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HR Six Sigma Time to Fill (REcruiting Project)

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Viewing 14 posts - 1 through 14 (of 14 total)
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  • #32782

    Donna
    Participant

    I have selected to “Reduce Cycle Time” in Days to Fill open positions in the HR function.  I have tons of data, cost, days to fill by recruiter, by month, sourcing and requisition process.  Trouble is I’m having difficulty in “quantifying the overall saviings” that could potentially occur. I estimated that the saving could be $25-30K per year, but I think that is very low.  If anyone can give me some guidance, on this issue, I would appreciate it.  I am in training for the Green Belt.
    thank you

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    #87951

    Richard
    Member

    It’s always somewhat difficult to predict the cost savings at this early stage of the project.  Important is that you justifiy your assumptions in the documentation so that your managers can see where you are comming from.  I’d suggest you start by thinking about the project and then get an idea of the cost savings.
    A process map (flow chart) with the current time for each step will help.  Then you need a cost for each stage (eg. Advertising the position – $x, Interview day – $x).  If relevant, a cost factor for the waiting time for the person (eg. On cost for a temporary worker – $x/day, Orders lost though understaffing $x).  Then you need to look at which steps of the process can be eliminated and which can be shortened.
    Your cost saving is given by the cost of the eliminated steps + the cost of the waiting time.  You must also consider cost change of reducing the lenght of the steps (is this more or less?).

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    #88082

    Donna
    Participant

    Richard
    Thank you for your post.  I am struggling through this training, and it’s intense with the Minitab product.  One of my problems will be which tools to use with what data….I have done the initial stuff the Measure Phase, and have all that done with Capability ANalysis, the Normality TEsts, the XY Matrix, Voice of the Customer…etc.  It’s the anlayze phase that will be the “killer”.  Again, appreciate the thoughts.
    donna

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    #88098

    Richard
    Member

    I’d suggest, as you are looking for a cause from many factors, the first step would be a fishbone diagram of the possible causes of delay.  This might be acheived in a brainstorming with the people involved in the process.
    After that you could establish a measurement index.  This could simply be the length of delay but if different positions cost the company a different amout depending on delay, you might want to multiply the length by a variable for the “importantness” of the position.
    The next step would be pareto analysis of the index against the delay catagory.  This should give you the most important causes.
    It sounds like you have data and analyis of the “is” status.  You could consider making a change based on the results of the pareto (example: if the Pareto shows the index to be high for time spent waiting for the documents to travel through internal post, you might have them scanned in the post room and emailed to the relevant recruiter who can then email them further rather than posting.).
    After the change, you can measure again and perform a hypothesis testing (ANOVA, t-test) to determin whether your move was sucessful.
    I’m not sure if this answer is a little simplistic or obvious for you.  It’s difficult to suggest a specific analysis without the project data.
    Good luck further with the greenbelt training and try not to get too hooked up in the minitab.  It’s a great program but not a prerequisit for a good project and shouldn’t detract from your goal.
    Regards
    Richard
     

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    #88132

    Donna
    Participant

    Richard
    I have done the “cause and effect”, have done the process flow, the beginning of my FMEA, my discriptive analysis with the P.Value, and the data shows as Normal.  I have done the normality test, and a pareto.  The criteria that show as most critical:
    Manual requisition process,
    Feedback from Manager about the candidate
    Scheduling and rescheduling of the 4/5 interviews with the hiring manager.
    I’ve just completed my second week of green belt training, and we had to present to our leadership team, our Project definitions, voice of the customer, all of our charts/graphs and cost of poor quality.  Most of my costs were TBD.  I have a test that I’m taking this weekend, I have to turn it in on monday, mostly Minitab problems regarding T/Tests, F Tests, Weibull stuff, normal, non normal.  I’m pretty confused at present, but think I will be OK.  I certainly wish I had had some statistic courses under my belt, so I have to try a little harder to pay attention to the PValue and the statement of risk….that’s been my confusion too.  thanks again.
    Donna

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    #88273

    Al
    Participant

    Looks like you’ve been getting some great advice.  You’re right also that $25-30k sounds low.
    Can I suggest a different tack which might bring some further clarity.  What does your problem statement say about the impact the current failure has on the business?  Your ability to quantify the savings will, to a certain extent, depend on the level of “pain” currently being experienced, measured in $ or time terms and by how much this “pain” can be reduced.  If you’re not clear on the currrent level of pain, then it will be more difficult to gauge the extent by which it will be improved when you implement your solution.
    You indicate that you have chosen Reduce Cycle Time as you objective – I’d be interested to understand the reason for selecting this path, rather than, say, “hire more recruiters”.  If the data suggests that cycle time is the biggest issue, then there should be a way of quantfying it versus other causes.
    Once you have your process mapped, it might be useful to talk to your Finance people to see how they can help with evaluating the impact of extended cycle time.  Having done similar exercises previously a number of potential costs spring to mind, including 1) differential in total cost to hire temporary staff compared to permanent staff, 2) impact on delivery to customers in terms of lost orders due to lack of staff, 3) costs of advertising are higher because of longer campaigns 4) elimination of rework when job specs, applications etc get passed backwards and forwards between HR, the operation and the recruiters.
    Wishing you success in your project going forward.
    Al
      
     
     
     
     
     

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    #88288

    Susane
    Member

    Al:
    Excellent response.  She definitey needs to go back to the process map and look for hidden factories, rework, etc.  And I couldn’t agree more as to what does the problem statement reference.   I think she is all over the place right now and needs to get this narrowed done.  Great advice for her from all, I hope she is successful and sounds like a fun project as well.

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    #88293

    reinaldo
    Participant

    Complementing the Richard’s advice:Begin a map of where you are now, a “Current State map” then you can map out where you want to be in the future, a “Future State map”.Mapping out the activities in your process with cycle times, information flow paths, etc, will help you visualize the current state of the process activities and guide you towards the future desired state.

    This called Value Stream Mapping.

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    #88331

    sanjeev
    Member

    If somebody have done some work it, please  forward at [email protected].
    Regards
    Sanjeev.

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    #88350

    LowlieBB
    Participant

    Donna – I’ve been involved with at least one project like yours. The obvious COPQ is the time and effort tied up in the process itself. Sometimes just opening up your process boundries a little help you define your COPQ i.e. instead of from the time HR receives a requisition until the hiring date to something like – from the time a need is identified to the time an new enmployee has completed orientation (or something like that).
    We found our process took a long time, but worse, the requestors had such a difficult time with the requisitions that they would choose alternatives such as OT to try to get work done without hiring new resources.
    We also found that some of the HR and orientation paperwork that was filled-out upon employee arrival could be sent with the pre-employment package which didn’t save time in the hiring process, but made the overall time to getting an effctive employee on board faster.
    We also found another interesting phenom. The hiring process took so long, that by the time we went to make an offer, often the hiring manager’s first choice had already found gainful employment elsewhere. What is the cost to that department of not getting the best quality people.
    Obviously, when there is work to be done, and you are waiting to get someone hired, there are other potential downstream effects. OT for the department that is waiting for a resource, project schedule delays, etc.
    Best of Luck !

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    #88358

    Donna
    Participant

    Thank you all for your valuable comments.  My presentation was last week, and what we have decided is that this is too big to “bite the entire” apple. What I think my serve our purpose best is to take the process piece that is most painful, and concentrate on that one. Once we’ve done  that we can make some improvements. One of the areas that seems to create the most pain, is “feedback from managers, and scheduling and rescheduling” of interviews, and as you all have said, we run the risk of loosing the best candidates.
    We are looking at panel interviews, and potentially automating the “feedback process for the managers.  If we can reduce our time to fill by I believe anywhere from 7 up to 15 days we will have accomplished a huge part of the goal.
    Hiring more recruiters is not the answer.  We have plenty of recruiters, and in a down market, would be a difficult thing to convince the leaders of such an activity. 
    Again, thank you all  – and we are moving into the analyze phase now.
    Donna

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    #88367

    Sarang
    Member

    Donna,
    I will like to add one more factor which I think will govern the whole process of recruitment itself….in your six-sigma project.
    It’s “forecast of staff/manpower requirement”.
    Let me try to explain this …Lets say staff/man-power is required on 1st Aug. in design dept. & HR dept. get this information lets say 26th July (ie 5 days prior) to got for recruitment.
    Now if HR recruitment cycle itself takes 10 days (excluding time taken by candidate to join) then delay is abvious.
    For this probable solutions is to intimate HR dept for in advance & defining the time for the same.
    Its  just the input, ignore if its not part of your six-sigma project
    thanks

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    #88389

    Riam
    Member

    I just got to look into your forum now. It’s very good to know that someone is working on the same project.
    I myself is working on Reduce Cycletime also. Primary matric is the cycletims (days) and consequentical matric is no. of turnover of new staff (1 year). My saving is the soft one. I calculated based on 3 criteria: Prodcutivity lost, Customer satisfaction and Employee Satisfaction (based on workload). Also our finaicial rep. agreed for this.
    My project already complete the FMEA and Fishbone Diagram. Main area of the improvement is the sourcing and shortlisted. We found some solutions for this improvement but I think we need more ideas.
    Anyone can advise how to get more qualified people for the recruitment process?
    Please advise and best of luck for all.
    Regards,
    Riam

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    #88403

    kang
    Participant

    the matric refers to metric, right?
    recently, I involve a project to improve the capacity of injection machine. I employ  the OEE as the Metric. because of the change of product types that share different proportion of injection time by installing time, both the OEE and quantity varied with it without any improvement or process ruin. is there any perfect or better metrics for measure the capacity of injection machine. if there any comment, I will appreciate very much.

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