Six Sigma & Human Resources

8/2/2019 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)

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


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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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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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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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

http://www.brainyquote.com/quotes/quotes/j/jamescashp226511.htmlhttp://www.brainyquote.com/quotes/quotes/j/jamescashp226511.html


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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

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