attracting and retaining associates - a partnership of hr ... · attracting and retaining...

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AttractingandRetainingAssociates-APartnershipofHRandProduction

Presentedby:Dr.DavidCochran,JasonBarnesandJenniferOxtoby(IPFW)andAndyGargac (Nissin)

Agenda

• OverviewofNissinBrakeOhioandIPFW

• CollectiveSystemDesign(CSD)

• TheroleofHumanResources

• UsingCSDtocreateanHRSystemDesign

• FutureDirection

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Background:NissinBrakeOhio

• Tier1supplierforbrakesystemsforHondaandHarleyDavidson

• Establishedin1988

• Companyphilosophy:ThefutureofNissinBrakeOhio,Inc.isthroughthevisionandinvolvementofourAssociates.

• #ofEmployees=585,including460hourlyassociates

• Currentchallenges:• Retainingassociateswithmanyhighpayingjobsmovingintoourareawith

analreadylowunemploymentrate.• Choosingthebestassociateswithinthebottomofthebarrellaborpool• Ultimately,tryingtobridgethetensiongapbetweenHRandProduction

Depts.andviewthisissueasasystemproblem

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CenterofExcellenceinSystemsEngineering

4

TheSystemsEngineeringCenterfocuseson3areas:

SystemsEngineeringMastersDegree

Program

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WhatisCollectiveSystemDesign?

CollectiveSystemDesign

Plan

Do

Check

Act

�CollectiveSystemDesignprovidesarigorousapproachtodesignsystemswhichincorporatessharedlearningandleadership.

�CollectiveSystemDesignprovidesaleadershipprocessforre-designingexistingsystemsanddevelopingnewsystems.

�CollectiveSystemDesignprovidesclearlydefinedobjectives,physicalimplementation,andperformancemeasuresforsystems.

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CollectiveSystemDesignFlameModel

Theflamemodelillustratesdifferentareasofthesystemdesign:

• Tone: Mindset,Attitude,Perspective

• Thinking: LogicalDesignofSystem,UnderstandImplementationPath

• Structure:OrganizationStructure

• Actions/Work: Processes,StandardWork&Procedures

Structure

Tone

Thinking

Work/Actions

Design

Diagnosis

ConsciousChoicetoChange

©CopyrightD.S.Cochran,2017,AllRightsReserved

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Steps1-3:LeadershipAlignment

Step3:EstablishToneandValues

Step2:DefineStakeholders&SystemBoundary

/ValueStream(s)

Step1:SeniorLeadershipMakesaConscious

ChoicetoChangeStructure

Tone

Thinking

Work/Actions

Design

Diagnosis

ConsciousChoicetoChange

©CopyrightD.S.Cochran,2017,AllRightsReserved

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Steps4-7:TheThinkingthatdrivesChange

Step4:IdentifyCustomersandNeeds

Step5:DetermineFunctionalRequirements

(FRs)

Step7:DefinePerformanceMeasures

(FRM &PSM)

Step6:MapthePhysicalSolutions(PSs)to

FRs

Step6.1:EvaluationofDesignMatrix

Step6.2:IstheDesignAcceptable?

Step6.3:IstheDecomposition

Complete?YES

YES

NO

NO Review

FRs/PS

s

Map

NextL

ayerofD

esign

©CopyrightD.S.Cochran,2017,AllRightsReserved

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Step8:EstablishingOrganizationStructure

Step8:DefineOrganizationStructurebasedon

CSDMap

• PhysicalSolutions(PSs)definedbythesystemdesignmapleadtotheorganizationstructure

©CopyrightD.S.Cochran,2017,AllRightsReserved

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Steps9- 9.4:SustainabilitythroughPDCA

©CopyrightD.S.Cochran,2017,AllRightsReserved

ContinuousImprovement:CSDMapandPDCA

Step

4

Step9:EstablishStandardWorkbyContinuous

Improvement:Plan,Do,Check,Act(PDCA)

Step9.1:(Plan)ImplementPSswithStandardWork

Step9.2:(Do)CompletetheStandardWork

Step9.3:(Check)CheckAgainsttheMeasures

Step9.4:(Act)ModifyDesignasNeeded

Mod

ifyth

eWork

Mod

ifyth

eMea

sures

Mod

ifyth

eSystem

DesignMap

Step

7

FR1 FR2 FR3

PS1 PS2 PS3

Chan

geP

S

StandardWork

APS isahypothesistoachieveanFR

Plan

CheckStudyresultsusing

FRM and PSM

ActWhatneedstochange?

CSDDesignMap

Chan

geF

R

DoImplementthePlan

UpdateFRM / PSM

StandardWorkimplementsthePS:• WhitesheetStandardWorkdefinesnormaloperation

• GreensheetStandardWorkdefineshowtoidentify andresolve abnormalconditionsinapredefinedmanner

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Step10:QuantifyLostOpportunities

Step10:EvaluatetheCostofNotAchievingtheFRs

©CopyrightD.S.Cochran,2017,AllRightsReserved

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Step11&12:ResourceAllocation&Sustainability

CSDMapandPDCA

Step1:SeniorLeadershipMakesaConscious

ChoicetoChange

Step10:EvaluatetheCostofNotAchievingFRs

Step11:PrepareResourceRe-allocationPlan

Step

12:

Feed

backfo

rSustainab

ilityand

Gr

owth

©CopyrightD.S.Cochran,2017,AllRightsReserved

ComparisonofCSDtoLean/SixSigmaACTION Physical Modeling of the Work aa

Kaizen aa aa

STRUCTURE Measures/evaluation tied to FRs aa

Organizational processes and structure derived from system design map

aa

Process/Value Stream Mapping aa aa

THINKING Logical Design aa

• Establish functional requirements and design solutions aa

• Coupling Analysis aa

Principles of stable system design aa

• Design to Reduce Variability aa aa

• Design to Reduce Total Time aa aa

• Robust Design aa aa

• Standardizing Work aa aa

TONE Leadership journey to establish collective agreement, values, beliefs and learning environment

aa

Awareness of the existing tone and its impact aa

CSD LeanSix

Sigma

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TheLanguageofCSD

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FRMFR

PSStandardWork

(kicksoffPDCAcycle)

APS isahypothesistoachieveanFR

CustomerNeeds

1st StepofDesign

PSM

3rd StepofDesign(asneeded)

2nd StepofDesign

4th StepofDesign(asneeded)

FR:FunctionalRequirement(FR)– CollectiveAgreementPS:PhysicalSolution(PS)– ProposedSolutionFRM isaperformancemeasuretiedtotheFR(outcome)PSM isameasureonthePS(doingthework)Note:NoteveryFRorPSrequiresameasure.

FunctionalRequirement

PhysicalSolution

PerformanceMeasure(ontheFR)

PerformanceMeasure(onthePS)

FR

FRM

PS

PSM

FR2

PS2

FR3

FR3M

PS3

FR1

FR1M

PS1

PS1M

ManufacturingSystemDesignDecomposition(MSDD)

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LeanIstheResultofAchievingtheSystemDesignFRs

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SystemDiagnosisbyMSDDQuestionnaire

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SurveyDataCommunicateaRangeofResponses

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SurveyResultsShowSystemPerformance

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TheFoundationofSuccessfulSystemDesign

PS-Q11Stable output from operators

FR-Q112Ensure that operator consistently performs tasks correctly

FRm-Q112Number of defects per n parts caused by non-standard methods

PS-Q112Standard work methods

FR-Q111Ensure that operator has knowledge of required tasks

FRm-Q111Number of defects per n parts caused by an operator’s lack of understanding about methods

PS-Q111Training program

FR-Q113Ensure that operator human errors do not translate to defects

FRm-Q113Number of defects per n parts caused by human error

PS-Q113Mistake proof operations (Poka-Yoke)

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TheChallengeofEmployeeTurnover

• Increasedcostsofhiring,trainingandreplayingemployees

• Productivity

• Quality

• Employeemorale

• Financialperformanceofcompany

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TheEmployeeLifecycle

• Stagesthatallemployeesgothrough

• Abilitytoretaingoodemployeesisimpactedateachstage

• HRplaysacriticalandstrategicrole

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HRPoliciesandPracticesMatter

• HRmanagestheadministrativesideofemploymentandcounselsonbenefitsandcompensation

• HRismostoftenresponsibleforrecruitingandhiringemployeeswithabigroleintraining

• HRdrivesemployeeengagement,whichisdirectlytiedtoemployeemotivation,commitmentanddrive

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Production/HRPartnershiptoReduceEmployeeTurnover

• IntroducedCollectiveSystemDesigntoHRDirectorandManagerinordertodesignHRSystem

• CollaborativemeetingsbetweenHRandProductiontoidentifyrequirements(FRs)andsolutions(PSs)

• Simultaneouslyrunningsixsigmaprojecttoidentifycausesofemployeeturnover

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Level 1 FR1Maintain an adequate workforce to achieve Nissin mission

FRm1?

HR System Design Map

PS1Nissin Human Resources System Design Map

Level 2FR12Create a culture/environment for Continuous Improvement

FRm12?

PS12PDCA Cycle with Standard Work & Tone

FR11Provide a safe, clean and ergonomically correct environment for all Nissin Associates

FRm11?

PS11?

FR13Bring in the right people

FRm13?

PS13Employee recruiting and hiring plan and procedures

FR132_Hire qualified people

FRm132_?

FR131_Recruit qualified people

FRm131_?

FR141_Onboard and develop skills and capabilities of new employees

FRm141_?

Level 3

4/18/17

FR14Get new employees ready to work

FRm14?

PS14New hire plans and procedures

FR15Keep the right people in the right jobs

FRm15?

PS15Employee retention plan and procedures

FR152_Understand why employees leave

FRm152_?

FR151_Develop, reward and recognize employees

FRm151_?

PS131NBO Recruiting Process

PS132NBO Hiring Approach

PS141NBO Orientation and Training Process

PS151NBO Employee Development Approach

PS152NBO Exit Interviews

PS: Solution.Planned means to achieve requirement.(defined by a Noun).

FR: Requirement. What we must achieve (starts with a Verb).Rm: Performance measure to evaluate R achievement

System DesignNomenclature:

What

How

R: Requirement

Solution implementation

sequence

Level 1HRSystemDesign

Level 2

Level 3

FR1Maintain an adequate workforce to achieve Nissin missionFRm1?

PS1Nissin Human Resources System Design Map

FR13Bring in the right people

FRm13?

PS13Employee recruiting and hiring plan and procedures

FR132_Hire qualified people

FRm132_?

FR131_Recruit qualified people

FRm131_?

PS131NBO Recruiting Process

PS132NBO Hiring Approach

Level 1

Level 2

Level 3

FR1Maintain an adequate workforce to achieve Nissin missionFRm1?

PS1Nissin Human Resources System Design Map

FR141_Onboard and develop skills and capabilities of new employees

FRm141_?

FR14Get new employees ready to work

FRm14?

PS14New hire plans and procedures

PS141NBO Orientation and Training Process

HRSystemDesign

Level 1

Level 2

Level 3

FR1Maintain an adequate workforce to achieve Nissin missionFRm1?

PS1Nissin Human Resources System Design Map

FR15Keep the right people in the right jobsFRm15?

PS15Employee retention plan and procedures

FR152_Understand why employees leave

FRm152_?

FR151_Develop, reward and recognize employeesFRm151_?

PS151NBO Employee Development Approach

PS152NBO Exit Interviews

HRSystemDesign

Six Sigma ProjectProject Objective: IncorporatesixsigmapracticesintoacollectivesystemdesignprojectinorderforNBOtopurposefullyimplementpracticesthatpositivelyimpacttheworkforce,therebyincreasingassociateretention.

STEPS TASKSDefine • DefineY =EmployeeRetention

• CreateHRSystemDesignMapandValueStreamMap(FRs)• Tools:processmapping,SIPOC,RACI

Measure • Identifykeymetrics:StartandSeparationDate,TrainingDate,OJTTrainer,Supervisor,Absenteeism Points,PayRate,Reasonforleaving

• Collectdata• Tools:5Whys,Fishbone

Analyze • Identifyandscreenpotentialcauses• Identifycriticalsolutionstoimplement(PS)• Tools:Correlation,ANOVA, HypothesisTesting,Regression

Improve • Implement solutions(PS)• Establishmeasuresforeachrequirement(FRm)andsolution(PSm)

Control • Implementprocesscontrols andPDCAcycle

SSttaabbllee WWoorrkkffoorrccee LLeeaaddss ttoo SSttaabbllee PPrroodduuccttiioonn

23%reductioninturnoverfromlastki

93%reductioninturnoverfromlastki.

65Kiactivity• Targetmorefocused

associatefeedbackdiscussions

• Targetmoremoraleboostingactivities

• Continuetoimprove2waycommunicationbetweentheProductionManagersandHR

• Continuetoreviewandrevisepolicywithmanagers

TechnicalAssociates

HourlyAssociates

SSttaabbllee WWoorrkkffoorrccee LLeeaaddss ttoo SSttaabbllee PPrroodduuccttiioonn

65Kiactivity• Targettempratiozonefrom

6%- 12%forflexibilityorprovideabufferinchangingmarketconditions

• Lowertempratiowillhelpourabilityto:

• SpendmoretimecrosstrainingcurrentNBOassociates

• ImprovedirecttrainingwiththeTemporaryAssociates

• Reducedowntime• ImproveQuality

Continuedefforttoreducetempassociateratiotoamanageable12%

Feb2017

Strongefforttobalancethetempassociatebyshifttoassurebalanced“know– how”

Jan2016

Next Steps

• Continue working on HR System Design map with Nissin to evaluate and complete the design including lower-level requirements, solutions and measures

• Complete data analysis for six sigma project

• Develop standard work and implement with PDCA

• Create resource allocation plan to achieve HR System Design Map Requirements

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Questions?

Jason Barnes, barnesj@ipfw.edu

David Cochran, cochrand@ipfw.edu

Andy Gargac, apgargac@nissinbrake.com

Jennifer Oxtoby, oxtobyj@ipfw.edu

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