Wipro Technologies' implementation of Six Sigma for quality improvement

Wipro Technologies and Six Sigma

Wipro Technologies is a successful global services provider that primarily delivers the technology and relative mechanism to those companies that are IT-oriented and use IT as the primary mode for satisfying their clientele. Wipro has 40 'Centres of Excellence' that induce solutions around specified requirements of the producers and manufacturers. Wipro provides unmatched business value to clients through a mix of development excellence, quality structures and repair delivery innovation. Wipro may be the World's first CMMi Level 5 licensed software organization and also the first outdoors American company that was able to get the IEEE Software Process Award for its performance and services (Sharma et al., 2008).

Wipro has probably the most advanced and intricate Six Sigma structures in the market making certain that 91% from the projects are finished in a timely manner, which is a much higher percentage than the approximate completion rates of the industry which is at 55%. Six Sigma offers the tools for continuous step up from existing processes therefore helping maintain the SEI-CMM Level 5 and CMMi certifications (Sharma et al., 2008).

This situation concentrates on the steps applied by Wipro Technologies to employ the Six Sigma Quality mechanism to attain sustained proper business performances. It studies the implementation process at Wipro Technologies and also the benefits gained by the organization due to implementing Six Sigma (Sharma et al., 2008).

The situation also throws light around the recent developments within the Six Sigma theory inclusive of Wipro's Six Sigma Skill base and consulting knowledge and describes how the organization expects to construct its experience and expertise - to create continuous process improvement towards the organization (Sharma et al., 2008).

Backdrop

Wipro Limited was formed in the year 1945 and commenced its procedures in 1946 initially as vegetable oil organization. In early eighties, Wipro varied its services and expanded in to the IT sector with the expansion and freedom of expansion that India was experiencing within the eighties. This is a fascinating transformation from the vegetable oil company right into a global IT services titan (Sharma et al., 2008).

As it stands now, Wipro Technologies has turned into a global company providing technology oriented business solutions that satisfy the proper objectives of clients. Wipro has 40 'Centers of Excellence' that induce solutions associated with specific needs of Industries. Wipro can feature the provision of unmatched business value to clients through a mix of process excellence quality frameworks and repair delivery innovation (Sharma et al., 2008).

A powerful emphasis upon creating a professional work atmosphere, leaders from inside, and getting a worldwide outlook for business and growth have brought the company towards innovation of individual processes on the ongoing basis. Through the years, Wipro has considerably increased its competency oriented people procedures and shown innovative practices in talent acquirement, operation, and growth, according to proper needs (Sharma et al., 2008).

A number one provider of communication systems in the United States needed improvement within the product performance of the telecom application using Six Sigma methods. Thus, using the growing importance on aiming business procedures with customer needs and driving continuous improvement, Wipro started moving towards concentrating on Quality, therefore, developing a learning atmosphere that brought forward the implementation of Six Sigma (Sharma et al., 2008).

What's Six Sigma?

The term is really a record term that measures the extent of deviation in a procedure from the degree of perfection. Six Sigma is known as following the procedure that has six standard diversions on both sides from the specs window. It's a disciplined, data-driven approach and methodology for getting rid of defects (Keller, 2001). The central idea behind Six Sigma is when you are able to measure the number of "defects" you have inside a process, you are able to methodically learn how to get rid of them and obtain as near to "zero defects" as you possibly can ()Adams, et al., 2003.

Six Sigma begins with the use of record techniques for converting information from clients into specifications for items or services being developed or created. Six Sigma may be the business plan that makes one work smarter as opposed to harder (De Feo et al., 2005). One sigma provides a precision result of 68.27% while two sigma provides a precision result of 95.45% and three sigma provides a precision result of 99.73% - compared to all of these Six Sigma provides a precision result of 99.9997% Although 99.73% sounds excellent, it gradually dawned on firms that there's a significant distinction between 99.73% and 99.9997%. To explain this, for each million articles of mail (Pande, et al., 2001), the main difference is between 66,738 lost products and 3.4 lost products (see Exhibit 1 taken from Sharma et al., 2008).

To attain Six Sigma Quality, a procedure must produce about 3.4 defects for every million possibilities. A chance is understood to be a way for nonconformance, or otherwise meeting the needed specifications. What this means is one should be nearly perfect in performing key processes. The procedure and culture is conditioned for zero defects instead of being one which accepts that it's inevitable and acceptable, that mistakes will surface. Thus Six Sigma provides substantial cost cutbacks, enhanced efficiencies, sustainable enhancements and elevated stakeholder value (Pyzdek et al., 2009).

Implementation of Six Sigma at Wipro

Wipro has adopted the project method for Six Sigma, where projects are recognized based on the issue areas under each one of the critical Business Processes that negatively impacts the company considerably (Tennant, 2001). Wipro has developed following Six Sigma methods (see Exhibit 2):

(I) For developing new processes:

a. DSSS Methodology -Wipro utilizes DSSS methodology for software structuring. The methodology employs vigorous preocedural metrics and cause assessments through the software development lifecycle for defect free shipping minimizing customer price of database integration.

b. DSSP Methodology - employed for creating new processes and items

c. DCAM Methodology - employed for creating for client satisfaction and productivity

(II) For Enhancing Existing Processes

a. TQSS Methodology -employed for defect decrease in Transactional procedures.

b. DMAIC Methodology -employed for process enhancements in Non-transactional procedures

(III) For Reengineering

a. CFPM Methodology - employed for mix functional Process mapping (Sharma et al., 2008).

The email list of gamers at Wipro includes:

Executive Management

Six Sigma Champions and Deployment Leaders

Financial Professionals

Black Devices

Eco-friendly Devices

Yellow Devices

Six Sigma ventures at Wipro include (see Exhibit 3):

(i) Driven by business heads, also known as Champions for that projects.

(ii) Brought by Eco-friendly Devices (GB)

(iii) Aided by Black Devices (BB)

The Control over the project at Wipro follows the next tools for implementation of Six Sigma:

Ideation

Definition

Selection

Monitoring

Confirming

Presently 15000 workers are been trained in Six Sigma methods. Wipro has additionally developed a Six Sigma skill base well over 180 licensed black devices while assisting to unveil on the 1000 projects. (see Exhibit 4) (Sharma et al., 2008).

Six Sigma Working as a consultant at Wipro:

Wipro's Six Sigma consulting experience has peaked using the indigenous growth and development of new methods that it requires for the clients. As Wipro gorws to encompass the Six Sigma consulting journey, it develops its experience and expertise- to supply enterprise-class spectrum of subjects running a business process administration and knowledge technology systems integration. The main focus is on following the project requirements and ensuring that these are integrated along with other techniques to aid process needs. Presently you will find over 200 PMI licensed consultants at Wipro (Wipro, 2002-6).

The Wipro quality consulting group trains in experiencing this precision of Six Sigma with Wipro's own methods, training abilities and global experience. Wipro will help with institutionalizing Six Sigma over the organization for transformation.

Wipro provides consulting in institutionalizing a business wide Six Sigma program that is an expert in applying structures across various IT enhancement, growth, manufacturing and support as well as integral business procedures.

Wipro provides the following Six Sigma consulting services (see Exhibit 5):

• Six Sigma institutionalization

• Problem fixing using six Sigma

• Six Sigma training (Sharma et al., 2008)

Enjoying the advantages:

The profit that Wipro has accomplished by utilizing Six Sigma continues to be among the high points (see Exhibit 6).

Because the Six Sigma initiative began ageing Wipro recognized two major phenomena in its decline:

• The greatest projects had all been finished

• The Yellow-belt culture had healed little issues before they grew to become large ones.

At this time, the project-based Six Sigma culture started to provide methods to the sustenance of cultures (Wirpro, 2002-6).

The Six Sigma process led to an achievement of near to 250%, 6 minutes for 1 Megabytes transfer and 18 minutes for average bandwith. The standard aim here was 200%. Because the performance is primarily client based, the goal of Six Sigma Implementation at Wipro has continuously been in integrating and applying approaches via a synchronised concentration on decreasing defects, timeliness, and productivity. It has also been modified to include the reduction of maintenance costs, schedule-overrun expenses as well as the development expenses for clients. Dimensions and progress indications happen to be oriented towards exactly what the clients believe to be significant and worthy of purchase (Sharma et al., 2008). Towards this particular aspect, Six Sigma concepts have performed a huge role in:

Enhancing performance via a precise quantitative knowledge of the customer's needs therefore getting in customer focus

Enhancing the effectiveness in upstream processes from the software development existence cycle by decreasing the overall defects (these were recorded to be at a total of 50%) and cycle time reduction (this recorded a decrease to 5% from the previous average of 12%).

Waste elimination and elevated productivity as much as 35%.

Price of failure avoidance (installation failures lowered from 4.5% to at least 1% in hardware business).

Tangible financial savings because of lower database integration cost for customer (Sharma et al., 2008).

Experts pointed out that Six Sigma was an indisputable success at Wipro irrespective of focusing on client satisfaction, enhancement in internal performance, or perhaps in the advance of shareowner value.

The outcomes of achieving Six Sigma are speedy and all-encompasisng at the Wipro procedures. Its methodology provides Six Sigma understanding and abilities towards the client, enabling the customer to produce possession, generate assessments and conclusion as well as maintain success. The advancement of Wipro's quality procedures takes the advantages one step further, making certain the clients take advantage of:

30-40% lower total price of possession

20-30% greater productivity

On-time shipping (93% projects completed promptly)

Lower area defect rates (67% less than industry average) (Sharma et al., 2008).

Future Focus and Challenges:

Six Sigma definitely leads to breakthrough developments. But to do this, Wipro will need to mix the energy from the Six Sigma structure and mechanisms with stretch aims, aims that just about appear too aggressive, too positive. Also Wipro will need to benchmark itself from the competition on the amount of performance accomplished by rivals. This focus will result in the adaptation of a more recent magnitude of the standard management structure needed for encompassing all the necessary procedures, employees, product, and technology for the attainment of premium process capacity (Stamatis, 2004).

Six Sigma ventures need constant alterations and adaptations. Black Devices and Eco-friendly devices develop enhancements to systems and procedures that they aren't accountable for. So when these participants are through with their project, they request the actual system or process owner to employ and maintain their solution and therefore the task before Wipro is based on getting the promise towards sustaining its process optimisation theory (Taylor, 2008).

The Task is to transform Six Sigma from the tool for enhancing product quality for an overall business improvement methodology. Their goal is going to be at getting 100% of their management been trained in Six Sigma.

In summary, the standard system will still be according to incremental optimisation, with rigorous implementation and maintenance of the identical processes. The aim is to make quality the No.1 objective for those employees.

Exhibit 1 (Sharma et al., 2008):

Exhibit 2 (Sharma et al., 2008):

Exhibit 3 (Sharma et al., 2008):

Eco-friendly Devices (GB) experts when been trained in Six Sigma spend some of the time finishing projects, but maintain speed and accuracy for regular work role and duties as well. Based on their workload, they are able to spend between 10% to 50% of time on their own project(s).

Black Devices (BB) professionals in Six Sigma methods and its usage serve as the life blood for the Six Sigma quality initiative. Their primary purpose would be to lead quality projects and work full-time until they're complete. Black Devices can typically complete 4 to 6 projects each year with savings of roughly $230,000 each year.

Champions primarily assist the administration, selection application and practical assessment of the necessary Six Sigma philosophy within the company structure

Exhibit 4: Assets committed to Six Sigma (Sharma et al., 2008)

Exhibit 5 (Sharma et al., 2008):

Six sigma institutionalization:

Here the Wipro consultants use the senior control over the customer team in determining discomfort areas and demanding business processes. The Wipro consultants then produce a program of applying Six Sigma across the structures of the organization. The produced six sigma teams offer the necessary training towards the eco-friendly devices and black devices, identify projects for use, assist in implementing change and identify the advantages of the procedure.

Problem fixing with the use of Six Sigma:

Here Wipro's consultants use the procedure action team in the client organization to recognize the issue areas, analyze and identify the main reasons for problems and recognize necessary strategies for corrective/preventive measures

Six sigma training:

Wipro provides training from experts on various 6 sigma methods (DMAIC/DMADV/DSSS ) and record tools (Control charts/QFD / etc.), utilization of Minitab etc.

Exhibit 6: Six Sigma and Financial Profits (Sharma et al., 2008)