Training Proposal for Rich Products Corporation: 17-0622 Page 1 of 6

TRAINING PROPOSAL FOR

Rich Products Corporation

17- 0622

Panel Meeting Date: 06/23/2017

Regional Office: Sacramento Regional Office

Analyst Name: Mam, Karen

Type of Proposal: Single Employer Contract (SE)

Funding Source: Out-of-State Competition (OSC)

FUNDING OVERVIEW

Provided here is a summary of the funding for the proposed Training Project.

TOTAL ETP FUNDING: $177,390.00

Program & Admin Cost Support Cost Substantial Contribution

($ / %) Total In-Kind

$177,390.00 N/A N/A $205,000.00

APPLICANT PROFILE

Company Summary Headquartered in Buffalo, NY, Rich Products Corporation (Rich Products) is a world

leader in manufacturing non-dairy toppings and icings for cakes and desserts, frozen food such as pizza, and bakery products servicing in-store bakeries, retail marketplaces and the food service industry.

Industry Sector(s) Manufacturing

Priority Industry Yes

No. of Employees (Applicant) State: 1,200 US: 5,000 World Wide: 7,500

Turnover Rate (Applicant) 10.00%.

Repeat Contractor Yes

High Unemployment Area Yes

Unions

Teamsters 431

Training Proposal for Rich Products Corporation: 17-0622 Page 2 of 6

TRAINING PROFILE

Training Objective

Training will provide employees with the needed skills to operate new equipment on the production floor.

Training is summarized below. Additional details are provided in Attachment 1 - Group and Job Title Details of this Panel Proposal.

# Group Characteristics # of Trainees

Reimbursement Rate

Avg. Hours

Cost Per Trainee

Min – Max Hour

1 Retrainees 129 $18.00 53 $954.00 8-200

2 Retrainees, Veterans 14 $22.00 53 $1,166.00 8-200

3 Retrainees, Job Creation 20 $20.00 95 $1,900.00 8-200

Training Proposal for Rich Products Corporation: 17-0622 Page 3 of 6

PROPOSED TRAINING PROJECT DETAILS

Provided here are the details on the proposed Training Project.

1. Company Background

Founded in 1945 and headquartered in Buffalo, NY, Rich Productions is a leading supplier and solutions provider to the foodservice, in-store bakery and grocery retail marketplaces. The Company produces frozen non-dairy whipped topping, bakery items, desserts, shrimp/seafood, appetizers/ snacks, gluten-free and all-natural items. The Company has more than 50 facilities across six countries with products being sold in over 100 countries. Training under this proposal will be at the Fresno facility.

2. Current Training Project Details

Provided here are details on the purpose of the training, a summary of the marketing plan and support costs.

Purpose of Training

This is Rich Products’ fourth Agreement, third at the Fresno location in the last five years. In the previous Agreements, Rich Products focused on their Manufacturing Line Optimization Program. Training under this proposal will focus on new equipment being installed during the 3rd and 4th quarter of 2017. The Company has invested $4.7 million in production equipment which includes a Spiral Freezer, Silo Cooling System, Safeline Metal Detector, and Bridge Dumper/Breadline. Training will ensure workers are proficient in new processes and equipment. The Company will also train on advanced Lean manufacturing topics. Training will give trainees the skills to help improve processes and production to increase capacity while maintaining quality and reducing waste. Rich Product will be expanding their workforce to support the new equipment being installed on the production floor. The Company has committed to hiring 20 new Production Staff. The date-of-hire for all trainees will be within the three-month period before contract approval or within the term-of-contract. These trainees will be hired into “net new jobs” as a condition of the contract.

Training Infrastructure and Administrative Plan

The Company has a dedicated HR Manager to coordinate all training efforts including maintaining rosters, scheduling training, verifying training and retention completion and participating in ETP monitoring activities while ensuring compliance with all ETP requirements. All training will be done by in-house subject-matter experts. Additionally, the Company has engaged the services of a third-party administrator with extensive ETP administration experience to complete the project successfully.

Marketing Plan

(MEC Only)

N/A

Support Cost Description

(MEC Only)

N/A

Substantial Contribution Description

N/A

Training Proposal for Rich Products Corporation: 17-0622 Page 4 of 6

3. Sample Curriculum

Provided below is a summary of the methods by which training will be delivered including a sample of the courses that will be offered.

Each of the Trainee groups will be able to take courses under the various delivery methods.

Delivery Method Classroom/Simulated Laboratory

Training Type/Level Sample Classes

Business Skills Account Development Training

Effective Communications

Commercial Skills Refrigeration Systems Repair and Maintenance

Stainless Steel Welding

Computer Skills Bulls Eye Manufacturing Software Training

Materials Resources Planning Software

Continuous Improvement Skills British Retail Consortium

Teambuilding

Management Skills Long Term Strategic Planning Principles

Manufacturing Skills Production Equipment Operation

Food Manufacturing

Delivery Method Productive Lab

Training Type/Level Training Course(s)

Manufacturing Skills Production Equipment Operation

Justification Summary: Rich Products will be purchasing and installing new equipment. PL training is necessary to train staff up to levels of proficiency while ensuring safety and production standards are met. PL training will allow practical, hands-on experience in a working environment without creating an excess of waste. The Company will train 139 Production Staff, Supervisors, Quality Control Staff, and Maintenance Mechanics. Each trainee will receive up to 20 hours of PL training. Rich Products is requesting the trainer-to-trainee ratio of 1:2 because it requires two employees to operate the equipment.

4. Additional Company or Training Project Details

Provided here is additional information relative to the proposed Training Project.

4.1 Program Waivers

The next table lists the various waivers and supporting justifications for training that apply to this proposed Training Project.

Waivers/Justification Type Summary

Reduced Standard Wage (HUA) 105 trainees in Group 1 and 2 work in a High Unemployment Area (HUA), region with unemployment exceeding the state average by 25%. Rich Products is requesting a wage modification from $16.16 to $12.12 for trainees in Job Numbers 1 and 2.

Training Proposal for Rich Products Corporation: 17-0622 Page 5 of 6

4.2 Subcontractor Summary

The applicant has retained the services of the following Subcontractor(s).

Subcontractor Type Subcontractor Name City Service Cost

Development Strategic Business Solutions, LLC Visalia $8,250.00

Administrative Strategic Business Solutions, LLC Visalia 13% of funds earned

Training To be determined

4.3 Previous ETP Project Summary

The table below summarizes the active performance under the ETP contract.

Active Contract(s) Elements

Summary

Agreement Number ET15-0402

Purpose of Training Training focused on Phase 2 of the Manufacturing Line Optimization Program which further developed staff production efficiency and allowed employees to properly integrate data and function adjustments to production equipment.

Location(s) Fresno

Term 04/01/2015 – 03/31/2017

Approved Amount $108,200.00

Projected Earnings Earned – Approved: $100,713.00

Earned – In Process: $6,685.00

Performance Percentage 99%

Other Notes Based on ETP Systems, 5771 have been tracked for potential earnings of $108,571.00 (99% of approved amount). 6 trainees are pending review for placement.

This table summarizes Contractor's performance under prior contract(s) completed within the last five years.

Past Contract Activity

Agreement Number

Location(s) Term Approved Amount

Project Earnings Performance %

ET12-0431 Fresno, Santa Fe Springs, South San Francisco/ Union City

06/30/12 – 06/29/14

$407,610 $79,376.00 19%

Notes The contractor’s low performance was due to a plant closure in Santa Fe Springs and layoffs of a majority of upper management in Union City and the remaining Santa Fe Springs facility as a result of the economic downturn. Training did not occur as planned due to a lack of leadership. However, the Fresno Plant earned 56% of the training funds for that facility. Thus, the Company is currently requesting funds for training at the Fresno Plant. The Company improved their administration process. The Company has secured

Training Proposal for Rich Products Corporation: 17-0622 Page 6 of 6

Past Contract Activity

Agreement Number

Location(s) Term Approved Amount

Project Earnings Performance %

an administrative contractor as well as dedicated internal staff in place to administer the Contract. A comprehensive training schedule is in place to ensure completion of 100% of the requested funding.

4.4 Supporting Panel Proposal Documentation

Provided in Attachments 1, 2 and 3 is additional application details on the intended training population, the detailed curriculum, and associated program characteristics that are related to this proposed Training Project.

Attachment 1 – Group and Job Title Details

Training Proposal for Rich Products Corporation: 17-0622 Attachment 1: Page 1

The proposed Training Project includes training for the following Trainees, organized by training group.

Group #: 1 – Retrainees

County ETP Minimum Wage

Fresno $16.16

Fresno (HUA) $12.12

Job Title Estimated Number of Trainees

Base Wage Range Health Benefits Applied

Post Retention Wage

Fresno County

Administration Staff 11 $19.00 - $40.00 $0.00 $19.00

Managers/Supervisors 15 $19.00 - $42.00 $0.00 $19.00

Maintenance Mechanic 7 $20.30 - $23.43 $0.00 $20.30

Production Staff (HUA) 77 $15.00 - $19.25 $0.00 $15.00

Quality Control Staff (HUA) 8 $15.20 - $19.01 $0.00 $15.20

Warehouse/Shipping (HUA) 11 $15.20 - $19.01 $0.00 $15.20

Group #: 2 Retrainees, Veterans

County ETP Minimum Wage

Fresno $16.16

Fresno (HUA) $12.12

Job Title Estimated Number of Trainees

Base Wage Range Health Benefits Applied

Post Retention Wage

Administration Staff 1 $19.00 - $40.00 $0.00 $19.00

Managers/Supervisors 2 $19.00 - $42.00 $0.00 $19.00

Maintenance Mechanic 2 $20.30 - $23.43 $0.00 $20.30

Production Staff (HUA) 8 $15.00 - $19.25 $0.00 $15.00

Warehouse/Shipping (HUA) 1 $15.20 - $19.01 $0.00 $15.20

Attachment 1 – Group and Job Title Details

Training Proposal for Rich Products Corporation: 17-0622 Attachment 1: Page 2

Group #: 3 Retrainees, Job Creation

County ETP Minimum Wage

Fresno $13.22

Job Title Estimated Number of Trainees

Base Wage Range Health Benefits Applied

Post Retention Wage

Production Staff 20 $13.00 - $15.00 $0.22 $13.22

Attachment 2 – Training Delivery and Curriculum Listing

Training Proposal for Rich Products Corporation: 17-0622 Attachment 2: Page 1

Provided below are details on the types of training planned for this proposed Training Project.

Delivery Method Classroom/Simulated Laboratory

Training Type/Level Planned Course Offerings

Business Skills

Account Development Training

Effective Communications

Commercial Skills

Boiler Machinery Equipment Testing and Maintenance

Refrigeration Systems Repair and Maintenance

Rotary Valve Pump Maintenance and Repair

Stainless Steel Welding (Advanced)

Computer Skills

Bulls Eye Manufacturing Software Training

Materials Resource Planning Software

Continuous Improvement Skills

British Retail Consortium

Supervisors Training Boot Camp

Teambuilding

Management Skills

Long Term Strategic Planning Principles

Vendor Relations

Manufacturing Skills

Adjustable Bridge Dumper-Breadline

Flour Dusters

Food Manufacturing

Food Product Safety

Manufacturing Line Optimization Program

Materials Handling Equipment

Mixers

Pallet Flipper

Production Equipment Operation

Ribbon Blending Equipment

Safeline Metal Detecting System

Sanitation Best Practices

Spiral Freezer

Warehouse Racking and Conveyance Equipment

Attachment 2 – Training Delivery and Curriculum Listing

Training Proposal for Rich Products Corporation: 17-0622 Attachment 2: Page 2

Delivery Method Classroom/Simulated Laboratory

Training Type/Level Planned Course Offerings

Delivery Method Productive Lab (PL)

Manufacturing Skills

Adjustable Bridge Dumper-Breadline

Flour Dusters

Mixers

Pallet Flipper

Production Equipment Operation

Ribbon Blending Equipment

Safeline Metal Detecting System

Spiral Freezer

Warehouse Racking and Conveyance Equipment

PL Justification

Need for Productive Laboratory Training

Rich Products will be purchasing and installing new equipment. PL training is necessary to train staff to levels of proficiency while ensuring safety and production standards are met. PL training will allow practical, hands-on experience in a working environment without creating an excess of waste. The Company will train approximately 139 Production Staff, Supervisors, Quality Control Staff, and Maintenance Mechanics. Each trainee will receive up to 20 hours of PL training. Rich Products is requesting the trainer-to-trainee ratio of 1:2 because it requires two employees to operate the equipment.

Equipment/Processes to be Used Equipment to be used during PL includes Safeline Metal Detecting System, Spiral Freezer, Warehouse Racking and Conveyance Equipment, Table Line Mixer, Adjustable Bridge Dumper-Breadline, and Pallet Flipper.

Trainer Qualifications All trainers are subject-matter experts. The trainers will demonstrate proper use of equipment, observe the trainee using the equipment, and offer coaching to ensure the trainee will meet production requirements.

Attachment 3 - Training Project Characteristics Details

Training Proposal for Rich Products Corporation: 17-0622 Attachment 3: Page 1

Provided in the table are details on the training characteristics.

Characteristic Program Summary

Retrainee - Job Creation

The Panel incentivizes job creation. Training for newly-hired employees is reimbursed at a higher rate, and trainees are subject to a lower post-retention wage. The date of hire for trainees is within the three-month period before contract approval, or within the term of the contract. Trainees are hired into “net new jobs” as a condition of contract. Substantial Contribution and Turnover Rate penalty

requirements do not apply. Employer must demonstrate expanded or new facilities, new equipment or machinery, expanded business capacity or other measureable investment in hiring workers and expanding their California workforce.

Retrainee - Veterans To help provide veterans with necessary skills to enter the workforce and improve opportunities for advancement in high wage, secure jobs, the Panel incentivizes training for veterans. Training for veterans is reimbursed at a higher rate. Training hours may consist of up to 50% literacy or other basic skills training. Full-time employment is required for a minimum of 30 hours per week during 90-day retention period (or 500 hours within 272 days). The Retrainee Cap on hours (200) may be modified. The Company does not specifically outreach to Veterans however, they do have Veterans employed.