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?