Panel Discussion 1

1. .) Panel Discussion 1 • Eaton Hydraulics - Ron Krueger • Penn United - Jim Ferguson • Morris Group - Mike Whitney • Harley Davidson - Al Salentine toolingu.com

2. .) Eaton Corporation Tooling U User Group Discussion Las Vegas September 13, 2011 toolingu.com

3. Eaton Corporation • Hello, My name is Ron Krueger • I have been employed with Eaton Corporation for 14 years • The last 5 years has been in training. • Eaton located in Eden Prairie Minnesota makes hydraulic motors and steering controls • Making these products requires precision machining skills

4. Eaton Corporation • Eaton found it hard to find people to fill these highly skilled positions • Eaton decided to start a training program to train people from within the company • In 2005 Eaton started a state led apprenticeship program using ToolingU, State guidelines and The National institute of Metalworking skills (Nims) • In 2008 Eaton started offering bonus to employees that completed ToolingU classes • Eaton started ToolingU because It fit the companies training needs for a couple of reasons

5. Eaton Corporation • Our apprentice program starting using ToolingU for their education hours. • Because of the flexible ToolingU offers Eaton rolled it out to all the employees, Which enabled them to start taking classes and prepare themselves for higher paying positions with-in the company. • Eaton’s desired outcomes were to help their employees learn about new areas in the shop and prepare them to move into new positions

6. Eaton Corporation • At the present time about 40% of the shop floor uses ToolingU. • Eaton use it to help with cross training employees to other job functions. • It is used to help employees learn more in their current roles. • Engineer's use it to help understand process that they may not fully understand.

7. Eaton Corporation • Employees are able to be more flexible with the number of machines they are able to run. • We spend less time with one-on-one training because employees have a better understanding of the terms and machine functions. • Some employees are uncomfortable using a computer. • One of the lessons learned was to not have the test answer available to the employees.

8. .) Penn United Technologies Inc. Tooling U User Group Discussion Las Vegas September 13, 2011 toolingu.com

9. Penn UnitedTechnologies Inc. • Jim Ferguson • jim_ferguson@pennunited.com • 724-352-1507 Ext. 4621 • Director of Training • L.I.G.H.T~Learning Institute for the Growth of High Technology • Established 1999 • 17,000 sq. feet - Machining, Grinding, Computer Labs and Classrooms • Provide training to Apprentices, our Employeesand Customers • MSSC, Certified Production Technician • www.LIGHT-training.com • Penn United Technologies Inc. • 799 North Pike Rd, Cabot, PA 16023 • www.pennunited.com • Founded in 1971 Precision Tool and Die Manufacturer • 600 Employee Owned Company (ESOP) • 40 miles Northeast of Pittsburgh • Progressive Dies, Stamping, Electroplating, Tungsten/Silicon Carbide • Servicing: Medical, Energy, Defense, Aerospace Industries

10. Penn UnitedTechnologies Inc. • Overview of need for training • Leadership – Serving/Mentor Leadership Model • Apprentice – Continuous Improvement In-House vs. Vo-Tech • All employees – Not many courses for “Precision Manufacturing” • Key business objectives • Value of Employee – Keep and Develop • Develop a “Culture of Learning” • Key considerations for designing our training program • Effective, Relevant, Accurate Training = Results • ‘Productus Interruptus’ – Avoid this common manufacturing disease • ‘Guys don’t ask questions’ – But they still want the correct answer • Best combination for Blended Learning in Manufacturing • Why we opted for Tooling U • Ease of use • Relevant to Precision Manufacturing • Cost of Personal E-Learning vs. Classroom • E-Learning is self-paced “Great for Guys and Gals too” • Quicker learning of ‘Basics’ (Blocking & Tackling Standard)

11. Penn United Technologies Inc. • Overview of how we designed the Tooling U program • Pilot for 3 months – Spring of 2010 • Targeted groups for one year “subscription - ten packs” finished 8/11 • Desired outcomes • Better engaged Leadership-Classroom Blending-’Supervisor Essentials’ • Management Acceptance • Improve Apprenticeship program • Key training/learning objectives • Improved performance • Develop an interest in learning and acceptance of E-Learning by participants • How to implement Blended Learning • Overview of how we implemented and rolled out to workforce • Pilot for 3 months with 15 people/cross section of employees/groups • Subscription for 100 - Launched with Client Executive to navigate website • Team Leaders and Lunch N Learn - 20 • Area Coordinators - 20 • Instructors - 15 • Apprentices and Class Room/Hands-on Machine Instruction – 15 • Westinghouse: Customer Quality Certification - 30

12. Penn UnitedTechnologies Inc. • Key Tooling U pieces/functionality for supporting our objectives • Easy to use by participants- Easy access at home, at LIGHT or Kiosks in Shop • Administration Package also very user friendly • Help desk staff very friendly and helpful – ‘No Peggys’ • How long have you been live with Tooling U • One Year • Other critical pieces of program, i.e. shop floor, classroom, etc. • ‘Blended’: In classroom through Instructors • ‘Applied Blended’: Hands-on with machines in LIGHT lab through Instructor • ‘Applied Blended’: Shop floor through Team Leaders/Area Coordinators • Summary of outcomes and results • Survey of participant comments – “Good and Relevant” • Team Leaders who engaged Employees feel it improved performance • Management Acceptance • ‘Retention’

13. Penn UnitedTechnologies Inc. • Summary of ongoing progress • Performance evaluation implementation • Beginning to build into Apprentice “curriculum” • Career Development for all employees • Ongoing challenges • All new employees – ‘Onboarding Process’ (Target Retention) • Add to MSSC/CPT program – Safety, Quality, Manufacturing and Maintenance • Editing courses: “Penn Unitedize” • Key lessons learned • Early personal engagement • Performance evaluation accountability • Leadership involvement selecting classes • More intentional planned curriculum • ‘Blended’ and ‘Applied Blended’ necessary ASAP

14. .) The Morris Group Inc. Tooling U User Group Discussion Las Vegas September 12, 2011 toolingu.com

15. The Morris Group Inc. • The Morris Group Inc. (MGI) HQ in Windsor CT • Mike Whitney, Chief Learning Officer, Morris University • Morris Group Inc. Third generation - family owned for 70 years. Comprised of 13 Operating Units. Strong entrepreneurial spirit. 420 Employees $350 million annual sales Morris Value Proposition MGI provides manufacturing technologies that include machinery, automation, measurement, software, training, & customer support for U.S. metal parts makers to help those companies be winning competitors in the world market. High Value for customers and suppliers ensures our future.

16. The Morris Group Inc. • MGI’s needs for learning come from what customers demand • Those primary customer demands are: Help Us Do More With Less – RESPONSE Build Tech Prowess. Innovative Processing Parts – RESPONSE Build Tech Prowess. Grow Competencies – RESPONSE Build Tech & People Skills. • Key Considerations in Designing Our Learning Programs Align MGI value delivery with needs of customers & suppliers. Attract and Retain the Best Talent in all areas of MGI. Create a common company language and culture. Establish Best Practices and implement them. • We Opted for Tooling University because: TU content best fulfilled our needs for technical prowess. TU took ownership to help us maintain our launch schedule. TU offered an LMS where we could incorporate non-TU content.

17. The Morris Group Inc. • Overview of how we designed the Tooling U program Do a learning needs analysis throughout MGI – set our course. Establish the university budget and comply with it. Reach our launch goal of January, 2011 (from April 2010). Audit content of all courses prior to release to employees. Support our goal of superior technical competence. • Desired outcomes Reduce mistakes related to lack of technical knowledge. Adopt a “Skills Inventory” approach to employee development. Lay the foundation to be a learning organization. Know what training and education cost the company and measure benefits.

18. The Morris Group Inc. • Continued overview of Tooling U program design Key Tooling U pieces/functionality for supporting our goals Create hierarchies for supervisor viewing of learning results. Create custom reports to track progress in competencies. Add content not from Tooling U to TU portal. Measure competency with built-in exams. • Other critical pieces of program Morris skills inventory to anticipate & match customer needs. Use of Tooling U contributes to common language & culture. Tooling U training is open to all Morris personnel. 48 personnel in our first group to take TU courses.

19. The Morris Group Inc. • Summary of outcomes and results Still in early stages but data on learning is very instructive. We are on target for 2011 TU course completion as planned. Recognition of lifelong learning as a Morris performance driver. • Ongoing challenges Gaining and retaining share of mind of our personnel. Business priorities sometimes override learning objectives. Balancing online and instructor led content. • Key lessons learned Don’t start vast projects with half vast ideas. Constantly survey your audience for feedback. Needs change. Be clear in what data you track. Use data as a management tool.

20. The Morris Group Inc. Thank You!

21. Harley-Davidson Tooling U User Group Discussion Las Vegas September 12, 2011

22. Allan Salentine Manager, Employee Tech Learning & Development, Harley-Davidson University Juneau Avenue, Milwaukee WI • Mechanical Engineer / Training and Development professional • Over 25 years of mfg experience • Current role - identify, develop, and deploy standardized, technical training • Major roles and accomplishments: • Led team that brought new H-D LMS online for employee and dealer development • Manufacturing Supervisor / Manufacturing Engineer / Organization Development & Training Lead at Capitol Drive Plant in Wauwatosa, WI • Developed H-D’s Gear School program, led implementation of the Simulated Work Environment Project for CI, and H-D’s Job Aid process. Education: A.S. Industrial Engineering / B.S. Business Mgmt / M.S. Project Mgmt Certifications in Training Mgmt, Manufacturing Methods, Standards & Procedures, and Manufacturing Technology

23. 1903 / 04 Serial Number 1 The Harley-Davidson “Factory” (Shed) Milwaukee, WI 1903

24. WILLIAM S. HARLEY ARTHUR DAVIDSON WALTER DAVIDSON

25. 1917 / 1918 – Almost 20,000 motorcycles built for WWI Quartermaster School established to train military mechanics – Later became the Service School for dealer network mechanics and still later became Harley-Davidson University

26. HDU Journey 1917 1980’s 1990’s 2000’s 2008 2009 2010 H-D sells motorcycles to US military, technical training begins, “Quartermaster and Service Schools” New management steps up technical training and adds business skills Satellite Broadcast, Computer-based training added Online content, 250K + delivered Numerous events: Sales conferences, dealer seminars, webcasts, align w/ technical schools, curriculum standards, & international training Organizational transformation - HDU becomes part of HR Fall 2009 - New Leadership, Assessment, Employee Development transferred to HDU Over 93 years of delivering content and still training 2010 Analysis Restructure

27. Lack of a coordinated framework for Employee and Dealer Development Lack of shared Learning & Development vision, direction, value Lack of planning has yielded insufficient funding, misaligned curricula, duplicated efforts, decreasing standardization and increasing inefficiencies Challenged to meet expanding global business requirements and expectations with limited technology, decreasing resources, and lack of a consistent global mindset Lack of standardized training processes - 4000+ courses in LMS Variation in quality No framework to map curriculum to, little understanding of what is foundational to employees, uncertain of training gaps No central repository for training material, instructor guides, etc. LMS user acceptance is low, great need to improve perception HDU – A hard look in the mirror and the state of Employee Learning and Development…

28. Our Study Results….(cont’d) We are not leveraging economies of scale with Training & Development Too many dollars spent on external fill-the-need-of-the-day training, seminars, and other non-standard services Resources could be better leveraged for Employee Development Not consistently using a preferred supplier network Not leveraging “off the shelf” training and spending more to “Harley-ize” for in-house use Need to decrease cycle time for developing training internally (currently 14-16 weeks) and leverage more technology to deliver learning Individuals / departments / functions doing their own thing when it comes to Learning and Development

29. HDU is recognized as the primary service provider for employee anddealer learningand developmentglobally. We develop and deploy robust learning through a standardized framework and processes that align with company goals and strategies to help deliver business value. The Business Process and Talent Management Strategies will be the primary drivers of learning and development needs across the business. Moving Forward…

30. HDU Customers Learning & Development Tracks Employees Technical Gen. Ed / Bus. Skills Leadership /Management Dealers Suppliers Systems / Creative Services Resource Center / Preferred Suppliers

31. Learning Model

32. Why we opted for Tooling U • Curriculum already developed – provides off-the-shelf options • Learning content updated regularly by industry experts • Training products and offerings that align with our business needs • Great support and flexibility of Tooling U’s professional staff • Allows us to rapidly create blended programs for MFG • Introduced Tooling U through Information Visits • HDU Open House at Corporate HQ • Pilgrim Road Powertrain Plant • Product Development Center

33. Pilot 1 – Manufacturing Supervisor Training (1st & 2nd Quarter, 2010) Description H-D Powertrain Operations identified the need to provide foundational manufacturing training to 29 leaders that included supervisors, engineers, and area managers – mitigate effects of company-wide restructuring and job transitions. 10 Tooling U online courses were included in the curriculum to serve this need – e.g. Basic Measurement / Cutting Processes / Mechanics of CNC, etc. This target group had various levels of experience and some were new to manufacturing. Outcome Positive feedback from participants and plant leadership Achieved goal of developing and reinforcing a baseline understanding of common manufacturing terminology and processes

34. Pilot 2 – Green Field Operations (3rd Quarter 2010) Description Developed a training program that can easily be delivered to smaller start-up operations. Blended approach of H-D custom on-line content, H-D ILT content and Tooling U content. Prepared two subject matter experts to deliver this material to a group of 15 employees. Outcome Leadership very impressed with the blended training program format Operations appreciated the quality of foundational training provided

35. Pilot 3 – New Employee Training (July – August 2011) Description Train a pilot group of 80 new employees split into 2 groups for a period of almost 5 days. All had successfully completed pre-employment screening. This training was a mix of online courses and instructor led materials delivered by subject matter experts. Additionally, these courses were a blend of H-D courses as well as the Tooling U online courses that we host. Each participant was required to achieve 80% on the post-test in order to advance to the next course. The blended approach will allow us to gather data / test / plan for our final model. Outcome (Some TBD) We will continue to gather data and develop the final model for casual worker on-boarding, which will be standardized across all manufacturing sites. Determine if making an investment in new worker training will result in improved business results Measure impact of this training on retention, quality, safety and productivity of the participants trained as compared to previous methods. An additional outcome is to determine if the appropriate training material has been selected.

36. Pilot 3 Outcome (cont’d) 75 people completed the training Level 1 Feedback – Avg score 5.2 (1-6 scale) for program Learned new knowledge - 5.6 Conducive to learning 5.6 I will be able to apply this new knowledge on the job 5.7 Lessons learned The variance of online learning time was greater than pilots with our internal employees. This was partially due to our internally-developed courses including an assumption of participants already having a level of H-D knowledge (Acronyms, Process, etc.) Need to add basic computer skills to our hiring criteria Use more Tooling U courses (appropriate learning level and not “Harley-ized”, industry-proven learning material) Several opportunities to reduce cost and burden on H-D staff in future state model

37. Next Steps Develop a standardized curriculum for all new MFG employees Develop manufacturing functional area training for existing employees

38. .) toolingu.com