Meat production

Why did the Client decide on process outsourcing?

• the 18/36 limit, which started to "run out" - at some point it turned out that people who came X time ago cannot continue to work under the APT, and the Client does not really want to take them on due to the costs (employment under the Employment Agreement), but taking into account work ethics/the Employment Promotion Act, we should not share this with external parties;
• probably a snippet of this from other plants
• the desire to optimise work within the organisation (temporary work = recruitment of an employee, processing in terms of legality and stay of work and transferring under supervision to the Employer User for further implementation, training, solving problems encountered, etc. / outsourcing = recruitment of an employee, processing in terms of legality and stay of work and further supervision, implementation, training, solving problems in-house;
• is combined with the above: reduction and more effective control of operating costs (full-time positions, workload of X people, goods sent to customers in the form of X number);
• a common goal for both parties: the desire to do as much as possible and to achieve the best possible pace, while maintaining the fewest possible errors and the fewest number of hours, which makes the company's contractors happy and Folga is happy because it is able to gain more / temporary work - unit rate, payment for hours, where this responsibility is dispersed by delegating person X to work and transferring it to further supervision);
• risk sharing (in the case of APT it is negligible, in the case of outsourcing it comes into play in several stages, e.g. "lost benefits" - another motivator to do the job as best as possible, forcing the external company to pay attention to and train people in this area on things that, as part of temporary work, would only be the responsibility of the Employer User;
• the dot above, i.e. as much as possible, as quickly as possible, enhances the effect of business scaling.

What benefits did the customer expect?

• optimizing the work of your employees;
• budget optimization;
• transferring more tasks to the shoulders of the outsourcing company;
• drawing attention to the quality of the work performed (the risk of, for example, repackaging products is associated with work that, when performed twice, results in doubling the working hours, and not the tonnage and effect for which settlement is actually made).

Main duties and responsibilities of an outsourcing company

• Section 1: processes of packing and forming hams, bacon, stuffing sausages, packaging frankfurters and dry products;
• Section 2: packaging processes for poultry/pork products (sausages, pork neck, cutlets, chicken, shashlik, grilled products);
• Section 3: production processes related to sausage stuffing and casing cutting/pouring/de-fatting;
• Limit on the consumption of X assortments in production;
• Production of defective products and X tonnage standards, which are within the margin of error
• Risk of reducing remuneration in a situation where the minimum throughput specified in the order is completed;
• Taking care of the weight of products.

How does the outsourcing company ensure supervision of the process? Structure and activities within the structure? What steps does the outsourcing company take in terms of personnel management?

What are the outsourcing company's strategies for maintaining or improving efficiency? How does the outsourcing company deal with any quality issues?

• before starting process X, an on-site analysis is always carried out, the staffing is calculated, and an attempt is made to perform the activity alone/with the help of experienced people;
• the norms, tempos, number of beats per minute, etc. are examined – if they are acceptable, cooperation is initiated, however, if they are excessive, a dialogue is conducted and an attempt is made to work out a compromise with the Plant in order to reduce them;
• when undertaking process X, the factor of introducing new people is taken into account and time is needed to adjust to the start-up activities;
• the main strategy is to appropriately reward people who are most involved in a given process, present the organizational grid and development opportunities (for example, a line worker who was an operator and is now a foreman), within processes where teamwork is important, attention is paid to people who have possible predispositions and arguments to try to build something further with them;

What are the key performance indicators that the outsourcing company uses to monitor process quality and efficiency?

• summary reports, divided appropriately by departments and processes;
• hourly workload vs quantity realized and tonnage generated;
• taking into account internal and external factors (shortage of workers for a given process, failures and maintenance, problems with the processed product, etc.);
• regular meetings summarizing periods of 1-2 weeks with Production Management

Challenges faced and factors determining success on both sides

• problems with a shortage of people in a given process à the need for close cooperation between departments within the outsourcing company;
• technical problems resulting mainly from the age of the machines – the need for close cooperation with the technical department, ongoing reporting of problems, showing the scale of failures in the X month, translating this into results that motivate further action and improvements; cooperation at one of the plants and a joint initiative to train operators in simple technical issues that do not require the intervention of the technical department;
• problems with a shortage of orders on the Client's side and a joint risk assessment, dialogue with the sales department and minimizing, for example, waiting for the work of the Outsourcer's staff;
• the humdrum of everyday life, problems among people in the outsourcing team and the need for constant communication and exchange of information;
• meeting expected performance and set budgets versus the need to monitor everything described above piece by piece;
• communication problems with LATAM – translators, translations, involvement of the PL/ESP/UA “liaison”;

Housing estate in Kutno

• competitiveness for lower standard staff hotels and other facilities in Kutno;
• better location than the economic zone;
• higher standard (limited number of people in each room, no bunk beds);
• an advantage for large employers – the ability to manage and control all employees using the rental in one location;
• completely new equipment, Internet access, televisions, DVB-T);
• security ensured by CCTV;
• photovoltaic facilities/energy-saving buildings with underfloor heating and heat pumps, which ensure low maintenance costs in the following years + the investment gains under CSR by reducing CO2 emissions, for example;
• attractive location = the zone employs >9,000 people and is growing;
• comfortable housing is an additional factor influencing employment opportunities, it influences non-wage pressures; from the perspective of outsourcing management it gives the possibility of managing people on site, immediate distribution of information e.g. schedules/changes in production;
• the location ensures easy access to workplaces, where an employee can choose to cycle/walk instead of using public transport;
• growing market for outsourcing/temporary work services – growing opportunities to acquire new clients.