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HR Reps Purchasing Legal Communication VP HR HR Directors Handling potential problems Project Team HR Reps Communication Purchasing Legal HR Directors VP HR Implementing the solution Purchasing HR Reps amp。 therefore, relocation costs need to be stratified by division. Perform graphical analysis (dot plot amp。HR Transactional Case Study Reduce TRW Employee Relocation Costs 2 The Relocation Cost Problem Background Background In a TRW Automotive Divisional Operations Review a presentation was made that showed relocation costs for salaried employees have been escalating over the last three years even though the number of relocations have remained relatively stable. The 20xx average relocation cost per employee was $ 20,000 It is anticipated the North American job market will improve in the next few years and the number of relocations will increase. Based on this data, the Corporate Human Resources Organization was tasked to plete a Six Sigma Project to reduce the cost per relocation by 25%. This would generate an annual hard savings of $500,000. 3 ? Employee is approved for a pany transfer ? HR Verifies the employee?s benefit level (miles, family size, etc.) ? Employee Relocates ?Human resources facilitates payment to specified vendors ? Employee submits expenses as incurred via a Tamp。 box plot) of this data and be prepared to report your findings. File: Division Differences 30 Analyze: Hypothesis Testing Answers Plot the data, plot the data…. Something unusual (special cause) is occurring at Braking. They have decided to just give everyone $20xx0 for relocation expenses regardless of actual expenditures. 230001800013000T r a n s p o r t a t i o n C o s t s b y D i v i s i o nBC SEn g i n eO SSBra ki n gSt e e ri n g31 Analyze: Boxplot Answer Stack data in preparation for performing a Boxplot 32 Analyze: Boxplot Answer 33 Analyze: Hypothesis Testing Determine if statistical differences between divisions are present by performing a Test for Equal Variances and an ANOVA. Remember to meet all assumptions prior to performing these tests. Do not use the Braking division?s data, as a special cause (providing the same amount for all relocations) was identified. Continue to use the file: File: Division Differences 34 Analyze: Answer Stack Data in Preparation to Perform Control Charting Data must be stacked without Braking Division ?Individuals? chart will display if the process is stable over time 35 Analyze: Stable Process Assumption Answer In worksheet data Minitab has flagged some points. We reviewed the data for Steering division?s flagged points and determined to use the data as it exists. 36 Analyze: Checking Data for Normality Data from the four divisions must be normally distributed to perform subsequent hypothesis testing. 37 Analyze: Normality Test Answers All are normal 38 Analyze: Test for Equal Variances Answer 14009004009 5 % C o n f i d e n ce I n t e rv a l s f o r Si g m a sP V a l u e : 0 . 4 1 8T e s t S t a t i s t i c : 0 . 9 5 4L e v e n e 39。 Directors Project Team Communications CEO, COO VPs HR, Finance, Business Units Monitoring Results Project Team Finance HR Reps HR Directors Legal VP HR VP Finance Which groups or individuals should be: 48 Improve: Generating and Selecting Solutions In the Analyze phase the group found that BCS as a group had significantly lower costs than other Business groups. On investigation they learned that BCS owns their own trucking line and sometimes uses their own trucks to move employees. This results in significant cost savings. Based on this the group generated a list of potential solutions: ?Move all TRW employees in North America with BCS trucks ?Bid all moves with BCS trucking as one of the Bidders ?Start a TRW wide trucking pany. ?Contract with one moving pany nation wide in order to get lower rates (using BCS costs as a benchmark). Use the Paired Choice Matrix on the following page to select the solution(s) which will be implemented. In a Paired Choice Matrix, pare two solutions to each other and select the preferred solution. Repeat this for all possible pairs. The solution that is selected most frequently is usually the one the group will implement. Be prepared to share your findings with the class. 49 Improve: Generating and Selecting Solutions A B C D A Make all moves with BCS trucks B Bid all moves, include BCS trucks in bidding C Start TRW Trucking Company D Contract with one trucking pany nationwide to get lower rates 50 Improve: Generating and Selecting Solutions Sample Answer A B C D A Make all moves with BCS trucks B A D B Bid all moves, include BCS trucks in bidding B D C Start TRW Trucking Company D D Contract with one trucking pany nationwide to get lower rates 51 Control: Monitoring Success ?As a group, identify what you would do to ensure that project successes are maintained. ?Indicate what data you would gather and what analysis you would plete. ?Who would be the process owner to whom this would be turned over on closeout? Be prepared to discuss your ideas with the class. 52 Control: Monitoring Success Sample Answers ?As a group, identify wha