Oracle-NAIO: A CMMI based Process Improvement


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"Excellence combined with quality"- A case study of how QAI assisted Oracle-NAIO in their CMMI based Process Improvement Initiative

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Oracle-NAIO: A CMMI based Process Improvement

  1. 1. com softwaredi xide CASE STUDY ORACLE NAIO A CMMI Case study Excellence combined with Quality ®
  2. 2. Oracle-NAIO has been at the forefront in customer satisfaction ratings and financial performance, now the importance turned towards enhancing competencies and delivering business value to customers. To achieve this, NAIO had to be appraised through processmaturityunderonesinglegloballyacceptedqualitymodel. The measurement was a long-term strategic effort in response to process maturity. NAIO's approach to process maturity and quality ®was intended to be compatible with that of CMMI , as detailed in its ®standards and procedures. The decision was made to adopt CMMI forSoftwareEngineeringunderthestagedrepresentation. Although the processes were used as discrete elements with well- defined interfaces, in practice, some unified other aspects of the system and some overlapped. Business reasons such as, product and project performance, meeting market requirements, continuous cost and cycle time issues had scope for improvement. Such core business reasons were assimilated across the organization and provided a fundamental starting point for the Process Improvement initiative. The Sponsor defined the measurements to assess customer satisfaction,suchas: ! On-timeandon-budgetdelivery ! Reducing cost to customer by increasing productivity andreducingdefects ! NoescalationmailsfromcustomertoC-levelexecutives ! Obtainreference-ableandrepeatcustomers THE CLIENT Process and Quality are important for measuring improvement. Improvement means different things to different organizations. ForOracle-NAIO,itwasbusinessgoalsandmeasuringprogress. Oracle-NAIO(NorthAmericaIndiaOperations)wasstartedinJun '03 as Oracle North America consulting's dedicated Offshore unit. It is a flagship of Oracle's Global Blended Delivery model, throughwhichitprovidessolutionsandservicesaroundtheareas where Oracle Consulting operates. Oracle-NAIO's primary service areas are Consulting Services, Core Technical Services andManagedServices. ®The Objectives of the CMMI based Process Improvement Initiativewereasfollows: ! Benchmark Oracle NAIO processes against the ®CMMI framework ! I d e n t i f y s t r e n g t h s a n d i m p r o v e m e n t opportunities ! Characterizethematuritylevel OBJECTIVES CMMI - Released in 2000 - Evolved from several capability maturity models - Focus on infrastructure and process maturity - Intended for software and systems engineering - Knowledge management plan ® CMMI Improvement is a continuous journey and the strategy was to follow the benchmarks in Quality and also implementing the ®CMMI framework and best practices. In this context, the improvement effort began by chartering a Software EngineeringProcessGroup(SEPG). The SEPG team's major focus was on the first milestone, to achieve Maturity Level 3. It emphasized on defining Standard Operating Procedures (SOP) for Project Management & Delivery, each with its own primary focus and internal customers. It also focused on Trainings, Gap analysis and compliance checks. All these were driven by robustplanningandactions,suchas ! Measurement and analysis plan for the entire organization(NAIO) ! Sharedvisionforintegratedteams ! Statisticallymanagingtheprocess ! Riskmanagement ! Process for selection of solutions based on well- reasoned evaluationofalternatives. ! Process and product quality assurance plan for qualityassurance. FOCUS DEMAND PROCESS MATURITY ® CMM and PCMM are registered in the U.S. Patent and Trademark Office by Carnegie Mellon University. (SM) SEPG, CMMI PSP and TSP are a service mark of Carnegie Mellon University.
  3. 3. The Process Excellence Drive was initiated in Aug 2004: Focus for Improvement Milestones The Roadmap ®- Establish SEPG to drive CMMI based Process Improvement ®- CMMI Level 3 in May 2005 ®- CMMI Level 5 targeted appraisal in May 2006 Achieve through CMMI -5 ® - Consistent Quality processes & standard practices across NAC - Elevate the overall Quality - Quality Assurance services for delivery Organizations - Monitor Quality Control functions in the standard Practice Operations of the Service Lines - Target for ‘first-time-right’ - Elevate overall Oracle Project Management - ‘Best Practices’ of Project Management for delivery organizations - PM Certification and Training initiative - Communication channels for early escalation - An independent Escalation Channel for NAIO SDM’S and NAC Pm’s Project Management Quality Management APPROACH ®The CMMI looks for the people in management, engineering, and infrastructure to adopt new behaviors and beliefs. In this environment, the core culture is a principal factor in achieving success, and change leadership is as important as change management. SEPG team started with forming and training distributed Task Forces to begin the task of adopting the process areas within the ®CMMI . The idea was that a distributed development of the standard operating procedures (SOP) and shared views would make the buy-in much easier. Task Force Team was made up of personnel from PMO (quality management team, knowledge management team & SEPG) and from different practices (SME's ®and CMMI Champs). It was supported by the Files-online (oracle's internal common share place) that provided workspaces for each Task Force member, information and references concerning the overall effort, and a viable means of communicating among theTask Forcemembers. Apart from the internal team, QAI team facilitated periodic process implementation reviews and checks, primarily to avoid future ®surprises in successfully adopting and institutionalizing the CMMI ProcessAreasandPractices. TEAM ®With the core team of SME's and the CMMI Champs (internal to organization), the initiative began with the task of process definition ®in earnest. SEPG and the QAI team translated the CMMI -SW process areas into core processes that were meaningful to Oracle- ®NAIO’s business operations. The CMMI champs along with the SEPG team, came up with a robust milestone based review process, whichhelpedexecutetherestoftheactivities,suchas: ! Definition of Guidelines for baseline Document development ®! CMMI Overview Training, GAP Analysis and Action Planing ! IdentifyingProjects ! PublishingPlananddefiningdatesandexpectations Due to the nature of the organization's business environment, adopting the Systems Engineering practices offered a major advantage because the organization now had the potential to ®develop a true single process for engineering. Also the CMMI implementation Task Force & QAI's consultant provided frequent feedbackonareasandopportunitiesforimprovement. Two dimensions to Process improvement Our next Milestone - by MAY ‘06 We are here today Process Discipline Process Definition Process Control Continuous process improvement Process Area level Improve Capability Organization level Improve maturity Process Management Engineering Management Quantitative Management Change Management CMMI® Level 1 Initial Level 2 Repeatable Level3 Defined Level 4 Management Level 5 Optimizing PLANNED VS. ACTUAL CMM Level 3 Milestones® 2004 2005 Sep Oct Nov Dec Jan Feb Mar Apr May Sep 1- Oct 12 Sep 1- Oct 29 Oct 11- Nov 5 SOP Development & Rollout Delivery SOP Development Training & Metric Definition Nov 8 - Jan 3 Gap Analysis & Implementation Reviews Jan 15- Mar 30 Compliance Checks Apr 1- May 31 Pre & Final SCAMPI-A Appraisal for Level 3 The pen-ultimate phase was the Pre-Appraisal & Readiness Check conducted by the QAI’s SEI Authorized Lead Appraiser to ensure that all parameters for attaining the desired maturity level was feasible and fully prepared. This actually helped NAIO set for the FinalSCAMPI-A Appraisal.
  4. 4. ®CMM and Capability Maturity Model are registered in the US Patent & Trademark office by Carnegie Mellon University. SM SEI is a service mark of Caregie Mellon University. The SCAMPI-A appraisal was led by QAI India Ltd., a transition partner of the Software Engineering Institute and one of the world's leading Software Process Improvement consultancies. Oracle plans to continue this journey for excellence and is ®currently focussing on the next milestone of CMMI Maturity Level5andsubsequentlyitalsoplanstotakeittotheotherOracle ®Services in a phased manner under the CMMI initiative scope in thecomingyears. 'Capability level of an organization provides a way to predict the future performance of an organization', this statement proved right for NAIO whenitmetthefirstmilestoneofMaturityLevel3. ®At CMMI Maturity Level-3, NAIO had consciously adopted a staggered ®approach for the CMMI implementation which inturn has resulted in the followingbenefits - Improvedscheduleandbudgetpredictability - Improved cycle time - Increased productivity - Improved quality (as measured by defects) - Increased customer satisfaction - Improved employee morale - Increased return on investment - Decreased cost of quality Belowarethemetricstosubstantiatetheresults: Schedule Variance - Org. Baseline 15% 15%15% -15% -15%-15% 0% 0% -7% -20% -10% 0% 10% 20% Q2 Q3 Q4 ScheduleVariance% Upper Limit Low er Limit Schedule VarianceLower Limit Defect Per Object - Org. Baseline 13 1515 15 22 2 0.9400 5 10 15 20 Period NormalizedDefect Upper Limit Low er Limit Total Normalized Defects per Object CHALLENGES ®The challenges to the CMMI based Process Improvement Initiative proved to be manyfold, ranging from developing a relationship with the project team to establishing a buy-in from all levels of organization practices.Listedbelowaresomeofthem: 4 ChangeinCurrentBusinessMix > Revisedtheplanbasedoncurrentsituation > Change in NAC (North America Consulting) Direction ®> Published the CMMI implementation plan to NACSeniorManagement 4 Focus & Drive from NAIO Senior Management ®forCMMI Implementation > Ensured Senior Management Commitment upfront > Updated status to the Senior Management on amonthlybasis 4 Ability of Task Forces to complete deliverables inTime > QAIActivityScheduling > Reviewed the plan with QAI and got their commitment on deliverables and support upfront > Updated the status / schedule slippage if anywithQAIonamonthlybasis 4 Integration of PM SOP, Delivery SOP and Metrics > SEPG trackedandhelpedinintegration 4 TrainingonsiteNAIOmembers > Published the training plan, solicited participation 4 Training outsourcing team members who work inshifts > Publishedthetrainingplan > Conductedtrainingsaspershifts Customer Satisfaction Report (Q3 & Q4-05) 4.29 4.29 3.8 4.1 3.8 4.5 0 1 2 3 4 5 Parameters Projectontime Projectwithin Budget Qualityof Deliverables Communication Turnaround time Transitioning totechnical codes
  5. 5. Oracle was looking for a consulting partner with global reputation and thought leadership and consisting of knowledgeable, committed and technically outstanding professionals, who truly understood the industry and Oracle NAIO's line of business and could guide them in their process improvementinitiative. They needed someone who could hand-hold & provide relevant, specific and practical advice to help them improve their Software Processes and achieveOperationalExcellence. QAIwastheunanimouschoice,becauseitstandsoutfor: Credibilityandreputationinthemarket Professionalism,Knowledge&Experienceofitsconsultants Global&multi-culturalexposure And overall, being an international organization committed to offering a complete range of multi-disciplinary skills & services with working knowledge across domains & technologies for most oftheleadingSoftwareCompanies. Duringthecourseofthisjourney,QAIIndiacontributedby: IdentifyingthebusinessprocessrequirementsofOracleNAIO Assisting in aligning the process improvement plan to Oracle's businessobjectives Providing structured feedback during all milestone reviews & check points; sharing practical process improvement ideas; innovative methods & solutions resulting in proper & timely action byOracleNAIO Competent and confident consultants, with their high involvement they virtually “became a part of the organization” duringtheengagement Continuous feedback and guidance to the organization helping towards institutionalization of practices and preparing for a successfulappraisal Making process improvement part of people's jobs and getting ownership (people like to contribute more than they like to take ownership) ! ! ! ! ! ! ! ! ! ! QAI stepped in with their extensive expertise and rich experience and deployed their best practices to overcome several of the typical challengesfacedbyOrganizationsintheirCMMIjourneybybringingtothe table it's learning with over 100+ successful ene-to-end implementations acrossseveralleadingSoftwareCorporationsoftheworld. QAI is Asia’s largest and amongst the world’s top three firms in the enterprise wide deployment of process initiatives that contribute to ‘OperationalExcellence’. Setupin1994astheAsia-Pachub,QAI’smissionistofacilitateenhanced competitiveness in Software, BPO and other knowledge intensive organizations through multi-faceted interventions in the areas of Process Improvement, be it business, engineering, people management or IT, throughourservicesin: Consulting Training People,ProcessandOperationalAssessments Benchmarking Certification Conferences Resourceprovisioning&QualityOutsourcing e-LearningthroughQAIeSchool This unique blend of services enables clients using one service to benefit from our experience, knowledge base, network, and learning in other services. QAI's holistic approach to process improvement consultation is based on the objective of integrating People, Process, and Technology, which are criticaltotheperformanceofanorganization. QAI’s helps organizations, achieve their business goals better, faster and cheaper by facilitating Operational Excellence, through: Process Management, Project Management, Quality Management, Change Management, Human Capital Management, IT Service Management and Innovation Management thus helping companies the world over to reduce cycle times, increase productivity and improve quality of service deliveryandprocesses QAI has provided it’s range of services to over 200 organizations spanning over 30 countries across 5 continents. QAI’s engagements cover implementation of most of the globally accepted and recognized ® ® ® process frameworks & quality models like SW-CMM , PCMM , CMMI , SM ® COPC ,ITIL ,BS15000,BS7799,SixSigma,OPM3,etc. QAI believes in contributing to the development of the ‘Nations of Software and BPO Excellence’ by working closely with government bodies, government funded agencies, research institutions, defense organizations, software parks, local industry associations, and World Bankfundedprojectsinseveralcountries. Our regional bases across the globe - in USA, Singapore, China, Hong Kong, Malaysia, Middle East and India, help us innovatively distribute andmanageengagementsacrossmultiplelocations. WHO WE ARE INDIA Phone: +91-11-26219792, 26220580 SINGAPORE Phone: +65-6225-8139 CHINA Phone: +86-21-50804311 MALAYSIA Phone: +603 2169 6241, 2169 6246 WHY ORACLE TRUSTED QAI FOR THEIR CMMI JOURNEY?