The primary purpose of a Ceridian consultative engagement is to create value for our clients. By using before and after assessments and quantifying hard and soft dollar costs, we help companies build compelling cost benefit analyses that articulate significant savings. Our recommendations include timelines and project plans that clearly demonstrate the path to change. Perhaps most importantly, we arm senior HR and payroll professionals with the data and roadmaps they require to become strategic partners in their organization, increasing productivity and profitability." 

Ceridian helps manufacturer build $1.3 million in company value

The primary purpose of a Ceridian consultative engagement is to create value for our clients. By using before and after assessments and quantifying hard and soft dollar costs, we help companies build compelling cost benefit analyses that articulate significant savings. Our recommendations include timelines and project plans that clearly demonstrate the path to change. Perhaps most importantly, we arm senior HR and payroll professionals with the data and roadmaps they require to become strategic partners in their organization, increasing productivity and profitability."

Corey Baisch 
senior vice president, Ceridian Quality

Industry: Manufacturing 
Employees: 15,000 
Market: United States

The Bottom Line 
  • Replacing the company's outdated time and labor management system with Ceridian's Time and Attendance will save the customer more than $480,000 in maintenance and subscriber fees.
  • Automating several manual processes will eliminate 1,100 hours of labor per year, freeing HR and payroll professionals to pursue more strategic efforts.
  • Increased automation and integration between HR and labor management systems will reduce administrative costs by more than $25,000 per year.
  • Over the next five years, overall HR process improvements will enable the manufacturer to recognize $1,337,499 in actual value created.

The Opportunity 
The challenging economic environment prompted this manufacturer to examine its HR and payroll practices to determine if they could be improved. The company believed it used an overabundance of manual processes and wanted to determine if these processes could be automated, streamlined or otherwise simplified. They also believed their time and labor management solution was expensive, dependent on older technology and equipment, and had limited capabilities. 

The Process 
Ceridian recommended using its consultative engagement process to help the manufacturer examine its HR practices -- particularly its time and labor management solution. 

A Ceridian account executive provided the company with an overview of Ceridian's customer process improvement team (CPIT) exercise. The CPIT consists of a multiday, onsite discovery during which a Ceridian business analyst works with the manufacturer's HR professionals and stakeholders to document and map its processes. One result of the CPIT process is an overview map that displays and identifies every system, database or application that interacts with an employee's lifecycle. Using a combination of white boarding and Visio process flow mapping, the client's HR processes are exhaustively mapped. The process flow map identifies and documents time spent per step, transaction volumes, process performers and other dependencies. The exercise also began to identify practices and processes that could be improved.



The Solution 
After the team's careful and detailed analysis, several potential improvements were identified. Generally, these improvements involved automating manual processes. Whenever possible, the team tried to replace the movement of paper and the reliance on e-mail as information transmission methods with more streamlined, automated processes. 

 

For example, collecting time and labor entries and tracking employee leave requests are largely manual processes. The information is gathered onto multiple Excel spreadsheets from several remote locations. These are then e-mailed into the payroll and HR department for data entry into the payroll system. Not only is the process inefficient, but the twice-keyed data increases the likelihood for data entry errors. It also causes a significant delay in the ability to interact with the data in real time. Managers at remote locations must wait for e-mail and phone notifications for leave request approvals and up-to-date labor cost activity reporting, which are two crucial needs in the manufacturing environment. 

The consultative engagement also identified an anticipated time savings of more than 1,100 labor hours per year as a result from changes or improvements to several of the client's HR practices. Additionally, because some of the automated processes reduced the amount of wait time between certain activities, the client would save 300 hours per year in the management of its payroll entry and in updates to its time and labor management systems.

Connection-Jan2011-Consultative-1.jpg

 

Connection-Jan2011-Consultative-2.jpgIn summary, Ceridian's consultative engagement services process identified significant material hard and soft costs in the manufacturer's various time and labor administration processes. Additional productivity improvements will result from driving 300+ hours of wait time out of existing processes and the ability to provide near real-time labor analysis and employee/manager workflow for leave requests. Finally, Ceridian's team and the manufacturer's HR and payroll professionals determined that these anticipated process improvements would result in substantial cost savings ($480,000 annually) in

maintenance fees, contractor costs, seamless integration between time and labor data and Ceridian's HR/payroll system, and an overall simplification in payroll processing across multiple locations.

Figure 1 depicts one of the key outcomes of the manufacturer's consultative engagement process; the process flow map identifies the state of the current HR system and, after several process improvements, the future state. 

The bar chart in Figure 2 clearly depicts the five year savings from the manufacturer's anticipated new time and attendance system and process improvements, totaling $1,337,499 over five years.