Visibility

Appeared in the Fremont Chamber of Commerce Fremont Business Review May 2002

Employee Training Lays Groundwork for Growth

By Bill Singh, President, Manex

A company's employees are at the heart of any strategic growth initiative. When San Leandro-based Alpha Innotech was positioning itself for expansion, it focused on employee training. Similarly, the Betts Spring Company, founded in 1868, recognized that long-term success requires a high performance workplace. Both companies took advantage of State funding from the Employment Training Panel to help pay for the employee training that positioned them for future expansion.

Alpha Innotech

As a global leader in providing imaging system products for molecular, biotechnology and hi-technology markets, Alpha Innotech was growing rapidly and needed to keep pace with the changing needs of both personnel and operational processes.

The company embarked on an eight-month training program to improve management and leadership skills. In addition, the company trained staff in Lean/World Class Manufacturing to enhance teamwork, improve quality and shorten customer lead time.

Alpha Innotech credits the training with improving communication, performance and understanding of manufacturing procedures. In addition, the manufacturer:

* Increased cash reserves by cutting inventory

* Reduced customer lead time

* Expanded capacity

* Better utilized the Materials Resource Planning business management software.

Betts Spring Company

Betts Spring Company in San Leandro supplies springs to the transportation, aerospace, electronics and medical industries. The firm conducted eight weeks of employee training to improve communication and operations.

Using Kaizen, a focused team approach that engages employees in the process of change, the sessions generated many suggestions, according to Mike Betts, president. "It was really an incredible, insightful experience," says Betts. "Eighty percent of the requests for change were great ideas geared towards productivity improvements."

As a result, 30 projects were implemented in the following five months, dramatically streamlining production. For example, the company applied cellular/flow manufacturing concepts and made gains in throughput and waste elimination. "Savings in material waste, from just one item, corrugated cardboard, amounts to about $60,000 a year," says Betts.

Betts Spring also moved to Activity Based Cost Accounting, wrote its own "Betts Principle of Kaizen" to internalize continuous improvement and created a Change Review Board to consider suggestions and implement them. Employees are more motivated, productivity increased and flow improved.

"The impact of the training was remarkable and the company as a whole gained enormously," says Betts.

State Funded Employee Training

Both companies worked with Manex to secure state funding to subsidize some of their training costs through the Employment Training Panel. Fremont-based Manex (www.manex.org) provides training and manufacturing consulting services to growing manufacturers throughout Northern California. The California Employment Training Panel's goal is to improve the state's economic competitiveness through employee training assistance. Manex holds a contract with the state to customize training and assist companies in securing funds to help pay for training.

Employment Training Panel funds can be used to develop customized training to meet a company's specific needs. Funds are available immediately and eligibility is determined within 48 hours with a simple two page application. Manex works with companies to expedite the training and manage all the administrative requirements. To qualify for the funding, some of the requirements include:

* The training must supplement existing training programs

* Training is for full time employees with a minimum pay rate of $10.44/hour.

* The plan requires a minimum of 40 training hours for each employee.

* Participants must attend all of the training sessions.

* Trainees must be retained by the company for 90 days after training is completed.

* Employee turnover must be less than 20% per year.

* One instructor is provided for every 20 students.

For more information on how your company can subsidize some of your training costs with state funding, contact Sallyanne Monti, Manex Training Services Manager, at 510-249-1480.