1.
Provide on-timequality solutionsManpower Quality Technical knowledgeControlAttritionDiscipline•Reduce Absenteeism•Improve PerformanceIntroduceFinal Q-checkDLCMultiplereviewsCTSCTQsCTPsProvidingresources(Library, etc.)Training(arranginginternal/externaltrainingDefine : Identifying CTQs

2.
Project CharterI Energizer is leading BPO since last 10 years and supportingvarious services like IT, customer service, FMCG, telecom etc. In IEnergizer at Aircel process is facing the problem to high attritionrate following problems are faced by the organization1. The communication channels break2.Information transfer is incomplete3. Replacement is not always available4. Replacement demands training and timeThese problems dissatisfy the customers therebyslowing down the business momentumBlack belt: Geeta & HimaniMember: Salim, Prem, SheetalHR personnel:HR executive : To provide data.HR head: Solve constraints andsupport make improvements.With the help of data analyzed of last 3 months. Attritionrate is very high as comparison to client SLA. It causeshuge customer dissatisfaction and are paying penaltyfor the sameTo reduce Attrition to 1% by 5thDecember(monthly)In Scope :InternalMilestones Target Date Actual dateD till 15 OctM 16 Oct - 30 OctA 1 Nov - 15 NovI 16 Nov - 05 DecC 06 Dec - 20 DecNumbers???? Should mention exact date forGoal statement

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RASICResponsibleRoles VP Manager AM memberApproveSupportInformConsultActivityProject Tile A R I ISignoff Date A R I ICriterion for Project Selection A R I IProject Charter I A R IProject Planning A R I ICommunication Plan A R I IVOC I I A RIdentifying CTQ characteristics A R I ISIPOC I A R IData collection plan for Y I A I IOperational definition I A R IIncomplete… mention activities about rest of the phases - MAIC

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CTQ TreeHigh levelCustomer needfrom VOB AttritionHigh levelCustomer needfrom VOB AttritionCTQsProject Y : ReduceAttrition from 3.43%to 1% monthlyProject Y : ReduceAttrition from 3.43%to 1% monthlyProject Y Metrics :AttritionProject Y Metrics :AttritionDefect Definition : IfAttrition is greaterthan 1%Defect Definition : IfAttrition is greaterthan 1%Target : 1% monthlyTarget : 1% monthlyNot clear are you talking about daily attrition/ Monthly attrition/ Quarterly attrition.This CTQ tree is not very specific…..Please discuss this with any ofthe trainer at AIG

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SIPOCDepartment send demand toemployee to HRHR advertise the DemandIt Receive applicationHr shortlist the candidatesConduct interview withDeptt HeadOps DepartmentIE Reacquisition receiveby HRIESelection as per JDIEInterested candidatesCalling for interviewRecruits employeeEmployee join after onemonthEmployee works forOrganizationEmployee Resign /getsterminatedDemand of jobsRequirement published in jobportalsIEJobportal/ConsultancyIESelected candidates asper JDJobportal/ConsultancyShortlisted for interviewIEgets selectedIESalary negotiation Get offer letterHRAsk time for notice period Wait for one monthfor joiningIn boarding to organizationRequired Work is being doneGets goodopportunity/Integrity issue Demand for Employee risesEmployeeEmployee

6.
Data Collection PlanKPI Operational Definition Defect Def Performance StdSpecification LimitOpportunityLSL USLAttrition rateAn employee is assumed to have left theorganization w.e.f his/ her date ofrelieving. (The replacement is generallysearched for when his resignation letteris accepted by HR)If Attrition isgreater than 1%Attrition rate shouldbe less than 1%NA 1%One (Attrition)KPI Data Type Data Items NeededFormula to beusedUnitPlan to collect DataPlan tosampleWhat Databaseor Container willbe used torecord this data?Is this anexistingdatabaseor new?If new, Whenwill thedatabase beready for use?When is theplanned startdate for datacollection?DiscreteNo of Employeesjoined and resignedfrom theorganisationNo. of personsleft/ Number ofemployeesPercentage Excel Existing NA NA NA

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Data Collection

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Validate Measurement SystemLogical ValidationLogical Validation ::The data is released by HR recruitment executive and authenticated by HR headFor the purpose of data validation, 90 data points have been re-verified for the time taken.Procedure Used:• 90 random samples picked up from data points. The samples have been randomly generated and weasked four Quality auditors to re-verify the 90 data points.Effectiveness % = Number of samples where both measurement were similar * 100Total Number of samples under consideration= 90* 100 = 10090Effectiveness at 100% with 90 samples is good enough, and we conclude that the measurement System isadequate.KPI Data TypeDiscreteEfficiencyVolumeOpportunities 90Errors 0Result 100.00%EffectivenessVolumeOpportunities 90Errors 0Result 100.00%

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Establish BaselineDPMODPMODefect per million opportunities :Average number of attrition in a month = 3.43DPMO = 3.43*1,000,000 / 100= 34,300 ppmYieldYield = 96.57%

10.
Establish BaselineCalculating Sigma level* :Calculating Sigma level* :Zlt = 1.82Zst = 1.82 + 1.5 = 3.32Zbest = 3.53 (June month- 2.11%)Zworst = 3.04 (March month- 6.19%)Zgoal = 3.82 (Goal is to achieve 1% rate of attrition)

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Process Map

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Function Deployment MatrixCustomerKeyProcessOutputVariableResignationTerminationCustomerPriorityRank # >>9 7S. NoKey ProcessInput VariableRank % Rank1 8 0 72 16.712 9 0 81 18.793 7 0 63 14.624 6 0 54 12.535 1 0 9 2.096 4 0 36 8.357 1 0 9 2.098 1 0 9 2.099 0 5 35 8.129 0 9 63 14.62Stressful environmentRelationship with managerAssociation TablePoor growth prospectsPoor CompensationLong Working hoursLocation of the facilityNon performanceIntegrity violationPoor infrastructureSpouse relocatingLessPotentialX’s

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Potential XsList of Potential Xs* :• X1 : Poor growth prospects• X2 : Poor Compensation• X3 : Long Working hours• X4 : Stressful environment• X5 : Integrity violation

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Analyze : Data

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Analyze : DataTime Series Plot Attrition12 133018 171005101520253035MayJuneJulyAugustSeptemberOctober# AttritionsTime Series Plot Termination1215020123456MayJuneJulyAugustSeptemberOctoberTerminationsTime Series Plot Resignation11 11291317805101520253035MayJuneJulyAugustSeptemberOctoberResignationsData suggests:Maximum resignations have happened inJuneMaximum terminations in AugustMaximum attrition in July

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Analyze : DataEmployees/ Attritions and NewRecruitments94.2%3.2%2.6%#Employees#Attritions#NewRecruitmentsResignations versus Terminations89.0%11.0%ResignationsTerminationsInvestigations revealed that since increments and promotions aredeclared in July, the dissatisfied employees tend to resign.Some other dissatisfied employees were caught doing unfairactivities (accessing restricted sites in a group) and were terminatedin August.

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Analyze : DataParetosuggests thatmaximumresignationsoccur for L1ResignationsL1 L2 L1 L3 L2 L1 L2 L2 L1 L1 L1 L1 L1 L2 L1 L1 L2 L4 L2 L2 L1L1 L1 L1 L1 L1 L2 L1 L1 L1 L2 L1 L2 L2 L1 L2 L3 L1 L1 L1 L1 L1L1 L1 L1 L1 L3 L1 L1 L1 L1 L1 L1 L1 L2 L2 L1 L1 L1 L1 L1 L1 L1

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AnalyzeX1 : Poor growth prospectsX1 : Poor growth prospectsThe team managed to contact the HR executive ofthe competitors and got the following data of the averagenumber of years taken to be promoted to the next level:Index RAT Competitor 1 Competitor 2Level 1 to Level 2 2 1 1.5Level 2 to Level 3 2 2 2Level 3 to Level 4 3 3 2

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AnalyzeX1 : Poor growth prospectsX1 : Poor growth prospectsLevel 1 to Level 2 Promotion Time Data was collected forcomparison.Applying 2- sample t test to compare the promotionsNull Hypothesis Ho : µRAT = µCompetitor1Alternate Hypothesis Ha : µRAT ≠ µCompetitor1P<0.05, test shows thepromotion is different fromthat of the competitor 1

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Analyze• Applying 2- sample t test to compare the promotions• Null Hypothesis Ho : µRAT = µCompetitor2• Alternate Hypothesis Ha : µRAT ≠ µCompetitor2P<0.05, test showsthe promotion isdifferent from that ofthe competitor 2

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AnalyzeX2 : Poor CompensationX2 : Poor CompensationComparison of compensation with the competitorThough the average compensation of the organization is highcompared to the competitors, the maximum attrition occurs inlower levels where during initial years of employment wherethe compensation is less.Position RAT Competitor 1 Competitor 2Level 1 1.5 2.1 2.25Level 2 4 4.5 4.25Level 3 7.5 7 7.2Level 4 12 11 11.25Average 6.25 6.15 6.24Average Annual Gross Compensation/ EmployeeNo. ofResignations

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AnalyzeX3 : Long Working hoursX3 : Long Working hoursThe IN- time and OUT- time of employees was recorded andanalyzedEmployeeCode IN- Time OUT- Time DiffE1021 8:15 16:50 8:35E1024 8:10 19:20 11:10E1054 7:10 16:50 9:40E1056 8:15 19:30 11:15E1057 8:20 20:10 11:50E1086 8:15 21:07 12:52E1124 9:05 22:02 12:57E1145 8:15 16:50 8:35E1243 8:10 18:06 9:56E1245 8:17 20:40 12:23E1246 8:15 17:50 9:35E1252 8:40 20:04 11:24E1257 8:07 16:50 8:43E1275 8:15 21:50 13:35E1287 8:15 17:55 9:40Average 8:14 19:03 10:48AverageIndustrystandard is9 hours

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AnalyzeThe Time format was converted into Numeric (no. of days)EmployeeCodeAvg IN- Time Avg OUT- Time Difference DaysE1021 8:15 16:50 8:35 0.358E1024 8:10 19:20 11:10 0.465E1054 7:10 16:50 9:40 0.403E1056 8:15 19:30 11:15 0.469E1057 8:20 20:10 11:50 0.493E1086 8:15 21:07 12:52 0.536E1124 9:05 22:02 12:57 0.540E1145 8:15 16:50 8:35 0.358E1243 8:10 18:06 9:56 0.414E1245 8:17 20:40 12:23 0.516E1246 8:15 17:50 9:35 0.399E1252 8:40 20:04 11:24 0.475E1257 8:07 16:50 8:43 0.363E1275 8:15 21:50 13:35 0.566E1287 8:15 17:55 9:40 0.403The Time 0.403 Days is considerably higherthan Industry Average of 3.75.Long Working Hours was considered as a Vital X

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AnalyzeX4 : Stressful environmentX4 : Stressful environmentThe factor is accounted for based on thefeedback by employees to HR which includedcomplaints against their immediate boss andsometimes against the clients and their behavior.Conclusion : It is a subjective factor and needsimprovement to reduce attrition.

25.
AnalyzeX5 : Integrity violationX5 : Integrity violationThis is the cause responsible for terminations inthe organization. It includes:•misuse of infrastructure,•accessing restricted sites,•stealing,•over- issuing office stationery,•producing fake bills.Conclusion : Terminations account for 0.38% of theaverage of 3.43% in a month. To achieve the goal of 1%,terminations should also be reduced.

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AnalyzeList of Vital Xs:• X1 : Poor growth prospects• X2 : Poor Compensation• X3 : Long Working hours• X4 : Stressful environment• X5 : Integrity violationResignationsTerminations

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ImproveX1 : Poor Growth ProspectsX1 : Poor Growth Prospects• HR decided to reduce the promotion period of level 1 to level 2from an average of 2 years to 1.5 years as maximum resignationsoccurred during the initial years of service. Policy was made andapproved from the management.• HR started conducting awareness programs on the growthprospects an employee could expect in the organization andcomparison with the competitors. Frequency : Once for allemployees, During Induction of new recruits; Responsibility : HRMgr.

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ImproveHR created policies for the employees in consultation with themanagement to• Identify new growth opportunities,• Give additional responsibilities and rewards henceforth,• Encourage inter- departmental transfers through internal jobpostings, and• Promote up-gradation of skills through training.Policy was made by HR and approved by the management

29.
ImproveX2 : Poor CompensationX2 : Poor CompensationRaising Compensation could be an extra cost to the organization.Hence, HR decided to restructure the compensation across theboard during the next half- yearly Performance review in Dec,11. The compensation at RAT was as competitive as its competitorsbut since the maximum resignations occur for level 1 and then level2, the restructuring was done as shown

30.
ImproveAvg. % of Tot. Avg. % of Tot. Avg. % of Tot. Avg. % of Tot.Level 1 1.5 6% 2.5 9% 2.1 9% 2.25 9%Level 2 4 16% 5.1 18% 4.5 18% 4.25 17%Level 3 7.5 30% 8 28% 7 28% 7.2 29%Level 4 12 48% 12.6 45% 11 45% 11.25 45%Total 25 100% 28.2 100% 24.6 100.0% 24.95 100.0%PositionBeforeAverage Annual Gross Compensation/ EmployeeBefore After BeforeRAT Competitor 1 Competitor 2HR restructured the compensation for the nextPerformance review in December, 11 which rationalizedthe % compensation for all levels as per the benchmarkindustry. Management approved the proposal.

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ImproveX3 : Long Working HoursX3 : Long Working HoursBefore : After conducting one-to-one sessions with employees, it was foundthat employees had to stay after office hours or work on weekends regularly.Reasons for this were:• Excess work due to non- uniform work distribution• Late teleconferencing with clients• Avail extra benefits provided by the company such as claiming money forcommuting etc.• Impress the immediate manager who works for late hours.

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ImproveAfter :• First, each individual was made to list down his job responsibilities.Then, HR interviewed the middle/ upper management to gauge non-uniformity in work load. Next, the managers were asked to uniformlydistribute the work load amongst the employees.• A new communication system was installed using which employeescould attend conference calls from home to avoid night stays• Leverage to come late to the office the next day was given to employeeswho stayed late nights.• HR circulated a note whereby any L1/ L2 employee who wishes to stay backafter the office hours or work during weekends should get an approval fromhis immediate manager and inform the HR department

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Improve34X4 : Stressful EnvironmentX4 : Stressful EnvironmentBefore :This factor was revealed during a survey conducted by HR with theemployeesAfter :The survey which was conducted especially for the project was made aregular feature with the frequency of once in 3 months where eachemployee was interviewed to check their satisfaction level.Exit Interviews and feedback sessions were introduced.HR was made responsible to solve each of the raised issues from theinteractions and monitor the proposals regularly.

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ImproveBefore :Integrity violations suchas• misuse of infrastructure,• accessing restricted sites,• stealing or sharingconfidential information,• over-issuing office stationery,• producing fake bills etc.caused terminations in theorganization.After :Security department along with theIT department:– banned access to the restrictedsites,– disabled and removed CD andfloppy-disc drives from PCs,– employees were made to sign anIntegrity policy agreement to makethem aware of the consequences ofindulging in any integrity-relatedactivityHR issued a note to all employeessaying all the bills and vouchersneed to be approved by theimmediate manager and also HRbefore they got cleared.X5 : IntegrityX5 : IntegrityViolationViolation

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ControlControl Plan :Each of the Xs for which mistake- proofing was notdone, were controlled and responsibilities wereassigned to the concerned persons.

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ControlX1 : Poor growth prospectsX1 : Poor growth prospects• HR started conducting awareness programs• Frequency :– Once for all employees,– During Induction of new recruits– In case of change in the policies– Introduction of any new policy• Strength : 20 or less employees in one session• Material : Distribution of handouts and information through e- mails

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ControlX3 : Long Working hoursX3 : Long Working hoursFirst, each individual was made to list down his job responsibilities.Then, HR interviewed the middle/ upper management to gauge non-uniformity in work load. Next, the managers were asked to uniformlydistribute the work load amongst the employees.Frequency : Once/ quarterResponsibility : HR manager and respective department heads

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ControlX4 : Stressful environmentX4 : Stressful environment• Employees were interviewed to check their satisfaction level.– Frequency : Once/ Quarter– Responsibility : HR manager• Exit Interviews and feedback sessions– Frequency : When an employee is relieved– Responsibility : HR manager

39.
Control : I- MR Chart

40.
Final StepsThe final steps were executed in the ProcessThe final steps were executed in the Process• Process Instructions• Impart Training• Preventive Maintenance• Documentation• Translation

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Post - Completion• Project was transferred to the process owner (HR).• The project completion was authenticated by the customerfollowed by a project presentation by the team to allstakeholders and Six Sigma team.

42.
Thanks