ETP 130 - Single (05/02/16) 1 of 7 RETRAINEE - JOB CREATION Training Proposal for: Samsung Semiconductor, Inc. Agreement Number: ET17-0344 Panel Meeting of: December 16, 2016 ETP Regional Office: San Francisco Bay Area Analyst: C. Hoover PROJECT PROFILE Contract Attributes: Priority Rate Retrainee Job Creation Initiative Veterans Industry Sector(s): Technology/Other Manufacturing Green Technology Wholesale Trade Priority Industry: Yes No Counties Served: Santa Clara Repeat Contractor: Yes No Union(s): Yes No Number of Employees in: CA: 850 U.S.:2,000 Worldwide: 279,000 Turnover Rate: 11% Managers/Supervisors: (% of total trainees) 0% FUNDING DETAIL Program Costs - (Substantial Contribution) (High Earner Reduction) = Total ETP Funding $339,024 $0 $0 $339,024 In-Kind Contribution: 100% of Total ETP Funding Required $1,368,661
15
Embed
Samsung Semiconductor, Inc. - California Semiconductor 1301.pdf · Samsung Semiconductor, Inc. December 16, 2016 ET17-0344 ETP 130 - Single (05/02/16) 2 of 7 TRAINING PLAN TABLE 2
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
ETP 130 - Single (05/02/16) 1 of 7
RETRAINEE - JOB CREATION
Training Proposal for:
Samsung Semiconductor, Inc.
Agreement Number: ET17-0344
Panel Meeting of: December 16, 2016
ETP Regional Office: San Francisco Bay Area Analyst: C. Hoover
PROJECT PROFILE
Contract
Attributes: Priority Rate
Retrainee
Job Creation Initiative
Veterans
Industry
Sector(s): Technology/Other
Manufacturing
Green Technology
Wholesale Trade
Priority Industry: Yes No
Counties
Served:
Santa Clara Repeat
Contractor:
Yes No
Union(s): Yes No
Number of Employees in: CA: 850 U.S.:2,000 Worldwide: 279,000
Turnover Rate: 11%
Managers/Supervisors: (% of total trainees)
0%
FUNDING DETAIL
Program Costs - (Substantial Contribution)
(High Earner Reduction)
= Total ETP Funding
$339,024
$0
$0
$339,024
In-Kind Contribution: 100% of Total ETP Funding Required $1,368,661
Samsung Semiconductor, Inc. December 16, 2016 ET17-0344
ETP 130 - Single (05/02/16) 2 of 7
TRAINING PLAN TABLE
2 Job Creation Initiative
Retrainee
Priority Rate
Advance Tech, Business Skills, Computer Skills, Continuous Impr, PL- Comm Skills,
PL-Adv Tech
340 8-200 0-60 $600 $18.00
Weighted Avg: 30
3 Veterans
Retrainee
Priority Rate
Advanced Tech, Business Skills, Computer Skills, Continuous Impr
5 8-200 0-60 $264 $47.00
Weighted Avg: 12
Minimum Wage by County: Job Numbers 1 & 3: $17.02 per hour for Santa Clara County.
Job Number 2: $14.19 per hour for Santa Clara County.
Health Benefits: Yes No This is employer share of cost for healthcare premiums –
medical, dental, vision.
Used to meet the Post-Retention Wage?: Yes No Maybe
Although health benefits are provided, they are not being used to meet the Post-Retention Wage.
Wage Range by Occupation
Occupation Titles Wage Range Estimated # of
Trainees
Job Number 1
Engineer I 260
Engineer II 153
Finance/Accounting Staff I 17
Finance/Accounting Staff II 9
Human Resources 13
R&D/S&M Support Staff 40
Logistics/Process Improvement I 4
Logistics/Process Improvement II 3
Logistics/Process Improvement III 2
Sales/Marketing (S&M) I 42
Sales/Marketing II 33
Sales/Marketing III 25
Sales/Marketing IV 17
Director Tax 1
Job
No. Job Description Type of Training
Estimated
No. of
Trainees
Range of
Hours Average
Cost per
Trainee
Post-
Retention
Wage Class /
Lab CBT
1 Retrainee
Priority Rate
Advance Tech, Business Skills, Computer Skills, Continuous Impr
619 8-200 0-60 $216 $18.00
Weighted Avg: 12
Samsung Semiconductor, Inc. December 16, 2016 ET17-0344
ETP 130 - Single (05/02/16) 3 of 7
Job Number 2
R&D/S&M Support Staff 40
Logistics/Process Improvement I 4
R&D Engineer I 100
R&D Engineer II 172
Finance/Accounting Staff I 2
Finance/Accounting Staff II 4
Sales/Marketing I 8
Sales/Marketing II 10
Job Number 3
Finance/Accounting Staff I 1
Sales/Marketing III 1
R&D Engineer II 3
INTRODUCTION
Samsung Semiconductor, Inc. (SSI) (www.samsung.com), a subsidiary of Samsung Electronics Co. Ltd. headquartered in San Jose, develops new technology for Device Solutions through its Research and Development (R&D) Labs with input from its Sales and Marketing teams. The Company’s R&D group consists of 12 labs to develop and perfect the technology of its products. They include Memory Solutions Labs, which provide key memory products; System LSI Labs which design and manufacture a variety of large scale integrated circuit (LSI) products along with System-on-Chip solutions for smartphones and tablets; and Display Labs which develops LED-based lighting solutions. Products are used in smartphones, sensors, Internet systems, and cloud-based data centers. Products are developed with energy conservation programs in mind as demand for energy-efficient and eco-friendly lighting increases. The products are also used by Samsung’s Electronics, IT and Mobile Communications, and Consumer Electronics divisions to develop cell phones or tablets. Some products are sold to other manufacturers such as Apple and Dell. Additional customers consist of businesses with servers and enterprises with hard disk storage needs. SSI will deliver the majority of training at its new headquarters, a state-of-the-art R&D facility in San Jose. Other SSI sites in California will deliver training to smaller populations in the Bay Area, Pasadena, and San Diego. In addition to California, the Company has locations in 15 states Its parent company, Samsung Electronics, is headquartered in New Jersey. SSI qualifies for standard retraining as a priority-industry manufacturer.
PROJECT DETAILS
This is SSI’s second ETP Agreement in the past five years. The previous one was a Critical Proposal that helped train the first wave of SSI’s expansion at its new headquarters, with 201 newly hired Engineers. This proposal is for less funding but is broader in scope to reach other occupations that were not included previously. Trainees who participated in the prior ETP funded training plan will not repeat any courses.
Samsung Semiconductor, Inc. December 16, 2016 ET17-0344
ETP 130 - Single (05/02/16) 4 of 7
As with its prior Agreement, is for skills upgrade training needed to stay competitive within the industry. The technology market is fast-changing, especially for the type of products SSI develops, in competition with Apple, Intel and Qualcomm. Consequently, the R&D department is focused on global research and a development network that supports collaboration with key customers for joint development. Retrainee - Job Creation
The Panel offers incentives to companies that commit to hiring new employees. Training for newly-hired employees will be reimbursed at a higher rate and trainees will be subject to a lower post-retention wage. In this proposal, SSI has committed to hiring 340 new employees (Job Number 2) to support SSI’s goals for continued technological advancements of its products. Additionally, SSI built a 1.1 million square foot headquarters north of downtown San Jose that will eventually house 2,500 employees. Most of the new-hire positions will be in the R&D business lines as an Engineer. The date-of-hire for all trainees in the Job Creation program will be within the three-month period before contract approval or within the term-of-contract. Trainees will be hired into “net new jobs” as a condition of contract. Training Plan Training will be delivered in Class/Lab, Productive Lab (PL), Advanced Technology (AT) and Computer-Based Training (CBT) by in-house instructors and vendors as outlined below: Business Skills (10%) – Training will be offered to all occupations. Workers in Sales, Marketing, Finance/Accounting Staff, Human Resources, and Logistics/Process Improvement will be provided skills to improve communication and product knowledge. All occupations will be provided with skills to handle rules and regulations. Computer Skills (15%) – Both the R&D and Sales & Marketing groups will be trained in Windows 7, advanced Microsoft Office products (Access, Excel, PowerPoint, Outlook and MS Office-Tips & Tricks), Data Management and MIS training. Additionally, the R&D Engineers will be provided SharePoint and Scrum (software) training for managing product development. Continuous Improvement (15%) – Training will be offered to all occuaptions. Both the R&D and Sales/Marketing groups will be trained in quality control and security to ensure that products meet the highest standards. All employees will receive training to help them meet high SSI standards. All high-performing frontline workers will also be provided various leadership courses such as Situational Leadership, Leadership Transition, Leadership Development Course, Annual Team Leaders Forum, Leading Effective Meetings and Delegating & Supervising. Computer-Based Training CBT will allow employees to take courses at their own pace without instructors. CBT is restricted to no more than 50% of a trainee’s total training hours. Advanced Technology (60%) SSI is undergoing significant changes to upgrade the skills of employees to remain competitive and meet product demands. R&D Engineers will be provided Advanced Technology (AT) training in database administration, securization and new/advanced technologies, networking,
Samsung Semiconductor, Inc. December 16, 2016 ET17-0344
ETP 130 - Single (05/02/16) 5 of 7
routing, maintenance, and programming skills. The trainer-to-trainee ratio is 1:10 for AT, to allow in-depth coverage and personal attention from the instructor. SSI estimates that AT training costs range from $75 to $2,370 per hour per trainee. Individual courses are customarily between $1,200 and $15,000 for an eight-hour course with some costs up to over $200 an hour per trainee. This cost does not include the additional cost of trainees’ wages (while in training), materials and supplies, training facilities or special hardware/software purchased for use during the training. As a result of the higher training cost, SSI is requesting the $26 per hour per trainee reimbursement AT training. Equipment used in the delivery of AT training includes the following:
Python (this tool is used for automation, scripting, search and data extraction)
REl 11-12 LTE and 3G equipment
3GPP Test equipment Productive Laboratory Productive Laboratory (PL) trainees may produce goods for profit as part of the training in the courses identified under the Curriculum. The instructor must be dedicated to training delivery during all hours of training. Instructors are experienced mentors who have knowledge and mastery of at least three manufacturing areas. PL training in Commercial Skills and Advanced Technology will be provided to the 272 newly hired R&D Engineers. SSI believes this is the most effective way for them to fully comprehend highly detailed and precise production processes, using complex technology equipment. Initially, SSI requested 96 hours of PL (based on eight hours per week for three months). However, due to the cap on PL, SSI is requesting the maximum of 60 hours per-trainee at a 1:1 trainer-to-trainee ratio. PL will include hands-on instruction in the methods and practices of the R&D team, since most new hires must acclimate to SSI’s technology and systems. Newly hired R&D Engineers will spend much of their time in one-on-one training at the beginning, delivered directly by a senior engineer. All newly hired Engineers will be placed at SSI’s San Jose facilities where the PL will occur. Commitment to Training ETP funds will not displace the existing financial commitment to training. Safety training is, and will continue to be, provided in accordance with all pertinent requirements under state and federal law. SSI does not maintain a training budget for its groups, since training is significantly decentralized (i.e. - training is provided at each of the California locations/departments independently from other locations/departments). However, the R&D group has an annual
Samsung Semiconductor, Inc. December 16, 2016 ET17-0344
ETP 130 - Single (05/02/16) 6 of 7
training budget of $765,000 and the Sales & Marketing has a training budget of $292,000 for a combined training budget total of $1,057,000. The Company provides new-hire orientation on SSI’s culture, basic on-boarding training, harassment prevention training, and basic and intermediate Microsoft Office training.
Training Infrastructure
In August 2016, SSI dedicated a new full-time position (Coordinator, Organization for
Training and Development) to handle delivery and administration of ETP training across all of its facilities. This individual participated in the prior ETP Agreement, and now coordinates
all of the Company’s training. SSI will also have a designated ETP administrator at each of the nine California locations.
Electronic Recordkeeping SSI plans to use a record-keeping system to document its ETP training, which has been reviewed and approved by ETP. Impact/Outcome SSI’s training goal is to enable the Company’s employees to use the training to increase its innovation. The strategic approach to achieve this goal is relying on creativity and partnership. Using the ETP funding, SSI will seed creative solutions, new technology and innovative products that its employees will create. Veterans Program
The Panel has established a higher reimbursement rate and other incentives for training California veterans. SSI appreciates qualities and skills that veterans gain from their military service. In this proposal, the training plan reflects 5 Veteran trainees that will receive ETP funded training (Job Number 3). Even though recently the SSI HR department began proactively pursuing the inclusion of veterans to the Company’s workforce- beginning with posting to key websites, the Company is not including veterans for its Job Creation.
RECOMMENDATION
Staff recommends approval of this proposal including the 60 hour cap on PL.
PRIOR PROJECTS
The following table summarizes performance by SSI under an ETP Agreement that was completed within the last five years:
Agreement No. Location (City) Term Approved Amount
Payment Earned $ %
ET15-0271 San Jose 09/02/2014–09/01/2016
$745,480 $339,921 (46%)
ET15-0271: SSI had limited success in meeting training goals due to the lack of internal administrative support and poor communication between two HR departments (Sales & Marketing and R&D). The move to its new HQ building also disrupted training delivery. SSI has corrected its mistakes and improved its training infrastructure. SSI hired a new HR lead; combined the HR for both Sales & Marketing and R&D; implemented a new training and development unit
Samsung Semiconductor, Inc. December 16, 2016 ET17-0344
ETP 130 - Single (05/02/16) 7 of 7
for the entire company; created a position for ETP administration; and developed an internal training website for employees with email alerts for upcoming class offerings. SSI also plans to create a key metrics on training status for Managers and employees on a quarterly basis. This proposal has been “right sized” to reflect the amount earned in ET15-0271.
DEVELOPMENT SERVICES
N/A
ADMINISTRATIVE SERVICES
N/A
TRAINING VENDORS
Raymond Hettinger of Santa Clara has been retained to provide Continuous Improvement and Advanced Technology training for a fee of $17,600. Ovient of Sunnyvale has been retained to provide Computer Skills and Business Skills training for a fee of $16,900. Other vendors will be identified for ETP record-keeping purposes as they are retained.
Samsung Semiconductor, Inc. ET17-0344
ETP 100 Exhibit B Menu Curriculum (07/07/14) 1 of 8
Exhibit B: Menu Curriculum
Class/Lab Hours 8 – 200 Trainees may receive any of the following:
BUSINESS SKILLS
Advanced Presentation Skills
Communication Skills
Research and Development Knowledge Sharing
Architecture Review
Business Writing
Advanced Tax Seminars
Situational Sales Negotiation Training
Maximizing Interactions - Leadership Skills
Advanced Sales Techniques
New Product Training
Business Writing
Negotiation Skills
Project Management
Anti-Trust Training
Export Compliance & Deemed Exports
Case Studies
Confidentiality COMPUTER SKILLS
Windows 7 – Intermediate / Advanced
Microsoft Office Tips and Tricks – Intermediate / Advanced
HMM Personal Development New Manager Transitions (1 hr)
HMM T eams Global Collaboration (1 hr)
HMM Teams Team Management (1 hr)
HMM Teams Virtual Teams (1 hr)
Safety Training cannot exceed 10% of total training hours per-trainee.
Note: Reimbursement for retraining is capped at 200 total training hours per trainee, regardless of the method of delivery. CBT is capped at 50% of total training hours, per trainee. PL is capped at 60 total trainng hours per trainee.