Outsourcing in mechanical engineering. Outsourcing as an effective means of penetrating a new market. In what cases is outsourcing of production activities relevant?
Types of production outsourcing
Industrial service
What types are used
American companies most actively use transportation outsourcing – 44.7% of companies. Also outsourced are production, equipment maintenance and information systems maintenance.
The use of production outsourcing in American companies
Industry Week's annual study - IW Census on Manufacturing (3,000 US manufacturing companies)
Outsourcing of maintenance of industrial buildings and equipment
Expanding the company's capabilities and increasing efficiency are the main criteria for switching to outsourcing in global companies
Source: Survey of 29 manufacturing companies in the US, Europe and Australia conducted by Plant Maintenance Resource Center
Among their advantages, companies providing services for the maintenance and repair of equipment and workshops indicate the presence of their own qualified personnel, their own repair shops and a developed network of offices/production sites
| Repair | Content | |||||||
| Company | Industrial Services Contractors | Wyko Industrial Services | FBG Service Corporation | ABBCO | ||||
| Services | etc. | etc. | ||||||
| Clients | Turnover £150 million. Only works in England | Alliant Energy – 188 cleaning sites and another 2,400 sites maintaining grounds (lawns) | Anhauser Busch, Briggs & Stratton, Peabody Coal, Toyota | |||||
Wyko has 200 offices/repair shops across England. Availability of our own workshops with equipment for repairing electric motors, pumps, machines, etc.
The production of a typical industrial company in the West operates like an assembly line, where only steel body parts are made, and components from suppliers come directly to the assembly line
Interaction with suppliers is based on reducing the number of suppliers and establishing partnerships with them.
- Delivery of units ready for installation on machines
- delivery directly to the conveyor
- integration of planning systems with suppliers
Outsourcing in Russian companies
« Subsistence farming" - a typical characteristic of the device of a Russian manufacturing company. Own production of blanks (foundry and forging shops), own repair shops, own transport shops, etc.
« Production fatigue» - production facilities are worn out, the level of utilization is low, it is difficult to achieve the required quality
« Limited Resources» - refurbishment costs are required. Limited resources do not allow investing in the full complex. You have to choose what to invest in.
« We must decide!» - which workshops/business areas to develop and which not. Decide how important procurement and auxiliary production is for the business
Production diagram of Irbitsky Motorcycle Plant OJSC
| For | Against | |
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The main criteria for outsourcing are the lack of competitive advantages and the non-strategic position of this operation or function for the company
Notes:
1. Determining how strategic a type of operation is for a company is unique for each organization and is subject to the subjective perception of managers
2. “Reorganize” - it is possible to outsource in the short term, but in the long term it should be returned to the control of the company
3. ? (Needs to be discussed) – many possible solutions: selling, expanding and outsourcing services, outsourcing, expanding profile and creating strategic competitive advantage
Criteria for switching to outsourcing
1. Inability to provide the required quality -» “LOMO” – its own printed circuit board workshop produced products that were 2 generations behind
2. Cost reduction -» "Irbit Motorcycle Plant" - reduction of the workshop for sewing motorcycle seat upholstery
3. Release of scarce equipment and highly qualified labor -» Release of unique equipment engaged in the manufacture of standard products
4. Improving the work of the procurement department -»
reducing the range of purchased products through the purchase of ready-made units
Criteria for refusing outsourcing
1. Lack of reliable suppliers -» “Bread House” – unsatisfactory services from breadtrans. Buying your own trucks
2. Potential monopoly on the part of a possible supplier -» Obstacles to purchasing such blanks from other enterprises. For example, large dimensions – high transport costs
3. Decrease in efficiency below the required level -» A significant increase in outsourced production time, unacceptable to ensure the production process.
4. Increased costs -» The cost of production at home is less than the supply price on the market
Supply of blanks and components in Russia - using the example of metallurgical blanks
| Outsourcing | Market | Production capacity |
| For any product you can find a supplier in Russia. We come to factories, they have the same equipment as ours. There are no problems with transmission. "LOMO" | When we were looking for a market, we assumed that we had a conveyor belt, i.e. We need serial, frequently changing equipment - consumables. We looked for them in all industries. "Petrozavodskmash", "Omsk Metallurgical Plant" | Production volumes have fallen, we have cut two of our four foundries. The fixed costs were too high, because it is expensive to heat and light such a large building if half the site is working there. CJSC "Splav" (d/o Kirov plant) |
| They sold their forge. Since then, we have acquired three more suppliers and we can always play on prices OJSC "Irbit Motorcycle Plant" | Any foundry can be loaded with third-party orders. The steel casting market is unsaturated (few suppliers), while the iron casting market is saturated "Omsk Metallurgical Plant" | We had one building closed, but we couldn’t sell it A large foundry with a capacity of 300 thousand tons is for sale, but no one can buy it JSC "Splav" |
| The supplier of workpieces can become a supplier of aggregates, i.e., for example, machine a workpiece OJSC "Kama Foundry" (d/o KAMAZ) It is impossible to achieve consistency in quality and stability of supply when purchasing externally CJSC "Unirep-Service" | I dream of 5-6 large customers, now there are customers with small batches. JSC "Metalurg" | The best thing now for foundries is to reduce production space "Lengipromez" |
The moment of turning point in the market of metallurgical blanks - machine builders are deciding what to do with blanking production - close or look for a market
The total capacity of foundries in Russia in 2001 amounted to 12.5 million tons. Production volume for 2000 amounted to 5 million tons.
Outsourcing is one of the foreign terms that defines the activities of a company; for many citizens this term does not mean anything, however, if a person is involved in the management of an enterprise or is faced with running a business due to his activities, knowledge of all the intricacies and features of outsourcing is necessary.
This is the transfer by a company, under a formal agreement, of a certain stage of its production process to another company that operates in the same industry.
The company entering into these relations receives at its disposal strategically important stages of production, which will bring considerable benefits, since for the main manufacturer they are an integral production process.
Such cooperation is especially important in that it is concluded for a long period of time and is not a one-time assistance.
Outsourcing is needed to ensure an uninterrupted process of production of goods, while the enterprise does not incur additional costs to provide this stage with everything necessary, from technology to
Important: outsourcing is an opportunity to shift specific production processes that require special knowledge and equipment onto the shoulders of professionals; in other words, the main task in this case is to move highly specialized production features beyond the scope of business.
What is outsourcing and what are its main pros and cons you can see in this video:
Advantages and Disadvantages
Of course, in the case of outsourcing, you cannot rely 100% on the experience of professionals, especially if they are Western colleagues, since there are differences in the specifics of the development of domestic markets and the general economic state of countries.
However, hiring specialists has clear advantages:
- This allows you to reduce the cost of depreciation of production and the number of full-time employees. Especially if this attraction is of a variable nature, for example, depending on the season;
- This option of cooperation makes it possible not to be distracted from the main production process, to concentrate on the high-quality implementation of the assigned tasks;
- Outsourcing also makes it possible to provide products with innovative, high-quality developments that will significantly increase consumer demand.
However, on the flip side, there are certain disadvantages of cooperation:
- In the case of a large number of processes transferred to partner companies, costs may increase, which, if calculated inaccurately, may not pay off;
- Bankruptcy of the outsourcer company;
- The quality of management of all processes may decrease due to uncontrollable actions of partners or insufficient experience in this area;
- The danger of concentrating key processes in the hands of partners, which can turn them into competitors.
Important: the lack of a full-fledged legislative framework that can protect and protect the principal from theft of information.
Production outsourcing
This type is typical for use by high-tech enterprises; with the help of outsourcing, companies in the field of equipment production and telecommunications completely transfer the entire production process to partners, which is essential:
- Reduces production costs;
- Increases its quality and performance;
- Gives you the opportunity to concentrate on developing new products and promoting finished goods.
Main advantages of outsourcing. This type includes:
- Accounting outsourcing;
- Personnel;
- Labor protection;
- Legal. You can read how to correctly draw up a contract for the provision of legal services;
- Logistic.
Outsourcing companies in this area offer:
- Building efficient production;
- 100% control of all processes;
- Reconstruction of existing production processes.
Reasons for switching to outsourcer services
The transition to third-party services is rational when the benefits of transferring certain processes are clear in comparison with the costs of modernization, or even complete production equipment.
Various companies can provide such services depending on the consumer’s request:
- Accounting areas, in particular tax reporting;
- In the field of jurisprudence;
- Advertising and insurance agencies;
- Cleaning companies;
- IT technologies;
- Printing.
Refusal of services to maintain production levels
This trend is completely new for Russia, so the quality of services provided by such companies often does not meet consumer requirements, in this regard, it is better to be on guard and stop cooperation if:
- The quality of services is low - which can lead to serious losses on the part of the customer, since he does not always have the ability to control his partner;
Important: in order to avoid the costs associated with breaking cooperation, it is necessary to initially conclude a contract for a shorter period.
- Dependence on an outsourcer - in this partnership you need to feel the line and maintain your own freedom, because if you let everything take its course, you can become completely dependent on your partners.
Types of outsourcing
These services come in many types, but it is better to transfer non-main stages of production to the services of such companies:
- Accounting is the most popular, as it makes it possible to save on creating an accounting department at the enterprise, this includes:
- Preparation of reports;
- Record keeping;
- Full service every day.
- IT outsourcing is no less popular, since this type involves maintenance of equipment or software, which is what any enterprise needs today.
- Personnel outsourcing – staff management is a very costly undertaking in any direction, so this type is in great demand for large enterprises with a huge staff and high staff turnover.
These agencies perform the following functions:
- Hiring staff;
- Calculation of the tax burden associated with the payment of wages;
- Calculation of bonuses and compensations.
In this case, the company providing the services does not bear responsibility for the quality of work of the hired personnel.
You can read how to correctly draw up an agreement for the provision of accounting services
Important: since 2016, certain restrictions have been introduced on this type, both temporary, for example, it is possible to cooperate with an outsourcer company for no more than 9 months, and to the state of the company itself - its authorized capital and characteristics of the manager.
- Legal - is of particular importance, since it is possible to shift onto the shoulders of such a company all the functions associated with the preparation of permits for an enterprise at various stages of its formation and activity, and this company also provides support for the enterprise in labor and tax relations.
- Outsourcing of knowledge management (by a company) is a fairly new type, so there is little practice in using this service. The service makes it possible to use assistance in company management in those areas that require the use of special analytical knowledge and in-depth study.
Such firms take on the responsibility of knowledge base formation and management. Important: in the future, all developments can be used in the process of making serious management decisions.
- Occupational safety - in any company, someone must perform occupational safety functions, if the staff is small, this task can be solved by the manager himself, but if the staff exceeds 50 people, the occupational safety department must exist at the legislative level or this must be done by outsourced specialists.
An outsourcing company will help save time and money; the cost of its work depends on:
- Staff;
- Type of activity of the enterprise;
- Specifics of production processes.
Sample outsourcing agreement. Where is this activity used?
A similar service is used:
- In high technology production;
- Household appliances;
- Mechanical engineering;
- Tourism;
- In agricultural business;
- Airlines;
- Pharmaceutical companies;
- In construction.
Organization of transition to service
To switch to another company's service you must:
- Analyze the work of your own enterprise - the need for outside help;
- Make a residual decision;
- Select a company;
- Competently prepare the contract;
- Switch to a new work format;
- Request a report on the completion of the assigned task.
Service price
Important: the outsourcer is paid in 3 ways, and temporary downtime is not paid:
- Upon completion of work;
- Hourly;
- Based on the results of the work performed.
In case of long-term cooperation, it is possible to receive a significant discount on the same amount of work.
The cost of services of these companies is affected by:
- Duration of the contract, if longer it is cheaper;
- The number of personnel involved is cheaper in the case of a large staff;
- Professionalism of the involved specialists - the average price for the work of a highly qualified employee is 150 - 250 rubles per hour;
- Seasonality;
- Length of working day;
- Distance between companies.
Procedure for drawing up an agreement
To draw up such an agreement, it is necessary to use the form of paid provision of services in accordance with Chapter 39 of the Civil Code of the Russian Federation.
The structure of the agreement must indicate:
- Subject of the agreement;
- List of services;
- Number of employees involved;
- Cost of work and payment procedure;
- Timing and procedure for reporting;
- Responsibility of the parties;
- Duration of the contract;
- Conditions for termination of the contract.
You should also indicate:
- Details of the parties;
- Name;
- Place and date of compilation;
- Signatures with transcripts of authorized representatives.
Conclusion
According to statistics, 70% of Western companies use the services of outsourcers, as it is profitable, economical and justified.
You can see how outsourcing of services works in practice in this video:
There are a large number of definitions of the term outsourcing, which literally translated from English means attracting external resources to meet one’s own needs. In business practice, this term is used when placing long-term orders to obtain necessary services from other enterprises or when transferring some production functions to a third-party company.
It is worth noting the closeness and sometimes compatibility of such terms as outsourcing and subcontracting. Outsourcing is basically stable and long-term business relations between the customer and the contractor on the basis of contractual agreements. In this case, the contractor adapts its production and technological means or scientific, technical and intellectual potential in the interests of the customer for payment determined by the existing cost of services, and not by a share in the profit. While subcontracting, being a special case of outsourcing, implies limited business relations based on contractual relations within the framework of the execution of any order.
Intellectual and industrial outsourcing
In general, the outsourcing market is divided into two main segments: outsourcing of intellectual services (information processing; research, project development, programming and other technical work) and industrial outsourcing.
Industrial outsourcing is the performance of some auxiliary functions and operations to ensure production of products (accounting, warehousing, repair and maintenance of equipment, logistics, etc.). One of the factors contributing to the development of outsourcing is the presence of a modern, highly efficient communication environment (communications, computerization and transport), which ensures fast and reliable exchange of financial, material and information flows, along with a high level of specialization of various enterprises in the field of production and services.
The level of development of outsourcing relationships in the global economy is characterized by the fact that their volume reached $72 billion in 2004. Of this volume, 53% fell on the American continent, 44% on Europe, and only 3% on the Asia-Pacific region. The financial sector of outsourcing covers 33% of all contracts and accounts for 26% of their total value, the manufacturing sector - (17% and 15%) respectively, telecommunications - (13% and 12%), business services - (9% and 12%) and others services - (9% and 5%).
Currently, in global practice, the segment for the provision of intellectual services is larger. However, in the future, it is expected that the industrial outsourcing segment, which also includes a variety of administrative tasks, will grow almost three times faster than the knowledge services segment.
The use of outsourcing in many companies is due to the need to concentrate the main efforts on the core activities of the enterprise and achieve competitive advantages by reducing costs while increasing production efficiency. Thus, according to the research company Plant Maintenance Resource Center, the most important reasons for using outsourcing are the desire to increase labor productivity while reducing costs and the desire to focus on core activities. In addition, outsourcing allows you to speed up work completion times, and also facilitates access to new technologies and special equipment.
The effect of outsourcing, according to various experts, will allow the customer to reduce operating costs by approximately 35% and increase return on capital by an average of 6% while accelerating the rate of income growth. According to the Industry Week Census on Manufacturing study, 54.9% of American companies outsource in production and 43.8% in equipment maintenance.
The goal of outsourcing is to save money and improve the quality of work
The most important arguments in favor of outsourcing development are cost savings, guarantee of reliability and high quality of services provided. This is due to the fact that the contractor (outsourcer) has the opportunity to specialize in a narrow area of production or services, concentrating the best specialists, using the most modern equipment, applying advanced technologies and constantly gaining experience in serving many clients. Combining its own and borrowed experience, the outsourcer gradually improves the quality of the services provided and always offers a ready-to-use solution.
By serving many customers, the outsourcer distributes overhead costs and optimizes the economics of work, which makes it possible to reduce prices for services provided while simultaneously increasing their quality. At the same time, the customer buys services without incurring costs associated with maintaining a specialized unit with qualified personnel and complex equipment. This allows the customer company to reduce development costs, because it becomes possible to purchase the necessary services without additional costs and at optimal prices. An outsourcing agreement gives the customer the right to receive the desired service, performed at a high professional level and, in many cases, ensuring the outsourcer’s financial responsibility for the quality of their performance.
One of the reasons for the spread of outsourcing is the complication of business processes that create extreme overload for companies caused by the need to further promote an increasing flow of goods or services to the market with limited resources in the face of dynamic changes in market conditions. This has led to the widespread introduction of computer and information technologies in business and enterprise management. At the same time, the complexity of the information systems being implemented has increased and, accordingly, the saturation of enterprises with hardware and software has increased, which has led to an increase in the staff of specialists to support them. As a result, it turned out that it is possible to ensure the operation of such systems more efficiently by completely transferring the IT infrastructure to external services, and this was the basis for the active development of the IT outsourcing market.
The IT services market is rapidly developing throughout the world and, as economic reforms progress, has many areas of application in business. This is due to an increase in business activity and an increase in the speed of response to changes in the market situation. In this regard, the role of online reference and information services and electronic business relationship systems (electronic commerce, partner search, advertising, etc.) is increasing. IT outsourcing companies, thanks to the global Internet, have the opportunity to penetrate the markets of other countries. Thus, many foreign IT companies are already operating steadily in the market; in turn, domestic IT outsourcers have the opportunity to actively expand their activities in the markets of the CIS countries and Eastern Europe.
Along with the development of IT outsourcing, there is an increase in telecommunications outsourcing, which includes maintenance of communication equipment, network administration, leasing of servers, storage resources and database support.
Domestic enterprises are still wary of outsourcing when maintaining communication infrastructure, because... beware of leakage of confidential data from their information systems. This is due to distrust in third-party providers, in the quality of the services they provide and the reliability of their service. However, the expansion and complexity of business is increasingly forcing market participants to turn to telecommunications outsourcing.
Currently, the most active consumers of production and economic outsourcing are large fuel and energy, metallurgical, chemical and transport enterprises. Moreover, these enterprises are interested in comprehensive services, so the trend towards providing a package of services is gradually emerging in the activities of an increasing number of outsourcers.
Characterizing the trends in further reform and development of large enterprises, it can be assumed that in order to optimize the use of investment resources, large companies will withdraw non-core funds in favor of improving and developing key production processes that provide the main advantages in competition. For example, the Lukoil company separated its divisions for drilling wells into the specialized association Lukoil-Drilling, and the BP-TNK company intends to sell its service division.
Similar trends are occurring in mechanical engineering. For example, a certain association abandoned its own production of printed circuit boards using outdated technology in favor of third-party suppliers providing high quality products. One of the well-known enterprises sold its low-profit forging and automatic machine shops and is now purchasing similar products externally. An equally well-known tractor plant liquidated its unprofitable workshop for the production of hardware, which was only 10% loaded, and began purchasing hardware from a specialized third-party company.
In the field of light industry, a well-known company acted as follows: producing women's clothing under the “OGGI” brand, it independently develops models, technological preparation of production, purchases materials and accessories, as well as sells ready-made clothing. However, the production of clothing itself is carried out under outsourcing and subcontracting with many small and medium-sized light industry enterprises.
When assessing the situation on the outsourcing market, it is necessary to understand that the majority of currently operating large enterprises are associations of largely outdated industries, focused on the production of the main product and representing an industrial variety of subsistence farming.
In the conditions of the formation of the domestic economy, with the gradually developing infrastructure of industrial services, the need of large enterprises for a wide range of their own production, auxiliary and functional units is reduced. It is known that in order to increase the economic efficiency of a number of large enterprises, they are being restructured with the removal of a number of non-core departments (transport, repair, construction, tool and a number of other shops, including many support services). Their functions can be more effectively performed by a number of third-party small specialized enterprises on an outsourcing basis.
However, the widespread development of outsourcing relationships is still hampered by the very weak level of development of small businesses in the provision of production, scientific and technical services. Moreover, in the small business sector itself, which suffers from a lack of financial resources, outsourcing relationships are developing much more slowly than among large and medium-sized enterprises. This is also due to the fact that small businesses often do not have the opportunity to analyze the feasibility of outsourcing certain functions. In this regard, experts recommend being based on the distribution of business functions of an enterprise in accordance with the principle: “I keep for myself only what I can do better than others, I transfer to an external contractor what he does better than others.” This approach allows the customer company to optimize its organizational structure, reduce production costs while improving quality and focus on strategic issues of increasing the efficiency of the enterprise, entrusting the performance of secondary and supporting functions to third-party companies.
This approach allows the customer company to optimize its organizational structure, reduce production costs while improving quality and focus on strategic issues of increasing the efficiency of the enterprise, entrusting the performance of secondary and supporting functions to third-party companies.
Gradually, outsourcing in the field of IT services, service of office equipment, vehicles, and even in the provision of accounting services is beginning to gain recognition among small businesses. This allows small businesses to more successfully and efficiently solve many accounting and tax problems. The presence of examples of successful outsourcing experience in our country indicates the prospects for the further development of this form of business relations, especially in conditions when enterprises experience an acute lack of necessary knowledge and specialists.
Outsourcing allows you to comprehensively attract the experience of highly qualified specialists for high-quality development and rapid implementation of projects (technological, information, administrative, managerial, etc.), as well as for the acquisition of services (accounting, logistics, marketing research, equipment repair, etc.). The development of outsourcing relationships contributes to the gradual optimization of the structure of large, medium and small enterprises operating in the real economy, bringing them certain benefits.
The following factors contribute to the development of outsourcing:
- the possibility of reducing overhead costs by eliminating unprofitable workshops, areas and divisions engaged in secondary, periodically performed work (repair and construction work, equipment repair, cleaning of areas, etc.);
- reduction of production costs by transferring the production of blanks, hardware and components to third-party enterprises;
- the need for temporary use of special production, technological, testing and laboratory equipment, storage facilities, vehicles and construction mechanisms;
- placing orders for the production of products or the provision of services during peak loads (seasonal demand or fluctuations in market conditions) with a lack of own capacity;
- insurance in case of breakdown of your own equipment, so that in these circumstances you can not stop shipments and not lose revenue, but switch to external production.
Outsourcing, as a form of attracting external resources, reduces the need for investments in non-fixed assets and reduces overhead costs (cost of jobs, employee training, information support, etc.), and avoids expanding the staff. Along with the obvious benefits of using outsourcing in various industries, there are serious factors hindering its development. Among the main reasons hindering the development of outsourcing in the domestic economy are:
- Lack of highly qualified managers capable of accurately analyzing the situation and assessing the advantages of outsourcing in the current conditions of development of market relations;
- Reduced efficiency in solving production and technological issues with an insufficient level of development of communication systems and logistics chains;
- A limited number of alternative manufacturers and service providers in a given region or within the radius of acceptable transport costs, which makes it difficult or impossible to select optimal or cost-effective partners for outsourcing cooperation.
All this causes entrepreneurs to fear the loss of control over the enterprise and reluctance to trust a third party with certain information about their activities necessary to ensure effective interaction between the customer and the outsourcer. Indeed, with outsourcing, the customer to some extent loses the ability to control the outsourced part of the company’s activities. Therefore, in some cases, it is advisable for the customer to have the outsourcer’s own controller, who will evaluate the efficiency of work and the compliance of the level of services provided with the customer’s requirements.
It should be especially noted that the customer entering into an outsourcing contract should include in it a description of the conditions for exiting the agreement without losses. If the customer transfers its personnel, equipment and property to the outsourcer, then the terms of withdrawal from such an agreement should allow them to be returned to the customer's company or provide the opportunity to enter into an alternative agreement.
You can protect yourself from low-quality outsourcing services and minimize risks when transferring business functions to a third-party structure if you correctly conclude a service level agreement (SLA). This agreement defines the professional responsibilities of the parties and establishes the contractor’s obligations to ensure adequate quality of services and compensation for possible losses. Based on such an agreement, you can force the outsourcer to correct its mistakes and compensate for losses. However, most outsourcing companies do not have sufficient assets to compensate for possible losses from poor quality work, so service contracts become the subject of insurance for a number of legal, consulting, accounting, auditing, IT services, etc. Companies that successfully use outsourcing seek to secure the fulfillment of their own obligations and expect their suppliers to be as open as possible to establish reliable partnerships.
In conclusion
It should be noted that the slow development of outsourcing relationships among various business entities, in turn, restrains the process of economic clustering and thereby limits the possibilities for accelerated socio-economic development of our country. As the domestic market develops, with the growth of sustainability and efficiency of small enterprises specializing in subcontract deliveries, large companies will increasingly begin to focus on the development of outsourcing, as is, for example, practiced in the global automotive industry, where small enterprises are the main productive link as suppliers of blanks, parts and assemblies, and not large automobile concerns.
Considering the need for accelerated development of domestic small businesses in the production, scientific and technical spheres as one of the most important conditions for the country’s sustainable economic growth, it can be assumed that outsourcing relationships will become the basis for the interaction of small businesses with large and medium-sized enterprises in many areas of activity, among which the most promising are :
- conducting research and carrying out experimental work;
- provision of information, marketing, analytical, administrative and other services;
- cleaning of territories and premises (industrial and office);
- carrying out repair work - equipment, buildings, structures;
- production of simple products (blanks, hardware, components);
- cleaning of industrial waste and its processing for subsequent disposal;
- modernization or disposal of obsolete equipment;
- logistics at the local level, etc.
| Working day | Up to 10 people | From 11 to 20 | From 21 to 30 | From 31 to 40 | From 41 to 50 | Over 50 |
| 11 o'clock | 153 rub. | 148 rub. | 145 rub. | 141 rub. | 138 rub. | 133 rub. |
| The presence of the following conditions affects the final cost! | ||||||
| Transfer to your place of work | 148 rub. | 143 rub. | 140 rub. | 136 rub. | 133 rub. | 128 rub. |
| Providing accommodation | 133 rub. | 128 rub. | 125 rub. | 121 rub. | 118 rub. | 113 rub. |
| Providing food | 123 rub. | 118 rub. | 115 rub. | 111 rub. | 108 rub. | 103 rub. |
| Provision of workwear | 118 rub. | 113 rub. | 110 rub. | 106 rub. | 103 rub. | 98 rub. |
Are you experiencing a shortage of qualified workers? Contact Kronos, outsourcing of working personnel is one of the leading activities of our company.
Highly qualified workers have always been at a premium. But their shortage is especially noticeable at the present time, when it is more difficult to find a qualified locksmith than a lawyer. At many enterprises, there is a need for well-trained workers in various specialties - turners, milling operators, mechanics, welders, etc. And such a service as worker outsourcing will significantly save time and material costs on personnel selection.
The advantages of cooperation with an outsourcing company are obvious:
Using an outsourcing service in construction or production, you get a qualified specialist with extensive experience;
The outsourcer provides you with workers of the required specialty in the required quantity and for the period you need;
At the same time, you avoid “extra” costs for vacation pay and sick leave, since you only pay for working time.
Thus, outsourcing at an industrial enterprise allows you to solve a number of problems facing the company:
Reduce costs, reduce costs. Outsourcing at an enterprise, as a rule, is cheaper than maintaining highly qualified workers on staff, since the cost of an outsourcer’s services is lower;
Increased labor productivity due to highly qualified hired workers. Outsourcing of production ensures high technical and quality characteristics of products, which allows the customer company to achieve a competitive advantage in the market;
The ability to focus full-time employees on the core activities of the enterprise, while hired workers take on third-party, operational functions.
We guarantee a professional approach, responsibility and reliability of each of our specialists. The Kronos company has been carrying out industrial outsourcing since 2008, and over the years of work in the labor services market we have developed a unique, constantly updated database, thanks to which we can easily select for you the necessary workers of the highest qualifications in a variety of areas of production in the shortest possible time for all the required Period for you.
Based on the characteristics of a particular product, the manufacturing process may consist of a large number of stages. The more complex the product, the longer the list of operations performed during its production. At the same time, some companies use finished products of other organizations as semi-finished products in the process of creating their own.
The need to solve a large number of related and auxiliary tasks has determined the relevance of outsourcing. Many manufacturing enterprises prefer to delegate minor responsibilities to contractors, and concentrate their resources on providing exclusive benefits to the finished product. This turns out to be an extremely beneficial and effective approach.
Production outsourcing: what is it?
Outsourcing - transferring responsibilities for specific tasks to a reliable contractor. As a rule, non-core business processes of the company are delegated to partners. They perform certain work and ensure that the entrepreneur gets the result he needs. The latter uses it to conduct its main activities and create finished products.
Production outsourcing -transfer of responsibilities for performing processes for the manufacture of goods or their preparation to the level of semi-finished products. The company can shift processes related to solving various problems onto the shoulders of the contractor:
processing of raw materials;
production of components;
assembly of finished products;
turnkey production.
Most often, enterprises delegate to contractors the responsibilities of performing work at certain stages of product manufacturing. In such cases, they only endow the products with exclusive benefits before releasing them to the market. Often, however, the entire production process is outsourced if the organization does not have the necessary capacity to manufacture the product.
In what cases is outsourcing of production activities relevant?
The transfer of responsibilities for the manufacture of certain goods or their components is used in various situations:
production - non-core business process. A company may specialize in logistics or marketing activities and carry out wholesale sales of products. In this case, she finds a reliable contractor who guarantees high-quality and timely production;
production - at a specific stage. An organization can carry out a set of works related to achieving a certain goal in the process of manufacturing goods. For example, it assembles equipment ready for sale, but the tasks of creating components are entrusted to reliable business partners;
lack of a complex of necessary capacities.An enterprise can carry out work on a large scale, but only in one or two directions, for example, processing raw materials and creating arrays for workpieces. However, the part creation stage is delegated to the outsourcer;
increase in production volumes.When receiving government orders or requests from several important clients at once, the company often cannot cope with the load placed on it. In this case, the tasks of creating semi-finished products, components or finished products are transferred to the shoulders of contractors. They provide the volume, and the entrepreneur controls the process.
What are the benefits of outsourcing production activities?
Outsourcing production has many advantages:
optimization of the use of current assets.Involving a contractor in the manufacturing process simplifies calculations and eliminates the need to search for raw materials, purchase, and transport raw materials;
obtaining results using the contractor's resources.The company pays the business partner upon provision of services. When the result is presented and it meets the stated requirements, funds are transferred to the contractor. The entrepreneur uses the received components to conduct his main activities;
saving resources.Often the production of the same product costs an order of magnitude cheaper in one company than in another. This is influenced by many factors. By holding a tender, an entrepreneur can choose a contractor who performs production operations on the most favorable terms, which will reduce the cost of the finished product;
increase in volumes.With the help of business partners, you can significantly increase your performance. The joint work of several contractors ensures a significant increase in production volumes, which is very important for large and urgent orders;
increasing the efficiency of core activities.Since non-core business processes become the concern of contractors, the head of the company concentrates the freed-up resources on the development of the main direction. As a result, its productivity and profitability are significantly increased.
How to order outsourcing of production workers
Downtime in production is an unaffordable luxury. Therefore, if there is a need for line personnel and qualified specialists, it is inappropriate to spend a lot of time searching, checking professional suitability, completing documents, and a probationary period for hiring another employee. Ordering outsourcing of production personnel is the optimal solution.
To provide your company with the required number of employees, you should seek help from a reliable business partner. A HR outsourcer specializes in recruiting and leasing personnel. Therefore, a conscientious contractor is guaranteed to provide a team of workers to perform specific production functions.
The advantages of using an outsourcer are obvious:
- the ability to attract 10 or more employees who have been thoroughly tested for professional suitability;
- getting a team of experienced workers at your disposal without the need to employ them;
- the ability to quickly increase the production performance of the enterprise;
- creating reserves to reduce the company's permanent staff;
- protection from liability for personnel to the Federal Migration Service and other government inspection services.
To order personnel outsourcing services for production you must:
- find a reliable recruitment agency;
- apply for employee leasing;
- select the optimal partnership scheme;
- sign a HR outsourcing agreement;
- engage employees on a subcontract basis.
The search for a reliable outsourcer should be done by studying independent information about all agencies in the suitable region. Taking into account the objective opinions of entrepreneurs and experienced managers, it is possible to gradually filter out unattractive contractors, choosing a business partner with the best terms of cooperation.
After this, you should take a series of sequential steps:
- submit a request to the agency through the online form on the website or by calling the specified phone number;
- answer the manager's questions;
- receive a preliminary calculation of the cost of services for each of the selected partnership schemes;
- during a personal meeting in the office, finalize the details of cooperation by signing a bilateral agreement;
- attract workers on a lease basis for permanent or temporary employment.
With the help of outsourcing, an enterprise can establish an uninterrupted production process using hired labor from external personnel. HR records management for employees is carried out by the contractor. The customer uses trusted employees to solve current business problems.
Outsourcing of production activities -a proven way to effectively solve problems related to the manufacture of products for any purpose. Involving contractors provides the opportunity to use their resources to obtain the results required by the company. This eliminates the need to be scattered across many processes, which optimizes the use of current assets and also accelerates the development of the organization.
