Debbie Picchione Human Resources Manager of the Ohio Region

1. .) Debbie Picchione Human Resources Manager of the Ohio Region Tooling U User Group Discussion Las Vegas September 12, 2011 toolingu.com

2. Introduction • My name • Debbie Picchione • My role • Human Resources Manager for the Ohio Region (Cincinnati {2 locations}, Springfield and Cleveland Divisions) • Company overview • Heroux Devtek Inc. (HRX), a Canadian based corporation, serves two main market segments: Aerospace and Industrial products, specializing in the design, development, manufacture and repair and overhaul of related systems and components. Heroux Devtek supplies both the commercial and military sectors of the Aerospace segment with landing gear systems, airframe structural components and assemblies. The Corporation’s also supplies the Industrial segment with large components for power generation equipment and precision components for other industrial applications. • Location • There are 13 locations (7 Canada, 5 US, 1 Mexico), my office is in Cincinnati Ohio

3. 1987: Acquired McSwain Manufacturing- Now Industrial Products Division 1999: Acquired Metro Machining and the Engineering Division C.A.T. 2000: Merged with Devtek 2004: Acquired Progressive Manufacturing in Arlington, TX 2010: Acquired Eagle Tool 2010: Acquired E2 2011: Opened facility in Queretaro Mexico 1942: Company founded 1950: Began manufacturing components for aerospace 1960: Designed and Manufactured first landing gear systems *Manufactured the Apollo lunar module landing gear 1970: Started first major R & O Contract for Hill Air Force Base 1985: Received first major military contract 1986: Became a publically traded company: HRX

5. Overview of need for training • The skilled trades are not promoted in high schools anymore. In the 60’s and 70’s, high schools had machine and metal shops along with drafting classes. These are mostly gone now. With the cut backs in local school funding for wood shops, workshops; kids are not learning these skills unless they attend a vocational school. • The emphasis is on college. Those who do graduate from vocational schools are snatched up quickly or do not stay with the trade. Students don’t know such careers exist. After attending vocational schools, the skills need to be fine tuned to relate to our business needs.

6. Key business objectives • The Industrial Division of HD set a goal of 80 hours training per employee per year. We wanted internship and computer-based training in CNC machining and print reading for new hires before they graduate to the shop floor along with OJT. Teams, that included machinist, supervisors, and management where created to research the company needs for knowledgeable machinist, their criteria, and skills. • Key considerations for designing our training program • The high quality and high precision parts must be made by trained and skilled machinist. The difficulty to fill these skilled metal machinist positions are for machine set-up task because of the years of experience needed. This is likely to worsen as older skilled labor begin to retire. We are working with local colleges and vocational schools to fill these voids.

7. Why we opted for Tooling U • As of November 2007 we have been using Tooling U. We chose Tooling U because it uses up to date material, it has a manufacturing culture platform, internet capabilities allowing it to be accessible from work and at home , experience level training, reporting capabilities, tracking user use, and testing capabilities of users to determine possession of information (ISO requirement). • There is a laundry list of applications we currently use: CNC Machining, Quality Inspection, Safety, Yellow Belt Lean, and Supervisor/Management Training.

8. Why we opted for Tooling U –(Cont.) • We have a current mixed culture of “baby boomers” and vocational student age levels to train and advance and enhance their skill levels. TU is easy to read the lessons and follow along, you can also print out the lessons. It has the “Seven Learning Styles” (visual, auditory, verbal, physical, logical, social, and solitary). The virtual lessons give you a real look on how to apply and use the concepts in the lessons to the shop floor. • Our intention to expand our departments into Maintenance, Welding, Laborer, 5S, Kaizen/Lean Manufacturing, and ISO.

9. Overview of how we designed the Tooling U program • ONE EXAMPLE – CNC Machinist: • We expanded on our General Job Description of a CNC Machinist. • We Created separate Job Descriptions for the three machine classifications A, B, C, and S based on knowledge, skills and abilities

10. Overview of how we designed the Tooling U program (Continued) • Created separate Classifications based on Personal Characteristics, Knowledge Requirements on OAP (Operator Acceptance Program), SPC (Statistical Process Control), and IMS (Inspection Method Sheet) understandings; and Prior Performance Requirements and Expectations.

11. Overview of how we designed the Tooling U program (Continued) • Developed Tooling U classes based on our A, B, C Classifications of Machinist levels and TU Department levels of classes (beginner, intermediate, and advanced).

12. Desired outcomes • We set the TU Minimum test score at 75%, OJT with a Machining Specialist, along with knowledge, skill and ability to perform the job. The desire of advancement and value added would be evident to our employees. • Key training/learning objectives • All three machine classifications must be completed in TU by end of year. The ability to advance to the next level of machine classification is permitted after completion of TU, OJT, one-on-one training with Machining Specialist and shop knowledge testing/overview.

13. Overview of how we implemented and rolled out to workforce • Tooling U teams where created to distinguish the three different classifications. • Classes where chosen based on beginner (C) intermediate (B), and advanced (A) and the type of machining skill requirements for our business. • A training room was built in the shop with internet capabilities and Tooling U was introduced to the workforce. Lesson Plans where printed for each Department class. All employees were given access to TU and their own login and password. Meetings where conducted with all shifts, explanation of the Company objective of passing scores, levels of employees, and availability in using the TU system; along with the training of the simplicity use of the TU system. The ease of the TU program having an internet driven system, makes the capability to use it at home or anywhere at your leisure.

14. Continued overview of Tooling U program design • We are currently experimenting with Tooling U Custom Content Creation for all our training needs to track company specific AS9100 & company specific safety training. • Key Tooling U pieces/functionality for supporting our objectives • Our objectives for training employees is met by Tooling U with their reporting function and ability to run reports for tracking and reporting purposes. • How long have you been live with Tooling U • We have been live with Tooling U since November 2007.

15. Other critical pieces of program, i.e. shop floor, classroom, etc. • We have other classification classes we have created for Quality Inspection, Safety, Yellow Belt Lean, Supervisor/ Management . All 135 employees are using Tooling U based on their position in the company and needs of the company. • A separate Training room was created from an old storage room mezzanine.

16. Summary of outcomes and results • Heroux Devtek has committed to training and development of their employees. We have expanded TU in our Texas Aerostructure division in late 2009, we will be expanding in our Springfield and Cleveland Landing Gear divisions in mid 2012. Because of the language barrier in Montreal, we have not expanded. • Summary of ongoing progress • Starting in October 2011 all CNC machinist will be taking the next step level for the 2012 year, along with all other departments Quality, and Yellow Belt. Safety Training continues in the month of November, and Tooling U Custom Content Creation capabilities will continue. New classes will be created for our Welding Department and Maintenance Department. • Heroux Devtek Industrial Products has been granted $138,828 Training Grant from the Ohio Department of Development State Energy Sector & USDOL to develop a qualified, skilled workers for the green energy supply chain.

17. Ongoing challenges • We are a Job Shop that receives it’s revenue from man hours worked on parts machined. Any indirect time spent not working on machined parts is a cost to overhead and lost sales. • Key lessons learned • Pleasantly surprised how many employees took self initiative to learn on their own and take the classes at home on their own time because of the ease of logging on to the Tooling U internet classes. • The versatility of designing your own classes based on the business needs and culture is a big benefit!

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