The document discusses applying Lean principles to recruiting and hiring processes. It provides background on Lean manufacturing and defines key terms. It then describes a Kaizen event conducted by the company's Talent Acquisition team to improve their "Days to Fill" a position by reducing waste. The event revealed issues such as a lack of headcount forecasting, non-competitive compensation, and delays in communication. It developed standard work and identified future needs like enhancing the career website and implementing a leadership development program.

1. LEAN Recruiting
Eliminating waste and
improving process flow
Cathy Henesey, SPHR
Leader, Talent Acquisition
Trane, a business of Ingersoll Rand

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. Apply the Rules and Principles

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. 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. 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. Waste Elimination
How much would you guess you spend on waste?

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 "why" five times
 Kanbans - a communication tool in the "just-in-time" 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. 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. Kaizen Workshops are not…
ADDING WORKING
RESOURCES LONGER
TO THE HOURS
PROCESS
WORKING
RUSHING HARDER
THE
PROCESS
Source: Lean Learning Center

11. Kaizen Workshop Process
Plan & Teach Lean Ensure
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
Planning Event/Workshop Follow-up
Process Steps Sponsor Reviews
Critical Facilitation Activities

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. REFLECTION
 Reflect 30 days later on progress
 SO, Let’s Reflect……….

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