LEAN Recruiting Eliminating waste and improving process flow Cathy Henesey, SPHR Leader, Talent Acquisition Trane, a business of Ingersoll Rand
Jan 23, 2015
LEAN Recruiting
Eliminating waste and improving process flow
Cathy Henesey, SPHR Leader, Talent Acquisition
Trane, a business of Ingersoll Rand
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
Apply the Rules and Principles
What is Waste?
*Womack et al (2003) define waste as any activity that consumes resource but adds no value as specified by the customer.
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
Value-added Example
Football Game Elapsed Time = 180 minutes
Regulation Time = 60 minutes
Penalties = 6 minutes
Active Playing Time = 18 minutes
Value-Added= 10%
Waste Elimination
How much would you guess you spend on waste?
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.
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
Kaizen Workshops are not…
WORKING LONGER HOURS
WORKING HARDER RUSHING
THE PROCESS
ADDING RESOURCES
TO THE PROCESS
Source: Lean Learning Center
Kaizen Workshop Process
1. Identify Opportunity
2. Form Team and
Scope Project
3. Analyze Current
State
4. Define Ideal State
5.Identify Root
Causes & Propose
Solutions
6. Plan and Test
Proposed Solutions
7. Refine & Implement
Solutions
8. Measure Progress & Hold Gains
9. Share Results
Plan & Prepare
Ensure Follow-up
Planning Event/Workshop Follow-up
Teach Lean & Kaizen
Process Steps
Critical Facilitation Activities
Sponsor Reviews
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
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
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
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
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
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
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
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
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.
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
REFLECTION
Reflect 30 days later on progress SO, Let’s Reflect……….
Contact Information
Cathy Henesey [email protected] 903-581-9109 Work 214-725-0710 Personal Cell Twitter name @cathyhenesey www.linkedin.com/in/cathyhenesey