Case Studies

Project Outsourcing CRI: Common Rail Injector

Laura Baareman — Mon, 13 Jun 2011 15:41:00 GMT

Introduction

COMMON RAIL INJECTOR (CRI) is one of the four product groups currently in production at the Bosch Charleston facility. By providing on-site management, shift supervision and line associates, MAU manages a variety of functions on key work stations, integrating seamlessly with Bosch’s full-time staff . The end result for Bosch is more workforce flexibility and the ability to focus on core competencies, allowing them to meet fluctuations in demand with an on-going outsourcing solution.

Background

ROBERT BOSCH CORPORATION established its plant in Dorchester County, South Carolina, in 1974. Manufacturing fuel injection systems, antilock braking systems and diesel injection systems, the plant has achieved incredible growth and success. From 105 workers on opening day, Bosch Charleston today has over 2,000 employees. The skill of its associates and efficiency of its manufacturing lines has allowed Bosch to achieve record production quality in fuel injectors, antilock braking systems and other related products as they roll off its assembly lines every day.

Situation

CRI: Common Rail Injector

BOSCH CHARLESTON WAS RUNNING its CRI line with a mixture of 2nd and 3rd shifts to meet changes in demand. Positive projections for the future showed that demand would be much greater than what the current shifts could handle, even with the fluctuating 2nd and 3rd shifts.

Problem

THE PROBLEM FOR BOSCH was one of both quantity and quality. To meet rising demand for CRI, a dramatic ramp up would be needed. Yet at the same time, it was a must that quality be maintained, if not improved, over the entire process.

STAFF RATIO « MANAGEMENT

Bosch Supervisors on the CRI line were already responsible for a large number of associates. To train and manage even more line associates would be difficult.

TIME FRAME

Production of CRI needed to ramp up immediately due to increased demand. At the same time, the overall staffing structure needed to allow enough flexibility to be downsized if/when production needs declined, and Bosch wanted to avoid the possibility of future layoffs.

Solutions

The MAU outsourcing team included:

HISTORICALLY, BOSCH WOULD HAVE turned to a fixed and variable cost solution. The fixed solution would have included hiring and/or transferring full-time associates from other production lines. The variable solution would have included hiring all temporary/contract associates for the ramp up.

MAU partnered with Bosch to create a variable cost, comprehensive outsourcing plan that included very aspect of managing, staffing and training for specific functions in CRI, resulting in increased efficiency and flexibility as well as reduced costs. MAU managed specific non-core functions of production with supervisory staff and trained associates, thus freeing Bosch management and full-time associates to focus on more critical functions.

MAU SUPERVISORY ASSOCIATES HAD complete day-to-day responsibility over specific processes on all shifts, allowing Bosch supervisors to focus on expansion and quality. MAU supplied an additional 150 skilled and semi-skilled associates for the ramp up of the CRI line, which, at one point, constituted 50% of the work force.

Results

BOSCH CHARLESTON WAS ABLE to ramp up very quickly and meet production demands from their major customers for CRI. By fulfilling supervisory as well as production roles and working closely with Bosch Front Line Management, the ramp up became a much more fluid process. Bosch’s management trusted MAU to organize and oversee MAU associates while they were able to continue to focus on separate functions of the production process.

Measurable objectives were exceeded.

MAU HAS GIVEN BOSCH THE ABILITY TO:

• Ramp up to maximum output in less than 30 days

• Exceed maximum output by producing 7 days a week,

24 hours a day

• Never miss a shipment, even as demand has

increased 27%

• Produce over 750,000 injectors with equipment and

staffing intended to produce only 600,000

New business model was established.

THE EFFECTIVENESS OF MAU’S plan has proven that certain functions of a production line can be effectively outsourced, freeing Bosch Charleston management and line associates to focus on more critical areas of production. This model has a broad range of application possibilities for Bosch, and is one of many strategies Bosch utilizes to remain a low cost supplier in a high cost industry.

Download PDF Version of Case Study Here.

Automaker Implements New Workforce Model

Laura Baareman — Thu, 09 Jun 2011 15:42:00 GMT

Problem/Background

BMW Manufacturing Co. in Upstate South Carolina needed
tobalance changing production volumes based on customer demand and model changeovers while stabilizing the core competency of its full-time associates. BMW Manufacturing first turned to a traditional outsourcing model to manage logistics with less than optimal results. So BMW Manufacturing searched for an alternative to handle non-core functions that would remain stable as production levels ﬂuctuated. MAU was selected and quickly created its newest division, “Tier One Solution,” to execute the day-to-day logistical operations through an innovation called Extended Workforce

Solutions

An Extended Workforce model was achieved by combining components of the client’s workforce and a third party workforce:

Competitive base wage.

To attract the best quality employees, an appealing wage rate comparable with the areas top employers was selected. The elevated pay rate in-turn allowed employees to invest in additional benefits.

Incentives to increase employee retention.

Similar to typical full-time positions, a five year tenure-based wage progression system was implemented along with a quality 401(k) program.

Comprehensive Benefits Package.

An expanded medical insurance plan was made available and affordable to all employees through employer contribution incentives. Time off was expanded to include thirteen paid holidays. Personal Protection Equipment (PPE), including footwear, prescription safety glasses and a uniform allowance were provided.

Full-Time employment model.

Equality, fairness, and team equity, amongst employees were promoted through a joint company effort, including on boarding, training, and new uniforms with the employee’s name.

Results

Results achieved for the mainline production improved during Phase One and are expected to improve with the expansion of the Extended Workforce in Phase Two.

Workforce stabilization increased.

Turnover improved by 6.4% year-over-year. Monthly turnover consistently improved month-over-month.

Employee Quality was improved.

Less than 30% of unplanned turnover was a result of poor attendance or unacceptable performance. An 80% average was achieved during employee performance reviews.

Employee Satisfaction rose.

A survey of associates revealed that on average 74% of employees would recommend working under the new model to a friend.

Team environment improved safety.

A 12.1% reduction in recordable accidents was realized year-over-year.

Download PDF Version of Case Study Here.

Recruitment Process Outsourcing: Kimberly-Clark Health Care

Laura Baareman — Mon, 06 Jun 2011 15:37:00 GMT

Headquartered in Roswell, Georgia, Kimberly-Clark Health Care was founded in 1872 and has become the leading provider of medical supplies in over 36 countries. Manufacturing and distributing medical supplies from sterilization wrap to high order electronic surgical solutions, Kimberly-Clark Health Care holds more than 600 worldwide patents and invented many of categories they compete in today. The company’s high standards and overall culture has received recognition from Fortune Magazine as one of the 100 best companies to work for. The talent of Kimberly-Clark Health Care’s sales and marketing force has allowed them to maintain their global focus assisting medical professionals.

Situation

Kimberly-Clark Health Care’s internal/external recruiting and hiring processes were inefficient. In addition to their sales focus, hiring managers relied on over 12 third-party recruiting firms to hire new sales people. Lengthy hiring times ensued and vacancies went unfilled for excessive periods of time resulting in unrealized sales. In addition, the lengthy interviewing process proved cumbersome for candidates and oftentimes allowed competing companies to recruit top candidates before they completed the entire Kimberly-Clark Health Care interview process.

Problem

The problem for Kimberly-Clark Health Care was one of time and efficiency. Without a single-source accountable for identifying, interviewing and quickly hiring quality candidates, months were added to the hiring process with candidate comparison and coordination issues. The sales teams’ ownership of the recruiting processes resulted in more time spent filling open positions, which included handling daily interruptions from third party recruiters, reviewing unqualified candidates, scheduling interviews and other administrative tasks. Ultimately, all these challenges proved to be distractions that reduced the sales teams’ time spent selling in the field. Short term, Kimberly-Clark Health Care needed to fill vacancies in their sales force due to unplanned turnover. Long term, a streamlined process was needed to manage the recruitment of top sales-people from the limited pool of qualified candidates in the sales territories.

Solution

Historically, Kimberly-Clark Health Care would have required longer working hours on top of managers’ current workload or adding headcount to coordinate with recruiters and candidates.

Kimberly-Clark Health Care partnered with MAU to develop and implement a comprehensive outsourced recruiting and hiring process completely transparent to applicants and hiring managers, but standardized across the US and Canadian sales teams. MAU also created a Vendor Management System to manage all outside recruiters and vendors, which brought standardized delivery of candidates by using uniform checklists and assessments. As MAU took on the non-core functions associated with hiring, Kimberly-Clark Health Care’s managers were free to focus on value added activities.

Outsourcing Objectives

Decrease hiring times while increasing candidate quality Allow Kimberly-Clark Health Care’s sales teams to focus on core competencies Create one point of contact that standardized the presentation & delivery of candidates.

MAU Outsourcing Solutions

Standardize the process, selection criteria, interview guides and process forms Institute quality checks with short feedback cycles to expedite the recruiting/selection processes Identify top talent for consideration by Sales Managers Seamlessly qualified, partnered with, and coordinated all 3rd party recruiting agency activities Coordinate all paperwork, travel, pre-offer, offer letter, background checks and drug screens reducing administrative burdens on sales teams.

Results

Kimberly-Clark Health Care was able minimize time spent reviewing submitted candidates since MAU summarized each candidate’s education, work experience and overall fit for the position for the Hiring Manager. MAU’s outsourced recruitment process saw improvements in all key areas compared to the previous hiring process including savings through less sales vacancies and reduced time to fill. As a respected partner, MAU proved its ability to deliver the right candidate, with the right qualifications at the right time.

Improved process to increase selling time.

Kimberly-Clark Health Care was able to reduce their involvement in the placement process by 60%, from 42 steps to 13 steps as MAU conducted the most time consuming functions.

Time to fill vacancies was reduced.

The amount of time to fill vacancies was reduced from 182 days to 106 days – a reduction of 41.9%.

Candidate quality was increased.

1 out of every 5 candidates was hired under the new process compared to 1 out of every 10 candidates previously-a 50% increase of quality.

New business model was established.

The effectiveness of MAU’s outsourcing solution proved that hiring and recruiting functions could be effectively outsourced. MAU’s hiring process was so successful that Kimberly-Clark Corporation instituted RPO models across all operations globally.

Testimonials
Randy Watson, Director, Global Performance and Productivity
Kimberly Clark - Health Care - Sales and Marketing

“We engaged MAU to design and implement a lean RPO solution for our Health Care sales & marketing organization based on their expertise and industry best practices. The results of our partnership were immediate. Within the first year, our recruiting/hiring processes were standardized and centralized thereby reducing our time to fill by over 40%, allowing us to capture in excess of $2.5 million in lost revenue from open sales positions.”

Susan Onyewuchi, Corporate Recruiting Supervisor
MAU, Inc. on behalf of Kimberly-Clark Global Sales, Inc.

“Working on site at Kimberly-Clark Health Care allowed me to be fully integrated and truly centralize the recruiting function at Kimberly- Clark Health Care’s headquarters. From there I was able to partner the field sales offices with MAU’s team of recruiters to meet each sales team’s specific needs and timelines. This close-knit relationship generated a constant line of communication benefiting both companies.”

Download PDF Version of Case Study Here.

Co-Pack Process: Stuffing Promotional Display

Laura Baareman — Wed, 16 Mar 2011 13:55:00 GMT

Introduction

MAU provided a comprehensive outsourcing solution for the baked goods manufacturer co-pack process, fulfilling demand for stuffing promotion displays. In addition to revising the process flow for the displays, MAU staffed and managed the entire process. While achieving and maintaining high quality, tight turnaround times were met and operating costs were reduced.

Situation

The baked goods manufacturer had a limited amount of time and resources available to assemble, build and pack a large number of stuffing promotional displays needed within a limited time frame.

This was a complex project invoving displays of different sizes that needed to be assembled and packed in a specific manner with three 16 oz. products: Herb, Corn, and Cubed stuffing.

During this critical time, the manufacturer needed to assign full-time staff to other key products.

Problem

The problem for the baked goods manufacturer was one of quanity, quality and delivery.

3,674 pallets of product needed to be assembled, build and packed in approximately five weeks.

Sales success at the store level was dependent on the quality of each display, therefore, it was imperative that the highest standards be met.

Solution

MAU partnered with the baked goods manufacturer to create a flexible, comprehensive outsourcing plan for the co-pack process that included a revised workflow Pull System model. MAU staffed and managed the entire outsourcing team of 60 associates.

Results

Compared to the prior year, improvements were made in all key measurable areas.

Download PDF Version of Case Study Here.

Bosch Corporation: EV-1 Fuel Injector Assembly

Laura Baareman — Wed, 16 Mar 2011 13:21:00 GMT

Introduction

For Bosch Charleston,MAU designed and implemented a program that was revolutionary…hiring, training and managing a workforce for a complex production line. It was truly a win-win situation. MAU exceeded all objectives for the existing line. Bosch was able to focus its resources on a new line, and launch it successfully. By creating a unique solution for Bosch, MAU established a proven model for outsourcing that Bosch can apply worldwide.

Background

Robert Bosch Corporation established its plant in Dorchester County, South Carolina, in 1974. Manufacturing fuel injection systems, antilock braking systems and diesel injection systems, the plant has achieved incredible growth and success. From 105 workers on opening day, Bosch Charleston today has over 2,000 associates. The skill of its associates and efficiency of its manufacturing lines have allowed Bosch to achieve record production quality in fuel injectors, antilock braking systems and other related products as they roll off its assembly lines every day.

Situation

EV-1 Fuel Injection Systems

Bosch Charleston found itself in a unique situation in 2002. Plans were underway to ramp down a successful fuel injector, EV-1, with a future timetable for sending it to the aftermarket division in Spain. An important new line of fuel injectors, EV-14, was under development and Bosch wanted to commit key EV-1 associates to it. '

Problem

The problem for Bosch was simple, yet complex to solve. They needed to efficiently produce EV-1 fuel injectors to fulfill rising demand at a time when Bosch management, staff and other resources were required to start up a new fuel injector line, EV-14. It was clear that the previous historical model for operating this production line, such as the use of temporaries to fill the gaps would not work for Bosch, who had high quality standards to be achieved.

Solution

Historically, Bosch would have turned to a fixed and variable cost solution. The fixed solution would include hiring more full-time associates, while the variable solution would include increasing overtime and utilizing temporary associates. MAU partnered with Bosch to create a variable cost, result-based outsourcing plan unique to Bosch’s situation. Every aspect of managing, staffing and training for the EV-1 assembly line was covered, the result being increased efficiency, flexibility and reduced costs.

1. MAU’s Outsourcing Objectives:

Stabilize and improve upon productivity, quality and delivery
Move more quality pieces through the line at less cost
Create business change flexibility model for Bosch Charleston

2.MAU’s Outsourcing Solution:

MAU Staffing, Scheduling and Training of work force on outsourcing project
MAU Management over day-to-day operations of the EV-1 assembly line
MAU Contract Associates to work in key steps of the production process

3.MAU’s Fulfillment of the Plan MAU established parameters for hiring and training of staff and fulfilled them in a very short time period.This flexibility allowed Bosch to adjust entire shifts to correspond with the ever-changing monthly production schedule (MPS).

At the beginning, MAU employed approximately 5% of the EV-1 workforce. That number quickly rose to 95% as MAU took control of the EV-1 assembly line. In partnership with Bosch, MAU monitored production, quality and delivery.

Results

In both tangibles and intangibles, the results for Bosch Charleston in the EV-1 ramp down exceeded all objectives and expectations. In fulfilling the plan on a day-to-day basis, MAU proved its worth as a valuable partner.

Download PDF version of case study here.

Firm Streamlines Co-Op Program

Laura Baareman — Mon, 07 Mar 2011 16:38:00 GMT

Problem/Background:

Robert Bosch’s Charleston, South Carolina facility utilized co-ops from colleges and universities, but did not have a standardized co-op program. As a result, neither Bosch, nor the co-ops received maximum value from their investment in the co-op program. Few students or school co-op offices were even aware Bosch had a co-op program. Bosch’s co-ops were often underutilized due to a lack of outlined responsibilities or expectations. Lastly, there were no mechanisms in place to gather constructive feedback from co-ops or supervisors that would lead to continuous improvement of the program. Recognizing the inefficiencies of running the co-op program internally, Robert Bosch requested MAU design, implement and manage a more effective co-op program in Charleston, creating a supermarket of entry level talent from which to hire.

Solutions:

MAU developed and managed a full-cycle, comprehensive co-op program consisting of standardized elements:

Core competencies. Success factors for entry-level positions were deﬁned within each respective discipline.

Rotational job descriptions. Accurate and consistent job descriptions were created from the core competencies to ensure development guidelines and training needs were communicated to co-ops and supervisors.

Rotational surveys. Surveys for co-ops and supervisors were developed to ensure key needs and skills were being met.

Relationship management. MAU established rapport with all stakeholders to include targeted schools, co-op offices, diverse student groups and supervisors.

Recruiting. Competition for co-ops was mitigated through representation at school job fairs, on site interviews and personal relationships with co-op office officials leading to expedited job offers to top students

Results:

MAU designed, implemented and manages a more effective co-op program for the Charleston location, thereby creating a supermarket of entry level talent from which to hire.

Deﬁned core-competencies. Success factors became transparent to co-ops and supervisors within respective disciplines.

Standardized rotational job descriptions. Co-ops now perform value-added activities because they have a clear understanding of their responsibilities and supervisors’ expectations.

Branded Bosch as an employer of choice. Bosch’s image improved and overall awareness increased across co-op ofﬁces and student bodies.

Attracted diverse talent. Increased Bosch’s exposure to diverse student groups (including SWE, NSBE, etc.).

Efﬁcient resource allocation. Co-ops now perform tasks previously completed by more senior level Bosch associates.

Lowered recruiting costs. Reduced cost per hire by 48% of goal resulting in a savings of $145,212 over a four year period

Download a PDF Version of Case Study Here.

Innovative Workforce Model: Kimberly-Clark Beech Island

Laura Baareman — Fri, 04 Mar 2011 16:31:00 GMT

Personal Care Division

Designing an outsourcing model to meet non-core production needs for the Personal Care sector of the largest Kimberly-Clark mill in the world. MAU’s solution enabled the Personal Care sector to focus explicitly on core functions after one of the largest expansions in Kimberly-Clark’s history.

Problem

Kimberly-Clark and MAU designed a new outsourced model based on Personal Care’s designated core and non-core functions. Two critical but non-core functions, Raw Material Flow and Operations Process Support, were outsourced to MAU. The combination of these functions was assigned to MAU employees to handle processes leading up to and following Kimberly-Clark’s personal care product production. MAU learned the mill’s existing processes and software, including an introduction to LEAN practices. This allowed MAU to manage the Personal Care raw material inventory which included: warehouse storage, inventory confirmation, issuing of raw materials to operations, and finally robotic palletizing of the finished product. Through this transition of key functions the Personal Care division was better enabled to focus on production, engineering, quality enhancements and key LEAN initiatives brought on by the mill’s expansion.

Kimberly-Clark’s Personnel Care division was increasing daily production from 6 million to 10 million diapers with the delivery of 5 new production machines. However, the necessary expansion created packaging and logistical challenges that the division needed to resolve without sacrificing their overall production goals. Kimberly-Clark needed to secure a strategic partner to assist in designing and implementing a solution that accommodated the division’s increasing production level, despite never outsourcing such significant processes before. Historically, Kimberly-Clark utilized MAU’s temporary staffing services before transitioning to various outsourcing models in 1997.

Solution

Clark met their increased production goals during the mill’s expansion by reallocating their resources and assigning non-core tasks to MAU. MAU met both productivity and quality requirements at a lower cost to Kimberly- Clark. Today, Kimberly-Clark relies on the MAU site team and a total average headcount of 300 outsourced employees. With improved efficiency, safety, and cost savings, Kimberly-Clark turned over key collateral duties in the internal operation to MAU so the mill’s leadership team can continue to focus on new technology and assets.

Testimonials

Bob Cross, Site Leader, Kimberly Clark - Beech Island Mill

“In our extremely competitive consumer product based environment, we are compelled to consistently evolve and refine the business model. MAU’s willingness to be forward thinking strategically, while working diligently on customer satisfaction of services received tactically, is critical and very much appreciated. I view MAU as a competitive advantage on our continuous improvement journey going forward.”

Kevin Ward, Personal Care Plant Manager, Kimberly-Clark - Beech Island Mill

“We've enjoyed a long successful partnership with MAU since 1984. Since the Beech Island mill is Kimberly-Clark’s largest production facility in the world, MAU’s partnership has proven to be very successful, through their commitment and flexibility, allowing us to solve a number of business problems that typically show up on very short notice. I look forward to continuing to work with the MAU team on creative solutions to significant business challenges to ensure the continued growth of both MAU and Kimberly-Clark.”

Download PDF Version of Case Study Here.

Outplacement: Firm Makes Strategic Reduction

Laura Baareman — Fri, 04 Mar 2011 16:27:00 GMT

Problem/Background:

A large entertainment company found themselves overextended as the industry changed and projected growth vanished. With the industry’s direction permanently altered, several divisions held little future prospects. After serious deliberating the ﬁrm reached a difficult decision - as the liquidation of an entire division was necessary.

The ﬁrm ﬁrst considered a traditional reduction-in-force (RIF). However, top management wanted to care for their people, maintaining a positive image within the community, and looked for solutions to avoid abandoning their loyal employees. MAU was selected to provide outplacement services for the affected employees and quickly coached them on re-entering the job market.

Solutions:

MAU’s Outplacement team was available during the entire process to provide:

Manager workshop prior to RIF- Preparation sessions for managers were provided covering Disparate Impact Analysis, communications training, executive coaching, and legal compliance.

Onsite during notiﬁcation- MAU personal counselors were present during the reduction announcement and were available to all employees anytime thereafter.

Post RIF workshops for displaced employees- Training was provided for employees covering ﬁnancial planning, internet job search techniques, resume preparation practices, interview strategies and networking.

Individual assessments- Each candidate was given a career, behavioral, and personality evaluation to make effective job recommendations by pairing individual traits and preferences with position requirements.

Access to library of resources- A resource center of materials including career continuation manuals, the National Personnel Association database, and a comprehensive list of internet job searches.

Results:

• Employees participated in program. 40% of affected employees participated in the outplacement program.

• Employees were placed in new positions. 43% of outplacement participants reported having found new jobs.

• Internal employee fears were stiﬂed. Providing outplacement services evidenced the value the company sees in its employees. Neither the corporate culture nor employee loyalty was jeopardized.

• Company image was maintained. Showing top management’s concern played a large factor in continuing positive community relations and goodwill.

• No lawsuits were ﬁ led for discrimination. Counseling and future focus prevented future litigation and liability

Download PDF Version of Case Study Here.