DMAIC Cost Reduction
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Transcript of DMAIC Cost Reduction
04/28/231 04/28/231
Project Name :RECRUITMENT COST REDUCTION
Project Owner :LOKESH MIGLANI
DMAIC
04/28/232
Project Progress Overview
D1. Map ProjectD2. Approve Project
M1. CTQ Characteristics& Standards
M2. Measurement System Analysis
M3. Data Collection
A1. Baseline ProcessA2. Performance
ObjectiveA3. Identify Drivers of
Variation
I1. Screen for Vital XsI2. Screen for vital XsI3. Define Improved
Process
C1. MSA on XsC2. Improved Process CapabilityC3. Establish Control Plan
Key Deliverables: • List of Customer(s) and
Project CTQs• Team Charter• High Level Process Map
(COPIS)• CAP Plan (Optional)• Preliminary CBA, if
applicable
• QFD / CTQ Tree• Operational definition,
Specification limits, target, defect definition for Project Y(s)
• Data Collection Plan• Measurement System
Analysis
• Baseline of Current
Process Performance• Normality Test • Statistical Goal
Statement for Project• List of Statistically
Significant Xs
• List of Vital Few Xs• Transfer Function(s)• Optimal Settings for
Xs• Confirmation
Runs/Results• Tolerances on Vital
Few Xs
• MSA Results on Xs• Post Improvement
Capability• Statistical Confirmation
of Improvements • Process Control Plan• Process Owner Signoff• Final CBA, if applicable
Tollgates:PlannedCompleted
10/June/2010 11/March/2010 mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy
XXXXXX 15/March/2010 mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy
Steps:
Tools: Survey Focus Groups Interviews ARMI, Stakeholder
Analysis In/Out of Frame Threat vs. Opportunity
Matrix Other ______________
Data Collection Plan Continuous Gage R&R Attribute Gage R&R Sample Size Calculator Other ______________
Basic Statistics Histogram Dot Plots Box and Whisker Plots Run Charts Normality Testing Continuous/Discrete Zst, Zlt Benchmarking Detailed Process Mapping Moments of Truth Nature of Work Flow of Work Fishbone Hypothesis Testing Regression Analysis Other ______________
DOE Pugh Matrix New Process Mapping FMEA on new process Process Modeling /
Simulation Other ______________
Continuous Gauge R&R Discrete Gauge R&R Control Charts Hypothesis Testing CAP Plan Control Plan Other ______________
Define Measure Analyze Improve Control
Overview
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Define
1. Map the Project2. Project Charter3. Terms and Acronyms Used4. ARMI & Communication Plan5. COPIS6. Process Map
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Customer Sample Comments Key Output CharacteristicsImportant to Customer (CTQ's)
CEO
Direct expenses are increasing against budgeted
cost because of recruitment through consultant
links.Direct Expenses
VP-HR Cost of hiring has gone up by …. of allotted
budget
Exceeding budgeting target
HR Executive
Increase in business and high rate of attrition, lot
of fast track hiring is done to fill in require
position to avoid loss at operation end.
Filling in required position to avoid
loss
DefineMap the Project
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DefinePre Data Analysis
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In Scope: M02 & M07 Grade Recruitment through economical and consultant link.
Out of Scope: All other grades recruitment.
Business Case: Recruitment cost through economical and consultant links has increased. Total 91712219 INR spent on recruitment out of which 59.7% spent on M02 grade recruitment and recruitment cost per person was highest in M07 grade category.
Problem Statement: Recruitment cost per person increased for M02 and M07 grades via consultant link
Goal Statement: To reduce recruitment per person of M02 & M07 grade by 25% ( M02- 4715 INR per person, M07-2116 INR per person )
Project Charter
Target Date Actual Date
Start Date 29.09.14 29.09.14
Define 01.01.14
Measure 11.10.14
Analyze 18.10.14
Design 25.10.14
Verify 01.11.14
High Level Project Plan
Define
04/28/237
Definitions:
Indicators Definition
New Vertical LOB (Line of Business)
Horizontal Department of the Employee
Sub Process As Per PS Sub Department of the Employee
Process Type The Line of Business, candidate has been hired for
Designation Designation of the Employee
Grade The level, candidate has been hired for
Source Source from reference (Job Portal)
Economical/Consultant-link Type of source
Cost Cost occurred for hiring new joiner
Terms and Acronyms Used Define
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Key Stakeholders Define Measure Analyze Improve Control
Sponsor I I I I I
Process Champion I I I I I
Black Belt I&A I&A I&A I&A I&A
Process Owner A&I A&I A&I A&I A&I
Team Member I&M I&M I&M I&M I&M
Message Audience Media Who When
Project Status Leaders E-mails Bi weekly
Phase review BB, MBB& Champion E-mails or meetings As per plan
Project deliverables or activities Members E-mails or meetings Weekly
When Populating the Stakeholder, consider the ARMI:• A= Approver of team decisions• R= Resource or subject matter expert (ad hoc)• M= Member of team• I= Interested Party who will need to be kept informed
Communication PlanCommunication Plan
DefineARMI WorksheetARMI Worksheet
ARMI & Communication Plan
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COPIS Define
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Process Map Define
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Measure
1. Data Collection Plan2. Measurement System Analysis3. Process Capability
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Y OperationalDefinition
DefectDefinition
PerformanceStandard
Specification Limit
Opportunity
Hiring cost
Total cost incurred by company from the point , hiring request raised to
joining of candidates for M02
& M07 grades
Hiring cost exceeded Budgeted
Cost
Recruitment cost per personM02-4715 INR per person
M07-2116 INR per person
USLM02-4715 INR per person
M07-2116 INR per person
Hiring cost per M02 & M07 Candidate
Data Collection Plan Measure
Y Data Type Unit Decimal to be Used
Data Base Container
Existing or new data
base
If New when data base would be
ready.
Plan start date for
DCP
Cost of Hiring Continuous INR No Excel Existing ------- ---------
Equipment Used for
measurement
Equipment Calibration Information
ResponsibilityAny
Training need
Operator Information
-------- -------- -------- -------- --------
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Measurement System Analysis
Rule Rule Description Acceptable Result
A R&R % of Tolerance <10%
B% Contribution (R&R Std deviation)
Smaller than Part-to-part
variance
C Number of distinct categories >4
Overall Gage result
Minitab Descriptive Stats
Insert Minitab session window descriptive stats.
For discrete data use the attribute gage study exhibit from Minitab
Measure
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Process Capability Measure
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1. DCP for Potential Xs2. Identify Potential Xs3. DCP for Potential Xs4. Basic Analysis for Project Y5. Checking for Impact of ...... on Y6. Hypothesis Summary7. MSA results of Impacting Factors
Analyse
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Identify Potential Xs Analyse
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DCP for Potential Xs
Potential Cause Type of Data Collection Method
Test to be Used Visualization plot Used
Outlining the Data Collection Steps for XsAnalyse
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Basic Analysis of Project Y
Randomness Study Normality Study
Randomness & Shape StudyAnalyse
04/28/2319
Basic Analysis of Project YStudy Spread and Central Tendency
Spread Study Central Tendency Study
Analyse
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Statistical Interpretation of relationship
Graphical Depiction Hypothesis Result
Inference :
Checking for Impact of ……on Y Analyse
04/28/2321
Statistical Interpretation of relationship
Graphical Depiction Hypothesis Result
Inference :
Checking for Impact of ……on Y Analyse
04/28/2322
Statistical Interpretation of relationship
Graphical Depiction Hypothesis Result
Checking for Impact of ……on Y
Inference :
Analyse
04/28/2323
Statistical Interpretation of relationship
Graphical Depiction Hypothesis Result
Inference :
Checking for Impact of ……on Y Analyse
04/28/2324
Statistical Interpretation of relationship
Graphical Depiction Hypothesis Result
Inference :
Checking for Impact of ……on Y Analyse
04/28/2325
Hypothesis Summary
Sl. No. Factor P Value Graphical
Tool Used Inference Next Steps
Summary of Impacting FactorsAnalyse
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MSA Results of Impacting FactorsChecking the Validity of the data of the impacting factors
Sl. No. Factor
MSA Method
UsedResult RCA for
Problems Next Steps
Analyse
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Improve
1. Screening of the Impacting Factors2. Action Plan for Improving the Factors3. Basic Analysis of Improved Y4. Pre–Post Analysis of Project Y5. Pre-Post Analysis of Factor6. Improve Summary – Take Aways
04/28/2328
Screening of the Impacting FactorsPrioritize the Impacting Factors
Improve
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Action Plan for Improving the Factors
# Pain Area Root Cause Improvement IdeaImplementati
on Owner
Implementation Status
Improve
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Basic Analysis of Improved Y
Randomness Study Normality Study
Randomness, Shape , Spread & Centering Study
Spread Study Central Tendency Study
Improve
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Pre-Post Analysis of Project YStatistical Validation of Impact
Graphical Depiction Hypothesis Result
Inference :
Improve
04/28/2332
Pre-Post Analysis of Project YStatistical Validation of Impact
Graphical Depiction Hypothesis Result
Inference :
Improve
04/28/2333
Pre-Post Analysis of FactorStatistical Validation of Impact
Graphical Depiction Hypothesis Result
Inference :
Improve
04/28/2334
Pre-Post Analysis of FactorStatistical Validation of Impact
Graphical Depiction Hypothesis Result
Inference :
Improve
04/28/2335
Pre-Post Analysis of FactorStatistical Validation of Impact
Graphical Depiction Hypothesis Result
Inference :
Improve
04/28/2336
Pre-Post Analysis of FactorStatistical Validation of Impact
Graphical Depiction Hypothesis Result
Inference :
Improve
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Improve Summary – Take Aways Improve
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1. Control Plan & FMEA on Control Plan2. Time Series Study of Y – Pre & Post3. Control Charts & Inference for Y – Pre & Post4. Basic Analysis of Improved Y5. Establish Process Capability6. Control Charts & Inference (for X1)7. Control Charts & Inference (for X2)8. Cost Benefit Analysis and Sign Off
Control
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Control Plan & FMEA on Control Plan
What’s Controlled Goal/Spec Limits Control Method Who/What Measures
Where Recorded
Decision Rule /
Corrective Action
SOP
Control
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Time Series Study of Y – Pre & Post Control
04/28/2341
Control Charts & Inference For Y – Pre & Post Control
04/28/2342
Basic Analysis of Improved Y
Randomness Study Normality Study
Randomness, Shape , Spread & Centering Study
Spread Study Central Tendency Study
Control
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Z Bench (Long Term Sigma)
Short Term Sigma(Long Term Sigma +1.5)
Process Capability – Post Implementation
Establish Process Capability Control
04/28/2344
Control Charts & Inference (For X1) Control
04/28/2345
Control Charts & Inference (For X2) Control
04/28/2346
Cost Benefit Analysis & Sign Off
Benefit Source Unit Benefit Units Impacted Total Benefit Cost Reduction
Enhanced Revenues
Labour Reduction
Decreased Overhead
COPQ Cost Reduction
Control
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What to see more of Want to see less of
Stakeholder Analysis
04/28/2349
Indicators Definition
Terms & Definitions Used
04/28/2350
RASIC