VNU- UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF BUSINESS AND ADMINISTRATION APPLICATION OF LEAN MANAGEMENT IN POWERGATE SOFTWARE COMPANY BY VU HUY HOANG Supervisor’s name: Dang Thi Huong Student’s name: Vu Huy Hoang Student ID: 12050271 Intake: QH-2012-E Program: International standard Hanoi - May, 2016 CONTENTS LIST OF PICTURES 0 ớẽnnẽnốốố .ố ốốẽố ốẽốố ốố ốẽẽ.2212 2H 12121211221 11tr ili ABS TRACT? ‹.808423808101101-exersrseopsssesreseeossl iv INTRODUCTION Qsssnssessusinsasssvenecsssocesnenenennonsneceence syonsaua sceys vanes nveso tadaenca ussus nsseonsr rsvvs verkenus rasea eveses I 1. The significance Of theSiS.- c2: St tt tt HH HH 1111111111 11111 111111111211 02111 cce | 2. Research Obj€CtiVS. Research object and ue€sSfiOTS.DIGSCIIGHISGĐDBIcesnontgonnndiingtiitLSt15002 Gi0318u 1058 130v012 0L32 V90813i niE4 tôu3grgs i.18eoHukg0s 4010nrxzssrs 5810rcxrrors 8gã see 3 4.
Scope of COn€TIES. Scope of research SpaC€.--- is tt tt ch 1221 1111 11111101101 111111 TT 1c gyg 3 4. Scope Of tÍmG.scsssscsessscecsessccssessessecsessssacsassasessssssssssssssssescsesesensnvesssseeetarsanassusstesnees 4 CHAPTER I LITERATURE REVIEW .1 Fundamentals of lean management .I The origin of Lean wo.3 Value and continuous improvement in Lean management. 6 LA WAStES s ssscssswssssssnerscnrennnesnsentasnennsnwhe} eoses is tetament evesamusvenom nsioe nan 1:18810 ususe 2011110 ngina1310380 nig1547 1.5 TPS and Toyota Way.
Overview of software deVelOpImeF. Software development process .3 Wastes in software development prOC€SS.4 Applying lean management to software development process .3 Applying Lean management in the viewpoint of Toyota Way 4P model to software AevelopMent PrOCcess.1 Lean/Agile software development .2 Applying Lean management in the viewpoint of Toyota Way 4P model to software development Process.ssessecsssessessesessesecseesessssussscsecsessssessvsassuesucsucsecersersacsuecucaueasessecaees 25 CHAPTER 2 RESEARCH METHODOLOGY .ccccccsscssssscssssstsssssessssssserssesessessesutsatsacssecseees 28 2-1 Research ProCeSS ẽnẽốốnốẽốaố. cQ T12 1121111101111 11H TT HH TH Tnhh HH Hư 28 "uc nố nốẽố ố ốốốốốố and.3 Questionnaires deSi an ốc ố <ãÁiai'Ã"ÝÝỶÝỶ.1 Introduction of PowerGate Software Company. Software development process in Powergate Software Company.2 Data results anaÏSÌS.1 The current situation of PowerGate in the view point of Toyota 4P model.2 Wastes and causes of problem in PowerGate Software Company.--- 42 CHAPTER4 FINDING AND RECOMMENDATIONS .ccccsesessesesessesessesesvevescerevcecsesecscees 47 Aral) FUNGUS! «sass csssaess.s-aenensenensasvoveda Lạ 02305569 vones vhs erenasineso tesen nwevavaveev sanueenseumeraav ndusseearcestaxe licoy® 47 4.
Developing a clear long-term philosophy. Creating Continuous process ÍÏOW. Letting all staffs involve in problem-solving process. Creating a culture of relentless reflection and continuous improvement.3 Model of applying to the Whole pTOC€SS.
58 CONCLUSION sssmscnrsvrciin sowersencsenses.vasneanensonsssnansessanet tutsany eae assesaeen sunssn ẽ ananna. s 60 LIST OF REFERENCES .sssssovorscsssonesnoreses GA sassur HH ssscas. ssasss HH nsties re. 62 LIST OF PICTURES Piper 1:1? Lyte, EP TH saccrsnisaecesreaer arene oman’ stnimacomyin sowie aco rnanna Tatas Steed poe TMVOAC SERIA 12 Figure 1.2: Software development process approaches by time.86 Watertall THQdE Ìisssnsapnekbeskpiinnu014184 acess nose timaiedcorsivae 30188310808 1)501ã0455⁄50880: S5 23 Figure 1.4: Iteration in software development.5: Value timeline in software development proc€ss.ccccccccec ence eee ee ses ceeseeeseeaeneeneeseueeseneneenens 29 Figure 3.1: PowerGate Software Company Organizational structure.2: Software development process in PowerGate Software Company.3: On hold tasks.4: Bugs found in software B8aK project in a Sprint.5: Burned point Report for a Sprint of WorbBrewery project.6: PowerGate Software Agile project process & communication for team.7: Batch pDrOC€SS.- TQ Q00 0n ĐT TH ng ng ng ke vế41 Figure 3.8: WorbBrewery JIRA Scrum board.9: Training invitation through emaiÏl.1: General software development process in PowerGate Company.2: One-piece flow process (Iteration) .3: Software development pull system .4: Scrum Board management.5: Store management method.
co sen ease H20 anise 242108 1 Hàn 4001 1102360 52 Figtire 4.412011,©WiG]Gbsposginsetidiindtaditdugbiiogilš cumawe stem rates Sains prgisi [Bi 1a eT 33 Figure 4.-c Q nn ST SH HH HT nà xin56 Figure 4.7: Applying Toyota Way 4P model to PowerGate Software Company. 59 LIST OF TABLES Table 1.1: Seven wastes in manufacturing and software.1: Estimation of training cost of two first quarters 2016(VND) ACKNOWLEDGEMENTS This thesis has benefited greatly from the support of many people, some of whom I would sincerely like to thank here! To begin with, I would like to express my deepest appreciation to my supervisor, Dr. Dang Thi Huong who believed in me and was continuously supporting me in every single problem that occurred during the writing of this thesis. I especially thank her for her encouragement and her accurate comments which were of critical importance.
I would also like to extend a special thanks to Dr. Nguyen Dang Minh for sharing his valuable time with our class and me to explain about the way to setup a good workflow of implementing the thesis. In additional, I also desire to show him my gratitude for his kindness and generosity to help me found my own knowledge background. I am greatly grateful to Miss Vu Thi Thu Hang, strategic mission program coordinator for her eagerness and great assistance in order to accomplish this thesis.
I also want to thank the members of examining committee in my defense day. Special thank goes to my friends and my beloved relatives for their continuous support and assistance during the writing of this thesis, without your love moral support, I could not complete it until the end. Thank all ofyou again and again! Vu Huy Hoang iv ABSTRACT The world has witnessed the rapid development of software industry in recent decades, and Vietnam is not an exception. The development creates a dynamically competitive market of software and PowerGate Software Company is a part of it.
The more companies the industry has, the more quality and productivity it requires to survive. The purpose of this thesis is to propose the application of lean management in the view point of Toyota 4P model to PowerGate Software Company to help it boost productivity and eliminate wastes. In order to acquire the knowledge of current situation of PowerGate Software Company, direct observation and semi-structured interview were used to collect information, and then data is analyzed before the recommendations are discussed. KEYWORDS: software, software development process, lean management, Toyota 4P model, wastes, PowerGate Software Company.
The significance of thesis Information technology industry remains one of the most dynamic, innovative and fastest growing sector of the global economy. It has made considerable progress over the past decade as people have become reliant on electronic devices in many areas of their lives. The global information technology industry spending was estimated to be US$ 3. Information Technology terminology is a group of 3 major components, it encompasses hardware, software and telecommunications.
It's undeniable that software development industry has made a great deal of contributions to the success of the whole industry. In 2013, the global software industry was approximately US$ 554.5 billion and predictions show the increase of nearly 55.2 percent by the end of 2018 [2]. This opens a new age of the world where software has gradually become one of the basic needs of human beings. It is not only about the opportunities, but also the racing of being more qualified and more productive to survive.
Vietnam has caught a lot of attention from the outsiders as a great achievement of the international economic integration. In 2007, that Vietnam officially became the 150th member of WTO (World Trade Organization) has marked a milestone in attempt to bring the economy to international integration. In the related event in 2007, on Wall Street Journal, James Hookway showed his confidence about the promising development of outsourcing services in Vietnamese software development industry. Since Intel made commitments to make investment in Vietnam, Information technology corporates have their eyes on Vietnamese market and started to search for partners to follow Intel’s step.
Gallaugher and Stoller in 2004 evaluated the attractive offerings that Vietnam market has in especially in software outsourcing and offshore, which included lower costs, skilled labor force, and political stability [5]. According to Vietnam Software Association in 2008, software outsourcing industry in Vietnam witnessed a dramatically increase of 35% growth rate and dropped down by 5% in PP y 2009 due to the financial crisis. Those opportunities above have created a highly competitive domestic software market in Vietnam as a corollary. In the context that high-tech companies like Glass Egg Social Media, TMA Solutions.
have gained a lot from providing oversea outsourcing for large corporates such as Microsoft, Sony, and Electronics Art. This thesis choose the case of PowerGate Software company which is a young and passionate company has started its own business of providing software development oversea outsourcing service and developing software itself and the company has successfully built the its credibility to the customer in US, UK market. However, in comparison to the whole world, it’s undeniable that PowerGate encounters problem in the software development process and the delivery time, which creates the frontier to higher productivity and quality that it needs to move further, those are wastes incurring in a lot of processes. That is the reason why it and all other software companies need to find a better way to enhance the quality and productivity and also at least remain or reduce the costs at the same time to gain great market share in such a competitive market; and this emerging issue has revealed a way to lean management.
Research objectives The purpose of the thesis is to demonstrate the way an IT organization like PowerGate Software Company can apply lean management in the field of Toyota way’s principles to eliminate wastes and improve the productivity and quality of the process of developing software. Research object and questions The study aims to research three objects which are Lean management (Toyota way principles), and software development and to answer those questions: - What is the current situation of PowerGate Software Company in the view point of Toyota 4P model? - What are wastes and the causes of them in software development process of PowerGate Software Company? - How can Toyota 4P model be applied to PowerGate Software Company to solve the problems and eliminate wastes in PowerGate Software Company? 4. Scope of contents The study focuses on the lean management in software development process in comparison with Toyota way of manufacturing. All the terminologies and methodologies are to interpret some of the way Toyota’s lean management which is applied to software development process.
Toyota Way consists of 14 principles; however, the thesis will go through the four layers of Toyota way pyramid rather than attempt to apply all principles at once. The term software development process itself considers both software developing and software testing as one, not separately. Thus, the evaluation accesses the work flow from the very beginning steps when the requirements are analyzed until the release of a product is completed and delivered to customer. Scope of research space To be consistent with the objectives of the study, all of observations and interviews were took place in room of PowerGate Software Company where software development process is implemented.
Scope of time The work of this study was implemented from 26th January, 2016 to 30th April, 2016. The major of it is in the working time of the company (from 9a. The writing of the report was during my personal time. Research contributions The study resolves the research questions to provide technical managers of PowerGate Software Company in particular and all other the Information Technology companies in general useful reference resources to a way to implement lean management in software development process to eliminate wastes and then put one more step in way of applying lean thinking for creating value.
Research structure Apart from the introduction, conclusion, references., the thesis is organized into four chapters as follow: Chapter |: Literature Review: This chapter provides necessary background information for lean management in general, Toyota 4P model and Lean software management. Chapter 2: Research Methodology: In chapter 2, it includes the methods that research will be conducted from collecting the data, handling the data to analyzing the data. Chapter 3: Analysis: Chapter 3 undertakes the explanation from data collected and analyzes the cause of problems found out in software development process at PowerGate Software Company. Chapter 4: Findings and recommendations: After the analysis in Chapter3, this chapter will summarize about the results and discuss additional problems.
Moreover, the solutions and recommendation are also given. nN CHAPTER 1 LITERATURE REVIEW 1.1 Fundamentals of lean management 1.