WIPRO TECHNOLOGIES:

THE FACTORY MODEL

VIVEK KUMAR
M1617
ABOUT WIPRO

The company was incorporated on 29th Dec. 1945.

Founded by: Mohamed Azim Hashim Premji.
Headquarter: Bengaluru, Karnatka
Services: Digital Strategy, Business Consulting and IT Services.
Start IT services in the year 1980.
Revenue: US$ 8.48 billion (2017)
Operating Income: US$ 1.70 billion (2017)
NS BALA

Vice President of the Manufacturing Solutions.

An engineer by training.
Designed system and application addressing procurement, vendor
development, and production process.
Studied the principle of lean manufacturing. Wondered lean could be
emulated in the knowledge based business of software development.
GLOBAL ECONOMY

Software services was a fast-growing industry in India.

US and Europe, as well as Japan discontinue there in-house activities that were
not cost-effective.
The export of software and IT services had brought close to $17 billion in 2004.
Companies of developed countries start Outsourcing and Offshoring of IT
Services.
WIPRO WORK

ODCs were created for customer-companies who outsourced entire business

division to Wipro. Remote office of the client. Wipro operated about 50ODCs.
Large Projects:
Those projects that could justify the overhead for setting up an
offshore engagement.
WIPRO`S CHALLENGE

Labour cost arbitrage alone was not enough to keep business booming.
Differentiate itself based on the quality and the delivery of its software
products, not the price of its labour.
Tuff competition by Infosis and TCS.
TRADITIONAL MODEL

Service Level Agreement (SLA) was created based on performance measure

and process model between Wipro and its Client before project began.
Performance measure: work-in-progress and field defects (rejection index),
estimated time, customer satisfaction, production support (response &
resolution time).
Development projects, maintenance projects, system conversion projects etc.
each had process models specific to the nature of work.
TRADITIONAL METHOD
FACTORY MODEL

The parallel process of the traditional model were combined into a single
stream.
Four fundamental process: Demand management, Centralized engineering,
Core factory process and infrastructure consolidation served each of the
individual projects requiring similar technical or functional solutions.
FACTORY MODEL
LEAN PRINCIPLES

Bala envisioned greater quality, decreased lead-time, reduction of waste, and

ongoing improvement within Wipro`s software development.
Continuous Improvement
Approach to People: Respect, Challenge, and Grow.
Process Flow and Eliminating Waste
ADVANTAGES OF THE FACTORY MODEL

10% cost reduction over traditional outsourcing model.

10-15% decrease in lead time.
Incoming stream of projects all of which were fairly similar and could be
solved using the same kind of tools.
It provide an umbrella which smaller project were grouped.
FACTORY MODEL AND NATLEX ELECTRONICS

Natlex had several projects in its pipeline which required very similar work.
Wipro created new web factory to handle these small projects.
Wipro could lower the maintenance cost of Natlex`s projects, at the same time
offering strategic flexibility and standardization.
Project was automatically executed according to pre-established standards.
Future expansion was easy because the overhead layers are already in place.
NS WALA PROBLEMS!

How Wipro should organize itself for this new Factory Model?
Could principles of lean manufacturing really work in software development?