mishrm 2014 annual conference

MISHRM 2014 Annual ConferenceHR Amplified: Driven to be…

MISHRMP.O. Box 99463Troy, Michigan 48099

(844) 4-MISHRMhttp://mishrm.org

LEAN/SIX SIGMA APPROACHES FOR THE WHITE COLLAR WORKPLACE

Paul Boehms – Clark Hill PLC



What is Lean / Six Sigma?



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



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



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



What is 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

Lean Six Sigma



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



Lean



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!



Lean Methodology



Sample Tools Using Lean Thinking

5S 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



Sample Tools Using Lean Thinking

Bottleneck AnalysisIdentify 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.



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



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



Overview of Six Sigma



What is Six Sigma

Reactive Quality: Taking defects out of what is producedProactive Quality: Create a process that will create less or no defects



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



What is Six Sigma



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



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



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



DMAICDefine

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 processCollect data from many sources to determine

types of defects and metricsCompare to customer survey results to determine

shortfall

AnalyzeIdentify gaps between current performance and

goal performancePrioritize opportunities to improve

Identify sources of variation

ImproveCreate innovate solutions using technology and

disciplineDevelop and deploy implementation plan

ControlPrevent reverting back to the “old way”

Require the development, documentation and implementation of an monitoring plan

Institutionalize the improvements



Six Sigma Phases: Define

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



DefineDefine 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.



Six Sigma Phases: Measure

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



MeasureMeasureDefine Analyze Improve Control

Deliverables

• Key measures identified, data collection planned and executed,

process variation displayed and communicated, performance

baselined, sigma level calculated



Six Sigma Phases: Analyze

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



AnalyzeAnalyzeDefine Measure Improve Control

Deliverables

• Data and process analysis, root cause analysis, quantifying the

gap/opportunity



Six Sigma Phases: Improve

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



ImproveDefine Measure Analyze

Deliverables

• Generate (and test) possible solutions, select the best solutions,

design implementation plan

Improve Control



Six Sigma Phases: Control

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



ImproveDefine Measure Analyze

Deliverables

• Documented and implemented monitoring plan, standardized

process, documented procedures, response plan established and

deployed, transfer of ownership (project closure)

Improve Control



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 TestingInvestigating 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 PlanA 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.



Key Roles for Six Sigma

Champions Are responsible for the Six Sigma

implementation across the organization in an

integrated manner. Champions also act as

mentor to Black Belts.

Includes CEO and other key top management

team members. They are responsible for setting

up a vision for Six Sigma implementation.

Executive

Leadership




Black Belts Operate under Master Black Belts to apply Six

Sigma methodology to specific projects. They

primarily focus on Six Sigma project execution.

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




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



Paul W. Boehms313.965.8358

[email protected]

mishrm 2014 annual conference

Documents

sigma important

lean manufacturing focus

time driven

information management

beleansix sigma approaches

hiring cycle time

hr systemsmishrmp

quality products