Application of the CMMISM to Plan and Control Life Cycle Costs

Dr. Mary Anne HerndonScience Applications International Corporation (SAIC)November, 2003

CMM, Capability Maturity Model, and Capability Maturity Modeling are registered in the U.S. Patent and Trademark Office.SM CMMI is a service mark of Carnegie Mellon University.SM SCAMPI is a service mark of Carnegie Mellon University.

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Introduction1. Agility to successfully respond to rapidly

changing business environments and customer priorities is critical to long term survivability.

2. Infrastructure support is expected to provide more services while minimizing costs over the life cycle of technology programs.

3. Planning and controlling life cycle costs needs to focus on implementing capable/mature processes for the infrastructure support services as well as the technology programs.

4. Application of the CMMI model practices and SCAMPISM appraisal methods provide a common framework to achieve capability and maturity in both the technology programs and infrastructure support functions.

FY 08

Your Life Cycle Cost Planners

Your Competition

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Challenges in Planning & Controlling Life Cycle Costs

Infrastructure Support SE/SI/SW Technology

Contract Administration1. Finance2. Contracts3. HR4. Security

Service/Product Implementation1. Culture Sustainment2. Dynamic Service Levels3. Emerging Technologies4. Changes in Competition

FY 05 FY 06 FY 07

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Perpetuating Stovepipes:Organizational Process Improvement

- Parallel Strategies -

Finance

Contracts

Security

HR

Six SigmaBalanced ScorecardLean, ISO

Technology ProgramsSoftware System Engineering

CMMIS/W CMMEIA 731, ISOSix Sigma

EnterpriseROI ?

Infrastructure Services

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Organizational Process Improvement Via CMMI

Technology ProjectsSoftware System EngineeringSystems Integration

CMMI Model Practices are:

Infrastructure ProjectsFinanceContractsSecurityHR

Applicable to product/services domains

Most frequently applied in organizations toimplement process improvement in technology projects

Infrequently applied to improve infrastructure support services(paradoxical as support services are permanent but increasing cost componentsover the life cycle)

• Enterprise model (top down)• Common set of good management practices• Standard appraisal method• Integration of process improvement initiatives

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Process Improvement Investment Strategy

“Applying the CMMI Across the Enterprise”

CMMI

Implementing CMMI model practices across both infrastructure support services andtechnology domains integrates process improvement into the Enterprise using a common set of good management practices and appraisal method.

HR

Contracts

Line

Structure

TechnologyProjects

Finance

Safety

Security

BusinessDevelopment

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CMMI Model Applications to Planning & Controlling Life Cycle Costs

Infrastructure Support Services

Contract Administration1. Finance2. Contracts3. HR4. Security

SE/SI/SW Technology

Service/Product Implementation1. Sustainment2. Dynamic Service levels3. Emerging Technologies4. Changes in Competition

Project Planning &Monitoring & Control

Process & Product Quality Assurance

Risk Management Measurement & Analysis

PP PMC

RSKM M&A

PPQA

CMMI Practices Are Applicable to Service Organizations

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Implementing Planning and Controlling Future Life Cycle Costs

Infrastructure ProjectsFinanceContractsSecurityHR

• Focus on building processimprovement equity ininfrastructure support services &technology projects usingCMMI and SCAMPI.

• Technology projects are transient – infrastructure support services are not.

• Set process performancegoals for infrastructure supportservices. Use practices in higher capabilityPAs to implement processes to stabilizeand predict cost performance.

• Predictive infrastructure services processesare important tools in planningand controlling future life cycle costs.

Predictiveinfrastructure processes

12

34

5

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Integrating Process Improvement Initiatives

Technology ProjectsSoftwareSystem EngineeringSystems Integration

Infrastructure ProjectsFinanceContractsSecurityHR

Enterprise Process Improvement Team

• Prioritize and select “projects” based upon business goals ( e.g. minimizing and predicting support infrastructure life cycle costs).• Define charter for Enterprise Process Improvement team and select members.

• Develop and staff CMMI implementation project.

• Assess process improvement progress (SCAMPI).

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Implementation Tips in Applying CMMI Practices to Infrastructure Support Services

• Recognize that infrastructure services are PROJECTS with: requirements, schedules, resources, measurements and risks and need appropriate levels of QA, CM, training and stakeholder involvement. • Plan infrastructure process improvement projects in parallel with technology projects.

• Provide CMMI training to infrastructure support teams.

• Include experts in infrastructure support functions on SCAMPI teams

Implementation Tips CMMI PAs1. Projectize infrastructure

functions. Collect, analyze and

manage requirements.

PP, PMC, IPM, PPQA,CM, RD, REQM

2. Develop/implement measurements.

M&A

3. Develop/integrate risk management.

RSKM

4. Appraise infrastructure or enterprise progress using SCAMPI methods

OPF

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Annual Plan

PP, PMC, IPM

CorporateHomepages

Budget builtfrom

estimates

ProcessFlows

TrainingProgram

OverviewPresentations

ISG ProcessGuidance

Effort, Cost

Plan for Training

Lifecycle, Stakeholders,Schedule, Etc.

Scope, Resources

Scope, Resources,Training Needs

Communicate Plan

ProcessGuidance

Process Flows

Participating infrastructuresupport organizations

1. Implementing Project Planning (PP) and Monitoring and Control (PMC), Integrated Management (IPM) Process Areas

REVIEWS/AUDITSCFI A-9Head Count AAPT&M Certs

PPQA

Items•Baseline•Releases •Change control•Audits

Stop Light Report provides a “health check” by integrating the results of all the functional area audits and reviews

REQUIREMENTSPlanning GuidanceRevenue ProfitsLegal

CM

REQM & RM

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Annual Plan

Requirements Management

CorporateHomepages

FA Process Flows

3-Year StrategicPlan

ISG RequirementsStakeholders

Policies include ReqsManage Reqs

FA RequirementsStakeholdersWork Plans

Requirements BaselineManage Changes

Inconsistencies IdentifiedCommitmentWork Plans

Management

Annual PlanningGuidance

Corporate RequirementsStakeholders

Mid-year Plan

ISG ProcessGuidance

Group Guidance

Requirements BaselineManage Changes

BusinessPlanningProcess(PC Plan)

Corporate Homepages(CFIs)

Business PlanPerformanceTracking (CFI A-9)

Mid-year Forecast

Corporate

Infrastructure Managers

REPORTSFinanceHead Count

T&M Certs

REVIEWS/AUDITSCFI A-9Head CountAAPT&M Certs

Dash Board

Analysis

Analysis

2. Implementing Measurement & Analysis (M&A) PA.

Thresholds

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Annual Plan

Requirements Management

CorporateHomepages

3-Year StrategicPlan

ISG RequirementsStakeholders

FA RequirementsStakeholdersWork Plans

Requirements BaselineManage Changes

Inconsistencies IdentifiedCommitmentWork Plans

Management

Annual PlanningGuidance

Corporate RequirementsStakeholders

Mid-year Plan

ISG ProcessGuidance

Group Guidance

Requirements BaselineManage Changes

BusinessPlanningProcess

Corporate Homepages

Business PlanPerformanceTracking

Mid-year PlanningProcess

Corporate

Formal risk tracking

Formal risk tracking

Infrastructure Managers

Formal risk identification

Finance

Contracts

HR

3. Implementing the Risk Management (RSKM) Process Area

REPORTSFinanceHead CountAAPT&M Certs

Risks & Probability

QRAM

Security

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4. Implementing Organizational Process Focus (OPF) Process Area.

Proxy: Technology Projects

SCAMPI Appraisal Team

Proxy: Infrastructure Projects

Artifacts

SCAMPI Benchmark

OPF

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Progress To-Date

LeveragedTechnology

S/W CMM ML 3

July2002

Infrastructure & TechnologyClass C

Appraisals

Feb 2003

April 2003 TBD

Dec 2002

SE/SIServicescontract

CMMI ML 2Class A

CL 3PP, PMC, M&A,PPQA, IPM, RSKM,CM, RM,SAM

Class B Appraisal

July 2003

OrganizationClass A

CMMI ML 3Appraisal

Sept 2003

Proxy:Technology Projects

Infrastructure Projects

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Summary• Infrastructure support services and technology projects are BOTH necessary components of life cycle costs to predict and control.

• Infrastructure support services are permanent residents while any specific technology program is transient.

• Implementing CMMI model practices across the organization provides a common framework to preserve and build upon process improvement equity.

• The SCAMPI appraisal method provides a common method to measure the Enterprise’s progress in meeting process improvement goals.