Value Innovation Workshop

8/12/2019 Value Innovation Workshop

1/57

Proprietary and ConfidentialMarch 30, 2014 - 1 -

Benchmarking & Analytics

Name of the Presenter: Benchmarking and Analytics Team Date: June 1, 2011

Value Innovation Workshop Version 11.0


2/57


Introduction of Participants

Educational and Professional Background ----

Expectations from the Workshop ----


3/57


Introduction

Faculty ----

Kaizen based Value Innovation ----


4/57


What is Value?

Value = ---------------- ~ Cost

Function

Value = -----------------

Quality

Cost

Value is to be seen from the Customer or

Business perspective


5/57


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 logicalstructure- Albert Einstein.


6/57


Why Value Innovation?

Personal Growth

Self Improvement

Business Excellence

Customer Delight


7/57Proprietary and ConfidentialMarch 30, 2014 - 7 -

What is innovation?

Delighting features/ services/ products to createwow effect.

Enhanced convenience, reliability or availability

at least cost. Smarter way of doing things to enhance Quality

and Productivity with least efforts.



Why talk about Innovation ?

Rising customer expectations in terms of

Quality ,Delivery and Cost3- C: Customer ,

Competition, Change"

Michael Hammer Global competition

Proven technique for Quantum jumps in Business

results and customer delight



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



Kano model

Dysfunctional

Satisfaction

+

Functional

Dissatisfaction

Must Be

Critical Priority

One-Dimensional

Competitive Priority

Delighters

Innovation



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

Goals

Complete High Impact showcase

projects

Identify candidates for advance

training



Comprehensive Innovation Approach

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

1. Quick Hit Innovation/ Improvements (2 Days)(Through BPM, Kaizen, Small Steps and Simple Lean Tools)

2. Significant Innovation/ Improvements (5 Days)

(Advanced Lean Tools and TRIZ)

3. Breakthrough Innovation/ Improvements (15 Days)(Advanced TRIZ Tools, TOC and Six Sigma)

4. Paradigm Shift ( 45 Days)(Advanced Lean, TOC,TRIZ and Six Sigma)



Business Excellence @ iGATE Patni

6-Sigma, TRIZ & Kaizen Penetration

Role holder Numbers

Green Belt trained 4065

Green Belt certified 1528

Black Belt trained 434

Black Belt certified 213

Master black belt 5

Role holder Numbers

Green Belt trained 4065

Green Belt certified 1528

Black Belt trained 434

Black Belt certified 213

Master black belt 5

Supported by 10 Dedicated Full Time Black Belts

Research on Lean, Six Sigma, Kaizen, BPMCMMI, TRIZ and Simulation Models

Application of Orthogonal Array to optimizetesting efforts

White Paper presentations at World Congresson Total Quality, SEPG Asia, Lean Six Sigma

Summit (Singapore) and Six Sigma for IT (Chicago)

Thought Leadership

TRIZ Numbers

TRIZ Trained

Resources45

Certified TRIZ

Practitioners20

TRIZ Projects 4

TRIZ Coach 3

TRIZ Numbers

TRIZ Trained

Resources45

Certified TRIZ

Practitioners20

TRIZ Projects4

TRIZ Coach 3

Benefits ReapedOver 26 Million USD

Consultancy & Awards Consultant base of experienced practitioners with over 10

years of industry experience

Successfully executed Six Sigma Roll out assignments forclients 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



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 underInnovation / Turn around category at SCHMRD & SAC,USA Six Sigma

Excellence award



Need of Value Innovation for Individual

Innovation avenue for Personal Growth of teammembers

Innovation for Modernization of Mind

Innovation: Interesting ??????



Value Innovation (VI)

in

iGATE Patni Plus Maintenance Methodology



Value Innovation in iGATE Patni Plus



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 Customersbottom-line

Ensure repeat and enhanced business.


19/57


Benefits of VI

Value added delivery

Enriched iGATE Patni knowledge repository

Creation of VI Culture

Identified Business opportunities for Y-O-Y savings


20/57


Understanding Business Value of Customerprocesses

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


21/57


Understanding Business Value of Customerprocesses

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


22/57


VI Process flow

AnalyzeTechniques to be used forVI implementation

Implement & EvaluateImplement VI IdeasEvaluate Effectiveness of VI

IdentifyCustomer Pain AreasPotential for VI

Summary VI Potential document

Prioritize

VI Ideas for implementation

VI DashboardPresent & Use the informationBusiness benefits to Customer & iGATE Patni through VIiGATE Patni Knowledge Repository EnrichmentInputs to Sales & Mktg for future engagements

Business Benefit report

DefineProblem statementObjective for VI Implementation

Assessment report Baseline Business Value before VI implementation

VI Ideas file

Gather DataVI IdeasVI Enterprise Database


23/57


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


24/57


Summary VI Potential Document

Purpose: To capture potential for VI fromAssessment report/Interviews with Customer

Contents

- Customer Business details

- Application/system details

- Known customer pain areas

- Customer expectations

- VI Opportunities


25/57


VI Idea File

Purpose: To consolidate all VI ideas generatedthroughout the lifecycle of Maintenance project.

Contents:

- Ideas description

- Idea contributor

- Idea Classification for VI (Customer Facing/ Internal)


26/57


VI Dashboard

Purpose: To monitor progress of VI initiativethroughout 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


27/57


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 Ideasgeneration

- Investment Required for VI Implementation (e.g.. $ Value, Resources)

- Benefits ( tangible/intangible)

- Value on Investment (VOI)


28/57


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.


29/57


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


30/57


What is Kaizen?

- Any idea that leads to improvement

- Idea-implementation must not involve any cost orvery little resources

- Improvement may be in any area of quality,productivity, delivery, waste reduction, workingenvironment etc.

Kaizen Means


31/57


Some Quotes

The essence of Kaizen is gradual (even tiny) butcontinuous 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.


32/57


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.


33/57


Kaizen Process

There are three essential elements to the

Kaizen process

Awareness

Idea

CommencementAn idea that is

developed and put intoaction is more importantthan idea that exists only

as an idea - Buddha


34/57


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


35/57


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 throughprocess changes, simplification, mistake proofing,

automation

Merge/ combine process steps

Automate value adding steps to reduce cycle time


36/57


MUs

3 TYPES OF MUs

Muda - Wastage (Avoid all wastages)

Muri - Strain (Avoid Strains, work smarter) Mura - Errors (Do the things right first time)


37/57


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)


38/57


Some Kaizen Examples

Problem: It was taking lotof time to download filesfrom mainframe server asfiles could be downloadedone by one only

Solution: Applying theconcept of Performing

similar task together, a .net

application was developedwhich allows downloading

concurrently instead of oneby one

S


39/57



Problem: During data capturingfor metrics analysis, there werecases of missing the data ofsome projects which had notsubmitted the metrics, resultingin partial data

Solution: In the new tooldeveloped for data pulling frome-PMS, a Prompt messageappears showing the projects

which have not submitted themetrics. This allows user to takefurther action based oncomplete information

S K i E l


40/57



Detection Poka Yoke:Prompts projects that have not

submitted the metrics. This promptensures that users will not missconsidering some of the projects

Prevention Poka Yoke:Relevant drop downs with

dynamic filtering ensures users toselect the correct project, accountand BU. This ensures error free

data collation, analysis andreporting

S K i E l


41/57



Problem: Files in different layouts /

types (txt, xml, xls) were received forMonthly Tax-run from differentbusinesses. Production support teamhad to manually convert such non-standard format files into a standardinput layout format. This was time

consuming and error prone which coulddelay time-critical Tax-run process

Solution:Applying concept of Do itquickly and uniformly,a generic fileparsing job was written which reads the

layout of input-file from a layout-file andgenerates output as per the Standardoutput-layout file. This made task veryfast with uniform output

VI F F t


42/57


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

F A li ti A f K i


43/57


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

K i @ iGATE P t i


44/57


Kaizen @ iGATE Patni

Process Before Kaizen:

The query was run for throttling logic every 4 minutes on development environmentfor 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 CPUtime and cost @16,000 USD per month.

Financial Impact: 16 K USD per month X 12 months = $ 192 K per annum.

1. Query optimization to reduce mainframe CPU time



45/57



Process Before Kaizen:

Offshore & Onsite used to do manual replication testing of lotus notes databaseson 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

2. Automation Of replication testing for lotus notes



46/57



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

3.Preventing discount loss occurring on specific invoices



47/57



Problem:

To avoid the duplicity of entering the test results in Quality Centre and then again inexecution reports.

Team Affected:Regression QA team (offshore team size13 )

Solution:Modify the old macros which were initially implemented with TestDirector, 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 carriedthrough out the year) = $15600

4. Develop utility to fetch reports required by client from

QC (Quality Centre)



48/57



Problem:Reduce the efforts spent in downloading the Quality Centre patches.

Team Affected:All QA teams (offshore team size120)

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 (saytwice a year, once for the first time and the other for any upgrade) = $2400

5. Optimizing QC patch updates



49/57



Problem:DB2 control card creation is a redundant activity taking 15-20mins foreach card creation.

Team Affected:Mainframe enhancement teamSolution:This process has been automated by creating new Screen commands tocreate the DB2 cards and 8 different clones. Due to this, the same activity that usedto 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)

6. Automation Of DB2 Card Creation



50/57



Problem:Reducing effort spent on Tax-run file parsing processProblem Statement:Files in different layouts / types (txt, xml, xls) are receivedfor Monthly Tax-run from different businesses. Production support team manuallyconverts such non-standard format files into a standard input layout format. This istime 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 froma layout-file and generates output as per the Standard output-layout file. Futureinclusion of new input Tax-run file will require only a one-time generation of input-layout file incase its not in standard format. No code changes or manual parsingwould be required.

Status:Completed (Start Date: 1st June 07 & Completion Date: 20th July 07)Team Affected:ACSTaxes production support team (offshore team size1)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.

7. Automation of Tax-run file parsing process



51/57



Problem:Reduce Communication Cost such as Bandwidth and telephonesProblem Statement:The Communication cost is vital component of theinfrastructure cost that needed optimization.

Solution:Low cost call routing with multiple carriers, proliferation of Link lineusage, use of Microsoft chat service, bandwidth and its cost rationalization

Status:Completed

Cost Savings:28.4 Million INR.

8. Communication Cost Reduction



52/57



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

Problem Statement:The Transportation cost is significant component of theinfrastructure cost that needed optimization.

Solution:Enhanced cab utilization rate by optimizing number of shifts. Routeswere optimized to reduce travel distance and time.

Status:CompletedCost Savings:3.2 Million INR.

9. Transportation Cost Reduction

Effective Kaizen Attributes


53/57


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 businessresults

Questions


54/57


Questions

Break out : Kaizen Identification


55/57


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 otherNon value adding activities.

Each participant shall give minimum one idea.

Find actionable for the ideas.

Way Forward


56/57


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


57/57

THANK YOU !

Documents

Value Innovation Workshop