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Contents

Introduction & Historical Perspective _____________________________________________________________________ 3 Grants & Outcomes _______________________________________________________________________________________ 5 Community Based Job Training Grant _____________________________________________________________________ 7 Reaching Out ______________________________________________________________________________________________ 8 Nationally Portable Certification _________________________________________________________________________ 10 Sustainability ____________________________________________________________________________________________ 13 Company & Contact Information ________________________________________________________________________ 16 Appendix 1 – Sustainability Survey ____________________________________________________________________ 17 Appendix 2 – Credentialing Programs __________________________________________________________________ 21 Appendix 3 – CBJT Performance Metrics ________________________________________________________________ 23

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Introduction & Historical Perspective

Logistics education has historically been a tale of extremes. Education opportunities abound for logistics professionals that include local community college certificates and/or two year associate’s degree programs and university-level bachelor’s and master’s degree programs. While these more advanced educational opportunities are offered at multiple universities and community colleges across the Dallas-Fort Worth (DFW) metropolitan region and the nation as a whole, less attention has been given to front line, entry-level logistics workers with little or no experience.

Logistics is an expanding industry, not just in North Texas, but throughout North America. The industry is expected to add over 500,000 new logistics jobs between 2013 and 2016.1_{A large portion of those new}

jobs could potentially go unfilled because of a lack of trained/certified workers and considering an average hourly rate of $22.942 _{for these logistics-related jobs, it could have a severe economic impact}

due to the lost wages and reduced productivity.

Logistics clusters have the ability to address several economic challenges, including the development and implementation of national-portable certification and training, creation of stable high-wage jobs, of the demands of increased foreign trade and infrastructure renewal. In addition to helping companies navigate global supply networks, logistics clusters can lead the way in sustainable transportation and energy-efficient storage and transportation operations.

A typical logistics and supply chain cluster is represented by businesses that provide a wide array of logistics services, including transportation carriers, warehousing

companies, freight forwarders and third-party logistics service providers as well as distribution operations of retailers, manufacturers (for both new products and aftermarket parts) and distributors. Many cities with a strategic location and resources have attracted companies for whom logistics is a critical element of their service offering or a large part of their overall costs. In recent years, several of those strategic Logistic and Supply Chain Clusters, both national and global, have received support and funding from regional and national governments seeking to promote local economic growth and workforce development.

1 _{Economic Modeling Specialist International (EMSI) – 2013-2016 Projection Report for 179 logistics related occupations}

including QCEW Employees + Non-QCEW Employees.

2 Economic Modeling Specialist International (EMSI) – 2010-2013 Historical Report for 179 logistics related occupations including QCEW Employees + Non-QCEW Employees in the Dallas/Fort Worth metro area.

Principal to the success of any new training program designed to address specific need within a specific industry is employer commitment in the process.

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Because of its critical role as a state, national and global leader in Logistics operations, the North Texas region is a prime location for creation of a Logistics and Supply Chain Industry Cluster and training program. The North Texas region is located along two central corridors that support the regional network of inland ports in the DFW metro area and the Dallas/Fort Worth International Airport. It is a staging area for truck, rail and air cargo into the United States carrying goods from the Texas Gulf Coast, West Coast and Mexican deep-water ports through the DFW region and into upper Midwest, eastern United States and Canadian markets and is recognized as the leading inter-modal distribution center in the Southwest as well as one of the top distribution centers in North America. It is.

DFW has access to five major interstate highways, more than any other major metropolitan region in the United States. DFW is also home to the nation’s second largest railroad, two additional Class 1 freight line rail carriers3_{, more than 600 motor carriers and over 100 freight forwarders. Due to the region’s}

central location in North America, a pro-business climate and availability of land, the region enjoys a significant cost advantage when compared to other major distribution hubs in the United States. In early 2006, Workforce Solutions for North Central Texas (WSNCT) in cooperation with the Texas Manufacturing Assistance Center (TMAC) set out to initiate a Logistics/Supply Chain Industry-led Council to promote and explore the potential of a front line training initiative. At the time that the newly created Logistics Industry Council began to focus on workforce development issues, it became clear that there was resistance to the creation of the council. There was widespread belief that basic frontline education was not a necessary component of Logistics operations and was not required to improve the process of goods movement nor was it essential to the overall financial performance of the organization. In other words, providing entry level staff baseline education in logistics operations would not impact the bottom line of the logistics organization.

The North Texas Supply Chain Council (NTSCC), part of WSNCT, was created to identify Logistics and Supply Chain companies with a vested interest in the growth of the industry in North Texas and the establishment of a training program designed explicitly to meet the needs of Logistics employers. NTSCC sought out, located and engaged a group of logistics employers to begin the process of analyzing industry need in preparation for a structured response. WSNCT utilized a strategy to engage the employers in the process with the intended outcome being employer driven. Principal to the success of any new training program designed to address specific need within a specific industry is employer commitment in the process. WSNCT, TMAC and NTSCC were dedicated to the idea that the employers identify the problem and drive the solution. NTSCC acted as a convening body and an organized structure to work with the employers on one side, allowing them the freedom to provide input on the issues while working with government agencies to identify and seek funding sources to deliver a product the industry required. The council was presented with an opportunity to explore the possibility of creating and adopting the

3 State of Texas, Office of the Governor – Economic Development and Tourism, 2012 Texas Logistics Hub of the Americas Report, http://governor.state.tx.us/files/ecodev/Logistics_Report.pdf

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first of its kind national certification centered on the front line logistics worker. This would be an industry first for the Logistics industry nationwide and would also be a nationally portable certificate allowing the certificate holder to move from one place to another without losing his/her certified status.

The concept was presented to the council by the Manufacturing Skill Standards Council (MSSC) in June 2006. MSSC had successfully developed the Certified Production Technician (CPT) program for manufacturing in the 1990’s. The CPT certification was also funded by a US Department of Labor (DOL) grant with MSSC engaging key manufacturers for input into the development of the certification. The process is lengthy and involves several key phases involving multiple levels of the company structure to guarantee the validity of the product. Also key to the certification is the identification of core competencies relevant to the employers but also broad enough to make the certification portable for the employee. With the success of the CPT certification combined with a broad acceptance by manufacturers across the United States, we felt confident that MSSC could help create a new certification for Logistics. In August of 2006 WSNCT applied for a $1.5 million DOL grant to fund the conceptualized plan and develop the first of its kind national certificate for logistics workers.

“Special Products & Manufacturing was fortunate to participate in the department of labor grant to train and certify our associates with the Certified Logistics Technician (CLT) and Certified logistics associate (CLA). The training consisted of technical knowledge about the logistics industry to include: global supply chain logistics, product receiving, product storage, order processing, packaging and shipment and inventory control. Our goal was to train associates in purchasing, continuous improvement and operations departments so we would gain efficiencies in this area. After the training, we were able to capture immediate and positive results by using the tools and techniques offered in the training.”

- Edward Grand-Lienard

Executive Vice President of Special Products & Mfg., Inc.

Grants & Outcomes

The DOL grant was awarded to WSNCT on October 2006. WSNCT contracted with TMAC to manage the project for the duration of the four year grant period. The grant would be administered in two phases, the first phase would deliver the already existing MSSC’s CPT certification to 150 trainees over the first year of the grant. The CPT certification program was delivered through partners in North Central Texas that contracted with TMAC for the CPT training. When the grant was written, the partners felt it would be important to hit the ground running with the CPT training while we worked to develop the CLT certification program. Including the CPT training in the grant allowed us to introduce that certification to employers in North Texas that may not have previously been aware that the certification existed. It also gave us the opportunity to work with our training partners immediately and not have to wait until the CLT certification development was completed. That early process proved to be critical as we were

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able to identify strengths and weaknesses within our training partners and subsequently work through any training provider issues early in the process.

In July 2007, work began on the second phase, to develop an industry-led standards, training, assessment and certification system for front-line workers in supply chain logistics (SCL). Supply Chain Logistics is a critical component within the DOL competencies model for the Advanced Manufacturing Industry. Also by this time the NTSCC had clearly established itself as a leader in the development of a supply chain training program and had established critical relationships that would assist with that effort. One of the most critical pieces of this process came together because of our relationship with Hillwood Properties and the AllianceTexas inland port project in southern Denton and Northern Tarrant counties. AllianceTexas is a 17,000 acre inland port project developed by Hillwood Properties and has grown to include over 200 Fortune 500 companies and over 30,000 employees, most of which are employed in logistics. With the number of logistics firms calling AllianceTexas home, combined with the Hillwood’s perceived need for a future pipeline of trained employees, it was evident that partnering with Alliance was critical to our long term strategy.

An early first step in developing a new certification for front-line workers in Supply Chain Logistics was to determine the areas in which this industry desired certifications. Before we could pull industry representatives together we needed to identify industry representatives willing to commit time and energy to the development of a certification. Our relationship with Hillwood and AllianceTexas made that possible.

With the assistance of Hillwood and AllianceTexas companies and various logistics industry associations in the North Central Texas area, meetings began to take place in the fall of 2007. The Subject Matter Experts (SME) had been selected by early 2008 and work began on the identification of the CLT certificate core competencies and course curriculum. MSSC led the effort with the assembled industry team members and an Industrial Psychologist to facilitate the meetings. It was originally believed that three Logistics certifications would emerge from the SME meetings; however, through the SME group discussions it was decided that one of those perceived certifications could be covered within the framework of two.

After the SME meetings concluded, a certification program emerged that encompassed two complimentary certificates: the Certified Logistics Associate (CLA) for entry-level workers and Certified Logistics Technician (CLT) for mid-level workers. With the SME meetings over, MSSC moved on to complete the course curriculum. The completion of the SME meetings completed the first part of a three part process to identify and validate the CLT curriculum. The next phase of the process would include the Thought Leaders, a broad selection of logistics leaders recruited to review the curriculum and add any input they felt was necessary. Once the Thought Leaders had completed their portion of the process, MSSC moved on to the validation phase. The Validators were a broad selection of logistics front end

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employees asked to check the list of competencies included in the course curriculum and validate its inclusion in the CLT curriculum.

Individuals must first take an MSSC Assessment to secure a CLA Certificate before they can take an Assessment to secure a CLT certification program. The focus of the CLT certification system is on cross-cutting core competencies. With its focus on the front-line worker, the CLT certification program focused on the actual movement and handling of products, from inventory control systems in factories and the storage of products in warehouses to the movement of products to distribution centers and the forwarding of freight to all the various transportation modes: truck, train, air, and sea. The curriculum standards did not cover the knowledge and skills for the actual operation of transportation vehicles. By May 2009 the CLT certification program was ready to be moved into the classroom. The first CLA class took place at the Community Learning Center (CLC) in Fort Worth, Texas. For the duration of the grant period, most of the training took place at CLC and Tarrant County College (TCC). By June 2010, the grant was completed and WSNCT was working on closing it out. With that process now complete, the grant program awarded to WSNCT resulted in the completion of 238 CPT certifications, 314 CLA certifications and 144 CLT certifications. The CLA and CLT certifications exceeded initial goals set early in the grant period. WSNCT began to transition to a second DOL grant designed to expand the certification to a broader audience once this grant was completed.

Community Based Job Training Grant

WSCNT’s first DOL grant that created the CLT certification program’s curriculum and initial training ended on June 30, 2010. On July 1, 2010, WSCNT launched DOL’s Community Based Job Training Grant (CBJT).CBJT was DOL second grant and was aimed picked up where the first grant ended. This $2.5 million grant was WSCNT opportunity to expand the certification to a broader audience in the DFW region as well as expansion into the Houston metropolitan area. WSNCT contracted with five training providers; Tarrant County College (TCC), Collin College, Navarro College from the DFW metropolitan area and Houston Community College and Lone Star College from the Houston area. However, Lone Star College pulled out of the grant early in the program. While our first grant delivered 314 CLA’s and 144 CLT’s, CBJT grant would expand the training through additional training partners and deliver over 1,000 certifications between the two regions.

The CBJT grant’s primary focus was expansion of the CLT certification program and an introduction to new training partners. Having successfully worked with WSNCT on the first grant as a training partner, TCC was asked to partner with WSNCT in an expanded role. TCC would receive the largest share of CLT

Certificates Earned

Certified Logistics Associate (CLA) 928 Certified Logistics Technician (CLA) 635

Forklift (FL) 478

Occupational Safety and Health Training (OSHA) 326 Cardiopulmonary resuscitation (CPR) 260

Cell Phone Soldering (CS) 139

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certification program assessment slots and would also be asked to deliver supplemental training module that addressed the specific needs of the local Supply Chain and Logistics Cluster. TCC’s additional education modules included forklift training, OSHA, CPR, cell phone repair and cell phone soldering. Given the nature of our employers logistics operations the fork lift training was the largest of the additional modules offered with 478 people receiving this additional module.

WSNCT also wanted to focus on placement and retention of trained certificate holders and therefore set goals to place our trainees, retain them with their employers and deliver them into positions related to the logistics industry. The CLT certification was developed for the logistics industry and we wanted to move as many trainees as possible into positions within that industry. The goals set for the CBJT grant included placement (80%), retention (85%) and logistics related employment (90%). There were some changes made through the duration of the grant

including the reallocation of the modules set aside for Lone Star College, however that number was small compared to the total being offered and were reallocated and utilized among the remaining training partners (Appendix 3).

At the end of the grant period WSNCT and our grant partners were able to exceed all of the goals set prior to the grant being awarded. The actual numbers include 83.1% on placement versus a target of 80%, 85.4% on retention versus an 85% target and 92.7% on Logistics Related Employment versus a target of 90%. Meeting these goals was important for WSNCT not just to meet the requirements of the grant but to meet the demands of our targeted industry. Exceeding the 85% target on Retention can be an indicator that the CLT training is beneficial for both the employer and employee. During our initial consultation with employers regarding employee turnover and the costs associated with high turnover they identified training of front line workers as an instrumental aspect of retaining employees. Employee retention was also identified as a key component of long term cost containment since rapid turnover carries such a high cost in continual training of new employees. The actual retention rate realized here is a positive sign for the industry and demonstrates the value of front line certification.

Reaching Out

When a product such as the MSSC CLT certification is being developed, the question about industry awareness and long term support and adoption can’t be ignored. Although MSSC had been successful in the development and delivery of the CPT product, the question remained as to how this effort would endure upon the completion of the CLT certification and how we would communicate to the

Measure

Target

Actual

Placement 80% 83.1%

Retention 85% 85.4% Logistics

Related

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Logistics/Supply Chain industry of the effort that was being undertaken and how the final product would benefit the industry long term. During the original grant period, WSNCT partnered with MSSC and TMAC to pull together a one day conference to promote the newly created certification. This event, the North Texas Advanced Manufacturing & Logistics Summit, would showcase the effective use of the CPT certification by a well-known manufacturer in the United States. The CPT certification had firmly taken root in the Northeast and upper Midwest portions of the United States and proved to be an effective tool for manufacturing employers to assess employees and build an effective and well trained manufacturing workforce.

The foundation of the Summit would be the delivery of a keynote address by James McCaslin, President and COO of Harley Davidson Corporation. Mr. McCaslin spoke to the audience on the benefits of certifications and how Harley Davidson had successfully implemented the CPT certification into its culture. The remaining time focused on our team effort to create the new logistics training program and to prepare for the launch of the new CLT certification in May of 2009. This was our first attempt at generating industry interest in the new MSSC certification and drew about 200 attendees from industry, academia and government. It represented a critical first step in building awareness about the existence of the CLT certification program and the potential impact it could lead to in the years going forward.

After the success of the first event, we decided to host a second event the following year. With the CLT certification program being launched in May of 2009, we now had some experience with both employers and employees that had utilized the CLT program and could generate some feedback for a conference group. During the time between the first and second events, we had forged a relationship with NASCO (North American Strategy for Competitiveness), a global trade organization. Based in Dallas, NASCO works primarily with stakeholders in the United States, Mexico and Canada on promoting trade between the three nations, building all of North America into a cohesive trading bloc and securing safe and efficient routes of transportation through all three nations. With their focus on the movement of goods, NASCO took an interest in the development of the logistics certification and sought to promote the nationally portable certification through its network in all three nations.

Our new relationship with NASCO was well timed to take full advantage of their network of partners, knowledge in logistics and a network of experts available to speak on the value and importance of the newly developed CLT certification. The second event was titled the 2010 North American Workforce Summit and featured Jane Oates, Assistant Secretary of Employment and Training Administration with the Department of Labor, Gregg Mitchell, President of Trinity Logistics Group and Honorable Hope Andrade, Texas Secretary of State. This event focused on the successful launch of the CLT certification program and the value to industry that was already starting to take shape. The event drew over 250 attendees from across Texas and the United States and featured a full day of experts discussing the value of certifications, the trends in education favoring nationally portable certifications and testimonials from industry on their use of the CLT certification program.

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There is tremendous value in leveraging your relationships and building long term, effective partnerships that help both sides achieve success. Our relationship with NASCO has proven to be a tremendous boost to the long term acceptance, value and sustainability of the CLT certification program. NASCO has been able to reach an audience beyond Texas and outside the US. NASCO has invited us to speak at national and international events and has worked to promote a basic comprehension and use of CLT certification program. We have also encouraged a direct connection between MSSC and NASCO that would secure that relationship after our grant periods come to a close. With the completion of our second event, NASCO assumed the role of coordinating future workforce summits and have successfully completed two additional events; the first one was hosted in Fort Worth, Texas and the other in Tulsa, Oklahoma. NASCO is also working directly with MSSC and invited Leo Reddy, President and CEO of MSSC to serve as the Board Member.

“HCC’s training program turned out to be a great success for both expected and

unexpected reasons. We expected a more educated workforce with industry-recognized credentials. We received 100% of what we expected there. What we didn’t expect was the high level of appreciation from the employees for the investment that was made in them. The experience has gone a long way to creating a strong team with a high level of morale.”

- W. Elliott Stephenson, Ph.D.

Vice President - Human Resources for Ben E. Keith Foods

Nationally Portable Certification

Ensuring sustainability, the CLT certification program was driven by industry members that provided input, support and commitment. Additionally, MSSC provided support for a strong national accreditation and credentialing structure that made a nationally portable certification feasible. Through this structure, newly trained workers could demonstrate the skills learned regardless of the location or employer. Furthermore, this certification program served as an initial stepping stone for the front-line worker to advance their career goals in the Logistics/Supply Chain industry. Its development was framed around the stackable certification concept that shaped a clear educational pathway for the front-line workers to advance their knowledge, understanding and performance in the industry.

CREDENTIALLING BODY

As outlined above, the industry lead, training, assessment and certification system was developed by the Manufacturing Skill Standards Council (MSSC) and focused on the core skills and knowledge needed by the nation’s front-line production and material handling workers (Appendix 2). MSSC is a 501 (c) 3 non-profit organization and is the only certification organization in the industry accredited by ANSI under ISO 17024.

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MSSC’s leading, nationwide accrediting system is based upon industry-defined and federally-endorsed standards and it is focused on the development of both entry-level and incumbent front-line manufacturing production and supply chain logistics workers. MSSC's certification program includes two stackable certificates, Certified Production Technician (CPT) & Certified Logistics Technician (CLT) and allow students and workers to document their knowledge and demonstrate the acquired the skills for the technology-intensive jobs of the 21st _century.

Furthermore, MSSC comprehensive systems include fully developed, validated, piloted and deployed tools such as annually updated standards, courses, computer-based training materials, textbooks, instructor training, assessment center training, a national registry, assessments, credentials and diagnostic tools for employers. Lastly, companies may use these tools themselves or work through their local community colleges, high schools or other training providers.

In recent times, more and more community and technical colleges across the country are learning the value of integrating MSSC Courses into their for-credit catalogs and degree programs. While non-credit courses provide excellent opportunity for dislocated worker, rapid response and other fast track adult education, for-credit options open up new possibilities for students, colleges and employers. The best of the best have not only for-credit options at two-year colleges but also have dual credit arrangements with local and regional high schools systems that allow students to begin their certification in high school and complete at the college.

Instructors

Total Instructors Trained 1,014

Total Instructors Authorized 672

CPT Instructors authorized in at least one module

484 CPT Instructors authorized in all four modules 250 CPT Instructors authorized in all four modules 190 CPT Instructors authorized in all four modules 160

Total New instructors 99

MSSC National Perspective

 Over 1,000 instructors trained

 Over 530 assessment centers

 40 states

 61,000+ assessments delivered

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Credentials Issued

Assessments Increase Credentials Increase Passing Rate

CPT 53,108 9,462 42,035 6,663 79%

CLT 10,753 1,461 7,996 982 74%

Total 63,861 10,923 50,031 7,645 78%

Assessment Centers

Total Authorized Assessment Centers 538

Community Colleges 199

Technical Colleges 47

Career/Work Ready Center 52

High Schools 49

Associations/Unions 17

Workforce Investment Boards 25

Secondary School Districts 17

Military Bases 14

Job Corps Centers 9

Companies 105

Federal Prisons 4

Total New Centers (since June 1, 2013) 32

AUTHORIZED ASSESSMENT CENTERS IN TEXAS

 Alamo Colleges, San Antonio

 Cedar Valley College, Lancaster

 Collin County Community College, Plano

 Community Learning Center, Fort Worth

 Frenship ISD, Wolfforth

 Gary Job Corps, San Marcos

 Genco, Fort Worth

 H.I.S. Bridge Builders, Dallas

 Houston Community College, Houston

 Houston ISD, Houston

 Lee College, Baytown

 Lewisville ISD – Night High School, Lewisville

 Lone Star College, Houston

 Lone Star College System, Conroe

 Navarro College – Waxahachie Campus, Waxahachie

 Plainview High School, Plainview

 Randstad, Austin

 Richland College – Garland Campus, Garland

 San Jacinto College, Houston

 South Plains College, Levelland

 South Plains College – Frenship ISD, Wolfforth

 South Texas College – Institute For Advanced Manufacturing, McAllen

 South Texas College – Mid Valley Campus, Weslaco

 Tarrant County College – Corporate Services, Fort Worth

 Texarkana College, Texarkana

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Sustainability

During the development of the CLT certification there was one overriding concern throughout our first grant period, initial deployment and then extended into our second grant period. Having witnessed other grant programs progress abruptly end at the conclusion of the grant period that was a concern for the entire team. WSNCT’s priority was to ensure that the certification program was sustainable beyond the grant funding and could expand beyond the DFW region to reach a national audience. Most of logistics employers have national and, in many instances, global operations which adds to the appeal of portable certifications to a front line worker.

Our first grant centered on the creation of the CLT certification program. The second grant was an effort to extend the reach of the newly created certification and introduce it to a broader audience. During all of this we held events to showcase the certification and help us build support to an audience not just in Texas but across the nation. With our base of employers in North Central Texas, MSSC’s national database and assistance from some of our partners like NASCO we have been able to reach a national and international audience that have reacted to the certification with enthusiasm and gratitude for the effort targeting front line workers.

Part of the CBJT grant included conducting a long term survey of employers that have hired at least five CLA or CLT graduates and tracking the performance of those employees over the course of one year. During the grant period our training providers were placing graduates across a broad spectrum of companies but for the purposes of this study we focused only on those employers that hired at least five or more CLA or CLT graduates and interviewed the companies on their overall satisfaction in several key areas over a one year period. The survey itself had 13 questions which focused on retention, cost savings and overall satisfaction with the training and employee knowledge of the industry compared to employees coming into the company without that background (Appendix 1).

The survey also includes a color coded graphical representation to give the reader a quick view of the overall reaction from our employers with positive results shown in green, neutral in yellow and negative responses in red. The chart on Appendix 1 is primarily green which reflects the overall positive nature of the feedback we received during the survey period. In question one, when asked about the performance of CLA/CLT workers versus non-certified workers the answer was universally affirmative. Question two has a similar response with all but one company describing an increase in attitude, confidence and trainability versus a non-certified employee. In question three only five of the 11 respondents would pay more for a certified employee versus a non-certified employee although that response rate could increase over time as the value of the training becomes more apparent. In response to questions 11 and 12, relating to potential for advancement and productivity, 12 out of the 13 companies responded affirmatively indicating that a certified worker may have more potential for advancement and may be perceived as more productive compared to non-certified workers. The graphical representation for the survey can also be

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viewed in Appendix 1. As stated before, the survey results have been primarily positive with employers expressing optimism over the prospects of longer term performance with a certified employee.

The results of the survey shed some light on the longer term impact on both the employee and employer. Over the period of the grant we have seen some encouraging signs with employers in North Central Texas regarding their use of the certification and the value they place on bringing the certification into the workplace. In one situation a local employer has decided to train as many front line workers as they possibly can, support that plan through company funded training dollars and require the CLA for advancement. This company also intends to extend the CLT certificate training to all United States based operations. In another case, a Texas based company has utilized the state sponsored skills training fund to train all new employees at its new Texas operation. All new employees were CLT certified for the new Texas distribution center. The results of the CLT certification on both of these employers has resulted in a plan to expand the program into other states and make it part of the company culture.

The first class of the CLT certification program was conducted on May 2009, since that time the certification has continued to grow and expand not just across Texas but across multiple states. WSNCT has worked to have an impact in our region and across Texas, MSSC has worked to expand the certification across the country. Our ability to impact employers locally has resulted in a small but growing number of companies willing to buy into the program, a number that will increase over time especially as competitors learn about the impact certification is having on turnover, productivity and costs. MSSC tracks the numbers nationwide and has shown that since the first class in 2009 the acceptance has continued to expand with nearly 8,000 CLT certifications being delivered by year end 2013.

The CLT certification program was created in North Central Texas, since that first class we have seen companies test and then adopt the certification, expand it across multiple operations and require it for

395 1570 4479 7938 10927 330 1309 3533 6012 8122 0 2000 4000 6000 8000 10000 12000 2009 2010 2011 2012 2013

CLT Assessments and Credentials Growth 2009-2013

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hire or promotion. We have also see the certification move into other states with 538 MSSC Authorization Centers across 40 states. The CLT certification program is gaining acceptance and becoming a true standard for both employee and employer.

GENCO Technology Solutions was pleased to offer the Certified Logistics Technician (CLT) and Certified Logistics Associate (CLA) programs to incumbent workers, initially through a Department of Labor grant. We encouraged all front-line leadership and operations key hourly personnel to participate and were pleased with the responses we received. After 40 CLA participants and 26 CLT participants completed their courses, we received feedback from the teammates directly who shared their appreciation for this effective tool. Their leadership also expressed their thanks as they almost immediately recognized improvements in engagement and Lean thinking. The opportunity to positively impact a teammate’s engagement is the key driver behind our organization’s training programs. Additionally, among those who participated, our leaders have seen lower turnover, reduced errors and less on-the-job training required. Those results established a return on investment which created a buzz and encouraged us to continue these programs. Based on these results, our organization is now dedicated to continuing the CLA and CLT programs through in-house funding. One additional unexpected result was found in those who followed the National Association of Manufacturing’s (NAM) learning model, using the CLT as a pre-requisite to the APICS exam. All teammates who followed this learning path passed the APICS module 1 exam, while none of the teammates who failed the APICS exam had also taken the CLT. These results speak for themselves and provide clear indication that the programs are an effective, valuable and motivating tool that we look forward to continuing to support use of here at GENCO.

Renae Scott

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Company & Contact Information

KENT ANDERSEN BUSINESS DEVELOPMENT MANAGER ANABEL CASTILLO-SOTO SR. BUSINESS DEVELOPMENT LIAISON

KENNETH (BOBBY) KHLAN SR. BUSINESS DEVELOPMENT LIAISON t: 817.695.9285 e: [email protected] t: 817.695.9147 e: [email protected] t: 817.608.2351 e: [email protected]

Workforce Solutions for North Central Texas 600 Six Flags Drive

Arlington, Texas 76005

Tel 817-695-9289 Fax 817-640-6480

www.dfwjobs.com

Workforce Solutions for North Central Texas is an equal opportunity employer/program. Auxiliary aids are available, upon request, to individuals with disabilities. For more information, visit dfwjobs.com.

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Appendix 1 – Sustainability Survey

From the beginning of this program we wanted to develop an industry-recognized, stackable and portable credential that certifies the foundational competencies for an entry level position in the Logistics Industry. We wanted to have Industry or the Employers tell us what they would describe as an employable qualified worker.

To understand if we had accomplished our goal of creating an industry-recognized, stackable and portable credential we decided to contact employers who hired or trained a combination of 5 workers that had earned the CLT certification.

We would have three face to face meetings with the Employers. The first meeting was held 6 months after the Employer had reached the 5 worker certification. This meeting was to explain a process of completing a survey after one year of certification and two years after certification. Below are the results of the final Employee Survey:

CLT SUSTAINBILITY SURVEY QUESTIONARIE Participant’s Profile

Company size: Small (1-49) Medium (50-299) Large (300+)

Type of facility: Warehouse Distribution Center Manufacturing

Transportation Wholesale Other

Survey Questions

Q1: Overall, how would you describe the performance of CLA and /or CLT workers on the job vs. non-certified workers doing similar work?

CLT Sustainability Survey

Response Overview

1 50-299 MANUF Somewhat Somewhat N/A 5+ N N/A MOD $1 – $2K 2,3,4 U MOD Y 0-15% Y Y

2 300+ DC Somewhat Some N/A 0-1 N N/A MOD NONE 2,3,4 Y SML Y 0-15% N N

3 300+ MANUF Much Much Yes 0-1 N N/A SML NONE 2,3 U NO Y N/A Y N

4 50-299 MANUF Somewhat Somewhat Yes 5+ N N/A SML $3 – $4K 1,2,4 Y LRG Y 0-15% Y N

5 300+ DC Much Much Yes 5+ Y SUB SUB < $5K 2,3,4, Y LRG Y 15-30% Y Y

6 300+ DC Somewhat Somewhat N/A 5+ Y SUB MOD N/A 1,2,3,4 U LRG Y 30-50% Y Y

7 300+ Other Somewhat Somewhat Yes 5+ Y MOD SUB $1 – $2K 1,2,3,4 Y SML Y 0-15% Y Y

8 1-49 MANUF Much Somewhat N/A 2+ Y SML SML NONE 1,2,3,4, N NO Y 0-15% Y Y

9 50-299 MANUF Much Much N/A 0-1 N N/A MOD $3 – $4K 2 U N/A Y 0-15% Y Y

10 300+ Other Somewhat Much Yes 4+ N N/A SML NONE 2,3,4, N NO N N/A Y Y

IMPACT AND SUSTAINABILITY STUDY

18 About the Same Somewhat Higher Much Higher N/A

Q2: How would you describe things like attitude, confidence, trainability and motivation of certified employees compared to non-certified employees?

About the Same Somewhat Higher Much Higher N/A

Q3: Do you feel that you would be willing to pay an incentive (e.g., hourly pay increase, bonus,) to certified employees, either entry-level or incumbent?

YES (both) YES (incumbent only) N/A Q4: How many new positions will your company add in the next year?

0 to 1 2 to 3 4 to 5 More than 5

Q5: Have you experience reduced turnover with certified workers compared to non-certified?

YES NO

If so, how much?

Substantial Reduction Moderate Reduction Small Reduction

Q6: Is there a measurable reduction in the remedial training time for the certified employee compare to the non-certified employee?

Substantial Reduction Moderate Reduction Small Reduction Q7: What amount of cost savings do you realize through this reduced turnover for a given employee?

None $1,000 to $ 2,000 $ 3,000 to $ 4,000 Above $ 5,000

Q8: What do you perceive to be the value of training? (You may choose more than one entry) 1. Enable individual to secure a CLA or CLT credential

2. Enhance worker skills and knowledge to better perform job tasks 3. Motivate the worker to perform better

4. Motivate the worker’s commitment to continuous learning, improvement and career advancement

Q9: Does having a pipeline of certified workers reduce the screening process when hiring?

YES NO Don’t Know

Q10: Financially, how much savings is that for your company per employee?

1. Large reduction in recruitment costs 2. Moderate reduction in recruitment costs 3. Small reduction in recruitment costs

IMPACT AND SUSTAINABILITY STUDY

19 Q11: Have any of the certified workers been promoted?

YES NO

If so, how many as a percentage of front-line workforce?

0 to 15% 15 to 30% 30 to 50% Over 50% Q12: Do you feel the certified worker has more potential for advancement?

YES NO

Q13: In your opinion, are certified workers more productive compared to non-certified workers?

YES NO

CLT SUSTAINBILITY GRAPHS

Overall, how would you describe the performance of CLA and/or CLT certified workers vs. non-certified workers doing similar work?

Somewhat Higher 63.6%

Much Higher 36.7%

How would you describe things like attitude, confidence, trainability and motivation of certified workers compared to non-certified workers?

Same 9.1%

Somewhat Higher 45.5%

Much Higher 45.5%

How many new positions will your company add in the next year?

0 to 1 27.3%

2 to 3 9.1%

4 to 5 9.1%

More than 5 54.5%

Have you experienced reduced turnover with the certified workers compared to non-certified workers? Substantial reduction 18.2% Moderate reduction 18.2% Small reduction 9.1% No reduction 54.5% Is there a measurable reduction in the remedial training time for the certified employee compared to the non-certified employee? Substantial reduction 18.2% Moderate reduction 45.5%

Small reduction 36.7%

What amount of cost savings do you realize through this reduced turnover for a given employee? None 40% $1,000 to $2,000 20% $3,000 to $4,000 30% Above $5,000 10% 63.7% 36.3 % 9.0% 45.5 % 45.5 % 18.2 % 18.2 % 9.1% 54.5 % 18.… 45.5% 36.4% 40% 20% 30% 10% 27.3% 9.1% 9.1% 54.5 %

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Does having a pipeline of certified workers reduce the screening process when hiring?

Yes 40%

No 20%

Do not know 40%

Financially, how much savings is that for your company per employee?

Large reduction 30%

Moderate reduction 20%

Small reduction 20%

Very little reduction 30% Have any of the certified

workers been promoted? If so, how many as a percentage of front-line workers?

0 to 15% 78%

15 to 30% 11%

30 to 50% 11%

Do you feel the certified worker has more potential for advancement?

Yes 90%

No 10%

In your opinion, are certified workers more productive compared to non-certified workers?

Yes 73%

No 27%

What do you perceive to be the value of training? You may choose more than one entry.

Enhance worker skills and knowledge to perform job tasks 100%

Motivate the worker to perform better 81.8%

Motivate the worker’s commitment to continuous learning, improvement, and career advancement 81.8%

Enable individual to secure a CLA or CLT credential. 45.5%

40% 20% 40% 30% 20% 20% 30% 78% 11% 11% 0% 50% 100% Yes No 0% 50% 100% Yes No 0% 20% 40% 60% 80% 100% 120%

Enhance worker skills and knowledge to better

perform job tasks

Motivate the worker to perform better

Motivate the worker’s commitment to continuous learning, improvement and career advancement Enable individual to secure a CLA or CLT credential

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Appendix 2 – Credentialing Programs

Certified Production Technician (CPTAE)

This program is for front-line manufacturing and includes five assessments: Safety; Quality & Measurement; Manufacturing Processes and Production; Maintenance Awareness; and Green Production. Individuals earn one certificate for each assessment passed and those who earn the first four certificates (not including Green) will receive a full-CPTAE certification. This certification addresses the core technical competencies of higher skilled production workers in all sectors of manufacturing. Following accreditation by the American National Standards Institute in December 2011, under ISO Standard 17024, the MSSC initiated a new CPT with an “AE” designation which stands for “ANSI Edition.”

SAFETY QUALITY PRACTICES & MEASUREMENT

1. Work in a Safe and Productive Manufacturing Workplace 2. Perform safety and environmental inspections

3. Perform emergency drills and participate in emergency teams

4. Identify unsafe conditions and take corrective action 5. Provide safety orientation for all employees

6. Train personnel to use equipment safely

7. Suggest processes and procedures that support safety of work environment

8. Fulfill safety and health requirements for maintenance, installation, and repair

9. Monitor safe equipment and operator performance

10. Utilize effective, safety-enhancing workplace practices

1. Participate in periodic internal quality audit activities 2. Check calibration of gages and other data collection

equipment

3. Suggest continuous improvements

4. Inspect materials and product/process at all stages to ensure they meet specifications

5. Document the results of quality tests 6. Communicate quality problems.

7. Take corrective actions to restore or maintain quality 8. Record process outcomes and trends

9. Identify fundamentals of blueprint reading

10. Use common measurement systems and precision measurement tools

MANUFACTURING PROCESSES & PRODUCTION MAINTENANCE AWARENESS

1. Identify customer needs

2. Determine resources available for the production process

3. Set up equipment for the production process 4. Set team production goals

5. Make job assignments

6. Coordinate work flow with team members and other work groups

7. Communicate production and material requirements and product specifications

8. Perform and monitor the process to make the product 9. Document product and process compliance with

customer requirements

10. Prepare final product for shipping or distribution

1. Perform preventive maintenance and routine repair 2. Monitor indicators to ensure correct operations 3. Perform all housekeeping to maintain production

schedule

4. Recognize potential maintenance issues with basic production systems, including knowledge of when to inform maintenance personnel about problems with:

o Electrical systems o Pneumatic systems o Hydraulic systems

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Certified Logistics Technician (CLTAE)

This program is for front-line material handling and includes two assessments: foundational level Certified Logistics Associate (CLA) and mid-level technical Certified Logistics Technician (CLT). CLA is a prerequisite for CLT. This certification program addresses the core technical competencies of higher skilled, front-line material handling and distribution workers in all supply chain facilities: from factories to warehouses, distribution centers and transporters. Following accreditation by the American National Standards Institute in December 2011, under ISO Standard 17024, the MSSC initiated a new CLT with an “AE” designation which stands for “ANSI Edition.”

Through this certification individuals demonstrate the mastery of the core competencies of material handling at the front-line (entry-level through front-line supervisor). The goal of the CLTAE certification program is to raise the level of performance of logistics workers both to assist the individuals in finding higher-wage jobs and to help employers ensure their workforce increases the company’s productivity and competitiveness.

CERTIFIED LOGISTICS ASSOCIATE (CLA) CERTIFIED LOGISTICS TECHNICIAN (CLT)

1. Global supply chain logistics life cycle 2. Logistics environment

3. Material handling equipment 4. Safety principles

5. Safe material handling and equipment operation 6. Quality control principles

7. Workplace communications

8. Teamwork and workplace behavior to solve problems

9. Using computers

1. Product receiving 2. Product storage 3. Order processing 4. Packaging and shipment 5. Inventory control

6. Safe handling of hazmat materials 7. Evaluation of transportation modes 8. Dispatch and tracking

9. Measurements and metric conversions

CERTIFICATES & PORTABILITY

Portability by providing certificates, patches, online look up for employer verification and online renewal. Individuals who pass the CLA assessment receive:

 Certificate

 Small CLA Arm Patch

 Key Work Activities document to share with employers

 Full Certification

For individuals who pass both CLA and CLT assessments receive:

 Diploma-style full certification document

 Certification document bears the CLT logo, NAM logo (NAM-endorsed Skills Certification) and ANSI logo with ISO 17024 reference

 Large CLT Arm Patch

 Wallet Card

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Appendix 3 – CBJT Performance Metrics

Unique Certificate Earners

TRAINING PROVIDER TOTAL

Collin College 82

Houston Community College 255

Lone Star College 24

Navarro College 96

Tarrant Community College 765

TOTAL 1222

As of 01/06/2014

Certificate Issued by Training Partner

Training Provider Incumbent Count

Collin College 34

Collin College X 42

Houston Community College 80

Houston Community College X 133

Lone Star College 6

Lone Star College X 15

Navarro College 25

Navarro College X 58

Tarrant Community College 380

Tarrant Community College X 243

Additional Certificates Earned

Certified Logistics Associate (CLA) 928

Certified Logistics Technician (CLT) 635

Forklift (FL) 478

Occupational Safety and Health Training (OSHA) 326

Cardiopulmonary resuscitation (CPR) 260

Cell Phone Soldering (CS) 139