New Flyer Institute RPL at New Flyer December 2, 2010

New Flyer Overview Founded in 1930 as Western Flyer Auto & Truck Body Works with 5 employees. Today New Flyer is the leading manufacturer of heavy-duty transit buses in Canada and the United States. The Company's facilities are all ISO 9001, ISO and OHSAS certified. With a skilled workforce of over 2,000 employees worldwide, New Flyer is a technology leader, offering the broadest product line in the industry, including drive systems powered by clean diesel, LNG, CNG and electric trolley as well as energy-efficient gasoline-electric and diesel-electric hybrid vehicles. All products are supported with an industry-leading, comprehensive parts and support network. New Flyer just celebrated its 80 th Anniversary

Past Culture Highly skilled workforce Adaptable/Customized Product Reacted to changes on the fly Predominantly a reactive environment Communication challenges Training and Development was based on perceived needs and requests OJT (On the Job Training) was completed by osmosis No defined structure or learning journey Basic skills not pre-determined and no standards established

Skills Passport and Essential Skills In New Flyer embarked on the Skills passport journey in partnership with: Competiveness Training and Trade Canadian Auto Workers WPLAR WEM Defining competencies Defining essential skills Defining core skills and knowledge Standardized development as a potential outcome Welder essential Skills Workplace essential skills for manufacturing Data Tracking System

Skills Passport and Essential Skills

Outcome of the Skills Passport Project Implementation did not take place Drastic Change in Culture Change in project personnel Timings New Flyer was not ready for full implementation Viewed as punitive New Flyer is using some aspects of the project Other companies have had the opportunity to introduce the skills passport concept

New Flyer Cultural Changes Need to ready the organization with clear vision Define core values Define Mission Top down support Change management philosophy/principles Changes in increments-Implement slowly Constant communication-varying methods-Keep the workforce informed and engaged Invest in structured employee development

2009 Cultural Changes-Operations Excellence Operational Excellence encompasses all of the elements of lean and its principles. Long term success and sustainability NF vision is to embed these principles as part of New Flyer culture- Leadership to shop floor Provided lean 101 and 5S training to the workforce Weekly/Monthly updates are being utilized (5S) Annual Lean Assessment scores-CME to Audit Lean scores are based on the following: Management Support, Culture, 5S, Value Stream Mapping, Set-up Reduction, TPM, Pull System, Production/Information Flow, Layout, Standard Work, Lean Product and Process Design, Accounting, Supply Chain, Continuous Improvement

2009 Cultural Changes-New Flyer Institute Identified as a key enabling project for strategy road-map. Access to increased training and skills development In line with key strategic themes Enable and empower our employees Strive for excellence in the following categories: Foundational Development Employee Development Systems Development Leadership Development Manufacturing Development Employees canvassed (Focus Groups) for their opinions

New Flyer Institute Mandate Provide a framework for employee development Develop internal capacity for course/program delivery Utilization of internal SME’s and leadership teams Develop competencies and essential skills Develop training standards across the organization Develop OJT (On the Job training program). Adoption of the TWI program Job Instruction Design electronic training capture Design course curricula Design a training and compliance database Design policies and procedures to support the function

New Flyer Institute Mandate

What did New Flyer Do? Benchmarking Why benchmark? What makes successful organizations exactly that, successful? What is a fit for the organization? What is the organization striving for? Align with core values and mission statement Based on minimum requirements Two high profile companies benchmarked A company with an established training and development system A company with a training and development system in its infancy designed from the ground up with competencies and essential skill requirements embedded Based on the benchmarking and New Flyer Institute mandate. NF established its needs and is now in partnership with WPLAR

2010-Partnership with WPLAR Determine, competencies and essential skills for supervisory and manufacturing Establish standardization and consistency in employee training and development. Established competencies, essential skills for the varying job functions Aid in development of training plans for new hires Aid in development of individual training plans for the existing workforce Utilize a PLAR process (based on the training plan). JTA (Job Task Analysis) of the position and work. The outcome of this project will also aid in the design of job descriptions.

2010-Partnership with WPLAR Recognizing Prior Learning/Embedding Essential Skills Multi Cultural Workforce Like for like skills Formal as well as informal-Applying learned skills and knowledge Courses Hobbies Training Passed down-Farming/Mechanical skills for example Confirmation of knowledge, skills, abilities and attitudes through assessments/demonstrations and tests Portfolio Options Identification of Critical task/skills

Training Plan (Example)

Skills Matrix

Moving Forward 2011 and Beyond Multi Skilled Workforce through Standardized training and development Standardized documentation Standard set of competencies, organizational as well as skills or task related Succession Planning Career Paths Mentorship Program Internal Leadership Programs based on NF needs OJT Training OJT (On the Job training) Program Job descriptions