Guide to Optimal Maintenance & Reliability--Workforce Management [part 2]

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6. People Development

Developing people within an organization should be viewed as an investment. Then it becomes easy to understand the importance of maintaining this key resource so that it keeps performing at optimum level. If we know the cost of replacing an employee, then it’s easy to conclude that getting the most from employees just makes good business sense.

But this is much easier said than done, particularly with so many diverse behaviors, motivations, and desires. How do we develop our people resources? There are several ways to help increase personal satisfaction and productivity that will benefit the employees and the organization.

Are people performing their jobs to the best of their abilities? What additional training would allow particular employees to do their job better? (Answers may include personal development, skills training, or both.) Can job rotations or on-the-job training (OJT) with experienced coworkers enhance employees' skills and awareness of how their work fits into overall organization's goals? Could their tasks be automated, allowing people to grow in other areas? These are some of the questions we need to consider while developing a plan to enhance knowledge and skill sets of our people. Job task analysis is one of the techniques that could be used to identify specific training needs, ensuring that employees have appropriate knowledge and skill sets to do their jobs effectively.

Job Task Analysis (JTA)

Job task analysis is the foundation of a successful training program.

Before employees can be trained, we must identify what they need to learn. Job analysis is a process that determines in detail the particular duties and requirements for a given job as well as the relative importance of these duties.

A job is a collection of tasks and responsibilities that are assigned to an employee. A task is typically defined as a unit of work, that is, a set of activities needed to produce some result, e.g., changing belts, repairing a pump, delivering or expediting material, performing FMEAs, or sorting the mail. Complex positions in the organization may include a large number of tasks, which are sometimes referred to as functions. Job descriptions are lists of the general tasks, or functions, and responsibilities of a position. Typically, they also include to whom the position reports, specifications such as the qualifications needed by the person in the job, salary range for the position, etc.

Job descriptions are usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. The analysis looks at the areas of knowledge and skills needed for the job. A role is the set of responsibilities or expected results associated with a job. A job usually includes several roles. An important aspect of job analysis is that the analysis is conducted for the job functions, not the person. Although job analysis data may be collected from incumbents through interviews or questionnaires, the product of the analysis is a description or specifications of the job, not a description of the person.

The purpose of job analysis is to establish and document the skills required for performing the job effectively. This can help in employment procedures such as selection of employee, compensation, performance appraisal, and training.

New Hire Selection Process/Procedures

Job Analysis can be used in the selection process to identify or develop:

• Job duties that should be included in advertisements of vacant positions

• Appropriate salary level for the position to help determine what salary should be offered to a candidate

• Minimum requirements (education and experience) for screening applicants

• Interview questions

• Selection instruments (e.g., written tests; oral tests; job simulations)

• Applicant appraisal and evaluation forms

• Orientation materials for applicants and new hires

Performance Review

Job analysis can be used in the performance review to identify or develop:

• Goals and objectives

• Performance standards

• Evaluation criteria

• Job duties to be evaluated

• Time period between evaluations

Determining Training Needs

Job analysis can be used to identify required knowledge and skills and to develop appropriate training, including:

• Training content

• Assessment tests to measure effectiveness of training

• Equipment to be used in delivering the training

• Methods of training (e.g., small group, computer-based, video, classroom)

Several methods may be used individually or in combination to per form job analysis.

These include:

• Review of job classification systems

• Incumbent interviews and logs

• Observations

• Area supervisor interviews

• Expert panels

• Structured questionnaires

• Task inventories

• Check lists

A typical method of job analysis is to give the incumbent a simple questionnaire to identify job duties, responsibilities, equipment used, work relationships, and work environment. The completed questionnaire is then used to assist the job analyst, who conducts an interview with the incumbents. Next, a draft of the identified job duties, responsibilities, work environment, asset and tools knowledge, and relationships is reviewed with the supervisor for accuracy. The job analyst then prepares a job description and job specifications. In case of a new position, the job analyst prepares the document with the help of the requester and area supervisor. Information collected by the job analyst can be grouped into the following five categories:

Duties and Tasks

The basic unit of a job is the performance of specific tasks and duties.

Information to be collected about these items may include: frequency, duration, effort, skill, complexity, equipment, and standards.

Environment

The work environment may include unpleasant conditions such as temperature extremes, offensive odors, and physical limitations (or constraints) that can hinder the job performance. There may also be definite risks such as noxious fumes, radioactive exposures such as X-rays, and dangerous explosives.

Tools and Equipment

Some duties and tasks are performed using specific equipment and tools. Equipment may include protective clothing. These items need to be specified in a job analysis.

Relationships

Is supervision required or not? What kind of interaction does this job require-internally with fellow employees or externally with others out side the organization? Requirements

Knowledge, skills, and abilities (KSAs) are required to perform the job. Although an incumbent may have higher KSAs than those required for the job, a job analysis typically states only the minimum requirements to perform the job.

Skills Development Training

The skill level of the maintenance personnel in most organizations today is well below what industry would classify as acceptable. The literacy level of many maintenance personnel is becoming a challenge. New entry-level employees have shown a noticeable drop in basic math and reading skills. They have also shown a lack of interest in Operations and Maintenance related work. Moreover, many organizations have eliminated their apprenticeship programs so now they are unable to fill their own positions with qualified employees. These factors are creating a great demand for employees with acceptable skill levels.

Today's assets and systems are increasingly complex. They require an educated and skilled workforce to operate and maintain them effectively.

It has been determined by several studies that today's craft person requires a minimum educational level of 12 years with additional vocational training to meet the work requirements.

Numerous studies have also shown that 70-80% of equipment failures are self-induced; most of those are a result of human error. All human error failures can't be blamed on education or skills, but they do make the problem worse.

The U.S. Department of Education funded a survey by the Bureau of Census to determine how training impacts productivity. The survey revealed that increasing an individual's educational level by 10% increases the productivity by 8.6%. Several other research studies have indicated similar results. Educated and skilled workforce improves productivity and reduces human-induced errors.

A well-developed training program based on job task analysis and maintenance skills assessment can provide the solution to inadequate maintenance skills availability. The training must be focused to produce results as quickly as possible and must also meet an organization's long term goals. Maintenance training, when developed and implemented properly, can help organizations save money, increase productivity and product quality, and improve employee morale.

The training curriculum should include at a minimum:

a) Regulatory and safety requirements, e.g. OSHA, EPA, FDA

b) Technical

i) Asset/System-operations and maintenance

To provide basic understanding of how an asset or system operates and how it interfaces with utilities and other assets.

It may include minimum maintenance needs or operator required maintenance.

ii) Specific repair techniques and technology

To provide new repair technique or technology-related training, e.g., hydraulic servo valves, vibration, ultrasonic, and laser alignment

iii) Professional development

RCM, FMEA, 6-Sigma tools, blueprint reading, etc.

c) Organization specific, e.g., process related-how to write work orders or requests for material, company diversity policy, etc.

In addition, the organizations may provide remedial enhancement educational courses to improve basic reading and math capabilities. This could be done economically through local community colleges.

It’s also a good practice to track employee training records by establishing a training database. This database should include:

• Training required with due date

• Training completed by date with hours credited

• Any mandatory, regulatory, or qualification training required, e.g., waste water operators, welding, or special equipment operations or maintenance

• Skill assessment information

• Certifications achieved, etc.

Training Resources and Benchmark

How much money should we spend on training; how much is good enough? Many organizations face this dilemma. Some managers believe that money spent on training has a very low or poor return on investment.

In reality, this is not so because benefits and results cannot be realized in the short term. Training metrics are lagging indicators and it takes a while to see the results. FIG. 2 lists typical benchmark data, based on reviewing several benchmark studies and my personal discussion with many M&R and Training Managers.

FIG. 2 Training Benchmarks

In a recent survey of 984 North American manufacturing plants, the Manufacturing Performance Group (MPI) found:

Training Levels (more than 40 hours/year/person)

United States 18% Canada 17% Mexico 29%

Only 18% of manufacturers in the United States spend more than 40 hours per person annually on training, compared to 29% of Mexican manufacturers.

Certification and Qualification

Earlier in this section we discussed investing in our people to educate and train them. Organizations want their people to have a good under standing and appropriate skills in the M&R field in order to help them to become more efficient and effective. How do we know that they, the employees, have the required knowledge? How do we assess that knowledge? Did they comprehend the proper use of M&R tools and best practices during training sessions? Certification is a means to assess the required knowledge or set of skills in a specific field.

Why do organizations need to get their people certified? What value does a certification provide? These are the questions raised by many organizations. One answer is "Can we afford not to get certified?"

According to the U.S. Department of Labor, Bureau of Labor Statistics Outlook Handbook 2008/9 edition, "Many employers regard certifications as the industry standard." Certification measures and evaluates an employee's understanding of a body of knowledge in a specific area with a standard knowledge that has been established by an appropriate industrial or academic body. Most of the certifying organizations are either professional societies or educational institutions. Some of them have their certifying process com ply with and approved by the American National Standard Institute (ANSI) and International Standards Organizations (ISO).

Certifications in the M&R area such as CMRP (Certified Maintenance & Reliability Professional) or CMRT (Certified Maintenance & Reliability Technician) by SMRP (www.smrp.org), CVA-Certified Vibration Analyst by Vibration Institute (www.vibinst.org), or MLA (Machinery Lubrication Analyst) by ICML (www.lubcouncil.org) indicate that a successful applicant has the following attributes:

• Demonstrated knowledge in specific M&R field-concept and implementation

• Equipped with the skills to perform effectively in a specific area

Employers of certified employees should be confident that they have individuals who have proven themselves, possess the skill sets necessary for success, and have met a specific certification standard. The same can be said of new certified employees being hired.

Certifications can be grouped into four major classifications:

1. Asset/System Level

2. M&R Technologies

3. M&R Professionals/Managers

4. Plant/Facility Level

Asset/System Level

Assets and systems are getting much more complex. Many organizations have started to qualify operators and maintainers for critical and complex assets. Organizations need to assure that people who are going to operate and maintain have the appropriate skills. Operators and maintainers are required to go through a training curriculum specifically design to educate key aspects of that asset and then test to ensure that they have comprehended the knowledge. Usually this type of certification or qualification requirements are developed and administered within the organizations. In some cases where public assets are involved-such as the operation of water treatment plants, boilers, etc.-such certification is provided by an outside agency.

M&R Technologies

Several technology and general maintenance-related certifications are available such as oil analysis, machinery vibration analysis, infrared (IR) thermography, ultrasonic testing, motor current testing, hydraulics, and pressure vessels. These certifications are valuable to both employees and organizations. They test knowledge in their respective area of maintenance technologies. Training for most of these certifications is provided by the key suppliers of these technologies or related professional societies, who also administer the test.

M&R Professionals/Managers

In this category, maintenance and reliability engineers, capital project engineers, designers, managers, and other professionals working in the M&R field are tested for their broad knowledge of M&R. Two key certifications are available in this category. One is Certified Plant Engineer (CPE)/Certified Maintenance Manager (CMM) offered by the Association of Facility Engineers (AFE). The other is Certified Maintenance and Reliability Professional (CMRP) conducted by the Society of Maintenance and Reliability Professionals Certifying Organization (SMRPCO). AFE and some industrial training companies provide the necessary training for the test.

The CMRP certification process is accredited. According to requirements, SMRPCO is prohibited from providing any specific training. They want to keep the certification-testing process away from trainers.

However, SMRPCO has a study guide that identifies M&R body of knowledge, available in hard copy format from SMRP headquarters. This guide can be downloaded from their website www.smrp.org/certification free of cost.

CMRP certification was initiated in 2000 and is now recognized as the standard of M&R certification by many organizations worldwide. The certification process evaluates an individual's skills in the five pillars of knowledge defined by SMRP: Business and Management, Manufacturing/Operations Processes Reliability, Equipment Reliability, Organization & Leadership (People Skills), and Work Management. Many organizations have now started using the CMRP certification to assess their employees' knowledge and then to develop appropriate training programs that help their employees improve their skills.

Another certification available for reliability engineers, called Certified Reliability Engineers (CRE), is conducted by the American Society for Quality (ASQ). deals with the quantitative and analytical skills employed by reliability engineers to manage reliability and risk.

This certification is more technically inclined towards the product reliability professional.

Plant/Facility Level

There are no plant certifications available. However, two organizations recognize best plants/facilities. One is the North American Maintenance Excellence (NAME) Award given to a plant based on NAME-established criteria. The other is the "Best Plant" award conducted by the publishers of Industry Week. This award is not specific to M&R, but recognizes overall aspects of manufacturing plant operations, e.g., quality, productivity, meeting customer needs on a timely basis, and inventory levels.

7. Resource Management and Organization Structure

Developing people and managing them to be productive is a key factor in operating a successful business. The success of workforce management hinges on implementation of the following core, though interdependent goals.

a. Aligning the workforce with the business strategy

b. Attracting, developing, and retaining key talent

c. Managing diversity

d. Designing best organization structure for integration of M&R functions

e. Succession planning

f. Developing a leadership culture

g. Establishing and maintaining a learning environment

h. Creating a flexible work environment

Aligning the Workforce with the Business Strategy

Employees need to know why the organization is in business. Involve employees in creating or confirming the organization's mission.

Crystallize the organization's reason for being and the direction it plans to take into the future. People support what they help to create.

Having the right people in the organization has a huge influence on successfully executing the business strategy. Elevating workforce management to the level of a strategic function and aligning it with an organization's overall strategic direction can provide a focused approach to people development.

Attracting, Developing, and Retaining Key Talent

Individuals are still likely to shop around for better opportunities if they are not nurtured on the job. A well-defined process for developing people means enhancing career and succession planning programs to show employees that the organization is committed to their long-term success. It also means demonstrating a desire for strategic investment in career development programs. Five primary reasons why people leave or change jobs are listed below. A plan should be in place to minimize the impact of these factors.

1. I don't fit in here. This perspective is a corporate culture issue in most cases. Employees are also concerned with the organization's reputation, the physical conditions of comfort, convenience, safety, and the clarity of mission.

2. They wouldn't miss me. Even though managers do value employees, they don't tell them often enough. If people don't feel important, they're not motivated to stay. No one wants to be a commodity, easily replaced by someone off the street. They'll leave for a position where they're appreciated.

3. I don't get the support to get my job done. Most of the time, people really do want to do a good job. When they're frustrated by too many rules, red tape, or incompetent supervisors or co workers, employees look for other opportunities.

4. Lack of opportunity for advancement. People want to learn, to sharpen their skills, and to pick-up new knowledge and skills.

They want to improve their capacity to perform a wide variety of jobs. They desire better training opportunities and development.

If people can't find the growth opportunities within one organization, they'll seek another employer where they can grow.

5. Compensation is the last reason people leave. Employees want fair compensation, but the first four aspects must be strong. If they're not, but compensation is high, you'll hear people say " you can't pay me enough to stay here."

Many organizations are either trying to lure valued retirees back to work or entice older workers to stay on the job longer. However, an organization needs to capture the knowledge that retiring baby boomers threat en to take with them. Mentoring is an effective way of transferring that knowledge. Assign young employees with experienced baby boomers and let them mentor and transfer their knowledge.

Today's workforce also likes to have stretch goals. It may require abandoning some old ways of doing things to optimize employees' options, and thus maximize chances of retaining nurtured talent. We need to make job opportunities visible across the organization, as well as invest in retraining and re-assignment of responsibilities. Of course, the right compensation plan is as crucial as career advancement opportunities for all high-performing employees.

Managing Diversity

Over 80% of new entrants into the workforce today are women and minorities. This changing workforce is one of the major challenges facing businesses. Organizations that recognize the need to fully develop all members of the workforce demographic are forced to manage diversity.

Definitions of "diversity" range from narrow to very broad. Narrow definitions tend to reflect Equal Employment Opportunity law, and define diversity in terms of race, gender, ethnicity, age, national origin, religion, and disability. Broad definitions may include sexual orientation, values, personality characteristics, education, language, physical appearance, marital status, lifestyle, beliefs, and background characteristics.

In the near future the labor market will become more and more of a seller's market. The shrinking workforce and the shortage of skilled labor will force employers to compete to attract and retain all available employees, including previously under-represented groups. These demographic changes have led many organizations to begin changing their cultures in order to value and manage diversity better.

According to 2004 U.S. Bureau of the Census projections (comparing 2020 to 2000), the percentage of workers aged 20-44 will decline from 36.9% to 32.3%; the number of workers aged 45-64 will increase from 22.1% to 24.9%; and the number of workers aged 65-84 will increase from 10.9% to 14.1%. Such gray-haired demographics aren't limited to the United States either. The number of workers aged 20-44 will decrease and workers aged 45-84 will increase in other countries such as the United Kingdom, Germany, Japan, and China.

Many boomers say they plan to balance work and leisure in retirement. They don't plan to stop working at age 65, instead opting for a "working retirement." The reasons are both financial and personal.

Several studies have found that many corporate policies hinder efforts to adapt to the aging workforce. Still, most organizations say they hire for ability and willingness to work. A few employers say they're "hiring wisdom" when hiring older workers. Gray-haired workers are viewed as reliable, settled, compassionate, and honest. Some organizations have set up a Casual Worker Program that allows them to hire or reemploy workers who would receive limited benefits and no pension.

Designing Best Organization Structure for Integration of M&R Functions

Throughout the industry, organizations are being flattened, intermediate layers of management are being removed, and the overall size of M&R departments are being reduced. This is the reality of today's competitive nature of the business.

In this environment, how organizations are structured to provide key M&R functions is important for effective use of its people. There are three types of organization structures which could be used to set up an M&R organization:

• Centralized

• De-centralized

• Hybrid

Any time we start discussing organization structure and skills, the first question that arises is which type of organization structure would be more beneficial: a centralized or decentralized structure (see FIG. 3).

Typically, a centralized organization structure is characterized by greater specialization and standardization. The decentralized structure provides stronger ownership and responsiveness.

Many experts have advocated shifting from one structure to another, centralized to decentralized, and vice versa. The primary reason for this recommendation is not that one type is necessarily better than the other, but to bring about change. Shaking things up is necessary to break old, traditional practices. A hybrid structure, containing the best characteristics of both, centralized and decentralized, is often the optimal solution.

In a hybrid organization, an individual production unit or area may have their own maintenance technician assigned to take care of area breakdowns and minor repairs. Operators become valuable resources as troubleshooting experts, or as system turnover or return-to-service technicians. In some cases, they provide extra hands in the repair process. The large PMs, major repairs, and specialized technical tasks such as PdM/ and critical alignments are performed by the centralized specialized staff.

In designing the organization structure, it’s important to address the following M&R functions:

• PM program development

• Execution of PM and CM tasks

• Planning and scheduling

• Material-spares including tools availability

• CBM/PdM and specialized skills, e.g., laser alignment

• Failure elimination and reliability planning

• Designing for reliability

• Resource management and budgeting

• Workforce development

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Centralized Decentralized

Advantages Disadvantages

Standardized practices Less responsive to individual units / department Strong ownership Difficult to build specialized skills Enterprise focus - objective s aligned with organization Lack of ownership Very responsive to individual area Difficult to prioritize by facility/department Efficient use of resources Sub -optimum use of tools Easy to build specialized skills

FIG. 3 Centralized and Decentralized Organizations Comparison

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One example of an M&R organization structure is shown in FIG. 4.

Outsourcing Maintenance

We’re under constantly increasing pressure to reduce our labor cost.

If there are some constraints put on the number of employees we can have, under those circumstances we can evaluate outsourcing or shared services for some specific skills in order to obtain a cost-effective solution.

Large variations in workload may lead to poor utilization of resources and overstaffing. Outsourcing some of the maintenance activities is a good practice. During scheduled shutdowns and major outages, it may be economical to contract work outside the organization. It can be very cost effective not only to contract the resources for executing the work but also to have this group plan and schedule major outages. However, periodic shutdowns- For example, a critical rotating machine-can be managed better by our own shutdown planners.

Augmenting maintenance staff with engineering students (Intern and Co-op) during summer is another cost effective good practice to follow.

Some of the maintenance and reliability data collection, analysis, and CBM-related work can easily be accomplished by these interns. Some university groups, such as the University of Tennessee's Reliability and Maintenance Center (RMC), equip their interns with appropriate maintenance and reliability basics before they intern or co-op. Each student intern is required to attend one week of so called "R&M boot camp." This boot camp is taught by the University staff as well as industry subject matter experts. The author had the privilege to teach this group for several years. One other benefit of these individuals is that after gaining experience with your organization, they can be valuable full-time employees upon graduation.

FIG. 4 Typical M&R Organization Structure

Some organizations have established a small reliability and maintenance staff core group at the corporate level. They are subject matter expert internal consultants who can help standardize and implement reliability-related policies and procedures and best practices corporate-wide.

However, this group needs to be very careful and diplomatic when dealing with small organizations. They should create a good relationship in working with them to help implement some of the best practices without acting simply like an enforcer of corporate policies.

Succession Planning

Succession planning is another key element of the workforce development process. It’s the process of identifying and preparing suitable employees-through mentoring, training, and job rotation-to replace key players in the organization. It involves having management periodically review their key personnel and those in the next lower level to deter mine several backups for key positions. This is important because it often takes years of grooming to develop effective managers and leaders.

A careful and considered action plan ensures the least possible disruption to the person's responsibilities and to the organization's effectiveness if a key player suddenly becomes unavailable to perform his or her role. Some sudden actions that may take place include:

• Sudden or unexpected inability or unwillingness to continue their role within the organization

• Acceptance of a position from another organization or external opportunity which will terminate or lessen their value to the cur rent organization

• Conclusion of a contract or time-limited project

• Move to another position and different set of responsibilities within the organization

• Plans to retire

• Serious illness or sudden death

The goal of succession planning is to continuously identify and develop high-performing leaders capable of meeting the future needs of the organization. Goals should include a formal identification process sup ported by leadership development that builds leadership capacity within the organization. Many organizations now use succession planning to address the succession of workers at many different levels as they leave the workforce. A workforce-planning strategy should include ongoing workforce training and leadership development to meet the looming challenge of an aging workforce.

Samuel Greengard, a noted management author, has pointed out several key steps for successful succession planning in "Five Keys to Successful Succession Planning":

1. Identify key leadership criteria.

2. Find future leaders and motivate them.

3. Create a sense of responsibility within the organization.

4. Align succession planning with the corporate culture.

5. Measure results and reinforce desired behavior so that employees are prepared and trained for the jobs of tomorrow.

Succession planning ensures that there are highly qualified people in all positions, not just today, but tomorrow, next year, and five years from now. Succession planning establishes a process that recruits employees, develops their skills and abilities, and prepares them for advancement, all while retaining them to guarantee a return on the organization's training investment. Succession planning involves the following steps:

• Determine critical positions.

• Identify current and future competencies for positions.

• Create assessment and selection tools.

• Identify gaps in current employee and candidate competency levels.

• Develop individual development plans for employees.

• Develop and implement coaching and mentoring programs.

• Assist with leadership transition and development.

• Develop an evaluation plan for succession management.

Developing a Leadership Culture

Managers and supervisors should be encouraged to become leaders.

Directive, autocratic management styles will soon become a thing of the past. The leaders of tomorrow will need to be facilitative. Establishing agreed-upon results with individual performers, the management role will provide needed resources, support, and coaching. Part of the leader's role will be to help people reach their full potential, and then raise the bar to keep them growing.

Leaders inspire rather than direct. They coach, encourage, and guide.

Effective leaders earn agreement with their people about what has to be done. They determine-with their team members-what resources are needed to get the job done. They arrange those resources and then get out of the way so their people can perform.

Leaders appreciate and recognize their people. People are hungry for appreciation. Thanking people every day, being sincere and specific, seeking creative ways to show care and appreciation are some valuable components of good leadership styles.

Leaders also endeavor to educate and train all managers to coach their team members on an ongoing basis. They focus on helping each worker learn how to improve performance. Continuous improvement is much more effective than annual appraisal alone. Supervisors/ managers need to learn new coaching techniques to deal with the new diversified workforce.

Establishing and Maintaining Learning Environment

As mentioned in the previous section, an environment conducive to learning is maintained by being supportive to personal and professional growth through education, training, and people development to help every employee become more competent and confident. Personal and corporate growth objectives are linked to build an environment that bonds people to the organization. When people can meet their personal needs through their employment, they'll be more likely to stay.

"If you think training/education is expensive; try to count the cost of ignorance." Anonymous

Creating a Flexible Work Environment

Rigidity in the employment environment is waning. On the contrary, there is a trend toward more flexible work hours. Work policies that allow working from home are being demanded. The organization's policies need to be reviewed and changes made if necessary to meet the needs of this new work environment.

The move away from formality at work can also be seen in dress attire. It started with "casual Fridays" and has now moved to the acceptance of "corporate casual dress" every day. Relationships have also become more informal. Research shows that the informality removes status barriers and improves measurable productivity. This change to informality does not come without consequences. Policies and procedures must be changed to allow this informality, but with guidance to protect personnel from harassment and inappropriate behavior toward and between employees.

8 Measures of Performance

The processes involved in workforce management, like other processes, need to be measured and evaluated to make improvements. A few examples of performance measures and benchmark data include:

1. Percent of training budget ($ and man-hours per employee).

This measure is related to how much we are budgeting for people development. The benchmark is about 5%.

2. Number (or %) of certified professionals as of total work force. This measure is related to skill sets of M&R workforce, including technicians.

3. Number of papers being presented or published at maintenance and reliability-related conferences. This measure is related to people development and benchmarking and sharing information with industry peers.

4. Number of people among M&R staff supporting/involved with industry-sponsored standardization teams or profession al society's teams. This measure is related to benchmarking and sharing information with industry peers

9 Summary

Big changes are happening in today's workforce. These changes have nothing to do with downsizing, global competition, or stress; they result from a distinct generation gap. Young people entering the workforce each bring a more diversified background and have much different attitudes about work. They want a life-work balance. They want to be led, not man aged-and certainly not micro-managed. The new mode is flexibility and informality. A large proportion of managers of the veteran era have been trained in relatively autocratic and directive methods that don't sit well with today's employees.

There's a very serious labor shortage right around the corner.

According to data from the Bureau of Labor Statistics, there will be more jobs than people to fill them. In addition, people entering the workforce, specifically in the M&R field, lack basic skill sets as well as reading and math capabilities. Additionally, there is a need to have people development programs in every organization to ensure a supply of skilled and talented workers.

The labor shortage will intensify. Finding qualified employees will be difficult. Workers will move easily from job to job in a flow we used to call "job hopping." The continual shifting will be commonplace.

Organizations will be caught unaware until they suddenly lose their best people. It’s important to be prepared and have your program in place to retain them if possible, or to have back-up workers trained and ready to take new responsibility.

Organizations don't have to wait until they have an opening to recruit qualified applicants. They should have a list of screened potential employees, ready to call when we have the right opportunity for them.

Internships, co-operative programs, and similar tools can be used to recruit and evaluate future employees. Succession planning for all positions and training of identified employees need to be developed. These steps will guarantee the availability of the right people when we need them. Succession planning is not just a simple replacement strategy. It involves forecasting workforce needs and developing ongoing strategies to meet those needs. Every person hired must meet minimum qualification standards. This practice sends a very clear message that we won't allow anyone who may drag us down. By adhering to this rule, organizations reinforce the high performance of current employees.

The organizational structure needs to be examined critically. Is the organization structured in an optimal way for smooth operation? Does it support productivity, accountability, and profitability? If not, changes have to be instituted to concentrate energies for results. People need to be cross-trained to enable them to work productively together across depart mental or functional lines.

Despite all these efforts to attract, train, retain, and minimize the loss of critical skills and talent, the fact remains that we are under increasing pressure to adopt a more flexible workforce model in order to turn fixed cost into variable cost. Shared services and outsourcing need to be evaluated to obtain a cost-effective solution. Let us not forget that today's workforce-which consists primarily of Baby Boomers, Gen Xers, and Gen Yers with diversified, ethnic backgrounds-requires different sets of benefits and management styles to retain them within the organization.

Finally, getting a workforce with the required knowledge and skill sets requires a long-term commitment. Aligning the workforce with over-all business strategy is just a starting point. Organizations need to develop systematic approaches in attracting, developing, and retaining key young talent, while at the same time minimizing the loss of those critical skills that older workers possess in abundance. Additionally, only by continually challenging the workforce can we build a more flexible workforce model. It’s people or, more aptly, the right people that make things hap pen.

10 QUIZ

__1 Who is Dr. W. Edwards Deming? What was his message?

__2 How are Dr. Deming's principles related to the workforce?

__3 Who were the quality gurus who revolutionized Japanese industry in the 1960s? What did they do?

__4 Explain the employee life cycle. What is its importance?

__5 What is the largest expense for an organization?

__6 What does "Generation Gap" mean? How does it impact an organization?

__7 What can we do to leverage different generations' employees to our advantage?

__8 Why is the communication process important to us?

__9 What happens in the communication process?

__10 How should we determine training needs?

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