Greater Cincinnati-Northern Kentucky SMRP Chapter Meeting

1. Greater Cincinnati-Northern Kentucky SMRP Chapter Meeting July 19, 2013

2. Agenda • Safety-(Gateway CC) • Introductions • Chapter Status • SMRP information update • Main Topic- Technical Skills Development • Election of officers • Next Steps • Topics • Meeting time • Locations • New Member Information Gateway Community College

3. Safety • Evacuation • Tour Safety Information

4. Introductions • Name • Company • Job/Title • What do you want from a SMRP Chapter?

5. Chapter Status • Plan initial interest meeting and establish interest from 20 M&R professionals • Create a Steering Committee • Submit request to form to the SMRP Board • Petition to SMRP approved • Required 20 signatures • Approved Bi-Laws • PO Box (Union KY) • Tax Exempt status (filed, May23) • Budget, Bank Account (Follows Tax filing) • Officers, Board of Directors (TBD) • “Official” Opening Meeting with SMRP home office attending

6. SMRP Updates • Standardized Metrics out next month • Board Member nominations in progress • Membership Dues • Website Updated • CMRP of the Year Awards • On-demand education from the Annual Conference • Online CMRP registration • New Chapters and SIGs • Hand Outs • Conference, Indianapolis

7.    
Greetings fellow SMRP members! I’m happy to announce that starting next month, the SMRP standardized metrics will be available to you online as a benefit of membership.  This valuable data includes guidelines and definitions for work management, asset reliability and materials management– and includes the latest target values.  Developed by the Best Practices Committee based on extensive literature research and their years of experience, the metrics provide a consistent benchmark to measure your key performance indicators (KPIs).  With standardized metrics, the data is more trustworthy, making it easier for you to identify areas of substandard performance and opportunities for improvement.  The metrics are quickly gaining worldwide acceptance and adoption by SMRP member organizations.   Previously, the online metrics were available to purchase as a stand-alone product.  The Board of Directors decided recently that this valuable data should be more accessible by M&R professionals like you who have made the investment in SMRP.  It’s part of our ongoing goal to add value to your membership, as well as grow the recognition and overall utilization of the metrics throughout the M&R industry worldwide.   Look for an email notice from SMRP Headquarters within the next week or so! 
Other News For the first time in more than a decade, SMRP is increasing its membership dues, which will be reflected on your next renewal invoice. This was a decision the Board deliberated carefully because we understand the tough economic conditions many of us are still facing, while also recognizing that the costs of doing business for the Society continue to grow each year.  This year, SMRP is rolling out a number of new initiatives for you, including a redesigned website, the new CMRP of the Year Award, member access to the online metrics, on-demand education from the Annual Conference, online CMRP registration, several new local Chapters and SIGs, and a new public relations program designed to raise awareness of SMRP and the M&R industry among technical students, as well as C-level decision makers.  Your ongoing support and investment in SMRP makes all of these valuable programs and services possible. 

9. Technical Skills Development • Sharing, current state by company • You don’t know what you don’t know • Bob Williamson Information

10. Officer Nominations • Chair- Bill Schlegel • Vise Chair- Andy Inman • Secretary- Donald Nice • Treasurer- Jeff Stegemiller • Other nomination?

11. Next Steps • Topics • Plant exchanges/tours • Educational • Mini Conference • Meeting times (Calendar of Events) • Locations • Communications • Money Matters • Dues? • Seed money from SMRP Headquarters

12. New Member Information • SMRP Brochures • Member sign up brochures • SMRP/Chapters Presentation • Solutions magazine

13. Spread the Word!

14. SMRP / Chapter Presentation • file://localhost/Users/billschlegel/Documents/Bill's Docs/Reliability/SMRP/Presentation for Initial Interest Meeting KCO May 2012.ppt

15. Starting a Chapter

16. Potential New Companies • Duke • Cinci Airport • P&G • J. Lee (UC) • G.E. • Greater Cinci Water Works • College Power Plants (UC, …) • Ford Transmission Plant (Sharonville) • Mubea • Mazak • Sun Chemical • XTEK • Stober Gearbox • Boston Beer • MSD (Metro Sewer District) • NAS • AK Steel • Kentucky Utilities

17. Future Topics • BOK Project • Root Cause Failure Analysis • PdM • Precision Maintenance • Reliability Engineering • Skills Training (Gateway CC) • Plant Tours • Best Practices • Change Management • Metrics and KPI’s • CMMS

18. The Industrial Maintenance Skills Shortage Is Real… And It’s going to get worse before it gets worse! Insights from Robert Williamson, Strategic Work Systems, Inc. And Author of Maintenance Technology Magazine’s monthly Uptime column Permission is granted to SMRP and their chapters to distribute this document in its entirety by its author Robert Williamson, 9 July 2013

19. Preface I’ve been studying and experiencing the “skills gaps” and “skills deficits” and “skills shortages” as well as the precipitous decline of vocational-technical education and training in the U.S. for decades. And, I’ve seen the results of an un-trained semi-skilled workforce operating and maintaining sophisticated (not necessarily “high-tech”) equipment and facilities, as have many of our Maintenance Technology readers. The aging workforce has not slowed at all. In fact the workforce is aging-out faster as a product of the “Baby Boom” generational demographics. My take: The skills gap crisis is REAL – especially in highly-skilled maintenance and reliability job roles. Of the many articles I’ve written on the subject and the some 450 plants, mines and facilities with whom I have taught and consulted, here are a few issues we should be concerned about… Robert M. Williamson (Bob) Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

20. Business depends on reliable equipment… whether they know it or not Reliable facilities and equipment are the next frontier of global economic competitiveness and many businesses are unaware of their own reliability gaps. Manufacturing plants, petro-chemical processes, utilities, warehousing/ distribution, transportation, commercial and institutional buildings all depend on reliable facilities and equipment to generate revenue in a safe and environmentally sound manner. The more efficient and effective these physical assets perform the greater and more sustainable the financial returns. Pay attention to the soon to be issued: ISO-55000 Asset Management Standard (The next generation of PAS-55:2008). Investors, insurers and regulators are watching! Reliability is an equipment condition NOT a program or activity. It is a result of good life-cycle asset management Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

21. Six points to ponder… 1. The gross shortage of public school industrial and shop teachers and classes have led to two generations of young people not being exposed to the basic tools of a trade or working with their hands… or careers in manufacturing & maintenance. 2. Traditional apprenticeship training, popular in the 20th century, is largely an obsolete training format for today’s industrial maintenance skills development. Traditional apprenticeship training results in more of an art form than a scientific or analytical approach to the job where “standardized work” drives out variation. 3. Automation technologies in today’s equipment-intensive industries have developed faster than have the skills and knowledge to properly maintain it. 4. These first three problems have led to the decline of industrial maintenance job entrants for the past two generations. “Industry is downsizing & off-shoring…” 5. The decline of job entrants was accelerated by “academic educators” in general when they assume that there is no future in careers in industrial maintenance and that a “college degree” is far more valuable. Which, in fact led to … 6. The decimation of high-cost, high-risk shop classes in public schools to only 2% of what we had in 1970. (see #1 above) Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

22. Go to college, get a degree to succeed… • Unfortunately, there is entirely too much emphasis on a “college education” in America. Not everyone “needs” a college education to be highly successful. (most academics do NOT consider tech school “college.”) • About half of the high school graduates won’t go on to college. • Many (about half) who go to college will not finish a degree. • Couple that with about a 30-percent high school dropout rate and we are fooling ourselves into believing that the pathway to success is a college education. Consider this: A skilled trade or craft person can earn anywhere from $50,000 to $85,000 per year in a rewarding career without the huge expense, or the debt, of a college education. The total cost of a four year “college education” is in the neighborhood of $100,000 to over $500,000 plus personal expenses and transportation costs. And, there is NO guarantee of a “high-paying job” after four years of college. Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

23. Go to college, get a degree to succeed… • Maintenance – Missing in Action • In the past two years there has been a renewed emphasis (yes, again) on careers in manufacturing: • The US Government Department of Labor, Department of Education, and the White House is promoting “Manufacturing Skills Certification System,” “advanced manufacturing skills” and “Skills for America’s Future.” • These Skills Certifications, advanced manufacturing skills, and “Green” skills for America’s future will not address the largest need of our economic well being. • Sadly, awareness and skills building for careers in industrial maintenance and repair has been missing in action in many middle-school and high-school programs. • This gap in my opinion is a serious mistake based on misconceptions about what careers “industrial maintenance” truly represents. Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

24. Reliability is more about people than machines “Maintenance” alone cannot sustainably improve equipment and process reliability. “Maintenance” as practiced in most equipment-intensive businesses is at best capable of addressing five to ten-percent of the causes of unreliability. Most of the remaining 90 to 95-percent causes of unreliability reside in production operations, procurement, and in design engineering. Life cycle decision making and engagement of ALL stakeholders is the key to reliability… and a culture change! Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

25. Maintenance & reliability represents the most critical skills gap crisis and that’s largely unknown to people outside our profession. There are not many alternatives to improving performance and reliability in this era of a shrinking skilled workforce pool and technologies that are outpacing our abilities to keep up. The worries of a skills gap should be as real as the equipment in your plant, the transport trucking fleets on the road, the power generation and distribution system, and the heavy equipment that builds roads and mines ore. Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

26. Maintenance & reliability represents the most critical skills gap crisis and that’s largely unknown to people outside our profession. What many “researchers” often fail to understand is the significant impact ONE highly skilled maintenance person has on productivity, on revenue generation, when those skill sets are NOT available to perform that critical PM properly, or to troubleshoot the problem completely, or make the repairs properly. Only ONE person with the critical skills and knowledge missing in the work place can bring an entire operation to a screeching halt or keep it from performing as intended. This is our world… the frequently misunderstood world of maintenance and reliability. Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

27. Maintenance & reliability represents the most critical skills gap crisis and that’s largely unknown to people outside our profession. Small is BIG: Take a look at something other than LARGE manufacturers. Our Federal government defines small to medium sized (non-farm) enterprises as employing less than 500 people with $7 million to $25 million in annual revenues.(2) The National Association of Manufacturers (NAM) and the Manufacturing Institute defines small manufacturers as having 500 or fewer employees and medium manufacturers as having 2,500 or fewer employees. Here’s the most important fact to remember when talking about manufacturing jobs: The Manufacturing Institute reports that ninety-four-percent (94%) of all U.S. manufacturers employ less than 100 people. In other words 94% of all U.S. manufacturers are considered SMALL businesses.(3) Some 296,000 small to medium manufacturers (SMM) generate 40-percent of the total value of U.S. production (4)with more than 65-percent of the total U.S. manufacturing workforce. (5) Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

28. Maintenance & reliability represents the most critical skills gap crisis and that’s largely unknown to people outside our profession. Our skills gap crisis is real. “Manufacturing workers” include those who work in management, staff, administration, front-line leadership, engineering techs, production operators, maintenance, and others. Typically, small to medium sized manufacturer have approximately five-percent (5%) or less of their total workforce employed as “highly skilled” maintenance and technical workers. That means that on average 94-percent of our nation’s manufacturers have a total of five (5) highly-skilled maintenance workers at the most. And, according to BLS data average age of these “highly skilled” manufacturing workers is 56 years old. References: 1. October 15, 2012 Skills Gap in U.S. Manufacturing, Boston Consulting Group 2. Bureau of Labor Statistics 3. Manufacturing Institute 4. Manufacturing Institute, National Association of Manufacturers 5. Bureau of Labor Statistics, Dec. 2012 6. Manufacturing Institute, National Association of Manufacturers 7. Bureau of Labor Statistics Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

29. It’s MORE than “Maintenance”… It’s Our Nation’s Future! U.S. manufacturers are likely to become even more capital and skill intensive, leading to further productivity gains. Federal Reserve Bank of Cleveland “U.S. Manufacturing and the Economic Outlook” The continuing emphasis on manufacturing being “capital and skill intensive” should send a powerful message about the critical importance of careers in industrial maintenance and reliability. But there’s more. Every business and industrial sector in America that has equipment and facilities needs maintenance! Here’s a list of 60 “physical asset and skill intensive” industries in America that offer opportunities for careers in “installation, maintenance and repair.” (next page)  Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

30. Physical asset and skill intensive industries in America that offer opportunities for careers in installation, maintenance and repair… • Goods Producing Industries: • Manufacturing: (21 industries) • Food Manufacturing • Beverage and Tobacco Product Manufacturing • Textile Mills • Textile Product Mills • Apparel Manufacturing • Leather and Allied Product Manufacturing • Wood Product Manufacturing • Paper Manufacturing • Printing and Related Support Activities • Petroleum and Coal Products Manufacturing • Chemical Manufacturing • Plastics and Rubber Products Manufacturing • Nonmetallic Mineral Product Manufacturing • Primary Metals Manufacturing • Fabricated Metal Product Manufacturing • Machinery Manufacturing • Computer and Electronic Product Manufacturing • Electrical Equipment, Appliance, and Component Manufacturing • Transportation Equipment Manufacturing; Motor Vehicles & Parts • Furniture and Related Product Manufacturing • Miscellaneous Manufacturing • Mining, Quarrying, and Oil and Gas Extraction: • Oil & Gas Extraction • Mining • Support Activities • Construction: (3 industries) • Construction of Buildings, Residential & Non-Residential (includes maintenance & repair) • Heavy Civil Engineering Construction • Specialty Trade Contractors, Residential and Non-Residential • Agriculture, Forestry, Fishing & Hunting: (5 industries) • Crop Production • Animal Production • Forestry and Logging • Fishing, Hunting and Trapping • Support Activities for Agriculture and Forestry • Trade, Transportation and Utilities: • Wholesale Trade: (3 industries) • Merchant Wholesalers, Durable Goods: • Merchant Wholesalers, Nondurable Goods • Wholesale Electronic Markets and Agents and Brokers • Retail Trade: (11 industries) • Motor Vehicle and Parts Dealers • Furniture and Home Furnishings Stores • Electronics and Appliance Stores • Building Material, Garden Equipment & Supplies Dealers • Food and Beverage Stores • Health and Personal Care Stores • Gasoline Stations • Clothing and Clothing Accessories Stores • Sporting Goods, Hobby, Book, and Music Stores • General Merchandise Stores • Miscellaneous Store Retailers • Transportation and Warehousing: (11 industries) • Air Transportation • Rail Transportation • Water Transportation • Truck Transportation • Transit and Ground Passenger Transportation • Pipeline Transportation • Scenic and Sightseeing Transportation • Support Activities for Transportation • Postal Service • Couriers and Messengers • Warehousing and Storage • Utilities: (3 industries) • Electric Power Generation • Natural Gas Distribution • Water, Sewage, and other Systems Robert Williamson - RobertMW2@cs.com - 828/894-5338 - Columbus, NC 28722

31. The Industrial Maintenance Skills Shortage Is Real… And It’s going to get worse before it gets worse! Robert Williamson, Strategic Work Systems, Inc. PO Box 70 Columbus, NC 28722 828-894-5338 Email: RobertMW2@cs.com Web site: www.swspitcrew.com Permission is granted to SMRP and their chapters to distribute this document in its entirety by its author Robert Williamson, 9 July 2013

32. SMRP Meeting • Conference Room on 2nd Floor