CASE STUDY

Workforce Optimization Helps Engineering Services Provider Save US$18 Million

Sep 23, 2016

Business Challenge

Workforce planning and optimization. A professional engineering services provider wanted to synchronize its workforce allocation with corporate goals, in order to improve productivity and save labor costs.

Situation: Ground workforce staffing not synchronized with corporate goals

The engineering services provider’s corporate sales forecasts, labor plans, and budgets were not collaborating with the ground staffing, scheduling, and operational needs of individual plants, work-floors, and work centers. This lack of synchronization was getting reflected in the corporate goals regarding productivity, sales, and revenue. The client wanted to implement an improved workforce management solution.


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Solution Offered

Use of forecasting and regression models, workforce analytics and payroll management

We utilized a bottoms-up framework, factoring in the needs of each plant, work centers and workload drivers, and made use of forecasting and regression models, workforce analytics and payroll management solutions. This helped in precisely determining the payroll hours, workforce allocation and labor planning for the each location’s workload, while improving the employee productivity and the likelihood of meeting their corporate revenue goals.

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Business Impact

US$ 18 million savings through improved workforce planning

The engineering services provider received a new operating model through which it was able to link payroll hours to service requirements and corporate goals. Based on this, the client improved its staffing level, which reflected as US$ 18 million savings in the annual balance sheet.

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