Quality tools technique used by company Wipro (Six Sigma)

Submitted To- Prof. Pranay Verma

Submitted BySanjay Prasad Yadav FT-RM-10-813 PGDRM

Quality: "Quality itself has been defined as fundamentally relational: 'Quality is the ongoing process of building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied needs.'

International Quality standards for manufacturing & Service industry:

ISO 9000 is a family of standards related to quality management systems and designed to help organizations ensure that they meet the needs of customers and other stakeholders. The standards are published by ISO, the International Organization for Standardization, and available through National standards bodies. ISO 9000 deals with the fundamentals of quality management systems, including the eight management principles on which the family of standards is based. ISO 9001 deals with the requirements that organizations wishing to meet the standard have to fulfill third party certification bodies provide independent confirmation that organizations meet the requirements of ISO 9001. Over a million organizations worldwide are independently certified, making ISO 9001 one of the most widely used management tools in the world today. Despite widespread use, however, the ISO certification process has been criticized as being wasteful and not being useful for all organizations.

Reasons for use

The ISO family of standards is the only international standard that addresses systemic change. The global adoption of ISO 9001 may be attributable to a number of factors. A number of major purchasers require their suppliers to hold ISO 9001 certification. In addition to several stakeholders benefits, a number of studies have identified significant financial benefits for organizations certified to ISO 9001, with a 2011 survey from the British Assessment Bureau showing 44% of their certified clients had won new business. Corbett et al (2005) showed that certified organizations achieved superior return on assets compared to otherwise similar organizations without certification. Heras et al (2002) found similarly superior performance and demonstrated that this was statistically significant and not a function of organization size. Naveh and Marcus (2007) showed that implementing ISO 9001 led to superior operational performance. Sharma (2005) identified similar improvements in operating performance and linked this to superior financial performance. Chow-Chua et al (2002) showed better overall financial performance was achieved for companies in Denmark. Rajan and Tamimi (2003) showed that ISO 9001 certification resulted in superior stock market performance and suggested that shareholders were richly rewarded for the investment in an ISO 9001 system. While the connection between superior financial performance and ISO 9001 may be seen from the examples cited, there remains no proof of direct causation, though longitudinal studies, such as those of Corbett et al (2005) may suggest it. Other writers, such as Heras et al (2002), have suggested that while there is some evidence of this, the improvement is partly driven by the fact that there is a tendency for better performing companies to seek ISO 9001 certification. The mechanism for improving results has also been the subject of much research. Lo et al (2007) identified operational improvements (cycle time reduction, inventory reductions, etc.) as following from certification.

Buttle (1997) and Santos (2002) both indicated internal process improvements in organizations leading to externally observable improvements. Hendricks and Singhal (2001) results indicate that firms outperform their control group during the post-implementation period and effective implementation of total quality management principles and philosophies leads to significant wealth creation. The benefit of increased international trade and domestic market share, in addition to the internal benefits such as customer satisfaction, interdepartmental communications, work processes, and customer/supplier partnerships derived, far exceeds any and all initial investment, according to Alcorn.

1987 version ISO 9000:1987 had the same structure as the UK Standard BS 5750, with three 'models' for quality management systems, the selection of which was based on the scope of activities of the organization:

ISO 9001:1987 Model for quality assurance in design, development, production, installation, and servicing was for companies and organizations whose activities included the creation of new products. ISO 9002:1987 Model for quality assurance in production, installation, and servicing had basically the same material as ISO 9001 but without covering the creation of new products. ISO 9003:1987 Model for quality assurance in final inspection and test covered only the final inspection of finished product, with no concern for how the product was produced.

ISO 9000:1987 was also influenced by existing U.S. and other Defense Standards and so was well-suited to manufacturing. The emphasis tended to be placed on conformance with procedures rather than the overall process of management, which was likely the actual intent.

1994 version ISO 9000:1994 emphasized quality assurance via preventive actions, instead of just checking final product, and continued to require evidence of compliance with documented procedures. As with the first edition, the down-side was that companies tended to implement its requirements by creating shelf-loads of procedure manuals, and becoming burdened with an ISO bureaucracy. In some companies, adapting and improving processes could actually be impeded by the quality system. 2000 version ISO 9001:2000 combined the three standards9001, 9002, and 9003into one, called 9001. Design and development procedures were required only if a company does in fact engage in the creation of new products. The 2000 version sought to make a radical change in thinking by actually placing the concept of process management front and center ("Process management" was the monitoring and optimisation of a company's tasks and activities, instead of just inspection of the final product). The 2000 version also demanded involvement by upper executives in order to integrate quality into the business system and avoid delegation of quality functions to junior administrators. Another goal was to improve effectiveness via process performance metrics: numerical measurement of the effectiveness of tasks and activities. Expectations of continual process improvement and tracking customer satisfaction were made explicit.

The ISO 9000 standard is continually being revised by standing technical committees and advisory groups, who receive feedback from those professionals who are implementing the standard. 2008 version ISO 9001:2008 basically renarrates ISO 9001:2000. The 2008 version only introduced clarifications to the existing requirements of ISO 9001:2000 and some changes intended to improve consistency with ISO 14001:2004. There were no new requirements. For example, in ISO 9001:2008, a quality management system being upgraded just needs to be checked to see if it is following the clarifications introduced in the amended version.

Six sigma at Wipro technologies Introduction

Wipro Limited was established in 1945 and commenced its operations in 1946 as a vegetable oil company. In the early 1980s, Wipro diversified into the Information Technology sector with Liberalization hitting India in the 1980s. This has been a fascinating transformation from a vegetable oil company into a global IT services giant. Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of clients. Wipro has 40+ Centers of Excellence that create solutions around specific needs of industries. Wipro delivers unmatched business value to customers through a combination of process excellence, quality frameworks and service delivery innovation. Wipro is the World's first CMMi Level5 certified software Service Company and the first outside USA to receive the IEEE Software Process Award. Wipro has one of the most mature Six Sigma programs in the industry ensuring that 91% of the projects are completed on schedule, much above the industry average of 55%. Six sigma provide the tools for continuous improvement on existing processes thereby helping sustain the SEI-CMM Level 5 and CMMi certifications. A strong emphasis upon building a professional work environment, leaders from within, and having a global outlook for business and growth have led to innovation of people processes on a continued basis. Over the years, Wipro has significantly strengthened its competency based people processes and demonstrated innovative practices in talent acquisition, deployment, and development, based on strategic needs. A leading provider of communication networks in the US required improvement in the product performance of a telecom application using Six Sigma methodologies. Thus, with the growing importance on aligning business operations with customer needs and driving continuous improvement, Wipro began moving towards focusing on Quality, thereby, creating a learning environment that led to implementation of Six Sigma. In implementing six sigma some of the key challenges involved are:Reduce the data transfer time Reduce the risk Avoid interruption due to LAN/WAN downtime. Parallel availability of the switch for the other administrative tasks during the same period.

What is six sigma?

The word is a statistical term that measures how far a given process deviates from perfection. Six Sigma is named after the process that has six standard deviations on each side of the specification window. It is a disciplined, data-driven approach and methodology for eliminating defects. The central idea behind Six Sigma is that if you can measure how many defects you have in a process, you can systematically figure out how to eliminate them and get as close to zero defects as possible. Six Sigma starts with the application of statistical methods for translating information from customers into specifications for products or services being developed or produced. Six Sigma is the business strategy and a philosophy of one working smarter not harder. One sigma gives a precision of 68.27%., two sigma, of 95.45% and three sigma of 99.73%, whereas Six Sigma gives a precision of 99.9997%.Although 99.73% sounds very good, it slowly dawned on companies that there is a tremendous difference between 99.73% and 99.9997%. Six Sigma at Wipro simply means a measure of quality that strives for near perfection. It is an umbrella initiative covering all business units and divisions so that it could transform itself in a world class organization. At Wipro, it means: Have products and services meet global benchmarks Ensure robust processes within the organization Consistently meet and exceed customer expectations Make Quality a culture within. Wipro evolved following six sigma mythologies-

1) For developing new processesDSSS+ Methodology- Wipro employs DSSS (developing six sigma software) methodology for software development. The methodology uses rigorous in-process metrics and cause analysis throughout the software development lifecycle for defect free deliveries and lower customer cost of application development. DSSP Methodology used for designing new processes and products DCAM Methodology used for designing for customer satisfaction and manufacturability. 2) For improving existing processesTQSS (transactional quality using six sigma) Methodology used for defect reduction in Transactional processes. DMAIC Methodology -used for process improvement in Non-transactional process 3) For reengineeringCFPM (cross functional process mapping) methodology- used for cross functional process mapping.

The list of players at Wipro are Executive management Six sigma champions and deployments leaders Financial executives Black belts Green belts Yellow belts Wipro follow the following process to implement six sigma Defining process Automating process Process improvement Technology interventions Defining process- business process standardization details out key operations area across the business lifecycle enabling: Effective information flow, co-ordinate and communicate Standardize business activities and functions Clearly laid down operating procedures Effective control mechanism Timely and accurate reporting with defined SLAs Automating process- work with clients for automation of key functions ERP CRM Document management system Supply chain management Knowledge management Business intelligence Project management solutions HR management systems

 Process improvement- transforming process to make the organization agile and centric Business process benchmarking Process reengineering automations Six sigma project framework People process framework Cost reduction strategy Process improvement roadmap and implementation.

Technology interventions- work with clients to provide a business aligned IT roadmap enables &sustain IT interventions. Business aligned IT roadmap ISMS Managed services IT sustenance Relationship management Contract management outsourcing

Six sigma consultancy at Wipro Wipros Six Sigma consulting experience has peaked with the indigenous development of new methodologies that it takes to its customers. As Wipro continues Six Sigma consulting journey, it builds on its expertise and experience- to provide enterprise-class coverage of topics in business process management and information technology systems integration. The focus is on supporting the project needs and is also integrated with other methods to support process needs. Currently there are over 200 PMI certified consultants at Wipro. The Wipro quality consulting group trains in achieving the precision of Six Sigma with Wipros own methodologies, training capabilities and global experience. Wipro also helps in institutionalizing Six Sigma across the organization for transformation. Wipro provides consulting in institutionalizing an organization wide Six Sigma program that specializes in implementation across IT development, production support and core business operations.

Benefits
The Six Sigma process resulted in an achievement of close to 250%, 6 minutes for 1 MB transfer and 18 minutes for average data transfer. Because quality is customer driven, the objective of Six Sigma Implementation at Wipro has continuously been on integrating and implementing approaches through a simultaneous focus on defect reduction, timeliness, and productivity. This has translated to lower maintenance costs, schedule-overrun costs, and development costs for customers. Measurements and progress indicators have been oriented towards what the customer finds important and what the customer pays for. Towards this, Six Sigma concepts have played an important role in: Improving performance through a precise quantitative understanding of the customers requirements thereby bringing in customer focus Improving the effectiveness in upstream processes of the software development life cycle by defect reduction (software defects reduced by 50%) and cycle time reduction (rework in software down from 12% to 5%). Waste elimination and increased productivity up to 35%. Cost of failure avoidance (installation failures down from 4.5% to 1% in hardware business). Tangible cost savings due to lower application development cost for customer.

Future focus and challenges

Six Sigma certainly produces breakthrough improvement. But to achieve this Wipro will have to combine the power of the Six Sigma method and tools with stretch goals, goals that almost seem too aggressive, too optimistic. Also Wipro will have to benchmark itself against the competition on the level of performance achieved by rivals. This focus will lead to the adaptation of newer dimensions of the quality management framework towards embodying a totality of process, people, product, and technology for achieving high process capability. Six Sigma projects require continuous change. Black Belts and Green belts develop improvements to systems and processes for which they are not accountable. And when these participants are done with their project, they ask the real system or process owner to implement and sustain their solution and hence the challenge before Wipro lies in bringing the commitment towards continuing its process optimization theory. The Challenge will be to transform Six Sigma from a tool for improving product quality to an overall business improvement methodology. The companys aim will be at having 100% of its management trained in Six Sigma.