Project Report PDF
Project Report PDF
Project Report PDF
ANAND S. KUMAR
Register No 1527604
Institute of Management
Christ University, Bengaluru
MBA 2015-2017
DECLARATION
I, Anand S Kumar, do hereby declare that the Summer Internship Project entitled Waste
identification in Front End Recruitment using Value Stream Mapping in Aditya Birla Retail
Limited, Bengaluru, has been undertaken by me as part of my studies in the degree of Master of
Business Administration. I have completed this study under the guidance of Prof. Joseph Fernandes
Marcellus of Lean Operations & Systems specialization, Institute of Management, Christ
University, Bengaluru and Mr. M. Krishnamoorthy, HR Manager- ABRL (More), Bengaluru.
I also declare that this work has not been submitted for the award of any degree, diploma, associate
ship or fellowship or any other title in this University or any other University.
Place: Bengaluru
Date:
Anand S Kumar
Register No 1527604
ACKNOWLEDGEMENTS
First, I thank the Vice Chancellor Dr. Fr. Thomas C Matthew of Christ University for giving me
the opportunity to do my summer internship project.
I wish to take this opportunity to express my deep sense of gratitude to thank Mr. M.
Krishnamoorthy, Head, HR & Admin at Aditya Birla Retail Limited, Bengaluru for his
invaluable guidance throughout my project. I sincerely thank ABRL for providing me with an
opportunity to work in the Distribution Center to get an insight about DC Operations.
I thank Dr. Sunithi Phadke, Dean, Prof. Sudhindra S, Associate Dean, Fr. Thomas T V,
Director, Prof. Shrikanth Rao S, , Head of Department and Prof. R .A. Dakshina Murthy, Head
of Lean Operations & Systems specialization, Institute of Management for their kind support.
I thank Prof. Joseph Fernandes Marcellus, for his support and guidance during the course of my
summer internship. I remember him with much gratitude for his patience and motivation, but for
which I could not have submitted this work.
I thank my parents for their blessings and constant support, without which this summer internship
would not have seen the light of day.
Anand S. Kumar
Register No: 1527604
ABSTRACT
The Project Report is based upon the implementation of Lean in HR recruitment activities of the front
end customer service associates in more supermarket, Aditya Birla Retail Limited in Bengaluru. The
organization is the retail business wing of Aditya Birla Group and is divided into two sections viz.
supermarket and hypermarket. The Indian Retail Industry is the fifth largest in the world. Comprising
of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries
in India, especially over the last few years.
A major challenge for all organizations is to improve efficiency and to ensure continuous
improvement. For the HR department this is a double challenge as the HR department itself should
meet the requirements of the organizations it serves in an efficient way, and the HR department should
be an active partner in promoting and training improvement actions in relation to the main tasks of
the organization. The Project is based upon implementing lean in the recruitment process of the front
end staffs at more supermarket by eliminating waste. The process uses Value Stream Mapping to
identify Wastes.
After analysing the current state, we could find out the possible wastes in the process and did kaizen
burst in the value stream map to optimize the process and reduce the lead time. Then I developed the
possible future state value stream map for the recruitment process.
CHAPTER I
INTRODUCTION
1.1 INTRODUCTION
For all organizations it is always important to perform its tasks and services in the most efficient way
and to adapt continuously to new and increasing needs and requirements. Thus this is also an
obligation for all units and all staff of the organization. The HR unit in an organization will have to
play an active role in this improvement process, both in order to be as efficient as possible regarding
its own services and in order to support the process in the organization as a whole.
The HR unit at Aditya Birla Retail Limited is to implement lean in the recruitment activities of
customer service associates at their supermarket which is currently being working out in an
unorganized manner. The method used is Value stream mapping which is been used to analyse the
current process, analyse it, identify the 7 possible mudas, continuous improvement of the process and
develop the possible future state map of the process.
Within a Lean organization managers should play the role as facilitators in a learning organization,
with clear delegation and open communication. Lean is a bottom-approach: this means that those
doing the practical work has to be involved in the improvement process and that ideas and actions
has to be the ownership of those involved and will have to implement the actions.
The Lean approach builds on a long history of methods for process control and quality management
(Womack et al, 2010) dating back to around 1900 with the Henry Ford and the development of the
assembly line and including Total Quality Management around 1990 and later on EFQM (European
Foundation for Quality Management), ISO, Six Sigma, CAF (Common Assessment Framework), JIT
(Just in Time) and QAF (Quality Assessment Framework) as developed within the European
Statistical System (Eurostat, 2011). Important contributions to this development has been Mr. W.
Edwards Deming, Mr. Joseph Duran and Mr. Kaoru Ishikawa. Experiences of the Toyota Production
System (TPS) is also an element in development of Lean.
Thus external consultants has supported the HR Division to understand Lean, to analyse the
present situation and to develop some improvement actions
Starting point:
Who are the users of the services of HR, what are the key issues at present and how to improve?
Who are the customers of HR? Obviously the main customers of the HR unit are the top management,
the middle management and in principle all employees of the organization. It might also be external
customers; potential future employees and users of statistics.
Thus in order to structure the tasks and the activities of the HR unit according to lean, one has to
reflect on the value provided by the HR unit, that for instance can be described as:
The Area of Human Resource considered for Lean implementation was recruitment of the front end
customer associates at the more supermarket. Value Stream Mapping technique is been used for
finding out the possible wastes in the process of recruitment activity.
CHAPTER II
LITERATURE REVIEW
Value stream refers to those specifics of the firms that add value to the product or service under
consideration and it is necessary to map both inter- and intra-company value-adding streams
[Womack JP, Jones DT (1996)]. The rate at which value is added to a single product from the raw
material stage through dispatch and delivery to the customer and changing view of organizations
towards improvement to processes is discussed [ Barker RC (1994)]. A new scheme of classifying
operations into three generic categories as non-value adding (NVA), necessary but non-value adding
and value adding is suggested. This scheme proved to be more generic and was extended to different
areas [Monden Y (1993)]. Individual tools to understand different value streams maps and regarding
their overlapping nature and use were developed [Jessop D, Jones O (1995)]. The five tenets of lean
manufacturing were enumerated and it was emphasized that VSM has to be carried out as the first
step towards lean implementation [Womack JP, Jones DT, Roos D (1990)]. A classification scheme
about seven new mapping tools (namely, process activity mapping, supply chain response matrix,
production variety funnel, quality filter mapping, demand amplification mapping, decision point
analysis and physical structure mapping) and their applications areas were suggested [Hines P, Rich
N (1997]. It was shown that unnecessary inventory, defects, inappropriate processing and
transportation were the most serious wastes in the system, further suggested to adopt five of the VSM
tools: process activity mapping, supply chain response matrix, quality filter mapping, demand
amplification mapping, and decision point analysis [Jones DT, Hines P, Rich N (1997)].
The Importance of strategic Human Resource management. [Becker and Huselid (1999)] recognized
that the field of human resource management was beginning to come of age in the late 1990s with
considerable emphasis being placed on strategic human resource management in both academic
research and the business world. Around that same time, [Wright et al. (1998)] identify that an
increasingly global competitive environment required a new strategic role for human resources which
resulted in a need for the human resource executive to provide input into the firms strategy to ensure
alignment with its human resource capabilities while simultaneously ensuring that its programs and
practices enable the strategys implementation. Similarly, [Lam (2008)] argues that a changing
external environment, beginning in the 1970s, resulted in human resource priorities shifting from an
administrative personnel management role to one of a strategic nature. She concludes that most
organizations find themselves at a point closer to personnel management rather than true strategic
human resource management even though companies are continuing to try and shift this focus.
Clearly, these authors believe that firms must take a strategic approach to human resource
management.
Utilizing the human resource value chain from Figure 3 and citing a number of case studies, Pickles
et al. (1999) believe the evidence clearly indicates that strategic human resource practices can, and
do, positively impact a firms performance. For example, a case study in the insurance industry found
that employee retention was positively correlated to customer retention, which in turn produced
greater profitability. As a result, firms that aligned their human resource programs with the goal of
retaining employees and agents achieved a competitive advantage and ultimately, greater
profitability. They identify five steps required to achieve alignment and improved performance:
1. Clarifying organizational goals
2. Defining organization capabilities
3. Identifying and assessing organization capability drivers
4. Implementing programs to close any gaps between actual and desired performance
5. Realigning the human resource function itself
The Lean Approach. The Lean management approach originated in the automobile manufacturing
industry and was developed by Taiichi Ohno of the Toyota Motor Company. Stone (2012) highlights
the fact that Womack et al., in their book titled The Machine that Changed the World, initially
introduced lean production to the mainstream business world in 1990. Today, this management
philosophy has evolved into what is known as the Toyota Production System and is widely utilized
in manufacturing industries around the world as a system that can be successfully employed to
improve total company performance.
According to Forrester (1995), the approach concentrates on wasted resources identifying that the
premise behind these lean systems is to stretch every system to allow any problems to be quickly
identified, instead of being hidden under a series of contingency plans (Forrester, 1995, p. 21). In
other words, the various components of a Lean philosophy (just in time management, Jidoka, leveled
production, etc.) work in tandem to easily and clearly identify areas of waste in all of the
organizations processes. Karlsson and Ahlstrom (1996) point out that Leans intent is to lower costs
by reducing what the customer is not willing to pay for, which is waste. With this is mind, JBA (2013),
through their study and development of a Lean philosophy, have identified seven wastes, originally
developed by Taiichi Ohno (1988), that must continuously be attacked and removed by a Lean
organization. These areas of waste are:
1. Inventory is when anything (materials, parts, assembly parts) is retained for any length of time.
2. Motion unnecessary movement, movement that does not add value, movement that is too slow
or too fast.
3. Defects the waste of making defective products. Waste related to costs for inspection of defects
in materials and processes, customer complaints, and repairs.
4. Transportation created by transferring, picking up/setting down, piling up, and otherwise moving
unnecessary items.
5. Processing unnecessary processes and operations traditionally accepted as necessary.
6. Overproduction producing what is unnecessary, when it is unnecessary and in an unnecessary
amount.
7. Time (Waiting) waiting for materials, operations, conveyance, inspection, as well as idle time
attend to monitoring and operation procedures.
In summary, it is widely believed that Lean is not just a set of management tools targeted at reducing
waste and costs. Rather, it is a management philosophy that encompasses a wide number of principles
that can have a profound effect on a companys success by enhancing the value of the product or
service from the customers perspective. A organization that successful adopts or embraces a Lean
philosophy will continuously eliminate waste by empowering employees to adopt a continuous
improvement program that becomes engrained within its day-to-day operations, by developing
standard work that quickly highlights deficiencies in the organizations processes so that they can be
improved, and by implementing a stop the line support system that engrains safety and quality as a
responsibility of every staff member.
Lean in Human Resources. this association between HR practices and LP is still practically
unexplored. Osterman (1994) believed that supporting HRM practices were necessary for successful
implementation of flexible work organization (as, for example, job rotation and TQM). MacDuffie
(1995) and Pil and MacDuffie (1996) provided support for complementary hypotheses because they
affected separate aspects of a plants operations and yet mutually reinforced each other. Following
the same line, Sakakibara et al. (1997) showed a strong relationship between JIT and what they called
infrastructure practices, including workforce management. In addition, the combination of JIT and
infrastructure practices was related to manufacturing performance. Cua et al. (2001) also showed how
lean programs include some HR practices. Their analysis made clear how the implementation of these
human practices, together with TQM, JIT, and TPM programs, provides significant explanation for
the differences in performance measures.
However, Lowe et al. (1997) concluded that while the data suggest that there may be generic
competitive advantages from operating with LP, the social systems, which support this may be highly
varied. Their data did not support the notion that the work organization and HRM associated with the
LP model represent a universal best way for achieving high manufacturing performance.
CHAPTER III
PROJECT METHODOLOGY
3.1 INTRODUCTION
The project deals with lean implementation in the recruitment activities of the front end employees
in the more supermarket. To understand issues related to the recruitment process, there is been use of
quality tools such as the pareto chart, cause & effect diagram, gap analysis to understand the issues
been faced by the recruitment team.
A Pareto chart, also called a Pareto distribution diagram, is a vertical bar graph in which values are plotted in
decreasing order of relative frequency from left to right. Pareto charts are extremely useful for analysing what
problems need attention first because the taller bars on the chart, which represent frequency, clearly illustrate
which variables have the greatest cumulative effect on a given system. The Pareto chart provides a graphic
depiction of the Pareto principle, a theory maintaining that 80% of the output in a given situation or system is
produced by 20% of the input. The Pareto chart is one of the seven basic tools of quality control.
The independent variables on the chart are shown on the horizontal axis and the dependent
variables are portrayed as the heights of bars. A point-to-point graph, which shows the cumulative
relative frequency, may be superimposed on the bar graph. Because the values of the statistical
variables are placed in order of relative frequency, the graph clearly reveals which factors have the
greatest impact and where attention is likely to yield the greatest benefit.
The cause & effect diagram or the fishbone diagram was developed by ishikawa which is been used to
analyse the root cause of an effect in a process. Common uses of the Ishikawa diagram are product
design and quality defect prevention to identify potential factors causing an overall effect. Each cause
or reason for imperfection is a source of variation. Causes are usually grouped into major categories to
identify these sources of variation. The categories typically include
Methods: How the process is performed and the specific requirements for doing it, such as
policies, procedures, rules, regulations and laws
Machines: Any equipment, computers, tools, etc. required to accomplish the job
Materials: Raw materials, parts, pens, paper, etc. used to produce the final product
Measurements: Data generated from the process that are used to evaluate its quality
Environment: The conditions, such as location, time, temperature, and culture in which the
process operates
GAP ANALYSIS
CHAPTER IV
Organized retailing refers to trading activities undertaken by licensed retailers, i.e. those who
are registered for sales tax, income tax, etc. These include the corporate backed hypermarkets and
retail chains and also the privately owned large retail businesses. Unorganized retailing, on the hand,
refers to the traditional formats of low cost retailing, for example, the local kirana shops, owner
manned general stores, convenience stores, hand cart and pavement vendors etc.
Mom-and-pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.
Departmental stores: are general retail merchandisers offering quality products and services.
Convenience stores: are located in residential areas with slightly higher prices goods due to the
convenience offered.
Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of
products and services including entertainment and food under a single roof.
E-trailers: are retailers providing online buying and selling of products and services.
Discount stores: these are factory outlets that give discount on the MRP.
Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small
items can be bought via vending machine.
Category killers: small specialty stores that offer a variety of categories. They are known as
category killers as they focus on specific categories, such as electronics and sporting goods. This
is also known as Multi Brand Outlets or MBO's.
Specialty stores: are retail chains dealing in specific categories and provide deep assortment.
Mumbai's Crossword Book Store and RPG's Music World are a couple of example.
Emergence of organized retail: Real estate development in the country, for example, the
construction of mega malls and shopping malls, is augmenting the growth of the organized retail
business
Spending capacity of youth of India: India has a large youth population, which is a conducive
environment to growth of this sector.
Raising incomes and purchasing power: The per capita income in India has doubled between
2000-01 and 2009-10 resulting in improved purchasing power.
Changing mindset of customers: The customer mind set is gradually shifting from low price to
better convenience, high value and a better shopping experience
Easy customer credit: Emergence of concepts such as quick and easy loans, EMIs, loan through
credit cards, has made purchasing possible for Indian consumers, for products such as consumer
durables
Higher brand consciousness: There is high brand consciousness among the youth; 60% of Indias
population is below the age of 30 leading to popularization of brands and products
Over 60 per cent of its revenues flow from its overseas operations. The Group operates in 36
countries Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt, France, Germany,
Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia,
Myanmar, Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka, Sweden,
Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA and Vietnam.
Aditya Birla Group is organized into various subsidiaries that operate across different sectors.
Among these are viscose staple fibre, non-ferrous metals, cement, viscous filament yarn, branded
apparels, carbon black, chemicals, retail (supermarket & hypermarket), fertilizers, insulators,
financial services, telecom, BPO & IT services.
The Group Consist of 6 main companies that operate in various industry sectors through
subsidiaries, joint ventures, etc. These are Hindalco, Grasim, Aditya Birla Nuvo, Aditya Birla Retail,
Idea cellular and UltraTech Cement.
In India:
Globally:
A metals powerhouse, among the worlds most cost-efficient aluminium and copper
producers. Hindalco- Novelis is the largest aluminium rolling company.
It is one of the three biggest producers of primary aluminium in Asia, with the largest single
location copper smelter.
Core Values
INTEGRITY
COMMITMENT
PASSION
SEAMLESSNESS
SPEED
Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD 41 billion corporation in
the league of Fortune 500 companies. The company comes under the wing of apparel and retail
business of Aditya Birla Group which includes Pantaloons and Madura Garments Ltd. The
Company ventured into food and grocery retail in 2007 through the acquisition of Trinethra Super
Retail and subsequently expanded its presence nationally under the brand 'more' across
Supermarkets & Hypermarkets. There are currently 488 Supermarkets and 19 Hypermarkets
and more aims to offer a shopping experience that delivers unbeatable value and quality.
In keeping with the motto 'Quality 1st, ABRL takes pride in being the first ever Indian food and
grocery retailer to receive the FSMS (Food Safety Management System) certification. They received
this award for ensuring that the manufacture, storage, distribution and sale of food adheres to the
highest quality standards. The Aditya Birla Science and Technology Centre in Taloja drives our
quest for world-class quality through extensive research and development across food and non-food
categories.
Through Clubmore and comprehensive range of brands, including our Power Brands 110%,
Feasters and Kitchens Promise that offer unbeatable value for homemakers, they aim to create
customers that keep on returning for more. In all, the family of Clubmore members has grown to 14
million, all of whom enjoy a host of customised offers and great savings.
ABRL follows the best industry practices in order to unlock the full potential of its staff through our
world-class learning institutes - Aditya Birla Centre for Retail Excellence and Gyanodaya. Coupled
with learning initiatives such as SPARK, Aarohan and Aarambh , these initiatives are critical in
helping people imbibe the key characteristics of our Quality 1st philosophy
More Supermarket
Conveniently located in your neighbourhoods, there are 488 more stores across the country offering
a wide range of fresh fruits and vegetables, groceries, personal care, home care, general merchandise
etc. Offering an irresistible combination of quality and value, more aims to be the shopping
destination of choice for families everywhere. Currently more is operating 108 Stores in the
Karnataka region out of which 83 stores comes under the Bangalore region
More Hypermarket
More megastore is a one-stop shopping destination for the entire family. There are currently 19
hypermarkets in operation and you can find a large range of products across fruits and vegetables,
groceries, Fresh items (Bakery, Diary & Frozen), FMCG products, general merchandise, apparels,
consumer durables and IT goods. Currently there are 12 Hypermarkets in Karnataka region out of
which 8 are in the Bangalore region
prices
across
ready-to-eat
food,
beverages,
tea,
staples,
cereals,
instant
mixes, papad, pickles, apparel, footwear, household cleaning essentials, personal care, and
devotional products. Our power brands, 110%, Kitchens Promise and Feasters deliver world-class
quality to discerning consumers. All these brands have been completely developed in-house.
In addition, our Own Brands across categories include Selecta, Prarthana,Bluearth, Bluearth Casual,
Bjoyzz, Karinee, Kruff Jeans Company, Berwins, Incheels, Chatter Kids and Yo. ABRL aspires for
our range of brands to be a customers most preferred brand across product categories.
ABRLs Research & Development centre in Taloja, spread across 3380 square feet, formulates, tests
and develops food as well as non-food products. Each of our brands undergoes stringent testing for
shelf life and consumer acceptance before they are made available commercially.
Clubmore
With the strength of around 14 million members, Clubmore has gone mobile. We are rewarding our
customers with a superior shopping experience and high savings. Clubmore leverages the power of
marketing analytics to deliver meaningful, tailor-made offers to individual customers based on their
shopping history. Thus, creating loyal customers everytime.
The Centre employees DC Supply Chain with three separate departments Viz. Receiving section,
Picking Section & the Dispatch Section. The DC has two separate lines as FT (Flow Through)
Goods and NFT (Non-Flow Through) Goods. FT goods are those which are purchased directly from
the manufactures and dispatched directly to the stores without storage in the DC. Whereas NFT
goods are those which are purchased from the manufacturers and stored in the DC for later
transportation purpose.
The DC also Includes a Packaging Section for more own products which are manufactured by third
party and sold in the name of Aditya Birla Retail Limited.
Shown below is a flow chart about the supply chain activity been carried out at the distribution
centre of ABRL. The Chain starts from manufacturers are the suppliers with the stores as the end
customers. ABRL incorporates ORACLE warehouse management software which includes the store
management system, warehouse management system and the retail management system.
Following the study of the supply chain, we get into the working of the distribution centre at ABRL.
The DC is subdivided into 3 main areas viz. receiving, picking & dispatching section. The
Receiving section is responsible to receive the materials which are been delivered by the
manufacturers and to store them in the staging area. The activity of the receiving section is to check
whether the manufacturers have delivered the materials according to the purchase order. Here, a
receiver will match the quantity of goods shown in the invoice to the purchase order been generated
for the manufacturer. Once the quantity check is done, he places one LPN (Licence Plate Number)
for every individual SKU (Stock Keeping Unit) and scans the LPN for that particular product using
a HHT(Hand Held Terminal) which gets updated to the System.
The Picking section involves extraction of the goods from the staging area and delivering it to
different stores pallets which are placed in the DC. Once a product is extracted, the picker scans the
SKU of the product using the HHT, which will display the amount of goods to be delivered for each
store. There are in total 83 stores for which they have a unique identification number. Each stores
pallets contains cartons and boxes which have their own LPN. Once a product is been kept in a carton,
the picker scans the carton so as to update in the system that the required amount has been delivered
to the store. This also helps the managers to identify which carton is for which store and also helps in
identifying which box has got how many units of one particular product in it.
In the Dispatching section, there is initially a quality check of the pallets. Here the operator will be
having a manual list of items which has to be delivered for a particular store. The role of the operator
is to manually check for each and every product of a particular store and match it with the available
data generated from the system. After the quality check, the pallet is forwarded to the dispatching
where the operator scans to Pallets using the HHT, for conformation of the outbound of the pallets.
Thus the HHT will display the store for which the pallet has to be delivered. The outbound is designed
in such a manner that the transportation of pallets in trucks is according the cluster. This is how the
goods are been delivered form the manufacturers to the stores by the DC.
CHAPTER V
Lean Manufacturing is an assembly-line methodology developed originally for Toyota and the
manufacturing of automobiles. It is also known as the Toyota Production System or just-in-time
production. Lean production principles are also referred to as lean management or lean thinking.
Engineer Taiichi Ohno is credited with developing the principles of lean production after World War
II. His philosophy, which focused on eliminating waste and empowering workers, reduced inventory
and improved productivity. Instead of maintaining resources in anticipation of what might be required
for future manufacturing, as Henry Ford did with his production line, the management team at Toyota
built partnerships with suppliers. In effect, under the direction of Engineer Ohno, Toyota automobiles
became made-to-order. By maximizing the use of multi-skilled employees, the company was able to
flatten their management structure and focus resources in a flexible manner. Because the company
was able make changes quickly, they were often able to respond faster to market demands than their
competitors could.
Shown below, is a TPS house. At the base, we have operational stability, which means creating
consistency in methods and tasks, equipment, workplace organization, and output of work. There are
two pillars that we speak of as well. Just-In-Time means providing the next downstream customer
with what they need when they need it and in the right quantity. Built in Quality or Quality at the
Source, the second pillar, essentially means never knowingly passing defective product or
information to the next downstream customer. These concepts, combined with respect for people and
a culture of continuous improvement, lead to the best quality, lowest cost, and shortest-lead-time
products and services.
1) Identify Value: The starting point is to recognise that only a small fraction of the total time and effort
in any organisation actually adds value for the end customer. By clearly defining Value for a specific
product or service from the end customers perspective, all the non-value activities - or waste - can
be targeted for removal.
2) Map the value stream: The Value Stream is the entire set of activities across all parts of the
organisation involved in jointly delivering the product or service. This represents the end-to-end
process that delivers the value to the customer. Once you understand what your customer wants the
next step is to identify how you are delivering (or not) that to them.
3) Create flow: One very significant key to the elimination of waste is flow. If the value chain stops
moving forward for any reason, then waste will be occurring. The trick is to create a value-stream
where the product (or its raw materials, components, sub-assemblies) never stop in the production
process. Where each aspect of production and delivery is fully synchronized with the other elements.
Carefully designed flow across the entire value chain will tend to minimize waste and increase value
to the customer.
4) Establish Pull: The way to ensure that nothing is made ahead of time and builds up work-in-process
inventory that stops the synchronized flow is to use a pull approach. A traditional western
manufacturer will use an MRPII or ERP style of production planning and control whereby production
is "pushed" through the factory based upon a forecast and a schedule. A pull approach states that we
do not make anything until the customer orders it. To achieve this requires great flexibility and very
short cycle times of design, production, and delivery of the products and services. It also requires a
mechanism for informing each step in the value chain what is required of them today, based upon
meeting the customers needs.
5) Seek Perfection: A lean manufacturer sets his/her targets for perfection. The idea of total quality
management is to systematically and continuously remove the root causes of poor quality from the
production processes so that the plant and its products are moving towards perfection. This relentless
pursuit of the perfect is key attitude of an organization that is "going for lean".
We developed a cause and effect diagram to analyse the possible causes of high recruitment cost.
Transportation
Inventory
Motion
Waiting
Over-Processing
Overproduction
Defects
The simplest way to describe waste is as Something that adds no Value. Our customers would not
be happy to pay for any action that we take that does not add value to what they actually want and
nor should we be. Companies Profit is selling price less costs, the selling price is very much dictated
by the market. If companies charge too much then customers will go elsewhere, even if they charge
too little they may lose customers as they will perceive there may be something wrong with what the
company are offering. Therefore the only way for companies to improve profits are to reduce costs;
this means removing all elements of waste from processes.
Transportation Waste In recruitment: Transportation adds time to the process without increasing
value, and creates an opportunity for damage to occur. Poor layout leads to transportation wastes, and
waste can be removed by achieving the shortest distance in a straight line.
Examples; Using paper based systems that need manually transporting, Moving forms that require
Ink signatures, Candidates and hiring manager travelling to meet, Flying candidate to interview
abroad and then deciding that the role is not based there, Application forms that must be completed
by hand and physically held on file.
Inventory Waste in Recruitment: In recruiting, candidate pipeline is considered to be the inventory
more specifically, as a work-in-process (WIP) candidate inventory. A group of candidates that a
recruiter stays in routine contact to maintain a relationship with, without a specific and current hiring
need is essentially a work-in-process (WIP) candidate inventory. Candidates in a WIP pipeline may
be active, passive, or not even looking, and may or may not precisely fit any current hiring needs.
However, time and effort is expended to build and maintain a relationship with these candidates to be
ready when an opening does arise.
Motion Waste in Recruitment: Motion takes time and adds no value. Work spaces that are not
ergonomic lead to a waste of motion, such as stretching, twisting, bending etc.
This kind of activity can be frustrating for the worker and can lead to injuries and time off work, have
everything at hand to make the job easy.
Examples; Reaching for items, holding stock at one place in the office, Printer located at a different
place in the building, Walking around the building or around the site for meetings, Meetings with
recruiters at their premises.
Waste of waiting in Recruitment: In recruiting, waiting occurs whenever candidates are not being
advanced through the recruiting and hiring process. In most recruiting processes, a large part of a
candidates life is spent waiting to be moved forward in the process. Most candidates that respond to
a job posting or are contacted by a recruiter are never advanced past an automated response (at worst)
or the relationship maintenance phase (at best).
Any candidate that doesnt actually progress through the hiring process (at least to an interview with
the hiring manager/team) is essentially stuck in a permanent holding pattern indefinitely waiting.
Waste of Over-processing in Recruitment: Over-processing occurs any time more work is done
than what is required by the customer. Engaging, screening and building and maintaining
relationships with candidates that will never ultimately be submitted to a client/manager in
consideration for an interview can be seen as performing more work than necessary and be classified
as over-processing.
Hiring managers dont actually require to maintain relationships with a large number of people who
will likely no longer be available or interested or even qualified when you actually have a need.
Waste of overproduction in Recruitment: Overproduction is production ahead of and in excess of
demand. In sourcing and recruiting, overproduction happens every time you attract, identify and
engage more candidates than needed to deliver to your customer. Traditional proactive candidate
pipelining ahead of actual hiring need almost always leads to overproduction. Posting jobs online also
leads to overproduction, because more people apply than can be realistically processed. Many
companies dont even attempt to respond to all applicants, while others will send an automated reply.
Waste of defects in recruitment: defect is something that does not conform to specifications or
expectations. Candidates that are sourced, contacted, screened, and with whom a relationship is
maintained that do not ultimately match the actual hiring need are defects of the recruiting process.
Defects arise whenever job specifications/requirements change from forecast, rendering pipelined
candidates no longer qualified, or when candidates are no longer interested, available, or when their
motivators change away from your opportunity. Forecasts are never perfect they cant be. Positions
and requirements change, and people dont stay interested or available forever.
A large number of defects are caused by posting jobs online. Yes, I know you probably think I am
crazy to question job posting but it is the dirty little secret of recruiting and it is a global
phenomenon. We all know that a huge percentage of people who respond to jobs online do not meet
the basic qualifications of the positions they are applying for.
Value stream mapping is a visual means to depict and improve the flow of manufacturing and
production process, as well as the information that controls the flow of materials through the process.
As a management tool, value stream mapping (VSM) is used to:
Graphically illustrate, analyze and understand the flow of materials and the information needed to
process them. Unlike process maps that are limited to mapping the sequence of tasks that are
performed to complete a procedure or process, value-stream mapping provides the means to:
Display the interaction between multiple functions within the manufacturing process as well as
ancillary functions such as production planning, scheduling, and materials management, etc.
The flow of information (communications) and materials throughout the complete manufacturing or
production process. Coordination and in-process materials are common sources of significant loss in
far too many plants. Value-stream mapping provides the means to visualize and recognize these
limiting factors.
Highlight problems, inefficiencies and losses within complex systems. Since the value stream map
integrates information and materials flow, as well as the sequence of tasks -- including cycle time and
lag between tasks -- the ability to identify restrictions, bottlenecks and all other factors that limit
effectiveness and efficiency is greatly enhanced.
Develop and implement countermeasures in a highly visual way that facilitates culture change within
the organization. The entire value-stream mapping process utilizes graphical depictions of limiting
factors that all stakeholders can easily visualize. The process is also designed to actively involve all
stakeholders in each stage.
Focus direction for the lean transformation teams, front-line supervision and upper management
towards continuous improvement.
Here are the list of activities to be carried out for a value stream mapping
VSM Symbols
Information Flows
Process Data
Shown Below is the current state value stream map of the process
ADVERTISING
LEAD
PROCESS
TIME
TIME
72 HRS
3 HRS
TOOLS
PARTIES INVOLVED
System,
HR dept.
Advertisement
Recruitment manager
boards
RECEIVING DOCUMENTS
8 HRS
2HRS
Hard Copy
HR dept
SCREENING OF CANDIDATES BY
8 HRS
3 HRS
Recruitment Manager
8 HRS
2 HRS
Hard Copy
Tertiary HR manager
8 HRS
4 HRS
Hard Copy
Recruitment
STORE MANAGER
SCREENING OF CANDIDATES BY
THR
BAY ASSESMENT
Manager
ONLINE TEST
8 HRS
3 HRS
Computer
Recruitment Manager,
Store Manager
8 HRS
2 HRS
Hard Copy
Recruitment Manager
8 HRS
1 HR
Computer
Tertiary HR manager
8 HRS
3 HRS
Hard Copy,
Tertiary HR manager
CREATION
Computer
NHT AT MODEL STORE
48 HRS
30 HRS
Hard Copy
Candidate
Hard Copy
Store Manager
Table: 5.6
Total Non-Value Added time = 634 194 hrs = 440 hrs
After developing the current state, we will go for doing the kaizen burst. Following are the
improvements suggested.
The main aim for doing a kaizen burst in a process is to undergo continuous improvement. To
eliminate the seven types of mudas from the process, we carry out Kaizen burst.
LEAD
PROCESS %ACT
TOOLS
PARTIES INVOLVED
TIME
TIME
RECEIVING DOCUMENTS
8 HRS
2HRS
25%
Hard Copy
HR dept
SCREENING OF CANDIDATES BY
8 HRS
3 HRS
Recruitment Manager
8 HRS
2 HRS
25%
Hard Copy
Tertiary HR manager
8 HRS
4 HRS
50%
Hard Copy
Recruitment
STORE MANAGER
SCREENING OF CANDIDATES BY
THR
BAY ASSESMENT
Manager
ONLINE TEST
8 HRS
3 HRS
37.5% Computer
Recruitment Manager,
Store Manager
8 HRS
6 HRS
75%
Hard Copy,
Recruitment Manager
Computer, Mail
48 HRS
30 HRS
Candidate
75%
Store Manager
Table: 5.7
Total Non-Value Added time : 468 hrs 194 hrs = 274 hrs
Hard Copy
CHAPTER VI
FINDINGS, CONCLUSION
AND SUGGESTIONS
6.1 FINDINGS
From the study carried out regarding the front end recruitment of employees at more
supermarket, we could come to the following insights from the project
The operational cost for the HR operations are always been above the P&B for the last
financial years
The recruitment of the front end staffs is carried out above the stipulated budget.
From the Value Stream Mapping, Total Lead time for the recruitment and induction
activity is 634 Hrs.
Spending on the welfare of the front employees are been by far less as compared to that
of the backend employees.
6.2 SUGGESTIONS
After developing the current state value stream map of the process, we carried out the kaizen
burst and could come up with the following suggestions to eliminate the wastes.
Avoid pipelining of candidate which is an inventory waste in the process. This eliminates
the waste of additional inventory from the process
Schedule one particular day for the candidate to be screened at the store by the store
manager. This will help in reducing the lead time for the activity.
Schedule one particular day for the interview by THR, and at one particular store. This will
help in reducing the waste of transportation from the process.
The department can setup a separate system in the model store along with a printer
dedicated only for the online test and print of Hard copy for recruitment. This would help
in reducing the waste of motion from the process.
The Dept. can reduce the no. of screened candidates which is considered to be as a waste
of over-processing in the recruitment process.
The Bank account opening, HR induction and medical test should be accommodated to one
single day to reduce the total lead time for the process.
One of the reason for higher attrition rate in the organization is because of defects in
recruitment. The candidate selected may not be according to the required job description
and this results in value loss. Thus they should avoid the waste of defects by hiring the right
candidate at the first place itself.
The organisation should try on improving the budget for employee welfare so as to remove
the attrition rate of male employees from the system.
Now regarding the warehouse operations, they need to rework on the markings of the
movement and placing of pallets as pickers get confused between the stores.
During observation, we could find a lot of workers walking on bare foot. This needs to be
avoided so as to remove the possibility of any injury.
6.3 CONCLUSION
The front end recruitment is always continues to be carried out in an unorganized fashion
because the labour available in the market is volatile and they are easily able to find other
alternative jobs. This has led to increase in the attrition rate and also increase in the HR
operational expenses for the last few financial years. Similarly they are recruiting manpower
at more than 100% budget as they are having shortage of male employees in the organization.
From the value stream map developed for the recruitment process, we were able to
identify the total lead time and the cycle time of each and every activity of the recruitment
process. As per the VSM we developed the Kaizen burst for the process and we were able to
identify the possible wastes in the process. After the Kaizen Burst, the possible finals state
VSM was developed for the process.
From the Final State VSM, the organization will be changing the process flow of the front end
recruitment which will help them in reducing the lead time for the process, which will
ultimately reduce the non-value added time from the process. From the Pareto analysis, we
could find out the two most prominent areas responsible for 80% of the HR expenses. The
reason for such increase in the expense above the budget is because of recruitment of staffs at
above 100% of the budget.
After completing the kaizen burst and developing the proposed final states the suggestions were
been provided to the organization which can be implemented to eliminate the possible wastes
in the recruitment activity.
BIBLIOGRAPHY
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