MISHRM 2014 Annual Conference

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. 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

13. Sample Tools Using Lean Thinking

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. What is Six Sigma

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. What is Six Sigma

21. What is Good Enough?

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

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 Analyze Improve Control Measure • 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 Analyze Improve Control Measure • 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 Improve Analyze Control Measure • 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 Control Analyze Improve Measure • 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

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 313.965.8358 pboehms@clarkhill.com