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.

CASE1 | 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

CASE2 | 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