W7_Hamed _ How to Improve the Graduate Development Program at OPWP
Problem Statement
Every year, OPWP hires new graduates to fill in available positions at multiple departments such as planning, development, operation ..etc. After fresh graduates have been hired, their next challenge is to complete an intensive 12 months graduate development program (GDP). The current strategic development for new fresh graduates is to spend 1-2 months at each department to learn key functions and activities. Because of the long period of the current GDP which tend to be not beneficial for new graduates, this blog will examine different other training development strategies using the Pareto Priority Index.
Feasible Alternatives
There are three training alternatives as to which the GDP should rely on:
Option 1:
12 month in which 6 months are devoted for different departments and 6 months for the mother department.
Option 2:
6 month for mother department (Direct Hire)
Option 3:
2 months for multiple departments followed by 6 months for mother department.
Outcomes of the
Alternatives
The Pareto Priority Index (PPI) will be used to compare the feasible alternatives and to determine the best option. This method is used to carry out a cost-benefit analysis to compare the available options of an organization. This analysis depends on the following inputs of the Pareto Priority Index (PPI):
- Cost (OMR): this is the cost factor of
implementing the alternative. For our case study the cost factor consists
of two elements: salaries of new graduates and the costs of training such
as car rental, hotels …etc.
- Saving (OMR): For our
case, the saving factor is the return on investment. The expected added value
that new graduates would deliver to the company after completing the GDP.
- Time of completion (month): the
time required to complete the GDP.
- Probability of success: this
factor represents the likelihood of success assuming that all new
graduates completed their GDP successfully, taking into account assessments
done by department directors and expectations.
Selection Criteria
The feasible alternatives will be compared against the inputs from the Pareto Priority Index using the following mathematical equation:
Pareto Priority Index = (Saving * Probability of Success) / ( Cost * Time of implementation) (1)
The selection criteria will be based
on the result of PPI calculations. The alternative with the highest PPI will be
considered for the GDP. Overall, options with greater cost saving and higher
likelihood of success will have higher PPI number than other options with
greater implementation cost and time.
Analysis and Comparison of the Feasible Alternatives
Table 1 summaries each alternative
with proposed figures of the PPI inputs. These numbers assumes that five new
graduates were selected for the GDP.
Alternative
|
GDP
Period (month)
|
Cost
(OMR)
|
Likelihood
of Success**
|
Saving
(OMR)*
|
Option
1
|
12
|
Salaries: 12 *5* 800 = 48000
Training Cost: 3000
Total : 51000
|
60 %
|
12* 5000 = 60000
|
Option
2
|
6
|
Salaries: 6 *5* 800 = 24000
Training Cost= 1000
Total: 25000
|
80 %
|
6*6000 = 36000
|
Option
3
|
8
|
Salaries: 8*5* 800 = 23000
Training Cost= 1500
Total: 24500
|
90 %
|
8*6000 = 48000
|
**Note: this depends on factors such
as the probability of the new employee to continue on the GDP, the salary and
other factors. * Note: This saving assumes that in case
no graduates were to be hired, the company will depend on procuring external
consultants, assuming an average monthly lump sum of 6000 OMR/team.
Calculating PPI using equation (1):
Option
|
Time
(month)
|
Cost
(OMR)
|
Likelihood
|
Saving
(OMR)
|
PPI
|
|
Option 1
|
12
|
51000
|
60 %
|
60000
|
|
|
Option 2
|
6
|
25000
|
80 %
|
36000
|
0.19
|
|
Option 3
|
8
|
24500
|
90 %
|
48000
|
0.22
|
Selection of the Best
Alternative:
Results from PPI calculations
indicated that option 3, which is a GDP program of 8 months including 2 months
rotation between key departments and 6 months to be spent at the mother department
is the best GDP alternative. Logically, the new graduate will focus mostly on
the mother department with having the opportunity to come across other
departments at OPWP. A period of 8
months seems to be reasonable. The second option a direct hire to the mother
department with a GDP of 6 months.
How to Monitor the GDP
for future Graduates:
Because new employees represent the future of the corporation, it is crucial to monitor their performance during the GDP and how to improve the existing training strategy. Such a technique could be easily implemented to determine the best alternative and to bring a high return on investment to the company. This paper could initiate an internal project to determine those PPI factors and come up with a better training program for fresh graduates. Although the longer the GDP more departments are being involved in the training, sometimes fresh graduates tend to have clear set of goals and spending time at irrelevant departments is not always recommended.
References
1) Case Study: Pareto Priority Index. (2017, February 27). Six Sigma Study Guide. Retrieved from http://sixsigmastudyguide.com/pareto-priority-index-case-study/
Very interesting case study Hamed. Why not use the same problem but this time apply Benefit : Cost Analysis but include the INTANGIBLE benefits and costs?
ReplyDeleteThe reason I suggest this is because I don't recall seeing PPI on any of the PMI Exams but I do know you will be getting 1 or 2 questions on Benefit : Cost Analysis.
BR,
Dr. PDG, Bali, Indonesia