1. MISHRM 2014 Annual Conference
HR Amplified: Driven to be…

2. Lean/Six Sigma Approaches for the white collar workplace
Paul Boehms – Clark Hill PLC

3. What is Lean / Six Sigma?

4. Why is Lean / Six Sigma Important to You
Trend for many employers to implement process improvement techniques in the workplace
Need to understand concepts in order to properly hire appropriate talent
Build appropriate competency models for trained professionals in your organization
HR’s role in implementing / enforcing the company’s culture (change management and communication)
Toolkit to run your department more efficiently
Lean / Six Sigma is not just for the shop floor!
Best used for repetitive processes

5. So What? I am in HR! Hiring Cycle Time:
The hiring cycle time is too long causing work-arounds, misclassifications, rework, and organizational frustration
Analysis revealed that batch processing and undefined critical fields were causing most of the delays
Data Integrity
The employee information contained in the HR System of record (e.g. personal and personal and job related information) differs from Payroll information
Results in the inability to properly account for department headcount and the associated employee costs causing excessive rework to both Payroll and HR systems

6. So What? I am in HR! Employee turnover rate
Job satisfaction issues (surveys)
Management satisfaction
Policy deployment
Health care costs
Safety and compliance issues
Employee exit analysis
University relations

7. What is Lean / Six Sigma? Lean Six Sigma
Originally created at Toyota in the 1950’s (as Lean manufacturing)
Focus is the elimination of waste in every area of production including customer relations, product design, supplier networks and factory management. Its goal is to incorporate less human effort, less inventory, less time to develop products, and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible
Use of quality improvement tools to solve difficult problems
A rigorous and a systematic methodology that utilizes information (management by facts) and statistical analysis to measure and improve a company’s operational performance, practices and systems by identifying and preventing defects and service-related processes in order to anticipate and exceed expectations of all stakeholders to accomplish effectiveness

8. When to use Lean vs. Six Sigma
Lean tends to be used for shorter, less complex problems. Often time driven. Focus is on eliminating wasteful steps and practices.
Six Sigma is a bigger more analytical approach – often quality driven – it tends to have a statistical approach. Focus on optimizing the important steps – reducing defects.
Some argue Lean moves the mean, Six Sigma moves the variance. But they are often used together and should not be viewed as having different objectives.
Waste elimination eliminates an opportunity to make a defect
Less rework means faster cycle times
Six Sigma training might be specialized to the “quality” department, but everyone in the organization should be trained in Lean

9. Lean

10. In any process: Define value and everything else becomes waste!
Principles of Lean
Focus on effectively delivering value to your customer
Respect and engage the people
Eliminating all types of waste
Maintain flow
Pull through the system
Strive for perfection
In any process: Define value and everything else becomes waste!

11. Lean Methodology

12. Sample Tools Using Lean Thinking
Sort, Set in Order, Shine, Standardize, and Sustain
Just-In-Time (JIT)
Pull through based on customer demand instead of pushing parts through production based on projected demand
Kaizen
A strategy where employees work together proactively to achieve regular, incremental improvements in the manufacturing process
Kanban
A method of regulating the flow of goods both within the company and with outside suppliers and customers
Value Stream Mapping
A tool used to visually map the flow of production. Shows the current and future state of processes in a way that highlights opportunities for improvement

13. Sample Tools Using Lean Thinking
Bottleneck Analysis
Identify which part of the process limits the overall throughput and improve the performance of that part of the process
KPIs: Key Performance Indicators
Metrics designed to track and encourage progress towards critical goals of the organization
Root Cause Analysis (5 Whys)
A problem solving methodology that focuses on resolving the underlying problem instead of applying quick fixes that only treat immediate symptoms of the problem.

14. Lean Thinking Customer is 1st Empower people to “think”
Create a workplace that are more human, and encourage people to think
This is the ultimate forum for “team building”
Thoughts to consider:
Every time work stops we use resources that add costs and generate no value
Overproduction is the worst form of waste
The real benchmark is zero waste, not just better than your competition

15. Benefits to Involving the Team
Improves morale
Finds barriers that thwart creativity
Clearly defines objectives and goals for all
Improves processes and procedures
Improves productivity
Identifies teams strengths and weaknesses
Improves ability to problem solve

16. Overview of Six Sigma

17. Reactive Quality: Taking defects out of what is produced
What is Six Sigma
Reactive Quality: Taking defects out of what is produced
Proactive Quality: Create a process that will create less or no defects

18. History of Six Sigma Coined by Bill Smith of Motorola
Motorola started using problem solving through statistical analysis in the 1970s
Motorola officially started a six sigma program in 1987
GE launched a six sigma program in 1996
1998/1999 Green Belt certifications became the criteria for management promotions

19. What is Six Sigma

20. Defects Per Million Opportunities
What is Six Sigma
Sigma Level
Defects Per Million Opportunities 1
690,000 2
308,537 3
66,807 4
6,210 5
233 6
3.4

21. What is Good Enough? 99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)
20,000 lost articles of mail per hour (based on 2,000,000/hr)
7 articles lost per hour
Unsafe drinking water for almost 15 minutes each day
1 unsafe minute every 7 months
5,000 incorrect surgical operations per week
1.7 incorrect operations per week
2 short or long landings daily at an airport with 200 flights/day
1 short or long landing every 5 years
2,000,000 wrong drug prescriptions each year
680 wrong prescriptions per year
No electricity for almost 7 hours each month
1 hour without electricity every 34 years

22. What Makes a Good Six Sigma Project?
There is no known solution
The root cause is not known
The problem is complex and needs statistical analysis
The problem is part of a process
The process is repeatable
A defect can be defined
There is data available

23. DMAIC Define who the customers are and what are their expectations
Define project boundaries ­
Define the process to be improved by mapping the process flow
Measure
Develop a data collection plan for the process
Collect data from many sources to determine types of defects and metrics
Compare to customer survey results to determine shortfall
Analyze
Identify gaps between current performance and goal performance
Prioritize opportunities to improve
Identify sources of variation
Improve
Create innovate solutions using technology and discipline
Develop and deploy implementation plan
Control
Prevent reverting back to the “old way”
Require the development, documentation and implementation of an monitoring plan
Institutionalize the improvements

24. Six Sigma Phases: Define
Define Customers and Requirements (CTQs)
Develop Problem Statement, Goals and Benefits
Identify Champion, Process Owner and Team
Define Resources
Evaluate Key Organizational Support
Develop Project Plan and Milestones
Develop High Level Process Map
Define

25. Define Define Measure Analyze Improve Control Deliverables
Fully trained team is formed, supported, and committed to work on improvement project.
Team charter developed, customers identified and high impact characteristics (CTQs) defined, business process mapped.

26. Six Sigma Phases: Measure
Define Defect, Opportunity, Unit and Metrics
Detailed Process Map of Appropriate Areas
Develop Data Collection Plan
Validate the Measurement System
Collect the Data
Begin Developing Y=f(x) Relationship
Determine Process Capability and Sigma Baseline
Measure

27. Measure Define Measure Analyze Improve Control Deliverables
Key measures identified, data collection planned and executed, process variation displayed and communicated, performance baselined, sigma level calculated

28. Six Sigma Phases: Analyze
Define Performance Objectives
Identify Value/Non-Value Added Process Steps
Identify Sources of Variation
Determine Root Cause(s)
Determine Vital Few x's, Y=f(x) Relationship
Analyze

29. Analyze Define Measure Analyze Improve Control Deliverables
Data and process analysis, root cause analysis, quantifying the gap/opportunity

30. Six Sigma Phases: Improve
Perform Design of Experiments
Develop Potential Solutions
Define Operating Tolerances of Potential System
Assess Failure Modes of Potential Solutions
Validate Potential Improvement by Pilot Studies
Correct/Re-Evaluate Potential Solution
Improve

31. Improve Define Measure Analyze Improve Control Deliverables
Generate (and test) possible solutions, select the best solutions, design implementation plan

32. Six Sigma Phases: Control
Define and Validate Monitoring and Control System
Develop Standards and Procedures
Implement Statistical Process Control
Determine Process Capability
Develop Transfer Plan, Handoff to Process Owner
Verify Benefits, Cost Savings/Avoidance, Profit Growth
Close Project, Finalize Documentation
Communicate to Business, Celebrate
Control

33. Improve Define Measure Analyze Improve Control Deliverables
Documented and implemented monitoring plan, standardized process, documented procedures, response plan established and deployed, transfer of ownership (project closure)

34. Sample Tools Using Six Sigma
Process Mapping
Creating flowcharts of the step in a process – operations, decision points, delays, movements, handoffs, rework, loops, and controls or inspections
Hypothesis Testing
Investigating a theory about the suspected cause (s) of a particular effect in a process to determine if it is correct. It’s a compass that points you directly to the vital few factors that are most affecting your process.
Failure Mode Effect Analysis
The manner in which a part or process can fail to meet a specification, creating a defect or non-conformance, and the impact on the customer if that failure mode is not prevented or corrected
Control Plan
A detailed assessment and guide for maintaining all the positive changes you have made. It ensures that all your analysis and efforts stay in effect and that you have information at your disposal to prevent backsliding or a return to less than optimal performance standard.
Process Capability Tool
Process capability tool is the measure of a process being able to meet specification requirements and fulfill customer CTQ needs on a long term basis.

35. Key Roles for Six Sigma
Includes CEO and other key top management team members. They are responsible for setting up a vision for Six Sigma implementation.
Executive Leadership
Are responsible for the Six Sigma implementation across the organization in an integrated manner. Champions also act as mentor to Black Belts.
Champions

36. Key Roles for Six Sigma
Identified by champions, act as in-house expert coach for the organization on Six Sigma. They devote 100% of their time to Six Sigma.
Master Black Belts
Operate under Master Black Belts to apply Six Sigma methodology to specific projects. They primarily focus on Six Sigma project execution.
Black Belts

37. Key Roles for Six Sigma
Are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results.
Green Belts

38. Paul W. Boehms