dmaic cost reduction

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Project Name :RECRUITMENT COST REDUCTION

Project Owner :LOKESH MIGLANI

DMAIC

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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

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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

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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

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Inference :


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Checking for Impact of ……on Y

Inference :

Analyse

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Inference :


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Inference :


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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

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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, Shape , Spread & Centering Study


Improve

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Pre-Post Analysis of Project YStatistical Validation of Impact


Inference :

Improve

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Pre-Post Analysis of Project YStatistical Validation of Impact


Inference :

Improve

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Pre-Post Analysis of FactorStatistical Validation of Impact


Inference :

Improve

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Inference :

Improve

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Inference :

Improve

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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

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Control Charts & Inference For Y – Pre & Post Control

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Basic Analysis of Improved Y


Randomness, Shape , Spread & Centering 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

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Control Charts & Inference (For X1) Control

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Control Charts & Inference (For X2) Control

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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

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Indicators Definition

Terms & Definitions Used

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RASIC

dmaic cost reduction

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