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January 2007
This Issue:
Labor Management Cooperation in Northeast Ohio... working with manufacturing companies that are organized by unions requires a unique set of skills.
Area business leaders to speak at spring conference... WINOC and WIRE-Net partner on spring conference...
What is your Value Proposition?... What is the best way to define Value and to evaluate Value for your organization?
WINOC at 25!... The more things change the more they stay the same!
Quality Counts 2007 Education Report.
Coming Events... see right panel.
Labor Management Cooperation in Northeast Ohio
Background: The unionized workforce in the twenty counties of NE Ohio plays a significant role in the state of Ohio’s economic development.
According to a November 12, 2006 Plain Dealer article, “even though union membership is stagnant nationally, it is on an upswing in Ohio. Membership grew nearly 6% in Ohio last year to 804,000. Nationally, union membership was up 1% to 15.7 million; but only 10% of the workers across the country belonged to unions.” The percent of all Ohio workers who belong to a labor union is 16%. Only Michigan and New York have higher rates.
Sixty percent of Ohio’s unionized workers are in the private sector, with over 1000 manufacturing sites in northeast Ohio being unionized.
Manufacturing Focus: Since businesses in northeast Ohio’s 20 counties want to stay competitive by effectively utilizing their human resources, there is a need for customized training and consulting to help them employ modern approaches to quality and productivity improvements. In manufacturing, there is interest in high growth job training initiatives especially in the advanced manufacturing area. Advanced manufacturing is defined as the “use of technology or other productivity enhancing business processes in the manufacturing enterprise and/or value-added supply chain.” To increase productivity and remain globally competitive, U.S. manufacturers are incorporating process improvement strategies, adopting quality management systems, and overhauling their production facilities with advanced technology. In order to operate a modern production facility, manufacturers require workers with advanced skills. [Continued below.]
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Area business leaders to speak at spring conference
WINOC and WIRE-Net are partnering to present "People Make the Difference... Lean Techniques from NE Ohio's Business Leaders" on March 7th at Indiana Wesleyan University Conference Center. Featured speakers will be
Ed Campbell, Chairman and CEO, Nordson Corporation
Terry Fedor, General Manager, Mittal Steel USA-Cleveland
Mark Granakis, President United Steelworkers Local 979
John W. Grabner, President, Cardinal Fastener & Specialty Co., Inc.
Jd Marhevko, VP of Operational Excellence, SPX Corporation
Roger Cramp, Plant Manager, U.S. Cotton, LLC
Also speaking at the conference will be Dr. Hira Fotedar (Chairman of WINOC), C. Tylet Haines (Vice President of Manufacturing Services for WIRE-Net), George (Rick) P. Bohan (Owner of Chagrin River Consulting), and James P. Gray (Principal of JPG Advisors, LLC).
Why Lean? Whether you’re a company leader contemplating the world of Lean or someone who implements Lean techniques on a daily basis, you will benefit from the candid conversation by some of NE Ohio's top manufacturing leaders as they share how they have embraced Lean strategies as a tool to create a high performance workplace. Since this day long conference will feature three learning tracks – Champion, Practitioner, and Student – you will also be able to interact and share your experience with students interested in manufacturing.
Leading Lean, Doing Lean, Learning Lean.
For more information click here or go to www.wire-net.org.
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What is your Value Proposition?
Defining Value is a difficult task and measuring it is even more difficult.
An economic definition of Value is that the Value of a product or service is equal to the cost to produce that product of service... V = C. That definition may have some merit for things such as commodities or equity valuation... 'the Value of my home just went up by $10,000 because that was the cost of the deck I just added on to my house'. But more often we perceive Value inversely with cost... 'I got a great price on my new TV!'
And to complicate matters even more, different stakeholders perceive value differently. A student doesn't perceive cost as much of a factor in the Value of his/her 'free' public education but a taxpayer certainly does!
For a product being sold to paying customers, the Value proposition might be V=FxQ/C. More functionality (F), higher quality (Q) and lower cost/price (C) equates to higher Value (V).
Or how about this definition for public sector government agencies... V=OxQ/C. This Value Proposition is based on delivering higher outcomes (O) with higher quality (Q) and at lower cost (C). "Students in my school system are receiving a high quality education (Q); student achievement/proficiency results are high (O); and, this education is being provided at a low cost to taxpayers (C)."
So again, what is your Value Proposition? [Continued below.]
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Events
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REGISTER SOON!
January 26th 2007
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February 26th 2006
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March 7th, 2007
People Make the Difference... Lean Techniques from NE Ohio Business Leaders
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March 22nd 2007
8:00 - 10:00 AM
Manufacturing Forum
Nordson Amherst Plant
Details to be posted at www.winoc.org/programs.html and notice will be sent to COMMUNICATOR Subscribers.
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For other programs and events of potential interest to WINOC COMMUNICATOR Subscribers, such as those sponsored by MAGNET or WINOC Partners, go to our Public Programs Calendar and/or to our Partner News and Events page.
For further information on Programs and Events contact us at Programs@winoc.org.
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Contact WINOC WINOC 445 West Liberty Street, Suite 225 Medina, Ohio 44256 Tel. 330.725.4885 Fax. 330.721.2933
Or email our staff at AdvServ@winoc.org Dee Holody for Sales and Marketing Bob Meyer for Labor Management and Programs Don Plante for Advisory Services and operations Mary Jo Lupica for financial matters |
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When 2006 ended, so ended WINOC's first twenty-five years of operations... and counting.
In 1981 the hostages were released when President Carter left office, President Reagan was shot, the Pope was shot, Sandra Day O'Connor was selected to the Supreme Court and Egyptian President Anwar el-Sadat was assassinated. In 2006 Sharon has a stroke, Samuel Alito is selected to the Supreme Court, Vice President Cheney shoots his friend, Iraq gets a government and Sadam Hussein is executed. The more things change the more they stay the same!
In 1981 northeast Ohio needed an organization that could help spread best practices in employee involvement and labor-management cooperation, companies needed TQM to help them stay competitive in a flattening world, economic development was a priority for northeast Ohio, and workforce development and training was seen as an urgent need. 2006? Ditto! Except substitute Lean for TQM.
WINOC was needed then... WINOC is needed today.
WINOC continues to provide important services to organizations in manufacturing, education and government. The typed pages have been replaced with PowerPoint presentations but the mission is unchanged. We help northeast Ohio organizations adopt best practices in quality management and employee involvement to achieve performance excellence and thereby stay competitive... Quality and Productivity through People!
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"Trust as Currency"... an article on www.hr.com authored by Ginger Jenks addresses the leadership trait of trust based on the definition of trust as what you do matches what you say. Here is an excerpt..
"Trust is the keystone to moving things forward. When it’s there, people don’t have to double check, document, or wait for completion to move past fear. When trust is absent or low, people verify, second guess, and cover their butts. In the process, things slow down, hostilities and fear rise, and people overreact. Paralysis can occur."
Read the complete article here.
"Turtle
Diagrams"... In an article for Quality Insider
posted at qualitydigest.com and entitled "Auditors, Turtle Diagrams
and Waste" author Mike Micklewright presents this view of a Turtle
Diagram.
To learn why ISO 9001 auditors might like to see Turtle Diagrams for your processes read the article here.
"Micromanagement"... according to dictionary.com micromanagement means managing or controlling with excessive attention to minor details. That definition stops short of explaining micromanagement as a management style.
An excellent exposition on the subject can be found at wikipedia.com..
"In business management, micromanagement is a management style where a manager closely observes or controls the work of their employees, generally used as a pejorative term. In contrast to giving general instructions on smaller tasks while supervising larger concerns, the micromanager monitors and assesses every step."
For more on the subject, including the positive aspects of micromanagement, go here.
"Quality Counts 2007"... Education Week at www.edweek.org has posted its 11th annual report tracking state-by-state efforts to improve education from childhood through adulthood... cradle to career. This year they have introduced a "Chance for Success" indicator. Where does Ohio stand? Check out the map below. [Read More]
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Labor Management Cooperation in Northeast Ohio [Continued]
The NeON Network: NeON is a group of northeast Ohio based non-profit service providers who are partially funded by the Ohio Department of Development (ODOD) Ohio Labor/Management Cooperation Program (OLMCP) and who specialize in working with unionized businesses, especially manufacturing companies.
This group from Canton, Elyria, Kent, Mansfield, Medina, and New Philadelphia areas covers most of the 20 county northeast Ohio area. They work in collaboration with local economic development agencies and colleges.
The group has been in existence since the late 1980’s and now is pulling its resources closer together as the Northeast Ohio Network for Labor-Management Cooperation – NeON; to provide higher value-added services to manufacturing clients as well as government and others.
The Need for Unique Service-Providers for Union Organized Companies: Working with manufacturing companies that are organized by unions requires some unique skills. After decades of mistrust and confrontations many large unions such as IAM, UAW and USW are now developing collaborative systems with companies that have true union leadership involvement in the design and administration of change processes.
The Northeast Ohio Network for Labor and Management Cooperation (NeON) has over 20 years experience helping local unionized companies be more competitive. Some of the “Lessons Learned” over these years include:
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External advisors (service providers) to unionized companies should have a reputation as being non-biased and neutral towards union certification or decertification (union-busting).
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Advisors should be hired with approval from not only management, but also union leadership. Pre-hiring interviews should be scheduled.
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Assessments done at companies to identify opportunities for improvement should include a team of company salaried and hourly employees recommended by management and union leadership.
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Feedback sessions to the company of assessment findings and recommended plans-of-action should include union leadership.
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Training planned for company employees should be tailored to the workforce. Examples used should be of other unionized sites as appropriate. References to Modern Operating Agreements (i.e. Ford, etc.) are useful.
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References to global approaches (such as Toyota, etc.) should be in a context of how the USA originally conceived many of these ideas and are now perfecting them through Lean Enterprises (i.e. Dr. James Womack, etc.)
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Change events such as “5-S sessions” and “Kaizen Events” should include salaried and unionized hourly workers most of the time. Care must be given to following overtime pay requirements.
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Implementation of recommendations should become part of Standard Operating Procedures that are required to be followed by all employees. Some changes in employee’s job descriptions and pay may be considered.
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Rewards (i.e. Gainsharing, profit-sharing, etc.) for improvements should be shared equitably and the methods to be followed should be included as part (i.e. an addendum) of Labor Contracts.
Future Activities: The Ohio Department of Development’s investment of a little over one million dollars is highly leveraged by ten regional non-profit groups; five of these have formed the NeON network. Working with local economic agencies, they are helping local organizations, especially unionized manufacturing sites, stay competitive.
For more information, contact Robert Meyer at BobMeyer@neoclmc.winoc.org or 330-725-4885.
For a brochure on NeON click here.
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What is your Value Proposition? [Continued]
Maybe we should begin by determining which factors figure into our Value Proposition. Here are some factors to consider:
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Quality as defined by customer satisfaction.
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Quality as defined by defect-free products and services.
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Quality as defined by cycle time or responsiveness to customers/stakeholders.
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Utility, e.g., how easy is it to use my product or service?
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Capacity, e.g., what is the capacity of the product (quarts, volts, etc.).
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Volume... how much product o service is being produced?
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Functionality; i.e., what does the product do (recognizing that too much functionality such as bells and whistles might diminish Value for some customers).
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Performance, e.g., how well does the product or service do what it does? [Not the same as quality; a Lexus and a Taurus can have the same quality.]
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Endurance... will it last, i.e., not wear out?
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Reliability... will it last, i.e., not fail?
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Safety... is it safe?
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Outcomes... what will be my outcomes from using your product or service?
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Need... how much need can be met by using your product or service?
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Cost... what does it cost to produce the product or service?
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Price... what does it cost to buy the product or service.
Hopefully only a small subset of these factors are applicable to your Value Proposition and your resultant Value Proposition is not too complex... but it is what it is.
Given our Value Proposition, can we calculate Value?
Assuming that things are linear (they are not) and assuming that we know whether or not to multiply, divide, add or subtract (and we have illustrated that is not always simple to determine), we are not likely to have the numbers (other than cost or price) that we need to plug into our Value Proposition equation.
We could use some metrics as proxies for Value. The number of students educated per dollar of funding might be a reasonable estimation of the value delivered by a school, for some. Turnaround time divided by cost might be a decent proxy for Value for H&R Block tax services.
If we cannot calculate Value we can certainly evaluate Value.
Summit MR/DD, a WINOC client, has defined their Service Value Model (Value Proposition) as meeting the needs of persons served with quality services delivered cost effectively.
V = N + Q + CE
This agency evaluates Value using the following matrix.
With this approach the agency can evaluate the Value Proposition for its services and/or departments on a zero to fifteen scale. Zero is an unneeded service (Need = 0) delivered to customers who are unhappy with the service (Q = 0) at a prohibitive cost (CE = 0). Fifteen is a completely met mandated need (N= 5) delivered with exceptional quality (Q= 5) at a cost superior to any other provider (CE = 5).
This agency understands its Value Proposition and has a method for measuring it.
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WINOC activities are partially subsidized through a grant from the Ohio Labor Management Cooperation Program (OLMCP) of the Ohio Department of Development (ODOD) to operate the Northeast Ohio Center for Labor Management Cooperation (NEOCLMC).
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