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Lean Methods In Recruiting
1. LEAN Recruiting
Eliminating waste and
improving process flow
Cathy Henesey, SPHR
Leader, Talent Acquisition
Trane, a business of Ingersoll Rand
2. 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
4. What is Waste?
*Womack et al (2003) define waste as any activity that consumes resource but adds
no value as specified by the customer.
5. 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
6. Value-added Example
Football Game
Elapsed Time = 180 minutes
Regulation Time = 60 minutes
Penalties = 6 minutes
Active Playing Time = 18 minutes
Value-Added= 10%
8. 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.
9. 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
10. Kaizen Workshops are not…
ADDING WORKING
RESOURCES LONGER
TO THE HOURS
PROCESS
WORKING
RUSHING HARDER
THE
PROCESS
Source: Lean Learning Center
11. Kaizen Workshop Process
Plan & Teach Lean Ensure
Prepare & Kaizen Follow-up
5.Identify
6. Plan and
2. Form Team 3. Analyze 4. Define Root 7. Refine & 8. Measure
1. Identify Test 9. Share
and Current Ideal Causes & Implement Progress &
Opportunity Proposed Results
Scope Project State State Propose Solutions Hold Gains
Solutions
Solutions
Planning Event/Workshop Follow-up
Process Steps Sponsor Reviews
Critical Facilitation Activities
12. 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
13. 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
14. 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
15. 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
16. 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
17. 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
18. 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
19. 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
20. 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.
21. 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