Applying Six Sigma in Software Companies - siddhesh trivedi
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This document discusses applying Six Sigma principles and methodology to improve quality and processes in the software industry. It notes that while the global software market is large and growing, many software projects fail or go over budget. Six Sigma is presented as a solution to address the high costs of defects and rework. The methodology focuses on customer satisfaction and eliminating defects through statistical analysis and process optimization. Implementing Six Sigma could help software companies improve quality, reduce costs and cycle times, increase productivity and customer loyalty.
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Applying Six Sigma in Software Companies - siddhesh trivedi
- 1. Applying Six Sigma in Software Companies… { For Quality & Process Improvement Compiled By- SIDDHESH TRIVEDI MBA Tech – IT – Operations
- 2. Software Industry Scenario… • Approximately 6567 software companies in India & 36575 worldwide. • According to DataMonitor, the global software market has a value of US$ 447 billion, an increase of 40.5% since 2008. • As per NASSCOM the total size of IT & Software Services in India is approximately $ 33.5 billion (~ INR 1,50,000 crores).
- 3. Cont.… • Out of 36575 Software companies • Are prone to Defects in their service. • Software Errors Cost U.S. Economy $59.5 Billion Annually Practicing Six Sigma for their Process Improvement
- 4. 40% Software Industry… Projects Succeed Fails Outright Challenged by Cost overruns This leads to Operational problems ie: • Product quality problems • Process complexity problems • Process effectiveness problems • Process efficiency problems • Estimation problems • Execution problems, and so on.
- 5. Due to this problems… Companies pay 80% of the cost in a SE projects, which is after delivery corrections… 90% of the unsatisfied customers will not make business with you again Whereas, 95% of the unsatisfied customers will remain loyal if their complaints are handled fast and well.
- 6. To overcome this problems… • Connection between Quality & Six Sigma Quality • More software companies must implement Six Sigma • This will result in: Manufacturing Software More satisfied and loyal Quality Quality customers Lower employee turnover and sick leave rates Six Sigma Process A stronger market position (Motorola 1986) Improvement Shorter lead times Opportunities for capital release Reduced costs due to waster and rework Six Sigma? Higher productivity
- 7. The Solution: Six Sigma A business philosophy & strategy adopted by companies who are recognized leaders in world class quality. A Fact based decision making. An integrated part of a management system. A Customer focused determination. Continuous improvement methodology used to improve business processes and products. Utilization of powerful statistical tools. Statistical measure of process capability.
- 8. Company must improve continuously…
- 9. What will Six Sigma do..? • Approach can help any business to improve customer satisfaction, quality and on-time delivery. • Provides the tool to identify and eliminate defects, and to optimize processes for reductions in cycle time and cost. • It focuses on: (1) what the customer values and (2) developing well-defined requirements.
- 10. Future Recommendation… These areas are related to Six Sigma and are very interesting for further research: Comparing Six Sigma with other quality techniques. Blending Six Sigma with CMMI. Six Sigma for small sized companies. Lean Six Sigma.
- 11. Bibliography… • http://www.fundoodata.com • Software Bug : Wikipedia • Campbell-Kelly, Martin. A History of the Software Industry • http://www.toc-lean.com • www.DataMonitor.com • www.nasscom.com • “What is Six Sigma” – by Pete Pande, Larry Holpp.
Editor's Notes
- There is lack of quality provided by the software companies in their services to customers, due to their operational and process complexity problems which results in business fails to meet customer needs, and begins to lose customers and internal support.
- As per NASSCOM the total size of IT Services in India in 2011 excluding hardware is approximately $ 33.5 billion (~ INR 1,50,000 crores).There is approximately 6567 software companies in IndiaAccording to DataMonitor, the global software market has a value of US$ 447 billion, an increase of 40.5% since 2008.
- Many companies pay a lot in correction, i.e. 80% of the cost in a Software Engineering (SE) project is commonly related to after-delivery corrections. And we also found [18]: Unsatisfied customers tell in average 10 persons about their bad experiences. 12% tells up to 20 other persons. Satisfied customers tell in average 5 persons about their positive experiences. It costs 5 times as much to gain new customers than keeping existing ones. Up to 90% of the unsatisfied customers will not make business with you again, and they will not tell you. 95% of the unsatisfied customers will remain loyal if their complaints are handled fast and well.
- The need for Six Sigma often becomes clear when a business fails to meet customer needs, and begins to lose customers and internal support. When this happens, Six Sigma could mean survival.
- 3) Six Sigma approach can be well adopted by large and medium sized companies. These companies have good recourses, time and budget. But it would be interesting to find the applicability of Six Sigma in small sized companies. 4) Lean Six Sigma is an improvement methodology. It combines lean manufacturing and Six Sigma. The focus of Lean is on speed and the focus of Six Sigma is on quality. It would be very interesting to have discussion on the combination of Lean and Six Sigma.