LEAN Recruiting: Eliminating waste and improving process flow

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Cathy Henesey's presentation from the ERE Expo 2009 Spring.

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LEAN Recruiting: Eliminating waste and improving process flow

  1. 1. LEAN Recruiting Eliminating waste and improving process flow Cathy Henesey, SPHR Leader, Talent Acquisition Trane, a business of Ingersoll Rand
  2. 2. History of LEAN Manufacturing* Taiichi Ohno is regarded as the founder of the Toyota Production System (TPS) which was   developed from 1950 following an excursion to the Rouge Ford plant in the US by Eiji Toyoda, a young engineer who reported his findings on the Ford system back to Ohno. In the English translation of his book ‘TPS – beyond large scale production’ Ohno (1988)   describes how TPS evolved out of need, as the market place in post war Japan required small quantities of cars to be produced in many varieties. This was very different to the Ford principle of mass-producing the same Automobiles in large production runs. Womack, Jones and Roos (1990) coined the phrase ‘Lean Manufacturing’ to describe TPS   when they printed the results of a five-year study into the automotive industry in the book ‘The Machine That Changed The World’. This gives a pretty good insight into The History Of Lean Manufacturing Even with the massive amount of research that has taken place into the Toyota Production   System, fifty one years after it was born, Slack et al (2001, p481) still refer to Lean Manufacturing as a ‘radical departure from traditional operations practice’. Ohno (1998) describes the most important objective of the TPS as increasing production   efficiency through consistently and thoroughly eliminating waste. *Source: www.beyondlean.com
  3. 3. Apply the Rules and Principles
  4. 4. What is Waste? *Womack et al (2003) define waste as any activity that consumes resource but adds no value as specified by the customer.
  5. 5. What is Value Add? 1. Must be an activity the customer is willing to pay for 2. Must change the product 3. Must be done right the first time. ALL THREE MUST BE MET
  6. 6. Value-added Example Football Game Elapsed Time = 180 minutes Regulation Time = 60 minutes Penalties = 6 minutes Active Playing Time = 18 minutes Value-Added= 10%
  7. 7. Waste Elimination How much would you guess you spend on waste?
  8. 8. Definitions of Japanese terms Poka-Yoke - A mistake proofing device or procedure to prevent a defect   during order-taking or manufacture. 5 Whys - practice of asking quot;whyquot; five times   Kanbans - a communication tool in the quot;just-in-timequot; production and   inventory control system which authorizes production or movement 5S     Sort - To clearly distinguish the needed from the unneeded.   Straighten – Keeping needed items in the correct place to allow for easy and immediate retrieval (Configure)   Shine - Keeping the workplace swept and clean (Clean & Check)   Standardize – Consistency applying methods in a uniform and disciplined manner (Conformity)   Sustain - making a habit of maintaining established procedures (Custom & Practice)   OR seiri, seiton, seison, seiketsu, shitsuke.
  9. 9. Kaizen Event Rapid improvement process utilizing a cross-functional group of employees, working as a team, to meet targets in a results-oriented focus on a pre-determined project area   Focused scope   Detailed assessment of current process   Quick implementation of high leverage improvements
  10. 10. Kaizen Workshops are not… WORKING ADDING LONGER RESOURCES HOURS TO THE PROCESS WORKING HARDER RUSHING THE PROCESS Source: Lean Learning Center
  11. 11. Kaizen Workshop Process Ensure Plan & Teach Lean Prepare & Kaizen Follow-up 5.Identify 6. Plan and 2. Form Team 3. Analyze 4. Define Root 7. Refine & 8. Measure 1. Identify Test 9. Share and Current Ideal Causes & Implement Progress & Opportunity Proposed Results Scope Project State State Propose Solutions Hold Gains Solutions Solutions Follow-up Planning Event/Workshop Process Steps Sponsor Reviews Critical Facilitation Activities
  12. 12. Trane TA Kaizen Event   Improve the “Days to Fill” a Position   Current Average “Days to Fill” = 92 Days   Goal Average “Days to Fill” = 60 Days   This is the industry standard   Trane takes an average of 32 days longer than the industry standard
  13. 13. Hiring Process (Current State) Operation Steps (Blue) =   11.6 hrs Waiting Steps (Pink) = 225.5 hrs   Perfect World (Find Candidate on 1st   Try)   Value Added % = 5.1% Best Case (Find Candidate in 3 Days)     Value Added % = 4.8% Current State (It takes much longer)     Value Added % Drops Rapidly
  14. 14. Hiring State (Ideal) Minimum of 6 months headcount forecast   Above Median to Market Leader in Compensation     Currently Trane is in the 50th percentile of the Durable Goods Market 14 Days to Fill Job     Currently average 92 days to fill job Verbal Offer Extended at Face-To-Face Interview   95% Offer Rate Per Face-To-Face Interview     Current rate = 33% 95% Offer Acceptance Rate     Current rate = 90% Recruit from Pool (People Waiting to Work for Trane)   25% Entry Level Positions     Current percentage = 0.03% 100% Reduction in Unqualified Resumes Reviewed   Clear, Concise, Enticing Job Descriptions  
  15. 15. Current – Ideal State Gap Analysis Minimum of 6 months headcount forecast     Turnover not accurately predicted   True involvement between HR and Managers   Current AOP Process for Headcount   Current employment market Above Median to Market Leader in Compensation     Compensation based on median market values   Target candidates are employed with competitors   Job jumpers because of compensation 14 Days to Fill Job     Reduced pool of candidates   Communication Delays   Hiring manager doesn’t have dedicated time to interview   Current panel structure complicates scheduling
  16. 16. Current – Ideal State Gap Analysis Verbal Offer Extended at Face-To-Face Interview   Cultural mind block   Current interview process methodology   95% Offer Rate Per Face-To-Face Interview   Interview technique not sufficient   Phone interview filtering   Candidate specs changed in middle of process   95% Offer Acceptance Rate   Candidate understanding of job and Trane   Geographical realization   Candidates receiving other offers before one   from Trane Housing market, relocation   Talent Acquisition setting salary expectations at   the end of the process not the beginning
  17. 17. Current – Ideal State Gap Analysis Recruit from Pool (People Waiting to Work for Trane)     JIT forecasting   Lack of leadership development program   Candidate branding 25% Entry Level Positions     Leadership culture commitment   Lack of leadership development program   Headcount vs. $   Lack of college recruiting resources 100% Reduction in Unqualified Resumes Reviewed     Clear job descriptions / qualifications   Pre-screening tool Clear, Concise, Enticing Job Descriptions     Job code database   Job description database
  18. 18. Information Discovered   2007 Turnover Rate = 24%   The cost of replacing someone (recruiting, relocation, and training) is not accounted for well in the AOP   Need to have a report to understand the turnover rate better in order improve the AOP process   Lead time in hiring process is reduced just by the hiring manager making the hiring process a high priority   High Priority Managers Time To Fill = 37 Days   Low Priority Managers Time To Fill = 223 Days   Job Code Database cleanup is on hold right now
  19. 19. Standard Work for Hiring Process Created standard work for the   hiring process Implement required timing for:     Reviewing resumes   Feedback from phone interviews   Feedback from face-to-face interviews Condensed forms for job   requisition, job description, and position questionnaire into one form HM ANDON Cord - The signal for   immediate help to prevent line stop (waiting time). RIM Meeting  
  20. 20. Future Needs Identified Company Career Site – Enhanced   Leadership Development Program for entry level candidates.   Circulate final version of standard work to get buy-in   Educate appropriate people on standard work for the hiring   process. Educate appropriate people on pre-screening questions in   ATS. Allows people that did not pass the pre-screening questions to be highlighted with a ‘KO’. Make the turnover rate report meaningful so it can be used   for AOP. Develop ‘New Employee – Position Requirement’ template   with drop down lists. Feasibility of Job Description Database.   Feasibility of Candidate Recruitment Portal.  
  21. 21. Communicate Results • Share results with team members, ad hoc team members, suppliers, etc. • Communicate results to organization using company newsletter, intranet, or e-mails • Build momentum and commitment for future Kaizen sessions • Communicate results to senior leadership
  22. 22. REFLECTION   Reflect 30 days later on progress   SO, Let’s Reflect……….
  23. 23. Contact Information   Cathy Henesey   Cathy.Henesey@trane.com   903-581-9109 Work   214-725-0710 Personal Cell   Twitter name @cathyhenesey   www.linkedin.com/in/cathyhenesey

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