Quality and IT Service Management A Wipro Perspective.

Quality and IT Service Management

A Wipro Perspective

Agenda

• Customer Interests– What resonates with customers

• Why Should you listen to us• Introduction to Quality Methodologies• Applying Quality to IT Service Management

– Brief Introduction and live example

• Reality Check– Where are our customers spending money

WHAT ARE OUR CUSTOMERS TELLING US

What are the challenges for IT today

Doing more for less

Doing it more predictably

Doing it with more discipline

Key Phrases that we hear

• IT Factories– Repeatable, predictable Service Delivery

• Business IT Alignment (Integration)– As IT gets more complex, the challenge

continues.

…..

INTRODUCTION TO WIPRO QUALITY JOURNEY

Been there – Done that !!

(What are our learning's and experiences)

ISO 9001 Certification4195 Employees

CMM Level 5 5148 Employees

9934 Employees

PCMM Level 5 & TL9000 9626 Employees

CMMI Level 5 10500 employees

16593 Employees

26197 EmployeesLEAN initiated

Wipro’s Quality Journey

2004

2003

2002

2001

2000

1998

1995

59000 Employees 2006

The metrics driving Wipro

0

20

40

60

80

100

% o

f R

es

po

ns

es

wit

h R

ati

ng

>=

42000-2001 78 68 55 79

2001-2002 88 77 76 89

2002-2003 90.4 82.3 82.9 89.5

2003-2004 81 74 72 82

2004-2005 90.31 70.77 73.68 85.04

2005-2006 80 70 70 85

Delivery Quality Service Overall

0

1

2

3

4

5

Ave

rag

e R

atin

g

2000-2001 3.95 3.86 3.91 3.85

2001-2002 4.27 4.13 4.2 4.27

2002-2003 4.35 4.21 4.38 4.31

2003-2004 4.05 3.88 3.88 4.1

2004-2005 4.16 3.88 3.97 4.18

2005-2006 4.09 3.88 3.91 4.18

Delivery Quality Service Overall

Customer Satisfaction trend

9

Integrating Quality Frameworks

No single Holy Grail – but a single flexible system

Wipro is an ideal company to profile when looking at quality initiatives because of its commitment, focus and experience on companywide, comprehensive quality processes and certifications

Reduced risk

Improved productivity

Reduced defects

On-time/ on-budget delivery

Better visibility

MaintenanceProduction support

& testingDevelopment

& Enhancement

CMMI BS 15000/ COPC

ISO

Six sigmaDSSS+ Six sigma

DMAIC

BS 7799

Sys

tem

Dir

ecti

on

Six sigmaDMAIC

Eff

icie

nc

y

Lean

AgileFle

xib

ilit

y

ISO – basic foundations of documented systems CMM & CMMI – software engineering practices Six sigma – customer focused data driven time bound improvements Lean – for org level waste elimination & continual improvement Agile – to build in flexibility and adaptability

Industry Acknowledgement

CMMLevel - 3

CMMLevel - 5

6 SigmaMethodologies for software

TL- 9000

PCMMLevel 5

CMMIISO 27001

ISO 9000

1997

On the road to continuous

improvement

1998

World’s first software services company to be assessed at SEI

CMM Level 5

2000

Strengthening

upstream

processes

2001

The best in people processes World’s first PCMM Level 5 company

Industry-specific quality standards

2003

Infused Statistical Rigor into Management

Software process achievement Award from IEEE USA

Orthogonal Arrays

DMAIC/ DSSS+ frameworks launched

SPA Award

Statistical Rigor

Lean

2005

Studied Toyota Manufacturing System )

Lean Pilots

Wipro Way

Agile

2006

CMMI 1.2 Global Assessment at Level 5

Domain specific standards

•World’s first Automotive SPICE

•AS9100

•SW68

CMMI 1.2 Level 5

2002

World’s first at Level 5 of CMMI ver 1.1

BS 7799

15,000+ employees trained in Six Sigma methodologies

328 certified black belts and 10 master black belts

Over 700 PMI certified consultants, highest in India

33% business parameters for the Wipro CEO relate to quality

Pioneers among Tier 1 Indian companies in establishing Agile capability

Lower maintenance cost

Increased productivity Schedule adherence

Lower development cost Lower schedule overrun cost

Right the first time

Efficiently

On time every time Phase containment

Among the first few organizations in the world, to be globally certified at Level 5 of SEI’s CMMI V 1.2 model released in Sep 06

Six Sigma and IT Service Management

What is Six Sigma

• Six Sigma is a disciplined, data-driven approach and a methodology for eliminating defects in any process -- from manufacturing to transactional and from product to service

3 ’s

6 ’s

11

11

Target Specification LimitTarget Specification LimitTarget Specification Limit

Higher thisnumber,

Lower the chance of

producing a defect

Higher

Probability

of Failure

Higher

Probability

of Failure

66807 Defects

Per Million

Opportunities

Much Lower

Probability

of Failure

Much Lower

Probability

of Failure

3.4 Defects

Per Million

Opportunities

Six Sigma Approach

Analyze

• Identify causes of variation and defects

Tools

• Cause and Effects Diagram

• FMEA

• Hypothesis Testing

• Scatter plot

Improve

• Determine solutions

• Implement solutions to show it works

Tools

• DOE

• Regression

Define

• Define Project Scope

• Define Project CTQ’s and Team

• Process baseline and improvement target

Tools

• VSM

• Voice of Customer

• Kano Analysis

Recognize

• Identify OFI’s

• Prioritize OFI’s

Tools

• Benchmarking and Surveys

• Value Stream Mapping

Measure

• Understand measurement system

• Establish performance parameters

Tools

• Pareto Charts

• Process Capability

• GR &R

Type IError

Type IIError

CorrectDecision

(1-

CorrectDecision

(1-

Control

• Put controls in place to maintains improvement over time

• Recommend the process and complete sign-off

• Document & Transition

Tools

• Control charts

• Visual Controls

• Control plans

3

Case for Action Learn about the “Y” Learn about the “X” Prove the Solution Sustain the SolutionIdentify & prioritize OFI

List of Processes Priortisation

Criticality Stability

Dependency Efficiency

Priortised Processes

List of Processes Priortisation

Criticality Stability

Dependency Efficiency

Priortised Processes

Indicator

Be

tter

Target

PERFORMANCE MEASURE

Actual

Indicator

Be

tter

Target

PERFORMANCE MEASURE

Actual

Applying Six Sigma to IT

Sample Metric Examples Metrics Description

Expected Outcome of Analysis

Incident

Management

Metrics

Trends in tickets being loggedPatterns in root cause

analysisFirst resolution rate

Identify areas for prevention of incidents

to reduce cost and increase “Customer”

(end user) satisfaction.

Availability

Metrics

End user availability statistics Application availabilityAlerts from monitoring tools

on capacity (CPU utilization

etc.)

Identify commonly occurring technical

outages and prevent recurrence

Identify areas of under capacity or over

capacity for capacity related issues

Service Level

Metrics

Trend of Service resolution

time (OLA) Operational Level

Agreements and trends.

Dependencies and identifying weak links

Identify areas of improvement in service

restoration.

End to end service level improvements.

Brief History of Lean

“Lean is the search for perfection through the elimination of waste and insertion of practices that contribute to reduction in cost and schedule while improving performance of products” [Lean Aerospace Initiative, MIT, WP99-01-91]

•Post WWII, Taiichi Ohno creates Toyota Production System (TPS)

•2004, TOY cuts car lead time to 12 months vs. 24-36 for competition

What is Lean ?

Expose & Remove Waste Unlock capacity

Reduce Variability Stabilize process, level load

Self-Organizing Process Visual Delivery and Self-control

Muda

(Waste)

Mura

(Variability)

Muri

(Overburden)

Muda

(Waste)

Mura

(Variability)

Muri

(Overburden)

Defects, ReworkDefects

Unused employee creativity

Documentation/unused artifacts, code that not part of final product, Unnecessary meetings

Over-processing

Equipment/resource not working, Waiting for info../ work completion

Waiting

Partially done work, not released for further activity,Inventory

Task Switching, walking, searching for info, manually done when it can be automatedMotion

Building the wrong thing, waiting for FTP/copy etcTransportation

Extra Features, Features that no one uses

Overproduction

Lean Lean categoriescategories

Application to Application to ITIT

Patterns and solutions identified not implemented

Types of Waste

Lean: Wipro View

Philosophy, Process, People & Partners*1.Base management decisions on a long term philosophy

2.Create process flow to surface problems

3.Use pull systems to avoid overproduction

4.Level out the workload

5.Stop when there is a quality problem

6.Standardize tasks for continuous improvement

7.Use visual control so no problems are hidden

8.Use only reliable, thoroughly tested technology

9.Go see yourself to understand thoroughly

10.Make decisions slowly by consensus; implement rapidly

11.Continuous organization learning thru Kaizen

12.Grow leaders who live the philosophy

13.Respect, develop and challenge your people and teams

14.Respect, challenge and help your suppliers

WT pioneers lean in SW services

Planning (2,3,4,10)Planning (2,3,4,10)

Architecture (8,10)Architecture (8,10)

Design (2,3,9)Design (2,3,9)

CUT (2,3,5,6)CUT (2,3,5,6)

System Test (2,3,6)System Test (2,3,6)

UAT (2,3,6)UAT (2,3,6)

* Liker, J. K. (2004). “Toyota way: 14 management principles from the world's greatest manufacturer”. New York, McGraw-Hill

TYING PROCESS AND BUSINESS SERVICE MANAGEMENT

• Adhoc

• Un-Documented

• Unpredictable

• Multiple Helpdesks

• Minimal IT Operations

• User Call Notification

Chaotic • Fight Fires

• Inventory

• Desktop Software Distribution

• Initiate Problem management

Process

• Alert and Event Management

• Measure Component Availability

(Up or Down)

Reactive

Maturity and Management Challenge

Level 1

Level 2

Level 3

Level 4

Level 5

Proactive

• Analyze Trends

• Set Thresholds

• Predict Problems

• Measure Application

Availability

• Automate

• Mature problem,

Configuration, Change, Asset

performance Management Process

• IT as Service Provider

• Define Services, Classes,

pricing

• Manage Costs

• Guarantee SLA’s

• Measure and report service

availability

• Integrate processes

• Capacity management

Service• IT as Strategic Business Partner

• IT and Business Metrics Linkage

• IT / Business Collaboration Linkage

improves business Processes

• Real-time Infrastructure

• Business Planning

Value

Tool Leverage

Operational Process Engineering

Service Delivery Process Engineering

Service and Account Management

Manage IT as Business

60%

30%

Source: Forrester Research; Adapted by Wipro

Proactive Service Management

Proactive

• Analyze Trends

• Set Thresholds

• Predict Problems

• Measure Application

Availability

• Automate

• Mature problem,

Configuration, Change, Asset

performance Management Process

Paretto Charts

LowerSpec. Limit

UpperSpec. Limit

Control Charts

Delayed and Breached SLA’s Business impact 82% of days

P&L SLA Breaches from June 4 – 18 June 2007 APAC

Failures and consequent reruns

Failures and reruns, last 6 months region wise

Failures and reruns, last 6 months region vise Failures and reruns, last 6 months region vise

Case Study – SLA Analysis

AverageDaily 35 failures

Globally4651Failures

23

Codes / tables missing Unaware of changes to the script Codes moved to production without proper testing. Syntax errors in the start and predecessor scripts. Missing or deleted output file, directory or paths. Missing arguments in the pre/post processing and scripts Jobs using a wrong script to launch Out of memory errors. Environment issues with DB Engine / CPU Power Job failure due to the inability to launch Hydra reports.

Frequent Incidents due to insufficient Root – Cause – Analysis (RCA)

Ref. APAC Failure ReportDaily SLA reportingDaily_status_update_20070621.xls

About 85% issues were closed without analysis.-Assessment based on 15% sample and recurring themes in interviews

81% Issues closed without RCA 19% Issues undergone preliminary analysis

Issues Closed13 Dec 06 to 20 June 07

Total Issues Raised 993

Restart as ‘Resolution’

53.9%

Follow up recorded for 9.8%

"Action needed" 2.1%

"Waiting for action" 1.3%

Paretto Analysis of Root Causes

Mapping the Analysis to ITIL

Reasons for Business Impact

Short term resolution Addressing ITIL® Process

¨ Missing or deleted output file, directory or paths.¨ Missing arguments in the pre/post processing and scripts ¨ Jobs using a wrong script to launch ¨ User authorization failure ¨ Job failure due to the inability to launch Hydra reports. X % of overall issues

¨ Define dependencies of batches on machines / files / directories / other elements¨ Define details of parent and / or child scripts; schedule batches based on dependencies¨ Create information repository available and update with every change implemented. ¨ Define scripting guidelines which make batches/scripts easy to maintain.

Configuration management(Priority 1)

¨ Code moved to production without proper testing. ¨ Code / tables missing¨ Unaware of changes to the script¨ Syntax errors in the start and predecessor scripts. Y % of overall issues

¨ Leverage configuration management to understand impact of change. ¨ Ensure all changes are applied to depending scripts/files/directories¨ Proper testing and review for each batch/script when released.¨ Keep record of all changes for quick resolution issues due to changes and for further RCA.

Change Management(priority 2)

¨ Out of memory errors.¨ Environment issues with DB Engine / CPU PowerZ % of overall issues

¨ Setup relation between load and run time at given compute size.¨Model the capacity requirements based on instrument mix¨ Analyze the business trends and predict compute capacity required.

Capacity Management(Priority 3)

Problem Management(Priority 2)

WHERE ARE OUR CUSTOMERS SPENDING

THEIR MONEY

Reality Check !!

• Definitions:– All Processes – holistic process solutions

– Transition to Support: ensuring support organization is ready to absorb new product. (Power change / release management)

Wipro and Compuware Partnership

Baton Solution

The BATON Solution

Vantage Service ManagerIT modeling, monitoring, visualization and data integration from Business Perspective

Proven Methodology and simplified data analysis leveraging structured

methodology and extensive intellectual property

Metrics Driven

Operational Improvements

Business service Analysis, Transformation &OptimizatioN (BATON)

Comprehensive solution that:

- Deliver results within short time

- Creates visibility from a business

perspective

- Metrics driven improvements

Framework

- Leverage powerful methodologies

with minimal training