Managing Automation - September 2008 - (Page 38)

SPECIAL REPORT HIGH ACHIEVER: EDUCATION & TRAINING MASTERY E.J. AJAX & SONS INC. In desperate need of skilled workers, a small manufacturer invests in education and training to develop its own. The result: a more competitive enterprise. BY L AUREN BROUSELL F or small manufacturers such as E.J. Ajax & Sons Inc., it’s a jungle out there. Not only does the $8 million maker of appliance hinges and other formed-metal products face increasingly stiff offshore competition, but also, like many other manufacturers, it has trouble finding the skilled employees it needs to E.J. Ajax & Sons Inc. Revenue/Employees: $10 million; 40 Location: Minneapolis Industry: Metal forming and stamping Project name: Training and Professional Development and Education Project leader: Erick Ajax Core technologies: Collaboration, lean initiatives ROI/Business benefit: Investment of 5.5% of annual payroll costs has improved competitiveness, safety, and value for customers. ERICK AJAX Vice President continuously fine-tune its operations. As all survivors must, however, the family-owned, 65-year-old company has learned to adapt by finding new ways to motivate and train its employees. For the past 10 years, E.J. Ajax has invested at least 5.5% of its annual payroll spending in formal training and other staff development programs. The company has developed an education and training program that includes an 8,000-hour apprentice program plus 100 hours per year of mandatory training and classes for all employees, as well as 10 hours of on-site safety training per year. Partnering with local colleges near Minneapolis, such as Minneapolis Community Technical College and Hennepin Technical College, E.J. Ajax pays tuition in full for its employees. In all, the company spends about $1,800 per year per employee on training and education. “Times are changing and we’re in the race of our lives to develop skilled talent. It’s a vexing problem of business survival,” says company Vice President Erick Ajax. E.J. Ajax’s investments in training and education have paid off. One hundred percent of employees have reached Level I metal-forming skills, 70% Level II, and 40% Level III as defined by the National Institute for Metalworking Skills. And the company’s well-trained, empowered employees have helped make the business more competitive. Employees have helped cut manufacturing cycle times by 35% since 1996. Quality is up, and scrap has been reduced by 25% since 1996. And finished goods inventory and work-in-process inventory have been lowered by 70% since 2000. Training has also helped the company go without a lost-time incident at the workplace for the past 17 years, an achievement that earned it an award from Occupational Hazards magazine as one of America’s top 10 safest companies in 2007. All of this earned E.J. Ajax & Sons Managing Automation’s 2008 Progressive Manufacturing High Achiever Award for Education and Training Mastery. Maureen Steinwall, president of Steinwall Inc., the winner of the 2006 Progressive Manufacturing Education and Training High Achiever award, and a judge in this year’s awards process, says the company invested wisely. “The strengths [of the program] were the quantity investment, which was strategic for the company. It was not an expense; it was an investment,” she says. The company’s training program offers classes ranging from safety training and personal development to communication and team building. The program’s greatest success, Ajax says, has come from the M-Powered project, a 12-week workforce development program exclusively for entry-level job inquirers and those looking for advancement. It includes industry-specific courses, career counseling, mentoring, and job placement assistance. Ajax says the results of the program have been worth the cost. “We really value it, and the ROI has been phenomenal. The millions of dollars we’ve invested have resulted in an increase in productivity and cost reductions,” he says. The spike in productivity totaled 10,000 parts per hour per employee in 2007, up from 4,000 parts in 1999. E.J. Ajax is still developing its training program as the demands and industry requirements evolve. Ajax knows that his employees are on board with him. “To improve, we are always on the lean journey and the pursuit of perfection and productivity. As new technology evolves, we take advantage and use the innovation of our employees,” he says. ma September 38 2008

Table of Contents Feed for the Digital Edition of Managing Automation - September 2008

Managing Automation - September 2008 Contents Take 1 Letters Tech Vendors Defy Economic Slump by Plugging into Developing World Growth New E2open Chief Outlines Plan to Accelerate Growth Is This Marketing as It Used to Be or Something New? The OMAC Group Attempts to Widen Its Influence Automation Federation Names Chief, Plots Growth Notes Cover story: The Innovation Gap Special Report: Meet the Progressive Manufacturing High Achievers Progressive Manufacturer of the Year Business Model Mastery Innovation Mastery Customer Mastery Supply Network Mastery Data & Integration Mastery Education & Training Mastery Leadership Mastery Operational Excellence Mastery Special Report: Catching the Wireless Wave Part 1: No Clear Infrastructure Winner Part 2: Wireless Apps Take Wing Part 3: The Human Side of Wireless Product Scan Advertiser Index Next

Managing Automation - September 2008

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