Benchmarking & Analytics

Value Innovation Workshop Version 11.0

Name of the Presenter: Benchmarking and Analytics Team

Date: June 1, 2011

March 30, 2014

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Introduction of Participants

Educational and Professional Background ----

Expectations from the Workshop ----

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Introduction

Faculty ----

Kaizen based Value Innovation ----

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What is Value?

Value =

Function ---------------- ~ Cost Quality ----------------Cost

Value =

Value is to be seen from the Customer or Business perspective

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Innovation

Never before in history has innovation offered promise of so much to so many in so short a

time - Bill Gates.

Innovation is not the product of logical thought, although the result is tied to logical structure- Albert Einstein.

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Why Value Innovation?

Personal Growth

Self Improvement
Business Excellence Customer Delight

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What is innovation?

Delighting features/ services/ products to create wow effect. Enhanced convenience, reliability or availability at least cost.

Smarter way of doing things to enhance Quality

and Productivity with least efforts.

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Why talk about Innovation ?

Rising customer expectations in terms of

Quality ,Delivery and Cost

Global competition
3- C: Customer , Competition, Change" Michael Hammer

Proven technique for Quantum jumps in Business results and customer delight

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Why Value Innovation?

Productivity improvement of 8,9 & 8 % every year for the 3 year contract - An MSA with a key customer

You deliver the code what we ask for. You should deliver more than asked for - A customers feedback

How iGATE Patni manage innovation / continuous improvement and

how that is apparent in an operational context - A RFP Question

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Kano model

Satisfaction + Delighters
Innovation

One-Dimensional
Competitive Priority

Dysfunctional Must Be
Critical Priority

Functional

Dissatisfaction
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Scope of Value Innovation

For Customer (Key Business Drivers) Enhance Service Quality Optimal service cost Customer Delight For iGATE Patni (Key Deliverables) TAT of CR/ Tasks Cost of development (CR/ Task) Cost of IT infrastructure (efficient codes / designs) Digitization / reusability Least design/ implementation failures

Purpose Leadership position in market space (Create Innovation Culture ) Employee growth
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Goals Complete High Impact showcase projects Identify candidates for advance training
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Comprehensive Innovation Approach

Developing and Deploying Innovation/ Improvement plan -----

4. Paradigm Shift ( 45 Days)

(Advanced Lean, TOC,TRIZ and Six Sigma)

3. Breakthrough Innovation/ Improvements (15 Days)

(Advanced TRIZ Tools, TOC and Six Sigma)

2. Significant Innovation/ Improvements (5 Days)

(Advanced Lean Tools and TRIZ)

1. Quick Hit Innovation/ Improvements (2 Days)

(Through BPM, Kaizen, Small Steps and Simple Lean Tools)

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Business Excellence @ iGATE Patni

6-Sigma, TRIZ & Kaizen Penetration
Role holder Green Belt trained Green Belt certified Black Belt trained Black Belt certified Master black belt Numbers 4065 1528 434 213 5

Thought Leadership
Research on Lean, Six Sigma, Kaizen, BPM CMMI, TRIZ and Simulation Models Application of Orthogonal Array to optimize testing efforts White Paper presentations at World Congress on Total Quality, SEPG Asia, Lean Six Sigma Summit (Singapore) and Six Sigma for IT (Chicago)

Supported by 10 Dedicated Full Time Black Belts

TRIZ TRIZ Trained Resources Certified TRIZ Practitioners TRIZ Projects TRIZ Coach Numbers 45 20 4 3
TRIZ TRIZ Trained Resources Certified TRIZ Practitioners TRIZ Projects TRIZ Coach Numbers 45 20 4 3

Consultancy & Awards

Consultant base of experienced practitioners with over 10 years of industry experience Successfully executed Six Sigma Roll out assignments for clients that includes:
A Large Investment company in USA (Savings 0.11 MM USD) A Large Insurance Company in Canada (ROI 105%)
Won Runners Up under Innovation / Turn around category

Benefits Reaped Over 26 Million USD

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Few Accolades

Patni won Best Lean Six Sigma Project Award of IQPC at the Conference held at Miami, Orlando on 24th & 25th Jan'06

Won Runners Up Six Sigma Excellence Awards-2005 under Innovation / Turn around category at SCHMRD & SAC,USA Six Sigma Excellence award

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Need of Value Innovation for Individual

Innovation avenue for Personal Growth of team members Innovation for Modernization of Mind

Innovation: Interesting ??????

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Value Innovation (VI) in iGATE Patni Plus Maintenance Methodology

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Value Innovation in iGATE Patni Plus

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Objectives of Value Innovation

Identify & tap value creation potential in customer business processes and applications Deliver value innovation using
- Rich iGATE Patni experience & knowledge of Business processes - Systematic way of finding VI opportunities - VI tools & techniques

- Business Excellence techniques

Improve

Customers

Business

processes

through

automation,

complexity reduction & application performance improvement.

Contribution to Customers bottom-line

Ensure repeat and enhanced business.

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Benefits of VI

Value added delivery Enriched iGATE Patni knowledge repository Creation of VI Culture Identified Business opportunities for Y-O-Y savings

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Understanding Business Value of Customer processes

Business Value is an informal term that includes all forms of value that determine the health and well-being of an organization in the long-run. In context of iGATE PatniPLUS Maintenance methodology, Business value of customer processes involves,
- Usability
- Functionality - Availability - Reliability & Recoverability - Performance (throughput, response time, etc.) - Security - Agility

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Understanding Business Value of Customer processes

Factors affecting Business value of customer process:

- Cost impact of application/system

- End user impact - Strong points ( What's going well) - Potential improvement areas

- Pain areas

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VI Process flow

Summary VI Potential document

Assessment report

Baseline Business Value before VI implementation

Identify
Customer Pain Areas Potential for VI

Define
Problem statement Objective for VI Implementation
VI Ideas file

Business Benefit report

Gather Data
VI Ideas VI Enterprise Database VI Dashboard

Present & Use the information

Business benefits to Customer & iGATE Patni through VI iGATE Patni Knowledge Repository Enrichment Inputs to Sales & Mktg for future engagements

Prioritize
VI Ideas for implementation

Implement & Evaluate

Implement VI Ideas Evaluate Effectiveness of VI

Analyze
Techniques to be used for VI implementation

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Roles & Responsibilities of VI Champion Facilitate projects for VI Lead Value Innovation (VI) initiative

Promotion of VI
Consolidate customer expectations, ideas from team members for Value Innovation

SPOC for VI
Monitor Value Innovation Customer Interaction Interact with Sales & Marketing team for VI Initiative Act as a change manager for VI initiatives
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Summary VI Potential Document

Purpose: Contents

To

capture

potential

for

VI

from

Assessment report/Interviews with Customer

- Customer Business details - Application/system details - Known customer pain areas - Customer expectations - VI Opportunities

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VI Idea File

Purpose: To consolidate all VI ideas generated throughout the lifecycle of Maintenance project. Contents:
- Ideas description - Idea contributor

- Idea Classification for VI (Customer Facing/ Internal)

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VI Dashboard

Purpose: To monitor progress of VI initiative throughout VI lifecycle (idea generation, development and implementation). One stop shop for all VI data
Ideas Tools used Prioritization Implementation techniques Timelines (expected/actual) Benefits (Tangible/Intangible) Stakeholders

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VI Business Benefit Report Purpose: To present to the Customer, benefits (tangible/intangible) from VI implementation and comparison between Business value before VI implementation & after VI implementation for VOI ( Value on investment)

Contents:
- Business value of customer processes, applications/system before VI Ideas generation - Business value of customer processes, applications/system after VI Ideas generation - Investment Required for VI Implementation (e.g.. $ Value, Resources) - Benefits ( tangible/intangible) - Value on Investment (VOI)
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What is Kaizen?

It is a Japanese term, taken from words Kai means change and Zen means good.

Started by Toyota in 1960s. Today over 50 Kaizens/year/

employee are received. It implies gradual and continuous improvement involving everyone in the organization for small improvements that does not cost much. Area of improvement may be personal life, home life, social life, and working life.

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What is Kaizen? Looking philosophically, Kaizen is more than Continuous improvement : Kaizen is a belief that the creativity of people is infinite Kaizen is never being satisfied with things as they are . Kaizen means pursuing the ideal condition, even though it might never be achieved

Questioning answers rather than answering questions is a necessary part of looking for new solutions - Kiran Karnik, President, NASSCOM
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What is Kaizen?

Kaizen Means
- Any idea that leads to improvement - Idea-implementation must not involve any cost or very little resources - Improvement may be in any area of quality, productivity, delivery, waste reduction, working environment etc.

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Some Quotes The essence of Kaizen is gradual (even tiny) but

continuous improvement that over the long-term sculpts a

masterpiece! "If we improved any single process in our business by just

1%, or even 0.1%, but we did that every single day - what
do you think the effects would be in a month? In a year? In five years? From now on, if you're part of this team you have two jobs: Doing your job and Improving your job.

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Kaizen: Differentiating Factors

Can be done by everyone Idea can be implemented immediately-immediate result Kaizen implementation requires less resources Unlike Six Sigma, ISO, ISMS implementation The primary objectives are to identify and eliminate non-value added

activities in all areas, including the service process.

Kaizen provides immediate results. Instead of focusing on large, capital intensive improvements, It focuses on creative investments that continually solve large numbers of small problems.

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Kaizen Process

There are three essential elements to the Kaizen process

An idea that is developed and put into action is more important than idea that exists only as an idea - Buddha

Commencement Awareness

Idea

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Kaizen Hints
Look into the process for improvement Ask Why? Five Times to solve any problem Seek ideas from Many People Discuss your idea with seniors Dont discourage any idea Implement the idea Write up the idea on a Kaizen Form or mail to us. Submit the Kaizen Form to share with others

Improvement is a never ending journey

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Kaizen Hints

Typical non value adding activities:

Rework Duplication / overlap of activities Excessive Reviews/ testing Multiple approvals Waiting time / delays

- Transportation/ Transfer

Eliminate these non value added activities through process changes, simplification, mistake proofing, automation Merge/ combine process steps Automate value adding steps to reduce cycle time

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MUs

3 TYPES OF MUs Muda - Wastage (Avoid all wastages) Muri - Strain (Avoid Strains, work smarter) Mura - Errors (Do the things right first time)

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Waste Elimination
Avoid Muda- wastages Different Muda ( Wastages)
- Time ( Excessive processing time) - Material (Excessive Inventory of Raw, Finish, WIP, Hardware / software, tools) - Man/ Efforts (Excess Manpower) - Money (Capital) - Movement (Excessive movement of material, paper, files) - Space ( Excessive Server space utilization, Bandwidth utilization)

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Some Kaizen Examples

Problem: It was taking lot of time to download files from mainframe server as files could be downloaded one by one only Solution: Applying the concept of Performing similar task together, a .net application was developed which allows downloading concurrently instead of one by one

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Some Kaizen Examples

Problem: During data capturing for metrics analysis, there were cases of missing the data of some projects which had not submitted the metrics, resulting in partial data Solution: In the new tool developed for data pulling from e-PMS, a Prompt message appears showing the projects which have not submitted the metrics. This allows user to take further action based on complete information

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Some Kaizen Examples

Detection Poka Yoke: Prompts projects that have not submitted the metrics. This prompt ensures that users will not miss considering some of the projects

Prevention Poka Yoke: Relevant drop downs with dynamic filtering ensures users to select the correct project, account and BU. This ensures error free data collation, analysis and reporting

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Some Kaizen Examples

Problem: Files in different layouts /
types (txt, xml, xls) were received for Monthly Tax-run from different businesses. Production support team had to manually convert such nonstandard format files into a standard input layout format. This was time consuming and error prone which could delay time-critical Tax-run process

Solution: Applying concept of Do it quickly and uniformly, a generic file

parsing job was written which reads the layout of input-file from a layout-file and generates output as per the Standard output-layout file. This made task very fast with uniform output

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VI Form Format

Mention the idea you want implement Mention the way the existing process/ product is being run Mention the change in the process/ product and the way the Process/ product will be, after implementation Mention the benefits that Kaizen Idea implementation will generate

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Few Application Areas of Kaizen

To reduce TAT/ Cycle time Reduce manual/ repetitive work

To reduce defects / rework

To enhance service Quality To reduce variation

To enhance customer satisfaction

To improve Productivity To improve the bottom line

To improve top line

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Kaizen @ iGATE Patni

1. Query optimization to reduce mainframe CPU time

Process Before Kaizen: The query was run for throttling logic every 4 minutes on development environment for DB2 mainframe. This resulted in higher CPU time of 18.25 sec in each run and cost.

Process After Kaizen:

Query frequency is changed to 4 hours from 4 minutes. This enabled saving of CPU time and cost @16,000 USD per month. Financial Impact: 16 K USD per month X 12 months = $ 192 K per annum.

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Kaizen @ iGATE Patni

2. Automation Of replication testing for lotus notes

Process Before Kaizen: Offshore & Onsite used to do manual replication testing of lotus notes databases on a daily basis. This process used to take 2 hours of onsite effort and 1 hours of offshore effort i.e. 3 hours effort per day.

Process After Kaizen: Replication testing of lotus notes databases is done using 'Replication Testing Tool'. This process takes 3 to 5 minutes. Thus annualized effort saving is 90 PD.

Financial Impact: 90 (PD saved per annum) x $5 (Hrs rate) X 8 Hours = $ 36 K

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Kaizen @ iGATE Patni

3.Preventing discount loss occurring on specific invoices
Problem: As per the existing scenario, GE POWER SYSTEMS (IPS) were facing discount loss issue
for all the invoices having key id ISTLEPAY in RAPID database. The Key ID is the ID by which the invoice enters the database and gets committed to a particular table.

Team Affected: IPS Business Solution: The main root cause behind this issue was that the invoice terms, vendor terms or
purchase order terms were not considered for calculating the invoice payment date for these invoices. This problem was analyzed and it was found that the application called REFORMATTER was inserting hard coded values for the discount term field in the EXTRACT sent from the WEB end to MAINFRAME end and this lead to the payment of these invoices on the same day from the mainframe end. The remedy to this problem was to modify the REFORMATTER code so that the terms (invoice, vendor or purchase order terms) were considered for calculating the invoice payment date at mainframe end. Necessary code changes have been done and the code has been rolled into production servers.

Status: Completed (Start Date: 13th June 07 Completion Date: 29th June 2007) Cost Savings: 2500$/month(approx) x 12 = $ 30,000/yr
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Kaizen @ iGATE Patni

4. Develop utility to fetch reports required by client from QC (Quality Centre)
Problem: To avoid the duplicity of entering the test results in Quality Centre and then again in execution reports.

Team Affected: Regression QA team (offshore team size 13 )

Solution: Modify the old macros which were initially implemented with Test Director, CQ (defect management) and align it as per the new report format.

Status: Completed (Start Date: 14th Mar 07 Completion Date: 30th Apr 07)
Cost Savings: 13 (team member) x 1 (Hrs, for preparing the execution report) x 20 (working days in a month) x $5 x 12 (entire year, since regression is carried through out the year) = $15600

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Kaizen @ iGATE Patni

5. Optimizing QC patch updates
Problem: Reduce the efforts spent in downloading the Quality Centre patches. Team Affected: All QA teams (offshore team size 120) Solution: i) Run the QC executable from the server in the ODC ii) Copy the folder contents from the server to the local machine

Status: Completed. (Start Date: 14th Mar 07 Completion Date: 15th Apr 07)
Cost Savings: 120 (team member) x 2 (Hrs, down loading the QC) x $5 x 2 (say twice a year, once for the first time and the other for any upgrade) = $2400

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Kaizen @ iGATE Patni

6. Automation Of DB2 Card Creation
Problem: DB2 control card creation is a redundant activity taking 15-20mins for each card creation. Team Affected: Mainframe enhancement team Solution: This process has been automated by creating new Screen commands to create the DB2 cards and 8 different clones. Due to this, the same activity that used to take 15-20mins when done manually, can now be completed within a minute. Status: Completed (Start Date: 21st Feb 07 Completion Date: 23rd Feb 07) Cost Savings: $ 1920.00 (Assumption: the card needs to be created for all 8 clones in all 4 regions)

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Kaizen @ iGATE Patni

7. Automation of Tax-run file parsing process
Problem: Reducing effort spent on Tax-run file parsing process
Problem Statement: Files in different layouts / types (txt, xml, xls) are received for Monthly Tax-run from different businesses. Production support team manually converts such non-standard format files into a standard input layout format. This is time consuming and error prone which could delay time-critical Tax-run process.

Solution: Wrote a generic file parsing job which reads the layout of input-file from a layout-file and generates output as per the Standard output-layout file. Future inclusion of new input Tax-run file will require only a one-time generation of inputlayout file incase its not in standard format. No code changes or manual parsing would be required.
Status: Completed (Start Date: 1st June 07 & Completion Date: 20th July 07) Team Affected: ACS Taxes production support team (offshore team size 1) Cost Savings: 1 (offshore team member) x 4 (hrs lost in converting files) x 10 (working days in a month) x $5 x 12 (months a year) = $2400 annually.
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Kaizen @ iGATE Patni

8. Communication Cost Reduction
Problem: Reduce Communication Cost such as Bandwidth and telephones Problem Statement: The Communication cost is vital component of the infrastructure cost that needed optimization. Solution: Low cost call routing with multiple carriers, proliferation of Link line usage, use of Microsoft chat service, bandwidth and its cost rationalization Status: Completed Cost Savings: 28.4 Million INR.

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Kaizen @ iGATE Patni

9. Transportation Cost Reduction
Problem: Reduce Transportation Cost which was increasing in INR per FTE

Problem Statement: The Transportation cost is significant component of the infrastructure cost that needed optimization. Solution: Enhanced cab utilization rate by optimizing number of shifts. Routes were optimized to reduce travel distance and time. Status: Completed Cost Savings: 3.2 Million INR.

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Effective Kaizen Attributes

Should impact delivery processes (Cycle time, Defects,
Productivity) Should have direct impact on customer business/process Should be specific with suggestion for improvement to the identified problem Should result in quantifiable savings/direct business results

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Questions

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Break out : Kaizen Identification

Identify and list small improvement ideas that can bring
innovation in our working or which can delight customer. Kaizen can be pertaining to 3-M, 7- wastages or other Non value adding activities. Each participant shall give minimum one idea. Find actionable for the ideas.

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Way Forward

Implement Kaizen with help of senior leaders Proliferate and exchange Kaizen ideas Participate in higher level of innovation through Lean, Six Sigma, TRIZ projects

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THANK YOU !

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