HR six sigma process

HR six sigma process

1. HR Six Sigma Process Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt) Professor Al-Qurmoshi Institute of Business Management, Hyderabad - 500005

2. What is Six Sigma? Six Sigma is a statistical management technique that seeks to drive defects to less than 3.4 defects per million.  Defects are defined as any non-conformance to customer specifications.  Once the causes of defects are identified, processes are modified to avoid the causes. It implies a customer driven approach where the customers may be internal or external.

3. DMAIC Six sigma implementation is through a process called DMAIC (Define, Measure, Analyze, Improve, Control)

4. DMAIC (Contd.) 1. Define the problem , the voice of the customer, and the project goals, specifically. 2. Measure key aspects of the current process and collect relevant data. 3. Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are , and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.

5. DMAIC (Contd.) 4. Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. 5. Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems, such as, statistical process control, production boards, visual workplaces, and continuously monitor the process.

6. σ ( sigma ), the standard of deviation, marks the distance on the horizontal axis between the mean, µ, and the curve's inflection point . The greater this distance, the greater is the spread of values encountered. For the curve shown above, µ = 0 and σ = 1. Upper and lower specification limits (USL, LSL) are at a distance of 6σ from mean. Values lying that far away from the mean are extremely unlikely. Even if the mean were to move right or left by 1.5σ at some point in the future (1.5 sigma shift), there is still a good safety cushion. Six Sigma aims to have processes where the mean is at least 6σ away from the nearest specification limit. Graph of Normal Distribution

7. Standard Deviation, σ(sigma) σ ( sigma ), the standard deviation, is found by taking the square root of the average of the squared differences of the values from their average value. For example, consider a population consisting of eight values: 2,4,4,4,5,5,7,9 These eight data points have the mean (average) of 5: (2+4+4+4+5+5+7+9)/8 To calculate the population standard deviation, first compute the difference of each data point from the mean, and square the result of each: Next, compute the average of these values, and take the square root: Standard Deviation, σ=

8. L S L p p m p p m 3 . 4 1 . 5 s U S L p p m 3 . 4 p p m 6 6 8 3 m + / - 6 s Six Sigma, Tolerance 6 s

9. Performance Standards 2 3 4 5 6 308537 66807 6210 233 3.4  PPM 69.1% 93.3% 99.38% 99.977% 99.9997% Yield Process performance Defects per million Long term yield Current standard World Class

10. Consider a 99% Quality Level 5000 incorrect surgical operations per week! 200,000 wrong drug prescriptions per year! 2 crash landings at most major airports each day! 20,000 lost articles of mail per hour!

11. Six Sigma Benefit in HR Functions o Reduce the time required to hire an employee. o Improve employee orientation processes. o Reduce expenditures for Recruitment. o Improve timeliness and the value of employee performance reviews. o Reduce absenteeism. o Improve training efficiency. o Improve employee satisfaction. o Identify and correct retention issues. o Reduce Incentive Compensation errors. o Eliminate Over payments to Terminated Salaried Employees. o Improve grievance handling process. o Consolidate employee information databases. o Integrate multiple payroll systems for remote locations. o Increase job posting hit rate. o Increase retention using exit interview information

12. Six Sigma Roles & Responsibilities Sponsor Senior executive who sponsors the overall Six Sigma Initiative. Leader Senior-level executive who is responsible for implementing Six Sigma within the business. Champion Middle- or senior-level executive who sponsors a specific Six Sigma project, ensuring that resources are available and cross-functional issues are resolved. Black Belt Full-time professional who acts as a team leader on Six Sigma projects. Typically has four to five weeks of classroom training in methods, statistical tools, and team skills.

13. Six Sigma Roles & Responsibilities (Contd.) Master Black Belt Highly experienced and successful Black Belt who has managed several projects and is an expert in Six Sigma methods/tools. Responsible for coaching/mentoring/training Black Belts and for helping the Six Sigma leader and Champions keep the initiative on track. Green Belt Part-time professional who participates on a Black Belt project team or leads smaller projects. Typically has two weeks of classroom training in methods and basic statistical tools. Team Member Professional who has general awareness of Six Sigma and who brings relevant experience or expertise to a particular project. Process Owner Professional responsible for the business process that is the target of a Six Sigma project.

14. Six Sigma Roles & Responsibilities (Contd.) Leaders and Champions usually receive high-level training on the technical aspects of Six Sigma and specific training on how to lead an initiative. At the “Belt” level, each candidate is assigned an initial “training project” that he/she will work on during the formal training period. Candidates attend classroom training for a week, work on their projects for three weeks, return to class for another week, and so on until they have acquired all the skills appropriate to their role.