Post on 30-Mar-2015
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