| Background | | | | Workplace is used to eliminate non-value-added |
| In hospitals, one of the key performance issues is | | | | looking around for information, product or supplies. It |
| recruiting and retaining nurses. There is a national | | | | seeks to create a standardized workplace where |
| nurse shortage. The Human Resource Department | | | | there is “A Place for Everything, and Everything is |
| at this VA Medical Center was not meeting it’s | | | | in its Place.” |
| goals in recruiting timeliness. In the past they blamed | | | | 5S got its name because it is a five step process. |
| their problems on the government bureaucracy and | | | | The five steps are: |
| internal customers not providing complete information. | | | | - Sort – remove the clutter |
| Instead of looking outside, we re-focused on the HR | | | | - Set-In-Order – label or mark where everything |
| department’s own inefficiencies. Lean is the | | | | belongs |
| identification and elimination of Non-Value-Added steps | | | | - Shine – regular housekeeping |
| in a process. We used the following Lean / Process | | | | - Standardize – different people doing the same |
| Improvement tools to improve HR performance: | | | | work, the same way, with the same results |
| - Performance Scorecards | | | | - Sustain – continuously improve, never backslide |
| - 5S Visual Workplace | | | | We used 5S to make sure every HR associates desk |
| - Process Flow Mapping | | | | was organized so anyone could sit down and work at |
| At the end of this white-paper we will show you the | | | | another associate’s desk. When someone is |
| results of our efforts. | | | | travelling, on vacation or out sick a 5S workplace |
| The HR Performance Scorecard | | | | doesn’t stop functioning. While there is room for |
| The first step of a Lean implementation is to make | | | | individuality, the critical files and information needed to |
| sure we are linking the project to improving | | | | keep the department running is organized per specific |
| measureable performance. Lean should not be done | | | | standards. |
| to “make the workplace better”, “improve | | | | Goto to see the White Paper containing all 5S and |
| customer satisfaction” or any other number of | | | | Process Flow Map pictures. |
| un-measured slogans. Therefore, our first step is to | | | | Current State Process Flow Mapping |
| make sure the area we are streamlining has a working | | | | Pictures of the Process Flow Map are in the White |
| Performance Measurement System. | | | | Paper mentioned above. |
| At Supply Velocity, we use a variation of the Balance | | | | Process Flow Mapping is the application of Lean to |
| Scorecard, called Performance Scorecards. | | | | business processes. It seeks to identify and eliminate |
| Performance Scorecards tend to be simpler than | | | | unnecessary or redundant steps. By mapping the |
| Balanced Scorecards and use fewer measures. | | | | process we enable employees to “see” the |
| They keep score of a few (always less than 10) | | | | non-value-added steps that they perform every day. |
| non-financial leading performance indicators. | | | | The HR Lean Team mapped the process, sorted it |
| To create your scorecard, start with the purpose, or | | | | into: |
| mission, of the department. This HR department | | | | - Green – Value added to internal customers |
| brainstormed the very elegant statement, “Assure | | | | - Yellow – Non Value Added but required by |
| an Effective Workforce.” Then they came-up | | | | government regulations |
| with 5 measures that describe if they are achieving | | | | - Red – Non Value Added and should be eliminated |
| that mission. | | | | Non Value Added Steps |
| Performance Scorecard | | | | We identified 22 non-value-added steps in the hiring |
| - % Vacancies filled in 90 days = 80% | | | | process, that could be easily eliminated. Note, we not |
| - Employee 3 year retention rate = 80% | | | | only created action items to eliminate these steps, but |
| - % Supervisors completing 20 hours of training = 90% | | | | we quantified the savings. Below is a sample of the |
| - % of disciplinary actions issued within 3 weeks of | | | | steps we eliminated. To see a complete list of the |
| infraction = 90% | | | | 22 steps please see the White Paper referred to |
| - % of employees who obtain 16+ hours of | | | | above. |
| non-mandatory training per year = 75% | | | | - Hiring Form routed first to HR Director = 4.1 hours per |
| Perhaps the most important part of the Performance | | | | year (The Director doesn’t do anything with it, |
| Measurement System is the Action Plan. This is a list | | | | except give it to a Specialist) |
| of projects that are happening in the department. | | | | - HR posts hard copy of job announcement on bulletin |
| This action plan has action item owners and expected | | | | boards around the hospital = 40.7 hours per year |
| completion dates. We try to limit the number of | | | | (create an intranet web page) |
| action items/projects to 5 or fewer. The fewer | | | | - Executive Nurse requests seniority date for |
| actions the department is working on at one time, the | | | | applicants = 20.3 hours per year (create ongoing list of |
| more likely they are to get them done. Below is | | | | seniority dates) |
| HR’s Action Item List. Note, that all action items | | | | - Applicants personal data is entered 19 times during |
| are linked to specific performance measures. | | | | the recruiting/hiring process = 113.9 hours per year (all |
| By having an action item list, you will make the | | | | data entered once and auto-populate forms/labels |
| scorecard more than a communication tool. It will tell | | | | letters) |
| associates in the department how they are doing, but | | | | Lessons Learned |
| more importantly, what the department is doing to | | | | When we initiated this process we focused on HR. |
| improve performance. | | | | While internal customers can cause delays, we |
| Human Resource Department – Performance | | | | wanted to focus on what HR could do to improve |
| Action Item List | | | | performance before talking to other departments. |
| - Implement 5S in HR Offices – Oct 2008 (HR | | | | However, in retrospect, it would have been better to |
| Director) | | | | include representatives from internal customers, such |
| - Nurse Recruiting Project – Complete when goal is | | | | as Nursing. We did not make the team |
| met (HR Director) | | | | cross-functional. As improvements were rolled out, |
| - Nurse Salary Survey – June 2008 (HR Secialists) | | | | we realized that we were too HR focused and should |
| - Lean of Recruiting Process – March 2009 (HR | | | | have included “internal customers” of the |
| Director) | | | | process on the team. |
| - Add 3 new HR Staff – May 2008 (HR Director) | | | | All Lean Teams should be cross functional in |
| When one action item is complete, they can add | | | | departments and management levels (individual |
| another, so at all times they are working on 5 | | | | contributors to executives). |
| “performance-improving” projects. | | | | Impact on People |
| Scorecard results are reviewed with all HR employees | | | | It was difficult for some of the HR staff to make the |
| monthly at a 15 minute performance review meeting. | | | | transition. Many had been doing it the “old |
| This meeting is quick and effective. It reviews actual | | | | way” for decades. For these people, it took more |
| performance and an update on action items. It gives | | | | work for the HR Director to sell the improvements we |
| the entire HR department status and performance | | | | made. Her consistency, in applying these tools, |
| update. No one is in the Dark! | | | | eventually brought everyone on-board. |
| The HR staff enjoys knowing what is going on and | | | | Results |
| how the department is doing. Initially, all measures | | | | We improved the “Recruiting completed within 90 |
| were in the Red. This grounded everyone in the | | | | days of application” measure from 33% to 56%... |
| reality that they weren’t meeting their goals. This | | | | still below our minimum expectation of performance, |
| created the foundation for us to begin using Lean. | | | | but definitely better. The Process Flow Mapping |
| 5S Visual Workplace | | | | portion of the project eliminated 411 hours per year of |
| Lean is the identification and elimination of | | | | wasted time in the HR department. |
| Non-Value-Added steps in processes. 5S Visual | | | | |