Six Sigma in HR part 3

TRANSITIONING WITH SIX SIGMA

By Ranjan Sinha

During times of transition, you can take two very different approaches: Six Sigma or Lean. When problems are simpler in nature, the Lean method works best, you do not focus on the measurement of processes and tasks. The approach is flow-focused to remove bottlenecks and achieve material velocity. It removes waste and reworks inventory to reduce flow time. The problem has low complexity with known solutions, which produces immediate results in approximately one to two weeks.

In comparison, Six Sigma removes variation from processes to achieve uniform flow with a focus on the problem or project. Results take longer to achieve with three to four months to research projects. There is a higher complexity of the problem with the root cause unknown.

How can an organization determine if it is ready for Six Sigma? There has to be willingness to change, a healthy dose of self-criticism, and a flat organization structure with decision making at all levels. The company should already reward for intelligence and creativity and be involved in rigorous strategic planning. The ability to measure client satisfaction, market share, cost, and productivity are just as important. Companies not ready for Six Sigma tend to be resistant to change, have a blame mentality, a low appreciation of staff, the inability to dedicate project resources, and a rigid, hierarchical organization structure.

Once you have determined that you are an ideal candidate for Six Sigma, you have to figure out which processes or operations to revise using Six Sigma. If the process or operation has an impact on customer satisfaction or, at the time, wide variance, this is a good starting point. If there are clear improvement opportunities and processes with “ease” of measurement, Six Sigma should be implemented. Lastly, processes or operations which exhibit an ease of defining “opportunity” and “defect” are ideal as well.

Six Sigma processes are executed by a team effort. Senior management has to be openly committed to support the process, while managers in the project area act as champions of Six Sigma. The entire process is overseen by Six Sigma master black belts, a dedicated position to mentor the project teams. These are full-time team leaders, trainers, and facilitators, while Six Sigma green belts are team members.

The philosophy behind Six Sigma is easily broken into five key points:

• Identify the process and customers right up front.
• The time spent identifying root causes, and not just symptoms, is time well spent. Do not forget D, M, A, then I!
• Show me the data! Only valid data please—the structure is to be analyzed and discussed.
• Great ideas with poor support will fail. Here is a simple equation: Q x A = E. Quality multiplied by acceptance will produce excellence.
• Put good people in a bad process and the process will win every time.

Six Sigma is a proven method that has improved the bottom line of numerous industries; it is now time for HR to embrace it with open arms. In the next installment in this Six Sigma series, we will discuss in detail how Six Sigma can create improvements for the payroll and recruitment functions.