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BPO Case Study: HCLT delivers operational excellence and cost savings of usd 10 mn by applying production and psychological theories to back office processes
HCL delivers Operational Excellence and cost savings of USD 10Mn by applying production and psychological theories to back office processes BACKGROUND A multinational innovative manufacturer of auto components, medical supplies, adhesives, abrasives and other products, required quicker order entry processes and wanted the Turn Around Time [TAT] to be significantly lowered. The client was also looking for exceptional operational excellence and quality, and was keen to apply Best Practices to its order management process It turned to HCL to leverage its 24x7 operations to ensure quick order entry and to achieve 99% quality assurance. It was also focused on implementing HCL’s quality initiatives that would result in measurable financial improvementsCHALLENGES / OBJECTIVES SNAPSHOT Reduce process cycle time by implementing Best Practices and cutting- edge technologies Horizontal: Business Services Reduce Turn Around Time (TAT) Industry served: Manufacturing Ensure 99% expected quality in order entry Service Areas: Order Management & Shipment Tracking
THE SOLUTION CUSTOMER TESTIMONIAL “Congratulations on the successful completion of this Key theories in psychology (Hawthorne effect and Cognitive Dissonance very important and significant project. I sincerely Theory) and production (Toyota Production System) were applied to appreciate the teams efforts in delivering the back office processes, aligning good people with best practices improvements in Quality while also drastically Value added services in the form of ‘least cost’ routing in the logistics improving Turn Around Time. The insights provided by model, thereby achieving faster delivery the project are extremely valuable (perhaps even more Synchronized low cost solution to handle the entire SLA metrics and so than the actual dollar value benefits). In fact, I have provide ‘on-time every time’ visibility of order status challenged my team to look for opportunities to replicate your approach and outcomes with the Centralized data access along with dashboard reporting and analysis organization here in the US.” capabilities to help managers assess process performance metrics - Business Process Manager Implemented low cost automation rather than an ERP system, which yielded significant savings in the form of license cost, time to market, This relationship won the prestigious QCI-DL Shah and scalability National Award on Economics of Quality from The Leveraged key performance indicators and dashboards, and integrated Quality Council of India (QCI) and the DL Shah Trust. quality control The Award recognizes successful projects of an organization that have linked quality initiatives to real term financial gains and competitiveness. RESULTS / BENEFITS Cost savings of $10 million per year Total outsourcing cost < $1 million per year Turn Around Time (TAT) brought down from 15 hours to 3.40 hours 99.5 % quality assurance on defective orders • SOX compliance ‘Very Satisfied’ C-SAT score; Customer’s team looking at opportunities to replicate this approach and outcome Operational excellence and employee satisfaction in line with HCL’s Employees First (EF) value system
Hello, I’m from HCL! We work behind the scenes, helping our customers to shift paradigms and start revolutions. We use digital engineering tobuild superhuman capabilities. We make sure that the rate of progress far exceeds the price. And right now, 88,000 of us bright sparks are busydeveloping solutions for 500 customers in 31 countries across the world.How can I help you?www.hcltech.com