Six Sigma & Human Resources
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Transcript of Six Sigma & Human Resources
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Amity Global Business School, Pune 1
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Origin of Six Sigma
Introduction to Six Sigma
Methods Six Sigma Companies
Six Sigma in HRM functions
Case study
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The core of Six Sigma
was born
at Motorola in the1970s (Bill Smith)
Amity Global Business School, Pune 3
http://en.wikipedia.org/wiki/Motorolahttp://en.wikipedia.org/wiki/Motorola -
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Registered service mark and trademark ofMotorola Inc.
2006: Motorola reported over US$17 billion insavings from Six Sigma.
Other early adopters: Honeywell and GeneralElectric
By the late 1990s, about two-thirds of the Fortune500 organizations had begun Six Sigma initiativeswith the aim of reducing costs and improvingquality.
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Six Sigma seeks to improve the quality of processoutputs by identifying and removing the causes ofdefects (errors) and minimizing variability inmanufacturing and business processes.
It uses a set of quality management methods,including statistical methods, and creates a specialinfrastructure of experts within the organization.
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A six sigma process is one in which99.99966% of the products
manufactured are statistically expectedto be free of defects (3.4 defects permillion)
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Continuous efforts to achievestable andpredictable process results (i.e., reduceprocess variation) are of vital importance tobusiness success.
Manufacturing and business processeshave characteristics that can be measured,analyzed, improved and controlled.
Achieving sustained quality improvementrequires commitment from the entireorganization, particularly from top-levelmanagement.
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Executive Leadership: top management.
Champions: Six Sigma implementation across theorganization in an integrated manner.
Master Black Belts: in-house coaches on Six Sigma,devote 100% of their time to Six Sigma
Black Belts: apply Six Sigma methodology to specificprojects.
Green Belts: take up Six Sigma implementation alongwith other job responsibilities.
Additionally, Yellow Belts: have basic training in SixSigma tools; White belts: for those locally trained in theconcepts but do not participate in the project team.
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Companies such as IBM use Lean Six Sigma to focustransformation efforts not just on efficiency but alsoon growth
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DMAIC- for
improvingan existingbusinessprocess
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DMADV orDFSS (Design
for Six Sigma)- forcreatingnewproduct orprocessdesigns
Amity Global Business School, Pune 11
Define
Measure
AnalyzeDesign
Verify
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3M Air Canada Amazon.co
m
AXA Bank of
America Boeing
Cognizant Cummins Deere & Co. Dell
DHL Ford GE GSK
HCL Honeywell HSBC LG Motorola Mumbai
Dabbawalas Pepsi Co
Samsung Sears SKF McGrawHill
Toshiba US Army Whirlpool Wipro Xerox
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Implementing Six Sigmain HR is no different thanother functions.
The key is recognizinggaps or opportunities for
improvement bybreaking downprocesses inmanageable chunks
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DMAIC Vs Action Research
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Amity Global Business School, Pune 15
What should I do?
What should Imeasure?
How Can I Improve HRProcesses
How can HR be at 3.4 partsper millionIt doesnt deal
with a million people?
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What is the purpose the HR function or sub-function?
What are the expected deliverables(people, skills, services, value, reports, etc.)?
What are the measures of goodness of key-deliverables?
What are the error opportunities for key-deliverables?
What improvement activities are carriedout in the HR function?
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Amity Global Business School, Pune 17
reduction inovertime
reduction intime and
cost to hirean
employee
reduction inemployeeattrition orturnover
reduction insafety
violations
reduction incost of
employeeseparation
HR responseto internal
inquiries forbenefits,payroll,
promotionand fairness.
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Pre Intervention Scenario:
HR was seen asreactive, unco-
ordinated, over-manned andunprofessional, delivering poor,
slow and non cost-effectiveservices.
HR managers: weredemotivated &struggled withprocesses which were notclearly defined.
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Amity Global Business School, Pune 20
HR
processowners
Facilitator(BlackBelt)
Mentor-HR
Director
Internal
customers:thecritical
stakeholders
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Primary- to develop & implementHR processes & measures of
performance with embeddedcontinuous improvement, owned byHR process participants, that would
deliver defined strategy, with thefocus on complete internal
customer satisfaction.
Secondary: to increasejob securityand survival of HR central within thecompany, increase employability of
HR staff, promote Six Sigma andpromote the success of empowered,
high-performance teams.
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Service
Customerexpectation
Process
PRIORITIZE
MOPs
New Questions Process-value
added, 'dead-ends',cycle time, reworkdefects, complexity
MEASURE
CHART
complete-honest-accurate-relevant-timely
Six sigma tools
ANALYSE
Developmentandimplementationof improvementsolutions
IMPROVE
Quarterly HRreview report
PoA for nextreview and a SixSigma scorechart
CONTROL
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Cost of HR function per employee reduced by 34% in 18months
Better, faster and more cost-effective HR services to thebusiness. HR systems now transform problems into
preventive actions that minimize the likelihood ofreoccurrence
HR employees started enjoying greater customersatisfaction and loyalty. It was recognized that HR daredto measure themselves, change and had been
proactive
Reduction in throughput time, defect and rework Aligned personal, team and company goals around HR
and business strategy
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Change is vital, improvement is the
logical form of change.
James Cash Penney
Amity Global Business School, Pune 24
http://www.brainyquote.com/quotes/quotes/j/jamescashp226511.htmlhttp://www.brainyquote.com/quotes/quotes/j/jamescashp226511.html -
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http://accelper.com/pdfs/Six%20Sigma%20in%20Human%20Resources.pdf
http://en.wikipedia.org/wiki/Six_Sigma http://www.isixsigma.com/new-to-six-sigma/roles-
responsibilities/role-human-resources-hr-six-sigma/ http://www.hrotoday.com/content/1220/six-sigma-hr http://www.qualitygurus.com/courses/mod/forum/dis
cuss.php?d=1944 http://www.sixsigmaonline.org/six-sigma-training-
certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.html
http://www.citehr.com/16983-six-sigma-methodology-hr-function-case-study.html
Amity Global Business School, Pune 25
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in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/six-sigma-and-human-resources--a-match-made-in-business-heaven.htmlhttp://www.qualitygurus.com/courses/mod/forum/discuss.php?d=1944http://www.qualitygurus.com/courses/mod/forum/discuss.php?d=1944http://www.hrotoday.com/content/1220/six-sigma-hrhttp://www.hrotoday.com/content/1220/six-sigma-hrhttp://www.hrotoday.com/content/1220/six-sigma-hrhttp://www.hrotoday.com/content/1220/six-sigma-hrhttp://www.hrotoday.com/content/1220/six-sigma-hrhttp://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://www.isixsigma.com/new-to-six-sigma/roles-responsibilities/role-human-resources-hr-six-sigma/http://en.wikipedia.org/wiki/Six_Sigmahttp://accelper.com/pdfs/Six%20Sigma%20in%20Human%20Resources.pdfhttp://accelper.com/pdfs/Six%20Sigma%20in%20Human%20Resources.pdf 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A it Gl b l B i S h l P 26