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IISc Project Presentation

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Radhika Puthiyetath
Radhika Puthiyetath

LSRV Solutions is a new consulting firm formed by four entrepreneurs to help small and medium IT/ITES companies address project backlogs. The firm aims to analyze client processes, identify inefficiencies causing delays, and reduce backlog accumulation while improving quality and delivery. Market research found average backlogs are around 200% of desired levels, growing 15% annually. Providing consultation services has the lowest barriers to entry and highest margins. A feasibility study assessed the market, business models, management approach, technologies, and finances. It recommended the consultation model and concluded the venture was financially feasible with the required capital funded by directors and loans.

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A Quality Improvement Enterprise Ideas for Today andTomorrow Presented by LSRV Solutions Team Members : Lokeshwara RaoT (94) Shalini B (429) Vanitha A Kiran Radhika PC (277)
Purpose: Introduce LSRV Solutions  LSRV Solutions (LSRVS), a consulting firm, is in the process of being formed as a joint proprietorship owned and operated by four industrious entrepreneurs from Bangalore East Our Objective  Support customers to address their outstanding pile-of- work by providing business and technical solution to small and medium InformationTechnology (IT) and InformationTechnology enabled service (ITES) companies  Analyze the process, identify areas of slack that results in delay of work completion, and thereby reduce accumulation of project backlogs, improve the quality, and timely delivery of the products to their customers
Picture is Bright!  Various Market studies we conducted shows that average change request backlog in the company’s database at a given interval of time is about 200%, growing at an average of 15 % per year
How Did We Get Here?  The transformation of the entire world into a boundary-less global village resulted in increased competitiveness in providing quality, competitive pricing, and timely delivery. As a result, the impact of backlogs and turnaround time degradations can be far more damaging than in prior days when products had advantageous and unique features.  Unfortunately, most of the time, the solution applied is a boilerplate combination of overtime, temporary labor, and temporary work redistribution to other departments.This common strategy brings with it a litany of problems, including reduced quality, inconsistent service, increased errors, staff burnout often enough.  Avoiding the problem by mandating that there will never be a backlog may be ideal in concept, but is unlikely in practice due to the dynamic nature of the IT and ITES industry and unpredictable nature of individuals.
Need for Project Management…. Exploratory Research to generate basic knowledge, uncover environmental variables associated with a problem. Indicates backlog is dynamic in nature at a given point of time. The additional work is out sourced to other business location or service provider Some of the benefits estimated are :  Establishes accountability  Manages cost  Ensures on-time delivery  Provides a conduit for communications  Reduce scope creep  Manages risk  Increased quality of the delivery
x (t) y (t) Where x (t) Represents the set of inputs to the system. y (t) Represents the set of outputs from the system. f Represents system parameters or the transfer function. E (t) Represents the environmental parameters. t Represents any independent variable. SYSTEM APPROACH LSRV Solutions f Controllable Inputs: •Human Resources Skilled, Semi skilled, Man hours • Non Human Resources Computer Hardware, Stationary, Capital, Technology, office space Uncontrollable Inputs: 1.Inflow of Change requests 2.Quality of Communication 3.Business driven demands 4.Statutory rules and regulation 5.Client Specific requirements Environmental Factors Fixed Constraints: Variable Constraints : 1. Budget 1. Client’s Affordable service charges 2. Client’s statutory rules 2. Lack/Change in manpower and regulations 3. Inflation 4. Govt. Export/ Import Policy 5. Market driven surge in requirement 6. Availability of Backlog 7. Currency Exchange rate Desired Output: •Streamlining of existing functional process •Manage backlog effectively •Provide consultation services •Manage Human Resources •Total revenue generated Undesired Outputs: •Quality error rate •Super cession of requirements •Non conformance to client’s specific requirement E(t) y (t) = f [ x (t), E (t) ]
Available Options  Consultation services are the simplest business model and have the fewest barriers to entry.We will be providing solution for client’s requirements at client’s location.  Onsite – Offsite services where business consultants will be located at the client’s office, work alongside with the clients requirements prepare feasible solutions. In- house team will co-ordinate closely the trials, develop customized model, perform testing, quality assurance checks and transition the project for implementation. The above alternative solutions meet the basic need, however with varying degrees of efficiency in terms of cost, time and resources requirements.
Feasibility Study for Launching LSRV Solutions
WBS
Final Findings & Recommendations  Market Feasibility:The impact of backlogs is about 200% when compared to desired backlog levels of 25%. LSRV solutions would position statically for exploring the bigger portion of the Pie.  Business model: Consultation services are the simplest business model and has the fewest barriers to entry, with higher profit margins demonstrated.  Management Model: Based on the organization structure and financial budget constraint, LSRVS attempts to use method driven by six P’s. Technologies /Technical feasibility:Focus will on using available technologies and techniques of the client.  Financial feasibility: Investors of LSRVS mainly are the director board. The estimated capital of Rupees 20,00,00 is required which is funded by the director board and with little support from Bank loans.
"Joy is the holy fire that keeps our purpose warm and our intelligence aglow." -Helen Keller
Backup Slides  Business Model Feasibility Option 1 Option 2 • The simplest and have the fewest barriers to entry • The solutions tend to be lower than other business models. • We may tend to get maintenance work, which may dictate the tools we may have to use. • Owing and Reuse of solution • Creating solution Modules for future products development. • Buying tools to match with the customer requirements etc.,
 Management Model Option 1: Management method would be driven by six P’s Option 2:The "Arrow" diagram Management method
Financial feasibility Investment costs Item Category Unit cost Quantity Total value (`) Months (`) Materials Infrastructure 6,45,000 Rent Office Space about 500 Sq. ft./per month Fixed cost 10000 12 120000 Furniture Fixed cost 30000 - 30000 Interiors Fixed cost 200000 - 200000 Computer Hardware Fixed cost 30000 4 Units 120000 Computer networking Fixed cost 20000 - 20000 Software licenses Fixed cost 10000 4 40000 Air Conditioner 2Ton Fixed cost 25000 2 50000 Electrical fitting Fixed cost 5000 - 5000 UPS Fixed cost 50000 - 50000 Printer Fixed cost 10000 1 10000 Company Registration Fixed cost 10000 - 10,000 Logistics Variable cost 20000 - 20,000 Labor/Personnel 11,10,000 Critical resources -2 People Variable cost 30000 12 750000 Offshore resouces-2 People Variable cost 15000 12 360000 TOTAL 17,85,000 Capital Requirements and strategy
Break Even Analysis Option: 1. Calculate number projects to execute at break-even based on Man hours. Selling price (SP) = ` 150 per Man hour. SP = ` 12, 96,000/ Year Fixed Costs (FC) = 1, 30,000 Variable Costs(VC) = ` 11,30,000 per year The Number of projects executed (X) = FC / (SP – VC) = 1, 30,000/ (12, 96,000 - 11,30,000) = 1 Project / Year (Approximate) Break-even revenue (` ) = Break-even units X Selling price. = 1 X 12, 96,000 = ` 12, 96,000 Option 2: Selling price (SP) = ` 16,00,000 per year Variable Costs(VC) = ` 11,30,000 per year Fixed Costs (FC) = = ` 6, 55,000 The Number of projects executed (X) = 6, 55,000/ (16,00,000-11,30,000) = 2 Projects / Year. (Approximate) Break-even revenue (` ) = 2 X 16, 00,000 = ` 32, 00,000.
• Selling Price (SP) - Selling Price of services is arrived at customer affordable price. • Based on exploratory research and considering discount to enter market. • Fixed Costs (FC) – These costs are considered those that remain constant within the projected range of sales level. • Variable Costs(VC) - Consists of costs that vary in proportion to sales level. • The Number of projects executed (X) = Represents the number of projects to be executed. For the purpose of a break-even calculation, it is assumed that number of projects Billed during a period is equal to the number projects executed upon during the same period. • Break-even revenue ( ) = Break-even units X Selling price.

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IISc Project Presentation

  • 1. A Quality Improvement Enterprise Ideas for Today andTomorrow Presented by LSRV Solutions Team Members : Lokeshwara RaoT (94) Shalini B (429) Vanitha A Kiran Radhika PC (277)
  • 2. Purpose: Introduce LSRV Solutions  LSRV Solutions (LSRVS), a consulting firm, is in the process of being formed as a joint proprietorship owned and operated by four industrious entrepreneurs from Bangalore East Our Objective  Support customers to address their outstanding pile-of- work by providing business and technical solution to small and medium InformationTechnology (IT) and InformationTechnology enabled service (ITES) companies  Analyze the process, identify areas of slack that results in delay of work completion, and thereby reduce accumulation of project backlogs, improve the quality, and timely delivery of the products to their customers
  • 3. Picture is Bright!  Various Market studies we conducted shows that average change request backlog in the company’s database at a given interval of time is about 200%, growing at an average of 15 % per year
  • 4. How Did We Get Here?  The transformation of the entire world into a boundary-less global village resulted in increased competitiveness in providing quality, competitive pricing, and timely delivery. As a result, the impact of backlogs and turnaround time degradations can be far more damaging than in prior days when products had advantageous and unique features.  Unfortunately, most of the time, the solution applied is a boilerplate combination of overtime, temporary labor, and temporary work redistribution to other departments.This common strategy brings with it a litany of problems, including reduced quality, inconsistent service, increased errors, staff burnout often enough.  Avoiding the problem by mandating that there will never be a backlog may be ideal in concept, but is unlikely in practice due to the dynamic nature of the IT and ITES industry and unpredictable nature of individuals.
  • 5. Need for Project Management…. Exploratory Research to generate basic knowledge, uncover environmental variables associated with a problem. Indicates backlog is dynamic in nature at a given point of time. The additional work is out sourced to other business location or service provider Some of the benefits estimated are :  Establishes accountability  Manages cost  Ensures on-time delivery  Provides a conduit for communications  Reduce scope creep  Manages risk  Increased quality of the delivery
  • 6. x (t) y (t) Where x (t) Represents the set of inputs to the system. y (t) Represents the set of outputs from the system. f Represents system parameters or the transfer function. E (t) Represents the environmental parameters. t Represents any independent variable. SYSTEM APPROACH LSRV Solutions f Controllable Inputs: •Human Resources Skilled, Semi skilled, Man hours • Non Human Resources Computer Hardware, Stationary, Capital, Technology, office space Uncontrollable Inputs: 1.Inflow of Change requests 2.Quality of Communication 3.Business driven demands 4.Statutory rules and regulation 5.Client Specific requirements Environmental Factors Fixed Constraints: Variable Constraints : 1. Budget 1. Client’s Affordable service charges 2. Client’s statutory rules 2. Lack/Change in manpower and regulations 3. Inflation 4. Govt. Export/ Import Policy 5. Market driven surge in requirement 6. Availability of Backlog 7. Currency Exchange rate Desired Output: •Streamlining of existing functional process •Manage backlog effectively •Provide consultation services •Manage Human Resources •Total revenue generated Undesired Outputs: •Quality error rate •Super cession of requirements •Non conformance to client’s specific requirement E(t) y (t) = f [ x (t), E (t) ]
  • 7. Available Options  Consultation services are the simplest business model and have the fewest barriers to entry.We will be providing solution for client’s requirements at client’s location.  Onsite – Offsite services where business consultants will be located at the client’s office, work alongside with the clients requirements prepare feasible solutions. In- house team will co-ordinate closely the trials, develop customized model, perform testing, quality assurance checks and transition the project for implementation. The above alternative solutions meet the basic need, however with varying degrees of efficiency in terms of cost, time and resources requirements.
  • 9. WBS
  • 10. Final Findings & Recommendations  Market Feasibility:The impact of backlogs is about 200% when compared to desired backlog levels of 25%. LSRV solutions would position statically for exploring the bigger portion of the Pie.  Business model: Consultation services are the simplest business model and has the fewest barriers to entry, with higher profit margins demonstrated.  Management Model: Based on the organization structure and financial budget constraint, LSRVS attempts to use method driven by six P’s. Technologies /Technical feasibility:Focus will on using available technologies and techniques of the client.  Financial feasibility: Investors of LSRVS mainly are the director board. The estimated capital of Rupees 20,00,00 is required which is funded by the director board and with little support from Bank loans.
  • 11. "Joy is the holy fire that keeps our purpose warm and our intelligence aglow." -Helen Keller
  • 12. Backup Slides  Business Model Feasibility Option 1 Option 2 • The simplest and have the fewest barriers to entry • The solutions tend to be lower than other business models. • We may tend to get maintenance work, which may dictate the tools we may have to use. • Owing and Reuse of solution • Creating solution Modules for future products development. • Buying tools to match with the customer requirements etc.,
  • 13.  Management Model Option 1: Management method would be driven by six P’s Option 2:The "Arrow" diagram Management method
  • 14. Financial feasibility Investment costs Item Category Unit cost Quantity Total value (`) Months (`) Materials Infrastructure 6,45,000 Rent Office Space about 500 Sq. ft./per month Fixed cost 10000 12 120000 Furniture Fixed cost 30000 - 30000 Interiors Fixed cost 200000 - 200000 Computer Hardware Fixed cost 30000 4 Units 120000 Computer networking Fixed cost 20000 - 20000 Software licenses Fixed cost 10000 4 40000 Air Conditioner 2Ton Fixed cost 25000 2 50000 Electrical fitting Fixed cost 5000 - 5000 UPS Fixed cost 50000 - 50000 Printer Fixed cost 10000 1 10000 Company Registration Fixed cost 10000 - 10,000 Logistics Variable cost 20000 - 20,000 Labor/Personnel 11,10,000 Critical resources -2 People Variable cost 30000 12 750000 Offshore resouces-2 People Variable cost 15000 12 360000 TOTAL 17,85,000 Capital Requirements and strategy
  • 15. Break Even Analysis Option: 1. Calculate number projects to execute at break-even based on Man hours. Selling price (SP) = ` 150 per Man hour. SP = ` 12, 96,000/ Year Fixed Costs (FC) = 1, 30,000 Variable Costs(VC) = ` 11,30,000 per year The Number of projects executed (X) = FC / (SP – VC) = 1, 30,000/ (12, 96,000 - 11,30,000) = 1 Project / Year (Approximate) Break-even revenue (` ) = Break-even units X Selling price. = 1 X 12, 96,000 = ` 12, 96,000 Option 2: Selling price (SP) = ` 16,00,000 per year Variable Costs(VC) = ` 11,30,000 per year Fixed Costs (FC) = = ` 6, 55,000 The Number of projects executed (X) = 6, 55,000/ (16,00,000-11,30,000) = 2 Projects / Year. (Approximate) Break-even revenue (` ) = 2 X 16, 00,000 = ` 32, 00,000.
  • 16. • Selling Price (SP) - Selling Price of services is arrived at customer affordable price. • Based on exploratory research and considering discount to enter market. • Fixed Costs (FC) – These costs are considered those that remain constant within the projected range of sales level. • Variable Costs(VC) - Consists of costs that vary in proportion to sales level. • The Number of projects executed (X) = Represents the number of projects to be executed. For the purpose of a break-even calculation, it is assumed that number of projects Billed during a period is equal to the number projects executed upon during the same period. • Break-even revenue ( ) = Break-even units X Selling price.