Doug PowellBoard of Directors

National Switchgear, Inc.

Lewisville, Texas

PEARL Conference Grand Rapids, MI PEARL Conference Grand Rapids, MI PEARL Conference Grand Rapids, MI PEARL Conference Grand Rapids, MI

April 2019April 2019April 2019April 2019

The ROI of Craft Training and Education

ObjectivesA Business Analysis for Technician Skills Training and Process Documentation

1. Working “In vs. On” the business

2. The “Craft” of the circuit breaker remanufacturing industry today

3. What’s the difference between a craft and a skill?

4. Calculating the Return on Investment (ROI) of Technician Skills Training

and understand a cost/benefit analysis

5. What are the Qualitative returns

6. Process mapping and documentation, why your organization should

invest in it

7. How to ensure that your processes are followed flawlessly

Working In vs On Your Business

Working in your business achieves results for your

clients

Working IN your business

• Talking with customers

• Writing orders

• Bidding jobs

• Buying inventory

• Paying invoices

• Invoicing Customers

• Meeting with suppliers

• Hiring new employee

• Conducting performance reviews

• Reading contracts

• Fighting fires (dealing with crises)

Working on your business achieves results for yourself

and your clients

Working ON your business

• Education - podcasts, blogs, webinars, conferences

(about business)

• Training – Either receiving or teaching

• Creating systems (technical and non-technical)

• Planning for the future (business plans & strategies)

• Setting goals

• Measuring success

• Automating processes

• Creating Marketing copy

• Writing content blogs/articles/speaking

• Talking with mentors

What does it mean and what’s the difference?

The Craft of Electrical Remanufacturing

Definition: An occupation or trade requiring manual dexterity or artistic skill. (Webster)

A craft is an activity of performing a process, usually involving making something by hand, that is

reproducible. Other crafts include the carpentry craft, the craft of sewing, furniture and cabinet

making or wine making, etc…

The Craft of Electrical Remanufacturing

The craft of electrical remanufacturing is the activity of performing a comprehensive and rigorous industrial process by which a previously sold, used, worn or non-functional piece of electrical equipment is returned to a “like-new” or “better-than-new” condition, from both a quality and performance perspective, through a controlled, reproducible, and sustainable process.

Adapted from The American Reman Standard developed by Remanufacturing Industries Council

What Does The Word “Craft” mean to you?

Technician Skills

• Unique Personal Skills – A gift of mechanical aptitude

• Knowledge and Expertise – Knows all the time saving tricks and

understands all the processes

• Tools (have the right tools for the job)

What makes up efficiency and work quality in a circuit breaker technician?

What Makes A Good Technician

What distinguishes between a senior level technician and an apprentice?

Efficiency and quality are the real differences between an apprentice and

senior level technician.

How Long Does It Take Generally to Develop and Train a Senior Level Technician?

Return On Investment (ROI)A Business Analysis for Technician Skills Training and Process Documentation

Quantify your ROI – What are you trying to measureThe Cost

- Direct cost of Technician production downtime

- Direct cost of facilitator fees or salary cost

- Direct cost of all course materials, video equipment of conferencing time, specialized computer equipment

- In-direct cost such as loss productivity and sales during training session

- In-direct manager cost during training session

The Benefit – The gain received with faster ramp-up of technician efficiency and knowledge will produce increased

productivity sooner and therefore increased revenue.

Cost/Benefit AnalysisQuantitative Factors That Can Be Measured

CostIn House Direct and In-Direct Cost - Average class size of 8-10 Per hour/Per technician $6480 Hours Annually $5,120 320 hour over 4 years $20,480

BenefitShorting the average ramp-up from apprentice technician to senior level technician from 5 to 4 years.

Increased Billing Revenue $63,800 per technician

ROI = Profit/Cost = $43,320/$20,480 = 212% return

Qualitative Benefits Of TrainingBenefits to your Organization that are Difficult to Financially Model

• Improve Company Brand

• Reduced Employee Turnover

• Improved Employee Satisfaction – Reduced sick days, improved moral

• Improved Product Quality – Fewer warranties and quality errors

The Remanufacturing Process9 Step Process Mapping The Remanufacturing Of Air Circuit Breaker

The Plating ProcessTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

Sorting of Parts

• Yellow Zinc Plated Parts

- Large metal frame parts

- Smaller bracket & stamped parts

• Silver Plated Parts

- Copper current carrying parts

- Small auxiliary contact parts

- Secondary disconnect contacts

• Tin Plated Parts

- Arc chute steel plates

• Black Oxide (Moly Coated) Parts

- All hardened (heat treated) parts

- Springs – Polished if no rust. If rust bead blast & moly coated

Yellow Zinc PlateTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

Yellow zinc plate all large frame parts.Yellow zinc plate small bracket parts.

Silver PlateTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

Silver plate all copper current carrying parts.Silver plate small auxiliary contact parts

Tin PlateTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

1. Arc chute steel plates.

Springs – Harden, Polish OnlyTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

1. If no rust is present than we polish.

2. If there is contamination, than bead blast and black moly.

Black Oxide TreatTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

1. Black Oxide treat moving or hinged parts such as shafts, gears and large springs.

Moly TreatedTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

1. Moly treat harden parts.

Off To PlatingTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

Excessive BuildupTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

NOTE:

When this component (part of the moving contact

assembly) returned from the platers there was

excessive silver build up which would interfere

with the movement and potentially electrical

contact integrity of the part.

The part was first polished, which did not solve

the problem and finally removal of the silver was

the only viable option.

The part had to be returned for re-plating or a

quality replacement pulled from inventory and

the re-plating executed at a later date.

QA DocumentationTaken from NSG Remanufacturing Training Manual for LV Circuit Breakers, Type DS

Example of a QA traveler form that follows

the unit through it’s various processes.

1. Technician is required to initial the form when

a process is completed.

2. Certain hold points require both a technician

and QA inspector to initial before parts can

move to the next process.

Formalizing Your Remanufacturing Process

How Do You Ensure That Your Shop Remanufacturing Processes Are Followed Flawlessly?

1. Establish “Buy-In” at all levels to the process.

2. Process Training – Conduct a through process training with all technicians.

3. Need a Control Mechanism – Have qualified QA supervisors in your shop that are authorized to

perform and sign-off on QA documents at certain hold points within the process.

4. Debrief and perform RCA (root cause analysis) on all shop warranty’s claims or returns.

The Benefit of Having A Written Process is That It Can Be Repeated To Obtain Consistent Results

1

2

3

SUMMARYReal competitive advantages come from getting increased engagement from your people

Encourage Your Employees to work “On vs In” the business. Management and Owners will need to buy-in and be supportive of this investment.

Look at technician training and process development as an investment, like buying inventory, it has a long-term return.

Recognize that Circuit Breaker Remanufacturing is a craft and requires development of rigorous processes that are controlled, reproducible, and sustainable.

ANY QUESTIONS?