Innovative Labor Procurement:
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1 Innovative Labor Procurement: Blending a Contingent and Contract Workforce BD Biosciences Jim Macon Logistics Manager Canon Business Process Services Jack Losh Regional Account Manager Ted Ardelean Director, R&D Marketing sig.org/summit
2 Innovative Talent Procurement Blending Contingent and Outsourced Services Jim Macon Logistics Manager BD Biosciences Jack Losh Canon Business Process Services Ted Ardelean - Canon Business Process Services March 14, 2017
3 Presented by Jim Macon Global Logistics Manager Jack Losh Regional Account Manager Canon Business Process Services Ted Ardelean Director, R&D Marketing Canon Business Process Services 3
4 Agenda 1 The Logistics Talent Situation 2 The Gap Between Temp and Outsourced Service 3 The Innovation - Blending Temp and Outsource Models 4 Results and Lessons Learned 4
5 About Becton Dickinson & Co. BD Worldwide Segments BD Medical Diabetes Care Medication Management Solutions Medication & Procedural Solutions Pharmaceutical Systems BD Life Sciences Biosciences Diagnostic Systems Preanalytical Systems 5
6 About Becton Dickinson & Co. 6
7 About Canon Business Process Services, Inc. S u b s i d i a r y o f C a n o n U. S. A., a C a n o n G r o u p C o m p a n y S e r v i c e s BPO: AP, Claims Process, Auto Fin, Cr Card processing, Legal coding DPO: Imaging, Records Management, Print, Mail Office Services: Reception, hospitality, A/V, Admin Services Discovery: Physical, digital, consulting, technology Workforce: Material Handling, Logistics, Administrative, Light Industrial 4, p e o p l e S e r v i c e d e l i v e r y I A O P To p G l o b a l O u t s o u r c i n g On-site, Off-site, Offshore processing L e a d e r t o centers 2016 Six-sigma process excellence methodology Customized, supplementing client technology with CBPS technology BPO Business Process Outsourcing DPO Document Process Outsourcing 7
8 Getting to know you How many here have a contingent workforce program? Approximately what % of your total workforce are temp workers sourced through agencies? How many have asked: Is there a another source way of getting nonemployee talent? 8
9 1 The Logistics Talent Situation The problems and the drivers leading to the search for a better solution for workforce needs from the Logistics Manager s point of view Internal customers (Engineers, Scientists) not completely satisfied with Logistics service level. Temp Lacking visibility into chain of custody for high value assets Needed high reliability, 99%+ service level in chain of custody for high value assets (e.g. $80K items) Losing best, most productive, Temp workers at 18 months Significant management time spent on just putting people to work Unexpected absence (sick, PTO) put daily production at risk and consumed management time Two weeks to 1 month to gage the quality and fit of Temp associates Time spent reviewing resumes, interviewing, on-boarding, training, administrative Less time to plan and focus on strategic logistical matters 9
10 1 The Logistics Talent Situation Before Logistics Talent Manufacturing Floor Warehouse Packaging International Shipping Shipping & Receiving Talent Mail and parcel Shipping Receiving Local inter-plant transport / distribution Employees and Temp Talent Model Temp staff released at 18 months lost knowledge, productivity and investment Employees and Temp workers Production at risk Situation No guaranteed 100% staffing Variable demand with peaks and troughs Costs high(er) over-time, lower productivity Lacking ability to implement best practices or process excellence Employees Temp 10
11 1 The Logistics Talent Situation Logistics Organization James Macon Logistics Manager Shipping Supervisor Global Trade Specialist Stockroom and Inbound Receiving Supervisor Domestic Reagent Shipments Export Compliance Inbound receiving: Instrument raw materials and perishable product Direct to Customers HTS codes Inventory Analysts International Reagent Shipments Classify instrument components, options, Cycle Counting and raw material inventory and modules reconciliation RDC replenishment orders Track and expedite imports Kan Ban Coordinators Domestic Instrument and Spare Part Shipments Monitor sanctioned Parties List Material Controllers International Instrument and Spare Part Shipments Prepare and file shipment declarations RGA Coordinator Packaging MRB Coordinator Export Specialists/GTS Compliance/AES Filings Service Logistics Coordinator Cycle Counting and FG inventory Employees reconciliation Temp Mail and Parcel Distribution Inter-Plant Transportation Outsourced
12 1 The Logistics Talent Situation The Objectives take the best from Temp and Outsource Models Improve business processes - professional management of operations, visibility, metrics Increase internal customer service and satisfaction survey demanded improvements Temp Integrate Temp and Outsource supplier talent Stop the loss of good, productive workers upon 18 months Free up management time for strategic work and improvements Increase the reliability of the workforce and quality of workmanship Achieve these without an increase in cost over current level 12
13 1 The Logistics Talent Situation The process and decisions made Assess S&R Operation Outsource S&R to Canon Observe and compare Temp v. Outsource model Educate HR, CFO & Program Leaders Overtime Procedures Staffing needs Time-motion study Why? Encouraged by improvements identified and solutions recommended Outsource Model: Operational expertise included at no additional cost Steady staff level Cost competitive to Temp and in-house Relieved Mgmt from recruiting and admin work Why certain jobs should be converted from Temp to Outsourced How do we retain the good Temp workers after 18 months? How do we make Temp and Outsource suppliers co-exist for our maximum benefit? 13
14 1 The Logistics Talent Situation After Logistics Talent Manufacturing Floor Warehouse Packaging International Shipping Shipping & Receiving Talent Mail and parcel Shipping Receiving Local inter-plant transport / distribution Employees and Temps Outsourced Talent Model Vastly improved business processes and performance Improved customer service and satisfaction Lower costs no over-time, higher productivity QBRs & metrics Results Outsource provider expertise implements change Employees Temp 14
15 3 The innovation - Blending Contingent and Outsource Models A d d r e s s i n g what s i m p o r t a n t f o r t h e 3 p a r t i e s - c l i e n t, p r o vi d e r s, a n d a s s o c i a t e s Retain Knowledge Increase Output Performance Eliminate Co- Employment Risk Benefits for Associates Document and maintain client process knowledge Manage Experience - staff (associate) personal improvement plan - Cross training (ready to work in multiple jobs) - Leadership ability to teach and lead new associates Planning and Management reviews Cross-Training Flexibility Plan / Do / Check / Act One point of communication and accountability Clear reporting structure for service provider associates Provider determines pay rates, discipline, selection, termination, and growth opportunities for its staff Engagement activities maintain clear separation between employer and service provider staff Upward mobility through training and or certification Long-term employment Potential for hire by client Participation in company benefit programs 15
16 3 The innovation - Blending Temp and Outsource Models How an Outsource Service Turns Contingent Talent into More Value? Canon BPO Value Cycle Approach Assess & Analyze Design Process Transition Manage Operations Improve & Control Design Develop Deploy It Begins with Collaboration Operational Excellence Week # Location & Facilitator Activity Week One CBPS Regional Office Thursday Friday CBPS Certified Trainer 9/5/13-9/6/13 Week Two Central Source FCRA Mailroom Monday Friday CBPS Certified Trainer Implementation Manager 9/9/13-9/13/13 SME CC Process Owner Week Three Central Source FCRA Mailroom Implementation & Training Monday Friday 9/16/13-9/22/13 Week Four Monday Friday 9/23/13-9/27/13 Week Five CBPS Certified Trainer Implementation Manager SME CC Process Owner as needed Central Source FCRA Mailroom CBPS Certified Trainer Implementation Manager SME CC Process Owner as needed Central Source FCRA Mailroom Monday Friday CBPS Certified Trainer Implementation Manager 9/30/13 - SME CC Process Owner as 10/4/13 needed Week Six Central Source FCRA Mailroom CBPS Certified Trainer Monday Friday Implementation Manager 5/13/13 - SME CC Process Owner as 5/17/13 needed On-Boarding Course Training Classroom Courses 1-9 training for new employees Specialized Course Training Classroom Courses training for all employees Participants complete written knowledge checks Participants complete initial certification OJT Training on Production Floor Guided Practice Participants practice dummy documents on floor Participants practice dummy quality checks Participants complete full certification OJT Training on Production Floor Guided Processing Participants process live documents on floor (25% volume) Participants process live quality checks Participants are Week cross trained 4 OJT Training on Production Floor Guided Processing Participants continue to process live documents on floor (50% volume) Participants continue to process live quality checks Participant final Week inspected and 5 retraining if needed Go-Live Week 1 Week 2 Week 3 Live Production Document Process Agents in Full Production are inspected and re-trained, if needed Full Quality Processing Program operational Week 7-10 Site Management Team Document Process Agents are inspected and re-trained, if needed 16
17 3 The innovation - Blending Contingent and Outsource Models Process improvement examples Implement monthly operational reporting on 46 metrics Volumes, time, cost Implement chain of custody on all activities Floater pool of trained workers ensures daily production is met Implement enabling technologies for efficiency E.g. Automated notifications Incoming receiving consolidated into one process end-to-end Warehouse move logistical study, plan transport requirements to meet production requirements 17
18 3 The innovation - Blending Contingent and Outsource Models Example: Operational Data 46 metrics volume, cost, time, quality, performance to SLA/standard Master Production Report YTD for Month DOM. Picking (Pieces) DOM. Picking (TO's) INTL. Picking (Pieces) INTL. Picking (TO's) DOM. Packaging (Pieces) DOM. Packaging (TO's) INTL. Packaging (Pieces) INTL. Packaging (TO's) Transporation (Pickups) Transportation (Pieces) Internal Deliveries Ex De Jan 9,707 1,144 11, , , ,946 1,911 Feb 6, , , , ,094 1,083 Mar 5, , ,462 1,299 23, ,134 1,128 1st Qtr 21,355 2,559 32,839 1,385 we 24,646 should have 3,133metrics 76,989 and cost 1,572 data like 557 4,174 4,122 Apr 5, , ,608 1,414 18, these for every activity May 5, , ,382 1,220 23, Jun 2, , ,783 1,185 19, ,128 1,093 CFO BD Biosciences 2nd Qtr 13,619 1,589 44,554 1,813 31,773 3,819 61,252 1, ,023 2,971 Jul 2, , , , ,160 1,160 Aug 4, , , , ,220 1,220 Sep 1, , ,385 2,324 17, ,309 1,307 3rd Qrt 8,223 1,296 41,183 1,408 35,249 4,014 49,176 1, ,689 3,687 Oct 1, , ,484 2,316 23, ,017 1,015 Nov 1, , ,648 2,021 20, ,058 1,056 Dec 1, , ,817 2,109 21, th Qtr YTD TOTAL 46,983 5, ,193 5, ,617 17, ,832 5,854 1,911 13,778 13,695 Mo Avg 3, , ,635 1,451 21, ,148 1,141
19 3 The innovation - Blending Contingent and Outsource Models Automotive Industry Situation Fabrication workload in prototype build fluctuates significantly Long lead time needed from hire to productive workers Significant management time consumed in selecting, training people issues 9 Temp agencies supplying workers Lost the investment in people each year Temp model tried for years with limited success Action Adopt Core-Flex model steady core + Temp Result 100 jobs <50 core and >50 flex One contract, staff ready and productive when needed Ability to meet production schedule with certainty Avg cost reduction approximately $14K per position per year Improved safety record Knowledge retained with core group Representative Jobs Receiving Inspection & Warehouse Supervisors - Parts Control, Shipping, Parts Inspection, Receiving Parts Control Lead and Technicians Parts Inspectors Precision Measurement & Analysis Inspectors Administrators Mail room clerks Shipping & Receiving clerks Fabrication Assembly workers Weld station technicians Paint station technicians 3D Print Technicians Buyers Budget Control Admins Part Time 20 hrs week Design Project Lead 200 hours per year Suspension and Design Performance Materials Handlers 19
20 4 Results and Lessons Learned Contingent and Outsource models cost about the same. The Outsource model gives you more value Gained back management time Outsource service solves operational problems, Temp service aids short-term production Lower risk Establish an understanding between MSP and Outsource providers about worker conversion The relationship between MSP/Temp Provider and Outsource Provider must be healthy Temp workers will leave for <$1 / hr A plan to grow and retain worker is needed Temp-to-Perm Temp Model is great for screening and assimilating workers Outsource providers have Floater Pool that achieves the same Establish time limit and FTE level that is optimum for Temp or Outsource Model use 5 FTE is a good start 20
21 Questions Thank you Advancing Business Performance to a Higher Level
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