Our client, a Tier 1 supplier, has been contracted to install & commission a major offshore asset. They are responsible for the recruitment of contractors for all crafts & workscopes & were paid contractor day rates.
There were in excess of 800 people required to complete the full scope.
The recruitment process was losing the client time, money & their reputation. The client had lost 4066 days due to missed mobilisation & it took an additional 20 days, beyond the required on site date to mobilise successful candidates. Incurring costs, estimated at £0.462M, & lost revenue, estimated at £1.9M.
A value stream map, to identify problem areas, was undertaken. This was executed by human resources, recruitment team, resource coordinators, hiring managers & recent recruits, sponsored by Client & Operator Management. 200 issues were identified which were addressed in a Kaizen Event. During the event it was found that there were two duplicated recruitment procedures running in parallel of which 65% of the steps were the same, renewing medicals & training certificates were being undertaken even though the contractor had valid certification & references were not being checked. The process was streamlined, waste & unnecessary process steps eliminated, single lean process created, renewal of valid certification removed, checklists, job descriptions, contractor feedback forms & user guides created & implemented.
Removal of repeating valid certifications & medical resulted in client cost avoidance of £1.6M & £0.24M respectively whilst revenue was increased in excess of £2M in a year, through 92% reduction in days lost due to missed mobilisation dates.
The average time to fill offshore positions finally met Service Level Agreement of 5 days, this & the joint sponsorship of the initiative strengthened the Operator Client relationship.
Clients reputation improved, resulting in an increased number of applicants per position advertised & reduced manpower churn through an improved contractor experience.
As the people working within the process defined the new process the change was implemented efficiently & effectively.
The ability to measure the performance & gain feedback from contractors resulted in the improvements being sustained.