A Human Resources Perspective Introduction to Lean Six Sigma
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- Slide 1
- A Human Resources Perspective Introduction to Lean Six
Sigma
- Slide 2
- Agenda Short Biography History of Lean Six Sigma (LSS) LSS
Methodology Success Factors Application to HR Examples of project
ideas New York ISO case study
- Slide 3
- About the Presenter David Duda Over twelve years of LSS
experience Delta Airlines, Inc. 1998-2008 Production based
application of LSS New York Independent System Operator
2008--Present Service/transactional based application of LSS
Certified Six Sigma Black Belt Contact Info: pdduda@gmail.com
- Slide 4
- The History of Lean Six Sigma A New Approach to Quality
- Slide 5
- History of Lean Six Sigma What is in a name? Lean -- Focuses on
removing waste (muda) from processes Six Sigma Focuses on
understanding and reducing variation in processes Lean Six Sigma
(LSS) Combines both approaches What is the Concept behind LSS? As
wasteful activities are removed overall process variation is
reduced Lean Six Sigma is one of many methodologies developed
through the Quality Revolution
- Slide 6
- HistoryEvolution of Quality Craft Production Each item is
unique Individual parts made to fit Quality through craftsmanship
Mass Production High volume Interchangeable parts Quality through
inspection Better Production Understanding of process variation
Quality through process
- Slide 7
- Evolution of Quality--Timeline Interchangeable Parts
Statistical Process Control Reconstruction of Japan Toyoda
Production System Six Sigma Eli WhitneyWalter Shewhart Deming &
Juran Eiji ToyodaMotorola 17981920s195019601980
- Slide 8
- Expanding Application of LSS Initially applied in production
environments Manufacturing Supply Chain Maintenance Repair and
Overhaul (MRO) Rapidly grew into transactional applications
Financial Institutions Insurers Continued to expand to services
Hospitals and Health Care
- Slide 9
- A Couple of Questions 1. What does Six Sigma mean? a. A process
that has a six sigma level of quality experiences only three
defects per one million opportunities. 2. Is it Important to have a
six sigma level of quality? a) It depends on the customers
perception of quality. If you are landing airplanes, it is critical
to obtain at least a six sigma level of quality. If you are
manufacturing coffee stirrers, lower levels of quality may be
completely acceptable.
- Slide 10
- How Good is Good Enough?
- Slide 11
- Lean Six Sigma Methodology What is Lean Six Sigma?
- Slide 12
- LSS Methodology DMAIC Process Key Concepts Understanding
Variation Voice of the Customer Voice of the Process LSS
Organizational Roles Champion Master Black Belt Black Belt Green
Belt Yellow Belt
- Slide 13
- DMAIC Process Define What is the problem? What is the goal?
Measure What is the current performance? What is the defect rate?
Analyze What are the sources of process variation? What are the
root causes of defects? Improve How do we change the process? How
do we verify our changes will improve the process? Control Are the
improvements to the process consistent over time? How do we
maintain the improvement into the future?
- Slide 14
- Key Concepts of LSS Understanding of Variation Two types of
variation Controlled variation (Common Causes) Uncontrolled
variation (Assignable/Special Causes) Improvement strategy based on
type of variation Controlled variation = Change the process
Uncontrolled variation = Deal with the special events Voice of the
Customer (VOC) How does the customer describe quality What is the
customers tolerance for defects VOC is often expressed as
specification limits Goals should align with the voice of the
customer
- Slide 15
- Key Concepts of LSS Voice of the Process (VOP) What is the
current process capability How much variation is in the process How
many defects does it produce What is the process average What
process inputs are important to final quality Y=(x) Conceptual
Summary of Lean Six Sigma The Output (Y) is a function () of the
inputs (x)
- Slide 16
- LSS Organizational Roles Champions Master Black Belts Black
Belts Green Belts Yellow Belts
- Slide 17
- Lean Six Sigma Success Factors What are the building blocks for
successful LSS programs?
- Slide 18
- Considerations for LSS Success Organizational Factors
Commitment of Senior Management Clear organizational vision and
goals Effective LSS training strategy LSS Team Factors Flexibility
Practicality Focus on Customers (Internal and external) Strengths
of LSS Methodology Data Based Scalable Structured
- Slide 19
- Considerations for LSS Success LSS Challenges It is not a quick
win approach to continuous improvement It requires an investment It
requires a degree of organizational humility
- Slide 20
- Applying LSS in Human Resources Can I apply LSS to my
processes?
- Slide 21
- Questions for Consideration 1. You have mentioned that LSS is
an organizational approach. Can I learn LSS concepts and apply them
to my area of expertise? 2. What are the challenges faced when
trying to apply LSS to HR processes when the larger organization
hasnt embraced the methodology? 3. What are the unique challenges
for HR in the application of LSS? 4. What types of process are idea
for LSS application?
- Slide 22
- Effective LSS Application In HR A Case Study: The New York
Independent Operator (NYISO)
- Slide 23
- NYISO Success Factors Well-defined corporate mission and goals
Executive commitment to LSS Established infrastructure to support
LSS Systematic approach to LSS training Focus on core processes
(affecting multiple value streams) Supportive corporate goal
structure
- Slide 24
- Reliable operation of the bulk electricity grid Managing the
flow of power nearly 11,000 circuit-miles of transmission lines
from more than 300 generating units Administration of open and
competitive wholesale electricity markets Bringing together buyers
and sellers of energy and related products and services Planning
for New Yorks energy future Assessing needs over a 10-year horizon
and evaluating the feasibility of projects proposed to meet those
needs Advancing the technological infrastructure of the electric
system Developing and deploying information technology and tools to
make the grid smarter Background -- The Roles of the NYISO
- Slide 25
- Case Study Project Title: Reduce Cycle Time to Hire for Open
Positions Problem Project baseline data reviewed from November of
05 to November of 06 Average cycle time to hire was 70 days (Median
= 43 days) Standard deviation was 70 days 57 percent of positions
filled within 60 days Goal Fill open positions in 60 days or less
90 percent of the time Result 87 percent of positions were being
filled in 60 days or less (2007)
- Slide 26
- Overview of Improvements Defined and communicated HR Hiring
Process / Roles to NYISO Management Implemented Kick-Off Meetings
for all Openings: Review/Define Job Specs and Posting information
Discuss salary range and position level Discuss Pre-Screening
questions and timing Discuss Recruiting strategy Review Hiring
Process and HR/Hiring Manager Roles Standardized Pre-Screening
process and questions Developed standard interview format,
questions, evaluation Created dashboards for HR management and
Senior Team reporting
- Slide 27
- Controls Overview Process StepControl Activity Strategy
SessionRequisition signed by HR and Hiring Manager before
recruiting begins Job Description Changes Legal Review for Fair
Labor Standards Act ramifications Job Posting Preparation Hiring
Manager review / signoff before posting Offer
PreparationGeneralists secure approval signoff from Management and
HR
- Slide 28
- Appendix Supplemental Material
- Slide 29
- Improvement Process Road Map Analyze Control Improve Define
Activity Identify Problem Complete Charter Develop SIPOC Map
Finalize Project Focus Tools Charter Form Multi-Generational Plan
Stakeholder Analysis Communication Plan SIPOC Map Voice of Customer
(VOC) Defect definition Goal definition Analyze Activity Propose
Critical Xs Prioritize Critical Xs Conduct Root Cause Analysis on
Critical Xs Validate Critical Xs Prioritize Root Causes Tools
Pareto Charts Fishbone Diagrams Brainstorming 5 Whys Non
Value-Added Analysis Improve Activity Develop Potential Solutions
Develop Evaluation Criteria & Select Best Solutions Work with
EBPM&C to create Develop To-Be Process Map(s) Develop
High-Level Implementation Plan Develop Pilot Plan & Pilot
Solution Tools Brainstorming Solution Selection Matrix To-Be
Process Maps Piloting and Simulation Control Activity Develop SOPs,
Training Plan & Process Control System Implement Process
Changes and Controls Monitor & Stabilize Process Transition
Project to Process Owner Tools Control Charts Standard Operating
Procedures (SOPs) Communication Plan Implementation Plan Training
Plan Process Control Plans Measure Define Measure Activity Develop
Operational Definitions Develop Data Collection Plan Collect
Baseline Data Determine Process Performance/Capability Validate
Business Opportunity Review EBPM&C process maps to create As-Is
Process Map Tools Operational Definitions Data Collection Plan
Graphical Analysis Pareto Chart Histogram Box Plot Run Chart
Detailed As-Is Process Maps From: NYISO Green Belt Training
ModuleIntro to LSS
- Slide 30
- Why 6 Sigma?
- Slide 31
- Sources of Information The New Economics: W. Edwards Deming
Lean Thinking: James P. Womack and Daniel T. Jones Understanding
Statistical Process Control: Donald J. Wheeler and David S.
Chambers Lean Production Simplified: Pascal Dennis Knowledge gained
producing training material and supporting LSS training for the
following organizations: Delta Air Lines, Inc. New York Independent
System Operator
- Slide 32
- Helpful Links General Info: Six Sigma Website:
http://www.isixsigma.comhttp://www.isixsigma.com Organizations that
provide Six Sigma Training: ASQ:
http://asq.org/certification/index.htmlhttp://asq.org/certification/index.html
BMGI: http://www.bmgi.com/http://www.bmgi.com/
- Slide 33
- Disclaimer This presentation was not prepared by, with, or for
the New York Independent System Operator, Inc., and any opinions
expressed or conclusions reached herein are not the opinions or
conclusions of the New York Independent System Operator, Inc.