LSRV Solutions is a new consulting firm formed by four entrepreneurs to help small and medium IT/ITES companies address project backlogs. The firm aims to analyze client processes, identify inefficiencies causing delays, and reduce backlog accumulation while improving quality and delivery. Market research found average backlogs are around 200% of desired levels, growing 15% annually. Providing consultation services has the lowest barriers to entry and highest margins. A feasibility study assessed the market, business models, management approach, technologies, and finances. It recommended the consultation model and concluded the venture was financially feasible with the required capital funded by directors and loans.

1. A Quality Improvement
Enterprise
Ideas for Today andTomorrow
Presented by LSRV Solutions
Team Members : Lokeshwara RaoT (94)
Shalini B (429)
Vanitha A Kiran
Radhika PC (277)

2. Purpose: Introduce LSRV Solutions
 LSRV Solutions (LSRVS), a consulting firm, is in the process of being
formed as a joint proprietorship owned and operated by four
industrious entrepreneurs from Bangalore East
Our Objective
 Support customers to address their outstanding pile-of- work by
providing business and technical solution to small and medium
InformationTechnology (IT) and InformationTechnology enabled
service (ITES) companies
 Analyze the process, identify areas of slack that results in delay of
work completion, and thereby reduce accumulation of project
backlogs, improve the quality, and timely delivery of the products to
their customers

3. Picture is Bright!
 Various Market studies we conducted shows that
average change request backlog in the company’s
database at a given interval of time is about 200%,
growing at an average of 15 % per year

4. How Did We Get Here?
 The transformation of the entire world into a boundary-less global village
resulted in increased competitiveness in providing quality, competitive
pricing, and timely delivery. As a result, the impact of backlogs and
turnaround time degradations can be far more damaging than in prior days
when products had advantageous and unique features.
 Unfortunately, most of the time, the solution applied is a boilerplate
combination of overtime, temporary labor, and temporary work
redistribution to other departments.This common strategy brings with it a
litany of problems, including reduced quality, inconsistent service, increased
errors, staff burnout often enough.
 Avoiding the problem by mandating that there will never be a backlog may
be ideal in concept, but is unlikely in practice due to the dynamic nature of
the IT and ITES industry and unpredictable nature of individuals.

5. Need for Project Management….
Exploratory Research to generate basic knowledge, uncover
environmental variables associated with a problem. Indicates backlog
is dynamic in nature at a given point of time. The additional work is
out sourced to other business location or service provider
Some of the benefits estimated are :
 Establishes accountability
 Manages cost
 Ensures on-time delivery
 Provides a conduit for communications
 Reduce scope creep
 Manages risk
 Increased quality of the delivery

6. x (t) y (t)
Where
x (t) Represents the set of inputs to the system.
y (t) Represents the set of outputs from the system.
f Represents system parameters or the transfer function.
E (t) Represents the environmental parameters.
t Represents any independent variable.
SYSTEM APPROACH
LSRV
Solutions
f
Controllable Inputs:
•Human Resources
Skilled, Semi skilled, Man hours
• Non Human Resources
Computer Hardware, Stationary,
Capital, Technology, office space
Uncontrollable Inputs:
1.Inflow of Change requests
2.Quality of Communication
3.Business driven demands
4.Statutory rules and regulation
5.Client Specific requirements
Environmental Factors
Fixed Constraints: Variable Constraints :
1. Budget 1. Client’s Affordable service charges
2. Client’s statutory rules 2. Lack/Change in manpower
and regulations 3. Inflation
4. Govt. Export/ Import Policy
5. Market driven surge in requirement
6. Availability of Backlog
7. Currency Exchange rate
Desired Output:
•Streamlining of existing functional
process
•Manage backlog effectively
•Provide consultation services
•Manage Human Resources
•Total revenue generated
Undesired Outputs:
•Quality error rate
•Super cession of requirements
•Non conformance to client’s
specific requirement
E(t)
y (t) = f [ x (t), E (t) ]

7. Available Options
 Consultation services are the simplest business
model and have the fewest barriers to entry.We will be
providing solution for client’s requirements at client’s
location.
 Onsite – Offsite services where business consultants
will be located at the client’s office, work alongside with
the clients requirements prepare feasible solutions. In-
house team will co-ordinate closely the trials, develop
customized model, perform testing, quality assurance
checks and transition the project for implementation.
The above alternative solutions meet the basic need,
however with varying degrees of efficiency in terms of
cost, time and resources requirements.

8. Feasibility Study for
Launching LSRV Solutions

9. WBS

10. Final Findings &
Recommendations
 Market Feasibility:The impact of backlogs is about 200% when
compared to desired backlog levels of 25%. LSRV solutions would position
statically for exploring the bigger portion of the Pie.
 Business model: Consultation services are the simplest business model
and has the fewest barriers to entry, with higher profit margins
demonstrated.
 Management Model: Based on the organization structure and financial
budget constraint, LSRVS attempts to use method driven by six P’s.
Technologies /Technical feasibility:Focus will on using available
technologies and techniques of the client.
 Financial feasibility: Investors of LSRVS mainly are the director board.
The estimated capital of Rupees 20,00,00 is required which is funded by
the director board and with little support from Bank loans.

11. "Joy is the holy fire that keeps our purpose warm and
our intelligence aglow." -Helen Keller

12. Backup Slides
 Business Model Feasibility
Option 1
Option 2
• The simplest and have the
fewest barriers to entry
• The solutions tend to be
lower than other business
models.
• We may tend to get
maintenance work, which
may dictate the tools we
may have to use.
• Owing and Reuse of
solution
• Creating solution
Modules for future
products development.
• Buying tools to match
with the customer
requirements etc.,

13.  Management Model
Option 1: Management method would be driven by six P’s
Option 2:The "Arrow" diagram Management method

14. Financial feasibility
Investment costs
Item Category Unit cost Quantity Total value
(`) Months (`)
Materials
Infrastructure 6,45,000
Rent Office Space about
500 Sq. ft./per month
Fixed cost
10000 12 120000
Furniture Fixed cost 30000 - 30000
Interiors Fixed cost 200000 - 200000
Computer Hardware Fixed cost 30000 4 Units 120000
Computer networking Fixed cost 20000 - 20000
Software licenses Fixed cost 10000 4 40000
Air Conditioner 2Ton Fixed cost 25000 2 50000
Electrical fitting Fixed cost 5000 - 5000
UPS Fixed cost 50000 - 50000
Printer Fixed cost 10000 1 10000
Company Registration Fixed cost 10000 - 10,000
Logistics Variable cost 20000 - 20,000
Labor/Personnel 11,10,000
Critical resources -2 People Variable cost 30000 12 750000
Offshore resouces-2 People Variable cost 15000 12 360000
TOTAL 17,85,000
Capital Requirements and strategy

15. Break Even Analysis
Option: 1. Calculate number projects to execute at break-even based on Man hours.
Selling price (SP) = ` 150 per Man hour.
SP = ` 12, 96,000/ Year
Fixed Costs (FC) = 1, 30,000
Variable Costs(VC) = ` 11,30,000 per year
The Number of projects executed (X) = FC / (SP – VC)
= 1, 30,000/ (12, 96,000 - 11,30,000) = 1 Project / Year (Approximate)
Break-even revenue (` ) = Break-even units X Selling price.
= 1 X 12, 96,000 = ` 12, 96,000
Option 2:
Selling price (SP) = ` 16,00,000 per year
Variable Costs(VC) = ` 11,30,000 per year
Fixed Costs (FC) = = ` 6, 55,000
The Number of projects executed (X) = 6, 55,000/ (16,00,000-11,30,000)
= 2 Projects / Year. (Approximate)
Break-even revenue (` ) = 2 X 16, 00,000 = ` 32, 00,000.

16. • Selling Price (SP) - Selling Price of services is arrived at customer affordable
price.
• Based on exploratory research and considering discount to enter market.
• Fixed Costs (FC) – These costs are considered those that remain constant
within the projected range of sales level.
• Variable Costs(VC) - Consists of costs that vary in proportion to sales level.
• The Number of projects executed (X) = Represents the number of projects
to be executed. For the purpose of a break-even calculation, it is assumed that
number of projects Billed during a period is equal to the number projects
executed upon during the same period.
• Break-even revenue ( ) = Break-even units X Selling price.