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How to work out Savings for this GB project ?

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  • #28048

    Uma MB
    Member

    As the first Green Belt project I intend taking up to increase productivity of fresh graduates joining IT company (specifically in the IBM Mainframe technology area). Some of the factors affecting productivity of newcomers are :
    Lack of Technical Experience
    Lack of Functional Knowledge/Business Application
    A couple of CTQs emerging out of the QFD exercise is Ontime Delivery and Quality of the deliverables.
    For the R0 form, I need to show Savings. In such an area as this one, should I be measuring productivity of the newcomer while keeping track of salary of the newcomers and work out savings ? Is there some other attribute from which I can work out savings ? Please guide me.
    Thank you much in advance.
    Uma MB.
     

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    #69480

    max spoto
    Participant

    Hi, I will be leading a GB project in an investment bank and I would like to know what are the fundamental step to follow, what training material I need to view and what is the first document to be drafted..Many thanks for your help…Max

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    #69481

    Prakash Gole
    Participant

    Uma,
    I think, in this type of projects you could show the effort saved due to productivity gain. So the cost-benifit analysis could be the cost of executing this project and benifit is the person-days saved due to the productivity gain. I don’t think it is needed to look at the salaries to prove the benifit in this project.
    – Prakash

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    #69498

    Scott Pylat
    Member

    One of the factors that I think is a cost to the company of new hire is the amount of time required of “old hands” to assist the newbie.
    As a person gets more experienced, the less time they have to rely on others. 
    One area that I think most often overlooked is the quality of information provided to the new hire in the administrative or available resources arenas.  What I mean by this is does your company have accurate functional/organization charts, directories of information, and even accurate phone books?  If you do not, the new guy has to ask an old guy where to find information.  The new guy can be technically an expert but not know how to get at the information required to perform the duties.
    I ramble but take aways are:
    A metric might be tracking existing employees time to determine level of support. 
    An opportunity to get low hanging fruit would be a well developed welcome package.
     

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    #69501

    Steve MacDougall
    Member

    Good morning,
    As a Black Belt for a manufacturing facility, I tend to be critical of projects that are undertaken by the Green Belts that I mentor and train.  This brings me to your project. 
     
    While I’ll admit to having major exposure to non-transactional processes, I still have to ask the fundamental question:  What are you going to realize in “bottom dollar” savings to your company by undertaking this project?  From what you outline in your post, gaining time measurements is going to be difficult for you to obtain (I.e., a “newbie” asking an “old-timer” for the phone number of another employee).
     
    Maybe I didn’t fully comprehend your metrics, or what outcome (goal) you’re targeting for your project, but I don’t want to see someone going through Green Belt training struggle because of a difficult project either.  From where I sit, I worry that this might be the case when it comes time to determine your Return on Investment (ROI) because of the difficulty you’re having with putting together a baseline measurement.
     
    I hope these ramblings offer some assistance to you.  I’d be happy to discuss it further with you if you’d like.  Otherwise, I wish you success in not only this project, but those in the future as well.
     
    Steve MacDougall
    Six Sigma Black Belt
    Woodward
    USA

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    #69505

    Uma Balasubramanian
    Member

    Thanks to all those who have taken time to respond to my query as to how to work out savings in a GB project that addresses productivity of newcomers in projects (IT world).
    Steve, I have a means of measuring productivity as in our organization we estimate work in terms of size and efforts needed to complete the work. Size / Actual Efforts = Productivity. This gets recorded in our in-house system.
    I am planning to take this Productivity as my measurement unit. Assuming that I gather this data for an engineer who has say 3 months experience, the next task for me is to decide by what percentage I am planning an increase ? This is where I do not know what to commit and thus am still trying to figure out what my goal statement should be. Do I aim for a 10% or 20 % increase in Productivity – gut feelings are a strict no-no in a GB project. I need to quote a figure and talk in ‘numbers’.
    I am looking at improvements by way of having a senior team member mentoring a new team member thereby increasing his/her comfort levels, orient the newcomer by 10-12 one hour sessions to bring him up-to-date with the processes followed and the application he is going to work on. Make our checklists used in QC more robust. But I am still unable to quote by what percentage the productivity will increase. Or how do I state that a certain work unit taking 10 days in the current world is going to take only 5 days after the improvement process (GB project) is implemented.
    I am still collecting VOC and categorizing them into CTQs and trying to do the QFD chart. But the R0 form asks a whole lot of things for which I have no answer as of this point in time.
    Any advice, suggestions from experts are welcome.
    With Best Regards and Many Thanks in advance,
    Uma MB.
     
     
        

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    #69506

    Uma Balasubramanian
    Member

    Max,
    Being a new entrant in this field, I may not be of great help to you, what with great experts participating in this forum. But I started just like you more or less and would therefore like to share whatever I know and the experts can correct me where necessary and refer you to appropriate books and other websites.
    Also, somewhere in this site I have come across a list of deliverables for each stage of a Six Sigma Green Belt Project: Define, Measure, Analyze, Improve and Control (DMAIC). There is also the DMADV. You will also find a lot of information in http://www.smartersolutions.com which talks about charts, tools and where and when they have to be used. Even in this isixsigma.com site, we have many topics talking about DMAIC.
    You always start off by collecting the Voice of Customer (VOC) – simple statements made by your customers – which could be complaints, suggestions, expectations etc. And then draw out what are known as CTQs (Critical To Quality) to each statement made by the customer. Several statements will point to the same CTQ. E.g. “I wish this XYZ company would not delay my house loan processing so much. It has been 6 weeks now since I submitted the application form with supporting documents” – which ties to the CTQ ‘Quick Turn around time in Processing loans’. Then all the different CTQs are rated (given a weightage) in a QFD chart. It will be very difficult to explain everything in this kind of forum. You could undergo a Green Belt training or teach yourself through websites and books. Some references are available on sites      
    I hope this helps you in some way.
    Best Regards,
    Uma MB.
     
     

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    #71009

    MyNetBuddy
    Participant

    This sounds like a good approach to stress productivity at the cost of creativity. Your project would be appreciated by the garment industry – in the early 1900’s. I can’t think of a better misapplication of the six sigma process! IT professionals are not CNC machines.

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    #71010

    Hemant
    Participant

    Hi may be this should help. You should target at an breakthrough improvement (i.e 25% over present level). At this stage you dont have the solutions so you will have to rely on your judgement (at this stage), once you are through measure phase you will have a better understanding of the target level. If you would like to go in for data driven target, I would suggest do some benchmarking study of various IT companies. May be this should be of help.

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    #79824

    vvk
    Member

    I won’t worry about the salary. You can look at time taken for a new graduate to be productive. The key is how do you measure “being productive”. You may have to put some measurement systems in place.
     
    venkatesh
     

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    #131390

    Ashu
    Participant

    Hi Uma,
    I think that would be a good starting point and as you start making improvements in productivity, there will be a good chance that you will be able to gradually reduce hiring of fresh graduates as the productivity of the existing ones will increase. In that case, you will be able to avoid hiring and training costs as well.

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    #137606

    HMG
    Participant

    Hi all,
    Im currently looking at doing a HR related DMAIC PJ. The discussions I saw in this thread sounds interesting.
    Can I seek clarifications on some of what was discussed?
    1. What are the other ways of defining productivity? if we do not have such in-house system that actually measures them..
    2. How to get the benchmarks for eg recruitment costs for other coys in the similar industries?
    3. In this increasing productivity PJ, why is there a need to collect VOC? From the newbies? What do u ask them and how can the collected info be used?
    So sorry im rather new and need help in my first PJ.
    Thank you

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    #151303

    Anwar
    Participant

    Rather than concentrating on productivity of new comers would be a good thought to look into utilization/occupancy and gather data for productivity for a couple of months then by analysing the same, you can find areas effecting there performance and then by using them as saving for your projects you can work out the cost bit.

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