The Making of a UPS Driver ® – Innovations in Driver Training g g UPS Integrad Alexi Carli – UPS Corporate Health & Safety May 13, 2009 Agenda •Company Stats / Structure •Why UPS Integrad® •Training g facility y highlights g g •Results 2 Founded in 1907 E l Employees – 464,000 464 000 Vehicles – 107,000 Planes – 570 – 9th largest g airline Facilities – 1750 operations 2900 overall Countries Served – 200+ Daily Delivery Volume – 15.5 mil Freight LTL Shipments – 10 mil F i ht LTL W Freight Weight i ht – 11 bil lb lbs. 2008 Revenue – $51.8 billion UPS moves 7% of US GDP * Note – 2008 data 3 UPS Services Overview Supply Chain Design and Planning • Site Sit Analysis A l i and Selection • Supply Chain Modeling and Network Optimization • Warehouse Design g • Supply Chain Reengineering Transportation and Freight Services • Air Ai • Ocean • Rail/Intermodal • Road (LTL) • Small Package Domestic and International F i ht • Freight Forwarding • Transportation Management Logistics and Distribution Services • Order Od Fulfillment • Critical Order Fulfillment • Reverse Logistics • Parts Planning • Return and Repair International Trade Management • Trade T d Consulting • Customs Brokerage Specialized Services • Financial Services • Mail Services • Retail Access, The UPS Store® • Technology Services • UPS Consulting 4 • Air Freight • Same-Day, Same Day Premium Premium, Preferred Preferred, Economy • Ocean Freight • Premium, Standard, S G Groupage, Container C Yard Management, Sea-Air • Rail Freight g • Rail, Intermodal • Road Freight g • Truckload, Less-than-Truckload (LTL), Courier, Dedicated Contract Carriage 5 Supply y Chain Solutions – Worldwide network of over 1000 f iliti iin 175 countries facilities ti More than 35 million square feet of warehouse space 6 Automotive & Industrial Manufacturing High Tech Healthcare Retail & Consumer Goods • Apparel • Vehicle Manufacturing • Automotive Parts • Computers and Peripherals • Industrial Manufacturing • Telecommunications • Industrial Electronics • Semiconductors • Oil and Gas • Aerospace • Pharmaceuticals • Medical Equipment • Biotechnology • MedSurg g Supplies pp • Footwear • Consumer Electronics • Toys • Sporting S ti G Goods d • Nutritional and Beauty • Animal Health 7 What’ss in a name ? What UPS Integrad : Integrated, enhanced hands-on learning using technology and information designed for candidate graduation and completion. l ti ® 8 Whyy UPS Integrad g ? ® • UPS ttrained i d more th than 7500 d drivers i annually ll • Higher than normal failure rates among Generation Y drivers • Lowering g standards was not an option p • Delivery training methods needed to change • Capitalize on advances in technology 9 Employment p y Constraints • Poor selection criteria of available drivers with little to no experience driving • Little to no experience driving vehicles with manual transmissions • Little to no experience driving large vehicles • Difficulty learning the DIAD • “Try it to see if I like it” attitude – (internal promotions and external hires) 10 Changes in job complexity 8 340 Methods S&V SWM's 2DA 1DA COD's Call Tags Writing Year 1990 DIAD II DIAD II 340 Methods S&V HABITS 2DA DIAD II 340 Methods 45 DIAD II, III & IV 340 Methods S&V HABITS 2DA 1DA COD's Call Tags Over-70's Consignee Billing Saturday Air Del. Confirmation DIAD II & III DIAD II & III DIAD II & III 340 Methods 340 Methods S&V HABITS 2DA 1DA 340 Methods S&V HABITS 2DA 1DA S&V HABITS 2DA 1DA COD's DIAD II & III 340 M Methods th d S&V DIAD II & III 340 M Methods th d S&V ARS E di t d Expediated Scanning DIAD II & III 340 Methods DIAD II & III 340 Methods S&V HABITS HABITS 2DA 1DA COD's HABITS 2DA 1DA COD's 3 Day Select Saturday PU EAM (8:30) Project LEAD S&V HABITS 2DA 1DA COD's 2DA 1DA COD's Call Tags Over-70's Call Tags Over-70's Consignee Billing Saturday Air Del. Confirmation Call Tags Over-70's Consignee Billing Saturday Air Del. Confirmation 2nd Day Air AM NDA Saver Express Plus RS1, RS3 EDD 340 Methods S&V 1DA COD's COD s COD's Call Tags COD s COD's Call Tags Call Tags Over-70's Call Tags Over-70's Consignee Billing Saturday Air ARS Expediated ARS Expediated PAS ISAT DIAD I & II 340 Methods S&V SWM's 2DA 1DA S&V SWM's 2DA 1DA COD's Call Tags HABITS 2DA 1DA COD's Call Tags Over-70's Call Tags Over-70's Consignee Billing Saturday Air Del. Confirmation ARS Over-70's Consignee Billing Saturday Air Del. Confirmation ARS Expediated Over-70's Consignee Billing Saturday Air Del. Confirmation ARS Expediated Consignee Billing Saturday Air Del. Confirmation ARS Expediated Scanning Consignee Billing Saturday Air Del. Confirmation ARS Expediated Scanning Del. Confirmation ARS Expediated Scanning 3 Day Select Saturday PU Scanning 3 Day Select Saturday PU EAM (8:30) Sales Lead 2nd Day Air AM Scanning 3 Day Select Saturday PU EAM (8:30) Project LEAD 2nd Day Air AM Contract Serv. HazMat Haz. Cont. Serv. Shipper Release Hundredweight Combined & Sched DIAD I DIAD I & II 340 Methods S&V SWM's 2DA 1DA DIAD I 340 Methods S&V SWM's 340 Methods S&V SWM's 2DA COD's Call Tags Consignee Billing Saturdayy Air COD's Call Tags Over-70's Consignee g Billing g Over-70's Consignee Billing Saturday Air Del. Confirmation Consignee Billing Saturday Air Del. Confirmation ARS Expediated Scanning 3 Day Select Saturdayy PU Scanning 3 Day Select Saturday PU EAM ((8:30)) Scanning 3 Day Select Saturday PU EAM ((8:30)) 3 Day Select Saturday PU EAM (8:30) Sales Lead 3 Day Select Saturday PU EAM (8:30) Sales Lead EAM (8:30) Sales Lead 2nd Day Air AM NDA Saver NDA Saver Express Plus RS1, RS3 EDD NDA Saver Express Plus RS1, RS3 EDD Williams Sonoma Delivery Windows Cust. vol. retention ASR-ID Check 2DA 1DA COD's Call Tags Saturday Air Del. Confirmation ARS Expediated 1DA COD's Call Tags Saturday Air Del. Confirmation ARS Expediated GroundTrac Del. Confirmation ARS Expediated GroundTrac Scanning 3 Day Select Saturday PU HazMat Saturday Air Del. Confirmation ARS Expediated Scanning 3 Day Select Saturday PU HazMat ARS Expediated Scanning 3 Day Select Saturday PU EAM (8:30) Sales Lead HazMat Expediated Scanning 3 Day Select Saturday PU EAM (8:30) Sales Lead HazMat Hundredweight EAM (8:30) Sales Lead 2nd Day Air AM NDA Saver Express Plus ISAT HazMat Hundredweight Sales Lead 2nd Day Air AM NDA Saver Express Plus ISAT Contract Serv. HazMat Hundredweight Sales Lead 2nd Day Air AM NDA Saver Express Plus ISAT Contract Serv. HazMat Hundredweight 2nd Day Air AM NDA Saver Express Plus ISAT Contract Serv. HazMat Haz. Cont. Serv. Hundredweight 2nd Day Air AM NDA Saver Express Plus ISAT Contract Serv. HazMat Haz. Cont. Serv. Hundredweight Express Plus RS1, RS3 ISAT Contract Serv. HazMat Haz. Cont. Serv. Shipper Release Hundredweight PAS ISAT Contract Serv. HazMat Haz. Cont. Serv. Shipper Release Hundredweight Footlocker PAS ISAT Contract Serv. HazMat Haz. Cont. Serv. Shipper Release Hundredweight Footlocker Security CPaD Spec. Cust. Req. Damage call tags P/U scanning Footlocker Drop boxes PSB 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 An expanded product and services portfolio, paired with increased technological skills requirements, has meant a more challenging decision-making environment for service providers Training was not keeping up with changes in the job 11 Other Constraints •Antiquated training process and structure •Curriculum inconsistent across the country •Lack of experience/qualification in instructors •Minimal DIAD use and exposure •Insufficient driving time •The optimum defined ratio of 1 trainer to 6 students not utilized 12 Results of These Constraints •Increase in the turnover of graduates •Trend worsening year over year •Depending on location – saw a variance in graduate turnover of 20% - 30% - to 50% •With the investment in training class and need to retain quality candidates to provide service – we needed to reverse this trend 13 History of Integrad Project UPS was awarded a 1.8 million dollar grant from the DOL. Grant objective was to develop an innovative training program for new UPS Driver Service Providers Providers. Determine the best practices in training the ‘Generation X and Y’ employees. Regional Learning Center concept developed in May 2006 as an outcome of the analysis phase of the project. p j Contracted with outside resources 14 G Generation ti Research R h UPS Study Mature Generation 1925-1945 USA Today 2004 Boom Generation 1946-1964 Gen X 1965-1980 Gen Y 1981-1995 Gen Z 1996Present Baby Boomers 1946-1964 Gen X 1965-1979 Gen Y 1980-1994 Gen Z 1995Present PostMillennials 1995Present Oblinger & Oblinger 2005 Matures <1946 Baby Boomers 1947-1964 Gen-Xers 1965-1980 -Gen-YNetGenMillennials -1981-1995 Martin & Tulgan, 2002 Silent Generation 1925-1942 Baby Boomers 1946-1960 Gen X 1965-1977 Millennials 1978-2000 15 Gen X and Y Driver Service Providers • 89% of driver workforce • Demand innovative training programs • Don’t D ’t enjoy j ttraditional diti l llecture-based t b d training • Computer C t lit literate t • Grew up playing video games • Desire competency- based learning • Want jjust-in-time training g 16 Generational Differences Chronology g the assumption p that because of Avoid making someone's age, he/she automatically fits the profile of the generation to which they belong. Baby Boomers 1946 - 1964 Generation X 1965 - 1980 Generation Y 1981 - 2000 - Net Gen Generation Z 2001 - Present 17 Baby Boomers Attitude: Optimistic Overview: They believe in possibilities, and often idealistically strive to make a positive difference in the world. They are also competitive and seek ways to change the system to get ahead. Description: Numbered at 80 million million, the largest of the groups groups, Boomers were born between 1946 and 1964. They were influenced by Martin Luther King, JFK, Gloria Steinem, and the Beatles. Places such as the Hanoi Hilton, Woodstock, and Kent State resonate for this group. Television changed their world dramatically. In general they can be described as optimistic. This was a generation that believed anything was possible – that they could really change the world world. Work Habits: Have an optimistic outlook; hard workers who want personal gratification from work that they do; believe in self-improvement and growth. 18 Generation Xers Attit d Sk Attitude: Skeptical ti l Overview: The most misunderstood generation, they are very resourceful and independent and do not depend on others to help them out out. Description: Born between 1965 and 1980, this relatively small (46 million) segment of the workforce saw the likes of Bill Clinton Clinton, Al Bundy, Madonna, Beavis and Butthead, and Dennis Rodman make the headlines during their formative years. Their world shape changed to include the former Soviet Union, Lockerbie, Scotland, and the Internet – in fact, this is th generation the ti th that, t more than th any other, th is i d defined fi d b by media di and d ttechnology. h l For Gen Xers, the watchword is skepticism – this group puts more faith in the individual, in themselves, than in any institution, from marriage to their employer. p y Work Habits: Aware of diversity and think globally, want to balance work with other parts of life, tend to be informal, rely on themselves, are practical in their approach to work, want to have fun at work and like to work with the latest technology. 19 A i d Realistic Attitude: R li i Generation Y Overview: They appreciate diversity, prefer to collaborate instead of being ordered, and are very pragmatic when solving problems. Description: The youngest members of what will be the next Boomer wave, some 76 million illi strong t who h were b born b between t th the 1981 and d 2000 2000. Alth Although h they are just starting to trickle into the workforce, this group grew up with everybody from Prince William to Tinky Winky, Felicity, Marilyn Manson, Venus and Serena Williams. Theyy have already y lived through g Columbine,, the Columbia Space Shuttle disaster, September 11. Some researchers describe this group as realistic, confident, and pragmatic. Raised by optimistic Boomers, Gen Y feels empowered to take positive action when things go wrong. wrong Work Habits: Have an optimistic outlook, are self-assured and achievement-focused. They believe in strong morals and serving the community and are aware of diversity diversity. 20 The UPS Integrad Approach ® All the elements that make up the Integrad process take into account generational differences as well as some of the most recent research a ailable regarding the different learning en available environments ironments for the different generations. Integrad is designed around four organizational pillars: – Safety and Compliance – Service and Performance – Customer Focus – UPS Professionalism The ultimate outcome of the UPS Integrad program is a well-qualified, safe and efficient Driver Service Provider for UPS UPS. ® What we changed was the front-end and middle of the process 21 UPS Integrad ® Pil t Location Pilot L ti – Landover L d • • • • First pilot training class began on 9/17/07 Each class is one week long g ((45 hours)) Total number of pilot training classes – 9 Finish first pilot phase on 11/16/07 23 UPS Integrad Training Area 24 25 UPS Integrad Main Classroom ® 26 Day 1 Candidate Schedule Candidates 1&2 7:00 - 8:00 8:00 - 8:30 8:30 - 9:30 9:30 - 10:00 10:00 - 10:10 10:10 - 10:20 10:20 - 10:30 10:30 - 10:40 10:40 - 10:50 10:50 - 11:00 11:00 - 11:10 11:10 - 11:20 11:20 - 11:30 11:30 - 11:40 11:40 - 11:50 11:50 - 12:20 12:20 - 12:30 12:30 - 12:40 12:40 - 12:50 12:50 - 1:00 1:00 - 1:10 1:10 - 1:20 1:20 - 1:30 1:30 - 1:40 1:40 - 1:50 1:50 - 2:00 2:00 - 2:10 2:10 - 2:20 2:20 - 2:30 2:30 - 2:40 2:40 - 2:50 2:50 - 3:00 3:00 - 3:10 3:10 - 3:20 3:20 - 3:30 3:30 - 3:35 3:35 - 4:15 4:15 - 4:17 4:17 - 4:57 4:57 - 4:59 4:59 - 5:39 5:39 - 5:40 5:40 - 6:15 Candidates Candidates Candidates 3&4 5&6 7&8 Introduction UPS Business Foundations Inside AM Learning Station Assignments & Tour BREAK E E C H E E C H B H E E B H E E G B D I G B D I A A B A A A B A A A A A A A A A LUNCH C D A B A B C D A A A A A A A A A A A A A A A A A A A A A A A A F G Explore D F G Explore D BREAK I F H Explore I F H Explore D I F G D I F G Explore C I F Explore C I F H Explore G C H Explore G C Afternoon Assignments J Learning Lab Integration Integration Rotation Integration J Learning Lab Learning Lab Rotation J Learning Lab Integration J Rotation Inside PM, Daily Debrief, Recap Candidates 9 & 10 7:00 - 8:00 8:00 - 8:30 8:30 - 9:30 9:30 - 10:00 10:00 - 10:10 10:10 - 10:20 10:20 - 10:30 10:30 - 10:40 10:40 - 10:50 10:50 - 11:00 11:00 - 11:10 11:10 - 11:20 11:20 - 11:30 11:30 - 11:40 11:40 - 11:50 11:50 - 12:20 12:20 - 12:30 12:30 - 12:40 12:40 - 12:50 12:50 - 1:00 1:00 - 1:10 1:10 - 1:20 1:20 - 1:30 1:30 - 1:40 1:40 - 1:50 1:50 - 2:00 2:00 - 2:10 2:10 - 2:20 2:20 - 2:30 2:30 - 2:40 2:40 - 2:50 2:50 - 3:00 3:00 - 3:10 3:10 - 3:20 3:20 - 3:30 3:30 - 3:35 3:35 - 4:15 4:15 - 4:17 4:17 - 4:57 4:57 - 4:59 4:59 - 5:39 5:39 - 5:40 5:40 - 6:15 Candidates Candidates Candidates 11 & 12 13 & 14 15 & 16 Introduction UPS Business Foundations Inside AM Learning Station Assignments & Tour BREAK A A A A A A A A A A A A A A A A E E F H E E F H G H E E G H E E B I D F B I D F LUNCH I F Explore I F Explore F G I D F G I D H A A I H A A I A A A A A A A A A A A A A A A A BREAK A C G A A C G A C D H B C D H B D B C G D B C G Explore B C Explore B C Afternoon Assignments J Learning Lab Integration J Rotation Integration J Learning Lab Integration Rotation Learning Lab Integration J Learning Lab Rotation Inside PM, Daily Debrief, Recap Candidates 17 & 18 7:00 - 8:00 8:00 - 8:30 8:30 - 9:30 9:30 - 10:00 10:00 - 10:10 10:10 - 10:20 10:20 - 10:30 10:30 - 10:40 10:40 - 10:50 10:50 - 11:00 11:00 - 11:10 11:10 - 11:20 11:20 - 11:30 11:30 - 11:40 11:40 - 11:50 11:50 - 12:20 12:20 - 12:30 12:30 - 12:40 12:40 - 12:50 12:50 - 1:00 1:00 - 1:10 1:10 - 1:20 1:20 - 1:30 1:30 - 1:40 1:40 - 1:50 1:50 - 2:00 2:00 - 2:10 2:10 - 2:20 2:20 - 2:30 2:30 - 2:40 2:40 - 2:50 2:50 - 3:00 3:00 - 3:10 3:10 - 3:20 3:20 - 3:30 3:30 - 3:35 3:35 - 4:15 4:15 - 4:17 4:17 - 4:57 4:57 - 4:59 4:59 - 5:39 5:39 - 5:40 5:40 - 6:15 Candidates Candidates Candidates 19 & 20 21 & 22 23 & 24 Introduction UPS Business Foundations Inside AM Learning Station Assignments & Tour BREAK F B I C F B I C A A G F A A G F A A A A A A A A Explore F A A Explore F A A E E B H E E B H LUNCH G C E E G C E E H Explore C B H Explore C B B G F D B G F D D I H G D I H G I H D Explore I H D Explore BREAK C D A A C D A A A A A A A A A A A A A A A A A A A A Explore I A A Explore I Afternoon Assignments Learning Lab Integration J Learning Lab Rotation J Learning Lab Integration J Rotation Integration J Learning Lab Integration Rotation Inside PM, Daily Debrief, Recap 7:00 - 8:00 8:00 - 8:30 8:30 - 9:30 9:30 - 10:00 10:00 - 10:10 10:10 - 10:20 10:20 - 10:30 10:30 - 10:40 10:40 - 10:50 10:50 - 11:00 11:00 - 11:10 11:10 - 11:20 11:20 - 11:30 11:30 - 11:40 11:40 - 11:50 11:50 - 12:20 12:20 - 12:30 12:30 - 12:40 12:40 - 12:50 12:50 - 1:00 1:00 - 1:10 1:10 - 1:20 1:20 - 1:30 1:30 - 1:40 1:40 - 1:50 1:50 - 2:00 2:00 - 2:10 2:10 - 2:20 2:20 - 2:30 2:30 - 2:40 2:40 - 2:50 2:50 - 3:00 3:00 - 3:10 3:10 - 3:20 3:20 - 3:30 3:30 - 3:35 3:35 - 4:15 4:15 - 4:17 4:17 - 4:57 4:57 - 4:59 4:59 - 5:39 5:39 - 5:40 5:40 - 6:15 27 UPS Integrad Rotation of DSP’s Throughout the Learning Stations 28 Station A – DIAD Venturer 29 UPS Integrad Full Support pp Instruction with step-byp y step guidance, Helpful Hints, Feedback, Progress Mapping, Tracking 30 Hazard Identification 31 Learning Station H and I 32 Station F2 – Safe Work Methods - On / Off Vehicle 33 UPS Integrad Extra Force per day Without proper use of the handrail….. handrail • 170 pd person exits the vehicle = 136 lbs extra force per exit. • Assume 105 Stops per day average • 136 lbs x 105 SPD = 14,280 14 280 extra lbs per day or … 34 Drivers could experience the equivalent of the combined weight of 3 Ford F-150 trucks per day of force on their body when they do not use their handrail. 35 H How d does iit allll add dd up ? • • • • • 14,280 extra lbs per day 71,400 extra lbs a week 309,400 extra lbs a month 3 712 800 extra lbs a year 3,712,800 74,256,000 extra lbs in 20 yrs 36 …Or Or a total of 33,150 33 150 Tons Tons……. 37 Station G – Lift/Lower Station 38 UPS Integrad Station F1 – Slips and Falls T k Track 39 Footwear, Awareness, Adjust W lk Walk 40 UPS Integrad g CSI ® Overall Satisfaction Precourse Safety Service DIAD /Computer Modules Methods M th d Overall effectiveness 2007 90.8 90 6 90.6 92.5 92 5 92.5 78.5 92 2 92.2 93.2 2008 94.0 88 0 88.0 97.5 98 4 98.4 86.4 95 1 95.1 96.8 41 UPS Integrad UPS Integrad ® S Survey Results R lt • Overall satisfaction – 94% – “UPS Integrad I t d taught t ht me h how tto perform f my job safely.” (98.1%) – “The On/Off Vehicle Learning Station taught me the th importance i t off three th points i t off contact t t and showed me the consequences of not using the handrail handrail.” (98.0%) (98 0%) 42 UPS Integrad ® S Survey Results R lt O Overview i • Best part of training – Facilitators (experience, teach, coach, mentor) – – – – • On Road Driving Experience Hazard Identification (Touch Screens) Integration Station (Clarkville Deliveries) DIAD T Training i i Areas that needed improvement – LMS (Learning Management System) – Computer glitches 43 UPS Integrad Results ® • Turnover – Pre – 20% - 50% graduate failure rate – Post P - <10% 10% – More turnover on the front end before class vs. during the 30-day on-road period • Performance – Control group monitored on 10 elements – Graduates Grad ates o outperformed tperformed the control gro group po overall erall in service elements. • Cost Reduction (g (graduates vs. new drivers in like operations) 44 UPS Integrad ® Wh t’ Next? What’s N t? • • Pilot “Proof of Concept” Id if other Identify h UPS L Learning i C Center sites i – Franklin Park next site (Chicago Suburb) – Two additional areas identified in the Northeast and West • • • • • Identify other workshops that can be run within the UPS Learning Centers Utilize site to train on-road management who have not had previous driving experience D Development l t off maintenance i t and d update d t plan l ffor curriculum i l Potential external product offering Tours or benchmarking are available through your UPS Account Executive 45 Thank You 46