Outsourcing X.0

OutSourcing X.0

Food, Shelter, Money, many out there know about outsourcing as much as they know about these aspects. Historically outsourcing has proven to be a significant way of doing business as the outsourcer gets to focus on their core business areas by offloading the aspects which are better done at a location and by people or organization(s) economically and quality wise apt

If I could recall relatively older success stories like the ‘Ford’ to more recent ones like DELL, companies have prospered by choosing the outsourcing conduit. There are very successful stories on the Insourcing and Multisourcing side too

From the need and the action came the processes to qualify the quantification. 

We have seen the CMMs, the CMMi’s, the ISOs, the SIX SIGMAs circumscribing Outsourcing in the last couple of decades making it a more stronger, indispensable and trusty course

With the upsetting economical climate in the last few months outsourcing, by few, has been translated being anecdotal which is alarming. This should in fact be the time for an organization with outsourcing potential to look for the right partner as companies which have the capability to deliver have stood up with time and have a great lot to offer. The key is though for both the buyer and the seller to evaluate each other unlike one evaluating just one in many cases till now

Increasingly as I find organizations wanting to find the key aspects of any project management process that would reduce the risk in an outsourcing assignment I feel like sharing with them these thoughts:

As the acceptance of Six Sigma has grown and is penetrating deeper into common business culture, a question arises when is the right time to determine when a process needs to be improved versus designed?

Let’s examine two established and proven methodologies Six Sigma DMEDI and DMAIC which would benefit companies from many industry backgrounds and people working on various projects of both technical and non-technical in nature if implemented for the right variety of projects. In many occasions organizations are convinced/sold on Six Sigma ‘DMAIC’ as a quick fix to internal organizational issues and problems. However, the true benefit Six Sigma can be realized when it is applied in scenarios involving building processes from scratch than fixing issues or processes

DMAIC (Define, Measure, Analyze, Improve, Control)

DMAIC is an analytical, data driven approach to eliminate weaknesses in active processes, products and services. DMAIC brings incremental improvements.

DMEDI (Design, Measure, Explore, Develop, Implement)

DMEDI is more of a creative approach to designing new robust processes, products and services. This roadmap is focused purposed to obtain significant competitive advantages or quantum leaps over current environments. However DMEDI Projects tend to be more time and resource intensive.

Enclosed below is a high level comparison of DMAIC and DMEDI Six Sigma methodologies

DMAIC	DMEDI
Define – Review project charter, Validate problem statement and goals, Validate voice of the customer and voice of the business, validate financial benefits, validate high level Value-Stream map and scope, Create Communication plan, Select and launch team, Develop project schedule and Complete Define gate	Define – Almost similar to Define in the DMAIC methodology
Measure – Value Stream map for deeper understanding and focus, Identify Key Input, process and Output metrics, Develop operational definitions, Develop data collection plan, Validate measurement system, Collect baseline data, Determine Process capability and Complete Measure gate	Measure – Define Customer’s needs using VOC and QFD, determine CCR’s
Analyze – Determine critical inputs, Identify potential root causes, Reduce list of potential root causes, Confirm root cause effect on output, Estimate impact of root causes on key outputs, Prioritize root causes and Complete Analyze gate	Explore – Develop Design concepts, and High-Level design
Improve – Develop potential solutions, Evaluate, select and optimize best solutions, Develop ‘To-Be’ value stream maps, Develop and implement pilot solution, Confirm attainment of project goals, Develop full-scale implementation plan and Complete Improve gate	Develop – Develop and optimize detailed design
Control – Implement mistake proofing, Develop SOPs, training plan and process controls, Implement solution and ongoing process measurements, Identify opportunities to apply project lessons and Complete control gate. Transition Monitoring/Control to process owner	Implement – Validate design with pilot, establish controls, full scale implementation

Both the methodologies bring strengths when used in a right environment, right situation, right industry on the right project (ideally when being built from the scratch as highlighted in one of the aspects above), with the right team. A thorough monitoring (checking and re-checking) should yield best results

We will look at how Insourcing, Outsourcing and Multisourcing are different in their approach and what benefits do they bring to a client in the coming posts