Recipe for a Lean IT Service by Tata Consultancy Services - European Lean IT Summit

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Anju Saxena and Vivek Goel's presention at the European Lean IT Summit 2012. The success story of a service provider which partnered with its client, a global bank, to measurably improve customer satisfaction, quality of service and transparency in operations. 6 months after running a focused Lean project, a value chain of improved, transparent service delivery and 27% productivity savings were recorded.

More Lean IT presentations and videos on www.lean-it-summit.com

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  • Its interesting that the enthusiasm curve follows the Kübler-Ross curveElizabeth Kübler-Ross found that people react according to a specific pattern. There are two dimensions involved: time and moods. Over time, one sees changes in mood, and the available energy diminishes and increases.Denial, Anger, Negotiation, Dip, Exploring Possibilities, Integration
  • Recipe for a Lean IT Service by Tata Consultancy Services - European Lean IT Summit

    1. 1. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, France Fat To FitOur Recipe for a Lean IT Service Anju Saxena Vivek Goel 1
    2. 2. Copyright © Institut Lean France 2012Tata Consultancy Services at a Glance 43 years in business 8.2 billion US$ in FY11 226,000+ employees 99 nationalities 1000+ clients in, 55 countries % of revenues from repeat customers 98 -2-
    3. 3. Copyright © Institut Lean France 2012 A Major Global Bank PlansClient Context TCS selected as a strategic partner and agrees to a financial savings of more than 3 Million EUR 3
    4. 4. Copyright © Institut Lean France 2012Story on the Ground? 1 The Chosen Ones 2 The 5-day confidence eroding workshop 3 The “Plan”, and the world is not perfect 4 “LEAN is a waste of our time” 5 The new Avatar 6 100,000,000,000 bytes of data, 22 Tools 7 And never the twain shall meet 8 Building momentum 9 A promising start 10 Lasting Change 11 The Journey 4
    5. 5. Copyright © Institut Lean France 2012 1 The Chosen Ones “Lean for us!!!!! Ha Ha......we are already I am optimized and others TB.LRC.IT.LD@GG4&GG5?? should follow us.” Huh??????TCS Service Delivery Manager Someone from TCS Process Team 5
    6. 6. Copyright © Institut Lean France 2012 2 The 5-day confidence eroding workshop• Capture voice of • Define the Project customer Charter• Define the problem • Obtain client statement stakeholder approval 6
    7. 7. Copyright © Institut Lean France 2012 3 The “Plan” Sustainability Sep 2011 (15 weeks) • Monitor and Track KPI’s Jul 2011 • Sustain enthusiasm Develop & • Lean Champions Deliver • Knowledge Transfer • Select and run pilot • Track and evaluate pilot results Jun 2011 • Roll-out full solution Design • Setup the Performance Dashboard • Define Future stateMay 2011 • Design To-be process maps Define and • Define new roles & responsibilities Diagnose • Write the tactical implementation plan • Define Problem • Assess costs and benefits Statement • Identify opportunities 7
    8. 8. Copyright © Institut Lean France 2012 The Project Charter Resource Plan (% timeProblem Statement Scope commitment)Challenges in delivering quality service and • Incident Management, Problem Role %meeting user expectations. because of Management, Service Request Fulfilment and Knowledge Sponsor 15• Lack of adherence to processes Management supporting 3 Business• Dysfunctional processes Process 15 Processes• Unclear roles and responsibilities within the value • 2 offices in India Owner chain • 89 FTE Coach 40• Operational challenges in delivery of services Navigator 25• Lack of necessary skills and knowledge to deliver Out of Scope TCS services • Level 1 and Level 3 Processes (but 100 Designate include handoff‟s to / from them)Project Objectives • Applications which are being on- TCS 15-40Deliver improved efficiencies in the process boarded during the project SMEsthrough knowledge management, clear roles andresponsibilities , removing waste and increasing Measures of Success Baseline Targettransparency in the process CSI (Ticket Quality) 70% 95%Improve quality through increased first time Backlog of tickets 270+ 50resolution and quality of response End-user turn around time 7 days 2 daysBuild capable people through better trainings, KTsand handovers Productivity (Per FTE/ Ticket) 2.6 5 Knowledge Article Usage 20% 50% Team Morale 90% 8
    9. 9. Copyright © Institut Lean France 2012 ... And the world is not perfect• Great ambition• Many plans• Good start• Good peopleBUT challenges such as• Time commitment• Some stakeholders not aligned• .....and resistance to Change 9
    10. 10. Copyright © Institut Lean France 20124 Lean is a Waste of our Time Ah… just another initiative. There is NO need to take it seriously. It will die down on its own within few days. 10
    11. 11. Copyright © Institut Lean France 20125 The new Avatar: Madame Lean She will go away too 11
    12. 12. Copyright © Institut Lean France 2012 6 100,000,000,000 bytes of data, 22 Lean tools• Analyse the Voice of Customer and pain points Hmmm not fit• Capture current and future state process tools?!?• Analyse Value Will refine.• Capture cycle time• Analyse tickets, level of resolution, call back volume• Analyse demand-capacity alignment• Study team skills and variation• Analyse “Day in the Life Of” an Engineer• Analyse reports, meetings and KPIs• Study span of Control• Study interfaces with L3• Run focus group sessions• Identify Waste• Establish KPI baseline(s)• Estimate potential process improvement impact 12
    13. 13. Copyright © Institut Lean France 2012 ...Some ResultsDay-In-the-Life-Of L2 Incident 27% 3% 2% Service Request ENVA NVA Monitor 20% Overhead VA Knowledge Management Planning Report 4% Improvement Email / Phone 7% 3% Meeting 6% Waiting Miscellaneous 21% 0% 10% 20% 30% 20.00 Demand Cpacity Demand Capacity 15.00 Hours 10.00 5.00 0.00 00:0002:3005:0007:3010:0012:3015:0017:3020:0022:30 13
    14. 14. Copyright © Institut Lean France 2012 7 And never the Twain shall meet• Diagnosis or Mis- Diagnosis?• Negate or Negotiate solutions?• Agree and disagree future • Build bridges and dam the state & targets resistance • Identify Pilot owners and Pilot solutions • Refine cost/benefit analysis 14
    15. 15. Copyright © Institut Lean France 2012 8 Building momentum  Continual Improvement ITPMPeople Section Performance: Operational KPIs L2 Performance Team Morale Trends 15
    16. 16. Copyright © Institut Lean France 2012 9 A Promising Start (as on Sep 2011) 1 2 3 4 5 New Operating Knowledge and Fixed Tasks Production Out of Scope Model Performance Governance Management Management Interface FTEBenefit (24 11.61 FTE) 6.00 5.99 0.34 (3) (4) (6) PainPoints (55) (20) (22) Though #4 yields only 0.34 FTE it resolves 40 % of Pain 16
    17. 17. Copyright © Institut Lean France 2012 10 Lasting Change: (Transformation in 12 Months)Jan 2011 Jan 2012 • Response & Resolution time improved from 25 to 10 minutes • Resolution of incidents using KA improved from 20% to 63% • Backlog of Service reduced by 30% • 69% reduction of the escalation by the Bank 55% Productivity achieved & target financial savings in operational costs exceeded 17
    18. 18. Copyright © Institut Lean France 2012 ...Other Changes• High focus on KM and Skill development:  A cross-functional team: Have balanced skills to meet demand with focus on cross training/knowledge transfer  Track trainings and cross-skilling diligently• Improving performance  Backlog reduction: From 270+ to 10 tickets  Reduction in turn around time . End user resolution: 7 days to 1.5 days  High Team Morale  Improved productivity per engineer – through targets and tracking against these  Standard Operating Procedures and One Best Way implemented  Daily Shift Huddles• Culture of Innovation and Improvement  Demand Capacity analysis is done monthly and has helped create a dynamic rota system.  Huddles: 100 concerns raised; all closed but 3  Over 200 successes recorded and shared  Continuous Service Improvement culture. Team has embraced Lean; everyone thinks „How can I remove waste‟!• Several trained Lean Designates now acting as Lean Champions 18
    19. 19. Copyright © Institut Lean France 201211 The Journey Benefit Enthusiasm Time 19
    20. 20. Copyright © Institut Lean France 2012Thank youAnju Saxenaanju.saxena@tcs.comPrincipal ConsultantGlobal Consulting PracticeTCS 20

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