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Introduction to Lean Six Sigma

A Human Resources Perspective

Agenda
Short Biography
History of Lean Six Sigma (LSS)
LSS Methodology
Success Factors
Application to HR
Examples of project ideas
New York ISO case study

About the Presenter


David Duda
Over twelve years of LSS experience
Delta Airlines, Inc. 1998-2008
Production based application of LSS
New York Independent System Operator

2008--Present
Service/transactional based application of LSS

Certified Six Sigma Black Belt


Contact Info: pdduda@gmail.com

The History of Lean Six


Sigma
A New Approach to Quality

History of Lean Six Sigma


What is in a name?
Lean -- Focuses on removing waste (muda)

from processes
Six Sigma Focuses on understanding and
reducing variation in processes
Lean Six Sigma (LSS) Combines both
approaches
What is the Concept behind LSS?
As wasteful activities are removed overall

process variation is reduced


Lean Six Sigma is one of many

methodologies developed through the


Quality Revolution

HistoryEvolution of Quality
Craft Production
Each item is unique
Individual parts made to fit
Quality through craftsmanship

Mass Production
High volume
Interchangeable parts
Quality through inspection

Better Production
Understanding of process variation
Quality through process

Evolution of Quality--Timeline
1798
Interchangeabl
e Parts
Eli
Whitney

1920s
Statistical
Process
Control
Walter
Shewhart

1950

1960

1980

Reconstruct
ion of Japan

Toyoda
Productio
n System

Six
Sigma

Deming &
Juran

Eiji
Toyoda

Motorol
a

Expanding Application of LSS


Initially applied in production environments
Manufacturing
Supply Chain
Maintenance Repair and Overhaul (MRO)

Rapidly grew into transactional applications


Financial Institutions
Insurers

Continued to expand to services


Hospitals and Health Care

A Couple of Questions
1. What does Six Sigma mean?
a.

A process that has a six sigma level of


quality experiences only three defects per
one million opportunities.

2. Is it Important to have a six sigma level of

quality?
a) It depends on the customers perception of

quality. If you are landing airplanes, it is


critical to obtain at least a six sigma level of
quality. If you are manufacturing coffee
stirrers, lower levels of quality may be
completely acceptable.

How Good is Good Enough?

Lean Six Sigma Methodology


What is Lean Six Sigma?

LSS Methodology
DMAIC Process
Key Concepts
Understanding Variation
Voice of the Customer
Voice of the Process

LSS Organizational Roles


Champion
Master Black Belt
Black Belt
Green Belt
Yellow Belt

DMAIC Process

Key Concepts of LSS


Understanding of Variation
Two types of variation
Controlled variation (Common Causes)
Uncontrolled variation (Assignable/Special Causes)
Improvement strategy based on type of

variation
Controlled variation = Change the process
Uncontrolled variation = Deal with the special

events

Voice of the Customer (VOC)


How does the customer describe quality
What is the customers tolerance for defects
VOC is often expressed as specification limits
Goals should align with the voice of the

Key Concepts of LSS


Voice of the Process (VOP)
What is the current process capability
How much variation is in the process
How many defects does it produce
What is the process average
What process inputs are important to final

quality

Conceptual Summary of Lean Six


Sigma

Y=(x)

The Output (Y) is a function () of the


inputs (x)

LSS Organizational Roles

Lean Six Sigma Success


Factors
What are the building blocks for successful LSS
programs?

Considerations for LSS


Success
Organizational Factors
Commitment of Senior Management
Clear organizational vision and goals
Effective LSS training strategy

LSS Team Factors


Flexibility
Practicality
Focus on Customers (Internal and external)

Strengths of LSS Methodology


Data Based
Scalable
Structured

Considerations for LSS


Success
LSS Challenges
It is not a quick win approach to continuous

improvement
It requires an investment
It requires a degree of organizational
humility

Applying LSS in Human


Resources
Can I apply LSS to my processes?

Questions for Consideration


1. You have mentioned that LSS is an

organizational approach. Can I learn LSS


concepts and apply them to my area of
expertise?
2. What are the challenges faced when
trying to apply LSS to HR processes when
the larger organization hasnt embraced
the methodology?
3. What are the unique challenges for HR in
the application of LSS?
4. What types of process are idea for LSS
application?

Effective LSS Application


In HR
A Case Study: The New York Independent Operator
(NYISO)

NYISO Success Factors


Well-defined corporate mission and goals
Executive commitment to LSS
Established infrastructure to support LSS
Systematic approach to LSS training
Focus on core processes (affecting multiple

value streams)
Supportive corporate goal structure

Background -- The Roles of the NYISO


Reliable operation of the bulk electricity grid

Managing the flow of power nearly 11,000 circuitmiles of transmission lines from more than 300
generating units

Administration of open and competitive

wholesale electricity markets

Bringing together buyers and sellers of energy and


related products and services

Planning for New Yorks energy future

Assessing needs over a 10-year horizon and


evaluating the feasibility of projects proposed to
meet those needs

Advancing the technological infrastructure of

the electric system

Case Study Project


Title: Reduce Cycle Time to Hire for Open Positions
Problem
Project baseline data reviewed from November of 05

to November of 06
Average cycle time to hire was 70 days (Median = 43
days)
Standard deviation was 70 days
57 percent of positions filled within 60 days
Goal
Fill open positions in 60 days or less 90 percent of the

time
Result
87 percent of positions were being filled in 60 days or

less (2007)

Overview of Improvements
Defined and communicated HR Hiring Process / Roles to

NYISO Management
Implemented Kick-Off Meetings for all Openings:
Review/Define Job Specs and Posting information
Discuss salary range and position level
Discuss Pre-Screening questions and timing
Discuss Recruiting strategy
Review Hiring Process and HR/Hiring Manager Roles
Standardized Pre-Screening process and questions
Developed standard interview format, questions,
evaluation
Created dashboards for HR management and Senior
Team reporting

Controls Overview
Process Step

Control Activity

Strategy Session

Requisition signed by HR and


Hiring Manager before recruiting
begins

Job Description
Changes

Legal Review for Fair Labor


Standards Act ramifications

Job Posting
Preparation

Hiring Manager review / signoff


before posting

Offer Preparation Generalists secure approval


signoff from Management and
HR

Appendix
Supplemental Material

Improvement Process Road Map

Define

Measure

Analyze

Improve

Control

Define

Measure

Analyze

Improve

Control

Activity
Identify Problem
Complete Charter
Develop SIPOC Map
Finalize Project Focus

Activity
Develop Operational
Definitions
Develop Data Collection
Plan
Collect Baseline Data
Determine Process
Performance/Capability
Validate Business
Opportunity
Review EBPM&C process
maps to create As-Is
Process Map

Activity
Propose Critical Xs
Prioritize Critical Xs
Conduct Root
Cause
Analysis on Critical
Xs
Validate Critical Xs
Prioritize Root
Causes

Activity
Develop Potential
Solutions
Develop Evaluation
Criteria & Select Best
Solutions
Work with EBPM&C to
create Develop To-Be
Process Map(s)
Develop High-Level
Implementation Plan
Develop Pilot Plan &
Pilot Solution

Activity
Develop SOPs, Training
Plan & Process Control
System
Implement Process
Changes and Controls
Monitor & Stabilize
Process
Transition Project to
Process Owner

Tools
Charter Form
Multi-Generational
Plan
Stakeholder Analysis
Communication Plan
SIPOC Map
Voice of Customer
(VOC)

Defect
definition

Goal definition

Tools
Operational Definitions
Data Collection Plan
Graphical Analysis

Pareto Chart

Histogram

Box Plot

Run Chart
Detailed As-Is Process
Maps

Tools
Pareto Charts
Fishbone Diagrams
Brainstorming

5 Whys
Non Value-Added
Analysis

Tools
Brainstorming
Solution Selection
Matrix
To-Be Process Maps
Piloting and Simulation

From: NYISO Green Belt Training ModuleIntro to LSS

Tools
Control Charts
Standard Operating
Procedures (SOPs)
Communication Plan
Implementation Plan

Training Plan
Process Control Plans

Why 6 Sigma?

Sources of Information
The New Economics: W. Edwards Deming
Lean Thinking: James P. Womack and

Daniel T. Jones
Understanding Statistical Process Control:
Donald J. Wheeler and David S. Chambers
Lean Production Simplified: Pascal Dennis
Knowledge gained producing training
material and supporting LSS training for
the following organizations:
Delta Air Lines, Inc.
New York Independent System Operator

Helpful Links
General Info:
Six Sigma Website: http://www.isixsigma.com
Organizations that provide Six Sigma
Training:
ASQ: http://asq.org/certification/index.html
BMGI: http://www.bmgi.com/

Disclaimer
This presentation was not prepared by, with, or for the New York Independent
System Operator, Inc., and any opinions expressed or conclusions reached herein
are not the opinions or conclusions of the New York Independent System
Operator, Inc.

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