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“Creating a robust pipeline of workers to address the needs of U.S. manufacturers has become a national priority” according to a recently released report by ToolingU, a division of SME (formerly the Society of Manufacturing Engineers) titled, “Using Competency Models to Drive Competitiveness and Combat the Manufacturing Skills Gap.” The report discusses the results of a survey on the skills gap and current training, defines competency vs. competency models, explains different models, and explores best practices.

American’s manufacturers are increasingly challenged to find the skilled workers they need to fill good jobs. As more and more “Baby Boomers” retire, we need to address this issue if we want to keep the manufacturing engine going and growing to keep our economy strong.

Currently, 9 out of 10 manufacturers are having difficulty finding skilled workers and they say this is directly hurting the bottom line, according to a 2013 SME and Brandon Hall survey. In fact, the survey revealed:

• 64% of manufacturers say productivity losses are a result of a skills gap.
• 41% cited quality losses
• 56% report the gap in skilled labor has impacted their company’s ability to grow
• 78% cited a lack of qualified candidates as one of the top two factors that impacted
• their ability to hire a skilled workforce
• 78% cited a lack of qualified candidates as one of the top two factors that impacted
• their ability to hire a skilled workforce

There are four main reasons for the skills gap:

• Limited pipeline – Fewer people are pursuing Science, Technology, Engineering and Math (STEM) education and fewer youth are choosing manufacturing as a career.
• Retiring workforce – Baby Boomers are retiring and about 10,000 per day will turn 65 for the next 19 years.
• Changing pace of technology – Technical innovation is moving so quickly that it can be a challenge for workers who are unable to keep pace and are left behind.
• Reshoring – Returning manufacturing back to the U.S. creates a bigger demand for jobs.

In January 2014, President Barrack Obama signed a memorandum to initiate a review of all the federal training programs to “develop a specific action plan…to make the workforce and training system more job-driven, integrated, and effective.”

Additionally, recent government investments in the Manufacturing Innovation Centers, as well as a new $450 million round of the Trade Adjustment Assistance Community College and Career Training (TAACCCT) Grants Program demonstrates the commitment to solving these workplace issues.

The SME survey asked if the organization had a company-wide plan in place to address its skills gaps. The responses were:

• 54% “No, we do not have a company-wide plan in place for filling our skills gaps among skilled workers in critical roles at this time.
• 26% Yes, we have a company-wide plan for filling our skills gaps among skilled workers in critical roles through the next 12 months.
• 14% Yes, we have a company-wide plan filling our skills gaps among skilled workers in critical roles through the next 5 years

The survey asked if the company’s skilled workforce training programs are built on specified competencies defined in job roles ? 71% said yes, 23% said No, and 6% said they don’t know.

In answer to the question about the best description of your company’s current approach to defining “skilled worker” roles, the responses were:

• 40% We have written job roles, competencies, experiences, and education.
• 21% We have general written job roles only.
• 18% We have defined workforce roles in terms of written job roles, competencies (skills and behaviors), experiences, education, cognitive abilities, motivation factors and cultural fit.
• 10% We have competency based written job roles only.
• 9% We have not defined our “skilled worker” roles.
• 1% Don’t know.

In the last 20 years, the training process has become much more sophisticated. Training is no longer one size fits all. Organizations are looking at employees individually and building customized training programs specifically to fit their strengths and weaknesses.

Professional and technical certifications provide objective confirmation and assurance of skill achievement in various areas of technical expertise. Certification validates a level of expertise and provides employees with advancement opportunities that motivate them to continue learning.

Certification organizations, such as the National Institute of Metalworking Skills (NIMS), Manufacturing Skills Standards Council (MSSC), SME, and American Welding Society (AWS), require manufacturers to show that employees have applied and retained the knowledge and skills they received through training.

The report contrasts “competency” with a “Competency Model.” Competency is defined as the capability to apply a set of related knowledge, skills, and abilities (KSA) to successfully perform functions or tasks in a defined work setting. They serve as the basis for skill standards that specify the KSAs needed for success and measurement criteria for assessing competency attainment. A competency framework is used to design a plan specific to a particular manufacturing environment or organization or when there are no manufacturing certifications tied to desired job roles.

A competency model is defined as a collection of competencies that together define successful performance in a particular work setting. Competency models are the foundation for functions such as recruitment and hiring, training and development, and performance management. Competency models can be developed for specific jobs, job groups, organizations, occupations, or industries.

There are two main industry competency models for manufacturing in the marketplace:

Department of Labor (DOL) Advanced Manufacturing Competency Model – Created by the Employment and Training Administration (ETA) and other industry organizations, the Advanced Manufacturing Competency Model is a broad platform outlining critical work functions and topical areas. It includes crosscutting competencies applicable to various industry sectors.

Tooling U-SME Competency Framework or Manufacturing Excellence – Created by a cross-section of manufacturing experts and introduced in 2014, the tool features a comprehensive series of competency models in nine manufacturing functional areas and is made up of more than 60 job role competency models, each outlining knowledge and skill objectives for job roles in production, technician, lead technician/technologist and engineer levels. Designed to complement other competency models in the marketplace, the Competency Framework can be used “as is” or customized to individual work practices at a facility. The framework is mapped directly to Tooling U-SME’s extensive training resources and a specially designed system allows for seamless validation and record keeping.

Implementing an ISO quality management system to obtain certification or becoming a Lean enterprise requires a talent development program, which means training. Companies are finding that competency models provide the rigor needed to meet the ISO and Lean quality objectives, guidelines, and reporting requirements.

Competency models allow companies to combat the increasing talent shortage and achieve stronger performance from their workforce while providing clear development pathways and career growth opportunities for their employees.

Advantages for companies:

• Ensures enterprise-wide consistency making the workforce more flexible and dynamic.
• Streamlines the training process and cuts costs by eliminating unnecessary/redundant training to focus on true needs.
• Helps managers easily evaluate worker performance levels defined using specific behavioral indicators, which reduces subjective assessment and increases assessment accuracy.

Advantages for employees:

• Enhances employee satisfaction based on the rationality of the system.
• Defines and explains to each worker what they need to do to improve their skills.

The first step to get started is for human resources to work with production and operations managers to develop job descriptions that accurately define the qualifications needed by workers, including both knowledge and skills. This analysis provides the foundation for a program that meets a company’s objectives related to budget, consistency, measurability and results.

Good training requires both knowledge and skills that may not come from informal knowledge transfer or tribal learning. It requires understanding the concepts of what and why a job is done a certain way, and then requires on-the-job training to validate that the worker can fulfill the needs of that job.

The key is commitment from top management down to individual employees. It is important to communicate to all employees that the focus is on knowledge and skill requirements of the job and align training designed to help each person perform his or her job more efficiently, while providing new growth opportunities. An effective training program will include a validation process that not only tests a new skill but provides employees with the opportunity to gain new skills, apply them on the job, and then have their new skill sets validated through assessments, testing, and certifications.

A well-designed competency model can become the foundation for performance management, talent acquisition and leadership development for manufacturing companies. To combat the current and future talent gap and build a high performance team, it is critical for companies to have a system in place to codify knowledge and skills required for specific job roles aligned with the appropriate training.

 

This entry was posted on Monday, September 1st, 2014 at 12:22 pm and is filed under Education, Jobs, Manufacturing, Training. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.