Amity Global Business School, Pune

Origin of Six Sigma Introduction to Six Sigma Methods Six Sigma Companies Six Sigma in HRM functions Case study

Amity Global Business School, Pune

The core of Six Sigma was born at Motorola in the 1970s (Bill Smith)
Amity Global Business School, Pune

Registered service mark and trademark of Motorola Inc. 2006: Motorola reported over US$17 billion in savings from Six Sigma.

Other early adopters: Honeywell and General Electric By the late 1990s, about two-thirds of the Fortune 500 organizations had begun Six Sigma initiatives with the aim of reducing costs and improving quality.
Amity Global Business School, Pune

Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of experts within the organization.

Amity Global Business School, Pune

A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million)

Amity Global Business School, Pune

Continuous efforts to achieve stable and predictable process results (i.e., reduce process variation) are of vital importance to business success.
Manufacturing and business processes have characteristics that can be measured, analyzed, improved and controlled.

Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management.
Amity Global Business School, Pune

Executive Leadership: top management. Champions: Six Sigma implementation across the organization 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 specific projects. Green Belts: take up Six Sigma implementation along with other job responsibilities.
Additionally, Yellow Belts: have basic training in Six Sigma tools; White belts: for those locally trained in the concepts but do not participate in the project team.

Amity Global Business School, Pune

Companies such as IBM use Lean Six Sigma to focus transformation efforts not just on efficiency but also on growth

Amity Global Business School, Pune

DMAIC- for improving an existing business process

Amity Global Business School, Pune

10

DMADV or DFSS (Design

creating new product or process designs

Define

for Six Sigma)- for

Verify Measure

Design

Analyze

Amity Global Business School, Pune

11

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

Amity Global Business School, Pune

12

Implementing Six Sigma in HR is no different than other functions.

The key is recognizing gaps or opportunities for improvement by breaking down processes in manageable chunks
13

Amity Global Business School, Pune

DMAIC Vs Action Research

Amity Global Business School, Pune

14

What should I do?

What should I measure?

How Can I Improve HR Processes

How can HR be at 3.4 parts per millionIt doesnt deal with a million people?

Amity Global Business School, Pune

15

What is the purpose the HR function or subfunction? What are the expected deliverables (people, skills, services, value, reports, etc.)? What are the measures of goodness of keydeliverables? What are the error opportunities for keydeliverables? What improvement activities are carried out in the HR function?
Amity Global Business School, Pune

16

reduction in overtime

reduction in time and cost to hire an employee

reduction in employee attrition or turnover

reduction in safety violations

reduction in cost of employee separation

HR response to internal inquiries for benefits, payroll, promotion and fairness.

Amity Global Business School, Pune

17

Amity Global Business School, Pune

18

Pre Intervention Scenario: HR was seen as reactive, uncoordinated, over-manned and unprofessional, delivering poor, slow and non cost-effective services.
HR managers: were demotivated & struggled with processes which were not clearly defined.
Amity Global Business School, Pune

19

MentorHR Director

Facilitator (Black Belt)

Internal customers:
stakeholders

the critical

HR process owners

Amity Global Business School, Pune

20

Primary- to develop & implement HR processes & measures of performance with embedded continuous improvement, owned by HR process participants, that would deliver defined strategy, with the focus on complete internal customer satisfaction.

Secondary: to increase job security and survival of HR central within the company, increase employability of HR staff, promote Six Sigma and promote the success of empowered, high-performance teams.

Amity Global Business School, Pune

21

 Service Customer expectation Process

PRIORITIZE

MOPs New Questions Process-value

CHART
complete-honestaccurate-relevanttimely

added, 'dead-ends', cycle time, rework defects, complexity

Six sigma tools

MEASURE

ANALYSE

Development and implementation of improvement solutions

Quarterly HR review report PoA for next review and a Six Sigma score chart

IMPROVE
Amity Global Business School, Pune

CONTROL
22

Cost of HR function per employee reduced by 34% in 18 months

Better, faster and more cost-effective HR services to the business. HR systems now transform problems into preventive actions that minimize the likelihood of reoccurrence HR employees started enjoying greater customer satisfaction and loyalty. It was recognized that HR dared to 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
Amity Global Business School, Pune

23

Change is vital, improvement is the logical form of change.

James Cash Penney

Amity Global Business School, Pune

24

http://accelper.com/pdfs/Six%20Sigma%20in%20Hum an%20Resources.pdf http://en.wikipedia.org/wiki/Six_Sigma http://www.isixsigma.com/new-to-six-sigma/rolesresponsibilities/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-trainingcertification-information/articles/six-sigma-andhuman-resources--a-match-made-in-businessheaven.html http://www.citehr.com/16983-six-sigmamethodology-hr-function-case-study.html

Amity Global Business School, Pune

25

Amity Global Business School, Pune

26