Outsourcing Companies Leveraging Six Sigma


Posted by: meikah | 2 March 2009 | 10:13 pm

Many outsourcing companies have already used Six Sigma for their operations, and have enjoyed the benefits and savings.

In a recent article on DestinationCRM, companies that oursource services have been enjoying great benefits and at the same time able to do their business well, and satisfy customers.

But it’s not that easy to outsource. There must be a good system in place to be able to do that successfully. So, many use Six Sigma to make sure that operations are well underway.

According to the article:

Outsourcers are making good use of structured quality improvement processes based on Six Sigma principles to ensure the highest levels of technical support. These new high performance processes make it possible to continually review customer satisfaction data, incorporating the all-important “Voice of the Customer” that adds the human dimension to regular audits. Findings are funneled back into the organization to ensure that practice and process are performing as intended.

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Filed under: Outsourcing, Six Sigma, Six Sigma Organizations, Technology

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Six Sigma for Outsourcing Contracts


Posted by: meikah | 24 February 2009 | 8:54 pm

Outsourcing as a business grows bigger every day. It seems like there was no stopping this industry. But during this economic slump, the outsourcing business need to be more prudent.

Thus, outsourcing contracts need to be negotiated by the participating parties really well. A news article on iTNews, outsourcing contracts are now looking at continuous improvement methodologies like Six Sigma to be incorporated into the management structures governing outsourcing contracts. This is in an attempt to forge closer ties between the parties involved. Read more…

It’s good to know that Six Sigma can also be used for outsourcing contracts.

Has anyone of you had experience with using Six Sigma to sign outsourcing contracts?

Filed under: Outsourcing, Six Sigma, Six Sigma Organizations

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Six Sigma Improving Outsourcing Solutions


Posted by: meikah | 23 May 2008 | 2:33 am

According to the news on CNN Money, Genpact and ICG Commerce have joined forces to offer Source-to-Pay Solution.

Genpact, which manages business processes around the world, and ICG Commerce, a leading procurement outsourcing specialist, have collaborated to offer an unmatched “Source-to-Pay” outsourcing solution. The solution combines superior sourcing capabilities, spend analytics and ongoing category management with procurement and accounts payable capabilities to maximize business impact.

Source-to-Pay outsourcing offers companies a significant savings opportunity by reducing indirect spend which can be a significant portion of total company expenditures, while also delivering considerable process efficiencies. However, realizing this potential value requires the combination of two distinct competencies: deep sourcing and supplier market expertise and global purchase-to-pay process management.

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Genpact has been known for its Six Sigma-based process reengineering capabilities and operational excellence. While, ICG Commerce brings its global sourcing and category expertise and proven track record of helping clients achieve measurable savings on spend.

In other words, both companies are big on reducing costs and maintaining quality in their operations. To bring cost reduction and Six Sigma into the outsourcing industry is one effective business sense.

Filed under: Outsourcing, Six Sigma Organizations, Software/Technology

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Rath & Strong Takes Lean Six Sigma and Six Sigma to India


Posted by: meikah | 22 July 2007 | 6:47 pm

Rath & Strong lean six sigma Rath & Strong, the leading global provider of Lean, Six Sigma and Lean Six Sigma Consulting and Training solutions, recently announced that it’s going to expand its Lean Six Sigma, GE Workout, and associated programs to India.

In partnership with Six Sigma Alchemy of Mumbai, India, Rath & Strong will offer its full range of training and consulting services at a state-of-the-art facility in Mumbai, as well as at client sites as desired.

Big companies in India that are going to be benefitted by this move include Pfizer, DHL, Bharat Petroleum, Nortel, and Wyeth.

We all know India is one country that really competes in the global economy. Having Lean Six Sigma
in their processes will surely nail their position in the global market.

Source:
iSixSigma, Rath & Strong Expands Lean Six Sigma and Six Sigma Services Supporting Growth in India

Filed under: Call Center/BPO, Lean Six Sigma, Outsourcing, Rath & Strong, Six Sigma Organizations

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Six Sigma and BPOs


Posted by: meikah | 26 March 2007 | 4:07 am

Maybe because of the bulk of work in BPOs, you can’t help meeting quality problems. The services handled in BPOs are increasing from customer service, tech support, web development, transcription, even human resource, and finance. These services are intricate, and every move needs to be done with least number of defects, if not zero defect.

Thus, BPOs really stand to benefit from having a good quality system in place. Better even if they can use the Six Sigma methodology to their advantage. I don’t have the exact number of BPOs that are into Six Sigma, but I know these companies do: Sykes, QAI India Ltd., Infosys, and HCL Technologies Ltd.

Services Safari has a good discussion on why a BPO should adopt Six Sigma. According to the post:

Total Quality Improvement techniques work well when tasks are routine and repeated. These quality tools are well-suited for BPO actions as the workers are constantly performing routine tasks (e.g., payment processing, journal entries, invoice matching, etc.).

Initially, when some BPO providers get started, they take over a client’s processes and run them as-is. Rarely would this represent an optimal process design. This is the initial entry point for a quality improvement technique like Six Sigma. If this technique gets these processes to behave more reliably and at lower cost great.

Related Stories:
Six Sigma for Shared Services
Leveraging Lean Six Sigma in Business Process Outsourcing

*Photo credit: MorgueFile.com

Filed under: Benefits and Savings, Outsourcing, Software/Technology

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Six Sigma at 3M Brazil


Posted by: meikah | 26 November 2006 | 11:36 pm

Leading maker of consumer and industrial products, 3M Brazil continues to seek improvement in their processes in terms of delivering quality pallets to itheir customers as well saving on costs. To be able to do this, they have decided to outsource its select pallet management activities to CHEP, the world leader in pallet and container pooling solutions.

Right now, 3M is already using CHEP for storing and transporting their finished products and raw material to the head office in Sumaré, Sao Paulo. So far, 3M is happy with the potential savings (63%) they will be enjoying compared to having its own storage and transport equipment, and they are assured of CHEP exceptional service such as tracking and good-condition equipment.

How 3M decided on choosing CHEP, BusinessWire reports:

To determine whether CHEP services were appropriate for the companys operations, 3M used Six Sigma processes, solicited feedback from wholesale and superstore retail customers and conducted a comprehensive reference call at the Brazilian facilities of a leading global consumer products company. During the review process, managers identified a chance to decrease loss of pallets and reduce the quantity of renewed equipment derived by costumer returns.

Related link: 3M Recognition as a Sustainability Leader

Filed under: Benefits and Savings, Outsourcing, Six Sigma Organizations

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Six Sigma and Human Resource Outsourcing


Posted by: meikah | 18 September 2006 | 10:36 pm

Outsourcing is the name of the game these days. As companies battle for increased bottomline and less cost, many companies are seeing the value of outsourcing and operating only with some key workforce.

HRO Today Magazine shared the dilemma faced by people in Human Resource, especially when human resource is outsourced (HRO). The new term for this is recruitment process outsourcing (RPO). The issue was about what metrics to use, how to handle gargantuan data that go with staffing or recruiting, and how much will each recruitment cost. With the onset of RPO, many consultants are vying for those companies who decide to oursource their staffing needs. The slogan is always like, “reduce your organization’s cost-per-hire” and eventually optimize your metrics. Read more…

After all the discussion about cost-per-hire and metrics madness, I like how the article ended:

In the era of HRO, if you are using an outside multi-process BPO player or an RPO firm, you should insist they approach the staffing process with the same strategic perspective, level of care, and commitment to quality you’d want internally. Make sure they have the tools to provide a quality-of-process and a quality-of-hire. Also, measure the overall staffing costs and the cost to maintain organizational headcount (SOPQ) and judge the provider on that metric. Remember, cost-per-hire does not tell you anything, and the benchmarks are flawed at best. Perhaps you should hang a sign in the staffing department that reads “It’s about the Quality, Stupid.”

I agree, quality of hires should not be compromised for the sake of cutting down on cost and increasing bottomline. I’m thinking that Six Sigma may just play a major role in here. If you also think so, read my other posts on Six Sigma, Human Resource.

*Photo credit: MorgueFile.com

Filed under: Human Resource, Outsourcing

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Six Sigma Out to Eliminate Defects in BPOs


Posted by: meikah | 26 May 2006 | 12:31 am

Business process outsourcing companies (BPOs) are having an exciting time these days. The countries that are favored destinations in the world are celebrating because of the increasing demand for BPOs. You have India, Australia, China, Ireland, and the Philippines.

India has been thought to be the most preferred for reasons such as “availability of vast talent pool, good telecom infrastructure, conducive government policies, stable economic environment and, above all, cost arbitrage benefits.”

The country however is aware that the other countries on the list are fast catching up, especially in the IT/ITES/BPO sector. To maintain its lead, India needs to move up the value chain by ensuring superior quality of service. Where else would they turn but to Six Sigma.

It’s good that India recognizes the value of Six Sigma on their BPO operations. With Six Sigma, they can integrate various strategies and tools from statistics, quality, business and engineering with the adoption of new ones likely as its use expands to more business sectors and areas of application. They know they can use two Six Sigma roadmaps: (1) the DMAIC directed toward significant innovation or improvement of an existing product, process or service and (2) DFSS that centers on product, system or service design.

QAI India Ltd. Consulting presents the key reasons for the IT/ITES/BPOs and customer contact centers to implement Six Sigma.

  • Faster route to process maturity in a relatively less mature industry: The ITeS industry in India is still young and therefore still in the process of increasing their capacities and building delivery capability. However, the ‘Key Business Processes’ that they are handling for their customers are mature and stable. ITeS providers need to bridge this gap, and need to stay focused on quality and process management even as they grow at a frantic pace.
  • Metrics-based management: Operating in an environment where multiple ‘moments of truth’ occur with the clients every single minute and span of controls in the management structure are very high, it becomes imperative for the industry players to have a robust metrics system for measuring, tracking and managing the business.
  • Process control: ITeS providers need to maintain very tight control over their processes, for ensuring consistent customer experience.
  • A disciplined improvement path: Continuous process improvement is a key imperative in order to enhance service and quality at lower costs. SLA’s often demand year on year improvements in process metrics and cost reductions.
  • Customer orientation: Capturing the Voice of the customer – both the client whose process you are handling and the end customer.

Well, I heard about all sorts of stories in doing business with BPOs and contact centers both pleasant and unpleasant. I know that if they do decide to go Six Sigma, they’ll reap the rewards they deserve.

Sources:
Six Sigma Spells Success for BPOs
Six Sigma for BPO and Customer Contact Centers

Filed under: Outsourcing, Services, Tools/Toolkits

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