Proceedings from ASQ’s

World Conference on Quality and Improvement,

Minneapolis, Minnesota, May 18-20, 2009.
http://wcqi.asq.org

BUILDING A CULTURE OF PERFORMANCE IMPROVEMENT:

“HOW A VERMONT MANUFACTURING COMPANY LEVERAGED THEIR TALENT WITHIN”

John G. Lent
Tupelo Group, LLC
1 Mill Street, Suite 200
Burlington, VT 05401
johnlent@tupelogroup.com

SUMMARY

In a rural state ranked 49th by population, this Vermont manufacturing company is getting a lot of attention and
scoring high marks on how they leveraged their internal talent to build & sustain a culture of Quality & Performance
Improvement. In this case study you will discover how a company of 250 employees developed a supervisory & leadership
program, and then integrated the program into a competency based production training program linked to an employee
development plan. Their results contributed to a 346% company growth and earned a top 5 ranking of all Vermont
businesses.

INTRODUCTION

Autumn Harp, Inc. located in rural Vermont evolved from a provider of branded natural lip-care products into a full
service developer and custom manufacturer of private label cosmetic and skin care products. With an employee base of 250,
Autumn Harp was a recipient of the Vermont Business Magazine’s 5 x 5 x 5 Growth Award. That is, they celebrated their
achievements as one of the top 5 business throughout Vermont, judged over a 5 year period in 5 different categories based on
growth. Although they realized an impressive 346% growth during this period it did not come without challenges.

To meet customer demand Autumn Harp runs 4 production shifts operating 7 days a week. Analysis revealed there
were inconsistencies in quality and production output numbers among shifts. This resulted in rework, increased waste and in
some cases overtime. Process improvement strategies across all shifts were needed to address these concerns in order to
transition to a culture of quality. Additional feedback received from an independent employee survey revealed both the desire
and need for a formalized new hire program, and a need for creating an ongoing production training program. Moreover,
management recognized supervisory and leadership training was needed to develop the next generation of team leads and
supervisors due to company growth. Management buy-in was not the issue but rather how could they implement such reform
while continuing to meet production targets, and without affecting on-time delivery and customer satisfaction.

Autumn Harp turned to Tupelo Group, LLC an independent training & consulting company to shape their business
needs into an actionable plan to develop select employees as team leaders and trainers, and develop a production training
program to ensure continued growth and success of the company.

After considerable analysis and discussions with Autumn Harp’s key management team a Process Improvement
steering committee was formed. This steering committee consisted of the Executive Vice President, Director of Operations,
Quality Manager and Production Manager, along with Tupelo Group personnel. We agreed on a two-phase approach. First
we would address process improvement initiatives by designing a Supervisory & Leadership program, and then follow with
development of a competency based production training program to augment their existing new hire program.
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PHASE 1 – DEVLOPING THE NEXT GENERATION LEADERS

Autumn Harps’ steering committee requested we incorporate proven techniques from the “Training within
Industries” (TWI) methodology where appropriate. TWI was created in USA in June 1940 by the War Manpower
Commission to increase productivity in all industries and companies directly contributing toward the war effort. Most notable
was the successes achieved in defense industries that met increased production demands by standardizing the training
available for each worker, and by making maximum use of employees’ individual skills. The three most notable TWI
programs are: Job instruction Training (JI), Job Methods Training (JM) and Job Relations Training (JR). Our plan was to
utilize some of these training methodologies as an industry best practice in developing Autumn Harps training program.

Our first phase began by identifying 20 key personnel across all 4 shifts representing shift supervisors, team leads
and other key operators. These employees were chosen to begin a 5-week “Applied Supervisory Leadership Program.” The
topics we adapted from the TWI program included “Job Relations” and “Problem Prevention.” Our focus was to bring
together employees performing the same job on different shifts and for us to hear first hand, the challenges and differences
related to quality and production quotas. Careful discussion with the steering committee provided the final direction for the
curriculum.

We received additional feedback, which confirmed management’s sense that there were opportunities to improve
communication during shift changeover, and evidence of non-standardized procedures in running the production lines. These
became the targeted areas in order to impact differences in quality and production output. Lastly, we learned several
employees have not had previous opportunities to receive formalized training on communication, teamwork, or techniques to
transition from a production worker role to a team lead or supervisory role.

The final analyses lead to the “Applied Supervisory Leadership Program” course content as follows:

o Myers Briggs Type Indicator (MBTI) – personality profile

o The Roles & Challenges of Effective Communication
o Navigating Personal Change
o Building Effective Work Relationships
o Building Teams That Problem Solve (Plan-Do-Check-Act (PDCA)& Quality Tools)

In order to accommodate four shifts including night and weekend participants, we scheduled two hour training
classes each Friday at 6 AM and again at 2 PM. This enabled all 20 employees to attend the training classes, either at the
beginning or end of their work shift. An added benefit realized by gathering across shifts is that it gave workers an unusual
opportunity to meet and learn together.

It became evident that providing learning opportunities directly related to their job started a change in behavior.
Instead of a common practice of complaining about something they felt they had little control over these employees now
presented a problem and offered possible solutions. They became more open to communicating as a team and problem
solving.

The culmination of the “Applied Supervisory Leadership Program” was a field trip to Green Mountain Coffee
Roasters, considered a Vermont based company best practice for their training program and lean manufacturing practices. We
arranged for a facilitated discussion forum among all supervisors and team leads from both companies. Questions were
prepared in advance from Autumn Harp on topics related to supervisory challenges, staffing, quality and manufacturing
practices, and other topics common to everyone. The meeting ended with a guided tour of the manufacturing operations. The
level of engagement and enthusiasm could not have been scripted. Clearly the Autumn Harp staff was energized and eager to
improve their own operations. They now realized they could affect areas they controlled for the better.

Proceedings from ASQ’s World Conference on Quality and Improvement, Minneapolis, MN, May 18-20, 2009, http://wcqi.asq.org.
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BUILDING MOMENTUM & SUSTAINING RESULTS

Tupelo Group follows a standard practice of de-briefing with all participants following a training session such as the
“Applied Supervisory Leadership Program.” We asked individually, “What inspired you from the field trip to see another
manufacturing company?” Comments received included: “the passionate, educated employees; great new hire training
program; neat organized work areas; and noticeable efficiency in overall operations.” When asked, “What would you like to
emulate?” Comments received included: “their systematic training of new employees; smoother operation of production
flow; better use of space; and pride in their company to show off to others.” The lesson learned from their exposure to an
industry best practice, was that things didn’t just happen, but rather they saw the result of formal learning and evidence of
lean practices being employed.

In order to continue the momentum and identify potential top performers at Autumn Harp, the steering committee
agreed to a follow-up series to the “Applied Supervisory Leadership Program.” Our meeting times for the 4 shifts remained
the same but this time it was voluntary.

Our next step was to have the group directly address a problem or challenge they (previously) thought they had little
impact to change. They identified the top three opportunities for improvement as: 1. improving communication of team leads
between shifts; 2. new employee training & orientation; and 3. standardization of job practices. Our class project would
address the first one, since the other two were part of the phase 2 initiatives at Autumn Harp.

In the succeeding weeks of the follow-up program we covered several quality principles and tools such as:
Brainstorming & Multivoting, Flow Charts, Value Stream Mapping, Checklists, Cause & Effect diagram in a manufacturing
environment, and problem solving. These sessions resulted in over a 90% attendance rate with each session building upon the
previous one.

The outcome of the class project resulted in the participants creating a “Team Leader Checklist – A Communication
Tool for End of Shift to Next Shift.” It included essential items of concern to all shift changeovers such as schedule changes,
machine issues, quality issues, line set-up and stocking issues, and clean work area verification, with sign offs for each item.
This was approved by the production manager and implemented as standard operating procedure.

PHASE 2 – BUILDING AN EDUCATED WORKFORCE

In the first phase of building and sustaining a culture of quality & performance improvement we identified and
trained key people to become critical thinkers and work as a team. We then assessed this talent pool for candidates to become
trainers for our next phase of process improvement to build an educated workforce.

In this second phase we began with a training needs assessment that addressed business needs from a long term
strategic perspective, and a tactical one-year perspective which would address infrastructure and individual needs.

Our long term perspective needed to build a culture of quality in all areas to improve operational efficiency, sustain
growth by developing and attracting educated employees, and to continue to be recognized as a leader in custom
manufacturing of private label cosmetic and skin care products. Our short term perspective needed to develop standardized
training content, create a documentation system, build a comprehensive training program using industry best practices and
integrate this program into an employee development plan.

We began with two concurrent goals: develop training content by leveraging Subject Matter Experts (SME), and
select key people from the internal talent pool for a Train-the-Trainer program. We again utilized the Training within
Industries materials by adapting, “TWI Creating Work Instructions” and “TWI How to Get Ready to Instruct.”

To begin development of training content we used the TWI methodology to create work instructions. The concept is
to break down the job process into important steps, key points and reasons. We used a three column template to create the
work instructions. The details of each item are described as follows:

Proceedings from ASQ’s World Conference on Quality and Improvement, Minneapolis, MN, May 18-20, 2009, http://wcqi.asq.org.
 4

1. “Important Step” is defined as a logical segment of an operation when something happens to advance the work.
2. “Key Point” is identified as anything that may make or break the job, injure the worker, or make the work easier
to do.
3. “Reason” is described as the purpose or reason for the Key Points (this may be optional or added as applicable).

The SME’s followed this 3 column template to begin capturing a systematic instruction for each phase of the
production line. Once completed, other SME’s or selected line workers followed the instruction to validate accuracy or
offered improvements to the process. Over time this process was repeated for each (product) production line. This objective
resulted in standardized training material created by seasoned employees and validated by team consensus.

To address the second goal, the Tupelo Group facilitated a Train-the-Trainer program to all staff that completed the “Applied
Supervisory Leadership Program.” This segment covered adult learning principles, adaptations from “TWI How to Get
Ready to Instruct,” and “TWI Four Steps in How to Instruct.” The select participants also received advanced knowledge of
their roles related to the training program and employee development plan as they were constructed. Our intention was to
provide a level of engagement or buy-in that is necessary for a successful project launch.

Since the trainer position at Autumn Harp was not intended to be a full time position, our plan devised primary and
secondary training roles. The understanding is that a training function would be an additional responsibility to the selected
participants existing position. It was not mandated but rather left to the individual to choose. The primary training role was
performed by a person certified in a production process who delivers training instruction utilizing approved training
materials. They are also expected to update training materials and incorporate improvements as appropriate. Since this was a
new program they would be required to complete the train-the-trainer program and successfully complete all the certification
steps just as a new employee would. The secondary training role also required trainer certification but they would serve as a
mentor or coach to a trainee during their certification process. The role of the secondary trainer could also include validating
that the trainee applied their knowledge to the job, here referred to as observation of demonstrated behaviors. Either person
responsible for validating the learning event also completes the appropriate forms for the employee completion record and
company training database.

PUTTING IT ALL TOGETHER

At this point we have created the foundation by developing the skills and materials to launch a company production
training program. However, a roadmap still needed to be defined in terms of flowcharts and policy and procedures.
Moreover, the success of the program also needed to be measured both quantitatively and qualitatively.

The next step was to update Autumn Harp’s documentation system and include comprehensive policies &
procedures regarding the training process. This also included an employee development plan that provided incentives for
learning. The steering committee designated an employee with previous ISO (International Organization of Standardization)
documentation experience to update and manage the training database. Flowcharts were then created to guide potential
training participants through the certification process. A unique feature of the training program also included an accelerated
certification path for seasoned employees who had operated the production lines for a long period of time. After reviewing
the training content these employees would only need to demonstrate their competency on the line to a trainer following a
certification checklist. After several drafts and revisions all members of the steering committee signed off on the new plan.

To measure success of the training program we incorporated principles from a widely recognized leader in
education, Dr. Donald Kirkpatrick in his 4 levels of training evaluation. He surmised training evaluation could be conducted
with four possible outcomes: reaction, learning, behavior and results.

At level 1, evaluating reactions means receiving feedback on what the trainees think and feel about the training. At
Autumn Harp we created a Production Training Satisfaction Survey which included a 5-point Likert rating scale. In addition
to quantifying this feedback, additional comments received from the trainees served to make course adjustments and improve
the program. The training satisfaction survey not only provided valuable feedback in evaluating a first level of the training
program but also provided the “Voice of the Customer” toward ongoing process improvement.

Proceedings from ASQ’s World Conference on Quality and Improvement, Minneapolis, MN, May 18-20, 2009, http://wcqi.asq.org.
 5

Level 2, learning or knowledge transfer, means determining the extent to which the trainees improved or increased
their knowledge or skill, as a result of the training. Traditionally this is performed with a written test. Our intention was not to
administer tests to production workers, but rather conduct a one-on-one dialog between the trainer and trainee. As each step
of the Work Instructions was taught at the production line, a verbal review and sign-off occurs using a Training Summary
Checklist. At this level the competences we focused on were knowledge and comprehension. The demonstrated skills
included observation and recall of information, knowledge and understanding of major concepts, interrupting facts,
contrasting ideas, and predicting consequences. If a trainee did not feel comfortable with understanding all the steps of a
production operation they could review the work instructions (located at each production line) or schedule addition time with
the trainer. Once the trainer and trainee feel confident all the steps of the production line are thoroughly understood sign-off
of the Training Summary Checklist occurs and the paperwork is forwarded to the document control administer, Production
Manager and Human Resource department. A “Certificate of Completion” is then issued to the trainee for successfully
completing all steps of the training process for that production line.

Level 3 is evaluating the demonstrated behavior by observing if the trainees are using or transferring their newly
acquired knowledge on the job. This process is performed by the trainer using a Certification Checklist. The intent is for the
trainer to validate that the trainee can operate all facets of the production line, unassisted, in a productive and safe manner. At
this level we are observing competences related to application, analysis and synthesis. Demonstrated skills include proper use
of information, identification of all components, ability to solve problems using acquired skills or knowledge, relating
knowledge from several different production areas, and predicting or drawing conclusions from a thorough understanding of
theory and operation of the production line. Upon successful completion the trainer signs off on the Certification Checklist,
recommends this employee for certification and forwards it to the Production Manager. Once the employee records are
reviewed regarding attendance, non-compliances, productivity, rework, etc., the Production Manager then approves and
completes the process to issue a “Certificate of Achievement.” At this point the employee becomes eligible for an increase in
their hourly compensation and their name is added to a list of certified production line workers that is prominently displayed
on the production floor. Throughout the year accrued certifications are factored into an employee’s development plan and are
considered for promotions or career path considerations.

Level 4 evaluation means determining if the training has affected business results or has contributed to the
achievement of the organizational goals. Too often people interrupt this level quantitatively by measuring only monetary
measures as Return on Investment (ROI). Although a comprehensive training program will certainly impact the company
bottom line we also looked for qualitative measures pertaining to cultural changes and employee morale. We measured our
results by external audits; reductions to non-conformances, rework and waste; productivity measures; certifications issued;
and increased morale and career advancements.

RESULTS

A key ingredient in establishing a culture of quality is to include employees from all levels of the organization. This
not only included top management but also involvement from shift supervisors, to line leads to production workers. A
catalyst to the process improvement journey was acting upon areas of concern gleaned from the employee satisfaction survey.

Having a limited employment base to draw from in rural Vermont, Autumn Harp embraced the idea of investing in
process improvement initiatives and providing educational opportunities to develop the talent within. Change that initially
was met with skepticism was now followed with engagement because employees were now involved in the training process
and in their own career advancement. Analysis from the Training Satisfaction Survey clearly demonstrated employees were
pleased with the program as indicated below:

• 72 employees were engaged in the training program with 78% (56) fully certified as of March 2008
• 85% of the respondents rated their confidence level after training as “very good to excellent” as opposed to 64%
of the respondents reporting their confidence level before training was “fair to good.”
• 66% of the respondents rated the instructors as “very good or excellent”
• 88% rated the structure and content in the “good to excellent” category

Proceedings from ASQ’s World Conference on Quality and Improvement, Minneapolis, MN, May 18-20, 2009, http://wcqi.asq.org.
 6
• 88% rated the amount of hands-on time versus demonstration in the “good to excellent” category
• Nearly all respondents replied they would recommend the training program to other workers at Autumn Harp
because of standardized procedures (i.e. everyone performing the same job function the same way)

Additional benefits realized included a 16% year-over-year gain in weekly schedule efficiency (measured by
finished goods plan put forth by Operations planning). This is clearly an indicator of improved operational efficiency to meet
production targets, while maintaining quality and increasing customer satisfaction. Although it is early in the monitoring
process, trend analysis has also realized a reduction in non-conformances, waste and rework.

Perhaps one of the biggest measures of success from the training program and process improvement initiatives is
from external audits. Autumn Harp received a “Preferred Vendor Status,” primarily due to the production training program
and documentation system. Informal comments from a key customer stated they had not seen such a comprehensive in-house
program. This ranged from verifiable training records, to having accessible reference material available to employees, and
training progress reports visible on the production floor.

CONCLUSION

In the final analysis, we see that Autumn Harp has fulfilled their tactical short term objective to develop
standardized training content, created a documentation system, built a comprehensive training program using industry best
practices, and integrate the results into an employee development plan. It was also concluded that it made business sense to
invest in their employees by providing supervisory & leadership skills which resulted in increased morale by empowering
employees to control their own development plans and career path.

We can also expect that the long term strategic objective will always be a work in progress. By definition, we can
expect process improvement to never end. Autumn Harp has already shown substantial gains toward improving overall
operational efficiency by creating a culture of quality and continuous improvement. The saying, “Success breeds Success” is
happening in rural Vermont. We believe that Autumn Harp is well postured to support their continued growth by developing
and attracting educated employees, and will continue to be recognized as a leader in the custom manufacturing of private
label cosmetic and skin care products.

REFERENCES

• Graupp, Patrick and Wrona, Robert J. (2006). The TWI Workbook: Essential Skills for Supervisors. New York, New
York: Productivity Press

• Westcott, Russell T. (2006). The Certified Manager of Quality/ Organizational Excellence Handbook. Milwaukee,
Wisconsin: ASQ Quality Press

• Brassard, Michael and Ritter, Diane. (1994). The Memory Jogger ll: A Pocket Guide of Tools for Continuous
Improvement & Effective Planning. Salem, New Hampshire: Goal/QPC

• Estep, Tora and Mitchell, Jennifer, eds. (March 2006). Designing Learning: ASTD Learning System. Arlington, Virginia:
ASTD Press www.store.astd.org

• Bassi, Laurie J. and Russ-Eft, Darlene, eds. (1997) What Works: Assessment, Development, and Measurement.
Alexandria, Virginia: ASTD Press

Proceedings from ASQ’s World Conference on Quality and Improvement, Minneapolis, MN, May 18-20, 2009, http://wcqi.asq.org.