Study on the Factors that Increase the Lead Times in Small and Medium Level Enterprises in IT Sector

Sandhya Soman, H. Aditya Pai, Dr. Piyush Kumar Pareek and B.N. Ramesh

Lead time refers to the latency between the initiation and execution of a process. Longer lead time has a direct impact on project delivery time and the project cost. This paper describes the problem which the Small and Medium Level enterprises (SMEs) face due to an increase in the lead time. The paper attempts to identify the factors contributing to increased lead time in three stages. In the first stage, a survey was conducted at SMEs, PSUs, Private and Public Sector IT firms to understand the factors causing turbulence in the business environment. In the second stage, a case study was carried out to find out the challenges faced by a SMEs in Bangalore. The case study brought forward the need to adapt agile development with an objective to develop new features with a shorter lead time and also unfolded several ‘waste’ factors. Finally to understand these ‘non-value added’ factors (which are major contributors in project delay) and also the cause and effect behind the longer lead time, Value Stream Mapping (VSM) and Failure Mode Effective Analysis (FMEA) was performed to carry out a statistical analysis of the given problem.

Volume 11 | 04-Special Issue

Pages: 1689-1698