03 Jan Staffing Services Cycle Time Reduction
A staffing services company’s primary customer was complaining that it was taking too long to place personnel in specific job functions. Specifically, qualified personnel needed to be in place at the client firm within no more than 32 days. 60% of all placements were failing to meet this deadline. Additionally, the average time to placement was currently 55 days.
Reduce the number of nonconforming placements to less than 5% and reduce the average time for placement from 55 days to 20 days.
Lead by an eMRI consultant and using the DMAIC methodology, the client’s team was able to discern several measurement system issues. Primary was how days-to-placement was computed and tracked by the client and the supplier. Correcting the measurement system in addition to streamlining process flows, resulted in an 80% reduction in nonconforming placements. Additional statistical analyses using ANOVA, AMOM, etc. allowed for further improvement. Cumulatively, nonconforming placements were reduced to 8% and average time to placement was reduced to 18 days.
$6,000,000 in profits by retaining client