WIPRO TECHNOLOGIES
HUMAN RESOURCE MANAGEMENT PROJECT
REPORT
[Submitted in Partial Fulfillment]
[Second Semester – JANUARY-MAY 2010]
MANMOHAN (03011403909)
MBA SECOND SEMESTER
BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES
SHAKARPUR, DELHI-92.
Name:
MANMOHAN
RollNo.:03011403
909
MBA II Semester
BPIBS, Delhi.
Bhai Parmanand Institute of Business
studies
Shakarpur, Delhi-110092
Date:
[S. THIYAGARAJAN]
IN-CHARGE – DEPT. OF
MBA
AND
PROJECT GUIDE
Bhai Parmanand Institute of Business
studies
Shakarpur, Delhi-110092
ACKNOWLEDGEMENT
TABLE OF CONTENTS
CONTENTS PARTICULARS PAGE
NO.
DECLARATION BY THE [i]
STUDENT
CERTIFICATE OF THE [ii]
PROJECT GUIDE
ACKNOWLEDGEMENT [iii]
CHAPTER-I INTRODUCTION:
1.0 Introduction of Six 2
Sigma
1.2 Objectives of the
Study
1.3 Methodology of Six
Sigma
1.3.1 Define,
Measure , Analyze, Improve
& Control (DMAIC)
1.3.2 Define,
Measure , Analyze, Design &
Verify (DMADV)
1.3.3 Design for Six
Sigma (DFSS)
1.3.4 Business
Process Management System
(BPMS)
BIBLIOGRAPHY
ANNEXURE
CHAPTER 01
INTRODUCTION
INTRODUCTION OF SIX SIGMA
Six Sigma has been around for over a decade and as such it
has been deployed at lots of companies around the world.
More than 75% of the fortune 500 companies have deployed
Six Sigma in one form or another. Some companies have
chosen not to call it Six Sigma due to copyright or other
issues. They have a similar approach but may call it by a
different name (such as STRIVE, MEDIC, etc). It is a measure
of quality that strives for near perfection. The Six Sigma
process uses data and rigorous statistical analysis to identify
"defects" in a process or product, reduce variability, and
achieve as close to zero defects as possible.
- General Electric
- Motorola
- Microsoft
- Philips
- Xerox
- Dell
- WIPRO
Six Sigma is a data-driven quality measure that strives for a near perfection
of any process. It is important to understand Six Sigma as a tool, as too
many incomplete definitions have made it look like a complicated fad.
• 68% of the area (data points) lies within one standard deviation (+/-1
sigma) of the mean.
• 95% of the area (data points) lies within two standard
deviation (+/-2 sigma) of the mean.
Motorola engineers argued that a process could shift 1.5 sigma in regular
course, as shown in the figure below.Thus, to accommodate 1.5-sigma shift,
they proposed that the tolerance has to be +/- 6 sigma. In six-sigma
methodology 99.9996599% (or more) of process data lies within +/- six
sigma from the mean, thus having only 3.4 defects per million opportunities
(DPMO). Now, 99.9996599% value is actually for 4.5 sigma level in Normal
curve, but keeping in view the 1.5 sigma process shift, the process sigma
level is actually six.
99.98 233 5
99.4 6,210 4
93.3 66,807 3
69.1 308,538 2
In Six-Sigma process, 99.9996599% data will be within +/- 6
sigma levels, which is a -total of 12 sigma under the curve.
To have a six-sigma process, 12 standard deviations should
be able to fit in the permissible spread (customer
specification limits). Let’s look at few terms:
SIGMA
PPM
LEVEL
2 308,537
3 66,807
4 6,201
5 233
6 3.4
“Quality is free. It is not a gift, but it is free. What costs money are in-
quality things - all the actions that involve not doing jobs right the first
time.” – Philip Crosby
Six Sigma focuses on improving quality (i.e. reduce waste) by helping
organizations produce products and services better, faster and cheaper. Six
Sigma focuses mainly on defect prevention, cycle time reduction, and cost
savings. Unlike mindless cost cutting programs, which reduce value and
quality, Six Sigma identifies and eliminates costs.
Many companies pay a lot in correction, i.e. 80% of the cost in a Software
Engineering (SE) project is commonly related to after-delivery corrections.
And we also found:
Cost decreases
Improve
because of less
Quality
rework, fewer Productivity
mistakes, fewer improves
delays, snags,
better use of
machine-time and
materials.
The projects having large impact of customer satisfaction and significant impact on
bottom-line are selected. Top management of the organization has very important
role during selection of projects and leaders. The projects are clearly defined in
terms of expected key deliverables. These are typically in terms of DPMO levels or
sigma quality levels, RTY, Quality Cost etc. In the overall approach, the actual
problem is converted in to a statistical problem. Mapping the process does this,
defining key process input variables (KPIVs or 'x's) and key process output
variables (KPOVs or 'y 's). The power of statistical tools is used to determine a
statistical solution. This is then converted in to a practical solution.
The number of 'x' s go on getting eliminated using various statistical and other
tools. This is as if the variation is getting reduced as it passes through a funnel of
the six-sigma methodology. This is sometimes called the breakthrough strategy.
The cause and effects relationship between the KPOVs ('y's) and KPIVs ('x's) gets
clearer as the project goes through the four phases. Control plans are documented
before the closure of the project so that gains are sustained. The project leaders
must demonstrate that the key deliverables of the project are achieved and
demonstrated.
D Define the goals of the improvement activity. At the top level the
goals will be the strategic objectives of the organization, such as a
higher ROI or market share. At the operations level, a goal might be
to increase the throughput of a production department. At the
project level goals might be to reduce the defect level and increase
throughput. Apply data mining methods to identify potential
improvement opportunities.
Design for Six Sigma (DFSS) is a systematic integration of tools, methods, and
processes for new product and service development. New product / service
development is a business process focused on improving profitability. Properly
applied, DFSS is a powerful management technique that generates the right product
at the right time at the right cost.
Importance of DFSS:
Innovation is the lifeblood of most organizations. For the majority
of organizations, long-term success is tied directly to the new
product development process. Tomorrow’s revenue and growth
are tightly bound to how successful you are at launching new
products and services. And yet, the development effort faces
many challenges in practice.
Objectives:
• Introduce the DFSS methodology and explore the secrets of success of some of
the world’s most innovative companies.
• Introduce effective team design methods.
• Introduce portfolio management concepts and tools.
• Provide product development process audit tools.
• Examine approaches for successful implementation of DFSS
Participant Benefits:
• A customer and competitor-oriented perspective of innovation.
• An enhanced ability to recognize barriers to new product success early and adjust
quickly.
• A working knowledge of all phases of the new product development cycle,
integrating both business and technical elements.
• An appreciation of how to design and lead cross-functional DFSS project teams.
• An understanding of how and when to use structured tools and methodologies for
new product / service development (e.g., design analysis, voice of the customer,
quality function deployment, Pugh analysis, failure and error mode effects
analysis).
3. Business Process Management system (BPMS):
visibility and control over all parts of a long-lived, multi-step information request
value of business processes however large or small, wherever they reside within
ORGANIZATION PROFILE
WIPRO TECHNOLOGIES
An Overview
same period.
Project selection:
The first year of deployment was extremely difficult for Six Sigma
success. They decided to select the project on the basis of high
probability of their success and targeted to complete them in a
short period to assess the success. These projects were treated as
pilot projects with a focus to learn. For the selection of the right
project the field data was collected, process map was developed
and the importance of the project was judged from the eyes of
customers.
Training:
After the set up, the first step of implementation was to build a
team of professionals and train them for various stages of Six
Sigma. The training was spread in five phases: Defining,
measuring, analyzing, improving and controlling the process and
lastly increasing customer satisfaction. These phases consisted of
statistics, bench marking and design of experiments. To find the
right kind of people and train them was a difficult job. This
motivated Wipro to start their own consultancy to train the
people.
Resources:
This is the highest level of technical and organizational proficiency. Master Black
Belts provide technical leadership of the Six Sigma program. Thus, they must
know everything the Black Belts know, as well as understand the mathematical
theory on which the statistical methods are based. Master Black Belts must be able
to assist Black Belts in applying the methods correctly in unusual situations.
Whenever possible, only Master Black Belts should conduct statistical training.
Otherwise the familiar “propagation of error” phenomenon will occur, i.e., Black
Belts pass on errors to green belts, who pass on greater errors to team members. If
it becomes necessary for Black Belts and Green Belts to provide training, they
should do only so under the guidance of Master Black Belts. For example, Black
Belts may be asked to provide assistance to the Master during class discussions and
exercises. Because of the nature of the Master’s duties, communications and
teaching skills are as important as technical competence.
Black Belt:
Candidates for Black Belt status are technically oriented individuals held in high
regard by their peers. They should be actively involved in the process of
organizational change and development. Candidates may come from a wide range
of disciplines and need not be formally trained statisticians or engineers. However,
because they are expected to master a wide variety of technical tools in a relatively
short period of time, Black Belt candidates will probably possess a background in
college-level mathematics, the basic tool of quantitative analysis. Coursework in
statistical methods should be considered a strong plus or even a prerequisite. As
part of their training, Black Belts receive 160 hours of classroom instruction, plus
one-on-one project coaching from Master Black Belts or consultants.
Green Belt:
Green Belts are Six Sigma project leaders capable of forming and facilitating Six
Sigma teams and managing Six Sigma projects from concept to completion. Green
Belt training consists of five days of classroom training and is conducted in
conjunction with Six Sigma projects. Training covers project management, quality
management tools, quality control tools, problem solving, and descriptive data
analysis. Six Sigma champions should attend Green Belt training. Usually, Six
Sigma Black Belts help Green Belts define their projects prior to the training,
attend training with their Green Belts, and assist them with their projects after the
training.
STRATEGIES FOR SIX SIGMA
In this strategy, the whole organization is trained on six sigma philosophy and
methods. The training is of varying depth for various levels. Six sigma serves as
motivational device and also as a metric. Goals are defined in terms of sigma.
While the organization can have a common language of six sigma, large resources
are required for training. All improvement ideas are likely to be credited to six
sigma regardless of the approach actually used.
Here, the attempt is to develop skills in the Engineering functions. The project
objectives are usually based on new products, product changes or problem solving.
One of the advantages is the relatively higher level of educational and technical
background of the individuals that enables them to learn at a faster pace. On the
other hand, individuals from other functions do not appreciate the efforts in
absence of the awareness of the techniques.
3. Strategic selection of six sigma projects:
The senior management sometimes feels that the current quality processes are
generally working well to achieve the overall strategic plan. Hence six sigma tools
and concepts are used to enhance the existing quality processes and supplement the
skills of the key people thereby making breakthrough improvements. Six sigma
projects are identified considering the:
Six Sigma only appears to be a little different than TQM in terms of Quality tools,
techniques, and principles, but from a global perspective it's a whole new animal
for the following reasons (in order of importance):
India’s IT industry is respected globally for its focus on quality. While SEI-CMM
and other ISO standards are quite common, Six Sigma is now becoming popular
amongst Indian IT and ITeS companies. Some have already started reaping the
benefits of adopting Six Sigma.
Six Sigma is popular with Indian IT and ITeS players for many reasons, not the
least of which is the fact that it is very clearly result-oriented. Of course, the fact
that one of Indian software’s biggest customers, General Electric (GE), is a big
proponent of Six Sigma doesn’t hurt either.
More result-oriented
Many Indian IT and ITeS players believe that Six Sigma is more result-oriented
than other quality and improvement standards and therefore it helps them
streamline their processes, bringing about all-round organisational improvement.
As Six Sigma practices aim at quantifying each and every process in numbers, it is
easier to measure improvement. Sambuddha Deb, chief quality officer, Wipro
Technologies says, "In most other standards it is very difficult to measure quality
as everyone has a different definition of quality. However, Six Sigma practices
underline defects in a process, thereby making it easy to improve upon it by
eliminating the defect from its root." After adopting Six Sigma, many organisations
have found that their delivery processes have become sustainable and continuous.
For call centres in particular, and IT companies in general, the prospect of
improving HR processes using Six Sigma is a big draw. Shwetank Sharad, head of
quality at ICICI OneSource says, "There are well defined roles in a Six Sigma
practice, like a Master Black Belt, Black Belt and a Green Belt. It aims at zero
error in a process, thereby resulting in overall improvement in a set-up."
Several Indian IT and ITeS companies have adopted Six Sigma in order to gain
customer acceptability and improve client satisfaction. It has helped them create
and deliver value and demonstrate direct savings to their customers. Some IT
companies like TCS and iGATE Global Solutions went in for Six Sigma as a result
of their long-term relationship with General Electric (GE) one of the pioneers in
spreading and adopting the concept of Six Sigma (Motorola was the other pioneer
in Six Sigma).
N G Subramanayam, vice president of Bangalore Operations for TCS says,
"Initially we took the help of GE and Motorola in adopting Six Sigma. GE trained
our core team, which then spread the concept across TCS. After having adopted the
Six Sigma practice in 1999 we have worked on nearly 300 projects using this
practice."
Indian IT and ITeS companies have adopted Six Sigma across their organisations
and have tried to incorporate most of the processes running in their set-ups. As Six
Sigma aims at continuous improvement it has resulted in changing the complete
mindset of employees as per its procedures. The change in the overall mindset of
the organization has resulted in greater efficiency and productivity as well as a
reduction in cost and cycle time.
The adoption of Six Sigma has been largely confined to large IT and ITeS players
in the country as they have a large number of repeatable processes that can be
improved over a given time period. They also have a large number of projects that
follow a similar process. Large IT and ITeS companies also have multiple quality
standards running across the organization and it is easier for them to integrate Six
Sigma practices along with other standards. Krishnan Puthucode, director and
CEO, SEI Authorized Lead Assessor, Software Quality says, "In some SMEs there
are hardly 10 projects running and they aren’t many repeat processes in them. In
such cases it becomes very difficult to adopt Six Sigma practices. Hence SMEs are
struggling to adopt Six Sigma."
Integrating Six Sigma practices with other standards
Indian IT and ITeS companies adopting Six Sigma already have a quality standard
like a CMM Level 5 certification or an ISO certification. It is easier to integrate Six
Sigma practices when there are also practices like CMM or ISO running in a set-
up. Some organizations like Wipro, TCS and iGATE Global Solutions in the IT
field and EXL Services and 24/7 Customer in ITeS already had other quality
programmers running successfully before they went in for Six Sigma. When the
Six Sigma adoption idea was mooted the management readily accepted it, thereby
paving the way for overall adoption across the organization."
Wipro has adopted the project approach for Six Sigma, where
projects are identified on the basis of the problem areas under
each of the critical Business Processes that adversely
Manufacturability
Executive Management
Financial Executives
Black Belts
Green Belts
Yellow Belts
SIX SIGMA
Developing Improving
New Existing
Processes Processes Re Engineering
of Six Sigma:
Ideation
Definition
Selection
Tracking
Reporting
A Six Sigma program integrates the elements of management culture and quality
techniques that are critical to driving performance improvement and business
excellence.
Six Sigma projects are results-oriented.
1997-98 00
1998-99 48
1999-00 192
2000-01 315
2005-06 1180
Reduces person-hours.
Listing out all these benefits clearly shows the potential impact that the six sigma
process can have on any organization. The question is that how does one achieve
six sigma. I will throw some light on that part of it in the application section of this
project from my understanding on how to achieve six sigma. Just to conclude on
why I chose this topic for my project on quality control I would like to say that six
sigma can achieve in the following success factors:
Cost reduction
Productivity improvement
Market share growth
Customer retention
Cycle time retention
Defect reduction
Culture change
Product/service development
Generates sustained success
Sets a performance goal for everyone
Enhances value to customers
Accelerates the rate of improvement
Promotes learning and “cross-pollination”
Executes strategic change
a) Define/Identify Phases
b) Measure Phase
c) Improve/Design Phase
d) Verify/Control Phases
e) Small and medium size companies or business units, who actively enter the
Six Sigma community, have additional limitations when deploying Six Sigma
methodology:
All the data that entered the analysis phase was tested against the CHART test
(Complete-Honest-Accurate-Relevant-Timely). Appropriate Six-Sigma tools were
deployed to monitor and analyse performance of processes. For example: The
statistical control chart was used to monitor the quality level of communication.
The control chart was used to monitor the recruitment process. The run chart was
used to monitor the feedback process. .
Process owners, with assistance of Six-Sigma Black Belt conducted the analysis.
Targets were set based on customer requirements and process capabilities. The
analysis aimed to identify the vital parameters that affect process results. They
were identified by using the experience of process participants, correlation analysis
and customer feedback. Other Six-Sigma tools were also deployed. For instance,
Pareto analysis was used to analyse reasons for employees leaving the company.
Improvement
Action followed the analysis. The HR database was updated
regularly to monitor the improvements after implementation. The
focus began to shift from monitoring measures of performance
(MOPS) to controlling inputs that control the MOPS. .
Control
A quarterly HR review was developed and issued by the HR. It
contained all the process analysis results and implementation. It
also contained a detailed Six-Sigma Score Chart.
Achievements
The cost of the HR function reduced by 34%
For TCS it was the enormous size of the company and partly because it was taken
up as a global initiative that it was a challenge to adopt the practice initially. N G
Subramanayam of TCS says, "After adoption of the Six Sigma practice it is easier
for us to deal with companies like GE but dealing with other companies that are not
very comfortable with the Six Sigma concept it is very challenging for us."
The Challenge will be to transform Six Sigma from a tool for improving product
quality to an overall business improvement methodology. The company’s aim will
be at having 100% of its management trained in Six Sigma.
1. From an upper management perspective, what has been the principal motivating
factor in embracing six sigma?
a. Forming
b. Storming
c. Performing
d. Norming
3. The purpose of "rolled throughput yield" in the six sigma define step would
include all of the following, EXCEPT:
Interpretation: All above four options helps to display data but the most
appropriate and effective technique is boxplots.
Senior Leadership:
Business Focus:
Action:
Six sigma is a business initiative that helps the organization meet its changing
business need. It is widely used to provide a structured approach to improve
process but many organizations have found that the return of an organization's
effort will be much more favorable to the "bottom line" if the six sigma
methodology was focused on the design and not the product alone. Although six
sigma brings a new direction to quality and productivity improvements.
BIBILIOGRAPHY
Websites:
www.isixsigma.com
www.wipro.com
ANNEXURES
B. How many years have you been associated with the Design field?
o < 2 years
o >2 years but <=4years
o >4 years but <=6years
o >6 years but <=8years
o >8 years but <=10years
o >10 years
D. Please select which area of industry you are currently engaged with:
□ Electronics
□ Aerospace
□ Software & Services
□ Health Care Equipment
□ Consulting
□ Automotive
□ Other, please specify ____________
E. What are your Business Unit’s Annual Sales?
o < $25 million (M)
o $25 M to < $100 M
o $100 M to < $500 M
o $500 M to < $1 billion (B)
o $1B or more
(ii)Sample B.
1. Could you think that Six-Sigma has significantly improved your organization's
profitability?
a. High (100%-60%)
b. Middle (60%-10%)
c. Low (Below 10%)
d. Neither
2. Could you think that Six-Sigma has significantly improved processes of your
work at organization?
a. High (100%-60%)
b. Middle (60%-10%)
c. Low (Below 10%)
d. Neither
3. Could you think that Six-Sigma process has improved design process at your
organization?
a. Agree
b. Disagree
c. Neither
4. Do you think that Six-Sigma could be interrupted your creative work at your
organization?
a. Agree
b. Disagree
c. Neither
(iv) Sample D.
Design process, Six-Sigma and Customer Relationship Management & Using Six-
Sigma Tools
1. If you are using or done your project with Six-Sigma, could you think that it is
necessary to get for customer satisfaction through your work?
a. Agree
b. Disagree
c. Neither
2. Could you think that Six-Sigma has significantly improved customer satisfaction
at your organization?
a. High (100%-60%)
b. Middle (60%-10%)
c. Low (Below 10%)
d. Neither
4. Could you think that the complexity of the Six Sigma methodologies varies with
the complexity of the project?
a. Agree
b. Disagree
c. Neither