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PROCESS EXCELLENCE
Complexity in business and technology landscapes has reduced agility of IT and led to an increase in costs associated with Application Development & Maintenance (ADM). While IT infrastructure organizations have undergone consolidation and standardization, Applications organizations are more fragmented and complex in nature. Our SMM (System Maturity Models) Consulting Practice focuses on increasing efficiency of ADM teams through organizational maturity enhancement, process transformation, cost optimization and quality management. Our solutions leverage industry best practices engrained in models/ methodologies like CMMI, SPICE, ISO 9001, TL 9000, Lean and Six Sigma.
ADM Transformation
Process Harmonization
Global organizations are focusing on consolidation regionally or across IT process functions, in order to lower costs, increase process maturity, improve flexibility and break down organizational silos.
The need for consolidation stems from ! Mergers and acquisition activity ! Disparate or fragmented processes across IT lines of business ! The need to improve IT effectiveness and reduce costs In order to achieve global process synergies, we aim to:
Cataloguing and mining of internal best practices and methods Common roles and responsibilities definition mapped to hierarchy structures of different units Define an overarching governance function Processes benchmarked and defined to industry models (e.g. CMMI, ITIL, COBIT, PCMM) and best practices Design balanced scorecards to align, report and analyze metrics at different organization hierarchies Organizational roll-out of harmonized processes Interim maturity assessment and audits to ensure adherence Continuously improve processes by leveraging Six Sigma and Lean concepts
Our Services
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Assess current QA strategy, operating model and processes Design a QA strategic framework to set up / enhance / improve the QA operations and infrastructure Define a QA service catalogue Establish and implement an approach to monitor and assess operation and cost efficiency, as well as effectiveness of the designed and practiced quality strategy and operations Operate QA activities in a Managed Service mode that enables movement to a service based cost model
Cost of Quality
Economics of application development and maintenance (ADM) are not well understood in the software development world. The later a defect is fixed in the product lifecycle, the higher the cost of rework and it increases exponentially. Quality costs are important because every dollar and labor hour spent on rework could be used for making superior products leading to optimized ADM costs. Cost of Quality (COQ) helps quantify rework and non value added activities so that projects can optimize and eliminate / reduce them.
Our Services
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Assess cost / wastages associated with rework and failure by conducting COQ assessment Establish a COQ baseline in comparison with industry benchmarks Identify and operationalize initiatives to improve COQ 10 15 % reduction in ADM costs 2:1 to 5:1 ROI over 3 years for cost optimization initiative 20- 30% reduction in defect leakage to production Improved customer satisfaction
Potential Benefits
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COQ Baselining
Process Redesigning
The Return
Savings
Maturity Improvement
Application Development Process Cost of Performance
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Prevention Appraisal
GOAL
Starting with COQ baselining gives a quantitative approach to process improvement direction
Product Quality
With critical business processes being implemented in software, depletion in quality is a primary business risk. Quality issues in software results in revenue lost due to the business impact from poor quality as well as sunk costs due to cancelled projects. Our diagnostics solutions have helped organizations improve software quality by identifying the root causes and take corrective actions.
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Identify high impact, practical, measurable cost reduction initiatives to reduce ADM spend through: Smart Spend analysis to align ADM spend with business value > Process / Tools / Skills analysis Identify redundancies, under-utilization, productivity drivers, and reuse > Improvement recommendations > Deploying improvements Mentoring and piloting the prioritized improvements Enable improved business alignment of activities, spending, and continual improvement of services Optimize ADM Costs and release budgets for Transformation
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Case in Point
CLIENT PROFILE: Insurance Major CHALLENGES
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Different versions of truth across business units Inconsistent metrics and dashboards Inefficient use of resources and organizational structures Multiple project management frameworks, governance mechanisms and redundant processes Low practitioner involvement in process definition led to a poor adoption of the processes
Designed the Process & Quality (P&Q) organization Designed a unique Process Factory model to have a single version of truth (QMS)
Ac t i ve m e nto r i n g / co a c h i n g d u r i n g p ro ce s s implementation
BUSINESS IMPACT
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WIPRO SOLUTION
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Set up a Process Governance Council (PGC) across all the client business units to ensure cross functional process ownership Conducted a Cataloguing & Mining exercise to build an inventory of re-usable process artifacts Conducted an assessment exercise with respect to CMMi, ITIL, PCMM to create an improvement roadmap
Established end-to-end process integration among processes across various domains (Engineering, Support, IT Operations and People Capability) Reduced project management overheads by 10% and development cycle time Using the Process Factory model, the new QMS definition cost was a fraction of the cost of a traditional definition approximately 50% Entire QMS was defined over a period of 5 months less than a third of the time that the traditional methods would have taken
Reduce COQ
Failure Coasts
Cost of Quality