Capability Maturity Model Integration (CMMI) and Lean Six Sigma (LSS)

1. Capability Maturity Model Integration (CMMI) and Lean Six Sigma (LSS) USC CS510 Lecture Rick Hefner, Ph.D. Northrop Grumman Corporation Rick Hefner, Ph.D. Northrop Grumman Corporation

2. Background • All companies try to maintain their competitive advantage • Hire and retain the best people • Technology investments, research & development • Process improvement • Process improvement typically use two different approaches • Emulating best practices used by industry leaders • Studying the performance of your current processes

3. IDEAL: An Approach to Process Improvement www.sei.cmu.edu/ideal/

4. Capability Maturity Models

5. Capability Maturity Models • A capability maturity model is a set of widely accepted best-practices used by an industry • Structured so it can be easily understood, adopted

6. Capability Maturity Model Integrated (CMMI) is a set of best-practice models • Development projects (software, hardware, systems engineering) • Service projects (Information Technology, professional services) • Acquisition projects (buyers of products and services) • Project Management • Project Planning • Project Monitoring and Control • Supplier Agreement Mgmt. • Integrated Project Mgmt. • Risk Management • Quantitative Project Mgmt. • Support • Configuration Management • Process and Product Quality Assurance • Measurement and Analysis • Decision Analysis and Resolution • Causal Analysis and Resolution • Process Management • Organizational Process Focus • Organizational Process Definition • Organizational Training • Organizational Process Performance • Organizational Innovation and Deployment • Development • Requirements Development • Requirements Management • Technical Solution • Product Integration • Verification • Validation • Services • Service Delivery • Capacity & Availability Management • Incident Resolution & Prevention • Service System Transition • Service Continuity • Service System Development • Strategic Service Management • Acquisition • Solicitation and Supplier Agreement Development • Agreement Management • Acquisition Technical Management • Acquisition Verification • Acquisition Validation

7. 2 Managed Organizational Maturity is Ranked on a 1-5 Scale Level Process Areas • Higher maturity implies the capability to reliably deliver more programmatically challenging systems • Appraisers evaluate the organizational infrastructure and projects against all practices and process areas in the CMMI Causal Analysis and Resolution Organizational Innovation and Deployment 5 Optimizing Quantitative Project Management Organizational Process Performance 4 Quantitatively Managed Requirements Development Technical Solution Product Integration Verification Validation Organizational Process Focus Organizational Process Definition Organizational Training Risk Management Integrated Project Management Decision Analysis and Resolution 3 Defined Requirements Management Project Planning Project Monitoring and Control Supplier Agreement Management Measurement and Analysis Process and Product Quality Assurance Configuration Management 1 Performed

8. How Does Industry Use the CMMI? Companies use the model to identify process improvements • The model identifiespractices mature organizations should use • Companies use the model to set organizational improvement goals (“Achieve CMMI Level 3 in 2005”) Customers use the model to assess contractor capability • May ask an organization about it’s rating • May conduct their own appraisal

9. Project Planning – Goals and Practices Implementation Institutionalization (culture) SG 1 Establish Estimates SP 1.1 Estimate the Scope of the Project SP 1.2 Establish Estimates of Work Product and Task Attributes SP 1.3 Define Project Lifecycle SP 1.4 Determine Estimates of Effort and Cost SG 2 Develop a Project Plan SP 2.1 Establish the Budget and Schedule SP 2.2 Identify Project Risks SP 2.3 Plan for Data Management SP 2.4 Plan for Project Resources SP 2.5 Plan for Needed Knowledge and Skills SP 2.6 Plan Stakeholder Involvement 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 Commitment GG 2 Institutionalize as a Managed Process GP 2.1 Establish an Organizational Policy GP 2.2 Plan the Process GP 2.3 Provide Resources GP 2.4 Assign Responsibility GP 2.5 Train People GP 2.6 Manage Configurations GP 2.7 Identify and Involve Relevant Stakeholders GP 2.8 Monitor and Control the Process GP 2.9 Objectively Evaluate Adherence GP 2.10 Review Status with Higher Level Management GG 3 Institutionalize as a Defined Process GP 3.1 Establish a Defined Process GP 3.2 Collect Improvement Information

10. Practice Ratings for the Organization/Project

11. Lean Six Sigma

12. 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 methods +

13. A Typical Six Sigma Project in Engineering • 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 projects

14. Tooearly Too late Too late Too early Defects Defects Reduce variation Delivery Time Delivery Time Spread of variation too wide compared to specifications Spread of variation narrow compared to specifications What is Six Sigma? • Six Sigma is 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 predictability in the process • Less waste and rework, which lowers costs • Products and services that perform better and last longer • Happier customers

15. Measure Analyze Improve Control A General Purpose Problem-Solving Methodology: DMAIC Problem or goal statement (Y) Define • An improvement journey to achieve goals and resolve problems by discovering and understanding relationships between process inputs and outputs, such as • Refine problem & goal statements. • Define project scope & boundaries. Y = f(defect profile, yield) = f(review rate, method, complexity……)

16. Define project scope Explore data Define control method Define Measure Analyze Improve Control Establish formal project Summarize& baseline data DMAIC Roadmap Identify possible solutions Identify needed data Characterize process & problem Implement Obtain data set Select solution Document Implement (pilot as needed) Evaluate data quality Update improvement project scope & scale Evaluate Phase Exit Review

17. Define DMAIC Toolkit Improve Measure Control Analyze Benchmark Contract/Charter Kano Model Voice of the Customer Voice of the Business Quality Function Deployment GQIM and Indicator Templates Data Collection Methods Measurement System Evaluation Cause & Effect Diagrams/ Matrix Failure Modes & Effects Analysis Statistical Inference Reliability Analysis Root Cause Analysis, including 5 Whys Hypothesis Test Design of Experiments Modeling ANOVA Tolerancing Robust Design Systems Thinking Decision & Risk Analysis Statistical Controls: Control Charts Time Series methods Non-Statistical Controls: Procedural adherence Performance Management Preventive measures

18. The Voices of Six Sigma • Six Sigma includes powerful techniques for understanding the problem you are trying to solve • Voice of Customer • Voice of Process • Voice of Business • These techniques are useful in non-Six Sigma settings for understanding: • Customer requirements and needs • Process performance and capability • Business priorities and trends

19. What is 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 TIME

20. 5 4 3 2 1 5 Principles of Lean Process 1. Define VALUE as seen by your customer 2. Identify the VALUE STREAM for each product 3. Make value FLOW without interruptions 4. Allow customer to PULL value from the producer 5. Continuous pursuit of PERFECTION

21. SEI’s Strategic Classification Taxonomy Summary of the SEI approach of harmonizing multiple models, by Jeannine Siviy and Pat Kirwan, 2008 PrIME Workshop, http://www.sei.cmu.edu/prime/hardquestionsoutput.html

22. Northrop Grumman Approach We improve our process assets based on internal and external best practices We systematically analyze all quality and process data and trends to determine how to improve our processes Deployed to programs Disposition Analysis Information ISO/AS9100 Findings • Process Group • Metrics Working Group • Program Management Advisory Board Industry Standards Policy Configuration Control Board CMMI Appraisal Findings InternalBest Practices Procedures Customer Comments Six Sigma Projects Training Independent Audits ExternalBest Practices Checklists and Guides Lessons Learned & Metrics Templates and Examples Tools eCAS PAL eToolkit StartIt! Workbench PCDB