Manufacturing Production Assembly

A major automotive engine manufacturer has long used temporary staffing agencies for workforce flexibility.

manufacturing labor case study

Challenge

The engine manufacturer gained flexibility from the staffing agencies but immediately experienced:

  • Poor quality from the contingent workforce
  • Increased costs due to lower productivity and constant training of new temps
  • Floor level management had to increase focus on the contingent workforce instead of their own employees and overall operation

Solution

The temporary agency is replaced with an Insource performance-based labor program that provides:

  •  A turnkey-managed service responsive for daily staffing needs of 16 sub-assembly lines
  •  A scorecard to measure clearly defined performance objectives
  •  A train-the-trainer model, which relieved supervisors of this burden

Result     

The manufacturer’s supervisors were able to solely focus on their own employees and the operation. In addition, Insource delivered these improvements:

  • Headcount reduction of 8 assembly associates due to increased productivity
  • A 22% cost reduction for every engine produced
  • Training by Insource saved an additional $50,000 annually

The Challenge of Including Temp Workers in the Pay-for-Performance eBook

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