Copyright 2003 Northrop Grumman Space and Mission Systems

Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.

1


The Fundamentals of Six SigmaThe Fundamentals of Six Sigma

Rick HefnerNorthrop Grumman Mission [email protected]

23 April 2003


2


Agenda

Six Sigma Fundamentals

Applying Six Sigma to Engineering

Organizational Implementation


3


What is Sigma?

Sigma () is the Greek symbol used to represent standard deviation, a measure of the variation from the mean in a normal distribution– Six Sigma implies a process where any value outside the spec

is a extremely rare occurrence

Target upperspec

lowerspec

0.001 parts per million (ppm)

0.001 ppm

± 6 sigmas ( 99.9999998% “good”)


4


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

Defects Defects

Too early Too late

Delivery Time

Reduce variation

Delivery Time

Too early Too late

Spread of variation too wide compared to

specifications

Spread of variation narrow compared to

specifications

Greater predictability in the process

Less waste and rework, which lowers costs

Products and services that perform better and last longer

Happier customers


5


A Typical Six Sigma Project in Software

Customers express concern that software defects are causing frequent failures in the field

A Six Sigma team is formed to scope the problem, collect data, and determine the root cause

The team’s analysis of the data determines that poorly understood interface requirements account for 90% of the problems in the field

The project collects data to verify the problem has been corrected, and continues collecting data to ensure the problem does not return

The organization’s requirements solicitation process is modified to ensure future projects do not encounter similar problems


6


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 Six Sigma projects– Requires 4 weeks of training

Green Belts – Serve on improvement teams under a Black Belt– Requires 2 weeks of training


7


Six Sigma History

1985-1992

Motorola

Texas Instruments

Period of Design

1993-1994

Asea Brown Boveri

Period of Refinement

1994-1996

Allied Signal

General Electric

Period of Results

1996-1997

Nokia Mobile Phones

Bombardier

Siebe

…

Period of Competitive Assessment

1985-1992

Lockheed Martin

Sony

Crane

Polaroid

Avery Dennison

Shimano

Period of New

Technology


8


IMPROVE

•Customer CTQs derived and documented

•CTQs Measured

•Process Capability

•Process Stability

•Baseline Sigma Calculated

•Identify, Quantify and Verify Root Causes

•Benefits Estimated

•Ongoing Measurement & Monitoring Plan Implemented

•Process Standardized

•Benefits Validated

•Cost/Benefit Analysis

Process Improvement — DMAIC

Charter team, map process & specify CTQs

Measure process performance

Identify & quantify root causes

Select, design & implement solution

Institutionalize improvement, ongoing control

DEFINE MEASURE ANALYZE IMPROVE CONTROL


9








Define Phase

Define the project’s purpose and scope and get background on the process and customer

Outputs

A clear statement of the intended improvement and how it is to be measured

A high level map of the process

A list of what is important to thecustomer

Activities

Develop business case and team charter

Map the current process

Listen to the voice of the customer


10


Team Charter

A team charter is an agreement between management and the team about what is expected.

The charter:– Clarifies what is expected of

the team– Keeps the team focused– Keeps the team aligned with

organizational priorities– Transfers the project from

the champion(s) to the project team

Key elements

Problem statement

Business case (financial impact)

Measurable goals

Project scope (process boundaries)

Roles and responsibilities– Project team & sponsorship– Support required

Project description

Milestones/deliverables


11


Identify Key Stakeholders Early On

Develop communication plan based on level of commitment required

Stakeholders (Examples)

Level of Commitment

Testers Developers Requirements Leads

Enthusiastic Support O O

Help it work O

Compliant

Hesitant X

Indifferent X

Uncooperative X

Opposed

Hostile

X = Current Level of Commitment

O = Level of Commitment Necessary for Success

Tie to CMMI


12


Suppliers-Inputs-Process-Outputs-Customers (SIPOC) High level “as-is” process map

– 5 to 7 key steps of main action– Used to focus on the fundamental elements of the process

Sideways

INPUTS

INPUTS (X’s)OperatorCopy MachinePaperPowerInstructionsDocument to Copy

Set SizeRequired

Place Doc intoPosition in or

on Copier

.

Set Light/DarkSettings

.

Select PaperTray/Source

Set Number ofCopies Needed

OUTPUTS (Y’s)Copies with:

Ÿ rightnumberŸ rightcontrastŸcorrectorientationŸ right sizeŸ on rightpaper

OUTPUT

(x’s) Hinges on Lid Auto Feeder Glass Clean

(x’s) # Copies Button # Copies Required

(x’s) Size displaySize buttons

(x’s)“Darker” Button“Lighter” Button“Auto” Button

(x’s)8.5 X 11: Landscape8.5 X 11 Portrait8.5 X 14 Landscape8.5 X 14 Portrait11 X 14Tray’s with adequatesupply of paper

ŸProduct (y’s)

ŸŸDoc set incorrectly

Upside Down

ŸProduct (y’s)

ŸCorrect # of Copies

Ÿ Incorrect # of Copies

ŸProduct (y’s)

ŸRight size selected

ŸSize too Small

ŸSize too Large

ŸProduct (y’s)

ŸRight contrast

ŸToo Light

ŸToo Dark

ŸProduct (y’s)

ŸCorrect Tray Selected

Ÿ Incorrect Tray Selected

Press “Copy”Button

(x’s) Copy Button Led’s

ŸProduct (y’s)

ŸMachine producingcopies

ŸMachine not producingcopies

RetrieveCopies

(x’s)Output Tray

ŸProduct (y’s)

ŸCopies available

SUPPLIERS CUSTOMERS

Doc set correctly


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Voice of the Customer (VOC)

CT "critical to" matrix links process or CT tree (columns of the matrix) and product or CTY tree (rows)– Critical To Satisfaction (CTS) – Critical To Quality (CTQ)– Critical To Delivery (CTD) – Critical To Cost (CTC) – Critical To Process (CTP) -

Process parameters which significantly influence a CTQ, CTD, and/or CTC

5CT Tree

Def

ine

CTQ

ProcessInput

The CT Matrix Structure

...

...

CTY Tree (Product Tree)

CT

X T

ree

(Pro

cess

Tre

e)

Tie to CMMI


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Measure Phase

Focus the improvement effort by gathering information on the current situation

Outputs

Baseline data on current process performance

Data that pinpoints problem location or occurrence

A more focused problem statement

Activities

Collect baseline data on defects and possible causes

Develop a sampling strategy

Validate your measurement system

Analyze patterns in data

Determine process capability




15


Data Collection Plan Meaning of measurement in relation

to project, process, or product What is counted into or excluded Measurement validation method

– Regular validation during collection– Periodic validation of samples or

aggregates independent of collection tools and methods

Frequency of measurement collection Calculations used to derive an

indirect, aggregated, or accumulated value

How and where measurements are stored and accessed

Tools, methods, resources, and assignments required

Operational Definition and Procedures

Data Collection PlanWhat questions do you want to answer?

Data

What Measure type/ Data type

How measured

Related conditions

Sampling notes

How/where

How will you ensure consistency and stability?

What is your plan for starting data collection?

How will the data be displayed?

Measurement Consistency and Accuracy Is Vital

Tie to CMMI

Operational definitions are critical


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Failure Modes and Effects Analysis

Used to identify the way in which errors happen; an error mode, the antithesis of function

Employed as a diagnostic tool in improvement

Used as a prevention tool in design

Deals with the three dimensions of an error mode: Severity Detectability Frequency

Process or Product Name:

Prepared by: Page ____ of ____

Responsible: FMEA Date ( Orig ) ______________ (Rev) _____________

Process Step/Part Number

Potential Failure Mode

Potential Failure Effects

SEV

Potential Causes O

CC

Current ControlsDET

RPN

Actions Recommended

Resp .Actions Taken S

EV

OCC

DET

RPN

Process/Product

Failure Modes and Effects Analysis

(FMEA)

Process/ProductFailure Modes and Effects Analysis

(FMEA)

Tie to CMMI

Effective tool for focusing the data collection effort on those

input and process variables that are critical for the current

process.


17






Analyze Phase

Identify the vital few process and input variables (Xs) that affect CTQ process performance or output measures (Ys)

Outputs

A theory that has been tested and confirmed

Verified causes that form the basis for solutions in Improve

Refined estimate of benefit

Activities

Develop theories of root causes (organize potential causes)

Confirm the theories with data

Identify the root cause(s)

Use design of experiments (DOE) to optimize




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Organizing Causes

Useful tools– Brainstorming– Affinity Diagram– Tree Diagram– Cause-and-Effect Diagram– “The Five Whys”

Problem Statement

Objective

Means/Objective

Means/Objective

Means/Objective

Means/Objective

Means/Objective

Means

Means

Means

Means

Means

Means

Means

Means

Means/Objective

Tie to CMMI


19






Improve Phase

Develop, pilot, and implement solutions that address root causes

Outputs

Planned, tested actions that should eliminate or reduce the impact of the identified root cause(s)

Activities

Generate, evaluate, and select solutions to identified causes

Assess risks and pilot solutions

Develop and execute implementation plans




20


Trade Studies

Select and set up methodology• Choose trade-off methodology• Develop and quantify criteria, including weights where appropriate

Select and set up methodology• Choose trade-off methodology• Develop and quantify criteria, including weights where appropriate

Identify and select alternatives• Identify alternatives• Select viable candidates for study

Identify and select alternatives• Identify alternatives• Select viable candidates for study

Analyze results• Calculate relative value based on chosen methodology• Evaluate alternatives• Perform sensitivity analysis• Select preferred alternative• Re-evaluate results

Analyze results• Calculate relative value based on chosen methodology• Evaluate alternatives• Perform sensitivity analysis• Select preferred alternative• Re-evaluate results

Measure performance• Develop models and measurements of merit• Develop values for viable candidates

Measure performance• Develop models and measurements of merit• Develop values for viable candidates

Document process and resultsDocument process and results

Formal decision making methods to make choices among alternatives & resolve conflicts – involve entire improvement team

Tie to CMMI


21






Control Phase

Ensure the problem stays fixed and the new methods can be further improved

Outputs

Before and after analysis

Monitoring system

Completed documentation of results, learnings and recommendations

Validated benefit

Activities

Establish quality control

Standardize effective methods

Establish on-going process monitoring

Evaluate results/draft future plans

Summarize key learnings




22


Improvement Strategies

Fix an existing process

Narrow Focus

Use current process model

Low Risk

Shorter Time Span

Addressing few CTQs

Goal: Improvement

Is the gapsmall?

Customer Requirements

Process Capability

FundamentalRedesign

IterativeImprovement

YESNO

Design a new product / process

Broad approach

Blank sheet of paper approach

High Risk

Longer time span

Addressing many CTQs

Goal: Quantum Leap

DMAICDesignfor Six Sigma


23


Define – Measure – Analyze – Design – Verify (DMADV)

While DMAIC is used for incremental improvements to a process, DMADV is used for innovative improvements– Also called DFSS (Design for Six Sigma)

Uses many of the same tools and methods, although the focus is on designing a Six Sigma process from scratch

Translate VOC needs into requirements

Generate, evaluate, & select design concepts

Complete high-level and detailed designs

DEFINE MEASURE ANALYZE DESIGN VERIFY

Conduct pilots, implement solutions

Charter team & identify CTQs


24


DMADV – DefineDevelop the

Charter/Business Case

Connection to Business Strategy:

Market Impact:

Business Assumptions:

Risk:

Develop Project Plans

Identify Internal/External

Risks

Low Medium High

Yellow Light:

Proceed withcaution

Red Light:

Address beforeproceeding

Red Light:

Do not proceed

Yellow Light:

Proceed withcaution

Yellow Light:

Proceed withcaution

Red Light:

Reassess project

Green Light: Yellow Light:

Proceed withcaution

Red Light:

Address beforeproceeding

L

ow

Med

ium

H

igh

Pro

bab

ilit

y o

f O

ccu

rren

ce

Impact on Project

Proceed!

Review Tollgate Requirements

Charter

Project Plan

Organizational Change Plan

Risk Management Plan

Develop OrganizationalChange Plan

Current State

Desired State

TransitionState 1

TransitionState 2

TransitionState 3

Change Path




DEFINE

MEASURE ANALYZE DESIGN VERIFY



DEFNE


25


DMADV – Measure

Understand Voiceof the Customer

Translate VOCNeeds into

Requirements (CTQs)CTQ Measures

(Hows)

Cus

tom

er N

eeds

(Wha

ts)

House of

Quality #1

Functions(Hows)

CT

Q M

easu

res

(Wha

ts)

House of

Quality #2

High LevelDesign Element

Crit

ical

Pro

cess

Fun

ctio

ns(W

hats

)

House of

Quality #3

Detailed Design Element Process Control Variables

Hig

h Le

vel

Des

ign

Ele

men

t House of

Quality

#4

Needs

Importance of CTQ

Lunch Preparation—QFD Example

Fills Us UpIs NutritiousTastes GoodEasy to MakeEasy to Clean Up

Sticks with UsDoes Not Cost Much

Does Not Make a Mess

9 1 1 5.001 9 1 3.40

0 0 9 1 3.301 9 9 3.70

9 3 2.009 1 4.003 9 1.00

3 9 2.3087 36 35 23 33 40 39 6

CTQ Measures

Wei

gh

t o

f P

ort

ion

% N

utr

itio

nR

equ

irem

ents

Met

Blin

dfo

lded

Ju

ryT

aste

Tes

t R

atin

g

Ing

red

ien

t C

ost

Tim

e to

Pre

par

e

Nu

mb

er o

f In

gre

die

nt

Mea

sure

men

ts

Nu

mb

er o

f D

ish

es U

sed

So

lub

ility

of

Ing

red

ien

tsin

So

ap a

nd

Wat

er

Imp

ort

ance

of

Nee

ds

Quality Function

Deployment (QFD-HOC)

Prioritize CTQs

Reassess Risks

Phase 1

Phase 2

Phase 3

All End Users

Intl. Supplier

s

Domestic SuppliersDesign

Description

MarketSegment

PlatformManagement

Matrix




DEFINE




DEFNE


26


DMADV – Analyze

Checkfor

Errors

EnterOrder

ConfirmOrder

Receipt

TransmitOrder

Info

Request

TransmittedOrder

System Boundary

Identify KeyFunctions

PrioritizeFunctions

CTQ Measures(Hows)

Cus

tom

er N

eeds

(Wha

ts)

House of

Quality #1

Functions(Hows)

CT

Q M

easu

res

(Wha

ts)

House of

Quality #2

High LevelDesign Element

Crit

ical

Pro

cess

Fun

ctio

ns(W

hats

)

House of

Quality #3

Detailed Design Element Process Control Variables

Hig

h Le

vel

Des

ign

Ele

men

t House of

Quality

#4

Evaluate andSelect Concepts

Less Detail /Many Alternatives

More Detail/Few Alternatives

Most Detail/Single Alternative

CONCEPTDESIGN

HIGH LEVELDESIGN

DETAILEDDESIGN

Redesign

ConceptReview

Evaluation Criteria

Participants

Documentation

Data Collection

Data Analysis

Action Plans

Causes of Failure




DEFINE




DEFNE


27


DMADV – Design

High Level Design

High Level Design

Detailed Design

Detailed Design

Identify DesignElements

Identify DesignElements

Prioritize Design Elements


Predict Design Performance

Predict Design Performance

Design Requirements

Design Requirements

Develop HighLevel DesignDevelop HighLevel Design

High Level Design Review

High Level Design Review

Identify Detailed Design Requirements

Identify Detailed Design Requirements

Develop Detailed Design

Develop Detailed Design

Test Detailed Design

Test Detailed Design

Detailed DesignReview

Detailed DesignReview

Develop Process Management PlanDevelop Process Management Plan


Enter Order

Ord

er E

ntry

For

m

Ord

er P

lace

men

t P

roce

ss

IVR

Scr

ipts

Ord

er P

roce

ssin

g A

gent

s

Ord

er P

roce

ssin

g S

yste

m/D

atab

ase

Ord

er P

roce

ssin

g C

ente

r

Fax

& P

hone

Net

wor

k

IVR

Har

dw

are

Sup

plie

s

Order Processing

Order Confirmation/Validation

Transmit Order

9 9 9 3 9 9 9 4.2

3 9 9 1 2.5

9

9 9 9 3 9 1.6

1.6919

Impo

rtan

ce

45 89 52 49 52 10 57 52

Enter Order

Ord

er E

ntry

For

m

Ord

er P

lace

men

t P

roce

ss

IVR

Scr

ipts

Ord

er P

roce

ssin

g A

gent

s

Ord

er P

roce

ssin

g S

yste

m/D

atab

ase

Ord

er P

roce

ssin

g C

ente

r

Fax

& P

hone

Net

wor

k

IVR

Har

dw

are

Sup

plie

s

Order Processing

Order Confirmation/Validation

Transmit Order

9 9 9 3 9 9 9 4.2

3 9 9 1 2.5

9

9 9 9 3 9 1.6

1.6919

Impo

rtan

ce

45 89 52 49 52 10 57 52

Predict Design PerformanceCAPABILITY FEEDBACK

• Combine scores for all• Locate performance gaps• DPMO on scorecard

REQUIREMENTSFLOW

• Identify customerneeds

• Outline specifications• Predict performance Performance

Parts Score

SoftwareScore

ProcessScore

DFSS Product Scorecard




DEFINE




DEFNE


28


DMADV – Verify

Plan thePilot

Date:File name:

Process Descripti on: Process Customer:KQCs Out Come Indicator(s):

Process Fl ow Chart Check ing Misc.Information

Step o r Tim e

Po s i ti on Input-P roce s s-O u tcom eInd ic a to rs

Co n tro l L im i ts Ch ec k in gIte m Frequ enc y

Re s pon -s ib i l i ty

Co n ting enc yPlan Inc lude

• A bbreviations• P rocedures• Remarks, Etc.

Im plementationTimeline:Tasks #4

Process TouchPoints : TMSD,Metro/Dist ric tManagers andLocal FieldPersonnel, Thirdpart y P rov iderand Procurement

Ch arts and G raph Ty p e Sp ec s/Ta rge ts

Wha t toCh ec k

When toCh ec k

Who Ch ec ks Ac tion R eq’d fo rEx c ep tion

REV # DATE Rev ision Description By Appr

Process Managem ent Chart

Process Management Chart

Conduct andEvaluatethe Pilot

Pilot

Act Plan

Check Do

PDCA Cycle

Implement

Act Plan

Check Do

PDCA Cycle

Close Project




DEFINE




DEFNE


29


Agenda





30


Applicability to Engineering

Software and system processes are fuzzy– Software and systems engineering "parts" are produced

using processes lacking predictable mechanizations assumed for manufacturing of physical parts

– Simple variation in human cognitive processes can prevent rigorous application of the Six Sigma methodology

– Process variation can never be eliminated or may not even reduced below a moderate level

Results often cannot be measured in clear $ savings returned to organization– Value is seen in reduced risk, increased customer

satisfaction, more competitive bids, …


31


Additional Challenges

Difficulty in collecting subjective data

Reliability of subjective data

Quantifying dynamics of on-going project

Capturing process data requires existence of detailed system/software development methodology

Defined methodology must be what is executed– Difficult for human-intensive activities


32


Elements of Six Sigma throughout CMMI

Organizational Process Technology InnovationCausal Analysis and Resolution*5 Optimizing

4 Quantitatively Managed

3 Defined

2 Managed

Continuous process improvement

Quantitativemanagement

Processstandardization

Basicprojectmanagement

Organizational Process PerformanceQuantitative Project Management

Organizational Process FocusOrganizational Process DefinitionOrganizational Training Integrated Project Management*Risk ManagementDecision Analysis and ResolutionRequirements DevelopmentTechnical SolutionProduct IntegrationVerificationValidation

Requirements Management *Project Planning*Project Monitoring and Control*Supplier Agreement ManagementMeasurement and AnalysisProcess and Product Quality Assurance*Configuration Management

1 Performed

Process AreasLevel Focus

Six Sigma Define

Six Sigma Analyze

Six Sigma Improve

Six Sigma Control

Six Sigma Measure


33


Gap Between Levels 3 and 4

– Process fidelity is poor– Tailoring is too loose– Measurement culture not mature– Few measures tracked at event/task level– Missing and “dirty” data– Data inconsistent across projects– Process performance not quantified– Cause of performance differences unknown– Unfocused org analysis and support

In OutLevel3

In OutLevel4

TheGap


34


How Six Sigma Helps Process Improvement

PI efforts often generate have little direct impact on the business goals– Confuses ends with means;

results measured in activities implemented, not results

Six Sigma delivers results that matter to managers (fewer defects, higher efficiency, cost savings, …)

Six Sigma concentrates on problem solving in small groups, focused on a narrow issue– Allows for frequent successes (3-9 months)

Six Sigma focuses on the customer’s perception of quality


35


Agenda





36


Mission Systems•Process Management staff•Mission Systems Process Group

•Office of Cost Estimation•Six Sigma Training Office•Dashboards

Divisions•Division Champions•Division Process Groups•Training Offices(engineering, management)

Projects•Self-Assessment Tool•Corrective Action System

Six Sigma Projects•StartIt! Database•Best Practice Sharing

Organized Enterprise-Wide for Accomplishments

Six Sigma efforts leveraged off the successful CMMI infrastructure

•Common program office and reporting structure

•Shared staff with skills in both areas

•Information sharing from Enterprise to Division to Project

Management Commitment:“Every engineer and manager will receive 2 weeks of training and serve as a Green Belt on at least one Six Sigma project.”

Management Commitment:“Every engineer and manager will receive 2 weeks of training and serve as a Green Belt on at least one Six Sigma project.”


37


Selecting Six Sigma Projects

Select based on:– Pain being experienced within the project– Organizational issues and objectives

Level 4 Six Sigma Projects– Identify subprocesses critical to project performance– Bring subprocess into statistical control – eliminate special

causes

Level 5 Six Sigma projects– Stabilizing a subprocess typically involves causal analysis– Improve subprocess performance – eliminate common causes– May require DFSS to meet specific performance targets


38


Six Sigma Lifecycle

TRW Systems’BusinessObjectives

I nfo

rmat

ion

Ma

na

gem

en

tMetrics – Link to Strategy

Annual CAGR(> 10%)

Double-DigitEarnings & Cash Flow

Growth

ImproveReturn onInvestment

Strategy

MinimizeCosts ofBusiness

PositioningWithin ExistingMarkets

Find & Grow“Right” Markets

ImproveProductivity

Improve ResourceAllocation

Improve OperationalEfficiency

Grow ExistingMarkets

Increase ProfitMargins

DeliverFlawless

ClientSolutions

Perfect ProjectExecution

Manage ClientRelationships

Leverage Resources& Solutions

Develop ClientRelationships

Relationship:Strong –Future –Impact –

IM Metric Categories

Syste

m A

va

ila

bil

ity

& P

erf

orm

an

ce

Se

rvic

e U

sa

ge

Pro

jec

t B

ud

ge

t &

Sc

he

du

le

Asse

t U

tili

zati

on

/Re

-use

Ap

pli

ca

tio

n

Eff

ec

tive

ne

ss

Ra

tes

Se

cu

rity

Invo

icin

g/B

illi

ng

Cu

sto

me

r S

ati

sfa

cti

on

Six SigmaBusiness Goals

& Metric CategoryLinkage

Str

en

gth

of

Rel

atio

nshi

p

(1,3

,9)

Impa

ct #

Ga

p #

(1

- 5

)

Ove

rall

Impa

ct/G

ap

#S

tre

ng

th o

f R

ela

tions

hip

(1

,3,9

)

Impa

ct #

Ga

p #

(1

- 5

)

Ove

rall

Impa

ct/G

ap

#S

tre

ng

th o

f R

ela

tions

hip

(1

,3,9

)

Impa

ct #

Ga

p #

(1

- 5

)

Ove

rall

Impa

ct/G

ap

#S

tre

ng

th o

f R

ela

tions

hip

(1

,3,9

)

Impa

ct #

Ga

p #

(1

- 5

)

Ove

rall

Impa

ct/G

ap

#S

tre

ng

th o

f R

ela

tions

hip

(1

,3,9

)

Impa

ct #

Ga

p #

(1

- 5

)

Ove

rall

Impa

ct/G

ap

#S

tre

ng

th o

f R

ela

tions

hip

(1

,3,9

)

Manage Client Relationships

5 1 5 4 20 3

Deliver Flawless Client Solutions

Perfect Project Execution

4 9 36 3 108 3 12 3 36 9 36 4 144 9

Double Digit Earnings & Cash

Flow Growth

Improve Productivity

3.5 9 31.5 3 94.5 9 31.5 4 126 3

Minimize Costs of Business

Improve Resource Allocation

4 1 4 2 8 3 12 3 36 1 4 4 16 3 12 4 48 3 12 4 48

Improve Operational Efficiency

3 3 9 3 27 3 9 3 27 1 3 4 12 1

238 99 286 48 80

FutureStrong

Focus Areas

Application Effectiveness


Info

rma

tion

Ma

nage

men

t

RatesAsset Utilization/Re-Use SecuritySystem Availability &

Performance Project Budget & Schedule

7

TRW Systems’BusinessObjectives

I nfo

rmat

ion

Man

agem

e ntProjects – Link to Strategy

Annual CAGR(> 10%)

Double-DigitEarnings & Cash Flow

Growth

ImproveReturn onInvestment

Strategy

MinimizeCosts ofBusiness

PositioningWithin ExistingMarkets

Find & Grow“Right” Markets

ImproveProductivity

Improve ResourceAllocation

Improve OperationalEfficiency

Grow ExistingMarkets

Increase ProfitMargins

DeliverFlawless

ClientSolutions

Perfect ProjectExecution

Manage ClientRelationships

Leverage Resources& Solutions

Develop ClientRelationships

Current IM Six Sigma Projects

Help

Desk/

Call

Cente

r

Know

ledg

e

Mana

gem

ent

PC

Dis

po

siti

on

Em

plo

yee

Po

rta

l

Co

lla

bo

rati

on

CR

C C

ost

Op

tim

iza

tio

n

Se

cu

rity

Fir

ew

all

E

xc

ep

tio

ns

HR

/Pa

yro

ll D

ata

A

rch

ivin

g

$$ $$$ $$$ $ $$ $ $$$ $$$$

Projects in this color are in response to “I Hate Red Tape” comments received

Project Value: $ = 150K$$ = 151K – 300K$$$ = >300K

Relationship:Strong –Future –Impact –

9

Metrics – Link to CurrentIM Six Sigma Projects


Syst e

m A

vail

abilit

y

& P

erf

orm

anc

e

Pro

jec

t B

ud

ge

t &

Sc

he

du

le

Ass

et

Uti

liza

tio

n/R

e-u

se

Ap

pli

ca

tio

n

Eff

ec

tive

ne

ss

Ra

tes

Se

cu

rity

Cu

sto

me

r S

ati

sfa

cti

on

Help Desk/Call Center

K nowledge Management

PC Disposition

Employee Portal

Collaboration

Security

Firewall Exceptions

HR/Payroll Data Archiving

$$

$$

$$$

$$$

$$$

$$

$$$

$

Projects in this color are in response to “I Hate Red Tape” comments received

Project Value: $ = 150K$$ = 151K – 300K

$$$ = >300K

Relationship:Impact –

11

Str

ength

of

Rela

tionship

(1,3

,9)

Impact

#

Gap #

(1

- 5)

Overa

ll I

mpact/

Gap

# Str

ength

of

Rela

tionship

(1,3

,9)

Impact

#

Gap #

(1

- 5)

Overa

ll I

mpact/

Gap

# Str

ength

of

Rela

tionship

(1,3

,9)

Impact

#

Gap #

(1

- 5)

Overa

ll I

mpact/

Gap

# Str

ength

of

Rela

tionship

(1,3

,9)

Impact

#

Gap #

(1

- 5)

Overa

ll I

mpact/

Gap

# Str

ength

of

Rela

tionship

(1,3

,9)

Manage Client Relationships 5

Deliver Flawless Client Solutions

Perfect Project

Execution4 9 36 3 108 1 4 0 3 12 3 36 9 36 4 144

Improve Productivity 3.5 9 32 3 95 1 3.5 0 9 32 4 126

Minimize Costs of Business

Improve Resource Allocation

4 1 4 2 8 1 4 0 3 12 3 36 1 4 4 16 3

Double Digit Earnings & Cash Flow

Growth

WAN Improvements ($$$); IS SRF ($$); Perf. Testing ($$)


WAN Improvements ($$$); IS Service Delivery ($$$); IS SRF ($$); Perf. Testing ($$)

Info

rmation M

anagem

ent

Asset Utilization/Re-UseSystem Availability &

Performance Service UsageProject Budget &

Schedule Application Effectiveness

Security ($$$); Help Desk ($$); Firewall Exceptions ($)

Emloyee Portal ($$$); Collabration ($$$); KM ($$$)

Emloyee Portal ($$$); Collaboration ($$$); KM ($$$); Help Desk ($$)

WAN Improvements ($$$); IS Service Delivery ($$$); IS SRF ($$); Perf. Testing ($$); IM Dashboard ($); TEDS Enrollment ($)

WAN Improvements ($$$); Perf. Testing ($$)

Emloyee Portal ($$$); Collaboration ($$$); KM ($$$); Help Desk ($$); HR/Payroll Data Arch ($)

Emloyee Portal ($$$); Collaboration ($$$); KM ($$$); Help Desk ($$); HR/Payroll Data Arch ($)

PC Disposition ($$)


WAN Improvements ($$$); IS Service Delivery ($$$); IS SRF ($$); Perf. Testing ($$); IM Dashboard ($)

WAN Improvements ($$$); Perf. Testing ($$); IM Dashboard ($)



Emloyee Portal ($$$); Collabration ($$$); KM ($$$); HR/Payroll Data Arch ($)


VOC

High Level Priorities (Quantified Gap

Analysis)

Map Projects

Prioritize & Select Projects

Dashboard

Define

Measure

Analyze

Improve

Control


39


Project Plans

CMMI

Project Results

OrganizationalTraining & Tools

Industry/Government Standards

ISO

Customer

Specific

OrganizationalPolicies & Processes

Process Improvement

Process Improvement

Communications Sharing best-practices Measurement & dashboards

Communications Sharing best-practices Measurement & dashboards

Metrics Database

Organizational PerformanceOrganizational Performance

Project Performance

Project Performance

Project Schedules & Budgets

Institutionalizing the Improvements


40


Summary

Six Sigma can provide powerful methods and tools for process improvement– Many companies have already seen great success

Six Sigma supports meeting CMM/CMMI goals– Important to coordinate the efforts and share infrastructure

Success depends on applying fundamental concepts of business management, quality management, change management, and process management


41


References – Six Sigma Binder, Robert V., “Six Sigma: Hardware Si, Software No!”,

http://www.isixsigma.com Card, David, “Sorting Out Six Sigma and the CMM”, IEEE Software, May 2000. Harry, Mikel J., “The Vision of Six Sigma: A Roadmap for Breakthrough.” Phoenix,

Arizona: Tri Star Publishing, 1997. Harry, Mikel, J. and Schroeder, Richard, “Six Sigma, The Breakthrough

Management Strategy Revolutionizing The World's Top Corporations”, Doubleday, December 1999.

Rath & Strong, “Six Sigma Pocket Guide,” Rath & Strong Management Consultants, Lexington, MA, 2001.

Siviy, Jeannine, et al, “Software Technology Review (Six Sigma Section)“, http://www.sei.cmu.edu/str/

Smith, Larry R., “Six Sigma and the Evolution of Quality in Product Development,” Six Sigma Forum Magazine, Vol. 1, Issue 1, Nov 2001 - www.asq.org/pub/sixsigma/evolution.html#fig2back

Websites International Society of Six Sigma Professionals, http://www.issp.com iSixSigma, http://www.isixsigma.com Six Sigma Exchange, http://www.sixsigmaexchange.com


42


References - Other CMMI Product Development Team, “CMMISM for Systems Engineering/Software

Engineering, Version 1.02, Staged Representation”, CMU/SEI-2000-TR-030 (and other versions), November 2000, http://www.sei.cmu.edu/pub/documents/00.reports/pdf/00tr030.pdf

Hefner, Rick, “Using a Process Database to Facilitate Transition to Level 4”, International Conference on Applications of Software Measurement, 2002.

Kimbrought, Tom and Levine, Linda, “The IDEAL Model Transition Framework, Speeding Managed Change”, http://www.sei.cmu.edu/ideal/ideal.present/

Kotter, John P., “Leading Change: Why Transformation Efforts Fail,” HBR, Mar-Apr 1993, pp. 59-67.

Paulk, M.C., B. Curtis, M.B. Chrissis, and C.V. Weber, “Capability Maturity Model for Software, Version 1.1”, CM/SEI-93-TR-24 and CMU/SEI-93-TR-25. Pittsburgh, Pennsylvania: Software Engineering Institute, Carnegie Mellon University, 1993.

Purcell, Leitha, “Experiences Using Six Sigma in a SW-CMM® Based Process Improvement Program”, American Society for Quality Six Sigma Conference, January 2001.

Schaffar, Robert H. and Thomson, Harvey A., “Successful Change Programs Begin with Results,” HBR, Jan-Feb 1992, pp. 80-89.

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