The document discusses several process improvement frameworks and methodologies: - CMMI provides maturity levels to guide process improvement for product development, services, and acquisition. It originated for software but has been generalized. - Lean focuses on eliminating waste in manufacturing and production. Principles include reducing overburden and uneven workloads. - Lean Engineering aims to increase engineering efficiency by reducing waste, while Lean Manufacturing focuses more on inventory control and production processes. - ITIL provides best practices for IT service management and underpins the ISO 20000 standard, though there are some differences between the frameworks. ITIL was influenced by Deming's process model view of operations management.

1. HOW TO BUILD A STRATEGIC
TRANSFORMATION PRACTICE
James Woolwine

2. CMMI
 Capability Maturity Model Integration (CMMI) is a process improvement training and appraisal
program and service administered and marketed by Carnegie Mellon University and required
by many DoD and U.S. Government contracts, especially in software development.
 Carnegie Mellon University claims CMMI can be used to guide process improvement across a
project, division, or an entire organization. CMMI defines the following maturity levels for
processes: Initial, Managed, Defined, Quantitatively Managed, Optimizing. Currently supported
is CMMI Version 1.3.
 CMMI currently addresses three areas of interest:
 Product and service development — CMMI for Development (CMMI-DEV),
 Service establishment, management, — CMMI for Services (CMMI-SVC)
 Product and service acquisition — CMMI for Acquisition (CMMI-ACQ).
 CMMI originated in software engineering but has been highly generalized over the years to
embrace other areas of interest, such as the development of hardware products, the delivery
of all kinds of services, and the acquisition of products and services. The word "software" does
not appear in definitions of CMMI. This generalization of improvement concepts makes CMMI
extremely abstract.

4. LEAN MANUFACTURING/PRODUCTION
 Lean manufacturing or lean production, often simply referred to as "lean", is a
systematic method for the elimination of waste within a manufacturing
process.
 Lean also takes into account waste created through overburden and waste
created through unevenness in work loads.
 Working from the perspective of the client who consumes a product or
service, "value" is any action or process that a customer would be willing to
pay for.
 Essentially, lean is centered on making obvious what adds value by reducing
everything else.
 Lean can be seen as a set of principles whose goal is cost reduction by the
elimination of waste.
 These principles include: pull processing, perfect first-time quality, waste
minimization, continuous improvement, flexibility, building and maintaining a
long term relationship with suppliers, automation, load leveling and
production flow and visual control.

5. LEAN ENGINEERING
 Lean Engineering is a concept developed to increase the
efficiency of engineering departments within manufacturing
companies. It is the continual process to increase the amount of
valid engineering data (Engineering Intelligence) produced per
dollar invested.
 The process involves an honest review of the current situation,
followed by a series of adjustments to address inefficiencies one
at a time. Each incremental step is planned out and justified
before changes are made. This "success and repeat" method
works to gain the confidence of all the team members from top
management on down to the base worker.

6. LEAN ENGINEERING/MANUFACTURING
 It is important to note that, while both Lean Engineering and Lean
Manufacturing focus on improving efficiency and share some of the
same concepts, all the concepts are not the same.
 Lean Manufacturing is a proven process used to increase the
production efficiency of a manufacturing shop.
 Attempts to use Lean Manufacturing principles in an Engineering
department are met with only minimal success. This is largely due to
the fact that Lean Manufacturing increases efficiency through
inventory control and production process improvements and
Engineering doesn't have inventory and in most cases is not a
"production" environment.
 The intention is to use Lean Manufacturing concepts where they
make sense and adjust or add new concepts that make sense within
Engineering.

7. LEAN ENGINEERING REVIEW
 Engineering Review
 The first step in the Lean Engineering process is to have an honest review of
the current situation within Engineering. This involves defining Engineering's
role within the larger organization as well as identifying the Resources and
Processes that make up Engineering.
 Defining Engineering's Role
 To define Engineering's role within the larger organization a few major
questions need to be answered.
 Who is Engineering's Customer?
 One of the concepts borrowed from Lean Manufacturing is to define Value
based on the customer's perspective. In Lean Engineering we need to
determine who Engineering's customer is in order to determine the Value of
tasks performed and deliverables created. Most Engineering departments
have a number of customers ranging from the shop floor to purchasing to the
end customer.

8. LEAN ENGINEERING REVIEW
 What does Engineering Produce?
 Once we've determined who Engineering's customer is we need to take a closer look at
exactly what Engineering produces. Engineering deliverables usually include drawings,
specification documents, Bills of Material and so on. As a whole we will refer to this type of
information as Engineering Intelligence. It is the physical or digital record of the organization's
Intellectual Property.
 How do you measure your Engineering Intelligence production?
 Before any improvements can be made, it is first important to understand what is being
improved. In order to improve engineering though-put we first have to measure that through-
put. Determining a unit of measure should be done at a business level rather than a
department level. This is a difficult task, as all measurable items, such as the number of
drawings, jobs, estimates, etc. do not all have the same Value. As mentioned earlier it is very
important in a Lean process to determine Value from the customer's perspective. Keep in
mind, often these customers are internal customers.
 The Formula for Generating Engineering Intelligence
 Philosophically speaking, in order to generate any output, Resources must be used in a Process over a certain
amount of Time.
 Resources + Processes + Time = Output

9. ITIL/ISO/DEMING
 ITIL, formerly known as the Information Technology Infrastructure
Library, is a set of practices for IT Service Management (ITSM) that
focuses on aligning IT services with the needs of business.
 In its current form (known as ITIL 2011 edition), ITIL is published as a
series of five core volumes, each of which covers a different ITSM
lifecycle stage.
 Although ITIL underpins ISO/IEC 2000 the International Service
Management Standard for IT service management, there are some
differences between the ISO 20000 standard and the ITIL framework.
 ITIL describes processes, procedures, tasks, and checklists which
are not organization-specific, but can be applied by an organization
for establishing integration with the organization's strategy, delivering
value, and maintaining a minimum level of competency.

10. ITIL/ISO/DEMING
 It allows the organization to establish a baseline from which it can plan,
implement, and measure.
 It is used to demonstrate compliance and to measure improvement.
 Responding to growing dependence on IT, the UK Government's Central
Computer and Telecommunications Agency (CCTA) in the 1980s developed a
set of recommendations.
 It recognized that, without standard practices, government agencies and
private sector contracts had started independently creating their own IT
management practices.
 The IT Infrastructure Library originated as a collection of books, each
covering a specific practice within IT Service Management (ITSM). ITIL was
built around a process model-based view of controlling and managing
operations often credited to W. Edwards Deming (sometimes credited with
the post-WW2 Japanese economic miracle).

11. WHAT SHOULD A CONSULTING
COMPANY DO?
 Develop an evaluation methodology/company assessment
process
 Should be free
 Should be done within a short period of time
 Assess every company for process maturity
 Based on the evaluation, offer needed remediation services
 The delivery mechanism will be very different for each company…sometimes
software, sometimes process, sometimes people, and sometimes
structural/procedural
 Very few consulting companies both implement, consult, and
transform companies

12. WHERE TO BUILD A TWO-WEEK
ASSESSMENT MODEL
 Engineering
 Manufacturing Global Supply Chain
 Sales
 Finance (Are the days of the 3 day close over?)
 Profitability
 Marketing
 Organizational
 Internal Communication
 Governance (Maintain the change)
 Customer Satisfaction
 NPS (Net Promoter Score)