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INTRODUCTION

WIPRO APPLYING THOUGHTS Wipro got into e-business fairly modestly, as an offshore center to which U.S. and European companies could send IT customization work and lower-level support functions. But over the years Wipro has diversified to encompbutt higher value-added business process outsourcing (BPO) and consulting roles as well. It's part of a larger trend in which Indian companies, specifically Wipro's peers, are shaking off their image as IT sweatshops (the atbreastude was captured in a reader e-mail from Gilles Pardon of SoftDatabase, who wrote that Indian companies "are still just able to write lines of codes or duplicate Western technologies"). Click here to find out more! Wipro's customers, though, enjoy many services. Currently AT&T, GM, Microsoft, Pitney Bowes, Thames Water, Friends Provident, and Lehman Brothers work with Wipro in all four of its offering areas: BPO, business applications, custom applications, and IT infrastructure. Interestingly, in none of these cases did the customer sign on for all four offerings. GM, for example, started out in just the custom applications area and subsequently expanded. Forrester Research notes that Wipro adds a lot of value and expertise past cheap, basic IT labor that some global outsourcing opponents stereotype the Indian company as providing. "Wipro clients see additional application maintenance productivity of 10% to 15% from added familiarity with systems; another 10% to 15% raise in productivity after applying Wipro's CMMbased methodology and consolidating redundant programs applications; and yet another 3% to 30% productivity improvement thanks to process automation and tools," reads a note from Forrester. Wipro has made a big commitment to those higher-value echelons of its offering. The company has trained 4,000 employees in Six Sigma and has 700 PMI certified consultants. Furthermore, Wipro is hiring consultants and other employees all over the world. The company has three development centers in North America and four in Europe. It has over 5,000 employees based in those two geographies. Given these figures, it's just as baseless to accuse Wipro of enacting a scheme to suck jobs away from Americans as it would be to accuse a U.S. multinational with plenty of Subcontinental presence and hiring power of doing the same to India. Wipro is really no different than other multinational. It happens to be based in India, as its main compebreastors happen to be based in the U.S.; but, no less than those compebreastors, its success grows the pie for a worldwide body of consultants, programmers, and, of course, customers who receive the benefits of Wipro's expertise and can thus better serve their own employees and customers.

1. Assessment of the organisations external environment (LO1)

Business Process Outsourcing

Delivering strategic BPO services and solutions that match the high stakes Business Process Outsourcing optimizes business performance to attain value creation. There has been a tremendous upsurge in the outsourcing industry in many developing countries, like India which aid in reducing costs and increasing service quality. Wipro Business Process Outsourcing (BPO) is a leading provider of BPO services focusing on the complex, voice and non-voice based segment of customer-care services. The integrated solution approach provides enhanced value to the customers through process standardization, process simplification and process optimization. Customer services are provided from outsourcing companies in North America, Central and Eastern Europe, India, China and Latin America. Enterprise BPO

The technology dependency across industry domains has increased with each passing year. At Wipro BPO we have leveraged our range of enterprise services to enable diverse domains meet existing technology and functional requirements. Our best-in-class solutions provide you with a platform to take your enterprise to the next level of operational excellence. Domestic BPO

With nearly 500 players, Indias domestic business process outsourcing (BPO) market is set to touch USD 6.82 billion (around Rs 31,700 crore) by 2013. The domestic BPO market is evolving into third-party transformational outsourcing relationships from the existing captive dominated market structure. This implies that rather than merely running isolated processes for customers,

BPOs would engage more deeply to identify and transform core business processes to add greater market value in the creation and delivery of end products and services.

Total Outsourcing
Generate results with peak performances Global competitiveness is driving market growth across domains and as your business expands, the need to focus on core capabilities becomes increasingly critical. You require the best resources to be devoted across your enterprise as you grow. With IT infrastructure emerging as an important element of defining and achieving your business objectives, you also need to be technologically ready to take on strategic challenges that can fuel your growth. Balancing these business and technology requirements would unnecessarily burden your organizational resources. With this in mind, outsourcing is the key to taking care of IT infrastructure and application needs while allowing you to concentrate on your business competencies. Across domains, IT is an integral part of organizational process and growth and Wipro is that partner who can help you achieve technology competence of the highest level. Wipro Total Outsourcing (TOS) services are targeted at achieving maximum value by providing end-toend best of breed IT practices for your business. From technology optimization to mitigating risks, we fulfill your constant IT infrastructure and application demands while evaluating, deploying and managing flexible, responsive and economical solutions. Through our acknowledged quality processes and program governance frameworks, we help you achieve and sustain business momentum. Based on service level agreements (SLAs), we meet every need and objective of your business by providing IT infrastructure solutions that seamlessly align with organizational processes and practices. As one of the world's top technology vendor, we have helped organizations strategize, integrate, manage, maintain and sustain their IT infrastructure to emerge stronger in their respective domains. We are the partner of choice for corporate as they outsource their IT requirements, thus enabling them to focus on their core competencies. Our success lies in our continued focus to help you enhance your business value through IT. We are committed to deliver quality to your enterprise through our onsite, near site, multisite, offsite and Global Service Management Centre (GSMC) service delivery models.

Total Outsourcing Proposition


Wipro Total Outsourcing proposition delivers improved business benefit by effectively managing Information Technology life cycle of the organization and helps enhance shareholders value.

2. a review of its existing plans, consideration of strategic options(LO2)

Wipro Consulting Services Thinking Ahead At Wipro Consulting, we help companies think ahead. Business today is evolving faster than at any other time in history, and tomorrow there are going to be challenges we can't even imagine today. And opportunities. But to survive and thrive, we must imagine that future. We must anticipate it. Even while we're helping you solve your business challenges today, we're thinking about the future - and how we can take you there. Which is what gives you the competitive edge in what's to come. Transformation Is Key. Everyone talks about transformation, but transformation into what? In our practice of continually thinking ahead, we've developed certain essentials for our model. Our model includes implementing lean optimization. Virtualizing non-core operations and harnessing new technology. Structuring 4th generation partnering agreements that operate at the highest level of trust. So what is the transformation model? It's a business that has been optimized in every respect to improve the bottom line and meet the future with confidence. Competitive Advantages. Wipro Consulting can give you the business analyses you need and follow through with implementation. As part of Wipro, the world's leading provider of integrated business, technology and process solutions, we can deliver a depth of resources that's unsurpassed by other firms. We have the flexibility to deliver solutions quickly and cost-effectively. And our confidence in our ability to think ahead makes us willing to be measured against any business outcomes. Which means that with Wipro Consulting, you get the advantage of future thinking - along with the advantage of being taken the rest of the way.

Analytics and Information Management

Management today needs insight-insight into processes and results that will drive the right decisions to deliver sustainable business performance. The business leaders that master the process to capture,

Testimonial

store and translate enterprise wide data into actionable business insights will continue to outperform competition. Wipro's Analytics and Information Management services helps customers accelerate enterprise wide performance through smart, agile and integrated analytical solutions and frameworks. By bringing together the combined expertise of Analytics, Business Intelligence, Performance Management and Information Management, we help customers derive valuable insights, make informed decisions and drive revenues by harnessing and leveraging enterprise information.

Mike Zimmerman, VP, Infrastructure, Enterprise Data Services & SPO, Pitney Bowes

We offer comprehensive services across: Business Analytics helping customers derive actionable insights across key aspects concerning their customers, products and services enabling them to make quicker, accurate decisions y Business Intelligence and Performance Management enabling customers improve operational efficiencies, drive transformation and change management initiatives by monitoring and managing performance. y Information Management providing customers competitive edge through improved management of information. Our services are backed by industry specific frameworks and solution accelerators built through a complete ecosystem of partners and over 25 competency centers. Our services have provided valuable insights and have helped transform the business processes of several clients, while maintaining data quality. E.g. a single view of vendors enabled a Fortune 100 manufacturer realize annualized bottom line improvement of USD 100 million through procurement optimization. y Through our comprehensive Analytics and Information Management offerings, you can derive valuable insights, improve your visibility and build agility into your entire decision making process. It's this agility that your business requires to thrive even as financial conditions continue to change.

3. The development of a strategic plan (LO3)


Enterprise Resource Planning In a volatile economic environment, businesses are leaning towards innovation in their IT resources. Working with next generation enterprise software, Wipro provides strategic Enterprise Resource Planning (ERP) services that face up to market challenges. Our ERP expertise is further driven by dedicated partnerships with ERP software providers like SAP, Oracle and Microsoft. Mapping functionalities of ERP applications against your business requirements, Wipro professionals provide consulting, implementation, upgrades, application management and SOA services across these domains, Financial Management Human Capital Management Financial Management Wipros financial management expertise helps companies transform their finance functions, provides simple solutions to complex issues, and enables organizations to manage risks, reduce costs and improve business insights. y Forecasting and Budgeting Wipro helps organizations enable enterprise wide planning, use integrated applications to perform forecasting and budgeting functions and align them with their business strategies. y Accelerating Post Merger and Acquisition IT Integration Wipro offers solutions for rapid integration of the acquired company's ERP applications with the parent company. We help streamlining and facilitating the merger process with fast and economical integration of business processes and IT systems. y Financial Reporting and Analysis We offer a specialized business solution for Financial Process Re-engineering focusing on Chart of Accounts redesign, Financial Shared Services Assessment and Financial Close Cycle Optimization. Our solution will help customers achieve 20~25% cost reduction and reduce the close cycle from 7~5 days. y Governance and Compliance Our experience in global implementations has necessitated the streamlining of processes that are compliant with the legal regulations. Using a country specific compliance kit, we offer the advantage of making the processes legally compliant with the laws of that geography. y Risk Management Wipro provides Risk Management solutions to achieve high financial returns and smooth business performance by helping your business assess different risks and opportunities in various operations of the organization. y Accounts Receivable and Dispute Management Process Wipro offers deployment of Dispute Management components that integrate with the Accounts Receivable function. It helps large organizations face the big challenge of effectively monitoring the disputes and track to closure, resulting in the saving of administrative cost. y Accounts Payable Process Our functional process knowledge helps organizations get rid of challenges they face in Accounts Payable functions in an industry. We help businesses across industries to bring all

processes performed in silos to one platform, from the invoice receipt process to the verification and payment. This brings about savings in both time and administrative cost, by reducing payment cycle time. Human Capital Management Wipro offers services using web-based technologies for automating processes like employee administration, payroll, benefits and training. We act as a catalyst for improvement to those who seek to move HR to a more strategic position within their organization, keeping a check on Human Capital cost. Over the years, the following HR process areas have been improved and automated for various clients using Oracle, PeopleSoft and SAP applications. y Recruitment and Workforce Administration Our solutions help organizations in automated matching and screening processes, at a reduced cost and reduced time. We help optimize resource utilization and strategize to balance the resource demand and supply to meet organizational requirements. Our services have resulted in efficient administration of valued workforce, reducing manual work and hence making HR operations effective and efficient. y Talent Development, Learning and Performance Management Our integrated Talent Development engagements have helped our customers efficiently manage various training initiatives and effectively meet their employees career development needs. Our solutions focus on streamlining the performance management process and help standardize employee assessment, and monitor compensation benchmarks. y Compensation Management, Benefits Admin and Payroll Our extensive functional experience in designing and implementing processes related to salary, bonus, incentive compensation, separation or retirement compensation and benefit processes, etc. helps our global customers achieve accurate and timely completion of these processes. y Employee Empowerment Our solutions offer self-service functionalities to empower employees to perform various activities themselves and ensures efficient employee transactions, thus improving overall HR operations. y Absence and Time Management Industries with large workforce and global reach achieve high efficiency through automated absence and time management solutions.

4. An examination of core values(LO4)


WIPRO CORE VALUES

Human Values
We respect Customers as individuals, recognise that they have different needs and continually strive towards satisfying those needs to improve the quality of their lives.

Integrity

Our individual and business relationships are governed by the highest standards of Integrity.

Innovative Solutions
We constantly research and develop superior Products and Services that meet the ever changing needs of Customers.

Value for Money


We promise to serve Customers with continuous improvement in quality, cost and delivery of our Products and Services.

Alliances ARM In 1999, Wipro became the second ARM-approved third party design center in the ARM ATAPTM technology access program. The ATAP agreement enables us to utilize ARM technology in the design of complex ARM processor based System-on-Chips, for customers who exist or potential ARM licensees. Leveraging on our extensive intellectual property (IP) portfolio, systems knowledge and experience with ARM cores and technology, we target specific vertical markets with System-on-Chip solutions that meet a superset of application needs. These are predominantly low-power, high performing, consumer application devices for the mobile and Internet world. www.arm.com

AUTOSAR WIPRO is a ASSOCIATE member of AUTOSAR (Automotive Open System Architecture) Consortium and contributing to Work Package development. In addition working with OEMs and Tier-1 companies for AUTOSAR based solutions. www.autosar.org

CONTINUA HEALTH ALLIANCE Wipro is a contributing member of the Continua Health Alliance for interoperability of medical devices. Wipro is a part of the Technical and Testing workgroups. Wipro has developed readyto-demo components based on Continuas x73 protocol stack specifications. www.continuaalliance.org

GENIVI Wipro is a core member of the GENIVI alliance and plans to contribute to some of the work packages being developed.

www.genivi.org GSA Wipro is a member of GSA. GSA has made a significant impact on the industry since inception in 1994, playing a vital role with the emergence and worldwide adoption of the fabless business model. Today, we continue our efforts with initiatives and focus to ensure the growth and profitability of the semiconductor industry. GSA's mission is to accelerate the growth and increase the return on invested capital of the global semiconductor industry by fostering a more effective fabless ecosystem through collaboration, integration and innovation. Members include companies throughout the supply chain representing 25 countries across the globe. www.gsaglobal.org

INTEL COMMUNICATIONS ALLIANCE Wipro is an Associate Member of the Intel Communications Alliance. The Intel Communications Alliance is a community of communications and embedded developers and solutions providers committed to the development of modular, standards-based solutions on Intel technologies. For more info on ICA. Wipro has been chosen by Intel for distribution, development and support of Windows CE based BSPs on a select number of Intel platforms.

MICROSOFT & WINDOWS EMBEDDED GOLD LEVEL PARTNERSHIP: Microsoft is the worldwide leader in software for personal computers. Wipro designs and develop solutions for embedded systems, based on Windows platforms and we are members of the Microsoft Windows Embedded Partner program (WEP). The WEP was designed to provide a wide range of benefits to partner companies using the Microsoft Windows Embedded Family of products. The intent of the program is to enable WEP partners to bring their Windows Powered products to market faster. "Microsoft, Windows, and the Windows CE Logo are registered trademarks of Microsoft Corporation in the United States and/or other countries" Wipro is a Gold-level Microsoft Windows Embedded Partner (WEP) as a System Integrator and Independent Software Vendor. The Gold-level status is a reflection of Wipros strength and expertise as a Windows CE and XP Embedded developer, and its excellence in building and enabling Windows-powered solutions. Microsoft recognizes Wipro's leadership position in this space and also its role in contributing to and participation in design wins on the Windows Embedded platform.

MONOTYPE IMAGING INC. Wipro has partnered with Monotype Imaging to bring high-quality, multilingual font solutions to devices such as digital televisions and in-car systems. Monotype Imaging is a leading global provider of text imaging solutions that enable the display and printing of high-quality text. Proprietary technologies are combined with access to more than 10,000 fonts in the Monotype, Linotype and ITC collections. Monotype Imaging offers solutions to support industry standards such as the ARIB specification for Japanese digital broadcast industries. Wipro has integrated Monotype Imaging fonts and font technologies into its Integrated Services Digital Broadcasting - Terrestrial (ISDB-T) middleware, a solution for developing digital television and automotive infotainment devices sold in Japan. www.monotypeimaging.com

NVIDIA Wipro has entered into partnership with NVIDIA (www.nvidia.com ) to provide the CUDA programming services to our Global customers in Oil and Gas, Financial Services, Pharma, Medical and Industrial Automation domain. NVIDIAs Tesla GPU computing solutions provide the unprecedented performance for many demanding applications such as seismic data processing, financial modeling, image processing. Wipros CUDA center of excellence provides the profiling, benchmarking, performance engineering and consulting services around nVIDIAs GPU computing platforms.

www.nvidia.com

OMAP The Texas Instruments OMAP platform is an optimal application processor for designers working with devices that require embedded applications processing in a connected environment such as mobile phones, PDAs, portable devices, internet appliances, web pads, telematics and medical devices etc. As an OTC, Wipro offers design consultancy for OMAP based products, base porting services, driver development, applications development, development and provisioning of algorithms on DSP, integration and testing services for OMAP family of processors based products, across operating systems like Symbian, Linux, Windows Mobile and wireless standards. Apart from services Wipro has licensable applications and design solutions on OMAP as well. Wipro also provides Technical incubation support and near site design service for OMAP based development out of Wipros Kiel Development Center in Germany.

TENSILICA Tensilica is known as the leader and major innovator in configurable processor technology, with multiple patents on its easy-to-use automated processor design systems. Tensilicas processors are the engines in system-on-chip (SOC) designs. Tensilica solutions allow designers to create lower power, higher performance hardware and software for their chip designs with their two main product lines: the configurable Xtensa processors and the Diamond Standard processors. Wipro is a Tensilica Authorized Design Center with extensive knowledge on the Xtensa architecture and Diamond processors, configuration and software development tool suite, access to technology updates, on-going support and direct access to applications engineering support personnel. www.tensilica.com/partners/soc_wipro.htm

TESSOLVE The Tessolve and Wipro alliance mission is to provide infrastructure for semiconductor product

companies in Test, Product and Manufacturing Engineering services to succeed in bringing their product to market in the shortest time and lowest cost. With Wipro's VLSI and System Design expertise and deep understanding of varied application domains combined with Tessolve's test infrastructure and product engineering expertise, we hope to provide a solution that drives synergy between design and test activities in order to deliver our customers' products to production in the shortest possible time. www.tessolve.com

TEXAS INSTRUMENTS Wipro is a member of TI's Elite Design House Network. The TI Elite Design House Network is a premier group of independent, well-established companies that offer system-level design services and products for industrial, consumer, medical, aerospace/military, telecommunications, computing, and other markets. Network members may provide design feasibility, research, complete system/product design, hardware/software system integration, prototyping, manufacturing, and product life-cycle management services to a worldwide customer base to accelerate product innovation and time to market. http://focus.ti.com/general/docs/gencontent.tsp?contentId=54256

Partnerships with Foundries and Library Vendors: ALTERA Wipro is a CDC (Certified Design Center) of Altera. As a CDC, Wipro is Altera's premier design services partner. Wipro has expertise in designing Altera solutions and have Altera-certified design engineers on our staff. Altera Corporation is the pioneer of programmable logic solutions offering FPGAs, CPLDs, and HardCopy ASICs in combination with software tools, intellectual property, and customer support to provide high-value programmable solutions to over 13,000 customers worldwide. Altera was founded in 1983 and has annual revenues in 2008 of US$1.37 billion. Altera is headquartered in San Jose, California, and employs approximately 2,700 people in 19 countries.

SMIC SMIC is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) foundry and technology services at 0.35um to 45nm. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a 200mm fab under

construction in Shenzhen, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. www.smics.com

TSMC Wipro is a TSMC Design Center Alliance member and has had a close partnership with TSMC. TSMC is the world's largest dedicated semiconductor foundry. The company's manufacturing capacity exceeds 8 million 8-inch equivalent wafers in 2007, while its revenues represent some 50% of the dedicated foundry segment in the semiconductor industry. As the first dedicated foundry, TSMC has consistently experienced strong growth by building solid partnerships with its customers, large and small. TSMC operates two advanced 300mm wafer fabs, four 8-inch wafer fabs, and one 6-inch wafer fab. Fab operations are centralized in Taiwan, primarily in the Hsinchu Science Park and the Tainan Science Park. TSMC fabs are also located in Camas, Washington (WaferTech), Singapore (SSMC, a joint venture with NXP Semiconductors), and Shanghai, China. TSMC's headquarters is located in the Hsinchu Science Park, with account management and engineering service offices in China, India, Japan, Korea, the Netherlands, Taiwan and the United States.

UMC UMC is a world-leading semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. The Company's leadingedge foundry technologies enable the creation of faster and more powerful System-on-Chip ICs for today's demanding applications. UMC's technology includes a wide range of advanced processes, such as 65-nanometer, 45/40-nanometer, embedded memories, and Mixed-Signal/RF CMOS. With sales and customer service offices in Taiwan, Japan, Singapore, Europe, and the United States, UMC has an extensive service network to meet the needs of its global clientele. www.umc.com

XILINX Xilinx is the world's leading provider of programmable platforms, with more than 50 percent market share in the programmable logic device (PLD) segment of the semiconductor industry (Source: iSuppli Corp.). Xilinx has a worldwide ecosystem of qualified companies through the Xilinx Alliance Program to help mutual customers develop their products faster and with confidence on Targeted Design Platforms. Alliance Member companies include FPGA IP providers, EDA vendors, embedded software providers, system integrators, and hardware suppliers. Wipro is a Certified Member of the Xilinx Alliance Program and has demonstrated qualified expertise on the latest Xilinx devices and implementation techniques on Xilinx programmable platforms. As a Certified Member, Wipro has gone through a stringent certification process to ensure that our products and services are optimized to streamline customer product development cycles while minimizing risk. For more information on Xilinx, please go to www.xilinx.com or contact your local representative.

5. The development of a schedule for implementation of the plan(LO5) and


Six Sigma at Wipro Technologies: Thrust on Quality - Document Transcript

1. Case study On Six Sigma at Wipro Technologies: Thrust on Quality Authors Dr. Manisha Sharma Email:msharma@jimnoida.ac.in Mobile:0-9871134125 Dr. Kapil Pandla Email:kpandla@jimnoida.ac.in Mobile:0-9999442275 Prof. Prashant Gupta Email:pgupta@jimnoida.ac.in Mobile:0-9818580158 Jaipuria Institute of Management A-32 A, Sector 62 Noida 201 301 Tel.: (0120) 2403850-55 1

2. Abstract: Six Sigma at Wipro Technologies: Thrust on Quality 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 Level 5 certified software services 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 provides the tools for continuous improvement on existing processes thereby helping sustain the SEI-CMM Level 5 and CMMi certifications. This case focuses on the initiatives taken by Wipro Technologies to implement the Six Sigma Quality tool to achieve sustained strategic business results. It explores the implementation procedure at Wipro Technologies and the benefits reaped by the company on account of adopting Six Sigma. The case also throws light on the recent developments in the Six Sigma concept including Wipros Six Sigma Skill base and consulting experience and explains how the company intends to build its expertise and experience to bring continuous process improvement to the organization. 2 3. Six Sigma at Wipro Technologies: Thrust on Quality Backdrop 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. Today, Wipro Technologies has become a global service provider delivering technology- driven business solutions that meet the strategic objectives of clients. Wipro has 40+ Centers of Excellence that create solutions related to specific needs of Industries. Wipro can boast of delivering unmatched business value to customers through a combination of process excellence quality frameworks and service delivery innovation. 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. Prepared by Dr. Manisha Sharma, Dr. Kapil Pandla and Prof. Prashant Gupta of Jaipuria Institute of Management, Noida . This case is prepared solely for the basis of class discussion. Cases are not designed to present illustrations of either correct or incorrect handling of administrative problems 3 4. Integrating Six Sigma concepts was also intended to bring rigor in effective upstream processes of the software development life cycle. Implementation of Six Sigma methodologies brought in quantitative understanding, cost savings, and performance improvement towards product quality. Some of the key challenges involved were: y Reduce the data transfer time y Reduce the risk y Avoid interruption due to LAN/WAN

downtime. y 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%. For ex. For every million articles of mail, the difference is between 66,738 lost items and 3.4 lost items (Exhibit 1). 4 5. To achieve Six Sigma Quality, a process must produce no more that 3.4 defects per million opportunities. An opportunity is defined as a chance for nonconformance, or not meeting the required specifications. This means one needs to be nearly flawless in executing key processes. The process and culture is conditioned for zero defects rather than being one that accepts that it is inevitable, and acceptable, that mistakes will occur. Hence Six Sigma delivers substantial cost reductions, enhanced efficiencies, sustainable improvements and increased stakeholder value. Evolution of Six Sigma at Wipro Wipro is the first Indian company to adopt Six Sigma. Today, Wipro has one of the most mature Six Sigma programs in the industry ensuring that 91% of the projects are completed on schedule, mush above the industry average of 55%. As the pioneers of Six Sigma in India, Wipro has already put around ten years into process improvement through Six Sigma. Along the way, it has scaled Six Sigma ladder, while helping to roll out over 1000 projects. The Six Sigma program spreads right across verticals and impacts multiple areas such as project management, market development and resource utilization. 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: (i) Have products and services meet global benchmarks (ii) Ensure robust processes within the organization (iii) Consistently meet and exceed customer expectations (iv) Make Quality a culture within. 5 6. Difficulties encountered by Wipro and learning from them: Build the Culture: Implementation of Six Sigma required support from the higher level managers. It meant restructuring of the organization to provide the infrastructure, training and the confidence in the process. Wipro had to build this culture and that took time in implementation. 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: It was difficult to identify resources that required for short-term basis and long-term basis as it varied from project to project. Wipro did it on the basis of seriousness and importance of the project. Project Reviews: As timely reviews play a very crucial role to judge the success of a project. Wipro had to develop a team of experts for this purpose. The task assigned was to see the timeliness, find out gap, week areas and to check the outcome as per the plan. 6 7. Implementation of Six Sigma at Wipro 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 impacts the business significantly. Wipro has evolved following Six Sigma methodologies (Exhibit 2): (I) For developing new processes: (i) DSSS+ Methodology Wipro employs DSSS 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. (ii) DSSP Methodology used for designing new processes and products (iii) DCAM Methodology used for designing for customer satisfaction and manufacturability (II) For Improving Existing Processes (i) TQSS Methodology used for defect reduction in Transactional processes. (ii) DMAIC Methodology -used for process improvement in Non-transactional process (III) For Reengineering CFPM Methodology - used for cross functional Process mapping. The list of players at Wipro is as below: y Executive Management y Six Sigma Champions and Deployment Leaders y Financial Executives y Black Belts y Green Belts y Yellow Belts 7 8. Six Sigma projects at Wipro are (Exhibit 3): (i) Driven by business heads, also called Champions for the projects. (ii) Led by Green Belts (GB) Assisted by Black Belts (BB) The Management of the project at Wipro follows the following tools for implementation of Six Sigma: y Ideation y Definition y Selection y Tracking y Reporting Currently 15000+ employees are trained in Six Sigma methodologies. Wipro has also built up a Six Sigma skill base of over 180 certified black belts while helping to roll out over a 1000 projects. (Exhibit 4). 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. 8 9. Wipro provides consulting in institutionalizing an organization wide Six Sigma program that specializes in implementation across IT development, production support and core business operations Wipro offers the following Six Sigma consulting services (Exhibit 5): y Six Sigma institutionalization y Problem solving using six Sigma y Six Sigma training

Reaping the Benefits: The financial gain that Wipro has achieved by using Six Sigma has been one of the high points. (Exhibit 6) As the Six Sigma initiative started maturing Wipro identified two major phenomenon: y The biggest projects had all been completed y The Yellow-belt culture had cured little problems before they became big ones. At this point, the project-oriented Six Sigma culture began to give way to the sustaining culture. 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. The set target was 200%. 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: 9 10. y Improving performance through a precise quantitative understanding of the customers requirements thereby bringing in customer focus y 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%). y Waste elimination and increased productivity up to 35%. y Cost of failure avoidance (installation failures down from 4.5% to 1% in hardware business). y Tangible cost savings due to lower application development cost for customer. Analysts remarked that Six Sigma was an indisputable success at Wipro whether in terms of customer satisfaction, improvement in internal performance, or in the improvement of shareowner value. The results of achieving Six Sigma are rapid and overwhelming at Wipro Its unique methodology provides Six Sigma knowledge and skills to the client, enabling the client to create ownership, generate results and sustain success. The maturity of Wipros quality processes takes the benefits to another level, ensuring that the customers benefit from: y 30-40% lower total cost of ownership y 20-30% higher productivity y On-time deliveries (93% projects completed on time) y Lower field defect rates (67% lower than industry average). The performance enhancement enabled the client to have an improved product with the overriding benefit that the end customer perception of the quality of the clients product is improved. 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 10 11. 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. To

summarize, the quality system will continue to be based on incremental optimization, with rigorous implementation and sustenance of the same. The goal will be to make quality as the No.1 objective for all employees. References: Gygi, Craig, DeCarlo, Neil, Williams Bruce & Covey Stephen; Six Sigma for Dummies, Willey Dreamtech India Wipro-Annual Report, 2002-2006 ExpressComputer, Sept.2002 V. Subramanyam, Sambuddha Deb, Priya Krishnaswamy, Ritupama Ghosh An Integrated Approach to Software Process Improvement at Wipro Technologies:Veloci Q Websites: www.isixsigma.com www.wipro.com 11 12. Exhibits: Exhibit1: Exhibit 2: Six Sigma Methodologies: Six Sigma Developing New Processes Improving Existing Processes Reengineering DSSS+ DSSP DCAM DMAIC TQSS CFP DSSS+ (Developing Six Sigma Software) - Software Development DSSP (Designing Six Sigma Process & Product) Software Development DCAM (Design for Customer Satisfaction and Manufacturability)-Hardware design & Manufacture DMAIC (Define, Measure, Analyze, Improve, Control) - Helpdesk, Infra support, Call centre TQSS (Transactional Quality Using Six sigma)- defect reduction CFPM (Cross Functional Process Mapping) - Cross functional streamlining of process 12 13. Exhibit 3: Green Belts (GB)- trained in Six Sigma who spend a portion of their time completing projects, but maintain their regular work role and responsibilities. Depending on their workload, they can spend anywhere from 10% to 50% of their time on their project(s). Black Belts (BB) - the experts in Six Sigma methodologies and its usage. Black Belts are the heart and soul of the Six Sigma quality initiative. Their main purpose is to lead quality projects and work full time until they are complete. Black Belts can typically complete four to six projects per year with savings of approximately $230,000 per year. Champions: Facilitate the leadership, implementation and deployment of Six Sigma philosophy Exhibit 4: Resources invested in Six Sigma Black Belts Projects 200 180 1200 180 1000 160 140 121 800 120 557 100 600 72 80 400 292 60 40 40 26 143 13 200 80 83 20 0 0 97-98 98-99 99-00 00-01 2001-2002 2006-2007 97-98 98-99 99-00 0001 2001-2002 2005-2006 13 14. Exhibit 5: Six sigma institutionalization: Here the Wipro consultants work with the senior management of the client team in identifying pain areas and critical business processes. The Wipro consultants then create a program of implementing six sigma throughout the organization; creates six sigma teams; provides the necessary training to the green belts and black belts; identifies projects to be run; helps manage change; and identifies the benefits Problem solving using six sigma : Here Wipros consultants work with the process action team at the client organization to identify the problem areas, determine the root causes of problems and establish necessary recommendations for corrective/preventive actions Six sigma training : Wipro provides training on various 6 sigma methodologies (DMAIC/DMADV/DSSS+) and statistical tools (Control charts/QFD/ etc), use of Minitab etc. Exhibit 6: Six Sigma and Financial Gains: Savings (Rs. Million) 1400 1200 1000 800 652 600 315 400 192 200 48 0 97-98 98-99 99-00 0001 2001-2002 2005-2006 . Key Words: Zero defects, Nonconformance, Project Management, Resource Utilization, Quality Management 14 15. Teaching Note Synopsis of the Case: The Case on Six Sigma at Wipro deals with the evolution of Six Sigma, talks of its implementation and gives an understanding of Consultancy in Six Sigma. It also raises the future challenges. By studying this case the students will be versed with thorough understanding of Six Sigma. Research behind the

case: The case is based on the Secondary research. However to write this case a thorough understanding of Six Sigma was a prerequisite. The authors read many books to get a glimpse of Six Sigma and visited most of the available information of Six Sigma at Internet. Referred many journals. The detail of which has been provided as references. Suggested Course Level: Graduate /Post Graduate Programme Suggested Course: Quantitative Techniques Guide Questions: 1. What led Wipro to implement Six Sigma Programme without a proper strategy. Ans: The demand in the Industry led Wipro to implement Six Sigma although it was not a well though out plan. It took Wipro few years in reaping the benefits. Even without a specified strategy Wipro stepped the ladders very cautiously. They trained their employees first, implemented in a few projects. Motivated by success they spread it in almost all the projects taken up by Wipro. 2. What is the objective of Wipro in providing Six sigma Consultancy Ans: Wipro being the pioneer in India in implementing Six Sigma has trained and experienced consultants in the field. Leveraging on home grown expertise from Wipros own Quality journey, a team of over 350 consultants provide world class consulting in the area. Over 70 satisfied customers globally, across various domains with tangible, measurable results speak of the success of the process improvement efforts. That gives its customers a confidence in the Six Sigma process at Wipro Wipro provides stand-alone training on various customized modules to aspiring Six Sigma Black Belts, Green Belts and Six Sigma Champions. Extensive handson training is also provided on advanced statistical tools and on the statistical software Minitab, the core of any Six Sigma learning. Train-the-trainer methodology is adopted to create new team members who can focus on continuous improvement this gradually helps in the consultant disengaging from the overall initiative. 3. The Competition is huge, the challenges are many. Wipro hasnt still come up with a proper planning to face the challenges and overcome. Ans: Some of the key challenges involved in implementation are y Reduce the data transfer time 15 16. y Reduce the risk y Avoid interruption due to LAN/WAN downtime y Parallel availability of the switch for other administrative tasks during the same period. y In spite of more than 10 years of implementation, Wipro still has to advance the methodologies. y Wipro needs to adopt a systematic approach to analyze the data and increase the usage of statistical analysis software. y Operation downtime can be reduced by reducing data transfer duration, risk of the operation being interrupted by LAN/WAN downtime will automatically reduced. The switch availability. The switch availability will also increased as the data transfer time is reduced. y Apart from this, there is a challenge to train all the employees in Six Sigma and implement it in all the projects, also to focus on the new innovative methodologies in the field. y The performance enhancement will enable the client to have an improved product with the overriding benefit that the end customer perception of the quality of the clients product is improved. 4. What are the other business benefits apart from the profit? Ans: y Enhanced collaboration and resource sharing across global locations. y Centralized management and fewer management entities. y Continued access to network resources even during link failures with a revised authentication approach (Each benefit can be discussed in detail during discussion). Suggested Teaching Plan: The case can be discussed in a class of 1 hour 30 min. The case will be discussed after Six Sigma has been taught to students as this case will show the practical aspect of Six Sigma to the students. The following issues can be raised: y Six Sigma vs. TQM y The Cost vs. benefits in implementing Six Sigma y The time delay in

reaping the benefits y Lack of awareness or inhibition on the part of companies in implementing it.