Table of content Sl.

No 1 2 3 Description Aim and Objective of Assignment Executive Summary Lean Introduction What is Lean Fundamental Objectives of Lean Lean benefits Mission Statement Problem Statement XML Tagging Process Solution Suggested Improvement Targeted Muda 7 Waste Implementing MUDA for XML tags application process Lean Principles and Techniques Five Lean principles 5S Techniques Lean Implementation for XML tags application Deployment Process Flow for XML tags application Deployment Productivity Benefit PEST Analysis Value Chain Framework using Porters Value Chain as a template Conclusion References Page No. 2 3 4 4 4 5 7 8 8 8 9 10 11 12 13 13 16 17 18 19 20 22 24 28 29

6 7 8 9 10

Aim and Objective

Aim is to critically analyze the use of lean production and/or services in Genpact with reference to associated theories and practices. Evaluating the extent of effectiveness to which this approach has contributed in the deployment of Genpacts XML tags application process.

Executive Summary
Genpact is a global business process and technology management company with its culture being uniquely ingrained in Lean Six Sigma. It manages business processes for various companies around the world in the areas of Finance and Accounting, Customer Relationship Management, Procurement and Supply Chain, Banking, Insurance, Analytics, IT Infrastructure, Healthcare and Software services It was formerly owned by General Electric Company (GE) called GE Capital International Services or GECIS. The organization was originated to provide business process management capabilities to deliver outstanding efficiencies to all of GEs businesses. The company then became independent in January 2005, and in August 2007 was successfully listed on the NYSE under the trading symbol G. Currently, the Company manages over 3,000 processes for more than 400 clients worldwide and employs over 43,000 people around the world, in China, India, Philippines, Mexico, Guatemala, USA, Hungary, Romania, Spain, the Netherlands, Morocco, and South Africa.

Introduction
The core idea is to create more value for customers with fewer resources; it simply maximizes customer value while minimizing waste. A lean system understands customer value and focuses its key processes to continuously increase it. The target is to provide perfect value to the customer through a perfect value creation process that has minimal or no waste. To accomplish this, lean thinking changes the focus of management from optimising separate technologies, assets, and vertical departments to optimising the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers.

What is Lean
A principle driven, tool based philosophy that focuses on eliminating waste so that all activities/steps add value from the customers perspective

Fundamental Objectives of Lean

Value Added Activity Non Value Activity

 

What is Value Addition? Any activity that qualifies following 3 criteria: 1. There should be some form of change. 2. It should be done right the first time. 3. Customer should be ready to pay for it

How lean has been developed.

Total, Basic & Added work content TOTAL = BASIC + ADDED + IDLE TIME Basic work content is the irreducible minimum time of performance. It is hardly achievable. Added work content is time added due to either improper method or due to improper design of the product. Idle time is when the man & m/c are both inactive. It may happen due to workers or management both

Example:

The conventional way: Price = cost +Profit

The new way: Price - cost =Profit

Lean Benefits
Focuses on the removal of waste, which is any non-value adding element of the process

XML tags application Process Problem Statement

While developing GE Healthcare documents which were designed for multiple users like Invites, Newsletter and other letters etc for different Doctors and other Healthcare people. The problem came across was it was very time consuming and was having more scope of generating errors. Also the indesign documents were occupying large amount disk space.

Solution Suggested Investigation

Linked XML (.CSV) allows you to merge a data source file with a target document. You can use this tool to create form Invites, letters, envelopes, or mailing labels. Data Merge typically creates one page of publication for the chosen record; however you can use the Multiple Record Layout to gather more than information or records on a single page/file. Multiple Record Layout also gives you more flexibility in the document layout with the Content placement options. The data source file contains the information that varies in each iteration of the target document, such as the names and addresses of the recipients of a form letter. A data source file is made up of fields and records. Fields are groups of specific information, such as company names or postal codes, whereas records are rows of complete sets of information, such as a companys name, street address, city, state, and postal code. A data source file can be a comma-delimited file (.csv) or a tab-delimited (.txt) file in which each piece of data is separated by a comma or a tab, respectively. The target document is an InDesign document that contains the data-field placeholders, plus all the boilerplate material, text, and other items that remain the same in each iteration of the merged document. The data source typically originates from a spreadsheet or database application, but you can create your own data source file using InDesign or any text editor. Data source files should be saved in a comma-delimited (.csv) or tab-delimited (.txt) text format.

Once your data source file is created, you need to set up the target document and insert the fields from the data source file. The target document contains data-field placeholder text and graphics, such as the design that you want to appear on every postcard. These fields become available to add after you select a data source.

Solution
In-order-to come over the problem they have developed XML linked Target Document (.indd) in which a person only have to link the entire variable data like doctors name, the event name, venue, date etc. from a data source file (.csv) or a notepad .txt file. The (.csv) file gets linked with one master Target Document (.indd). Hence they need not to create multiple indesign files for multiple documents. The multiple pdfs get generated from only one single master Target Document (.indd) file which saves time, avoid errors and save disk space.

Improvement Targeted
Minimizing the development effort to a great extent for creating Documents with variable data with this technology. Since the process is an automated process hence avoids all probabilities of generating errors. Use of single master Target Document (.indd) file instead of multiple Indesign files saves a lot of disk space.

MUDA
One of the most effective ways to increase the profitability of any business is by waste elimination. Processes either add value or waste to the production of a good or service. The seven wastes were originated in Japan, where waste is known as muda." "The seven wastes" is a tool to further categorize muda and was originally developed by Toyotas Chief Engineer Taiichi Ohno as the core of the Toyota Production System, also known as Lean Manufacturing. To eliminate waste, it is important to understand exactly what waste is and where it exists. While products significantly differ between factories, the typical wastes found in manufacturing environments are quite similar. For each waste, there is a strategy to reduce or eliminate its effect on a company, thereby improving overall performance and quality.

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Most common form of muda found:

y

Waste from overproduction (People)

o

Which leads to large batches and excess inventory, paperwork, handling, storage, space, interest charges, machinery, defects, people and overhead. It is often difficult to see this waste as everyone seems busy. People may be watching machines work or waiting for parts or instructions. Mostly they are waiting for one another, which often happens because they have non-aligned objectives.

o y

Waste of time in waiting (People)

o o

Waste of motion (People)

o

This includes incorrect layouts of office or movement of people, from simple actions when in one place to geographic movement. Having everything to hand as it is needed reduces motion Muda.

Processing waste (Process)

o o

This includes longer processing times may be due to poor machine maintenance. Additional effort may be required in an inefficient process. Poor layouts lead to things being moved multiple times. If things are not well place, they can be hard to find. It can aggravate alignment of processes. Excess buffer stocks a whole host of sins, which will be uncovered by gradually lowering inventory (doing it all at once will cause total breakdown!). High stocks of raw material Defects cause rework, confusion and upset a synchronized set of processes. Long delays for trouble shooting Dissatisfied Customers

Transportation waste (Product)

o o o

Inventory waste (Product)

o

o y

Waste from defects (Product)

o o o

A simplified view of muda is:

y y y

Wasting time. Wasting a consumable resource, such as materials. Causing dissatisfaction (including incomplete satisfaction). 11

Implementing MUDA (Eliminating waste repetitive steps) XML tags application Process

Start

Start

Project Kick Off

Understanding Fields data needs to be incorporated

Time taken 30 minutes for 1 file to Update, Save and Publish

Project Kick Off

Understanding Fields data needs to be incorporated

Time taken 5 minutes for 1 file to Update, Save and Publish

Creating the Individual files for individual field data

Creation Single Master Target Document (.indd) Indesign file embedded XML tags

Copying data for each field from text file and paste to individual Indesign file at different places in the doc.

Creation Single Data Source (.csv) files having all the variable fields data to be called in master Indesign file.

Saving each Indesign file multiple times

Creating / Applying XML tags in Target Document Indesign and save the file

Publishing Pdf for each fie

Publish multiple Pdfs from single Target Document by using Data Merge window in .indd itself Stop No Repetition of creating multiple files for each data Stop

Repeating the process multiple times for multiple data

Customer delivery

Feedback

Customer Delivery 12

Feedback

Lean Principles and Techniques Five Lean Principles

1. Specify Value
A capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer. Specify value from the standpoint of the end customer  Ask how your current products/services and processes disappoint your customers value expectation:  Price? 13

   Waste:

Quality? Reliable delivery? Rapid response to changing needs?

 Activities that add no value, add cost and time  Need to find root causes and eliminate them  7 types of waste (explained above)

2. Map the Value Stream

Whenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it.  Identify all of the steps currently required to move products from order to delivery  Challenge every step: Why is this necessary? Would the customer think the product is worth less if this step could be left out?  Many steps are only necessary because of the way firms are organized and previous decisions about assets and technologies

Value stream
All activities, both value added and non-value added, required to bring a product (or provide a capability) from raw material (initialization) into the arm of the customer. 3 Main Value Streams: 1. Raw material to customer 2. Concept to launch 3. Order to cash

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3. Establish Flow
Line up all steps that truly create value in a rapid sequence  Continuous movement of products, services and information through the various transactions from end to end in the process  Require that every step in the process be:  Capable right every time  Available always able to run  Adequate with capacity to avoid bottlenecks and over capitalization (right-sized tools)

4. Implement Pull
Nothing is done downstream until required upstream  A system of cascading production and delivery instructions in which nothing is done by the upstream supplier until the downstream customer signals the need  Through lead time compression & correct value specification, let customers get exactly whats wanted exactly when its wanted:  At the pull of the customer/next process  Using signals (kanbans)

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5. Work to Perfection
A continual cycle of process improvements  There is always some waste  People learn and exercise more creativity  Involve employees in the process, training them as you proceed.  Continuous improvement leads to innovation  Use root cause analysis to solve problems promptly and permanently.  Make objectives visible

Continuous Improvement never stops

5 S Techniques
5S is basic technique for Lean implementation. It includes the following five concepts: Sort: Arrange and prioritize Simplify: Prevent problems from occurring Sweep: Clean up Standardize: Clearly define tasks Sustain: Ensure the habits are in place

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LEAN Implementation for XML tags application Deployment at GENPACT

For the deployment of XML tagging application process at Genpact, the way Lean is implemented (based on above described Lean Principles and 5S techniques) is displayed below. It revolves around two different approaches: Process Lean and Flow Lean.

Process Lean Involves value streaming the process and mapping it using the value stream mapping tool Aims at waste removal by elimination of any non-value add element in the process workflow Taps knowledge with associates Uses empowered teams to speed the execution

Flow Lean Involves use of the flow and pull method to bring the process to perfection Aims at creating pull with customer requirement Involves use of technology Uses Lean Six Sigma for complex problems

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XML tags application Deployment Process flow

Current Process

New Process (Post Lean)

Getting variable data for creating multiple docs. for multiple users.

Picking up the single Master Target Document Indesign file created just once.

Incorporating all variable data in to multiple Indesign files Linking the XML tags with data from .csv file/.txt file. Saving and Publishing multiple pdf files 5 Min

Repeating the process for each data field each time

Publish the multiple Pdfs with different field data using Data Merge window from single Target Document Indesign file.

Development effort reduced from 30minutes to 5minutes

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Productivity Benefit

Estimated Cost of deployment before use of Data merge and XML tags: Time taken to create one page/doc = 30mins Estimated Cost of deployment after use of Data merge and XML tags: Time taken to create one page/doc = 5 mins

FTE Price per hr: $25.33 Total Impact per doc 30mins 5mins = 25mins = 0.41hr Cost = FTE Cost per hr * 0.41 (per doc) Cost = $25.33 * 0.41 = $10.3853 (per doc) As per annual past experiences we receive approx 300 such docs in a year. Annual Cost Impact = Cost per doc * no. of doc (per year) = $10.3853 * 300 = $3115.59

Annual Impact is $3115.59

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PEST Analysis
Growth in business process outsourcing (BPO) continues to accelerate as the global economy regains momentum. For many companies like Genpact, the discussion is no longer about why or what they should outsource, but where. We have undertaken PEST Analysis (Political, Economic, Social and Technological) on the factors that are needed to be analyzed from the industrys external environment.

Political Factors
 Risk - Change in the government will result in business disruption, few criteria to examine: - Longevity and track record of the current government, has it been in place at least 5-10 years? Are elections impending? How is the government perceived locally, by neighboring countries, and by your country? What is the general level of confidence relative to the governments of other countries youre considering as outsourcing destinations?  Level of support that government provides to outsourcing.  How much investment has been made at the government level in telecommunications and IT infrastructure?  What plans are in the works or underway for further improvements? Does the government have a record of active participation in industry bodies and associations? Is there strong support for foreign investment?  Governments interactions with the workforce ease for workers to get needed permits and visas.

Economic
 Big money can be saved by outsourcing projects to a skilled labor force with relatively low cost.  Savings can turn into loss if taxes are high, if telecommunications and data networks are poor quality or unreliable  If new legislation is passed that imposes new fees and restrictions on your business activities.

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Social
 Evaluation of the cultural compatibility of any potential outsourcing destination  Is native language commonly spoken by both executive management and workers in new location?  Could civil unrest or religion related issues potentially impact your business  Need to rebuild confidence in BPO  Consumers are more demanding especially in terms of service quality

Technological
 Economies of scale in production due to expanding market size.  Reliability of the telecommunications and data networks in a prospective destination.  How to avoid unexpected failures in computer networks, satellite links, cell towers, power grids, and other infrastructure elements  Ability to assure business continuity in the event of equipment failures.

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Value Chain
To model or analyze a firm as a chain of value creating activities through which firms can create value and competitive advantage. The concept of the value chain is based on the process view of organisations, the idea of seeing a manufacturing (or service) organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. The functioning of value chain activities determines costs and affects profits. Genpact map the value chain within as-is processes to identify bottlenecks, establish sustained process visibility, and redistribute and optimize the inventory within the supply chain network. Genpact as a business engage itself in hundreds and thousands of activities in the process of converting inputs to outputs. These activities can be classified generally as either primary or support activities that all businesses must undertake in some form.

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According to Michael Porter , the primary activities are: 1. Inbound Logistics are all the activities required to receive, store, and disseminate inputs. 2. Operations are all the value creating activities that transform inputs into outputs (products and services). 3. Outbound Logistics are all the activities required to collect, store, and distribute the finished product (output). 4. Marketing and Sales are all the activities associated with getting buyers to purchase the product, inform buyers about products and services, facilitate their purchase, including channel section, advertising, pricing etc. 5. Service includes all the activities required to maintain and enhance the products value and ensure the service is working effectively for the buyer after it is sold and delivered. The primary value chain activities described above are facilitated by Secondary activities mentioned below: 1. Procurement - is the function of acquisition of inputs or resources used in the value creating activity for the firm. 2. Human Resource management - the activities associated with recruiting, training, development, and compensation (if necessary) of employees. 3. Technological Development includes research and development, process automation, and other technical knowledge and development brought to bear in the firm's transformation of inputs into outputs. 4. Infrastructure -it consists of functions or departments such as accounting, legal, finance, planning, management, etc.

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Framework to assist a newly employed first-line manager (using Porters value chain as a
template):
Attributes Processes Key Activities Types of Waste Danger Signal How to Respond to Danger Signal Inbound Logistics y Service Design
y Process Rey Poor Design y Poor Market y Customer y Understand the nature of

Dissatisfaction
y Product Life Cycle

the target market.

y Measure the sensitivity of

engineering

Research
y Turnaround Time

customers to the quality compared to price.

y As the product life cycle for

(TAT)

the services changes very fast, the designers required to be sensitive and Primary adaptive to the changes in the market place. Operations
y Knowledge y Identifying the need. y Taken for granted. y Making Assumptions y Customer y Dont take customers

Management
y Analytics and Research

Dissatisfaction
y Bad communication

knowledge for granted.

y Good students of studying

about Customer Knowledge

of customer or their requirements to obtain Sustainable Competitive Advantage (SCA).

y Good Market Research

Primary

y Good feedback mechanism y Smarter business decisions

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Outbound Logistics

y Delivery Systems

y Characteristics of

y Customer

y Improve delivery systems of

Management.
y IT Management

service
y Services cannot be

Dissatisfaction
y Perishability and

the service.
y Make the service delivery

Services

kept in stock for future use.

y Lack of documentation

Inseparability.
y Bad quality reviews.

more convenient, so better value is perceived by the customer.

y Apply Lean and RCCA

and control.
y Bad quality support

(Root Cause Corrective Action) methods to proactively eliminate defects in the operations for continuous process improvement.
y Improve visibility for client

and review.

technical environment Primary

y Maximize operational

efficiency Marketing/Sales
y Moment of Truth y Bad Service delivery y Bad marketing y Lack of knowledge y Customer y Listen to customers y Leave a positive impression

Management.

Dissatisfaction
y Negative impression

on the customers mind.

y Manage Moments of Truth

on the customers mind.

y Lack of confidence in

very carefully in order to protect the brand equity and generate more customers.
y Leave good footsteps in the

the minds of prospective and Primary existing customers.

customers mind.
y Manage their expectations.

Service

y Service Competition

y Repetitive service y Long queues in

y Customer

y To be innovative and never

Management
y CIP (continuous

Dissatisfaction
y No competition

complacent.
y To be more time sensitive

resolving queries.
y Use of old technology.

process improvement).
y Managing

and manage the service quality.

y First call resolution. y Continuously improve the

expectations.

Primary

processes by use of latest technology and skills.

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Procurement

y Forecasting & Planning y No savings on spend y Logistics & Fulfillment y Service Operations

y Customer

y Identifying the key business

Dissatisfaction
y No benchmarks or

outcomes for the company

y Mapping core source-to-pay

KPIs

processes at a granular level

y Linking source-to-pay

business outcomes and benchmarks to key performance measures and drivers

y Identifying drivers of

performance variability and Secondary providing a roadmap for improvement by leveraging insights and best practices HR Management
y People (Human y No cost savings y Lack of knowledge y Customer y Focus strongly on strategic

Resource management)
y Workforce Analytics y Talent Management

Dissatisfaction
y Lack of process

Talent Management initiatives.

y Employing right people for

efficiency
y Bad decision making

right roles.
y Make optimal use of the

Secondary

due to lack of skills

human capital available to them on a global scale. Technological Development

y Enterprise Application y Process waste y No added value y No increase in y Build composite

Services

applications and align them with business processes

y Take decisive decisions by

efficiency

leveraging business intelligence /analytics tools and on-demand solutions

y Achieve business outcome

focused designSecondary implementation-rollouts to maximize opportunity and minimize downtime

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Infrastructure

y Media Management y Legal Services y Learning and

y Mismanagement of all

y Bad publicity y Claims y Audit reports

y Diversified services that

the key activities

enable content owners and creators to produce manage and repurpose media with increased efficiency.
y Provide high quality and

Marcomm services
y Finance and

accounting
y Contact centers

economical legal support services with its experienced and competent team of legal professionals and compliance personnel.
y Help clients identify

additional opportunities so they can enhance and Secondary derive greater strategic value from their F&A capabilities. Punctuality and Secondary Activities Reliability
y Customer Service y No consistency y Late delivery y Decrease in customer y Assure that the SLAs are

satisfaction
y Increase in complaints

met and delivered.

Other

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Conclusion
It can be concluded from the above that by implementing the Lean methodology to the current systems, we have saved time (by 25 min/page), avoid errors and save disk space. This has resulted in the overall time savings of appx 83%. CIP - Continuously Improvement of Processes has also helped the firm in sustaining existing and procuring new clients.

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References http://syque.com/improvement/Muda.htm

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