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  • 1. Optimize Your Solution: Integrating Six Sigma and CMM/CMMI-Based Process Improvement Rick Hefner, TRW Michael Sturgeon, TRW Software Technology Conference 29 April – 2 May 2002 CMM and CMMI ® are registered in the U.S. Patent and Trademark Office
  • 2. Objectives • Six Sigma Background • Comparing Six Sigma & CMM/CMMI • TRW’s Strategy 4/30/02 Slide 2
  • 3. Six Sigma Background
  • 4. What is Sigma? • Sigma (σ) is the Greek symbol used to represent standard deviation, a measure of the variation from the mean in a normal distribution – Six Sigma implies a process where any value outside the spec is a extremely rare occurrence lower Target upper spec spec 0.001 parts per 0.001 ppm million (ppm) ± 6 sigmas ( 99.9999998% “good”) 4/30/02 Slide 4
  • 5. What is Six Sigma? • Six Sigma is a management philosophy based on meeting business objectives by striving for perfection – A disciplined, data-driven methodology for decision making and process improvement • Six Sigma consists of several integrated methods: – Process Management – Voice of the Customer – Change Management – Tools for Measuring Variation and Change – Business Metrics • Leading-edge companies are applying Six Sigma to engineering work 4/30/02 Slide 5
  • 6. Importance of Reducing Variation To increase process performance, you have to decrease variation Too late Too early Too late Too early Defects Defects Reduce variation Delivery Time Delivery Time Spread of variation Spread of variation too wide compared to narrow compared to specifications specifications • Less variation means – Greater predictability in the process – Less waste and rework, which lowers costs – Products and services that perform better and last longer – Happier customers 4/30/02 Slide 6
  • 7. DMAIC Process Steps DEFINE Set project goals and objectives Incremental improvements MEASURE Narrow range of potential causes and establish baseline capability level ANALYZE Control Define Evaluate data/information for trends, patterns, causal relationships and “root causes” Improve Measure IMPROVE Develop, implement and evaluate solutions targeted at identified root Analyze causes CONTROL Make sure problem stays fixed and new methods can be further improved over time 4/30/02 Slide 7
  • 8. DMADV Process Steps (Design for Six Sigma) DEFINE Set project goals and objectives Innovative improvements MEASURE Identify key design requirements and the factors influencing them ANALYZE Verify Control Define Define Generate design alternatives, and select top-level design that best meets the requirements Improve Measure Design Measure DESIGN Generate detailed design; identify Analyze potential failure modes Analyze VERIFY Pilot chosen design; verify performance 4/30/02 Slide 8
  • 9. Who is Using Six Sigma Now? 3rd Wave Engineering/Software Boeing Northrop Grumman 2000 Litton Raytheon Lockheed Martin TRW 2nd Wave Service/Transactional Bell DuPont J. P. Morgan Cisco Systems Eli Lilly Kodak Citicorp Hewlett Packard Monsanto 1st Wave Manufacturing Allied Signal General Electric Lear 1970’s Ford Johnson Controls Motorola Honeywell 4/30/02 Slide 9
  • 10. Comparing Six Sigma & CMM/CMMI
  • 11. Applying Six Sigma to Systems/Software • Software and system processes are fuzzy – Software or systems engineering "parts" are produced using processes lacking predictable mechanizations assumed for manufacturing of physical parts – Simple variation in human cognitive processes can prevent rigorous application of the Six Sigma methodology – Process variation can never be eliminated or may not even reduced below a moderate level • Results often cannot be measured in clear $ savings returned to organization – Reduced risk, increased customer satisfaction, more competitive bids, … 4/30/02 Slide 11
  • 12. Comparison of CMM/CMMI to Six Sigma - 1 • For an individual process: – CMM/CMMI identifies what activities are expected in the process – Six Sigma identifies how the activities might be improved (more efficient, more effective, …) Example – Project Planning in the CMMI SG 1 Establish Estimates SP 1.1 SP 1.2 Estimate the Scope of the Project Establish Estimates of Project Attributes Could fully meet the CMMI SP 1.3 SP 1.4 Define Project Life Cycle Determine Estimates of Effort and Cost goals and practices, but still SG 2 Develop a Project Plan SP 2.1 Establish the Budget and Schedule write poor plans SP 2.2 Identify Project Risks SP 2.3 Plan for Data Management SP 2.4 SP 2.5 Plan for Project Resources Plan for Needed Knowledge and Skills Six Sigma can be used to SP 2.6 SP 2.7 Plan Stakeholder Involvement Establish the Project Plan improve the planning process SG 3 Obtain Commitment to the Plan SP 3.1 Review Subordinate Plans and write better plans SP 3.2 Reconcile Work and Resource Levels SP 3.3 Obtain Plan Commitment 4/30/02 Slide 12
  • 13. Comparison of CMM/CMMI to Six Sigma - 2 • For the organizational infrastructure: – Six Sigma identifies what activities are used for improvement (DMAIC, DMADV) – CMM/CMMI identifies how those activities might be implemented Example – Organizational Process Focus in the CMMI Six Sigma doesn’t address: SG 1 Determine Process Improvement Opportunities • Assessing overall capability SP 1.1 SP 1.2 Establish Organizational Process Needs Assess the Organization’s Processes • Selecting specific projects SP 1.3 Identify the Organization's Process Improvements • Institutionalizing the SG 2 Plan and Implement Process Improvement Activities SP 2.1 Establish Process Action Plans improvements SP 2.2 SP 2.3 Implement Process Action Plans Deploy Process and Related Process Assets SP 2.4 Incorporate Process-Related Experiences into the Organization’s Process Assets CMMI provides an approach to GG 3 Institutionalize a Defined Process setting up the infrastructure 4/30/02 Slide 13
  • 14. Elements of Six Sigma throughout CMMI Level Focus Process Areas Continuous Six Sigma process Organizational Process Technology Innovation 5 Optimizing Control Causal Analysis and Resolution* improvement 4 Quantitatively Quantitative Organizational Process Performance Managed management Quantitative Project Management Six Sigma Organizational Process Focus Improve Organizational Process Definition Organizational Training Process Integrated Project Management* 3 Defined standardization Risk Management Six Sigma Decision Analysis and Resolution Requirements Development Analyze Technical Solution Product Integration Verification Validation Six Sigma Requirements Management * Project Planning* Measure Basic 2 Managed project Project Monitoring and Control* Supplier Agreement Management management Measurement and Analysis Process and Product Quality Assurance* Configuration Management Six Sigma Define 1 Performed 4/30/02 Slide 14
  • 15. How Six Sigma Helps Process Improvement • PI efforts often generate have little direct impact on the business goals – Confuses ends with means; results measured in activities implemented, not results • Six Sigma delivers results that matter to managers (fewer defects, higher efficiency, cost savings, …) • Six Sigma concentrates on problem solving in small groups, focused on a narrow issue – Allows for frequent successes (3-9 months) • Six Sigma focuses on the customer’s perception of quality 4/30/02 Slide 15
  • 16. How Six Sigma Helps Level 1-3 Organizations • Six Sigma focuses on: – Setting up the management oversight and mentoring infrastructure (management councils, training for Black/Green Belts, …) – Establishing an ROI/business case for the improvements • Six Sigma projects provide a mechanism (similar to Process Action Teams) for: – Making specific improvements – Getting business benefit out of an improved process 4/30/02 Slide 16
  • 17. How Six Sigma Helps Level 4-5 Organizations • Six Sigma provides specific methods and tools for: – Quantitative process management of Level 4 – Causal Analysis and Resolution of Level 5 • Six Sigma projects provide a mechanism for selecting and implementing improvements – Addresses Organizational Innovation and Deployment – Can extend beyond Level 5 4/30/02 Slide 17
  • 18. How CMM/CMMI Helps Six Sigma Efforts • CMM/CMMI focuses on organizational change – Provides guidance on many dimensions of the infrastructure Process Areas Generic Practices (all process areas) • Organizational Process Focus GP 2.1 Establish an Organizational Policy • Organizational Process Definition GP 2.2 Plan the Process • Organizational Training GP 2.3 Provide Resources • Organizational Process Performance GP 2.4 Assign Responsibility • Organizational Innovation and GP 2.5 Train People Deployment GP 3.1 Establish a Defined Process GP 2.6 Manage Configurations GP 2.7 Identify and Involve Relevant Stakeholders GP 2.8 Monitor and Control the Process GP 3.2 Collect Improvement Information GP 2.9 Objectively Evaluate Adherence GP 2.10 Review Status with Higher-Level Management 4/30/02 Slide 18
  • 19. TRW’s Strategy
  • 20. Another Approach for Process Improvement Quality Six Sigma Best-Practice Management Models Business Voice of the Change ISO 9000 Software CMM Measures Customer Management DMAIC Process ISO 9001 Methods & Tools CMMI DFSS Management • ISO 9000/9001 establishes a fundamental quality management framework • CMM/CMMI implements processes which reflect industry best practices • Six Sigma focuses on improvements and measures which lower the cost of doing business 4/30/02 Slide 20
  • 21. Tying Six Sigma to TRW’s Business Needs Core Processes Drive the Key Business Measurement Criteria TRW Systems Business Objectives Core Processes Program Execution TRW Systems Key Business Questions Dashboard Business Development • Used to Manage the Portfolio Management (Strategic Positioning) Sub Core Business Processes Employee Management …. Processes Technology/Product Development • Defined by Business Executives Client Management • Owned by Business Subcontract Management Gaps Executives & Enabling Processes Goals Financial Information Operations Governance Division Dashboards Management Management Infrastructure Compliance Project Start Project Wrap Project Close Systems Eng Development Up up out ROI Gate Results of Six Sigma Projects are seen in Six Sigma/CMMI Projects improved business performance • Productivity • Customer Satisfaction • Profitable Growth • Operational Effectiveness 4/30/02 Slide 21
  • 22. A Typical Six Sigma Project in Engineering • Customers express concern that software defects are causing frequent failures in the field • A Six Sigma team is formed to scope the problem, collect data, and determine the root cause • The team’s analysis of the data determines that poorly understood interface requirements account for 90% of the problems in the field • The interface problems are corrected • The organization’s requirements solicitation process is modified to ensure future projects do not encounter similar problems 4/30/02 Slide 22
  • 23. Summary • Six Sigma can provide powerful methods and tools for process improvement – Many companies have already seen great success • Six Sigma supports meeting CMM/CMMI goals – Important to coordinate the efforts and share infrastructure • Success depends on applying fundamental concepts of business management, quality management, change management, and process management 4/30/02 Slide 23
  • 24. References – Six Sigma • Card, David, “Sorting Out Six Sigma and the CMM”, IEEE Software, May 2000. • Rath & Strong, “Six Sigma Pocket Guide,” Rath & Strong Management Consultants, Lexington, MA, 2001. • Siviy, Jeannine, et al, “Software Technology Review (Six Sigma Section)“, • Smith, Larry R., “Six Sigma and the Evolution of Quality in Product Development,” Six Sigma Forum Magazine, Vol. 1, Issue 1, Nov 2001 • Purcell, Leitha, “Experiences Using Six Sigma in a SW-CMM® Based Process Improvement Program”, American Society for Quality Six Sigma Conference, January 2001. • Hefner, Rick and Purcell, Leitha, “Merging Six Sigma with CMM/CMMI“ (tutorial), Software Engineering Process Group Conference, Phoenix, AZ, 18-21 February 2002. Websites • International Society of Six Sigma Professionals, • iSixSigma, • Six Sigma Exchange, 4/30/02 Slide 24
  • 25. Contact Information Michael Sturgeon Master Black Belt TRW 2561 E. 2050 N. Layton, UT 84040 801.444.2609; 801.444.2611 fax Rick Hefner, Ph.D. Senior Manager, Process Initiatives TRW One Space Park R2/2012 Redondo Beach, CA 90278 310.812.7290; 310.812.9365 fax 4/30/02 Slide 25