TRAINING – THE KEY TO SUCCESS AT THE ROBERT M. BEAM POWER PLANT AT
WESTERN MICHIGAN UNIVERSITY
George H. Jarvis, P.E.
Western Michigan University
George H. Jarvis, P.E.
Director, Robert M. Beam Power Plant
Western Michigan University
1903 West Michigan Avenue
Kalamazoo, MI 49008-5349
Office: 269-387-8548
Cell: 269-207-2750
Email: george.jarvis@wmich.edu
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ABSTRACT
A seemingly insurmountable and vexing question confronted Western Michigan University in
1994 when it inherited an ageing, increasingly unreliable, coal-fired, problem ridden power
plant from the Kalamazoo State Psychiatric Hospital: Could it adopt an existing unionized
workforce to new equipment, systems and management and ultimately succeed in having them
become an efficient, reliable provider of energy to the university?
At the time Western was purchasing over 90% of the total energy output of this plant which
was owned and operated by the Kalamazoo Psychiatric Hospital through the State of Michigan,
for its steam and electrical needs to over 100 buildings, programs and needs on campus, yet
had no say in how it was being operated, managed or supported. Western was in effect
dependent for its energy needs upon a facility that had become increasingly unreliable due to
its outdated equipment, inadequate maintenance and in some cases capacity. In return for
providing a capital influx of over $20 million in new infrastructure and equipment, Western
agreed to take over ownership and operation of this facility to better secure its energy needs
and advance its educational goals.
When the power plant officially transferred to Western in November, 1994, steps immediately
began on the process of converting it to a modern, gas-fired cogeneration facility and transition
away from its roots and long history since the 1920’s as a coal-fired facility. As part of the
transfer agreement, Western agreed to accept all of the existing power plant staff that at the
time totaled 27 in number. Overcoming this hurdle of transitioning a rigid, unionized work
force to new equipment and management was a major undertaking. This was not without its
pain and challenges, but in the end proved to be a major success that has exceeded all
expectations and has validated the concept that through cooperation, trust and training, great
things can be accomplished. Plant staff was reduced by over 40% (from 27 to 15 employees)
through a combination of various initiatives with the primary emphasis on training. With fewer
employees and more sophisticated equipment and instrumentation, cross-training became a
necessity. Maintenance and operating personnel were for the first time cross-trained based on
the establishment of over two hundred plant specific job performance measures where they
now had to demonstrate to a subject matter expert an acceptable skill level in all aspects of
plant operation from water testing to switchgear operation in order to maintain employment
and eligibility for advancement. This was followed by the implementation of a federally
recognized, U.S. Department of Labor, apprenticeship training program that became a
condition of employment. As a result, employees have been able to increase their skill levels to
the point where the plant is virtually self-sustaining in its project and work needs dramatically
minimizing the need and expense of utilizing outside contractors. Hundreds of thousands of
dollars have been saved in the process in addition to the incalculable value of having a
motivated work force with a pride of ownership in the operation and maintenance of the
power plant that sets it apart from every other power plant operation in the country.
This is the story of how this was accomplished and how this approach might be successfully
applied in other workplaces.
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INTRODUCTION TO THE ORGANIZATION
Western Michigan University is a dynamic, student-centered university with an enrollment of
over 25,000. WMU offers 140 undergraduate programs, and graduate students select from 67
masters, 1 specialist and 29 doctoral programs. Also enriching campus life are nearly 300
registered student organizations and NCAA Division 1A intercollegiate athletic teams.
Founded in 1903, WMU rapidly grew from a regional teachers college to an internationally
regarded institution of higher education. What was once Western Michigan College became
Western Michigan University in 1957, when the state designated it as the fourth public
university in the State of Michigan. WMU’s campuses now encompass more than 1200 acres
and 151 buildings. The main campus, located in Kalamazoo, Michigan can house 5,500
students, includes a large student recreation center and state-of-the-art facilities for business,
chemistry, science research, health and human services, and the visual and performing arts.
The University’s engineering college and Business Technology and Research Park are based four
miles away at the Parkview Campus, while its nationally recognized aviation college is based at
the W.K. Kellogg Airport in Battle Creek, Michigan. Both the aviation campus and BTR Park are
components of Michigan economic development SmartZones.
WMU is currently Michigan’s fourth largest higher education institution, attracting a diverse
and culturally rich student body from across the United States and some 90 other countries. Its
nearly 900 full-time faculty members have been trained at some of the world’s finest
institutions and they bring to the University a global perspective that enhances the learning
environment.
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The University’s commitment to the discovery and dissemination of new knowledge and insight
has resulted in initiatives that reward faculty and student research, scholarship and creative
activity. In a typical year, WMU faculty and staff conduct $30 million to $40 million in externally
funded research on topics ranging from nuclear physics and specialized education to flight
safety and clean energy.
The Robert M. Beam Power Plant at Western Michigan University currently provides the steam
and electricity to its educational and housing facilities on campus through a network of over 15
miles of steam supply and condensate return lines. In addition, it both generates and provides
electricity at 13,800 volts for distribution to nearly all of the campus buildings.
STATEMENT (RESTATEMENT) OF THE PROBLEM/INTIATIVE
In November 1994, responsibility and operation of this ageing coal fired facility officially
transferred to Western Michigan University. The first order of business was to restore safety,
reliability and efficiency. Towards this end over $21 million was invested to install a modern,
high-efficiency cogeneration system comprised of gas combustion turbines coupled with heat
recovery boilers. To further improve reliability and efficiency, other new systems installed
included high-voltage switchgear, water treatment and emergency black-start generation.
However, even with all this modern, new equipment and systems, it was realized that a
competent, professional work-force would be needed to safely operate and maintain them at
their peak efficiency. Unlike being able to go out and purchase this new equipment, Western
could not go out and arrange for new staff but was committed to working with an existing
bargaining unit that previously operated only coal fired equipment and systems. Now this same
work group was going to be asked to operate “jet engines”. Not only was this existing
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workforce acculturated to a coal operation dating back to the 1920’s, it was now going to have
to adopt to totally new energy generating systems and controls as well as a new management
and its new culture. This represented an extraordinary challenge for both parties. On top of all
this, this work group was being asked to do this while simultaneously maintaining steam and
electric service to the university and hospital with the old, unreliable equipment while
construction for the new equipment was going on literally all around them. To illustrate the
magnitude of this challenge, one day in winter during construction while an exterior wall was
open to the outdoors, an existing boiler froze up (yes, a boiler can freeze up!). This probably
symbolized, more than anything, the extraordinary challenges faced by this work group.
In retrospect, it is probably fair to say it was too much to ask as some employees just could not
make the adjustment. From the university’s perspective, there was too much at stake in their
need for a reliable source of energy not to have a skilled, motivated workforce in place that
could provide it. As a result, in 1999, Western proceeded to seek proposals from outside firms
to operate the power plant, or in other words, to privatize it. This turned out to be a major
turning point as the union was also allowed to submit their own proposal for consideration
alongside the other two being considered. Fortunately, the proposal from the Michigan State
Employees Association (MSEA) bargaining unit was ultimately adopted and a new contract
implemented in 2000 that incorporated a number of significant changes.
DESIGN
In a groundbreaking contractual agreement, the MSEA bargaining unit agreed to reduce their
overall number to 15 to match the lowest employee count of the other two proposals being
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considered. This was to be accomplished through the early retirement of several senior
employees, but primarily through the establishment of a formal, cross-training program for
maintenance and operations personnel that heretofore had been separate and distinct. In
addition, the contract provided for the establishment of an employer funded, professional
training program that later evolved into the U.S. Department of Labor certified program in
place today. In a major, new development, job progression was no longer based on seniority,
but on achievement and competence - a remarkable shift. The overriding philosophy was that
with fewer employees the skill level had to be higher.
The increase in skill level and training begins for all plant staff with securing at least a Class IV
boiler operating license through the National Institute for the Uniform Licensing of Power
Engineers (NIULPE) as a condition of employment. In addition, all power plant staff has to
complete a set of “Operator Performance Measures”. These consist of over 60 site-specific,
equipment-specific, knowledge-based requirements that the employee is required to not only
understand but to demonstrate competence in as well. These cover the entire spectrum of
power plant operations ranging from boiler and turbine startup and shutdown, to water testing
and high-voltage switchgear operation. As all staff is required to be cross-trained in both
maintenance and operations, the next phase of training involves a set of over 50 “General
Maintenance” performance measures ranging from identifying steam traps to driving a fork
truck. These, in turn, are followed by over 70 “Advanced Maintenance” performance measures
requiring a higher level of skill and knowledge. These range from boiler sight glass repair,
bearing isolator installation and gas turbine oil filter change out. Only after successfully
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demonstrating competence in nearly 200 performance measures is the employee eligible to
begin formal training in the apprenticeship program.
This over 9000 hour program is officially registered with the United States Department of Labor
for a Power Plant Utility Specialist – either Power House Electrician or Power House Mechanic.
Apprentices are either electrical or mechanical based on plant needs. This program consists of
8000 hours of on-the-job (OTJ) training in conjunction with approximately 1200 hours of formal
classroom training conducted at the Kellogg Regional Manufacturing & Technology Center
(RMTC) located in Battle Creek. This is an “open enrollment” program where the student takes
and completes classes at a pace that meets the requirements of the program. The apprentice is
typically assigned a specific day of the week to attend classes at RMTC as part of his regular
work schedule. The OJT portion of the work requires a certain number of hours be completed
in various areas such as health and safety, electrical installation and maintenance, rigging, pipe
and conduit installation, etc. Successful completion of this program is a condition of
employment with interim pay adjustments awarded the employee at the halfway and finish
points of the program. Advanced training and corresponding pay adjustments is also available
for the journeyperson Electrician or Mechanic.
IMPLEMENTATION
This new training program was initially implemented with the year 2000 contractual bargaining
unit agreement and has been extended and modified since that time. The training program is
continually managed and administered through a joint labor-management committee that
meets on a weekly basis. This key group is dedicated to the overall success of the program and
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works together to review all aspects of the program such as training, work schedules and any
opportunities for improvement. Meeting minutes from this group are recorded, later reviewed
and subsequently posted and electronically shared with all of the power plant staff. Being a
24/7/365 operation with a limited staff of 15, scheduling is a critical function of this group to
insure training is scheduled appropriately without creating any undue burdens on plant staff
and work of the unit. Schooling, on-the-job training days and various required safety and
health training are examples of continuing, scheduling requirements.
Apprentices in the program currently have their performance evaluated on a 6 month time
interval by the Training Committee or more often if the situation warrants it. Apprentices, in
turn, are required to evaluate the training they receive from their journeyperson assigning the
work in terms of its relevance and whether appropriate instruction and feedback was offered.
The Training Committee is dedicated to the success of the apprentice and continually strives to
achieve feedback to improve the program and the educational experience for the apprentice.
BENEFITS
The benefits of this training program have exceeded all expectations and continue to yield new
and positive results. Shortly after the start of the program in 2003, the power plant staff was
presented with the opportunity, which it quickly took, to assume operational responsibility for
the new Energy Resource Center (ERC) at Business & Technology Research Park that provides
steam and chilled water to the College of Engineering and the Paper Pilot Plant. It did this with
no increase in staff. Power plant staff later partnered with local contractors on the installation
of new Boiler 9 in 2004 with over $100,000 of documented savings through self-performing a
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number of items such as small bore piping and electrical conduit installation. All electrical
terminations on this project were self-performed by plant staff under the direction of an
electrical contractor. This was followed in 2006 by the joint partnering installation of a new 400
horsepower fire tube boiler at the ERC.
A major highlight of the training program was the installation of a new 65,000 pound/hour
water tube boiler in October 2009. In what was a first that we are aware of, the actual bid
specifications issued for public bid formally documented a partnering arrangement between
WMU power plant staff and those mechanical contractors bidding on the job (the electrical
work was totally 100% self-performed by WMU power plant staff). The specifications defined
those particular items that WMU power plant staff would be self-performing and those the
mechanical contractor would be performing. The mechanical contractor had to submit two
prices for the job – one for them performing the entire job and the other based on those
particular items specified for them. The documented mechanical and electrical savings from
this partnering approach for this project amounted to over $400,000 which was later used to
fund the installation of another fire tube boiler at the Energy Resource Center. Mention should
be made of how smooth the startups went on all of our boiler installations with boilers literally
being up and running in continuous operation after 1-2 days! The benefit of this cannot be
overestimated. An important lesson we learned is the value of having the individuals who have
to maintain and operate the boilers actually perform the installation – it is truly invaluable as
well as a great opportunity for training and learning.
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An unforeseen benefit of the program was the tremendous reduction in overtime due to
unscheduled sick leave usage. Though the employees were initially skeptical of the new
changes, with the commitment from management to training, a trust slowly developed that
over time resulted in increased employee morale and responsibility which, in turn, translated
into over a 60% reduction in overtime usage in the plant. Plant staff is now eager to do the
work of the unit and take on new challenges due to the apprenticeship program.
No longer limited to only problems involving nails because the only tool in their belt is a
hammer, plant employees are able to tackle virtually any power plant issue due to their greatly
increased skill set and motivation. Numerous examples abound of their work throughout the
plant ranging from variable frequency drive installations to installations of major boilers and
controls resulting in documented savings in the hundreds of thousands of dollars to the
university.
Yes, the training program has indeed been successful, but also cost effective. Annual training
costs for an apprentice are approximately $3000 for tuition and travel and it typically takes an
individual apprentice about five years to complete the classroom training part of the program.
Even when adding in the two separate one dollar an hour raises to base the employee receives
for successfully advancing through the program to completion, the cost benefit is clear with the
documented savings for partnering and contractor cost avoidance now approaching a million
dollars. Beyond the cost benefits, there are many intangible benefits that cannot be measured
such as pride in workmanship and ownership, increased employee morale, enthusiasm and
initiative that are nonetheless real and equally, if not more, beneficial.
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RETROSPECT
An important aspect in a major training program of this magnitude is the understanding that it
involves a sincere, dedicated long-term commitment to be successful. Western did not achieve
these amazing results overnight and we have been invested in this effort for over ten years
now. One also has to realize that results may not be immediate and may take several years to
materialize as employees begin to complete the training and skill levels increase. The payback,
though not immediate, will be there and continue to grow over time. The program has been a
work in process and certainly a number of things have been learned and improved along the
way. For example, the need to better instill in the apprentice how dedicated and focused we
are on his success and encouraging him to take a more ownership/active role in his training is
important and now a more formal part of the program.
Though similar in nature, each installation and operation is different to some degree and it is
understood that while specific actions may have worked at Western, these may not translate
into success at other locations or operations. While employees at other institutions may not
have to perform water tests or start up a boiler, they are likely performing job functions that
could be identified and defined in the form of a job performance measure. These, in turn,
could be further broken down into specific skill sets that could be utilized to demonstrate
competence for that particular job. Management and labor together identify a number of
these to achieve the desired outcome; accountabilities and incentives are attached and a
training program based on demonstrated skills and expectations is on its way to becoming a
reality. Yes, it can be daunting, but the results worthwhile. The value of a joint labor-
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management developed training program, at least here in the Robert M. Beam Power Plant,
has become a fundamental concept that at its core believes in the innate ability of the
individual to learn, change and adapt – skills much needed these days. It continues to prove
itself in new and amazing ways and is a program, or perhaps concept, which could be
successfully duplicated elsewhere.
Recent WMU Power Plant Apprenticeship Program Graduates
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Examples of WMU Power Plant Employee/Contractor Partnering Savings
Project
Savings
Boiler #9 Installation
$
100,000.00
Boiler #10 Installation
$
400,000.00
Demo #5 Feed Pump Safety Valve and Re-Install
$
7,000.00
Install New Magnetic Flow Meters w/spools
$
10,000.00
Back Up City water Line Installation
$
30,000.00
#6 Boiler Feed Pump Drive Installation
$
10,000.00
Safety Valve Installation
$
25,000.00
Fuel Oil Pump/Containment System
$
15,000.00
Demo #7, & #8 Blow-down Piping and Install New
$
18,000.00
Boiler #5 Demolition
$
70,000.00
Boiler #4 Installation
$
35,000.00
Install New Boiler Blow Down Piping-ERC
$
10,000.00
Card Swipe System Installation
$
20,000.00
ERC Boiler #3 Burner Replacement
$
20,000.00
Remove and Replace Water Softener Nest Piping
$
13,000.00
Relocate Steam Turbine Generator Safety Valve
$
11,000.00
Construct Platform at ERC per C&B Plans and Specs.
$
10,000.00
Install New Handrails and Toe-kicks for #10 Boiler
$
28,000.00
ERC Steam Shutdown work (May 2011)
$
15,000.00
Total Savings By Self Performance
$
847,000.00
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