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   Cathy.Henesey@trane.com   903-581-9109 Work   214-725-0710 Personal Cell   Twitter name @cathyhenesey   www.linkedin.com/in/cathyhenesey