HR six sigma process

1. HR Six Sigma Process
Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt)
Professor
Al-Qurmoshi Institute of Business Management,
Hyderabad - 500005

2. What is Six Sigma?
 Six Sigma is a statistical management technique that
seeks to drive defects to less than 3.4 defects per million.
 Defects are defined as any non-conformance to customer
specifications.
 Once the causes of defects are identified, processes are
modified to avoid the causes.
 It implies a customer driven approach where the
customers may be internal or external.

3. DMAIC
 Six sigma implementation is through a process called
DMAIC (Define, Measure, Analyze, Improve, Control)

4. DMAIC (Contd.)
 1. Define the problem, the voice of the customer, and
the project goals, specifically.
 2. Measure key aspects of the current process and
collect relevant data.
 3. Analyze the data to investigate and verify cause-and-
effect relationships.
 Determine what the relationships are, and attempt to
ensure that all factors have been considered.
 Seek out root cause of the defect under investigation.

5. DMAIC (Contd.)
 4. Improve or optimize the current process based upon
data analysis using techniques such as design of
experiments, poka yoke or mistake proofing, and
standard work to create a new, future state process.
 5. Control the future state process to ensure that any
deviations from target are corrected before they result
in defects.
 Implement control systems, such as, statistical process
control, production boards, visual workplaces, and
continuously monitor the process.

6.  σ (sigma), the standard of deviation, marks the distance on the horizontal
axis between the mean, µ, and the curve's inflection point.
 The greater this distance, the greater is the spread of values encountered.
 For the curve shown above, µ = 0 and σ = 1.
 Upper and lower specification limits (USL, LSL) are at a distance of 6σ from
mean.
 Values lying that far away from the mean are extremely unlikely. Even if the
mean were to move right or left by 1.5σ at some point in the future (1.5
sigma shift), there is still a good safety cushion.
 Six Sigma aims to have processes where the mean is at least 6σ away from
the nearest specification limit.
Graph of Normal Distribution

7. Standard Deviation, σ(sigma)
 σ (sigma), the standard deviation, is found by taking the square
root of the average of the squared differences of the values from
their average value. For example, consider a population consisting
of eight values: 2,4,4,4,5,5,7,9
 These eight data points have the mean (average) of 5:
(2+4+4+4+5+5+7+9)/8
 To calculate the population standard deviation, first compute the
difference of each data point from the mean, and square the result
of each:
 Next, compute the average of these values, and take the square
root:
 Standard Deviation, σ=

8. LSL
0 ppm ppm
3.4
USL
ppm
3.4ppm
66803
Six Sigma,
Tolerance

9. Performance Standards
2
3
4
5
6
308537
66807
6210
233
3.4
PPM
69.1%
93.3%
99.38%
99.977%
99.9997%
Yield
Process
performance
Defects per
million
Long term
yield
Current standard
World Class

10. Consider a 99% Quality Level
 5000 incorrect surgical operations per week!
 200,000 wrong drug prescriptions per year!
 2 crash landings at most major airports each day!
 20,000 lost articles of mail per hour!

11. Six Sigma Benefit in HR Functions
o Reduce the time required to hire an employee.
o Improve employee orientation processes.
o Reduce expenditures for Recruitment.
o Improve timeliness and the value of employee performance
reviews.
o Reduce absenteeism.
o Improve training efficiency.
o Improve employee satisfaction.
o Identify and correct retention issues.
o Reduce Incentive Compensation errors.
o Eliminate Over payments to Terminated Salaried
Employees.
o Improve grievance handling process.
o Consolidate employee information databases.
o Integrate multiple payroll systems for remote locations.
o Increase job posting hit rate.
o Increase retention using exit interview information

12. Six Sigma Roles & Responsibilities
Sponsor
 Senior executive who sponsors the overall Six Sigma
Initiative.
Leader
 Senior-level executive who is responsible for implementing
Six Sigma within the business.
Champion
 Middle- or senior-level executive who sponsors a specific Six
Sigma project, ensuring that resources are available and
cross-functional issues are resolved.
Black Belt
 Full-time professional who acts as a team leader on Six Sigma
projects. Typically has four to five weeks of classroom
training in methods, statistical tools, and team skills.

13. Six Sigma Roles & Responsibilities (Contd.)
Master Black Belt
 Highly experienced and successful Black Belt who has managed
several projects and is an expert in Six Sigma methods/tools.
Responsible for coaching/mentoring/training Black Belts and for
helping the Six Sigma leader and Champions keep the initiative on
track.
Green Belt
 Part-time professional who participates on a Black Belt project
team or leads smaller projects. Typically has two weeks of
classroom training in methods and basic statistical tools.
Team Member
 Professional who has general awareness of Six Sigma and who
brings relevant experience or expertise to a particular project.
Process Owner
 Professional responsible for the business process that is the target
of a Six Sigma project.

14. Six Sigma Roles & Responsibilities (Contd.)
 Leaders and Champions usually receive high-level
training on the technical aspects of Six Sigma and
specific training on how to lead an initiative.
 At the “Belt” level, each candidate is assigned an initial
“training project” that he/she will work on during the
formal training period.
 Candidates attend classroom training for a week, work
on their projects for three weeks, return to class for
another week, and so on until they have acquired all the
skills appropriate to their role.