SEMINAR ON QUALITY MANAGEMENT

QUALITY INITIATIVES IN INDIAN FIRMS

Submitted to, Submitted by,

Dr. P Mohan Jince Gomez

Professor, DCMS Vineesh C K

University of Calicut Sem 4, DCMS

University of Calicut

INTRODUCTION

Quality is not an act, it is a habit.

- Aristotle

In its broadest sense, quality is a degree of excellence: the extent to which something is fit for

its purpose. In the narrow sense, product or service quality is defined as conformance with

requirement, freedom from defects or contamination, or simply a degree of customer

satisfaction. In quality management, quality is defined as the totality of characteristics of a

product or service that bears on its ability to satisfy stated and implied needs. Quality is also

rapidly embracing the nature or degree of impact an organisation has on its stakeholders,

environment and society.

Quality is important to businesses but can be quite hard to define. Customers want quality

that is appropriate to the price that they are prepared to pay and the level of competition in the

market.

Key aspects of quality for the customer include:

Good design – looks and style

Good functionality – it does the job well

Reliable – acceptable level of breakdowns or failure

Consistency

Durable – lasts as long as it should

Good after sales service

Value for money

‘Value for money’ is especially important, because in most markets there is room for

products of different overall levels of quality, and the customer must be satisfied that the

price fairly reflects the quality. For example, the car maker Skoda is now part of the

Volkswagen group which is well-known for quality cars, but prior to this, Skoda owners were

amongst the most loyal because even though the cars fell short of most others in style,

comfort and performance, they were tough, reliable and very good value for money.

Some products and services are marketed as ‘basic’, having none of the extra features and

benefits of more expensive alternatives. Good examples would be Easyjet and George at

Asda clothing ranges. Even though it may be ‘low quality’ in terms of style or features, these

products still give good value for money for their overall level of quality.

For the firm, good design is fundamental, so that the product can be produced efficiently,

reliably and at the lowest possible cost. Also see the revision note on Quality Improvement.

If products are being made for other, large firms, then the quality standards may be dictated

by the firm placing the order.

Quality helps determine a firm’s success in a number of ways:

Customer loyalty – they return, make repeat purchases and recommend the product or

service to others.

Strong brand reputation for quality

Retailers want to stock the product

As the product is perceived to be better value for money, it may command a premium

price and will become more price inelastic

Fewer returns and replacements lead to reduced costs

Attracting and retaining good staff

These points can each help support the marketing function in a business. However, firms have

to work hard to maintain and improve their reputation for quality, which can easily be

damaged by a news story about a quality failure. See the Tutor2U Business Blog story about

Cadburys and salmonella.

Aside from achievement of standards like BSI, firms can measure quality aspects such as:

Failure or reject rates

Level of product returns

Customer complaints

Customer satisfaction – usually measured by a survey

Customer loyalty – evident from repeat purchases, or renewal rates

A detailed analysis of areas such as these would be an important part of Quality

Improvement – see the separate revision note for more details

Some areas for evaluation

Quality is subjective, it is a matter of personal opinion and what constitutes an

acceptable level of quality will vary from one individual to another.

Not all aspects of quality are tangible – for example the degree of assurance given by

a firm’s name or reputation can be very important even though it is hard to measure.

Quality is always evolving because of things like improved technology, better

materials, new manufacturing techniques and fresh competitors. No firm can afford to

stand still as far as quality is concerned.

Whilst controlling quality has benefits to the firm, it can also be costly to do, so it is

important that the benefits outweigh the costs in the long term.

LITERATURE REVIEW

"Quality is free. It's not a gift, but it's free.

The 'unquality' things are what cost money."

- Philip B. Crosby

Definition of Quality

Defining quality is far from easy. Just try to find why you find that a product is not of quality.

Is a Mercedes a high quality car ? Is a Lada ? Is a course of quality ?

What is Quality ?

ity

The notion of quality often subsumes a comparison between products. Product A is better

than B and therefore has a higher quality. However, the word "better" is vague and different

definitions can be used.

Quality:

lies "comparison"

Evolution of Quality Concepts

Here we detail how the definition of quality did evolve over time.

1) Fitness to standard

It just says that a product is of quality if it is what it is supposed to be.

definition: conformance to the specifications

The quality is thus checked by comparison between the output and the specifications.

Methods: - Standardization;

- Statistical quality control;

- Inspection.

Standardization is the set of actions taken for the product and the process to be clearly

identified. A set of written procedures for example. The classical test for checking whether\

standardization has taken place is: "If the people go, do the procedures stay ?" Inspection is a

simple mean by which the items are sorted. Good items are kept and bad ones are dropped.

We can decide to check all the products (total inspection) or only some of them (statistical

control). Inspection plans are discussed later in this chapter.

Drawbacks:

- Inspectors are "the enemy";

- Inspections do not add any value;

- Conformance to specifications does

- not mean conformance to needs

Based on this last drawback, the following definition was introduced.

2) Fitness of use

Here, a product is of quality if it performs as expected not as specified. The difference is

between the intended use of a product (its specification) and its real use.

A screwdriver is specified for a given size. We generally want to use the same screwdriver

for any kind of screws and maybe for opening a can of paint. Note that the fitness of use is

difficult to reach since this use may vary over customers and time.

Methods: market research / contact

Here we enter the world of marketing. The only way is to ask the consumer.

Drawbacks:

- Inspectors are "the enemy";

- Inspections do not add any value

"Fitness of use" supposes that definition of the specifications are "consumer based". Fitness

of use requires thus fitness to (the new) specifications and therefore also requires inspections.

Higher quality implies better inspection and therefore higher costs. Too large inspection costs

could also be dangerous. The answer is then the following. Instead of "inspecting" the quality

of the product, the focus came on "building" the quality in the product.

3) Fitness of cost

This means high quality in the eye of the users but now at low or reasonable cost.

o the expected price.

To reach this goal you need to reduce the variability of the processes so that no products have

to be discarded (and therefore none need to be checked). The only way of reaching this goal

is to control the processes and not the products.

Methods:

- Statistical quality control (SQC)

- Stochastic process control (SPC);

- Providing feedback at each step;

- Promote participation of the workers in the design and improvement.

VARIOUS QUALITY INITIATIVES IN INDIAN FIRMS

“At the Tata group, we are committed to improving the

quality of life of the communities we serve”

- TATA GROUP

TOTAL QUALITY MANAGEMENT

A cardinal principle of Total Quality escapes too many managers: you cannot

continuously improve interdependent systems and processes until you progressively

perfect interdependent, interpersonal relationship.

- Stephen Covey

Total quality management (TQM) consists of organization-wide efforts to install and make

permanent a climate in which an organization continuously improves its ability to deliver

high-quality products and services to customers. While there is no widely agreed-upon

approach, TQM efforts typically draw heavily on the previously developed tools and

techniques of quality control. TQM enjoyed widespread attention during the late 1980s and

early 1990s before being overshadowed by ISO 9000, Lean manufacturing, and Six Sigma.

TQM IN INDIAN FIRMS

PERFECT MACHINE TOOLS

– Perfect Machine Tools (Regd.), since 1966 has been manufacturing and

exporting Nut, Bolts, Screws, Rivets, Wire Nails, Steel Balls, Taper Rollers,

Wire Drawing, Barbed Wire, Chain Link Fence Making Machinery and all

kind of wire product machines all over the globe.

– With over 4 decades and 3 Generations of experience, the company has

established itself as the pioneer manufacturer and exporter of wire products

making machinery & plants.

Quality in leadership :

1. Set a personal example of practicing what you preach about quality.

2. Create the environment for innovation and personal development.

3. Instil in every employee a sense of pride in the work that he must do.

4. Invest in training people at all levels in quality theory and practices.

5. Empower employees to go to any length to satisfy the customer .

Fig 1: PMT quality leadership

RANBAXY

India’s largest pharmaceutical company and have a product portfolio that covers all major

therapy areas, including Anti-infectives, Nutritional, Gastrointestinal, Pain management,

Cardiovascular & Diabetes, Dermatology, Urology and Central Nervous System (CNS). We

also have a strong presence in the Novel Drug Delivery System (NDDS) segment.

Quality in manufacturing

1. Automate manufacturing processes as much as possible.

2. Create completely process-driven manufacturing systems.

3. Establish a system of color-coding to manage raw materials.

4. Document work processes and post them at all workstations.

5. Educate workers continuously on corporate goals.

Fig 2: TQM at Ranbaxy

HINDUSTAN LEVER

Quality as marketing

1. Validate every marketing step through customer feedback.

2. Identify specific business needs for every new product.

3. Use cross-functional teams to filter out unworkable ideas.

4. Judge advertising quality against specific parameters.

5. Depend on market research to fine tune communication strategy.

INFOSYS

Infosys is an Indian multinational that provides business consulting, information technology,

software engineering and outsourcing services. It is headquartered in Bengaluru, Karnataka.

Quality as HRD

1. Treat employees as customers of the human resource department.

2. Use the job line of every employee to install quality checks.

3. Research workers’ requirements to design benefits and rewards.

4. Use tests and interviews to ensure suitable skills and mindset.

5. Adopt 360 degree appraisal to ensure objectivity of assessment.

Fig 3: TQM at Infosys

Fig 4: TQM at Infosys step 2

QUALITY STANDARDS IN INDIAN FIRMS

BIS –BEARAU OF INDIAN STANDARDS

The Bureau of Indian Standards (BIS) is the national Standards Body of India

working under the aegis of Ministry of Consumer Affairs, Food & Public Distribution,

Government of India. It is established by the Bureau of Indian Standards Act, 1986 which

came into effect on 23 December 1986. The Minister in charge of the Ministry or

Department having administrative control of the BIS is ex-officio President (Emaad

Amin) of the BIS.

BIS hallmarking Scheme is voluntary in nature and is operating under BIS Act, Rules and

Regulations. It operates on the basis of trust and thus it is desirable that aspects of quality

control are in built in the system responsible for managing quality. The BIS Hallmarking

Scheme has been aligned with International criteria on hallmarking (Vienna Convention

1972). As per this scheme, licence is granted to the jewellers by BIS under Hallmarking

Scheme. The BIS certified jewellers can get their jewellery hallmarked from any of the

BIS recognized Assaying and Hallmarking Centre. The recognition to an Assaying and

Hallmarking Centre is given against BIS criteria Doc: HMS/RAHC/GO1 which is in line

with International criteria on Marking and Control of Precious metals.

Fig 5: BIS HALLMARK

BIS 916 at MALABAR GOLD

Malabar Gold and Diamonds is the flagship company of Malabar Group, a leading diversified

Indian business conglomerate. Established in 1993 in South Indian state of Kerala, Malabar

Gold & Diamonds today has a strong retail network of 116 outlets spread across eight

countries, 10 wholesale units in addition to offices, design centres and factories spread in

India, GCC and Singapore. With an annual turnover of $3.5 billion, the company currently

ranks among the world’s top five jewellery retailers in terms of annual turnover.

AGMARK

Agmark’ is a Quality Certification Mark of the Government of India given to products

confirming to scientifically laid down quality standards.

Products commonly certified under AGMARK are :

Honey

Ghee, Butter

Chillies, Turmeric, Curry powder, Garam Masalas, Cardamom,

Cumin, Coriander and other curry powders.

Vegetable Oils

Spices

Wheat, Atta, Maida, Suji, Besan, Pulses and many more items required by

customers.

MILMA GHEE

Contains 99.7 percent milk fat. Manufactured by melting fresh cream under hygienic

conditions. Milma ghee has the ideal golden yellow colour due to presence of natural

carotene in cow milk. (In contrast, ghee manufactured from buffalo milk is white in color).

No artificial colours or flavours are added in Milma ghee. Natural aroma and flavour of ghee

is retained since ghee is produced directly from fresh cream instead of going in for melting

stored butter Made from cow’s milk, the golden colour Milma ghee which is Agmark

Certified is famous for its aroma and taste. Available in consumers packs of 50ml, 100ml,

200ml, 500ml, 1 ltr, 2 ltr, and 5 ltr PET Jars.

ISO

The International Organization for Standardization (French: Organisation internationale

de normalisation; Russian: Международная организация по стандартизации, tr.

Myezhdunarodnaya organizatsiya po standartizatsii), known as ISO, is an international

standard-setting body composed of representatives from various national standards

organizations.

Founded on 23 February 1947, the organization promotes worldwide proprietary, industrial

and commercial standards. It is headquartered in Geneva, Switzerland, and as of 2013 works

in 164 countries. It was one of the first organizations granted general consultative status with

the United Nations Economic and Social Council.

The three official languages of the ISO are English, French, and Russian. As its name would

have different abbreviations in different languages ("IOS" is English, "OIN" in French, etc.),

the organization adopted as its abbreviated name "ISO", derived from the Greek word isos

(ἴσος, meaning equal).

Both the name "ISO" and the logo are registered trademarks, and their use is restricted.

ISO is a voluntary organization whose members are recognized authorities on standards, each

one representing one country. Members meet annually at a General Assembly to discuss

ISO's strategic objectives. The organization is coordinated by a Central Secretariat based in

Geneva.

WIPRO : ISO 9001

Wipro is the first PCMM Level 5 and SEI CMMi Level 5 certified IT Services Company

globally. Wipro provides comprehensive IT solutions and services (including Systems

Integration, IS Outsourcing, Package Implementation, Software Application Development

and Maintenance) and Research & Development Services (hardware and software design,

development and implementation) to corporations globally. Wipro’s unique value proposition

is further delivered through our pioneering offshore Outsourcing Model and stringent quality

processes of SEI and Six Sigma.

Wipro in Business Process Outsourcing (BPO)

Wipro BPO is uniquely positioned to service customer requirements by leveraging its tenets

of quality and innovation, the best people talent, self sustaining process framework and

domain knowledge. We offer customized service offerings; translating into the most flexible

and cost effective services of the highest quality for our customers. With over 19,000 people,

operating out of different locations (India and Eastern Europe), Wipro BPO has been a

critical partner to all its customers in achieving their business goals. Wipro BPO services

customers in various industries including Banking & Capital Markets, Insurance, Travel &

Hospitality, Hi-Tech Manufacturing, Telecom & Healthcare sectors. Wipro BPO also has

deep expertise in delivering process specific solutions in areas like Finance & Accounting,

Procurement, HR Services, Loyalty Services and Knowledge Services.

The approach to quality in India’s BPO’s, during the inception years was primarily on

process compliance and hence certifications like ISO 9001 and COPC were much sought

after. Over the years constant innovation led us to embrace improvement methodologies such

as Lean, Six Sigma, Kaizen, Continuous Improvement, etc. to further strengthen the

efficiency of the processes. Some Indian BPO companies have become extremely proficient

in the application of these methodologies for internal processes as well as in their customer’s

organizations, hence significantly achieving process and people excellence.

SIX SIGMA IN INDIAN FIRMS

A statistical concept that measures a process in terms of defects – at the six sigma level, there

3.4 defects per million opportunities. Six Sigma - A highly disciplined process that enables

organizations deliver nearly perfect products and services. A methodology and a symbol of

quality to measure and improve company’s performance, practices and systems. It mainly

aims at enhancing the profitability by improving the quality and efficiency. It is a structured

data driven methodology for eliminating waste from processes, products and other business

activities while having a positive impact on performance. Six Sigma emerged as a natural

evolution in business to increase profit by eliminating defects.

Six Sigma is a rigorous and a systematic methodology that utilizes information (management

by facts) and statistical analysis to measure and improve a company's operational

performance, practices and systems by identifying and preventing 'defects' in manufacturing

and service-related processes in order to anticipate and exceed expectations of all

stakeholders to accomplish effectiveness.

Table 1 : Six sigma levels

SAMSUNG

Samsung Electronics Co. (SEC) of Seoul, Korea, is perfecting its fundamental approach to

product, process and personnel development by using Six Sigma as a tool for innovation,

efficiency and quality. SEC was founded in 1969 and sold its first product, a television

receiver, in 1971. Since that time, the company has used tools and techniques such as total

quality control, total process management, product data management, enterprise resource

management, supply chain management and customer relationship management. Six Sigma

was added to upgrade these existing innovations and improve SEC’s competitive position in

world markets. The financial benefits made possible by Six Sigma, including cost savings

and increased profits from sales and new product development, are expected to approach $1.5

billion by the end of 2002.

As a foundation for its Six Sigma thrust, SEC began by pursuing a pervasive goal of

developing its internal resources, especially people, to put innovation first in the development

and design of products, in manufacturing and marketing, and in the growth of employees.

With its strategic objectives established, the foundation was ready for the Six Sigma process

to begin in late 1999 and early 2000 with training for SEC’s management, Champions and

other employees responsible for deployment planning. The Juran Institute Inc. provided this

training. After only three years of deployment, the number of Master Black Belts (MBBs),

Black Belts (BBs) and Green Belts (GBs) already approaches 15,000—or almost one of every

three employees. With a corporate goal of 100 MBBs, 3,000 BBs and 30,000 GBs by 2004,

SEC obviously is serious about developing Six Sigma capability in a workforce of about

49,000 worldwide in 89 offices and 47 countries. No individual or operation in SEC is

exempted from the training—including staff members in management, personnel, accounting

and procurement. BBs are expected to guide several projects per year, which further increases

each project’s return on investment. Promotion and other awards and incentives are awarded

by the operation in which each employee is assigned.

SEC completed 3,290 Six Sigma projects in 2000 and 2001; 1,512 of these were BB projects.

In 2002, 4,720 projects are expected to be completed, 1,640 of them by BBs. SEC’s Six

Sigma projects have also contributed to an average of 50% reduction in defects between 1999

and 2001. There is no thought of improvement in quality and productivity without Six Sigma.

These impressive numbers have certainly played a major role in Samsung’s recent growth.

Some indications of this include the following:

• By 2001, SEC had earned net income of $2.2 billion on total revenues of $24.4 billion.

Market capitalization stood at $43.6 billion.

• According to SEC’s 2001 annual report, SEC now is one of the top 10 electronic and

electrical equipment manufacturing companies in the world, with the best operating profit

ratios and superior fiscal soundness.

• The report also says debt to equity ratio is lower than that of any top ranking company, and

the shareholders equity to net assets ratio surpasses the average.

• SEC says its technological strengths, Six Sigma quality initiatives and product marketability

helped increase its share of the memory chip market in 2001 to 29%, monitors to 21% and

microwave ovens to 25% of those sold worldwide.

• Despite a downturn in the world economy and a reduction in exports to the United States,

credit for SEC’s current operating profit margin of 8.5% is due mostly to quality

improvements and Six Sigma deployment.

• SEC’s quality and innovative strategy helped it reach the number one position in the

BusinessWeek 2002 information technology guide.1, 2 The guide noted SEC’s computer

monitors, memory chips, telephone

handsets, and other digital products, focusing on four Standard & Poor’s criteria: shareholder

return, return on equity, revenue growth and total revenues.

Samsung believes the BusinessWeek ranking was also due to SEC’s employees’ belief that

quality is the single most important reason for the company’s higher sales, lower costs,

satisfied customers and profitable growth.

Only a few years ago, SEC’s products were virtually unknown by Americans or were known

as the cheaper, lower quality substitute for Japanese brands. This perception is changing. The

U.S. market now represents 37% of SEC’s total sales.

MUMBAI DABAWALLAS

NMTBSA

(Nutan Mumbai Tiffin Box Suppliers Association)

History : Started in 1880

Charitable trust : Registered in 1956

Avg. Literacy Rate : 8th

Grade Schooling

Total area coverage : 60 Kms

Employee Strength : 5000

Number of Tiffin's : 2,00,000 Tiffin Boxes

i.e 4,00,000 transactions every day.

Time taken : 3 hrs

Error Rate : 1 in 16 million transactions

•Six Sigma performance (99.999999)

•Technological Backup : Nil.

•Cost of service -Rs. 300/month ($ 6.00/month)

•Standard price for all (Weight, Distance, Space)

•Rs. 36 Cr. Turnover approx. [6000*12*5000=360000000 i.e Rs. 36 crore p.a.]

•“No strike” record as each one a share holder •Earnings -5000 to 6000 p.m.

•Diwali bonus: one month’s from customers.

CODING SYSTEM

Initial Coding System used colored threads to mark 7 Islands

Then Utilized thrown away cotton waste from tailors

Now using color markers:

E :: Code for Dabbawala Street

at residential station

VLP :: Residential Station Ville Parle

3 :: Code for Destination station.

E.G :: Church gate

9 :: Code for Dabbawala at Destination.

Ex :: Express towers ( Building name)

12 :: Floor no. in the building.

SIX SIGMA CERTIFICATION

In 1998, Forbes Global magazine conducted a quality assurance study on the

Dabbawalas' operations

Gave Rating of 99.999999

Dabbawalas made one error in six million transactions.

Stood High along with MNC’s like Motorola, GE etc…

Dabbawalas got ISO 9001- 2000 for Excellence in service

LUCAS TVS : LEAN SIX SIGMA

• Estd. 1961 – JV between Lucas UK and TVS India

• Lucas-TVS is the Leader in Auto Electricals in India today with 48 years’ experience

in design and manufacturing

• Lucas - TVS is a TS16949 and OSHAS 18001 certified company

• Lucas-TVS, believes that quality begins and ends with the customer

• For the company, quality is not just conformance to drawings or specifications but

ensuring customer satisfaction

Manufacturing of:-

• Power Window Motors

• Starter for light truck gear reduction starter

• Other products and services like

Alternators

Direct drive starter

Engine colling

Wiper Motots

Blower fan motors

Electronic Ignition Coil With Ignitor

Compressor Motor Air Suspension

Electronic Spark Advance Distributor

Strick Ignition Coil

Performance criterions :

• Top Management Leadership, Vision, Strategies

• TQM Frameworks

• Quality Assurance Systems

• Management Systems for Business Elements

• Human Resource Development

• Effective Utilisation of Information

• TQM Concepts and Values

• Scientific Methods

• Organisational Powers (Core Technology, Speed, Vitality)

• Contribution to Realisation of Corporate Objectives

Analysis

• Even if an organization has established a sound quality assurance system and has won

the Deming Prize, it cannot stand still

• it will surely need to adapt and transform its quality assurance system to meet new

challenges and change the scope and practice of its business

• it may need to diversify its products, develop new products or initiate new business

altogether

• To do this, the organization must continue educating and training employees and

developing new employees who have joined the organization since receiving the

Deming Prize

• There is a beginning to total quality management (TQM), but there is no end

• To meet the challenges organizations are realizing that they need to transform the way

they do business through implementing TQM

• To respond to internal and external changes, and to implement TQM more effectively

in managing the business, it is extremely effective for organizations that have

received the Deming Prize to challenge for higher awards such as the Deming Grand

Prize.

CASE STUDY ON SIX SIGMA AT WIPRO TECHNOLOGIES: THRUST ON

QUALITY

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 Wipro’s 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.

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 technologydriven 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.

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:

Reduce the data transfer time

Reduce the risk

Avoid interruption due to LAN/WAN downtime.

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

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.

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.

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 :

(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:

Executive Management

Six Sigma Champions and Deployment Leaders

Financial Executives

Black Belts

Green Belts

Yellow Belts

Six Sigma projects at Wipro are :

(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:

Ideation

Definition

Selection

Tracking

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.

Six Sigma Consultancy at Wipro:

Wipro’s 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 Wipro’s own

methodologies, training capabilities and global experience. Wipro also helps in

institutionalizing Six Sigma across the organization for transformation.

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 :

Six Sigma institutionalization

Problem solving using six Sigma

Six Sigma training

Reaping the Benefits:

The financial gain that Wipro has achieved by using Six Sigma has been one of the high

points.

As the Six Sigma initiative started maturing Wipro identified two major phenomenon:

The biggest projects had all been completed

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:

Improving performance through a precise quantitative understanding of the customer’s

requirements thereby bringing in customer focus

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%).

Waste elimination and increased productivity up to 35%.

Cost of failure avoidance (installation failures down from 4.5% to 1% in hardware

business).

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 Wipro’s quality

processes takes the benefits to another level, ensuring that the customers benefit from:

30-40% lower total cost of ownership

20-30% higher productivity

On-time deliveries (93% projects completed on time)

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 client’s 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 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 company’s 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

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implementation in Indian industries. The TQM Journal, (21)3, 261-272.

doi:10.1108/17542730910953031. http://dx.doi.org/10.1108/17542730910953031.

2. Hesham, A., & Magd, E. (2007). ISO 9001: 2000 Certification Experiences in

Egyptian Manufacturing Sector: Perceptions and Perspectives. International Journal

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46934 http://dx.doi.org/10.1108/02656710810846934.