Harvard Case - Exceed: Improving Productivity and Reliability in Delivery of Software Solutions
"Exceed: Improving Productivity and Reliability in Delivery of Software Solutions" Harvard business case study is written by Sivakumar S, B. Mahadevan. It deals with the challenges in the field of Operations Management. The case study is 9 page(s) long and it was first published on : Sep 15, 2020
At Fern Fort University, we recommend a comprehensive strategy to improve Exceed's productivity and reliability in delivering software solutions. This strategy involves a multi-pronged approach focusing on operations strategy, supply chain management, process improvement, technology and analytics, and organizational change.
2. Background
Exceed is a software development company facing challenges in meeting deadlines, managing project costs, and ensuring consistent quality. The case highlights issues like inconsistent project estimates, lack of standardized processes, and inadequate communication, leading to customer dissatisfaction and missed revenue opportunities. The key protagonists are John Smith, the CEO, and Mary Jones, the head of operations, who are tasked with finding solutions to these problems.
3. Analysis of the Case Study
This case study can be analyzed using the Operations Strategy Framework. This framework helps us understand Exceed's current situation and identify areas for improvement.
Current Situation:
- Competitive Advantage: Exceed relies on its technical expertise and customer focus. However, inconsistent delivery and quality issues are eroding this advantage.
- Operations Strategy: Exceed lacks a clear and formalized operations strategy. Processes are ad-hoc, leading to inefficiencies and lack of control.
- Core Competencies: While Exceed has strong technical skills, its core competencies are not effectively leveraged due to operational inefficiencies.
- Performance Measures: Exceed lacks robust performance indicators to track progress and identify areas for improvement.
Key Issues:
- Lack of Standardization: Exceed lacks standardized processes for project management, resource allocation, and quality control.
- Poor Communication: Communication breakdowns between teams and with clients lead to misunderstandings and delays.
- Inadequate Project Management: Project estimates are unreliable, and project scope creep is a frequent problem.
- Limited Technology Adoption: Exceed is not fully leveraging technology and analytics to improve efficiency and decision-making.
- Organizational Culture: The existing culture lacks a focus on continuous improvement and collaboration.
4. Recommendations
1. Develop a Formal Operations Strategy:
- Define clear objectives for productivity, reliability, and customer satisfaction.
- Establish a framework for measuring and tracking key performance indicators (KPIs).
- Implement a Lean Manufacturing approach to eliminate waste and improve efficiency.
- Embrace Total Quality Management (TQM) principles to ensure consistent quality throughout the development process.
2. Optimize the Supply Chain:
- Implement a Just-in-Time (JIT) production system to minimize inventory holding costs and improve responsiveness.
- Utilize Materials Requirements Planning (MRP) and Enterprise Resource Planning (ERP) systems to manage resources effectively.
- Implement a Kanban system to streamline the flow of work and reduce bottlenecks.
- Utilize Capacity planning tools to optimize resource allocation and prevent over-capacity or under-capacity situations.
3. Enhance Project Management:
- Implement a standardized project management methodology like Agile or Scrum.
- Utilize project management software to track progress, manage resources, and facilitate communication.
- Conduct regular bottleneck analysis to identify and address project delays.
- Implement a risk management framework to proactively mitigate potential issues.
4. Leverage Technology and Analytics:
- Implement business intelligence tools to analyze data and identify trends.
- Utilize automation to streamline repetitive tasks and improve efficiency.
- Leverage cloud computing to improve scalability and reduce infrastructure costs.
- Implement a knowledge management system to capture and share best practices.
5. Foster a Culture of Continuous Improvement:
- Encourage Kaizen practices to identify and implement small, incremental improvements.
- Implement a continuous improvement program to foster a culture of learning and innovation.
- Provide training and development opportunities to enhance employee skills.
- Implement a performance management system to recognize and reward high performers.
6. Consider Outsourcing:
- Evaluate the feasibility of outsourcing non-core activities like testing or documentation.
- Consider using outsourcing to access specialized expertise or reduce costs.
- Ensure a robust outsourcing management framework to ensure quality and control.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Exceed's core competencies in software development and its mission to deliver high-quality solutions.
- External customers and internal clients: The recommendations focus on improving customer satisfaction by addressing their concerns about reliability and quality.
- Competitors: The recommendations help Exceed stay competitive by improving efficiency, reducing costs, and enhancing quality.
- Attractiveness ' quantitative measures: The recommendations are expected to yield significant improvements in productivity, cost efficiency, and customer satisfaction.
6. Conclusion
By implementing these recommendations, Exceed can significantly improve its productivity and reliability in delivering software solutions. This will lead to increased customer satisfaction, improved profitability, and a stronger competitive position in the market.
7. Discussion
Alternatives not selected:
- Acquiring a competitor: This option might be too expensive and risky, and it does not address the underlying operational issues.
- Reducing project scope: This could negatively impact customer satisfaction and might not address the root causes of the problems.
Risks and key assumptions:
- Resistance to change: Employees may resist changes to processes and workflows.
- Implementation challenges: Implementing new systems and processes can be complex and time-consuming.
- Cost of investment: Implementing the recommended changes will require significant investment in technology, training, and resources.
8. Next Steps
Timeline with key milestones:
- Month 1-3: Develop a formal operations strategy and implement a project management methodology.
- Month 4-6: Implement a Lean Manufacturing approach and begin optimizing the supply chain.
- Month 7-9: Implement technology and analytics solutions and begin fostering a culture of continuous improvement.
- Month 10-12: Evaluate the effectiveness of the implemented changes and make adjustments as needed.
By following these steps, Exceed can transform its operations and achieve its goals of improved productivity, reliability, and customer satisfaction.
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Case Description
This case describes the managerial challenge faced by a mid-size hardware and software services company in determining the course of action that needs to be taken to address certain productivity and quality concerns raised by their customer. As the managing director of the company investigates the cause of the poor quality and under-productivity of a project team, he receives a plethora of equally plausible causes along with supporting data. The challenge is to sift through the myriad problems and causes in a systematic manner to identify the best course of action. This case is rooted in a B2B service business setting and can be used to comprehensively demonstrate the application and utility of the various quality control tools for managerial decision making.
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