Six Sigma Presentation


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  • Recall from Elementary Statistics the standard deviation graph
  • Data is key here. Six Sigma has it’s foundation in Statistics and measurements
  • Reference: “ DMAIC and DMADV”, Thomas Pyzdek, Downloaded from:
  • Six Sigma Presentation

    1. 1. Six Sigma and CMMI : Showdown in Software Process Engineering Jonathan Beckham
    2. 2. Process Improvement Goals <ul><li>Process Goals </li></ul><ul><ul><li>Improve schedule and budget predictability </li></ul></ul><ul><ul><li>Improve cycle time / time to market </li></ul></ul><ul><ul><li>Increase productivity </li></ul></ul><ul><ul><li>Improve quality (as measured by defects) </li></ul></ul><ul><ul><li>Increase customer satisfaction </li></ul></ul><ul><ul><li>Improve employee morale </li></ul></ul><ul><ul><li>Decrease cost of quality </li></ul></ul>
    3. 3. Process Improvement Goals <ul><li>Companies want to increase Return On Investment </li></ul>
    4. 4. What affects software?
    5. 5. Six Sigma: What is it? <ul><li>According to David Card, (IEEE Software 2000), Six sigma is “A generic quantitative approach to improvement that applies to any process.” </li></ul><ul><li>“ Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service.” – </li></ul>
    6. 6. What’s the missing piece? <ul><li>In essence, six sigma is an approach to finding the cause of business problems and solving them making an impact on the bottom line of a corporation and decreasing variation for products. </li></ul><ul><li>Six Sigma is more of a methodology or a philosophy. </li></ul>
    7. 7. Six Sigma Levels <ul><li>Six Sigma can be identified at three levels: </li></ul><ul><ul><li>Metric </li></ul></ul><ul><ul><li>Methodology </li></ul></ul><ul><ul><li>Philosophy </li></ul></ul>
    8. 8. Metric <ul><li>3.4 Defects Per Million Opportunities (DPMO) </li></ul><ul><li>DPMO allows you take complexity of product/process into account </li></ul><ul><li>Refers to statistics. The +-6 standard deviations (sigmas) away from the standard mean </li></ul><ul><li>Most companies are within 3 standard deviations of the mean </li></ul>
    9. 9. Metric <ul><li>The higher the sigma value, the better the process is capable of producing defect free results. </li></ul><ul><li>To be in this six sigma range you must have a quality product 99.9999998% of the time. </li></ul>
    10. 10. Philosophy <ul><li>Reduce variation in your business and make customer-focused, data driven decisions </li></ul><ul><li>Translate customer needs into operational measurements </li></ul>
    11. 11. Methodology <ul><li>Structured problem solving techniques and roadmap </li></ul><ul><li>Two primary sub-methodologies in Six Sigma </li></ul><ul><ul><li>DMAIC </li></ul></ul><ul><ul><li>DMADV </li></ul></ul>
    12. 12. DMAIC <ul><li>D efine- M easure- A nalyze- I mprove- C ontrol </li></ul><ul><li>Tool for incremental process improvement of existing processes within an organization that fall below required specification </li></ul>
    13. 13. DMAIC cont. <ul><li>D efine </li></ul><ul><ul><li>Define the problem or process to improve upon related to the customer and goals </li></ul></ul><ul><li>M easure </li></ul><ul><ul><li>How can you measure this process in a systematic way? </li></ul></ul><ul><li>A nalyze </li></ul><ul><ul><li>Analyze the process or problem and identify the way in which it can be improved. What are the root causes of problems within the process? </li></ul></ul><ul><li>I mprove </li></ul><ul><ul><li>Once you know the causes of the problems, present solutions for them and implement them </li></ul></ul><ul><li>C ontrol </li></ul><ul><ul><li>Utilize Statistical Process Control to continuously measure your results and ensure you are improving </li></ul></ul><ul><ul><li>Several Software Packages available to assist in measuring yield, defects per million opportunities, etc. </li></ul></ul>
    14. 14. DMADV <ul><li>D efine- M easure- A nalyze- D esign- V erify </li></ul><ul><li>Methodology for producing new processes that meet the Six Sigma Quality levels desired </li></ul><ul><li>Similar to DMAIC, however, we have a design stage here </li></ul><ul><li>DFSS </li></ul><ul><ul><li>Design-For-Six-Sigma </li></ul></ul><ul><ul><li>Using models or prototypes to create designs and ensure they are effective in meeting goals </li></ul></ul>
    15. 15. DMAIC VS. DMADV
    16. 16. Six Sigma Personnel <ul><li>Champion </li></ul><ul><ul><li>Manager/Director/Executive who makes sure the resources are in place for a Six Sigma project </li></ul></ul><ul><li>Master Black Belts </li></ul><ul><ul><li>Quality experts in an organization </li></ul></ul><ul><ul><li>Responsible for strategic implementation </li></ul></ul><ul><ul><li>Teach/Mentor other Black and Green Belts </li></ul></ul><ul><li>Black Belts </li></ul><ul><ul><li>Six Sigma team leaders responsible for implementing process improvement projects within the business </li></ul></ul><ul><li>Green Belts </li></ul><ul><ul><li>Employee of an organization that has some training in Six Sigma and may lead a Six Sigma project, but only as part of their job </li></ul></ul>
    17. 17. CMM: What is it? <ul><li>“A Capability Maturity Model (CMM) is a reference model of mature practices in a specified discipline, used to improve and appraise a group’s capability to perform that discipline” -SEI </li></ul><ul><li>CMM contains a list of key process areas that includes software engineering, project management, and process improvement divided into different levels </li></ul>
    18. 18. CMMI <ul><li>CMM sunset </li></ul><ul><ul><li>No more SEI CMM training since 2003 </li></ul></ul><ul><ul><ul><li>Some vendors may still offer it </li></ul></ul></ul><ul><ul><li>CMM Appraisals will end this year </li></ul></ul><ul><ul><ul><li>SEI states other vendors may offer this but questions value </li></ul></ul></ul><ul><li>Version 1.1 CMMI released in December 2001 </li></ul><ul><ul><li>Adds requirements development, validation </li></ul></ul><ul><ul><li>Identifies strategy for verification and validation or products (testing) </li></ul></ul><ul><ul><li>Adds relevant stakeholders and level of involvement (Identify key people) </li></ul></ul><ul><ul><li>Less focus on “documented procedures” (Only when critical to a process) </li></ul></ul>
    19. 19. CMMI Models <ul><li>Capability Maturity Model Integration brings together four disciplines </li></ul><ul><ul><li>Systems Engineering (SE) </li></ul></ul><ul><ul><li>Software Engineering (SW) </li></ul></ul><ul><ul><li>Integrated Product and Process Development (IPPD) (Level 3 add on) </li></ul></ul><ul><ul><li>Supplier Sourcing (SS) or Acquisition (Level 3 add on) </li></ul></ul>
    20. 20. CMMI Maturity Levels
    21. 21. Maturity Levels of Organizations 9/28/04
    22. 22. SW-CMMI Strengths <ul><li>Engineering focused which assists in integration and interaction among engineering departments </li></ul><ul><li>Recognized Internationally </li></ul><ul><li>DOD contracts require certain levels for bids </li></ul><ul><li>Utilizes best practices in the industry </li></ul>
    23. 23. Six Sigma Strengths <ul><li>Generic Process Improvement Strategy can be applied to any process </li></ul><ul><li>Trained personnel working on process improvements for organization on continuous basis </li></ul>
    24. 24. SW-CMMI Weaknesses <ul><li>Statistical methods often not used at levels 4 and 5 when they could ease data analysis </li></ul><ul><ul><li>Six Sigma embraces statistical methods </li></ul></ul><ul><ul><li>Improvement in CMMI </li></ul></ul><ul><li>CMMI goals are not always aligned with business and customer goals </li></ul><ul><ul><li>Generally Software Specific, but improving with CMMI </li></ul></ul><ul><li>CMMI assessors are certified, but implementers are not so they may not understand underlying concepts (statistical process control, etc) </li></ul><ul><ul><li>Six Sigma has competence certifications for relevant subject matter </li></ul></ul>
    25. 25. Six Sigma Weaknesses <ul><li>Derived from manufacturing which has a real tangible process that is easy to measure and apparent, as opposed to software engineering </li></ul><ul><li>No formal connection to ISO 9000 </li></ul><ul><ul><li>ISO 9000 and CMM have milestones and certifications </li></ul></ul><ul><li>Six Sigma relies on training personnel (black belts) that look for areas that need improvement which may not be the best way to go about this </li></ul><ul><ul><li>Costs also involved in training for Six Sigma </li></ul></ul><ul><li>Focuses on Internal process experience and doesn’t consider external technology or best practices </li></ul>
    26. 26. CMMI Case Studies <ul><li>Lockheed Martin M&DS </li></ul><ul><ul><li>SW CMM ML 2 (1993) </li></ul></ul><ul><ul><li>SW CMM ML 3 (1996) </li></ul></ul><ul><ul><li>CMMI SW ML5 (2002) </li></ul></ul><ul><ul><li>Increased software productivity by 30% </li></ul></ul><ul><ul><li>Decreased unit software cost by 20% </li></ul></ul><ul><ul><li>Decreased defect find and fix costs by 15% </li></ul></ul>
    27. 27. CMMI Case Studies <ul><li>Bosch Gasoline Systems </li></ul><ul><ul><li>CMM Level 4 </li></ul></ul><ul><ul><li>Predictability – internal on-time delivery improved by 15% </li></ul></ul><ul><ul><li>Less Rework – first pass yield improved by 10% </li></ul></ul><ul><ul><li>Product Quality – reduction in error cases in company by one order of magnitude </li></ul></ul>
    28. 28. Six Sigma Case Study <ul><li>>$3 billion energy company </li></ul><ul><li>Customer dissatisfaction with software deliverables </li></ul><ul><li>Customer satisfaction improved by 2 points on their “report card” </li></ul><ul><li>Product quality was improved by 30% </li></ul><ul><li>Reduction of rework by 50% was achieved </li></ul><ul><li>Project savings of $150 K was achieved </li></ul>
    29. 29. So which one is better? <ul><li>“The is no silver bullet” – Fred Brooks </li></ul><ul><li>Neither one is necessarily “better” </li></ul><ul><li>Both have weaknesses </li></ul><ul><li>Both have multiple case studies and large corporations that have realized real savings and process improvements utilizing their techniques </li></ul><ul><li>Utilizing both is possible </li></ul>
    30. 30. CMM and Six Sigma Similarities <ul><li>Both emphasize reducing defects as their main process improvement goal </li></ul><ul><li>Both focus on quantitative decision making that relies on measurement </li></ul><ul><ul><li>Six Sigma and CMM level 4 and 5 </li></ul></ul><ul><li>Both utilize similar basic statistical process control techniques </li></ul><ul><ul><li>As mentioned, Six Sigma has a better foundation in this area </li></ul></ul>
    31. 31. Using Six Sigma and CMM <ul><li>Six sigma provides a foundation to define, measure, analyze, improve, and control the process </li></ul><ul><ul><li>Utilize process mapping </li></ul></ul><ul><ul><ul><li>Can work in conjunction with CMM to map out a process and identify gaps within software processes </li></ul></ul></ul><ul><ul><li>Failure Modes and Effects Analysis </li></ul></ul><ul><ul><ul><li>Detects how a process can fail and assigns severity to it to prioritize actions </li></ul></ul></ul>
    32. 32. Using Six Sigma and CMM <ul><li>CMM level 4 and 5 and Six Sigma are often seen as similar: </li></ul><ul><ul><li>Six Sigma training can help to deal with CMM’s Quantitative Process Management and Defect Prevention requirements </li></ul></ul><ul><ul><li>CMM can clarify how to use Six Sigma techniques for software process </li></ul></ul><ul><ul><li>Important to note that organizations can achieve level 4 and 5 without using Six Sigma techniques </li></ul></ul><ul><ul><ul><li>Many utilize their own statistical methods and analysis </li></ul></ul></ul><ul><ul><ul><li>Sometimes ad-hoc, as mentioned before CMM does not tell you necessarily how to accomplish a level, just what need to be accomplished </li></ul></ul></ul>
    33. 33. Benefits from SW CMM and Six Sigma <ul><li>Study of utilizing them together: </li></ul><ul><ul><li>Tata Consultancy Service development center reduced cost of process failures from 5 to 1 percent, thus reducing total quality cost </li></ul></ul><ul><ul><li>Improved cycle time and productivity </li></ul></ul><ul><ul><li>Scheduled slippage was reduced from a range of +-20 percent to +-2 percent saving the company roughly $700k over 3 years </li></ul></ul><ul><ul><li>Amazingly, at the time of the article, clients had not reported any defects in their software products! </li></ul></ul>
    34. 34. Summary <ul><li>Six Sigma is a process methodology that focuses on quantitatively measuring a process in order to control and improve upon it </li></ul><ul><li>Six Sigma strives for 3.4 Defects Per Million Opportunities (DPMO) so that it is within six standard deviations of the mean </li></ul><ul><li>SW CMMI is a process improvement model for software engineering that is divided into levels and contains a list of key process areas </li></ul>
    35. 35. Summary <ul><li>Six Sigma and CMMI can be utilized together to improve the software engineering process </li></ul><ul><li>Six Sigma’s more advanced statistical methods can be applied to assist in quantitatively analyzing data within CMMI’s level 4 and 5 </li></ul><ul><li>Six Sigma can also complement any individual process within CMMI by utilizing techniques such as process mapping </li></ul>
    36. 36. Conclusion <ul><li>Lastly, the effects of implementing Six Sigma and CMMI can highly improve the quality of the product developed and individual processes which can directly impact a business's bottom line and customer satisfaction </li></ul>
    37. 37. References <ul><li>David N. Card, “Sorting out Six Sigma and the CMM”, IEEE Softwar e, May June 2000, pp. 11-13 </li></ul><ul><li>Jack Horgan, “Six Sigma and CMM”, September 13 - 17, 2004, </li></ul><ul><li>M. Murugappan and G. Keeni, “Blending CMM and Six Sigma to Meet Business Goals”, IEEE Softwar e, March/April 2003 </li></ul><ul><li>“ IT Perspective: Balancing Six Sigma and the Capability Maturity Model (CMM ®/CMMI SM )”, </li></ul><ul><li>SEI Website, http:// / </li></ul><ul><li>Six Sigma, </li></ul><ul><li>Thomas Pyzdek, &quot;DMAIC and DMADV&quot;, Pyzdek Consulting, Inc. Six Sigma Handbook, </li></ul>
    38. 38. <ul><li>Questions Or Comments? </li></ul>