La Niaque A Vehicle Drives Top Notch Performance

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1 A Complete Process Excellence Life Cycle S. Rangaraj* & B. Jayadevan** Key words: Active Process Management, Command Center, Global Process Model, Diamond KPI, Overall Asset Effectiveness, Benchmarking. Abstract Quality, Efficiency, Cost and Control are the four key drivers in the BPO industry to ensure the delivery of high quality services to the client. The practical challenge for the service provider, also called the 3rd Party in the BPO industry is that organization will not have the complete control on the end to end process nor it will have the option to provide the inputs to drive process excellence to clients. Active Process Management (APM) and Command Center will help the service industry to drive the end to end process excellence through structured and standard methodology. APM is a step by step approach developed by Delivery Excellence team to drive the process improvements. The methodology covers process standardization, process industrialization, efficiency & effectiveness improvement and benchmarking. Command Center is the single source for publishing the performance metrics and process control scorecard. It is a one stop shop for Operations, Business Executives and Clients in terms of publishing contractual, business and operational metrics and base source to identify the improvement opportunities This paper will discuss on how Capgemini conceptualized APM and Command Center and improved maturity level over period of time. Active Program Management Speed to Value in Delivery Active Program Management (APM) is a Capgemini BPO program that provides base to the Operations for continuously improving the delivery with high-quality services. APM is step-by-step methodology that starts with process compliance along with building quality culture in the organization and identifies the potential improvement opportunities in the process with the support of Quality tools and methodologies including Benchmarking for driving continuous process improvement. Global Process Model Innovation in Outsourcing Solution GPM enables the transformation of client process rather than following traditional approach of lift & shift model. Our unique and innovative approach to transforming processes is made up of the best practices backed up by comprehensive database of over 2000 defined world-class processes representing global and industry best practices. *Director Quality and **Engagement Manager Quality; Capgemini Business Services (India) Limited 100 Capgemini Business Services (India) Limited

2 Active Process Management Value Creation External Benchmarking Process Re-Engineering/GPM* alignment Journey towards world class Structured Tollgate Reviews Develop Control Measures to sustain imrovements Drive quick Kaizen Train & Develop Lean Six Sigma Project charter Baseline/Benchmarking the Diamond KPI performance and define the Targets/Goals Identify & Prioritize improvement areas Daily/Weekly/Monthly Volume Analysis to understand the Volume/Effort contributor and develop Forecasting Develop Daily/Weekly/Monthly Monitoring dashboards for Diamond KPI* Rescurce Planning Associate Capacity vs. Utilized Daily OAE* Define the input/process/output Metrics Diamond KPI* Skill set mapping of Associates Define the Standard time for Core & Non-Core Activities VSM Develop Value Stream Mapping Identifying the Core & Non-Core Activities Command Center * Diamond KPI Efficiency, Effectiveness, Value and Control + OAE Overall Asset Effectiveness = Parallel Activity + GPM Global Process Model Fig. 1: Process Management A Step-by-Step Methodology of driving process excellence The GPM consists of defined group of processes representing global and industry best practices designed to be implemented as a standard across clients, with variations required regionally. AS-IS Processes Mappings and analysis to understand current client process. Comparison of AS-IS process of client to GPM to identify process and technology gaps. Design of Client GPM Process to align with world best-in-class process and technology model. 101

3 Assessment of benefits for adopting GPM model in existing client process. Preparation and Implementation of GPM through step-by-step documentation process. 7 levels of documentation beginning from Level 0 through Level 6 end-to-end. Benefits Implementation of GPM results in benefit of over 30% value realization within 1.5 years of process migration apart from benefit of labor arbitrage in outsourcing. Benefits include: Eliminate, Industrialize and Permanently Improve. Aligned to industry best practice. Standardized processes, Improve visibility easy to benchmark. Productivity savings through improved efficiency and effectiveness. Improved knowledge retention and Reduced people dependency. Quality Week Building Quality Culture APM drives quality through Quality Week which is the combination of cultural driven exercise to spread the quality awareness and identifying process transformation opportunities in the process. Fig. 2: Quality Week Cultural driven exercise for process improvements The objectives during Quality Week are: 102 Training entire team on identifying process improvement opportunities and 7 basic Quality tools Forming team and developing Value Stream Map (VSM) for each activity Identifying process leakages (Lean concept Waste ) Displaying VSM in the dedicated room called WAR room Brainstorming session with team in identifying improvement ideas Registering ideas in iportal Single Repository for Process Improvements Converting ideas into Kaizen, Lean and Six Sigma projects Capgemini Business Services (India) Limited

4 Results Till Date Saved around 10 Million Euros over the period of last 3 years over process improvement ideas registered in iportal Driven more than 5000 projects in the combination of Kaizen, Lean and Six Sigma 100% of people are trained on Yellow Belt, 35% Green Belt and 12% Black Belt. Benchmarking and Innovation During the stabilized phase of process, APM focus on benchmarking and innovation. APM developed specific methodology in terms of benchmarking through internal available resource and support from external agency. Effectiveness 4 Value Efficiency Control Fig. 3: Diamond KPI Four dimensional metric blocks for internal benchmarking Internal Based upon monthly Diamond KPIs results reported, engagements are compared with each other. This leads to engagements ranking and determination of top, median and bottom performers in respect to Efficiency, Effectiveness, Value and Control dimension. The charts shows engagement s ranking whereby 4 means top performer and 1 the bottom one. It has helped us to drive improvements and share best practices across engagements. APQC Benchmark (% of invoices processed correctly) % 99.14% Percentage Fig. 4: External Benchmarking Exercise 103

5 External The data collected is also used for external benchmarks. Engagement s data is confronted with external data to determine the performance vis-à-vis our competitors. Command Centre Single Version of Truth to Stakeholders Service Reporting Business Analytics Quality Assurance Communication Command Centre is a single version of truth to our stakeholders. Journey started with one of the established client in February 2010 with 1 resource publishing 1 metric on daily basis. In 9 months team was successful in designing new metric model, viz. "Diamond KPI " to measure operations in terms of efficiency, effectiveness, value and Control. We have a structured process of developing the metrics in partnership with clients. Today team size of 80 employees across Capgemini India BPO publishes over 600 metrics across all engagements. The key metrics are Overall Asset Effectiveness to measure Individual Performance, Diamond KPI for Process Performance and Benchmarking for Comparing Industry Standards Overall Asset Effectiveness (OAE) Daily OAE Performance Report Opening Functional Theoretical Useful Utilization Ratio Performance Ratio Quality Ratio OAE % 88% 99.30% 67.0% Fig. 5: OAE Dashboard 104 Capgemini Business Services (India) Limited

6 OAE is a replica of Lean metric OEE (Overall Equipment Effectiveness). Capgemini is the first organization to implement this concept in BPO environment. We measure people who are our assets in 3 dimensions (1) Utilization (2) Productivity and (3) Service Quality. With the implementation of OAE across engagements, Capgemini OAE ratio improved by 15 points (from average OAE 63.5% to 78%) during Diamond KPI Diamond KPI is a unique four dimensional metrics model measuring engagement performance in terms of Efficiency, Effectiveness, Value and Control for the engagement. Efficiency metrics includes and Cost of the process Effectiveness is measuring Quality of the output Value metrics includes business benefits such as corporate alignment, market position etc. Control includes policies and procedures for engagement for effective response to risk. Gold Team Gold team is the group of people who have shown exceptional performance in the team. Command Centre team measures Takt time (Lean tool for measuring resources required to meet customer demand) during the beginning of the shift and communicates to Operations Team Leaders about number of resources required vs. number of resources available. Exceptional performers are moved out from regular operations and provided the responsibility of driving continuous improvement activities such as developing macros, updating documents, driving Kaizen projects etc. This initiative helped us grooming potential leaders for future. Conclusion Organizations with high results and focussed processes require standard and strucutred methodology to drive the excellence programs and achieve results. APM and Command Center methodology discussed in the article will ensure to evaluate the maturity of process and achive the process excellence targets. Acknowledgements Our sincere thanks to all the people who have contributed to and worked on this project during last six months. 105