DDIN Library

PEOPLE POWER

Details: Written by Robert Larson

In over 50 years of working in the diecutting process, I have witnessed numerous occasions where two companies are diecutting similar component parts for the same type of product. I have seen situations where one commercial diecutting company was mystified how their competition could produce parts more economically than they could. How can one company die cut parts at a lower cost per cut part than the other? What could be, be the missing element? Was it a greater investment in equipment, more advanced systems or better people?

In most cases, I have found that the difference between companies is based in people power, not necessarily equipment. Let me explain. I have seen many instances where two competing companies have invested in comparable types of diecutting equipment and associated systems. In some cases, the identical make and model of equipment was in each organization.

I have also seen a number of cases where a diecutting operation had less than ideal diecutting press systems ranging from old punch presses to a wide array of different diecutting presses. In some of these operations, productivity was very high because the people who manage and operate the diecutting operation totally understand how to get the best out of the diecutting systems that they have been forced to work with.

I remember a recent phone call from a diecutting department manager. After explaining his diecutting situation, he admitted that his current dilemma as a people problem. It seems that his company at one time had an excellent diecutting operation. His foremen, set-up people and operators were all first class. In the past few years, several key people retired. Several moved on to new jobs. He admitted that today, he has lost most of the experienced old hands in the diecutting department. The remaining people just do not have the experience and knowledge to operate as efficiently as in the past. I asked him how this could happen. His answer was rather simplistic. He didn’t realize what was happening until it was too late, after he had lost what he had had in the past, his pool of experienced people.

Transfer of Experience

What had happened to the above company probably related to two factors, first the transferal of experience from one generation of workers to the younger generation and second a company’s dedication to or lack of continual training. First let’s look at how a company handles the transfer of knowledge from one generation to the next.

I have seen a number of cases where several old hands in the shop were the in-house experts in setting up a job and making it run smoothly. They had developed a wealth of knowledge on how to operate and troubleshoot the diecutting presses, run all types of jobs and keep the shop humming and productive. Their many priceless hands-on experiences and time in service so they had experienced every situation and problem. They were the masters of their trade.

Some of these old timers held their knowledge close to their chests. They considered their knowledge as their security blankets. Their knowledge was their personal possession and that was what insured their future with the company. They did not necessarily want any young whippersnappers tagging along behind them getting in the way. I am certain that you have seen this type in many shops. Their managers did not want to agitate their prim Donna’s, so they tolerated their actions. The day eventually came when “Old Joe” stopped coming to work. Then they noticed the vacuum of knowledge. Oh yes, others did their best to fill the vacuum. The reality of the situation was that there had been a loss of experience in the department that resulted in decreased knowledge to maintain productivity.

On the other side of the coin, I recently visited a company that had the opposite point of insuring the transference of knowledge in the company. I was introduced to an elderly gentleman that I will call Carlos. He was 72 years old, but still as spry and agile as person years younger. He was a master at his trade. To coin an old cliché, he had forgotten more than most other people in the company knew in his area of expertise. You know the type. He was also a mentor to his younger prodigy. Jose had one mission in life in the department and that was to learn everything that his elderly mentor could pass on to him. The management of this company knew that knowledge and experience was a priceless commodity that had to be transferred from one generation to the next. I applauded the wisdom of this company. Old Joe knew his working life was in his twilight years. He seemed to enjoy being the mentor and guiding his young apprentice to carry on his craft and skills.

The Art of Continual Training

Training and formal education costs money and takes time way from the production floor. Unfortunately, this is the attitude of many companies. When there is a squeeze on costs due to competitive situations, two elements in a company tend to get sidelined, training and maintenance. The company that falls for this line of reasoning often is setting itself up for a rusty future.

When a company does not realize the importance of training, it is setting the stage for limiting its future competency in the competitive marketplace. It is limiting its people in reaching their true levels of competence on the job and maximizing their productivity. Training is a commitment that management has to live with on a day-to-day basis.

Training comes in many forms from shared on the job experiences, to formal classroom sessions, to extension courses to Internet educational programs. There are all types of training opportunities that can be tailored to every workers needs. The key element of importance is that management realizes the importance to invest in training opportunities that develop a truly productive and efficient workforce.

Time and the cost of training and education is an investment in the future. Training can be as basic as maintenance procedures on equipment to training people to use new systems and equipment. In the typical diecutting department, training sessions can encompass topics as varied as diecutting techniques, safety and health issues, just in time issues, set-up procedures, troubleshooting and information the different materials being die cut.

Look at People as Assets

Look on the balance sheet of any business organization. You will see the value of a company’s assets. The assets include items like equipment, facilities, computer systems and so forth. One vital measure of an organizations value that is always missing is the value of people’s knowledge and creativity within the organization. What you do not see is probably the most important indictor of a company’s health. As I have mentioned before, you can have the best equipment and systems, it is the value of the people power or excellence that make the difference. It is that extra amount of people power from one competitor to another that often can tip the competitive balance from one company to another.

I would like to see an entry on a balance sheet under assets for People Assets. Sound like a rather unusual classification or concept? How do you measure the value of your people assets within an organization?

What ever the value or rating, it does definitely vary from organization to organization. It also varies from time to time in any organization. The important concern or criteria is to maintain that value on a consistent high plane or level in the organization. For example, how do you measure the value of the loss of an experienced setup person in your diecutting department that does not have a trained replacement to carry on that vital task? You lose a trained experienced diecutting press operator with 15 ears of experience. A novice entry-level operator with little or no training replaces him. How much does your people power asset value rating drop in the company? How long, if ever, does it take to replace the loss of knowledge or productivity?

Many companies have experienced this phenomenon in the past and did not even realize it until it was too late. I have seen this situation on so many consulting assets that I have conducted in a number of companies. All of a sudden, some savvy manager wakes up to the fact that things just are not going as well as in the past. How do you correct the situation? In some cases, they call in “
The Consultant” to get them back into high gear again. I have been in that situation. What I have often seen is a company that was just too busy to too take the time to put in place and maintain a formal or on-the-job training program.

A Management Dilemma

Whether management realizes it’s current people power rating depends upon several factors. Often management is so focused on cost control and immediate results that they tend to lose focus on the future and what immediate effects can have on the future. Unfortunately. I see too many companies being controlled by the bean counters vs. individuals who understand the value of people and their potentials to make a difference in productivity and profitability. Yes, it does cost money to train and educate the work force. Rather than looking at the expense as a cost, management should look at the cost of training as an investment that will pay great dividends in the future.

I recently read on article in a Florida newspaper about NASA’s decision not to fund a back up science module for the new international space station. If a disaster should happen on a launch, a shuttle with its precious space station module cargo could be lost. That could severely delay the program or even destroy or change the future mission of the program. Let’s hope that such a disaster does not occur as did the explosion of the xxxxxx shuttle in 19xx. NASA has built in a potential disaster element into its program.

How many companies have knowingly or un-knowingly have made decisions that can have an adverse affect in future operations. What seems to be a logical decision today can come back to bite you later on. Short changing training experiences could be one of those time bombs that will explode in the production process at some undetermined time in the future. Does it make sense to short change training opportunities today to save that “expense” in the current budget? Most progressive and forward thinking companies would not take the route of cutting out training and educational experiences for its workforce. Other less foresighted managements could take the easier route and hold off on training to boost current profits.

Treasure your People Resources

Within in any organization, you can find many individuals who have priceless knowledge and experience that is a key to success to the future well being of the operation. The greatest insurance policy for success are the monthly, quarterly or annual payments in nurturing the knowledge of your present workforce on to the younger future managers, lead workers and production people in your company. Transference of experience has to be a prime motivation for the management of every company. Trained and motivated people will make the difference, not only on the bottom line, but also on the future success of each company.