CPU (Cost per Unit) Workforce Management Solution
Many manufacturing and distribution companies labor with a dilemma. Hiring short-term help doesn’t support long-term goals. You give up accountability and jeopardize cost-saving initiatives. Outsourcing, your other option, also has inherent drawbacks, such as loss of operational control.
SelecSource offers flexibility and a fixed cost structure based on results. You benefit from a higher quality workforce at significantly lower operation costs.
We start by assessing each work element within your process to establish and validate current performance and completion time. Next, we create a best-practice method that becomes the benchmark used to train workers and make sure they stay true to process. We “box out” a designated work cell or area within your facility, develop an incentive pay plan, then staff the cell with a labor force and a trained site manager who monitors performance and keeps us agile.
We assume full accountability for the cost, quality, and output of our cell or area, so you can stay focused on what you do best; making your core business more competitive. Our method will implement proven, innovative, workforce solutions to give you a fixed lower labor cost, improved output, and reduced workforce management issues.
How much could we lower your operating costs?
Frequently Asked Questions
How can you do it for less than me?
We are working with tools that are not available to most companies. We have the ability to utilize incentive programs, more management attention, specialized software, etc. Most companies cannot institute an incentive program in specific areas and are often short on management and engineering resources needed to implement the tools required. It is not that companies cannot do what we do, it is the fact that low-level labor areas are not the top priority for most managers. We laser focus on these areas and use every tool available to make an impact.
Will I lose control of my process or product?
That is the beauty of the CPU Workforce Model; you maintain control of both your processes and your product. No shipping in and out, you can keep your finger on the pulse of your operation. We will even provide specific reporting to communicate information that is important to you.
How do you maintain quality?
We don’t. We improve it. People have the wrong impression, that when incentives are used, quality suffers. Well-designed incentives actually improve quality. Let me explain. We not only put incentives in place, we also include disincentives for poor quality. Employees are only paid on first-quality throughput, and they lose incentive for passing on product not up to standard. We also teach methods and processes that are enforced as part of our program. Due to this, quality checks are inherently in the process that were not there previously. And yes we understand there is a cost to quality, we can implement a program that reduces billing for sub-par quality and increases billing for exceptional quality. All product quantities and quality is checked by you as work is completed. This assures your quality processes have independent inspections.
What type of work do you provide?
We specialize in manufacturing and distribution. Picking, packing, assembly, value-added services, repack, stickering, truck unload, etc. We do require a minimum of 25 employees within a department.
How am I invoiced?
What is the cost to me?
That is the beauty of the program, there is no cost to you. I know it sounds too good to be true. The fact is the only loser in the program is the inefficiency in the process. If we cannot remove these inefficiencies, or find a way to save you money, we will tell you that your operation is not an application. 50% of our assessments are not applications.
What are some other reasons people use our program?
Cost savings is usually what gets us in the door; however, there are several other factors customers have mentioned. Increased management attention to areas, not only do we manage the area, but we free up the previous management. Companies basically get another manager or supervisor without going through corporate for approval. Customers receive additional engineering resources that can complement current resources. We increase capacity through increased output per labor hour. This can reduce equipment needs and reduce capital expenditures. Customers have the benefit of fixed cost to predict and budget based on a stable unit cost. We also create the ability to meet seasonal demands without increasing unit costs or headcount.