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OPERATIONAL EFFICIENCY & PROCESS

IMPROVEMENT IN IT INDUSTRY
BUSINESS RESEARCH PROJECT
Submitted by
SREEJITH RAJAMOHANAN

Under the guidance of


DR. SUNITA
ASST.PROFFESSOR, NIT CALICUT

Process & Operational Efficiency Improvement in IT Industry

Lean management is a philosophy focused on identifying and eliminating waste throughout a


products entire value stream. It originates from the manufacturing system of Japanese
automotive manufacturer Toyota and attracted due to its tremendous success widespread
attention worldwide. Lean promises significant benefits in terms of waste reduction, and
increased organizational and supply chain communication and integration. Generally, in terms of
operations and improvements service companies are far behind manufacturing industries.
Transferring Lean management concept from the manufacturing shop floor to services might
offer opportunities for improvements. Many manufacturing businesses have improved and
profited by the use of Lean management methods and tools. Yet the benefits havent been as
nearly as impressive for service industries applying Lean management principles. The challenge
in applying Lean to services is the lack of widely available references for implementing Lean in
a service organization.
As per MG. Kanakana [1], Lean manufacturing principles and tools were found to be applicable
in the service industry. Although in some service environments some Lean tools had to be
adjusted. In the early 1990s, Lean was successfully implemented in service industries such as
banking sectors and public sectors, and even hospitals and airlines were adopting this
methodology to improve efficiency within their organisations George[2]. Financial sectors have
also implemented Lean successfully, particularly in call centres. Studies by Ahlstrom[3] indicate
how financial sectors have implemented Lean principles and tools purely in call centres.
Financial sectors such as banks, and insurance and revenue services can utilise Lean principles
effectively and gain substantial benefits; the major benefits being improved efficiency, deduction
of costs and improved customer satisfaction.
Nucore is one of the leaders in providing back office solutions to companies in the eld of travel
and tourism in the Middle East and India. Nucore partners with leading GDS networks like
Amadeus, Galileo and Sabre, travel management companies like HRG, business travel payment
solutions provider like Airplus and credit card major like American Express to provide its clients
top notch back office solutions with highest operational and nancial efficiency . At present the
company has about 335 clients worldwide, it aims to acquire close to 1000 clients with in the

next 2 years. Also the company is at present in the process of entering the African and Indian
market for the very first time. The current scenario poses great challenges for the company.
Hence given the challenge ahead, the company is looking to increase the operational efficiency
of its deliverables, in house support systems and improving its process management by
streamlining and standardizing. This involves application of productivity improvement tools like
Lean management in the organization. One example of a key problem, the company is facing is
the rising number of customer tickets, mainly unresolved ones leading to customer
dissatisfaction.
The objective of the proposed project is to enhance operational efficiency and process
improvement at Nucore Technologies. The scope of the work at present will be limited to support
deliverables at 3 layers of Nucore support that is at the Business analyst level, Product Analyst
level and the Technical support level. Primary data analysis will be done by direct interview and
observation. The secondary data analysis will come from the customer tickets and deliverables
data.
It is expected that the final outcomes of the project will be reflected in enhanced operational
efficiency that is for example reduction in customer tickets. The project outcomes will enable
Nucore technologies to streamline its processes and see enhanced customer satisfaction levels. It
is also expected that, the proposed solutions aid the company in decision making process for
future expansion plans.

References
[1] LEAN IN SERVICE INDUSTRY MG. Kanakana1 Department of Industrial Engineering
Tshwane University of Technology, South Africa, SAIIE25 Proceedings, 9th 11th of July 2013,
Stellenbosch, South Africa 2013 SAIIE
[2] George, M.L., Lean Six Sigma for Service 2003: McGraw-Hill.
[3] Ahlstrom, P., Lean Service operations: Translating lean production principles to service
operations. International Journal of Services Technology and Management 2004.