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)

Wipros Quality Journey

59000 Employees

2006

26197 Employees LEAN initiated

2004

16593 Employees

2003 2002 2001

CMMI Level 5 10500 employees

PCMM Level 5 & TL9000 9626 Employees

9934 Employees

2000

CMM Level 5 5148 Employees

1998

ISO 9001 Certification 4195 Employees

1995

The metrics driving Wipro

Customer Satisfaction trend
5
Average Rating

4 3 2 1 0
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 Delivery 3.95 4.27 4.35 4.05 4.16 4.09 Quality 3.86 4.13 4.21 3.88 3.88 3.88 Service 3.91 4.2 4.38 3.88 3.97 3.91 Overall 3.85 4.27 4.31 4.1 4.18 4.18

100

% of Responses with Rating >= 4

80 60 40 20 0

Delivery 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 78 88 90.4 81 90.31 80

Quality 68 77 82.3 74 70.77 70

Service 55 76 82.9 72 73.68 70

Overall 79 89 89.5 82 85.04 85

Integrating Quality Frameworks

Flexibility

Development & Enhancement

Maintenance

Production support & testing

Reduced risk

Agile

Efficiency

Improved productivity
Lean

Direction

Six sigma DSSS+

Reduced defects
Six sigma DMAIC Six sigma DMAIC BS 15000/ COPC ISO BS 7799

System

CMMI

On-time/ on-budget delivery

Better visibility

ISO basic foundations of documented systems CMM & CMMI software engineering practices Six sigma customer focused data driven time bound improvements Wipro is an ideal company to profile when looking at quality initiatives Lean for org level waste elimination & continual improvement because of its commitment, focus Agile to build in flexibility and adaptability and experience on companywide, comprehensive quality processes and certifications No single Holy Grail but a single flexible system
9

Industry Acknowledgement
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
2005 CMMI 1.2 Global Assessment at Level 5 2006

Pioneers among Tier 1 Indian companies in establishing Agile capability

2003

Among the first few organizations in the world, to be globally certified at Level 5 of SEIs CMMI V 1.2 model released in Sep 06
2000 1998 Worlds first software services company to be assessed at SEI CMM Level 5

2002 Worlds first at Level 5 of CMMI ver 1.1

2001 The best in people processes Worlds first PCMM Level 5 company

Infused Statistical Rigor into Management Software process achievement Award from IEEE USA Orthogonal Arrays DMAIC/ DSSS+ frameworks launched

Studied Toyota Manufactu ring System ) Lean Pilots Wipro Way Agile

Domain specific standards Worlds first Automotive SPICE AS9100

BS 7799

SW68

1997 On the road to continuous improvement

Strengthening upstream processes

Industryspecific quality standards

ISO 9000

CMM Level - 3

CMM Level - 5

6 Sigma
Methodologies for software

TL9000 PCMM Level 5 Efficiently On time every time Right the first time

CMMI ISO 27001

SPA Award

Lean

Increased productivity Schedule adherence Phase containment

Statistical Rigor Lower development cost Lower schedule overrun cost Lower maintenance cost

CMMI 1.2 Level 5

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 Target Specification Limit
Higher Probability of Failure 1 66807 Defects Per Million Opportunities

3 s
Higher this number, Lower the chance of producing a defect

Much Lower Probability of Failure

3.4 Defects Per Million Opportunities

6 s

Six Sigma Approach

Recognize
Identify & prioritize OFI

Define
Case for Action

Measure
Learn about the Y

Analyze
Learn about the X

Improve
Prove the Solution

Control
Sustain the Solution

Identify OFIs Prioritize OFIs

Criticality Stability

Define Project Scope Define Project CTQs and 3 Team

Priortised Processes

Understand measurement system

Identify causes of variation and defects Tools

Cause and Effects Diagram FMEA

Determine solutions Implement solutions to show it works Tools

DOE Regression

List of Processes

Priortisation

Dependency Efficiency

Process baseline and improvement target Tools

VSM Voice of Customer Kano Analysis
Indicator

Establish performance parameters

Put controls in place to maintains improvement over time Recommend the process and complete sign-off Document & Transition Tools
Control charts Visual Controls

Tools
Pareto Charts Process Capability GR &R

Tools
Benchmarking and Surveys Value Stream Mapping

Hypothesis Testing Scatter plot

Better

Actual Target

Correct Type II Decision Error (1- a) b Type I Error

Control plans

PERFORMANCE MEASURE

Correct Decision (1- b)

Applying Six Sigma to IT

Sample Metric Incident Management Metrics Examples Metrics Description Trends in tickets being logged Patterns in root cause analysis First resolution rate End user availability statistics Application availability Expected Outcome of Analysis Identify areas for prevention of incidents to reduce cost and increase Customer (end user) satisfaction. Identify commonly occurring technical outages and prevent recurrence

Availability Metrics

Alerts from monitoring tools

on capacity (CPU utilization etc.) Service Level Metrics Trend of Service resolution time (OLA) Operational Level Agreements and trends.

Identify areas of under capacity or over

capacity for capacity related issues 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 ?
Muda (Waste)

Mura (Variability)

Muri (Overburden)

Expose & Remove Waste Reduce Variability

Unlock capacity

Self-Organizing Process

Stabilize process, level load

Visual Delivery and Self-control

Types of Waste
Lean categories
Application to IT
Extra Features, Features that no one uses Building the wrong thing, waiting for FTP/copy etc
Task Switching, walking, searching for info, manually done when it can be automated Partially done work, not released for further activity,

Overproduction Transportation Motion Inventory Waiting Over-processing Defects Unused employee creativity

Equipment/resource not working, Waiting for info../ work completion Documentation/unused artifacts, code that not part of final product, Unnecessary meetings Defects, Rework Patterns and solutions identified not implemented

Lean: Wipro View

Philosophy, Process, People & Partners*

1.Base management decisions on a long term philosophy

WT pioneers lean in SW services

Planning (2,3,4,10) Architecture (8,10) Design (2,3,9) CUT (2,3,5,6) System Test (2,3,6) UAT (2,3,6)

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 * Liker, J. K. (2004). Toyota way: 14 management principles from the world's greatest manufacturer. New York, McGraw -Hill

Monitoring & Control (7,11)

TYING PROCESS AND BUSINESS SERVICE MANAGEMENT

Maturity and Management Challenge

30%
Level 4 Level 5

Value
60%
Level 3 Level 2 Level 1

Service 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

IT as Strategic Business Partner IT and Business Metrics Linkage IT / Business Collaboration Linkage improves business Processes Real-time Infrastructure Business Planning

Reactive
Fight Fires Inventory Desktop Software Distribution Initiate Problem management Process Alert and Event Management Measure Component Availability (Up or Down)

Chaotic
Adhoc Un-Documented Unpredictable Multiple Helpdesks Minimal IT Operations User Call Notification

Guarantee SLAs
Measure and report service availability Integrate processes Capacity management

Manage IT as Business

Service and Account Management

Service Delivery Process Engineering Operational Process Engineering Tool Leverage 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
Lower Spec. Limit

Paretto Charts
Upper Spec. Limit

Control Charts

Case Study SLA Analysis

Delayed and Breached SLAs
Business impact 82% of days
Average Daily 35 failures

Failures and consequent reruns

Globally 4651 Failures P&L SLA Breaches from June 4 18 June 2007 APAC Failures and reruns, last 6 months region wise

Failures and reruns, last 6 months region vise

Failures and reruns, last 6 months region vise

Paretto Analysis of Root Causes

About 85% issues were closed without analysis. -Assessment based on 15% sample and recurring themes in interviews
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)

Issues Closed 13 Dec 06 to 20 June 07 Total Issues Raised Restart as Resolution Follow up recorded for "Action needed" "Waiting for action" 993 53.9% 9.8% 2.1% 1.3%

Ref. APAC Failure Report Daily SLA reporting Daily_status_update_20070621.xls

81% Issues closed without RCA 19% Issues undergone preliminary analysis
23

Mapping the Analysis to ITIL

Reasons for Business Impact
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 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

Short term resolution

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. 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. 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.

Addressing ITIL Process Configuration management (Priority 1)

Change Management (priority 2)

Problem Management (Priority 2)

Out of memory errors. Environment issues with DB Engine / CPU Power Z % of overall issues

Capacity Management (Priority 3)

WHERE ARE OUR CUSTOMERS SPENDING THEIR MONEY

Reality Check !!

30%
25% 20%

27%

15% 15% 10% 5% 0% 8% 8% 8% 6% 5% 4% 4% 4% 2% 2% 2%

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 Manager IT modeling, monitoring, visualization and data integration from Business Perspective Metrics Driven Operational Improvements Proven Methodology and simplified data analysis leveraging structured methodology and extensive intellectual property

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