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 Leveraging Six Sigma In the basket.

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Join date : 2011-09-04

PostSubject: Leveraging Six Sigma In the basket.   Thu Oct 13, 2011 2:00 pm

INTRODUCTION
CHANGING BUSINESS PARADIGM
The International Data Corporation (IDC) predicted that worldwide outsourcing market would grow from $100 billion in 1998 to $151 million in 2003, with a good compound annual growth price (CAGR) of 12. step 2 percent.
The 1990s witnessed an incredible spurt in service freelancing, particularly in the IT AGAIN services sector.
Over 60% of this Fortune 500 companies, discovered in Europe and America are actually outsourcing their IT surgical procedures offshore to developing economies like Asia, Africa, the Carribean and Latin America accompanied by a view to achieve cost reduction. The primary contributor in order to cost reduction was a wage disparity between outsourcing companies and the service providers. This first phase from outsourcing leveraging wage arbitrage can be towards completion 杦ith an enormous chunk of cost damage potential being realized.
Presently, outsourcing companies, have identified quality and productivity being the key differentiators in evaluating service providers. These parameters are about prime importance since almost all software solutions have somewhat small payback periods. Repair shops also bring complementary practical knowledge, ideas, and business techniques, and enable outsourcing companies to think about core competencies. These benefits aside from cost reduction are turning the tide in favour of outsourcing.
It is difficult to leverage these benefits in the absence of a defined range tools and techniques. Application of process progression techniques like Six Sigma can really help realize these benefits. This paper examines the employment of Six Sigma to this IT services industry holistically.

SIX SIGMA - A NEW
揅ontrary to what a lot of believe, the goal of Six Sigma is not to achieve six sigma degrees of quality.
Six Sigma is going improving profitability, although improved quality and efficiency really are immediate by-products of Six to eight Sigma.?? Mikel Harry
VITAL SIX SIGMA CONCEPTS
Statement Smith, a senior electrical engineer and scientist at Motorola placed the Six Sigma strategy in 1986, to standardize in the same manner defects are counted. Motorola extended the good its Six Sigma encounter to other organizations through the Motorola University. By its core, Six Sigma revolves to the following key concepts.



Necessary To Quality (CTQ)? Attributes most prominent to the customer
Out in the open In approach? Looking at internal processes from the customer抯 perspective and modifying them accordingly
Defect - Any event it does not necessarily meet the specifications associated with a Critical to Quality (CTQ) attribute
Defect Opportunity- Any party, that provides a possibility that you'll not meeting customer requirements and that can be measured
Defective - A equipment of product containing one defects
Transfer Function? Gym = f (X1, X2, X3? Xn), where Y will be dependent or response adjustable and Xs are independent or predictor variable that control the performance associated with Ys. Focus of Six Sigma is almost always to control Xs and definitely not Ys.
Before moving onto the application of Six Sigma to it services, let us first of all understand the Six Sigma method.
The evolution of this Six Sigma methodology can be explained with a brief description of sigma.
? 搒? can be described as Greek alphabet that connotes standard deviation. Standard deviation can be described as measure of dispersion from a given data set. The values (of the set) are equally dispersed on either side of the mean i. e. on top of and below. We delineate some data points within which usually timeline. The sigma value is measured from this. As we move farther away from the mean on a timeline, the sigma value passes by increasing.
? Process Sigma (Z)? Way of measuring process capability. Process capability is process? ability to meet customer requirements.
? The Six Sigma methodology discusses reducing the variation in any process and aligning practise mean with customer given target. A process can be stated to be at Six Sigma level if for example the nearest Customer Specification limit is six standard deviations beyond mean of the procedure.
Six Sigma is a business strategy that results in achieving a near absolutely nothing defect level. The sigma levels not to mention their corresponding defects for every million opportunities (DPMO) give an example of the quantum in improvement in yield along with Six Sigma.
The fundamental objective of the Six Sigma methodology when i. e. implementation of a measurement based technique to propel process improvement in addition to reduce process variation is accomplished in two strategies? DMAIC (Define, Solution, Analyze, Improve and Control) together with DMADV (Define, Measure, Look at, Design and Verify).
DMAIC happens to be an improvement system for latest products or processes. Repay or payback DMAIC is? br />

Clearly define? Define project goals and customer deliverables dependant upon voice of customer (VOC).
Solution? Measure the process to gauge current performance regarding customer requirements.
Analyze? Look at and determine root cause(s) from poor performance.
Improve? Devise and evaluate multiple approaches to improve performance and eradicate defects; Pilot solution together with compare performance.
Control? Know improvements; Implement control projects to sustain desired overall performance.
Design for Six Sigma (DFSS) is used to design or re-design a new service. One popular DFSS methodology is considered DMADV. Fundamentally DMADV is?
Define? Define the scope of this project and initiate this project.
Measure? Measure customer needs and specify all the CTQ parameters.
Analyze? Look at the concepts that connect customer needs (CTQs).
Develop? Develop a detailed design according to customer needs and establish control plans.
Verify? Test and verify design performance regarding customer CTQs.
DMAIC focuses on just one or two CTQ (Critical To Quality) parameters at a time whereas DMADV focuses you are using entire set of CTQs for any given product / service plan or process.

SIX SIGMA IN THE BASKET
揈ighty-five percent of why for failure to match customer expectations are connected with deficiencies in systems and process as opposed to the employee. The role of management is almost always to change the process ?nstead of badgering individuals to do better?? Dr. DemingSeveral system improvement methodologies like Eight Sigma, Total Quality Direction (TQM), Quality Circles, Taguchi, Record process control, etc. are usually now being successfully implemented in all the manufacturing industries sector. It's perceived that such enchancment methodologies are ineffective in the IT services industry. GE, pioneers of Six Sigma implementation in any non-manufacturing set-up, has estimated services the order of $10 billion during the first five years connected with implementation.
Some commonly made arguments against the potency of Six Sigma in IT services sector were

Applications processes are difficult towards measure.
Software development is people intensive work that creativity.
Software development is absolutely not a repeatable process.
Six Sigma theories derived from assumption of normal chance distribution and Software processes cannot be included in this category.
Though these factors are true utilizing some sense, the Six Sigma methodology can remain applied to IT methods.
The software processes are definitely difficult to measure but it抯 no impossible task. Industry leaders like IBM and additionally institutions like Software Engineering Institute have designed and published many metrics with regard to software processes for the good the entire industry. Capability Maturity Models designate the quantitative management processes among the Key Process Areas on level 4. Lot of books and other material is available publicly of choice right metrics from. Eight Sigma offers strong software like Quality Function Deployment (QFD), CTQ flow-down and various other templates to convert high-level VOC to measurable CTQs.
90% of this processes in a software package services company are repeatable and may also be improved by the approach improvement DMAIC methodology. The DFSS methodology are generally applied to the remaining
5-10 % of any processes, which involve resourcefulness.
It is true which usually Six Sigma concepts progressed with normal distribution. And yet, Six Sigma tools are generally easily adapted to cope with processes having non-normal circulation
Having discussed the disputes supporting the applicability of Six Sigma there processes, let us make a shot to understand the applicability of Six Sigma in the processes that are an important part of IT services.
CORE DELIVERY PROCESSES
The software development life cycle (SDLC) consists of four phases - Study, Design, Coding and
Trying. Along with these foremost phases, processes like problem prevention, project management,
Applications Quality Assurance (SQA), Review articles, etc. are an integral part of the Quality Management System of any IT provider. The effectiveness of all of these core processes directly impact the
CTQ parameters. There is also a large scope for enchancment in these processes in most IT companies. Six Sigma are generally deployed to improve these types of processes.
One of the important factors in deploying Six Sigma is identifying the 揧? metrics (dependants). Particularly core processes this will get simpler since historical data for key metrics such as review efficiency, review effectiveness, productivity, defect density, schedule variance and effort variance have already been available. After prioritization, critical poor performing metrics are generally taken as Six Sigma DMAIC initiatives.
Six Sigma DFSS methodology are generally applied for software progress projects. Six Sigma in
SDLC helps in making the software manufacturing process more predictable and making sure that all
Customer CTQs are met. Some Sigma tools that might be applied in this method are? br />
Good Function Deployment (QFD) can help in converting the high-level client requirements (VOC) into detailed program specifications. Use of QFD signifies that no requirements are missed plus it helps in prioritizing the technology elements.
Failure Mode Effect Analysis (FMEA) is a tool that provides effective risk management for the complete SDLC, and identifies any probable failure modes associated with software at design level. This initiates corrective action at the design.
Pugh matrix enables applications developer / analyst for you to compare different concepts with regards to customer CTQs and establish strong alternative concepts through weaker concepts Scorecard is a predictive tool used to get:
Predicting final quality (Y metrics) dependant upon process (X) metrics
Quantitative Risk Assessment Individuality of High Defect People Linkage from Customer CTQs at lower levels in any flow down
Application of Design about Experiments in software testing happens to be an emerging trend. Software testing dependant upon orthogonal array, detects most possible defects from a fractional testing time.
OFFERING SUPPORT PROCESSES
The processes which were value enablers are equally important to consistently deliver best quality service to customers. These processes comprise of infrastructure and network providers, Resource Management, HR processes, Finance and accounting, Guidance, Central Quality organization accessories.
Efficiency and effectiveness from delivery support processes directly or indirectly lead to the productivity of major delivery processes. Processes like infrastructure and network maintenance have become important for offshore progress / BPO models.
Six Sigma DMAIC projects are generally forked to improve any or most of the processes mentioned above.
Numerous Y metrics for Delivery service support processes are
Powerful resource turnaround time
Cycle time for recruitment
Defects in payroll processing
On point in time invoicing
Accuracy of invoicing
'network ' response time
Network utilization
Training effectiveness
In benefit, Six Sigma has a profound impact on the most critical resource in the basket industry i. e. hr.
PRODUCT QUALITY ATTRIBUTES
It is of extremely important importance to deliver an outstanding software product. The application of Six Sigma into the above two areas? Foundation Delivery Processes and Offering Support Processes, directly or indirectly results to product quality. Metrics prefer response time, resource usage (Memory / CPU), and resources availability are critical to products you can a software application. Six Sigma methodologies can be molded to optimize performance in line with the required metrics.
The Six Sigma DFSS scheme enables us to predict product performance in your initial design stage so that adequate control measures are typically in place. Figure 3 depicts all the impact of any error or missed requirement in design phase at the cost in the later phases within the software development lifecycle. It's proved that time delivered to fix a design or maybe requirements defect during tests phase needs about 20 conditions of rework effort as compared to a defect fixed right from the induction phase. Here, deployment of Six Sigma can play a big role to reduce or control the development costs.
The DFSS methodology like applicable for software processes shouldn't be directly mapped to DFSS system as implemented in development processes. In manufacturing, a solution once designed is produced for years together. Whereas, in lawsuit of software development, some software design is developed (coded, to be precise) only once. This makes the practical application of DFSS in software package development tougher. In a typical manufacturing setup, the crux of DFSS is based on achieving manufacturability at Four Sigma quality levels. On a manufactured product, the design budget is likely to be flexible but for software solutions, the pay up design is very limited and lots of the CTQs must be met on the given budget. The DFSS rigor is the reason why the software is intended, coded and approved utilizing minimum rework.
The DMAIC methodology are generally applied to improve your jewelry Quality Attributes of existing applications, too. Many a times, as the user base increases or if ever the application is deployed within the global environment, response time decreases. Round the clock option of application has also turn into a critical issue in today抯 intercontinental work culture and BPO situation. DMAIC projects can come to be implemented to tackle such issues and find an economical fix. Improving reliability measures such as MTBF (Mean time involving failures) and MTTR (Mean Enough time to Repair) can be other focus instances DMAIC improvement projects.
CUSTOMER扴 TASKS
Most IT companies provide 揈nd to separate? solutions to their clients and as such enjoy a long-term relationship in relation to their customers. This has benefited the service providers in acquiring significant area knowledge. The consultants possess fairly good amount of tacit knowledge about this client抯 core business processes aside from IT skills. Six Sigma tools and techniques offer an excellent channel to establish basis for solution based consulting.
Six Sigma methodologies can help core business processes not to mention IT processes. Owing to the consultant抯 exposure to customer抯 procedures through IT support, they understand or know the best functioning procedures, processes which are not operating efficiently but they are still processes which have climbed to entitlement. This enables prioritization towards tackle the relevant processes and this prioritization of improvements helps make implementation of Six Sigma less difficult.

PATNI扴 APPROACH
Patni抯 Process Consulting Practice offers customers a well designed range of process progress related solutions that covers one of the best of process/quality models as well as applied proven methodology and additionally practices. PCP facilitates IT organizations go to newer levels of business excellence through incremental process improvements that will be either benchmarked against established models
(ISO/CMM) or preoccupied with specific process areas associated with improvement.
With over 15 yrs of experience, Patni抯 consultants supply customer the high-quality and additionally cost-effective solutions by offering the following services:
Process Diagnostics
Brand Based Process Improvement Assistance
Focused Approach to System Consultation
Six-Sigma Methodology for Process Improvement consultation
Good Management Practices & Workout
Customized solutions
SIX SIGMA METHODOLOGY FOR PROCESS IMPROVEMENT
Patni started upon its Six Sigma launch initiative in 1998 with select software project distribution areas. In the time 2000, Six Sigma was implemented within strategic business unit (SBU).
Inevitably, it was implemented at the company level. As for June 2003, Patni possesses a team of over 20 certified Black belts, over 300 certified Green belts and others than 1100 trained Environment friendly Belts.
Patni Green Belts executed over 350 projects occupying across all SDLC operations, which resulted in benefit of greater than $ 2mn to customers in addition to productivity gains and quality improvement in every one SDLC processes. The projects preoccupied with areas such as reducing of batch cycle time, trying time and time invested in in resolving production abends. What's more , focuses on improving In timely manner Delivery, automation of customer抯 systems and optimizing CPU utilization or anything else.
Patni抯 Six-Sigma consultation services seek to improve customer抯 quality software processes and their returns on investment (ROI) by reducing operational expenses.
Certified Six Sigma professional transfer critical knowledge and skills in the client organization to lay the foundation for lasting improvements during the dynamic business environment. Patni facilitates optimization of processes together with the Six Sigma methodologies (DMAIC/DMADV).
Patni抯 past record of Six Sigma consultancy offerings includes:
Performance Improvement
System Improvement
People Development
Patni has become incredible its own specific Four Sigma based methodology for you to execute development projects and maintenance projects respectively.

INDUSTRY VALUE
DEPLOYING SIX SIGMA MEANT FOR PROCESS IMPROVEMENT
Conseco, Inc., undoubtedly one of America's leading sources for the purpose of insurance, investment and borrowing products offers its customers better products as an exchange to their current policies. The exchange progression, involves the following only two steps:
Field related tasks like approaching you, to get his/her status, and complete the mandatory paperwork.
Back office job in policy administration
The purpose of the solution was to make sure you process 10, 000 applications between August -December 2001 aided by the existing workforce of 04 people.
Patni implemented the Six Sigma, process improvement DMAIC methodology in your following manner.
One Black Belt resource from Patni was basically deployed at Consesco web page to facilitate process progress using Six Sigma plan.
A model was formulated to project staffing needs to process the desired selection of applications.
Formulate new progression definition, Implementation Plan, Documentation/Control Package.
Patni deployed Six Sigma fruitfully by reducing the circuit time for processing applications thereby increasing productivity.
DEPLOYING SIX SIGMA FOR TIMELY DELIVERY (OTD)
Patni possesses a project based Service Level agreement (SLA) about the task delivery schedule with amongst its clients. On Time Delivery (OTD) is the metric used for calibrating delivery schedule. Patni initiated the SPAN? Six Sigma DMAIC plan to realign service amounts for OTD and convert it to the following two parameters:
SPAN - A metric would always measure the variation in deliveries beyond the customer stated date
Median? A metric which specifies the spot where the project is centered
Patni accomplished the SPAN? DMAIC project in your following manner:
High level discussions were held to understand and gather the issues affecting high SPAN.
Typically the Six Sigma- DMAIC plan was implementd for technique improvement.
Span Caluclator and Minitab Tools like Quantify R&R, Normality Test, Segmentation, Pareto,
Regression and control Charts were would always undertake complex calculations.
Patni working the SPAN? Six Sigma DMAIC project by reducing SPAN and additionally Median and consistently meeting customer delivery dates. It successfully employed usage of statistical tools to track what may cause high process variation.

ENDING
Six Sigma can be successfully applied to the IT services industry where hr is a critical input
Availability of reliable data and metrics is crucial to successful implementation of Six Sigma there arena
In IT offerings sector, benefits of Six Sigma can be accrued from
Internal process improvement
Product Quality growth
Better predictability
Customer satisfaction improvement due to improved cycle time, misuse reduction
Though some within the processes in IT industry will most likely not fall under normal possibility distribution, other quantitative and qualitative tools is often used to improve the approach.
Focus of DFSS plan on Analyze and style phase significantly reduces a defects, rework during testing and so productivity during the rollout cycle
Six Sigma rigor can be described as key differentiator in method based consulting

ABOUT THE AUTHOR
Rajesh Naik
Rajesh Naik seems to have over 12 years about experience, including more than 6 years in neuro-scientific quality initiatives like Malcom Baldrige model, Balanced Scorecard, Six Sigma and Quality circles. He assumed Six Sigma charcoal belt role at Patni with 2001 and was an important part of core Six Sigma team that rolled out 6 Sigma in Patni-GE Worldwide Development Center. During the tenure, his key role happens to be to identify improvement chances, coach / mentor all the green belts for task completion, training of the consultants that include customizing Six Sigma coaching material for software professionals, deliver training. He successfully designed not to mention launched the DFSS technique for Software development projects with the SBU. He also, done anything about cycle time improvement project for a leading insurance company around US.
Rajesh holds a post graduation in Programs technology from NCST, Mumbai subsequent to graduation in Industrial Technological innovation.
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