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man working at a manufacturing plant that has decreased employee turnover

Improving Morale, Decreasing Turnover, and Increasing Profitability

9

Industry:  Manufacturing
Location:   Michigan, USA
Employee Size:  195
NASDAQ:  AMOT

an employee more engaged at work

The Situation

For over 60 years Motor Products Corporation has supplied fractional horsepower DC motors to original equipment manufacturers in a myriad of industries. And interestingly enough, it has employees who are experiencing between 20 and 40 plus years of employment. The company, a small town employer where many are related and nothing changes was sold to a public company where change is survival. The transformation and the new changes practically paralyzed the morale of the plant workers.

The Objectives

  • To reestablish trust and respect throughout the entire plant.
  • To change the managerial style from reactionary to proactive and progressive.
  • To improve communications between supervisors, managers and union officials.
  • To reduce employee turnover with the hourly workers and hire smarter with seasonal workers.
  • To establish and standardize the human resources system.

The Implementation

  1. The Human Resource Department announced that everyone in the plant would participate in completing a ProScan Survey and would meet with Don Crosby, PDP Representative and consultant, for a 15 to 20 minute personal session.
  2. Motor Products made the commitment for each of its nine assembly lines to experience a four-hour team development session.
  3. Motor Products invested in ProScan, JobScan and TeamScan modules and in training for the President and Director of Human Resources.
  4. With the success of the team development sessions, approval was given to do team sessions with each remaining department.
  5. Meetings with a consultant and implementation of the JobScan and TeamScan to understand successful dynamics resulted in serious downsizing.
  6. An Understanding Personal Strengths PowerApp workshop was scheduled for September 2004 for 34 salaried staff.
  7. The approval of a Developing Effective Communication Skills PowerApp workshop was scheduled for the hourly 161 employees in late 2004.
  8. Motor Products has been recognized by the parent corporation, Allied Motion, as their most successfully organized operation. This resulted in approval for a duplication of the Motor Products system for all other manufacturing plants.

The Measurable Results

The services of team training came at the beginning of the change era. In conjunction with personnel development Motor Products implemented new product designs and aggressive changes with the built processing. The staff development factor launched the essential functions to make the process more tolerable and successful.

Return on Investment

  • The overall success of the implementation of our training assisted the company by improving their production by 2 points. This is interpreted as 2% per month of the job closure rate measured to the standard criteria. Financially, each point represents $8,000 or $16,000 per month.
  • We have been fortunate to work with Motor Products for 16 months, during which their ROI has increased to $256,000.
Improvement in production
Per Point Financial Impact
Return On Investment
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"Many companies talk about how important their people are comparative to the success or failure of their organization; but their investment in their people doesn’t normally correspond with their easy statements. They will invest hundreds of thousands if not millions of dollars in capital equipment and tooling and paint and facilities and invest very little if anything in equipment, tools or time in their people. With PDP and Don Crosby, the investment isn't nearly as significant in terms of capital required to have an equal to or much greater return than a similar investment in the equipment.

Bill Stout
President