Continuous Improvement and HR Analytics Why Do We Need It? P&W - - PowerPoint PPT Presentation

Continuous Improvement and HR Analytics Why Do We Need It?

P&W PROPRIETARY

CONTINUOUS IMPROVEMENT

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Some of The Basics

5S Standard Work Value Stream Mapping Process Mapping Waste Minimization Benchmarking Market Feedback Analysis

5S

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The Basics

What is 5S? Sort, Straighten, Shine, Standardize, Sustain Benefits:

• Improving customer impression
• Time and Efficiency
• Efficient identification of material, information and work processes
• Visual Workflow
• Standard Work
• Quality
• Employee morale and productivity
• Overall health of an organization
• Safety (injuries and lost-time accidents)

5S

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w 5S Office Criteria

Cell /Cube: Date: Auditor:

5 Points World Class 4 Points Best in class 3 Points Acceptable 2 Points Marginal 1 Points Poor 0 Points Unacceptable Every item in the area needed and up-to-date. No needed item is missing: Consider: Supplies Tools Equipment Furniture Computer files /Drives Minimal clutter, but a small amount of unneeded supplies, tools, equipment, furniture, documents or general items. Unavailable needed items are on order. The area has some clutter and unneeded items. Some items stored on top

• f cabinets. Some needed

items are not available. More clutter and unnecessary equipment. There is no unneeded furniture or equipment, but desks, shelves and cabinets have excess items. Generally cluttered. Unnecessary items on desks, shelves or

• cabinets. Some

unneeded furniture /

• equipment. Items stored
• n floor.

Station is cluttered/unsafe. Very many unnecessary items everywhere. Much unneeded furniture, & equipment. Area very well organized. Excellent visual controls are in place: - Macro: Designation of group, members, equipment & work flow. - Micro: Designated place for all moveable items. Locations are convenient. Aisles are straight. Area well organized. Most moveable items have a designated location. Most locations are good, & items stored properly. Equipment & related supplies are co-located &

• rderly. Many visual

controls are in place. Area well organized. With the exception of a few problems, most items have a designated

• locations. Most tools,

supplies & documents stored properly. Aisles marked, but some equipment is not. Many visual controls are in place Area moderately organized. Many key items have a designated location, but some do not, and some items are improperly

• stored. Equipment and

aisles many not be clearly

• marked. Although some

visual controls are in place, many more could be added. Inadequate organization. Many key items have no designated location. Shelves and drawers are poorly labeled. Aisles or equipment markings are not clear or straight. Very few visual controls or instruction are evident. Poor organization. Few designated places for anything. Items improperly stored on the floor and benches. Furniture and tools located far from where needed. No current visual controls, signs or labels. Everything in the area in "like new" condition and

• perates perfectly. No

dust or dirt anywhere. Floors shine. Everything in the area clean, functional. Floors clean. Recycle bins used, & baskets are emptied daily. Most items in the area clean and functional. Some shared equipment malfunctions. Floors pretty clean. Some clutter & items not clean and/or swept. Floors and/or waste containers are marginal. Area not picked up. Items not been cleaned in some time. Floor is dirty. Waste containers are full. Area is very dirty. Health issues. 5S checklists for all personal & shared areas are available & followed. Assessment done weekly, with min. 2 Opportunities for Improvement noted. All are resolved. All metrics and charts in the area are current. 5S checklists for most personal & shared areas are available & followed, with min. 2 Opportunities for Improvement noted. Most are resolved. All metrics and charts in the area are current. 5S checklists for most personal & shared areas are available & followed. Assessments done weekly, less than. 2 Opportunities for Improvement noted. Some are resolved. All metrics and charts t 5S checklists for many personal & shared areas are unavailable or not

• followed. Assessments

done weekly, but no Opportunities for Improvement noted or

• resolved. Metrics and

charts in the area are not t Very few 5S checklists exist for the area. 5S Assessment not done within prior week. It is unclear that follow-up actions to identified problems have been

• done. Metrics and charts

mostly current. No 5S Checklists exist. 5S Assessment not done within prior week. No evidence of follow-up to identified problems. Metrics and charts in the area are not current. Clearly documented and followed system to maintain 5S. World-class performance sustained for six months. There is a system & strong interest in 5S. Very good performance sustained for three months. There is a system & moderate interest in 5S. Minimum acceptable performance sustained for

• ne month.

There is a system and spotty interest in 5S. Minimum acceptable performance sustained less than 1 month. No system in the area and little interest in 5S. Very little stability in 5S performance. There is no system or commitment within the

• rganization to sustain

5S.

• Use a checklist for audits
• Organize and label cabinets and
• verhead bins
• Create a system for electronic

shared files

STANDARD WORK

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The Basics

What is Standard Work?

Standard work is the method by which work is documented, simplified and structured to ensure maximum quality, productivity and repeatability over time. It includes documents that support a repeatable process by any person to produce the desired customer requirements. Standard work has the following components: Defined standards Defined processes and systems Simplified, visual work instructions and procedures Current sound practices Documented lessons learned

Benefits:

• Assures that a process can consistently deliver high quality, productive results
• Train new people to conduct a process without sacrificing quality, productivity and

reproducibility.

• Providing management with visual information about the current state of a process
• Complete a problem-solving or process-improvement activity.
• Benchmark the differences in the operation of the same process between two or

more organizations

STANDARD WORK

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VALUE STREAM MAPPING (VSM)

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The Basics

What is (VSM) and Process Mapping?

A group of processes that delivers value to its customers. It starts with a customer need or demand and it ends with the fulfillment of this need when the desired product, service or result has been provided to the customer and met the customer’s expected

• quality. Examples of value streams include system/product development, information

system management, security service delivery, and personnel hiring.

Benefits:

• Customer satisfaction
• Supplier performance
• Quality of products, services and results delivered to customers (value stream

effectiveness)

• Lead time (or turnaround time) for a customer request
• On-time delivery performance
• Agility of a value stream to handle products or services
• Workforce productivity
• Inventory and other backlogs of work

PROCESS MAPPING

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WASTE MINIMIZATION

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The Basics

What is Waste Minimization?

Evaluating the current state of a process map, and determining where steps can be removed, changed, or improved to capture opportunities for eliminating waste.

Benefits:

• Customer satisfaction
• Lead time (or turnaround time) for a customer request
• On-time delivery performance
• Workforce productivity
• Creation of additional time for other activities

BENCHMARKING

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The Basics

What is Benchmarking?

Benchmarking is a continuous, focused process of measuring and comparing our services/practices against industry leaders to assist the corporation in becoming World

• Class. Benchmarking enables changes that can lead to improvements in processes

and services. It represents what our customers expect, or are likely to expect from our

• rganization, products and services.

Benefits:

• Sets a target for improvement
• Helps determine best in class processes
• Helps to measure your “best” against similar businesses
• Provides ideas for change

BENCHMARKING

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Benchmarking Business Services Cell

Q#

PWCS DERCO PWWF PWES P&W Auto Air Helicopter Sup.

General Information

PWCS is a subsidiary of P&W Canada, a United Technologies Corporation Derco is a subsidiary of Sikorsky Helicopter, a United Technologies Corporation PWWF is a subsidiary of P&W Canada, a United Technologies Corporation PWES is a subsidiary of P&W Canada, a United Technologies Corporation P&W Auto Air is a subsidiary of P&W (Hartford), a United Technologies Corporation HSI is a subsidiary of Sikorsky Helicopter, a United Technologies Corporation

Flexible Work Arrangements - Telecommuting 1 Do you currently have employees who work remotely (either from their home, or from another UTC facility)

• n a regular basis (i.e., 5 days per

week)? (If you answer "yes," please proceed to the questions below.) Yes - 1 Only sales and field service representatives that are part of P&WC. Some salary employees do work at home or off-site on

• ccasion but it not the norm. We

also have one EH&S professional that supports the Service Center Network who worked from his home in the past, but we recently mandated that this person work from the nearest Service Center and be at that facility every day, which caused this person some serious changes in his daily commute. 2 What criteria do you use to determine who is eligible to telecommute on a regular basis? If you have a policy, please attach. We have one outside salesperson who telecommutes from his home in Florida. N/A 3 Does the employee telecommute from his/her home, or from another facility? If from another facility, please explain. Home See above 4 Is the employee required to visit your facility at regular intervals? If so, how often? There is not a regular schedule. He visits approx. once/quarter. See above.

MARKET FEEDBACK ANALYSIS (MFA)

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The Basics

What is MFA?

Use of objective market data, customer satisfaction surveys, interviews, routine interactions and communications, and service quality and reliability data, to give you insight into your customers perspective and expectations of your performance.

Closed Loop Process:

• Define Customers and Metrics
• Collect Feedback
• Analyze Feedback
• Resolve Problems
• Monitor Feedback

Benefits:

Identify the customer deliverables/needs Determines the quality and delivery metrics necessary to delight the customer Prioritizes resource allocations to solve those problems that have the most impact on our customers Identifies opportunities for adding value to our customers Discovering patterns in feedback data that point to the sources of customer problems Captures data to apply lessons learned from previous activities to create superior new deliverables Monitors the effectiveness of corrective actions and their implementation

MARKET FEEDBACK ANALYSIS (MFA)

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HR ANALYTICS/METRICS OR KPI’S

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Why Use Them?

• Performance measurement and improvement - How do we know where

we want to go if we don’t know where we have been?

• Customer satisfaction
• Justification – hiring, spending, process changes, etc.
• Efficiency – We all need more time, correct?
• Best in class performance – industry standards (recruiting strategy)
• Communication tool
• Credibility

HR METRICS

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Where do I start and What do I measure?

• Ask your customers
• Start small
• These are your tools – make them useful
• Visually represent them in a way that makes sense to you
• Determine appropriate measurement periods – monthly, quarterly, annually
• Assign a person to gather and record the metrics (if possible)
• Change metrics over time based upon customer feedback and needs
• Utilize ad-hoc metrics as needed for special project or justification, etc.

HR ANALYTICS/METRICS – SHRM.ORG

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HR ANALYTICS/METRICS

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• SHRM. org

Absenteeism Combined Calculation Absenteeism - Percentage of Employees Absenteeism Rate Per Employee Above Average Performer Yield Ratio Calculating 4/5ths rule for New Hires Calculation to Determine if Health Insurance Is "Affordable" Under the PPACA Compa-Ratio Calculation FMLA Absence Calendar FMLA Absence Tracking FTE Calculation for PPACA Employer Coverage Full Time Equivalent (FTE) Calculation Health Care Costs Per Employee Hire Yield Ratio HR Department Budget Human Capital ROI Human Resource Expense Factor Human Resource Ratio Interview Acceptance Yield Ratio Interview Offer Yield Ratio Job Group Analysis Job Offer Yield Ratio Labor Costs as Percentage of Revenue Overtime Calculation PPACA Penalty Calculator (No Coverage or Unaffordable coverage) Profit Per Employee Relocation Expense Request Revenue Per Employee Staff Count The American National Standard: Cost-Per-Hire Worksheet Time To Hire-Fill Training Budget Training Costs Per Employee Turnover Calculation Turnover Cost Calculation - Expanded Version Turnover Costs Turnover Report Utilization Analysis Availability Utilization Analysis Incumbents in Job Groups Vacancy Cost Calculation Vacancy Rate Calculation Workers' Compensation Costs Per Employee Workers' Compensation Incident Rates Workers' Compensation Severity Rate Workforce Analysis

HR ANALYTICS/METRICS

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HR ANALYTICS/METRICS

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Absenteeism, Average Rate per Employee

(Formulas are included.)

• No. of
• No. of

Average Absence Absences Employees Rate Per Employee

January #DIV/0! February #DIV/0! March #DIV/0! April #DIV/0! May #DIV/0! June #DIV/0! July #DIV/0! August #DIV/0! September #DIV/0! October #DIV/0! November #DIV/0! December #DIV/0!

TOTALS

#DIV/0!

Human Resource Department Budget (FY - )

(Formulas are included) Account Number Account Description Current FY Previous FY Variance Change Previous FY Previous FY Variance Change Budget Actual Budget Actual Labor Current staff $0 #DIV/0! $0 #DIV/0! Proposed f/t position $0 #DIV/0! $0 #DIV/0! Temporary services $0 #DIV/0! $0 #DIV/0! Benefits Current staff $0 #DIV/0! $0 #DIV/0! Proposed f/t position $0 #DIV/0! $0 #DIV/0! Career development (including related travel expenses) Current staff $0 #DIV/0! $0 #DIV/0! Proposed f/t position $0 #DIV/0! $0 #DIV/0! #DIV/0! Books/dues/subscriptions $0 #DIV/0! $0 #DIV/0! Travel (other than for career development) Current Staff $0 #DIV/0! $0 #DIV/0! Proposed f/t position $0 #DIV/0! $0 #DIV/0! Consulting Services Benefit plan administrators $0 #DIV/0! $0 #DIV/0! Health insurance review $0 #DIV/0! $0 #DIV/0! Job evaluation and compensation review $0 #DIV/0! $0 #DIV/0! Employee attitude survey $0 #DIV/0! $0 #DIV/0! $0 #DIV/0! $0 #DIV/0! Software, equipment, office supplies HRIS lease and upgrades $0 #DIV/0! $0 #DIV/0! Equipment leases $0 #DIV/0! $0 #DIV/0! Fireproof file cabinet $0 #DIV/0! $0 #DIV/0! Paper shredder $0 #DIV/0! $0 #DIV/0! Computer upgrades $0 #DIV/0! $0 #DIV/0! Color printer $0 #DIV/0! $0 #DIV/0! Postage $0 #DIV/0! $0 #DIV/0! Printing (external vendors) $0 #DIV/0! $0 #DIV/0! General office supplies $0 #DIV/0! $0 #DIV/0! Recruitment $0 #DIV/0! $0 #DIV/0! Relocation $0 #DIV/0! $0 #DIV/0! Employee Relations Teambuilding/social events $0 #DIV/0! $0 #DIV/0! Service awards $0 #DIV/0! $0 #DIV/0! Employee gifts (retirement, birthday) $0 #DIV/0! $0 #DIV/0! TOTALS $0 $0 $0 $0 $0 $0

Training Cost per Employee per Month for the Calendar Year of ________ (Formulas are included)

Total Training Cost Average Number of Training Cost per Employees Employee

January . . #VALUE! February . #VALUE! March #DIV/0! April #DIV/0! May #DIV/0! June #DIV/0! July #DIV/0! August #DIV/0! September #DIV/0! October #DIV/0! November #DIV/0! December #DIV/0! ANNUAL $0 $0 #DIV/0!

Workers' Compensation Cost Year Year Year Year Year per Employee (Cumulative) 2004 20__ 20__ 20__ 20__ Total Workers' Compensation Cost (Year) $100,000 $ $ $ $ Average Number of Employees* 85 # # # # *Average for Year Per Employee Cost $1,176 #VALUE! #VALUE! #VALUE! #VALUE! Note: Column B filled for sample purposes only

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Thank you!