Tuesday 17 February 2009

Outsourcing vs. Lean

So, I am an LSS newbie. And my "desk book" at the moment is Pyzdek's Six Sigma Handbook
Therefore I am naturally calculating error rate in everything I see around.

Couple of days ago I heard this funny , let's say, "A". The company headquarters in Stockholm found that their British subsidiary processes are a great mess. They decided to roll out new ERP system, which would confirm to all corporate standards.

OK, here how the whole implementation worked:

  • Business Analysts from A's Stockholm office prepared a concept of requirements for the new ERP system. 
  • An external consultant from company B was hired for overall project and change management as well as functional design in collaboration with A's London office.
  • Upon the completion of the functional design it was handed to IT consultancy company C located in London. Its analysts and consultants prepared detailed software specification. 
  • Detailed specification was transferred to C's development office in Bangalore, where it was developed.
Well, back to my Six Sigma book: first thing I could remember is RTY
It's almost obvious that at every step of transformation there will be misreading, misunderstandings, errors, etc. Add language and cultural difference and opsss... No wonder, in this particular project deliverables were so little of what the senior management from Stockholm expected. 


Well, is there anybody who would still call Outsourcing Lean?
Aren't we making the development process too complicated, while trying to slash the costs?

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