Sturm, Ruger & Co., Inc.

Report
Panel Discussion 2
Sturm Ruger - Mike Butler
Pryer Machine and Tool - Cayla.)Brumble
New Hampshire Ball Bearings - Donna Cadrette & Sheila O'Brien
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Sturm, Ruger & Co., Inc.
Tooling U User Group Discussion
Las.)Vegas
September 12, 2011
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Sturm, Ruger & Co., Inc.
 Sturm, Ruger, Co., Inc. – Made in America Manufacturer of Fine
Quality Sporting Firearms
 Mike Butler, SPHR, Director of Human Resources
o Responsible for the Direction and Administration of all HR (Benefits,
Compliance, Employee Relations, Organizational Development and
HRIS) Environmental, Safety, Health & Security
 Ruger Firearms- Locations
o Corporate HQ- Southport, CT
o Manufacturing Locations- Newport, NH, 890 Associates, Revolvers &
Long Guns
o Prescott, AZ- 550 Associates, Auto Loading Pistols
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Sturm, Ruger & Co., Inc.
 Ruger Financial results, then and now
o 2006
o Gross Sales 167MM
o Operating Income- (280,000)
o Net Income (after income tax)- break even
o 2010
o Gross Sales- 255.1MM
o Operating Income- 43.4MM
o Net Income (after income tax)- 28.2MM
o 2011 (first 6 months)
o Gross Sales- 155.1MM
o Operating Income- 29.5MM
o Net income (after income tax)- 18.7MM
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Sturm, Ruger & Co., Inc.
 HOW’D WE DO THAT???????
 2006 Operating Philosophy
o Management driven, large batch, push, piecework production system
had created a culture where learning and associate engagement was
not valued.
 2007 Lean Transformation Journey Begins
o Kanban (pull), Single piece flow, participative, Lean (super cell)
production system
o Learning culture development- Associate engagement and participation,
processes require folks to actually “know” the operations. Tooling U
System and Leadership Development
 Key Business Objectives
o 100% fill on time
o 20% operating profit
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Sturm, Ruger & Co., Inc.
o 12X year inventory turns
o 33% sales from profits on products launched within 2 years
o New Product introductions
o New product platform- 6 months
o New product, concept to box- 12 months
 Key considerations for Tooling U online training
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No classroom instructor, no actual classroom time
Less time out of the workplace
No seminar type environment
Training could be done at home
Could apply technical knowledge in the workplace immediately
Good real time reportable, record keeping of all training and rate of
success
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Sturm, Ruger & Co., Inc.
o Regular monthly reporting of utilization data
o User access able reporting on utilization information as required.
 Design and Implementation of Tooling U training system
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Developed new labor classification system for all positions
Classes based upon duties and accountabilities
Developed a mandatory and elective curriculum for each classification
Assigned each individual into the appropriate classification
Uploaded all assignments into each Tooling U to appropriate curriculum
Assigned a minimum number of courses successfully completed by
each individual each month
o Conducted regular monthly and special ad hoc audits regarding
utilization
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Sturm, Ruger & Co., Inc.
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Learning Objectives and Desired Outcomes
o Technical Knowledge of CNC machining skills learned
o Compliance issues learned and documented
o Group and Team Leader leadership training
o Trades knowledge learning
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Other training enhancements
o Extensive on the job training using JI
o Some classroom training- Programming offsets, programming CMM,
Gauging
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Lessons Learned from the Tooling U implementation
o Take implementation a step at a time, no multiple implementations
simultaneously
o Develop a system of agreed upon accountabilities prior to
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implementation.
Tooling U User Group Discussion
Las.)Vegas
September 12, 2011
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 Welcome
 Cayla Brumble - Director of Training
 Established in 1965, PRYER is a privately held corporation
 Manufacture parts for business, commercial, military planes and
the space program.
 Fabricate aerospace components - composite, sheet metal and
machined parts.
 We are vertically integrated.
 120 employees with two plant locations in Oklahoma
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 In Aerospace we are held to a high level of training and verification
of training.
 FAA (Federal Aviation Administration) guidelines and audits
 Customer audits with required training verification
 Industry certifications with audits and proof of required training
 Our training program was designed based on our company need for
skilled employees.
 We combined online training, instructor-led training, and hands-on
knowledge. Our motivation for blended learning was to get our
unskilled employees up to speed faster and cross train current
skilled employees in other production areas.
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 We opted for Tooling U it helped us solved an immediate challenge
of two locations and two shifts.
 In 2008 we rolled out Tooling U.
 Rollout of Tooling U - Our roll out team, consisted of production
employees. They were trained first and we uncovered a few
challenges before training other employees.
 Employees with no computer skills
 Employees with English as second language
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 We have set up a Tooling U computer room, our production
employees are able to go and take their classes.
 Headphones for employees who learn with audio
 Vocabulary words were printed, laminated and kept in the lab
 Some employees complete classes at home or on mobile devices,
while at their children’s sporting events.
 All Tooling U classes were purchased for each employee. With our
focus on Production, Planning, Contract Review, Inspection, and
Maintenance. This is a positive benefit with our hiring candidates
when they ask about our training program.
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 Our talented employees have completed over 7,000 Tooling U
classes.
 We will continue to invest time and resources to train our
employees.
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New Hampshire Ball Bearings, Inc.
Tooling U User Group Discussion
Las.)Vegas
September 12, 2011
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New Hampshire
Ball Bearings, Inc.

Introduction
Acknowledgement

Our names
Donna Cadrette and Sheila O’Brien

Our role
Divisional Trainers

Company overview
New Hampshire Ball Bearings, Inc. (NHBB)
NHBB is part of the Minebea Group family of companies headquartered in Tokyo, Japan
The world’s largest producer of miniature ball bearings and a world class manufacturer of precision
bearings and assemblies for the aerospace, defense, medical/dental, and high technology markets
The Minebea Group comprises:
60 subsidiaries and affiliates in 17 countries employing approximately 40,000 people
 Locations:
Astro Division – Laconia, NH - Union Shop - Donna
HiTech Division – Peterborough, NH - Sheila
Precision Division – Chatsworth, CA
NHBB operates three highly specialized precision manufacturing facilities in the United States
 Astro and HiTech are within the top 10 largest employers in NH – over 1000 Employees
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New Hampshire
Ball Bearings, Inc.
 Overview of need for training
 Improved productivity, organizational growth, maintaining a competitive advantage
Our workforce paradox--the need for skilled machinists and technicallycompetent production workers continues to dramatically increase while the
prevalence of these desired skills among the workforce continues to rapidly
decrease overall
In response, we MUST accelerate our training and development programs
 Key business objectives
 Reduce scrap, increase productivity, improve on-time delivery to the customer through
an empowered workforce dedicated to continuous improvement.
 Key considerations for designing our training program
 A formalized, consistent program to enhance current skills, production time and selfinvestment programs
 Limited Trainer resources
 Why we opted for Tooling U
 Unique on-line MFG adult learning, self-paced
Targeted to key business metrics
 Variety of subjects
Convenient – accessible 24/7
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New Hampshire
Ball Bearings, Inc.
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Overview of how we designed the Tooling U program
ASTRO Division
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In-House Program – Access to Computer Lab, 1:1 with Trainer, 2 hours during work week.
Volunteer Home Program – classes are completed outside of normal work hours.
HITECH Division
In-House Program – Access to Computer Lab, 3:1 with Trainer, 2 hours during work week.
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Desired outcomes
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Key training/learning objectives
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Improve skills and competency
Improve cross training & job transferability
Improve employee moral and bolster promotable potential
Move beyond basic machine skills
Refine ‘shop skills” such as math, gaging, blueprint reading, etc.
Overview of how we implemented and rolled out to workforce
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It took time to gain go-forward support for TU so our first year enrollment was essentially on
an individual approval basis. Later, government grant funds became available which
defrayed some cost so we transitioned to an open enrollment.
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New Hampshire
Ball Bearings, Inc.
Continued overview of how we implemented and rolled out to workforce
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Presentation and demo for supvs/mgrs
Trial accounts setup for supvs/mgrs to explore
Arrange for space and computers to conduct training
Solicit managers/supervisors as to who should participate
Administer pre-assessments and develop course curriculum relative to job function
Briefing session for students and supvs (show TU website & 8 min video)
Create a schedule for classes
Prepare instruction booklets and materials needed--headsets
On-going training provided from in-house Trainer
Celebrate success
Key Tooling U pieces/functionality for supporting our objectives
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Access 24/7
- Audio option
Pre & post assessments
- Quizzes and labs
Administrative capability
- Ability to set our own requirements
Reporting system
- TU service support
 Transcripts shows only highest score (all about learning)
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NEW HAMPSHIRE
BALL BEARINGS, INC.
How long have you been live with Tooling U
ASTRO – July, 2009
HITECH - July, 2010
Other critical pieces of program, i.e. shop floor, classroom, etc.
Tutors, On-the-job training, Professional Development Planning, Computer classes
For whom?
Line Leaders, Supervisors, Machinists, Quality Inspectors, Technicians,
Engineers, Sales, Administrators, Maintenance
How many?
15-20 students per 3-month session
Summary of outcomes and results
ASTRO
HITECH
124 employees - 3,912 hours – 4,763 classes
45 employees – 705 hours – 1,237 classes
In partnership with other various aspects, we reduced scrap, increased productivity and
increased on-time deliveries at both divisions
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New Hampshire
Ball Bearings, Inc.
 Summary of ongoing progress
 New Terms start October, 2011
 ASTRO 11 students, HITECH 18 students
 Continuous Improvement culture
 “Learning Organization” - NHBB company value
 Implement new TU features
 Ongoing challenges
 Training funds in a business environment are always being scrutinized for
the value added so matching grants make it a certainty.
 Both Divisions will apply for a Government Grant as they become available
 A settled and quiet location for on-line training (HITECH moved 3 times)
 Pulling production workers off the mfg floor for 2-hr training
 Helping students who are inexperienced with computer technology
overcome fear and anxiety
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New Hampshire
Ball Bearings, Inc.
 Key lessons learned
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Need quiet space
Set a fixed schedule for training (allow flexibility to re-schedule time)
In-House Trainer guidance at least during the first 4-5 weeks of training
Good study skills will help students progress further
Be prepared to support students with generational differences
The company investment is valued and appreciated by employees and in turn
the Company has realized productivity gains - Win/Win
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