MISHRM 2014 Annual Conference
HR Amplified: Driven to be…
LEAN/SIX SIGMA APPROACHES FOR
THE WHITE COLLAR WORKPLACE
Paul Boehms – Clark Hill PLC
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
What is Lean / Six Sigma?
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
What is Lean / Six Sigma?
Lean
Six Sigma
•
Originally created at Toyota in the
1950’s (as Lean manufacturing)
•
Use of quality improvement tools to
solve difficult problems
•
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
•
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 servicerelated processes in order to
anticipate and exceed expectations
of all stakeholders to accomplish
effectiveness
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
When to use Lean vs. Six Sigma
• Lean tends to be used for shorter, less complex problems.
driven. Focus is on eliminating wasteful steps and practices.
Often time
• 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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Lean
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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!
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Lean Methodology
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Sample Tools Using Lean Thinking
5S
Sort, Set in Order, Shine, Standardize, and Sustain
Just-InTime (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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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.
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Overview of Six Sigma
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
What is Six Sigma
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
DMAIC
Define
Measure
Define who the customers are and what are their expectations
Define project boundaries
Define the process to be improved by mapping the process flow
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Six Sigma Phases: Define
• Define Customers and Requirements (CTQs)
• Develop Problem Statement, Goals and
Benefits
Define
• Identify Champion, Process Owner and Team
• Define Resources
• Evaluate Key Organizational Support
• Develop Project Plan and Milestones
• Develop High Level Process Map
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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.
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Six Sigma Phases: Measure
• Define Defect, Opportunity, Unit and Metrics
• Detailed Process Map of Appropriate Areas
• Develop Data Collection Plan
Measure
• Validate the Measurement System
• Collect the Data
• Begin Developing Y=f(x) Relationship
• Determine Process Capability and Sigma
Baseline
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Six Sigma Phases: Analyze
• Define Performance Objectives
Analyze
• Identify Value/Non-Value Added Process
Steps
• Identify Sources of Variation
• Determine Root Cause(s)
• Determine Vital Few x's, Y=f(x) Relationship
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Analyze
Define
Measure
Analyze
Improve
Control
Deliverables
•
Data and process analysis, root cause analysis, quantifying the
gap/opportunity
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Six Sigma Phases: Improve
• Perform Design of Experiments
• Develop Potential Solutions
Improve
• Define Operating Tolerances of Potential
System
• Assess Failure Modes of Potential Solutions
• Validate Potential Improvement by Pilot
Studies
• Correct/Re-Evaluate Potential Solution
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Improve
Define
Measure
Analyze
Improve
Control
Deliverables
•
Generate (and test) possible solutions, select the best solutions,
design implementation plan
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Six Sigma Phases: Control
• Define and Validate Monitoring and Control
System
• Develop Standards and Procedures
Control
• 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
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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)
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
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.
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Key Roles for Six Sigma
Executive
Leadership
Includes CEO and other key top management
team members. They are responsible for setting
up a vision for Six Sigma implementation.
Champions
Are responsible for the Six Sigma
implementation across the organization in an
integrated manner. Champions also act as
mentor to Black Belts.
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Key Roles for Six Sigma
Master Black
Belts
Identified by champions, act as in-house expert
coach for the organization on Six Sigma. They
devote 100% of their time to Six Sigma.
Black Belts
Operate under Master Black Belts to apply Six
Sigma methodology to specific projects. They
primarily focus on Six Sigma project execution.
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Key Roles for Six Sigma
Green 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.
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org
Paul W. Boehms
313.965.8358
pboehms@clarkhill.com
MISHRM
P.O. Box 99463
Troy, Michigan 48099
(844) 4-MISHRM
http://mishrm.org