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Process Improvement in the Aerospace Industry CMMI and Lean Six Sigma . Warren Scheinin. USC CS510. Agenda. Current Challenges Facing the Aerospace Industry Current Industry Approaches Capability Maturity Model Integrated Lean Six Sigma Northrop Grumman Approach.

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agenda
Agenda
  • Current Challenges Facing the Aerospace Industry
  • Current Industry Approaches
    • Capability Maturity Model Integrated
    • Lean Six Sigma
  • Northrop Grumman Approach
ndia top 5 systems engineering issues 2006
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.

Systems Engineering Update, NDIA Top 5 Issues Workshop. July 26, 2006. Briefing by Mr. Robert Skalamera

agenda1
Agenda
  • Current Challenges Facing the Aerospace Industry
  • Current Industry Approaches
    • Capability Maturity Model Integrated
    • Lean Six Sigma
    • Agile
  • Northrop Grumman Approach
heritage of standards for systems engineering
Heritage of Standards for Systems Engineering

2002

2002

ISO/IEC 15504

ISO/IEC 19760

(FDIS)

(PDTR)

1998

1994

2002

EIA

632

ISO/IEC 15288

EIA / IS 632

(Full Std)

1994

(FDIS)

(Interim Standard)

Mil-Std-499B

1974

1998

1994

Mil-Std-499A

1969

EIA/IS 731

SE CM

IEEE 1220

1998

Mil-Std-499

(Not Released)

IEEE 1220

(Trial Use)

(Interim Standard)

(Full Std)

2002

CMMI-

SE/SW/IPPD

Legend

Supersedes

Source for

Standards for Systems Engineering, Jerry Lake, 2002

the frameworks quagmire sarah a sheard software productivity consortium
The Frameworks QuagmireSarah A. Sheard, Software Productivity Consortium

http://stsc.hill.af.mil/crosstalk/1997/sep/frameworks.asp

two complimentary approaches to process improvement
Two Complimentary Approaches to Process Improvement

Data-Driven (e.g., Lean Six Sigma)

  • Clarify what your customer wants (Voice of Customer)
    • Critical to Quality (CTQs)
  • Determine what your processes can do (Voice of Process)
    • Statistical Process Control
  • Identify and prioritize improvement opportunities
    • Causal analysis of data
  • Anticipate your customers/ competitors (Voice of Business)
    • Design for Six Sigma

Model-Driven (e.g., CMMI)

  • Determine the industry best practice
    • Benchmarking, models
  • Compare your current practices to the model
    • Appraisal, education
  • Identify and prioritize improvement opportunities
    • Implementation
    • Institutionalization
  • Look for ways to optimize the processes
agenda2
Agenda
  • Current Challenges Facing the Aerospace Industry
  • Current Industry Approaches
    • Capability Maturity Model Integrated
    • Lean Six Sigma
  • Northrop Grumman Approach
what is the capability maturity model integrated
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)
basic building blocks 22 process areas
Basic Building Blocks – 22 Process Areas

Implemented by

the organization

Implemented by

each project

Project Management

  • Project Planning
  • Project Monitoring and Control
  • Supplier Agreement Management
  • Integrated Project Management)
  • Risk Management
  • Quantitative Project Management
  • Process Management
    • Organizational Process Focus
    • Organizational Process Definition
    • Organizational Training
    • Organizational Process Performance
    • Organizational Performance Management
  • Engineering
    • Requirements Development
    • Requirements Management
    • Technical Solution
    • Product Integration
    • Verification
    • Validation
  • Support
    • Configuration Management
    • Process and Product Quality Assurance
    • Measurement and Analysis
    • Decision Analysis and Resolution
    • Causal Analysis and Resolution
expected practices provide guidance for implementation institutionalization
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 Phases

SP 1.4 Estimate 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 Data Management

SP 2.4 Plan the Project’s Resources

SP 2.5 Plan 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 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 a Defined Process

GP 3.1 Establish a Defined Process

GP 3.2 Collect Improvement Information

Expected Practices Provide Guidancefor Implementation & Institutionalization

Project Planning – Implementation Project Planning - Institutionalization

how is the cmmi used for process improvement
How is the CMMI Used for Process Improvement?

IDEAL Model

www.sei.cmu.edu/ideal/

typical cmmi benefits cited in literature
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 Martin)
  • Faster Schedules
    • 50% reduction in release turnaround time (Boeing)
    • 60% reduction in re-work following test (Boeing)
  • Greater Productivity
    • 25-30% increase in productivity within 3 years (Lockheed Martin, Harris, Siemens)
  • Higher Quality
    • 50% reduction of software defects (Lockheed Martin)
  • Customer Satisfaction
    • 55% increase in award fees (Lockheed Martin)
agenda3
Agenda
  • Current Challenges Facing the Aerospace Industry
  • Current Industry Approaches
    • Capability Maturity Model Integrated
    • Lean Six Sigma
  • Northrop Grumman Approach
what is lean six sigma lss
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

+

six sigma

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

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 predictability in the process
  • Less waste and rework, which lowers costs
  • Products and services that perform better and last longer
  • Happier customers
dmaic roadmap

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

[Hallowell-Siviy 05]

dmaic toolkit

Define

DMAIC Toolkit

Measure

Improve

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

PSM Perform Analysis Model

Statistical Controls:

Control Charts

Time Series methods

Non-Statistical Controls:

Procedural adherence

Performance Mgmt

Preventive measures

design for six sigma e g dmadv

Define project scope

Explore data

Evaluate pilot

Define

Measure

Analyze

Design

Verify

Quantify CTQs

Design for Six Sigma (e.g., DMADV)

Develop detailed design

Identify customers

Scale-up design

Research VOC

Design solution

Refine predicted performance

Establish formal project

Document

Benchmark

Predict performance

Develop pilot

slide21
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

wastes in production
Wastes in Production

CORRECTION

MOTION

Repair or

Rework

WAITING

Any wasted motion

to pick up parts or

stack parts. Also

wasted walking

Any non-work time

waiting for tools,

supplies, parts, etc..

Types

of

Waste

PROCESSING

OVERPRODUCTION

Producing more

than is needed

before it is needed

Doing more work than

is necessary

INVENTORY

CONVEYANCE

Maintaining excess

inventory of raw mat’ls,

parts in process, or

finished goods.

Wasted effort to transport

materials, parts, or

finished goods into or

out of storage, or

between

processes.

organizational adoption roles responsibilities
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 training
a typical lean six sigma project in aerospace
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 projects
agenda4
Agenda
  • Current Challenges Facing the Aerospace Industry
  • Current Industry Approaches
    • Capability Maturity Model Integrated
    • Lean Six Sigma
  • Northrop Grumman Approach
northrop grumman approach mission success requires multiple approaches
Northrop Grumman Approach:Mission Success Requires Multiple Approaches

Risk Management

Systems Engineering

Independent Reviews & Cost Estimates

Training, Tools, & Templates

Dashboards for Enterprise-Wide Measurement

Communications & Best-Practice Sharing

Robust Governance Model (Policies, Processes, Procedures)

Program

Effectiveness

MissionAssurance & Enterprise Excellence

Operations

Process

Effectiveness

Effectiveness

CMMI Level 5 for Software, Systems, and Services

ISO 9001 and AS-9100 Certification

Six Sigma

organizational infrastructure required for cmmi level 3
Organizational Infrastructure Required for CMMI Level 3

Policies, Processes,Templates & Tools

Process Group

Training Program

Process Improvement

Measurement Repositories

Predictive Modeling

Best-Practice Libraries

Audits & Appraisals

Communications

Developing and maintaining mature processes requires significant time and investment in infrastructure

northrop grumman approach institutionalizing our improvements
Northrop Grumman Approach:Institutionalizing Our Improvements

We systematically analyze quality and process data and trends to determine how to improve our processes

We improve our process assets based on internal and external best practices

Deployed to programs

Disposition

Analysis

Information

ISO/AS9100 Findings

  • Systems/ Software Engineering Process Group
  • QMS Working Group
  • Program Management Advisory Board

Industry Standards

Policy

Configuration Control Board

CMMI Appraisal Findings

InternalBest Practices

Process

Customer Comments

Six Sigma Projects

Procedures

Independent Audits

ExternalBest Practices

Checklists and Guides

Lessons Learned & Metrics

Templates and Examples

Tools

msCAS

PAL

eToolkit

Increasing program efficiency

StartIt!

My MS Portal

Workbench

PCDB

northrop grumman approach lessons learned
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”