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2 Contents Operational Excellence with a human face applying production and psychological theories in the back office HCL a and P P r ocess : ss : A A S S napsh shot Cl i ent p prob oblem a and ou our s solution on w with B


  1. 2 Contents Operational Excellence with a human face – applying production and psychological theories in the back office HCL a and P P r ocess : ss : A A S S napsh shot Cl i ent p prob oblem a and ou our s solution on w with B Best P P r actices QCI – D L SHAH National Award on ‘Economics of Quality’ Presentation Un d er stand nding f ing failu ilur e – – Hawthrone ne E Effect V o i ce o e of t the E e E m ployee ees – – OE w without a H a Human Face HOW A p p lying le lessons ns f fr om C Cognit gnitiv ive D Dissonanc nce T Theory Hawthorne Effect makes initial suc cesses unsustainable and A p p lying t the l lessons f from om T Toyot a P P r od oduction on S S ys tem Cognitive Dissonance theory can leverage ‘behaviour’ to change ‘attitude’ V o i ce o e of t the E e E m ployee ees – – OE with a w a H Hum an F Face Toyota Production System help in turning an unsustainable success into a Su s tainabilit lity, f fina nanc ncia ial b l bene nefits, w wider a applic licabili ilit y sustainable rock-solid one 1 Basics HCL : A Snapshot HCL Technologies Financials* HCL Infosystems Hardware and System Software, infrastructure and Company Information US $ 5.0 billion integration BPO services Employees 60,000 India market focus Global market focus Delivery Facilities Offices in 170 cities USA, UK, Poland, 20 countries over 360 service centres Singapore, India h Sep *Trailing Twelv e M on ths (TTM ) as of 3 0 t tem be r, 2 009 Industry Accolades HCL BPO US$ 250 m (run rate) Performance and People Pioneers - Biggest Customers - 103 Professionals: Quality Quality 10,000 1 st among BPO Globally first BPO - People CMM Maturity Level 3 The Black Book of Outsourcing, 2009 � Process ISO 9001:200 0 Global Delivery Centers � Environment ISO 14001 � IT - ISO 20000:2005 , Kaiz en Leaders in Global Outsourcing 100 First Indian BPO - blended-shore operations IAOP (International Outsourcing Professionals),2008 � IT Security – ISO 27001 :2 0 0 5 OE CIO ’Bold 100 award’ First BPO - COPC Certification for collection services CIO-IDG India 2008 � SAS 70 Complaint BPR � OSHAS 18001:2007 Technology Award 4 in US 6 in UK 11 in India First Indian BPO in the TEM Market India Times BPO Industry Awards 2008 Processes: 170+ Multi-lingual Support Technology People CMM Maturity Level 5 Largest Engagement in Indian BPO Industry VPN Tunnel QAI 2009 8 European Languag s e 8 APAC Languages E ngl i sh C hi nese Fr ench Japanese Top 20-India’s Best Employers G er m an H ebr ew Northern Ireland Largest BPO Economic Times & Hewitt, 2007 S pani sh Tagol og I t al an i Japan D ani sh et nam ese V i S edi w sh E ngl i sh 6 th in Employee Satisfaction N or w egi an ndi H i Largest Telecom Services provider in Asia DQ-IDC,2007 Ensure IT 1

  2. Basics Converting a Purchase Order into a Sales Order PO TO SO Customers Orders Line Items 40 parameters Legacy system 2500 12,000 50,000 SO Sales PO 100,000 prod ucts No GUI 200+ factorie s in an unambiguous Sales Order M FG Customer 160 + countrie s Product Product Customer Customer Logistics Logistics Price Price Date Date Basic Basic Process Purchase Order Product Ship to Price PO date PO number from Buyer code Sold to INCO terms Request date Quantity Charge to Payment terms Cancel date Background information Seller code Facility Ship complete Received date Account code Client masters, Contracts UOM Ship to code Route Ship exact Entered date Desk code Conversion factor Sold to code Via Special instructions Promise date SO number from Units in inner pack Charge to code Export marks Expedite date PO type Inner pack in outer Domestic Contact number Expedite flag pack Delivery Agent Pack type Future date Load slip Process – Success Glide Path Basics PO TO SO SO Sales PO M FG Cus tom er ar OPTIM ISED y e 2009 full Cus tom ers Orders Line Item s 2500 12,000 50,000 G POST OFF SHORIN Customer’s problem 100,000 pro du c ts 200+ fac to rie s 160 + c oun tri es Customer Account Analysts lf 2008 – II Ha M ANAGED with our Quality f 2008 – I Hal ADHOC Pre Pre off-s hori ng – 9 5% , 2 4 h o u rs off 2007 E m ails ,efax ,EOC CAA M FG s ho ri CAA enters the ord er the m s el v e s ng Global CAA M ailbox Cus tom er Quality – measured as defectiv e orders ev ery week Process – Success Glide Path Microsoft Office 97-2003 Worksheet PO TO SO SO Sales PO NEUTRAL M FG Cus tom er ar OPTIM ISED y e 30 2009 full Cus tom ers Orders Line Item s 25 2500 12,000 50,000 G POST OFF SHORIN 100,000 pro du c ts 20 200+ fac to rie s 160 + c oun tri es 15 Customer Account Analysts lf 2008 – II Ha M ANAGED 93% 10 Challenges 5 Legacy system 2008 – I Hal f Bas ic proc es s - 92 %, 9 h ou rs No GUI ADHOC 0 Quality Order Entry Wk 1 Wk 4 Wk 7 Wk 10 Wk 13 Wk 16 Wk 19 Wk 22 Wk 25 Wk 28 Wk 31 Wk 34 Wk 37 Wk 40 Wk 43 Wk 46 Wk 49 Wk 52 Wk 3 Wk 6 Wk 9 Wk 12 Wk 15 Wk 18 Wk 21 Wk 24 Wk 27 Wk 30 Wk 33 Wk 36 Wk 39 Wk 42 Wk 45 Wk 48 Wk 51 CAA M FG Chec k 2008 2009 Pre Pre off-s hori ng – 9 5% , 2 4 h o u rs Internal External off 2007 E m ails ,efax ,EOC CAA M FG s ho ri CAA enters the ord er the m s el v e s ng Global Customer Satisfaction Survey – Feb 2008 – NEUTRAL CAA M ailbox Cus tom er 2

  3. Quality – measured as defectiv e orders ev ery week Basics Microsoft Office 97-2003 Worksheet NEUTRAL DISSATISFIED CSAT and QBR remarks Quality c ontin ues to b e a c hallenge on Order E n try Too m uc h v ari ab lity i fro m Phase I agent to agen t on orde r ac c urac y Need to balanc e th e le v e l of quality to m ak e educ ated dec is ion s 92% Im prov em ents in QA proc es s at HCL to det ec t errors “Managed” Solution M os t of the qu ali ty is s ue s s eem to be ba s i c e rrors with “Best Practices” 2008 2009 Customer Satisfaction Survey – June 2008 – DISSATISFIED Process – Success Glide Path Diagnostic approach PO TO SO Problems (Standard ones) Solutions (Best Practices) SO Sales PO Validation Incomplete Orders M FG Cus tom er ar OPTIM ISED Legacy system – Typo errors Peer review y e Process 2009 full Knowledge Transfer is missing Training Cus tom ers Orders Line Item s No individual performance measure Executive Score Card 2500 12,000 50,000 G POST OFF SHORIN 100,000 pro du c ts 200+ fac to rie s Oversight errors Peer Check People 160 + c oun tri es No discipline in “updating databases” Continuous Updating Bes t Prac tic es in to the p roc es s –97 % - 99 %, 15 h o u rs Customer Account Analysts lf 2008 – II Ha M ANAGED Peer Quality Validation Order Entry CAA Focus on task completion M FG Visibility to Quality Chec k Chec k Attitude Challenges Quality as a mere metric Quality as a matter of pride Legacy system f 2008 – I Hal Bas ic proc es s - 92 %, 9 h ou rs No GUI ADHOC Quality Entry Entry Order Entry M ailbox M ailbox Valid Peer CAA M FG Chec k Entry Valid Entry Peer Quality Quality 4 Pre Pre off-s hori ng – 9 5% , 2 4 h o u rs ? Entry Valid Entry Peer defe c ts off 2007 E m ails ,efax ,EOC CAA M FG s ho ri till now CAA enters the ord er the m s el v e s ng Entry Valid Entry Peer Global CAA M ailbox Cus tom er Quality – measured as defectiv e orders ev ery week Quality – measured as defectiv e orders ev ery week Microsoft Office Microsoft Office 97-2003 Worksheet 97-2003 Worksheet T e T e a m a m T e T e a m a m E x E x c e c e l l l l e n c e n c e e E x E x c e c e l l l l n c e e n c e e NEUTRAL NEUTRAL DISSATISFIED DISSATISFIED Phased implementation Phased implementation Operational Ex c e lle nc e Operational Ex c e lle nc e of 10 initiatives of 10 initiatives CSAT and QBR remarks Quality Driv e Quality Driv e Quality c ontin ues to b e a Order Validation Order Validation c hallenge on Order E try n Peer Chec k Peer Chec k Too m uc h v ari ab lity i fro m agent to agen t on orde r Ex ec utiv e Error His tory Ex ec utiv e Error His tory ac c urac y CN updation CN updation Need to balanc e th e le v e l of quality to m ak e M PDB im plem enta tion M PDB im plem enta tion educ ated dec is ion s Peer Rev iew - SPOC & Coupled upled Peer Rev iew - SPOC & Coupled upled 92% Im prov em ents in QA proc es s at HCL to det ec t Training & onli ne t es t Training & onli ne t es t errors Ex ec utiv e s c ore c ard Ex ec utiv e s c ore c ard M os t of the qu ali ty is s ue s s eem to be ba s i c e rrors Vis ibility to Quali ty Vis ibility to Quali ty 2008 2009 2008 2009 Customer Satisfaction Survey – June 2008 – DISSATISFIED “The specific improvements to OE Quality are very much appreciated 25-Oct-08 ” – Oct 2008 CSAT 3

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