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IMPACT AND SUSTAINABILITY STUDY 1

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IMPACT AND SUSTAINABILITY STUDY

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IMPACT AND SUSTAINABILITY STUDY

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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

IMPACT AND SUSTAINABILITY STUDY

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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

Cell Phone Repair (CR) 156

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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 Employment

90% 92.7%

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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

Top 10 States

1. Indiana 2. Ohio 3. Florida 4. Wisconsin 5. Texas 6. South Carolina 7. California 8. North Carolina 9. Illinois 10. Colorado

Infrastructure

Over 1,000 instructors trained Over 530 assessment centers 40 states 61,000+ assessments delivered 48,000+ credentials issued

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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

Workforce Solutions Northeast Texas, Sulphur Springs

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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

IMPACT AND SUSTAINABILITY STUDY

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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

3951570

4479

7938

10927

330

13093533

6012

8122

0

2000

4000

6000

8000

10000

12000

2009 2010 2011 2012 2013

CLT Assessments and Credentials Growth 2009-2013

Assessed Credentials Issued

IMPACT AND SUSTAINABILITY STUDY

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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

Training Program Manager, Technology Solutions for GENCO

IMPACT AND SUSTAINABILITY STUDY

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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.

IMPACT AND SUSTAINABILITY STUDY

17

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

EMP Company size

Facility Type

Q 1

Q 2

Q 3

Q 4

Q5

Q 6

Q 7

Q 8

Q9

Q 10

Q11

Q12

Q13

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

11 300+ DC Somewhat Much N/A 5+ Y MOD MOD $3 – $4K 1,2,3,4 U MOD Y 0-15% Y Y

IMPACT AND SUSTAINABILITY STUDY

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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

4. No identifiable reduction in recruitment costs

IMPACT AND SUSTAINABILITY STUDY

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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%

IMPACT AND SUSTAINABILITY STUDY

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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 skillsand knowledge to better

perform job tasks

Motivate the worker toperform better

Motivate the worker’s commitment to

continuous learning, improvement and

career advancement

Enable individual tosecure a CLA or CLT

credential

IMPACT AND SUSTAINABILITY STUDY

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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

o Machine automation systems

IMPACT AND SUSTAINABILITY STUDY

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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

Key Work Activities document to share with employers

IMPACT AND SUSTAINABILITY STUDY

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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

Cell Phone Repair (CR) 156