Six Sigma Project - Operators Attrition

To identify and improve the key factor(s) contributing to operator attrition
Kaustubh Kulkarni Hyderabad Plant
Project Charter, Team

Project Title
Project Sponsor Black Belt Project Leader Team Members
Nagaraja Rao, Plant Head Abraham Chacko Kaustubh Kulkarni Vijaya Reddy, HR Executive Revi Vasudevan, Mgr - Production
To identify and improve the key factor(s) contributing to operator attrition Kaustubh Kulkarni, GB, Hyderabad Plant
Project Charter, Description

Project Description
Purpose of the project is to identify and improve the key factor(s) contributing the operator attrition
Process and Project Perimeter

Operators at the Hyderabad Plant, India
Project Goals
Reduce attrition rate from 12% to less than 6% Reduce replacement recruitment cost Reduce Re-training hours Reduce potential for product non-conformities
Project Charter, Financials

Financial Savings for the Company
Cost of Operator replacement is Rs. 3,000
An operator takes at least 2 weeks (initial learning curve) to get trained and deliver required output Other savings include reduced potential for non-conformities leading to possible customer dissatisfaction Material scrap generated as a consequence of faulty manufacturing
Project Charter, Timelines

Project Timelines
Start Date: 5th April 2007
End Date: 30th September 2007
Project Phases
Define and Measure Analyze Improve and Control
5th April 2007 15th May 2007
16th May 2007 15th June 2007
16th June 2007 30th September 2007
S-I-P-O-C
Recruitment Consultants Walk-Ins Advertisements Employee Referral Potential Candidate Selection and Retention of right candidate
Trained and Retained Candidate Defect-Free Products
Production Function
Management
EndEnd-User
Supplier
Input
Process
Output
Customer
% t o p S n o i t i r t t A
% 8 4 . 5 % 4 5 . 1 1 % 0 4 . 2 1
% 6 5 . 2
% 7 7 . 1
% 1 5 . 5
d n E h t n o
t n u o c d a e
3 7 0 9 3 8 1 2 3 2 7 7 1 1 1 1
M H
Attrition Trend, Oct 06 Mar 07
s e e y o l p t f e L
4 2 2 7
5 6 1 1
m E
s e e y o l p m E d e n i o J
7 1 8 5 6 7 3 2 1 1 1

r a e Y
h t n o
6 6 0 0 - t v c o O N
6 7 0 0 - c n e a D J
7 0 b e F
7 0 r a
6 0 0 2
7 0 0 2
Kaustubh Kulkarni, GB, Hyderabad Plant
Definition and Sampling Plan

Data Pattern
The Hyderabad Plant started with the high volume 2 shift production of Industrial Control products from January 2007. At this time we started experiencing a high rate of operator attrition suddenly, leading serious concerns on being able to ramp up production to meet demanding market schedules. The hypothesis was that the shift operations were contributing to the high rate of attrition that got introduced in January of 2007. Resignation Operational Definition The last working day of the the employee is the date of relieving of the employee. Sampling Plan and Strategy The data for all the employees being available from inception in October 2005, the entire population was used as part of the analysis for this project.
Fish-Bone/Ishikawa Diagram
X Organizational Aspects
Shift Working Product Line IC, LV, MV Work Strain
Distance from Plant
Logic Score
Qualification Domiciliary Status
Pursue further Education Health Reasons
Operator Attrition at the Hyderabad Plant
Marriage Other Opportunities
Age
Candidate Profile
Personal Reasons
Data Collection Sample Sheet

# 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 Name P.Bhavani D.Srividya Ch.Aswini K.Mamatha P.Swapna G.Anuradha Ms.T.Anuradha V.Lakshmi K.Srilatha K.Swetha A.Srivani Ch.Pranitha G.Jyothi K.Vijayalakshmi B.Swapna T.Sujatha P.Nagarani J.Bhavani T.Lavanya DOB 5/May/1984 7/Feb/1988 28/Jun/1988 16/Jul/1988 10/Jun/1984 4/Feb/1985 25/Mar/1986 8/Apr/1987 19/Jul/1985 18/Aug/1986 31/Oct/1987 14/Jun/1987 10/Jul/1984 14/Jun/1985 6/May/1983 21/Jun/1987 19/May/1986 10/Jun/1988 14/Jul/1988 DOJ 8/Jan/2007 8/Jan/2007 9/Jan/2007 18/Jan/2007 22/Jan/2007 22/Jan/2007 22/Jan/2007 24/Jan/2007 24/Jan/2007 24/Jan/2007 24/Jan/2007 24/Jan/2007 24/Jan/2007 24/Jan/2007 5/Feb/2007 7/Feb/2007 7/Feb/2007 7/Feb/2007 7/Feb/2007 DOR Product Line Tesys Activa Tesys Tesys Tesys Tesys Tesys Tesys Tesys Tesys Tesys Stores Tesys Tesys Tesys Tesys Tesys Tesys Stores
Service Distance Age in Education Shifts Length from Plant Yrs 283 283 258 105 258 206 183 202 108 267 267 267 267 267 255 252 226 253 253 12 24 6 63 6 5 5 12 1 5 13 30 19 13 40 63 19 13 22 23 19 19 19 23 22 21 20 22 21 19 20 23 22 24 20 21 19 19 Inter Inter Inter Inter Graduate Graduate Graduate Inter Inter Inter Inter Inter Inter Inter Inter Inter Inter Inter Inter Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y N
G 10 Score 26 25 29 28 26 17 26 23 30 23 24 24 15 20 20 22 20 22 25
Dom. Status N Y N Y N Y N N N Y N N Y N N Y N N N
Work Status A A R R R R R R R A A A A A A R R A A
2/Feb/2007 5/Jul/2007 2/Feb/2007 26/Mar/2007 18/Apr/2007 30/Mar/2007 2/Jul/2007
8/Feb/2007 6/Mar/2007
Normality Plot for Data - Y
P r o b a b i l i ty P l o t o f Y ( D i s ta n c e f r o m P l a n t)
No r m a l
99.9 99 95 90 80 70 60 50 40 30 20 10 5 1 0.1 M ean S tD ev N AD P - V a lu e 151.4 128.9 71 2.574 < 0.005
Percent
-300
-200
-100
100 y
200
300
400
500
600
Residuals and Data Normalization

R e s i d ua l P l o ts f o r y
No rm a l P ro b a b ilit y P lo t o f t h e R e s id u a ls
99.9 99
R e s id u a ls V e rs u s t h e Fit t e d V a lu e s
300 150 Residual 0 - 150 - 300
Percent
90 50 10 1 0.1
- 400
- 200
0 R e sid u a l
200
400
100
200 F itte d V a lu e
300
H is t o g ra m o f t h e R e s id u a ls
16 Frequency Residual 12 8 4 0 - 200 - 100 0 R e sid u a l 100 200
R e s id u a ls V e rs u s t h e O rd e r o f t h e D a t a
300 150 0 - 150 - 300
1 5 10 15 20 25 30 35 40 45 50 55 60 65 70
O b se r v a tio n O r d e r
Statistical Tests for Significance
Two Sample Tests
Age Logic Test Scores Distance

Chi-Square Tests
Working in Shifts Yes/No Staying with Parents Yes/No
Two-Sample T and Box Plot Age Active vs. Resigned
Individual Value Plot of Age A, Age R

25.0
Two-Sample T-Test and CI: Age A, Age R

22.5
Two-sample T for Age A vs Age R N Mean StDev SE Mean Age A 163 17.65 1.86 Age R 99 17.94 1.95 0.15 0.20
15.0 Data 20.0
17.5
Age A
Age R
Difference = mu (Age A) - mu (Age R)

25.0
Boxplot of Age A, Age R
Estimate for difference: -0.289087 95% CI for difference: (-0.770619, 0.192444) T-Test of difference = 0 (vs not =): T-Value = -1.18 P-Value = 0.238 DF = 199
Data 22.5
20.0
17.5
15.0
Age A
Age R
Two-Sample T and Box Plot Logic Test Scores Active vs. Resigned
Individual Value Plot of Test Score A, Test Score B

40
Two-Sample T-Test and CI: Test Score A, Test Score R Two-sample T for Test Score A vs Test Score R
Data
35 30
25 20
N Mean StDev SE Mean Test Score A 158 23.71 4.64 Test Score R 94 25.07 3.99 0.37 0.41
15 10 Test Score A Test Score B
Difference = mu (Test Score A) - mu (Test Score R) Estimate for difference: -1.36561 95% CI for difference: (-2.45518, -0.27603) T-Test of difference = 0 (vs not =): T-Value = -2.47 P-Value = 0.014 DF = 218
Data
Boxplot of Test S core A, Test S core B

40
35
30 25
20
15
10 Test S core A Test S core B
Two-Sample T and Box Plot Distance Active vs. Resigned
Individual Value Plot of Dist. A, Dist. R

70
Boxplot of Dist. A, Dist. R

60 50 40 Data 30 20 10
Two-Sample T-Test and CI: Dist. A, Dist. R Two-sample T for Dist. A vs Dist. R N Mean StDev SE Mean Dist. A 163 17.0 10.6 Dist. R 99 22.8 16.4 0.83 1.6
0 Dist. A Dist. R
Boxplot of Dist. A, Dist. R

70 60
Difference = mu (Dist. A) - mu (Dist. R)

50
Estimate for difference: -5.72473

40
95% CI for difference: (-9.36979, -2.07967) T-Test of difference = 0 (vs not =): T-Value = -3.10 P-Value = 0.002 DF = 148
Data
30 20 10 0 Dist. A Dist. R
Chi-Square Tests
Chi-Square Test: Active, Resigned for Candidate Staying with Parents and Away from Parents Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts Active Resigned Total 1 81 77.15 0.193 2 82 85.85 0.173 Total 163 43 46.85 0.317 56 52.15 0.285 99 262 138 2 124 1
Chi-Square Test: Active, Resigned for Candidate Working in Shifts and Not Working in Shifts Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts Active Resigned Total 64 72.62 1.023 98 89.38 0.831 Total 162 53 44.38 1.675 46 54.62 1.361 99 261 144 117
Chi-Sq = 0.968, DF = 1, P-Value = 0.325
Chi-Sq = 4.890, DF = 1, P-Value = 0.027
Data Collection Sample Sheet

Binary Logistic Regression: C2 versus C1 Link Function: Logit Response Information Variable Value Count C2 1 0 Total 83 (Event) 172 255
Logistic Regression Table Odds Predictor Constant C1 Coef SE Coef Z 95% CI P Ratio Lower Upper
-1.55402 0.258814 -6.00 0.000
Distance is statistically significant
0.0408698 0.0106133 3.85 0.000 1.04 1.02 1.06
Log-Likelihood = -152.675 Test that all slopes are zero: G = 16.429, DF = 1, P-Value = 0.000
Statistical Findings and Conclusions
Two Sample Tests
p-Value
Age Logic Test Scores Distance

Chi-Square Tests
0.238 0.014 0.002

P-value being less than 0.05, indicates statistically significant process influence
Working in Shifts Yes/No Staying with Parents Yes/No
0.027 0.325
Analysis of Findings
Statistically Significant Aspects
Logic Test Scores, 0.014

This indicates that individuals with lower scores tend to continue in service with us, while the ones with higher scores are more likely to pursue other options. While the entry level criteria cannot be diluted, this aspect has the potential for a future six sigma to correlate test scores and their impact on operator efficiency
Distance, 0.002 Working in Shifts Yes/No, 0.027

Both Distance and Shift Working have an influence on each other and summary explanation with recommended actions is provided below: From the analysis it is clear the individuals staying further away from the company are more likely to resign. This has also been validated through a one-on-one interaction with the operators. This is on account of the hardship they face when they have to come in the first shift (start from home at 4 am) and the time they reach home in the second shift (as late as 12 am in some instances).
Improvement Recommendations
Solutions generated and actions implemented from June 2007
Distance, 0.002
Earlier, during the interview process there was no specific focus on the distance of the candidate from the company. Now we have included this aspect in the interview selection and short-listing stage itself by flagging this question in the Candidate Personal Information Form. The attempt is to control and select candidates to within 25 kms of the plant radius. We have also added smaller, additional vehicles for the early morning pick-up and late night-drop to facilitate easier and quicker employee movement as our entire operator population is female, and it is a concern and responsibility to ensure this
Working in Shifts, 0.027 .

The shift working is a business requirement and cannot be altered. However to address this hardship we have introduced the concept of shift allowance for all the operators who work in shifts other than the general shift
Attrition Trend, Jan 07 Sep 07
We had higher attrition in this month when about 7-8 employees left to pursue further education. This was a spot incidence. Excluding these numbers attrition is within the 6% target
Target Level of 6%
Prior to Six Sigma

D&M
Improve and Control
Overall Improvement Before and Post Implementation of 6S
a m g i S x i S e r o f e B
a m g i S x i S r e t f A
d e t i u r c e R e v i t c A d e n g i s %%%% e R
% 9 2 7 0 9 . 7 1 9 8 9 4
% 5 3 3 0 0 8 7 1 . 2 1
Key Learnings and Reccomendations

Key Learnings
Define well This is extremely critical as this is what provided the anchor as you navigate through the project complexities. Think ahead of how you expect to proceed, what tools you potentially intend to use. This helps avoid reaching the IC stage and finding out the only meaningful tool you could have used is a Pareto Expect the Unexpected Hyderabad Plant being a new plant, the team was not aware of the key issues that would surface. Distance was not imagined as a constraint as we were providing transport facility. It was only when we went into shifts and started analyzing the situation were we able to control for this critical aspect Involve All When a situation arises, dont adopt a stance of management knows best. Make cross functional teams that cut-across hierarchies Be data and fact driven Avoid preconceived biases from coloring your analysis phase. Be open to all ideas and creative brain-storming suggestions Be patient there is a tendency to rush through some stages of the DMAIC cycle. Each stage is equally important, and more so the improve and control stages as this is where the rubber meets the road the final validation of your assumptions and solutions!.
Thank-You!

Six Sigma Project - Operators Attrition

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Six Sigma Project - Operators Attrition

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To identify and improve the key factor(s) contributing to operator attrition

Kaustubh Kulkarni Hyderabad Plant

Project Charter, Team

To identify and improve the key factor(s) contributing to operator attrition

Project Sponsor Black Belt Project Leader Team Members

Project Charter, Description

Process and Project Perimeter

Project Charter, Financials

Project Charter, Timelines

End Date: 30th September 2007

16th May 2007 15th June 2007

16th June 2007 30th September 2007

Trained and Retained Candidate Defect-Free Products

Attrition Trend, Oct 06 Mar 07

To identify and improve the key factor(s) contributing to operator attrition

Kaustubh Kulkarni, GB, Hyderabad Plant

Definition and Sampling Plan

Distance from Plant

Qualification Domiciliary Status

Pursue further Education Health Reasons

Operator Attrition at the Hyderabad Plant

Marriage Other Opportunities

Data Collection Sample Sheet

2/Feb/2007 5/Jul/2007 2/Feb/2007 26/Mar/2007 18/Apr/2007 30/Mar/2007 2/Jul/2007

Normality Plot for Data - Y

Residuals and Data Normalization

Statistical Tests for Significance

Two Sample Tests

Age Logic Test Scores Distance

Working in Shifts Yes/No Staying with Parents Yes/No

Two-Sample T and Box Plot Age Active vs. Resigned

Individual Value Plot of Age A, Age R

Two-Sample T-Test and CI: Age A, Age R

Difference = mu (Age A) - mu (Age R)

Boxplot of Age A, Age R

Individual Value Plot of Test Score A, Test Score B

15 10 Test Score A Test Score B

Boxplot of Test S core A, Test S core B

10 Test S core A Test S core B

Two-Sample T and Box Plot Distance Active vs. Resigned

Individual Value Plot of Dist. A, Dist. R

Boxplot of Dist. A, Dist. R

Boxplot of Dist. A, Dist. R

Difference = mu (Dist. A) - mu (Dist. R)

Estimate for difference: -5.72473

Chi-Sq = 0.968, DF = 1, P-Value = 0.325

Chi-Sq = 4.890, DF = 1, P-Value = 0.027

Data Collection Sample Sheet

-1.55402 0.258814 -6.00 0.000

Distance is statistically significant

0.0408698 0.0106133 3.85 0.000 1.04 1.02 1.06

Statistical Findings and Conclusions

Two Sample Tests

Age Logic Test Scores Distance

0.238 0.014 0.002

Working in Shifts Yes/No Staying with Parents Yes/No

Logic Test Scores, 0.014

Distance, 0.002 Working in Shifts Yes/No, 0.027

Solutions generated and actions implemented from June 2007

Working in Shifts, 0.027 .

Attrition Trend, Jan 07 Sep 07

Prior to Six Sigma

Improve and Control

Overall Improvement Before and Post Implementation of 6S