A FINANCIAL JUSTIFICATION FOR TRAINING
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Cement plant managers often ask about the specific payback for training investments. In fact, some of the most frequently asked questions are: Is it really worth spending money on training? How does a cement plant justify the cost of training? How long does it take to realize any savings?
Everybody knows there are obvious benefits to any plant organization due to training, yet far too often it is the very training that suffers most, through deferment in difficult times or indefinite postponement because of cutbacks. But isn't this false economy, especially when you really want to maximize economy?
Any trainer will tell you that an investment in training is an investment in the people, which is bound to translate eventually to some benefit to the plant. However, the contention is that the benefits from training are as misunderstood as some of the process elements that exist in many plants, and that the benefits and consequential payback start immediately. Sometimes, they even follow exponential proportions.
Obviously, every cement plant has differences that can vary widely from the wet, long dry, semi-dry, SP kilns, and precalciner kiln processes. Also the equipment within a certain process can vary. This means that the potential payback for the justification of training also can vary from one plant to another, depending of the process, equipment, raw materials and fuels utilized, plant capacity, and plant location.
In the following points of discussion, the minimum expected returns are stated. In reality, the payback on the training cost investment is less than one month in 90% of the cases stated. As with any justification, numbers and arguments can be slanted towards the desired result, therefore only moderate findings are presented. In all cases, these were exceeded in my experiences. Individual plants can compute their own justifications for each of the criteria presented.
To illustrate this, various cement plants worldwide were reviewed and broken down into the following categories, with their respective proportion of the total reviewed plants shown as a percentage:
* Cement plants with little or no formal training (38.5%).
* Cement plants with some level of intermediate training (38.5%).
* Cement plants with concise theoretical and practical training (23%).
Ten general criteria were assessed and evaluated after the training, and results are shown as a percentage improvement. No negative or deterioration is considered due to training. These criteria also are weighed accordingly as a percentage of what is felt by the plant's average to be the overall target improvement for each of the categories in plants A, B, and C.
Each plant, of course, has its own priority criteria, and these will be discussed in detail later. Also, some plants have had various levels of training at different time intervals. In such cases, each is counted as a plant review.
Assessed improvement criteria after training
1 Knowledge of plant process and equipment--A thorough knowledge of the process and equipment is essential for optimization purposes in any plant. A lack of understanding about function and the importance of adhering to acceptable limitations often leads to unnecessary breakdowns. It is fundamental that personnel know the process inside out and understand why things are designed in certain ways in order to maximize capability.
2 Attitude of plant personnel (staff and hourly personnel)--A general level of self-esteem is evident in personnel during and after training programs. Even those who do not necessarily strive for knowledge are caught up in the quest for new information. A feeling of value to the organization ensues, and the general attitude of personnel is enhanced because of it.
3 Efficiency awareness--The difference between a casual kiln operator who basically knows how to operate and one who is fully conversant in methods to maximize efficiency can be enormous for any plant. Proper training can bring an awareness, for example, in the value of optimizing free lime levels by understanding the chemical and physical characteristics of the operation. An awareness in the methods of maximizing heat recovery and reducing losses are essential for any operation.
4 Plant run time availability--The key to sustained plant profits is to achieve plant run times and availability consistent with the targets of production demand. Better training improves plant availability by preparing personnel to deal with everyday operational demands properly and secure the operation through preventive maintenance and proper planning. Monitoring production areas for wear and deterioration is just one of the key elements in sustaining availability. Proper recording of these elements ensures rapid rectification during scheduled shutdowns and reduces the number of unprepared shutdowns.
5 Quality of product--Some will argue that it is not necessary for operators to be fully conversant with quality control targets. However, think of the value of a chemically trained operator who is able to intelligently offer advice to the lab based on operational constraints. Such an operator may even be able to take the necessary weighfeeder adjustments to obtain desired quality. Even though some plants take this action out of the operator's control, surely the value of an operator understanding these elements is key for the quality of product to be sustained at all levels of plant production.
6 Plant cleanliness--Training alone will not make a cleaner plant, but the habits and motivation gained from training may ensure that less spillage and dust are expelled. This applies to dust at transfer points and elevator boots, preheater cyclones, clinker conveying systems, dust collectors, and within finish mills, where dust has enformed a deep gray layer ever since operations began. Plant cleanliness starts through the education of how to contain the dust. A company must train plant personnel to conserve this valuable material and clean up the plant at the same time.
7 Plant productivity--With efficiency awareness comes the capability to maximize production. In addition to the increased run time discussed earlier, extra capacity can be realized with proper attention to specific plant elements. This goes for the efficient processing of raw materials, fuels, and chemically enhancing the operation. Through training, a higher level of production is obtained by combining all the criteria into an improved working mechanism.
8 Flexibility to perform other tasks and understand other departments--Training promotes understanding between departments. By exposing production, maintenance, and quality control personnel to each others' difficult tasks, an overall better appreciation among all is realized. Also, this exposure is ideal in the implementation of multi-skilling, which saves overtime cost and long work hours while adding to the flexibility of the plant.
9 Motivation and enhancement capability from present position--Training is bound to impart some new knowledge on participants. The way this training is retained and adapted has an impact on motivation. Training is really a foundation for self-building from inspiration, from which comes motivation. In other words, training provides the spark for all employees to improve and strive for betterment in the plant and in themselves.
10 Troubleshooting and checking abilities--With a complete knowledge of plant equipment, various practical checking procedures can be implemented, both when the plant is in operation and during shutdown situations. These times are invaluable for the early recognition of potential problems. When possible problems are located before the ensuing failure, steps can be taken to counteract their detrimental effects to the operation.
Training justification In reality, the benefits from training are both short- and long-term in nature. For example, if the number of shutdowns alone can be decreased, this can make an enormous difference in fuel efficiency. The other benefits due to increased motivation and improved attitude of the plant personnel also are extremely valuable to any organization. In addition, improvements in checking procedures and the consequential effect on plant run time can be significant. However, for the purpose of calculation only, two criteria from the assessed 10 are considered here as having any financial payback due to training: plant run time and availability improvement, and plant production improvement. Furthermore, so as not to overindulge, we shall assume that attributable benefits due to training are only 25% of those stated in the average shown. This means that the maximum benefit considered from training are only 2.5% for these two criteria. For the variation in plant processes, two processes have been considered and an average world clinker price of $35 per ton is used:
Plant A (see previous page). Wet kiln plant of 1,500 tpd, with average of 290 days per year operating time and SHC of 1,600 Kcal/kg clk.
Plant B (see below). Dry kiln p/c plant of 3,000 tpd, with average of 315 days per year of run time and SHC of 800 Kcal/kg clk.
Conclusion From these results, it can be seen that the more modern, higher-capacity plant stands to have a greater return on investment due to training. However, even the older, lower-capacity plants can gain enormously from training with short payback periods, even with relatively low clinker prices. Furthermore, these justifications do not include several additional benefits to an operation.
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