OPPORTUNITY OR PROBLEM
A Human Resources organization was experiencing a significant loss in employee productivity when employees transferred to different jobs within the company. If not corrected, these productivity losses would result in on-going cost and impact profitability.
APPROACH TAKEN
An improvement team was commissioned to gather facts, analyze the problem and implement required changes. The team used the DMAIC process and applied various process analysis and statistical six sigma tools. The team found that lost productivity was due to failure of direct deposits, interrupted health care, large out-of-pocket expenses, as well as lot access to computer/phone. Impact was quantified and changes introduced to minimize productivity impact. Several opportunities to improve both quality and efficiency were implemented. As a result of the team’s efforts:
– The DMAIC process resulted in improved process flows and SOPs to include a transfer binder, use of
intranet, and pre-transfer training.
– Employee survey was instituted to better monitor and control the process and productivity impact.
Prior to this project, these lost opportunity cost were seen as a normal cost of business and employee transfers. Now they are monitored and controlled to minimize lost productivity.
OUTCOME
This project yielded $479,700 in annualized ROI from the increase in employee production.
* Due to nondisclosure agreements, the organization referenced in this example cannot be disclosed.
