Actual Service Contract

Our profit sharing business model already boasts a proven record of success

Today, a manufacturer frequently finds itself being serviced by numerous outsourcing providers either at manufacturing sites or at various production processes. Not only has this situation placed a growing burden on the client in managing a large stable of providers, it has also diluted accountability as well. While this troubling trend is becoming more and more manifest, OUTSOURCING's profit sharing business model has established a proven performance record because we draw on our extensive knowledge base built up over the years and by promoting turnkey service contracting through the integration of our business resources with that available to our clients.

Our goal is clear: to become our clients' service provider of choice. We can also respond flexibly to any fluctuation in demand for workers resulting from any increase or decrease in production volume.

Company A

  • problem

    Production efficiency must be improved,
    but the causes of the problems,
    as well as their solutions, are unclear

  • Establishing a Partnership

    Two process engineers from Company A are brought in on loan;
    they work together with our staff to develop a project regime

  • Identifying the Problems
    • Because worker remuneration is based on seniority-based hourly wages, need to reflect performance with commensurate pay
    • Need to sustain worker motivation
    • Need to review manufacturing equipment and production processes to improve productivity
    • Need to develop indices for work (performance) management
  • Results of Business Resources Integration

    Standardaization and improvement of production processes

    [Remuneration system reevaluated]
    Shift to pay by performance;
    abandon hourly wages for incentive-based payment system; regulations revised and renewed
    [Personnel system revamped]
    Onsite workers divided into two categories
    Production personnel and special skills personnel;
    promotion system enabling workers to move up from production personnel to special skills personnel adopted

    Maintenance and improvement of high worker motivation

    Production process bottlenecks identified Required facility capacity determined
    Optimal facility operating usage established
    Required workforce (personnel planning) set Standard work hours established
    Production management systems inspected and revised

Operating system yielding consistent long-term growth established

Company B

  • problem

    To cut costs and improve production efficiency,
    the company needs to shift from outsourced process contracts to turnkey project contracts

  • Establishing
a Partnership

    Problems are identified, solutions developed and progress monitored in periodic briefings held between Company B reps (production and process managers) and our staff to launch reform program

  • Identifying the Problems
    • Need to establish compliance regime addressing shift to turnkey project contracts
    • Need to improve worker retention rate
    • Need to deploy workers who can efficiently respond to swings in production demand
    • Need to clarify chain of command
    • Need to shift to multi-functional workers
  • Results of Business Resources Integration

    Compliance regime overhauled

    • Regime revamped to meet new compliance standards
      Docmentation improved and procedural issues clarified
      Status of progress monitored

    Retention rate improved

    • Investigated causes of worker truancy and improvement plan drafted
      Status of progress monitored

    Processes reevaluated and improved to shift to turnkey project work

      Process analysis
      Production plans and past performance reviewed

    Readership training
program adopted

    Programs to develop
multi-functional workers adopted

    • Instituted program to enhance and expand worker skills
      Workers periodically rotated to other work categories

Operating system yielding consistent long-term growth established