3 CMMI® Views

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Hundreds of DoD contractors and commercial organizations have adopted the Capability Maturity Model Integrated (CMMI). Their published results show improved cost and schedule performance. Despite these results, there is still community debate over the value of CMMI, and whether CMMI ratings provide sufficient guarantees of program performance. Much of the confusion results from: (1) inaccurate CMMI ratings; (2) over-estimating the benefits that CMMI provides a customer; and (3) contractors not living up to their CMMI rating. This program will explore each of these topics individually.
Does CMMI Benefit the Customer?
What are the true benefits of Level X – to the customer? This presentation will explore the issues, by examining the fundamental principles behind the model, from a customer perspective. Costs and benefits to the customer will be emphasized, focusing on the relationship of CMMI practices to productivity, predictability and speed, as well as the cost of implementing CMMI-compliant processes. Timelines for impacting program performance, and practical tips and techniques for realizing the benefits will be highlighted.
How High Maturity Projects Fail
Process maturity supposed helps project deliver predictably on-time and on-budget. Why then, have we had a string of project failures from supposedly mature organizations, even ones that have achieved high maturity (Levels 4 and 5)? The presentation will examine the reasons why projects failure, and their relationship to process maturity. Some failures are due to non-process effects -- people, products, and technology. Mature processes diminish some of these effects and amplifying others. Some of the failures are due to projects not using the assets and capabilities of a mature organization. This presentation will identify the needed assets and discuss critical project start-up activities.
How to Get Contractors to Live Up to Their CMMI Ratings
Like many sports stars and teams, it is possible to have tremendous capabilities, but not live up to those in practice. Similarly, project teams may fail to live up to the capabilities implied by their CMMI level. This presentation describes simple, but effective ways to ensure CMMI practices are used on a project, and provide measurable benefits to the customer. Methods presented are based on techniques used successful by Northrop Grumman Corporation to monitor and manage their key suppliers.

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3 CMMI® Views

  1. 1. Process Improvementin the Aerospace IndustryCMMI and Lean Six Sigma USC CS510 – 9 Nov 2010 Rick Hefner, Ph.D. Northrop Grumman Corporation Rick.Hefner@ngc.com
  2. 2. Agenda • Current Challenges Facing the Aerospace Industry • Current Industry Approaches – Capability Maturity Model Integrated – Lean Six Sigma • Northrop Grumman Approach2
  3. 3. NDIA Top 5 Systems Engineering Issues (2006) • Key systems engineering practices known to be effective are not consistently applied across all phases of the program life cycle. • Insufficient systems engineering is applied early in the program life cycle, compromising the foundation for initial requirements and architecture development. • Requirements are not always well-managed, including the effective translation from capabilities statements into executable requirements to achieve successful acquisition programs. • The quantity and quality of systems engineering expertise is insufficient to meet the demands of the government and the defense industry. • Collaborative environments, including SE tools, are inadequate to effectively execute SE at the joint capability, system of systems (SoS), and system levels.3 Systems Engineering Update, NDIA Top 5 Issues Workshop. July 26, 2006. Briefing by Mr. Robert Skalamera
  4. 4. Agenda • Current Challenges Facing the Aerospace Industry • Current Industry Approaches – Capability Maturity Model Integrated – Lean Six Sigma – Agile • Northrop Grumman Approach4
  5. 5. Heritage of Standards for Systems Engineering 2002 2002 ISO/IEC ISO/IEC 15504 19760 (FDIS) (PDTR) 1998 1994 EIA 2002 EIA / IS 632 ISO/IEC 632 15288 (Full Std) 1994 (Interim Standard) (FDIS) 1974 Mil-Std- 1998 1994 1969 Mil-Std- 499B IEEE 1998 EIA/IS Mil-Std- 499A (Not Released) 731 1220 IEEE 499 SE CM (Trial Use) 1220 (Interim Standard) (Full Std) 2002 CMMI- Legend SE/SW/IPPD Supersedes Source for Standards for Systems Engineering, Jerry Lake, 20025
  6. 6. The Frameworks Quagmire Sarah A. Sheard, Software Productivity Consortium6 http://stsc.hill.af.mil/crosstalk/1997/sep/frameworks.asp
  7. 7. Two Complimentary Approaches to Process Improvement Model-Driven (e.g., CMMI) Data-Driven (e.g., Lean Six Sigma) • Determine the industry best • Clarify what your customer practice wants (Voice of Customer) – Benchmarking, models – Critical to Quality (CTQs) • Compare your current practices to • Determine what your processes the model can do (Voice of Process) – Appraisal, education – Statistical Process Control • Identify and prioritize • Identify and prioritize improvement opportunities improvement opportunities – Implementation – Causal analysis of data – Institutionalization • Anticipate your customers/ • Look for ways to optimize the competitors (Voice of Business)7 processes – Design for Six Sigma
  8. 8. Agenda • Current Challenges Facing the Aerospace Industry • Current Industry Approaches – Capability Maturity Model Integrated – Lean Six Sigma • Northrop Grumman Approach8
  9. 9. What is the Capability Maturity Model Integrated? • The CMMI is a collection of industry best-practices for engineering, services, acquisition, project management, support, and process management – Developed under the sponsorship of DoD – Consistent with DoD and commercial standards Three Constellations sharing common components and structure • CMMI for Development - used by engineering organizations • CMMI for Acquisition - used by buyers (e.g., govt. agencies) • CMMI for Services - used by service providers (e.g., help desk)9
  10. 10. The Basic Building Blocks of CMMI – 22 Process Areas Implemented by Implemented by each project the organization Project Management Engineering Support Process Management • Project Planning • Requirements • Configuration • Organizational Development Management Process Focus • Project Monitoring and • Requirements • Process and • Organizational Control Management Product Quality Process • Technical Assurance Definition • Supplier Agreement Solution • Measurement • Organizational Management • Product and Analysis Training Integration • Decision Analysis • Organizational • Integrated • Verification and Resolution Process Project • Causal Analysis Performance Management) • Validation and Resolution • Organizational • Risk Innovation and Management Deployment • Quantitative Project Management10
  11. 11. Expected Practices Provide Guidance for Implementation & Institutionalization Project Planning – Implementation Project Planning - Institutionalization SG 1 Establish Estimates GG 2 Institutionalize a Managed Process SP 1.1 Estimate the Scope of the GP 2.1 Establish an Organizational Project Policy SP 1.2 Establish Estimates of Work GP 2.2 Plan the Process Product and Task Attributes GP 2.3 Provide Resources SP 1.3 Define Project Life Cycle GP 2.4 Assign Responsibility SP 1.4 Determine Estimates of Effort GP 2.5 Train People and Cost GP 2.6 Manage Configurations SG 2 Develop a Project Plan GP 2.7 Identify and Involve Relevant SP 2.1 Establish the Budget and Stakeholders Schedule GP 2.8 Monitor and Control the Process SP 2.2 Identify Project Risks GP 2.9 Objectively Evaluate Adherence SP 2.3 Plan for Data Management GP 2.10 Review Status with Higher SP 2.4 Plan for Project Resources Level Management SP 2.5 Plan for Needed Knowledge and GG 3 Institutionalize a Defined Process Skills GP 3.1 Establish a Defined Process SP 2.6 Plan Stakeholder Involvement GP 3.2 Collect Improvement Information SP 2.7 Establish the Project Plan SG 3 Obtain Commitment to the Plan SP 3.1 Review Plans that Affect the Project SP 3.2 Reconcile Work and Resource Levels SP 3.3 Obtain Plan Commitment11
  12. 12. Practice Ratings for the Organization/Projects12
  13. 13. How is the CMMI Used for Process Improvement? IDEAL Model www.sei.cmu.edu/ideal/13
  14. 14. Typical CMMI Benefits Cited in Literature • Reduced costs – 33% decrease in the average cost to fix a defect (Boeing) – 20% reduction in unit software costs (Lockheed • Greater Productivity Martin) – 25-30% increase in productivity within 3 years • Faster Schedules (Lockheed – 50% reduction in release Martin, Harris, Siemens) turnaround time (Boeing) – 60% reduction in re-work • Higher Quality following test (Boeing) – 50% reduction of software defects (Lockheed Martin) • Customer Satisfaction – 55% increase in award fees (Lockheed Martin)14
  15. 15. Agenda • Current Challenges Facing the Aerospace Industry • Current Industry Approaches – Capability Maturity Model Integrated – Lean Six Sigma • Northrop Grumman Approach15
  16. 16. What is Lean Six Sigma (LSS)? • Lean Six Sigma is a powerful approach to improving the work we do • LSS improvement projects are performed by teams • Teams use a set of tools and techniques to understand problems and find solutions • Lean Six Sigma integrates + tools and techniques from two proven process improvement methods16
  17. 17. Six Sigma • A management philosophy based on meeting business objectives by reducing variation – A disciplined, data-driven methodology for decision making and process improvement • To increase process performance, you have to decrease variation • Greater Too early Too late Too early Too late predictability in the process Defects Defects • Less waste and rework, which Reduce lowers costs Delivery Time variation • Products and Delivery Time services that Spread of variation Spread of variation perform better too wide compared to narrow compared to and last longer specifications specifications • Happier17 customers
  18. 18. DMAIC Roadmap Define Measure Analyze Improve Control Define Identify Explore Identify Define project needed data possible control scope data solutions method Establish Obtain Characterize Select Implement formal data set process & solution project problem Document Evaluate Implement data quality Update (pilot as improvement needed) project scope Summarize & scale & baseline Evaluate data [Hallowell-Siviy 05]18
  19. 19. DMAIC Toolkit Define Measure Analyze Improve Control Benchmark GQIM and Cause & Effect Design of Statistical Contract/Charter Indicator Diagrams/ Matrix Experiments Controls: Templates Failure Modes & Modeling Control Kano Model Data Collection Effects Analysis ANOVA Charts Voice of the Methods Customer Statistical Tolerancing Time Series Measurement Inference methods Voice of the System Robust Design Business Reliability Evaluation Analysis Systems Quality Function Thinking Non-Statistical Deployment Root Cause Controls: Analysis, includi Decision & Risk Analysis Procedural ng 5 Whys adherence Hypothesis Test PSM Perform Analysis Model Performance Mgmt Preventive measures19
  20. 20. Design for Six Sigma (e.g., DMADV) Define Measure Analyze Design Verify Define Identify Explore Develop Evaluate project customers data detailed pilot scope design Scale-up Research Design Refine Establish design VOC solution predicted formal project performance Document Benchmark Predict performance Develop pilot Quantify CTQs20
  21. 21. Lean • Series of tools and techniques refined by Toyota and called the “Toyota Production System” – Called “Lean” by Womack, Jones and Roos in The Machine That Changed the World • Focused on increasing efficiency by eliminating non-value added process steps and wasteful practices • Being adopted world-wide by both manufacturing and transactional based organizations • Utilizes tools like “Value Stream Mapping,” “Just in Time” and “Kaizen” LEAN FOCUS: ELIMINATE WASTE AND REDUCE CYCLE TIME21
  22. 22. Wastes in Production CORRECTION • MOTION WAITING Repair or Rework Any wasted motion Any non-work time to pick up parts or waiting for tools, stack parts. Also supplies, parts, etc.. wasted walking Types PROCESSING OVERPRODUCTION of Producing more Doing more work than Waste than is needed is necessary before it is needed INVENTORY CONVEYANCE Maintaining excess inventory of raw mat’ls, Wasted effort to transport parts in process, or materials, parts, or finished goods. finished goods into or out of storage, or between processes.22
  23. 23. Organizational Adoption: Roles & Responsibilities • Champions – Facilitate the leadership, implementation, and deployment • Sponsors – Provide resources • Process Owners – Responsible for the processes being improved • Master Black Belts – Serve as mentors for Black Belts • Black Belts – Lead major Six Sigma projects – Typically requires 4 weeks of training • Green Belts – Lead minor Six Sigma teams, or serve on improvement teams under a Black Belt – Typically requires 2 weeks of training23
  24. 24. A Typical Lean Six Sigma Project in Aerospace The organization notes that systems integration has been problematic on past projects (budget/schedule overruns) A Six Sigma team is formed to scope the problem, collect data from past projects, and determine the root cause(s) The team’s analysis of the historical data indicates that ineffective peer reviews are leaving significant errors to be found in test Procedures and criteria for better peer reviews are written, using best practices from past projects A pilot project uses the new peer review procedures and criteria, and collects data to verify they solve the problem The organization’s standard process and training is modified to incorporate the procedures and criteria, to prevent similar problems on future projects24
  25. 25. Agenda • Current Challenges Facing the Aerospace Industry • Current Industry Approaches – Capability Maturity Model Integrated – Lean Six Sigma • Northrop Grumman Approach25
  26. 26. Northrop Grumman Approach: Mission Success Requires Multiple Approaches Risk Management Dashboards for Enterprise-Wide Systems Engineering Program Measurement Independent Reviews Effectiveness Communications & & Cost Estimates Best-Practice Sharing Training, Tools, & Mission Assurance & Robust Governance Model Templates Enterprise (Policies, Processes, Excellence Procedures) Process Operations Effectiveness Effectiveness CMMI Level 5 for Software, Systems, and Services ISO 9001 and AS-9100 Certification Six Sigma26
  27. 27. Organizational Infrastructure Required for CMMI Level 3 Policies, Processes, Process Group Training Program Process Improvement Templates & Tools Measurement Repositories Best-Practice Libraries Audits & Appraisals Communications Predictive Modeling Defects per component 25 20 15 UCL 10 5 _ X 0 1 11 21 31 41 51 61 71 Component # Developing and maintaining mature processes requires significant time and investment in infrastructure27
  28. 28. Northrop Grumman Approach: Institutionalizing Our Improvements We systematically analyze quality and We improve our process assets process data and trends to determine based on internal and external best how to improve our processes practices Deployed Analysis Disposition to Information programs ISO/AS9100 Findings Industry • Systems/ Policy Software Standards Configuration CMMI Appraisal Control Board Engineering Internal Findings Process Group Process Best Practices Customer • QMS Working Six Sigma Comments Group Procedures Projects Independent • Program External Checklists and Audits Management Advisory Board Best Practices Guides Lessons Learned & Metrics Templates and Examples Tools eToolkit msCAS PAL Increasing StartIt! My MS Portal Workbench PCDB program28 efficiency
  29. 29. Northrop Grumman Approach: Lessons Learned • Multiple improvement initiatives helps encourage a change in behavior as opposed to “achieving a level” – Reinforces that change (improvement) is a way of life • Benefits results from institutionalizing local improvements across the wider organization – CMMI establishes the needed mechanisms • CMMI and Lean Six Sigma compliment each other – CMMI can yield behaviors without benefits – Lean Six Sigma improvements based solely on data may miss innovative improvements (assumes a local optimum) • Training over half the staff as Lean Six Sigma Green Belts has resulted in a change of language and culture – Voice of Customer, data-driven decisions, causal analysis, etc. – Better to understand/use tools in everyday work than to adopt the “religion”29

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