innovative labor procurement

Blending a Contingent and Contract

Workforce

Innovative Labor

Procurement:

BD Biosciences

Jim Macon

Logistics Manager

Canon Business Process Services

Jack LoshRegional Account Manager

Ted ArdeleanDirector, R&D Marketing

sig.org/summit

Innovat ive Talent Procurement – Blending Cont ingent and

Outsourced Serv ices Jim Macon – Logistics Manager BD Biosciences

Jack Losh – Canon Business Process Services

Ted Ardelean - Canon Business Process Services

March 14, 2017

Jim Macon

Global Logistics Manager

Ted Ardelean

Director, R&D Marketing


3

Presented by

Jack Losh

Regional Account Manager


Agenda

2 The Gap Between Temp and Outsourced Service

1 The Logistics Talent Situation

4 Results and Lessons Learned

3 The Innovation - Blending Temp and Outsource Models

4

5

About Becton Dickinson & Co.

BD Worldwide Segments

BD MedicalDiabetes Care

Medication Management Solutions

Medication & Procedural Solutions

Pharmaceutical Systems

BD Life SciencesBiosciences

Diagnostic Systems

Preanalytical Systems

6

About Becton Dickinson & Co.

S e r v i c e

d e l i v e r y

• On-site, Off-site, Off-

shore processing

centers

• Six-sigma process

excellence

methodology

• Customized,

supplementing client

technology with

CBPS technology

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

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

4 , 5 0 0 p e o p l e I AO P To p 1 0 0

G l o b a l

O u t s o u r c i n g

L e a d e r 2 0 0 7 t o

2 0 1 6

7

About Canon Business Process Services, Inc.

BPO Business Process OutsourcingDPO Document Process Outsourcing

8

Gett ing 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 non-

employee talent?

9

The prob lems and the dr i vers lead ing to the search fo r a be t te r so lu t ion

fo r work fo rce needs… f rom the Log is t i cs Manager ’s po in t o f v iew

Temp

• Internal customers (Engineers, Scientists) not completely satisfied with Logistics

service level.

• 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


10


• 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

• 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

Situation

Before

Employees

Temp

Logistics Organization James Macon

Logistics Manager

Shipping Supervisor Global Trade SpecialistStockroom and Inbound Receiving

Supervisor

Domestic Reagent Shipments Export ComplianceInbound receiving: Instrument raw

materials and perishable product

Direct to Customers HTS codes Inventory Analysts

International Reagent ShipmentsClassify instrument components, options,

and modules

Cycle Counting and raw material inventory

reconciliation

RDC replenishment orders Track and expedite imports Kan Ban Coordinators

Domestic Instrument and Spare Part

ShipmentsMonitor sanctioned Parties List Material Controllers

International Instrument and Spare Part

ShipmentsPrepare and file shipment declarations RGA Coordinator

Packaging MRB Coordinator

Export Specialists/GTS Compliance/AES

FilingsService Logistics Coordinator

Cycle Counting and FG inventory

reconciliationMail and Parcel Distribution

Inter-Plant Transportation


Employees

Temp

Outsourced

12

The Object ives… take the best f rom Temp and Outsource Models

Temp

Improve business processes - professional management of operations, visibility, metrics

Increase internal customer service and satisfaction – survey demanded improvements

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


13

The process and decisions made


Assess S&R

Operation

Overtime

Procedures

Staffing needs

Time-motion study

Outsource S&R

to Canon

Why? Encouraged

by improvements

identified and

solutions

recommended

Observe and

compare Temp v.

Outsource model

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

EducateHR, CFO & Program

Leaders

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?

14


• Logistics Talent

• Manufacturing Floor

• Warehouse

• Packaging

• International Shipping

• Shipping & Receiving Talent

• Mail and parcel

• Shipping

• Receiving

• Local inter-plant transport /

distribution

Employees

and

Temps

Talent Model

Outsourced

• Vastly improved business processes and

performance

• Improved customer service and

satisfaction

• Lower costs – no over-time, higher

productivity

• QBRs & metrics

• Outsource provider expertise implements

change

Results

After

Employees

Temp

15

3 The innovation - Blending Contingent and Outsource Models

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

Retain

Knowledge

Planning and

Management reviews

Cross-Training

Flexibility

Plan / Do / Check / Act

One point of

communication and

accountability

Increase Output

Performance

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

Eliminate Co-

Employment Risk

Upward mobility through

training and or

certification

Long-term employment

Potential for hire by

client

Participation in company

benefit programs

Benefits for

Associates

Addres s ing wha t ’s impo r t an t f o r t he 3 pa r t i es - c l i en t , p rov ide rs , and as s oc ia tes

16

Improve &

Control

Assess &

Analyze

Design

ProcessTransition

Manage

Operations

Canon

BPO Value

Cycle

Approach

Operational Excellence

Design

Develop

Deploy

It Begins with

Collaboration

Week # Location & Facilitator Activity

Week One

Thursday – Friday

9/5/13 - 9/6/13

CBPS Regional Office

CBPS Certified Trainer

On-Boarding Course Training

Classroom

Courses 1-9 training for new employees

Week Two

Monday – Friday

9/9/13 - 9/13/13

Central Source FCRA Mailroom

CBPS Certified Trainer Implementation Manager–SME CC Process Owner

Specialized Course Training

Classroom

Courses 10-24 training for all employees

Participants complete written knowledge checks

Participants complete initial certification

Week Three

Monday – Friday

9/16/13 - 9/22/13


CBPS Certified Trainer Implementation Manager–SME CC Process Owner as needed

OJT Training on Production Floor

Guided Practice

Participants practice dummy documents on floor

Participants practice dummy quality checks

Participants complete full certification

Week Four

Monday – Friday

9/23/13 - 9/27/13




Guided Processing

Participants process live documents on floor (25% volume)

Participants process live quality checks

Participants are cross trained

Week Five

Monday – Friday

9/30/13 - 10/4/13




Guided Processing

Participants continue to process live documents on floor (50% volume)

Participants continue to process live quality checks

Participant final inspected and retraining if needed

Week Six

Monday – Friday

5/13/13 - 5/17/13

Central Source FCRA Mailroom CBPS Certified Trainer Implementation Manager–SME CC Process Owner as needed

Go-Live

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

Implementation

&

Training

Week 1

Week 2

Week 3

Week 4

Week 5

Live Production

How an Outsource Serv ice Turns Cont ingent Talent into More Value?

3 The innovation - Blending Temp and Outsource Models

17

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


Master Production Report - 2016 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

External

Deliveries

Building

1

Jan 9,707 1,144 11,027 555 6,338 839 26,697 594 282 1,946 1,911 35 1,139

Feb 6,117 715 5,164 245 8,846 995 26,733 507 135 1,094 1,083 11 606

Mar 5,531 700 16,648 585 9,462 1,299 23,559 471 140 1,134 1,128 5 573

1st Qtr 21,355 2,559 32,839 1,385 24,646 3,133 76,989 1,572 557 4,174 4,122 51 2,318

Apr 5,726 700 13,900 558 10,608 1,414 18,432 470 140 929 928 1 521

May 5,134 552 12,490 773 9,382 1,220 23,280 466 134 966 950 16 515

Jun 2,759 337 18,164 482 11,783 1,185 19,540 417 151 1,128 1,093 5 564

2nd Qtr 13,619 1,589 44,554 1,813 31,773 3,819 61,252 1,353 425 3,023 2,971 22 1,600

Jul 2,151 332 11,827 422 5,832 697 15,992 493 150 1,160 1,160 0 572

Aug 4,629 734 18,428 568 8,032 993 15,561 478 171 1,220 1,220 0 615

Sep 1,443 230 10,928 418 21,385 2,324 17,623 528 163 1,309 1,307 2 639

3rd Qrt 8,223 1,296 41,183 1,408 35,249 4,014 49,176 1,499 484 3,689 3,687 2 1,826

Oct 1,131 134 13,748 352 25,484 2,316 23,393 531 157 1,017 1,015 2 491

Nov 1,098 163 11,967 371 24,648 2,021 20,207 448 149 1,058 1,056 2 507

Dec 1,557 202 5,902 230 21,817 2,109 21,815 451 139 817 844 2 430

4th Qtr

YTD TOTAL 46,983 5,943 150,193 5,559 163,617 17,412 252,832 5,854 1,911 13,778 13,695 81 7,172

Mo Avg 3,915 495 12,516 463 13,635 1,451 21,069 488 159 1,148 1,141 7 59818

Example: Operational Data

46 metrics – volume, cost, time, quality, performance to SLA/standard


… we should have metrics and cost data like

these for every activity…

CFO BD Biosciences

19

Automotive Industry

Representative JobsReceiving 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

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

• 100 jobs – <50 core and >50 flex

Result

• 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


20

• 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

4 Results and Lessons Learned

Advancing Business Performance to a Higher Level

Thank [email protected]

[email protected]

[email protected]

www.cbps.canon.com

Questions

mailto:[email protected]



http://www.cbps.canon.com/

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Innovative Labor Procurement:

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Canon Business Process Services Ted Ardelean [email protected]

Canon Business Process Services John "Jack" Losh [email protected]

BD Biosciences James Macon [email protected]

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