and training providers. A list, supplied by C.J.
Shroll, of the organizations adopting these skill standard and their
intended applications can be found at the end of this paper on pages
15 and 16.
There remains the question of how do manufacturers go from the NACFAM
Skills Standards to those industry specific skill standards developed
by MINS, PMA, etc.?
Work in Progress
We are currently working with KomTeK, here in Worcester, and Space
Age Electronics, in Marlboro, to implement the NACFAM Skill Standards
into the job descriptions of entry-level positions. The process is educational
not only for us, but also for the employer and employees. Job descriptions
have gone from quantitative in nature to qualitative. They now represent
a more succinct synopsis in terms of skills essential to successfully
complete the required tasks for the position. Employers are beginning
to have a better understanding of what constitutes a qualified candidate
in terms of skills possessed prior to employment and for assuring success
on the job.
In order to identify the skills essential for a specific position,
a survey of those employees familiar with the job is the best possible
way to solicit quality information. The process begins with the selection
of the number of inputs that the employer feels can make a significant
contribution to the data required. Among those selected should be the
incumbent employees currently performing the job, employees that have,
in the past, been employed in the position, and the current supervisor.
To begin the process, an orientation session with these selected workforce
participants explaining the skill standards and their eventual use is
suggested. The purpose of this session is to unsure understanding and
buy-in from those involved. The next step is to give the participants
the complete list of skill standards by subset and ask them first, to
determine if the skill is required to perform the job (Example A). The
next question is how important is the skill in performing the tasks
required by the position. Importance is divided into three categories;
very important, somewhat important and not important. The definitions
for importance are as follows:
Very important – this selection means that the skill
is an essential part of the everyday requirements of the job. An employee
in this job needs this particular skill to complete tasks that are
the main portion of the job requirements.
Somewhat important – by selecting this choice, the employee
indicates that the skill is not required to perform certain tasks
that are everyday occurrences. However, the skill may be necessary
when performing an occasional task.
Not important – this means that the skill is not required
to perform any of the required tasks for the position, but knowledge
of the skill would be of some assistance to job performance.
After this initial survey is completed, the next phase would be to
establish a review team to analyze the results and determine the required
skills for each position. Through consensus building, the review team’s
responsibility is to develop skill standards for each job. It would
also be responsible for adding additional job, department, and company
specific skills. The review team should be composed of personnel from
human resources, management, organized labor, and one of the more senior
position incumbents. A third party, not employed by the organization,
should facilitate the review team meetings. The result from the review
team is to produce a complete list, by subset, of each skill required
for a specific position resulting in good job performance.
After completing the identification and development steps, the list
of complete skills for a specific job should be given to the current
incumbents asking for their input as to their particular proficiency
with each skill (Example B). Only those skills required for the job
appear on this form, along with four levels of proficiency. The definitions
of those four levels are:
Aware – this means that you have heard about this skill
and recognize its importance in the workplace. You have been exposed
to this skill or knowledge by reading, listening or observing.
Know – at this level you can explain this skill, and
its importance, to someone else. You can recall the information about
the skill or knowledge. You can make some use of the skill or knowledge
in the workplace.
Perform – selecting this choice means you can use the
skill at the required level in the workplace. You also have the ability
to use ideas, methods, concepts, principles, and theories in new situations.
Need training – select this box if you have an immediate
need or desire to be involved in training to improve this particular
skill and/or knowledge.
With this input from each incumbent the organization is able to compile
training requirements for individuals, and as more positions are added,
groups of employees. These needs or gaps are easily identified and communicated
to the educational community and other training providers. Also, as
more and more jobs are completed, a company-wide skill standards database,
company skills profile, can be developed (Example C). This profile will
identify skills that transcend the individual position or department,
and are applicable company wide. These are the skills that the company
needs to maintain by frequent training programs and updates.
Conclusions
But it does not stop there. As other companies implement skill standards
within their organizations a consortium of company can form to provide
training at reduced cost. The more companies that are on-board, a community-wide
skills profile can be developed. This skill profile represents those
skills required throughout all of manufacturing at the community level.
At this community level, the aggregate of a number of company specific
profiles, supported by the national information, will give a more clear
direction to the schools, students and parents about the learning that
should be taking place in the community’s schools. This type of
information becomes a powerful voice to the educational community, as
to the skills required by the local labor market. By utilizing clear
and specific skill standards as a foundation for curriculum and learning,
schools will be better able to document student achievement relative
to the world of work.
The Manufacturing Advancement Center’s goal is to assist you,
the employer, in implementing the NACFAM Skill Standards into your organization.
We will provide materials to begin the process and hold orientation
sessions with employees. Our role is also as facilitator of the review
team meeting to determine individual job skills. We are in the process
of developing the Manufacturing Advancement Center Workforce Educational
Consortium (MACWEC) to provide companies with a clearinghouse for training
programs, assisting them in finding the right training provider, announcing
classes and developing courses, all at a reduced cost to the individual
company. We can strengthen the communications between manufacturing
and the educational community and develop partnerships that are responsive
to the needs of the community.
Our long-term goal is to establish these skill standards so that manufacturers
use their company-specific profiles to advertise for new employees based
on the skills and knowledge needed.
This will be a significant and welcome improvement to the current form
of most job descriptions and job title based ads.
Potential applicants can then more easily and accurately compare their
own skill profile with a company’s current needs. This will enable
the portability of skills and break through the barrier of "no
experience" in a particular job title. This improved system of
ads and responses will greatly reduce the cost to employers and the
anguish of applicants by minimizing the screening of applicants and
assessing work readiness by temporary work assignments. It will also
reduce the number of new-hires that "do not work out" because
of different expectations and unfounded assumptions.
The Road Ahead
The following graph represents the amount of dollars spent for computers
by U.S. business since1970. From 1978 to 1996 the amount has risen from
$1 billion to $132.8 billion. These expenditures also signify the emergence
of new technology in manufacturing. A remarkable amount of these technological
advances have been brought on by the advent of the computer and its
evolution over the last three decades.
The computer continues to usher in these technological advancements
in manufacturing, and with it comes the demand for a more sophisticated
workforce. As computer technology grows, its use in manufacturing will
also grow. The two are forever linked and the workforce that can grow
with each will establish a competitive edge in today’s global economy.
Today’s workforce will need those skills to achieve tomorrow’s
goals, and the ability to understand that working and learning are also
intertwined. The NACFAM Skill Standards are the first step in developing
that workforce.
While the use of skill standards in manufacturing remains strictly
voluntary, it is our belief that various manufacturers will integrate
them into their work because skill standards have proven to be highly
beneficial in achieving other stakeholders’ respective goals. They
have been able to see what is in it for them. Specifically, through
a system built on continuous improvement, the use of skill standards
will have the following results:
Increased number of high-skilled high-wage jobs
Increased productivity growth rates.
Increased sustainability of manufacturing companies, resulting in
increased employment security for workers
Demonstrated effectiveness of various education and training providers
ensuring that workers and students achieve levels of performance set
by standards
Increased capital investment
Increased labor mobility and portability
The Manufacturing Advancement Center will continue to seek out companies
that are advanced high-performance manufacturers. The type of companies
who are using computer-based technologies, teamwork, and communications
integrated into a system capable of furnishing a mix of products in
large and small volumes, with efficiency of mass production and the
responsiveness of custom manufacturing. Such firms are further characterized
as having empowered workers, using TQM and JIT, and continuously improving
to be lean and agile. The MAC will also embrace those companies who
have the desire and determination to become advanced high performance
manufacturers.
It is our goal to add five to ten additional manufacturers to the skill
standards database within the next year. The objective is to produce
seven to twelve company skills profiles leading to the community skills
profile. These companies will determine the basic skills required by
the workers of the twenty-first century. The MAC will assist them as
they continue to develop employees, because they have recognized that
the employees are their competitive edge, and that finding, training
and keeping qualified workers will be the priority in the years to come.
As we continue to work with companies large and small throughout the
central Massachusetts region, it is our goal to provide the areas manufacturers
with quality employee training, which will allow manufacturers to compete
in a global economy. The development of the Manufacturing Advancement
Center Workforce Education Consortium is our next step. This program
coupled with company-wide skill profile will allow manufacturers throughout
the region to provide their employees with the best training possible,
as identified by the assessment of skill standards.
For more information on the National Coalition for Advanced Manufacturing
Skill Standards and how you can use them in your organization, contact
Manufacturing Advancement Center, 100 Grove Street., Worcester, MA 01605
or call (508) 831-7020.
