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Reduced Costs and Improving Productivity in Manufacturing

Background

This company produces and distributes pharmaceutical products to over 2,600 outlets across the UK. Key facts:

  • the factory has a workforce of 1200
  • 500 of the workforce are managed by Randstad on a flexible basis
  • weekly variance in numbers covers a range of +/- 25%
  • an additional 50 staff are required for weekends
  • roles cover varying skill levels

The challenge

Wished to increase its productivity by 25% - from 81,000 million to 100,000 million units per annum.

The assessment

Randstad advised expanding weekend shift-work. The inhouse services team undertook an analysis of existing work practices and procedures. Randstad identified the following needs:

  • re-structure working hours and reduce overtime pay rates
  • secure buy-in from existing staff to train new recruits
  • anticipate, and then manage resistance from permanent staff to radical changes in work patterns
  • recruit 40 skilled technical operators in 3 weeks to expand weekend production capacity
  • devise and deliver 3-10 week training programmes (skills dependent) for new starters
  • deliver a secure supply of workers prepared to work 23hrs per week with no guarantee of additional hours

The solution

In response, Randstad:

  • designed a restructured, more cost-efficient working pattern
  • communicated changed patterns with absolute clarity to the existing workforce
  • provided briefing notes and seminars on changes to existing workforce
  • recruited a skilled engineer to oversee recruitment for technical operator roles
  • established tightly defined job and person descriptions for new roles
  • created a customised one-to-one recruitment process
  • ensured 23hr + no guarantee working was clearly communicated throughout recruitment
  • developed a bespoke training process, administered onsite by the Randstad-recruited engineer

The outcomes - reduced costs, improved productivity

Company management envisaged that the volume of production on the first weekend would be in the region of 180,000 – 200,000 units. In the event, production topped 340,000 units thanks to Randstad’s restructure.

An additional line was added in December 2010. In May 2011, a further 7 lines were added, requiring the recruitment of 63 extra staff. The recruitment exercise was undertaken by Randstad and all posts fulfilled within four weeks of commencement.

Randstad additionally manages the onboarding of all Technical Operators, saving £1,545 per person per year.

pharmaceuticals2

"Randstad helped us to increase weekend output by over 90%. The company's delivery was brilliant"

Production Team Manager

Member of Member of REC