Workforce Study: Formalized Training Reduces Scrap and Rework

Posted By: Jeannine Kunz, Chief Workforce Development Officer, SME on August 14, 2018

Formalized Training Reduces Scrap and Rework

Scrap and rework costs are a reality for manufacturers across all industries. Wasted prototypes, parts that don't fit properly, and changes in materials are just some of the many things that cause scrap and rework costs. But their impact on a manufacturing organization is the same — wasted time and money. Although it is near-impossible to eliminate scrap and rework completely, you can reduce the amount in your organization by upskilling your workforce with training that addresses issues such as quality, inspection, and lean.

According to our workforce study, one of the top challenges manufacturers will face over the next three years is going to be productivity improvements including a decrease in scrap and rework. In the Industry Pulse: 2018 Manufacturing Workforce Study, we found that productivity improvements and other top manufacturing challenges revolve around finding skilled new hires, upskilling the incumbent workforce and retaining skilled employees. The report also found that most manufacturers aren't tracking lost productivity costs such as scrap back to the cost of turnover ” but they should. As trained baby boomers continue to retire in droves and new employees aren't properly trained, scrap and rework will increase, and productivity will decrease. But with formalized workforce training, companies can turn those results around.

Decreasing scrap and rework

For example, a glass manufacturer with locations in the United States and England was challenged by a low baseline of employee skill levels, inconsistent training methodology, and high levels of scrap and rework. Plus, employees were unmotivated and disengaged. We created a quick-start training program that included more than 500 online classes and implemented it for the manufacturer's entire workforce. The company improved operator efficiency, increased quality and consistency of finished products, and reduced scrap and rework by more than 50 percent over five years. Plus, the company experienced a significant increase in employee engagement and training buy-in.

The cost of quality

In another example, a manufacturer of truck, bus, and construction equipment experienced a high cost of quality because its employees lacked knowledge about new technologies and procedures, yet they were able to make their way up the ranks based on seniority. The company needed to transition from tribal knowledge and informal on-the-job training to measurable and standardized training practices and expectations. Tooling U-SME partnered with the company to build a comprehensive training program, from the ground up, for assembly, maintenance, machining, and quality positions.

Results? The company saved more than $40,000 in scrap in the first year, and reduced the onboarding time of trained technicians from nine months to just one month. It also increased satisfaction and morale with a voluntary, incentive-based, online and hands-on program that trained employees for advancement in current positions, and prequalified them for specific job roles in advanced areas.

Find out how we can help train your employees, so you, too, can reduce scrap and improve productivity. Call 866.706.8665 now. Subscribe to the Tooling U-SME Accelerate Blog and you'll receive an advanced copy of the complete Industry Pulse: 2018 Manufacturing Workforce Report on Monday, September 10.

To read more about the results of our Industry Pulse: 2018 Manufacturing Workforce Study, click on the stories below:

Manufacturers Drive Productivity with a Skilled Workforce (July 31, 2018)

New Technology Requires Advanced Workforce Training (Aug 9, 2018)

Proper Training a Must for Employee Safety (Aug 21, 2018)
Product Quality Rises with Increased Workforce Training (Aug 28, 2018)


Tags: manufacturing, "on-the-job training", productivity, rework, scrap, "skilled workforce", "Tooling U-SME", "tribal knowledge", workforce