Strategies for Successfully Implementing CMMI and Six Sigma · Strategies for Successfully Implementing CMMI and Six Sigma Mike Sturgeon and Louise Mudd November 2002

Strategies forSuccessfullyImplementing CMMIand Six Sigma

Mike Sturgeon and Louise MuddNovember 2002

TRW Copyright © TRW Inc., 2002. TRW is the name and mark of TRW Inc. 22nd Annual NDIA/SEI CMMI Technology Conference

Topics

• Background• Six Sigma and CMMI• Process Hierarchy• Process Management Responsibilities• Summary


• A leading globalintegrator of complexsystems– Based on information

technology and systemsengineering expertise

– Integrated solutions:architecture, developmentand sustainment

• Many customers andmarkets in transformation

• Six Sigma and CMMI –cornerstones of ourtransformation

Ohio MARCS

IntercontinentalBallistic MissileProgram

Treasury CommunicationsSystem

TRW Systems


Business Drivers

• Competitive advantage through lower costs and lower risks– Ability to predictably deliver on time and within schedule– Increased customer satisfaction and associated growth

• Better business management through management by data– Quantitatively understand performance and quality drivers– More strategic and less tactical

• Enterprise approach to process improvement– Ability to capitalize on knowledge from all across the

organization– Common infrastructure for all improvement initiatives– Common policies, processes, and training


ICBM’s Form Backbone of U.S. Strategic Deterrence

Wing IMalmstrom, MT

200 MM III

Wing IMalmstrom, MT

200 MM III

Wing VFE Warren, WY

150 MM III50 PK

Wing VFE Warren, WY

150 MM III50 PK

Wing IIIMinot, ND150 MM III

Wing IIIMinot, ND150 MM III

Peacekeeper• To be

eliminatedunder START II

Minuteman• Continued

operationalneed through2020


System Engineering and Technical Assistance ICBM Prime

The ICBM Program Is a Team Effort

1950’s•Atlas 1st Launch (1957)•Thor 1st Launch (1957)•Titan 1st Launch (1959)

1950’s•Atlas 1st Launch (1957)•Thor 1st Launch (1957)•Titan 1st Launch (1959)

1960’s•MM I 1st Launch (1961)•MM II 1st Launch (1964)•MM III 1st Launch (1968)

1960’s•MM I 1st Launch (1961)•MM II 1st Launch (1964)•MM III 1st Launch (1968)

1970’s•PK Go-Ahead (1972)

1970’s•PK Go-Ahead (1972)

1980’s•PK 1st Launch (1983)

•SICBM Go-Ahead (1983)•PKRG Go-Ahead (1986)

•SICBM 1st Launch (1989)

1980’s•PK 1st Launch (1983)

•SICBM Go-Ahead (1983)•PKRG Go-Ahead (1986)

•SICBM 1st Launch (1989)

1990’s•REACT

•GRP•PRP

•ICBM Prime Award (1997)

1990’s•REACT

•GRP•PRP

•ICBM Prime Award (1997)

2000+•MMP•PSRE•ECS

•Field Upgrades

2000+•MMP•PSRE•ECS

•Field Upgrades

TRWProgram Management,Systems Engineering andIntegration

BoeingGuidance Systems,Ground Systems,Systems Support

Lockheed MartinGround Systems,RS/RV, PK IFSS

Thiokol/CSDJoint Venture Propulsion

AerojetGeneral DynamicsLogiconNorthropAllied SignalC.S. Draper LabsHoneywellLittonRaytheonARCVeridianM-L TechnologiesDav-LearSAICPrimeTech

Associate Contractors

Integration AcrossPrograms

Integration AcrossPrograms Accountability for

System PerformanceAccountability for

System Performance Efficiency ThroughConsolidation

Efficiency ThroughConsolidation


“Program” (Contract) is a Set of RelatedPrograms/Projects

SustainingEngineering -

Reactive

WeaponSystem

Assessment -Proactive Identify

Problemand OutlineMitigation

Air ForceDecision

to “fix” or“not fix”Problembecause

additionalresourcesrequired

NewProgram

Deploy “fix”

Systems Engineering Services

Product Development

Do Not “fix”

“fix”

CMMI InitiativeStandardize processes

Projects demonstrate processesProjects do not develop new processes

CMMI InitiativeStandardize processes

Projects demonstrate processesProjects do not develop new processes

TRW Copyright © TRW Inc., 2002. TRW is the name and mark of TRW Inc.

Six Sigma and CMMI


BusinessMeasures

Voice of theCustomer

ChangeManagement

Six Sigma

ISO 9001 CMMI

Methods& Tools

DMAICDFSS

ProcessManagement

TRW Systems’ Integrated Approach to Process Improvement

• ISO 9001 provides the quality management discipline for all project and functional areas• Six Sigma provides a comprehensive framework for ensuring process improvements

support corporate goals• CMMI ensures the use of industry best practices in software and systems engineering


What is Six Sigma?

A Process Improvement MethodologyLike BPR, TQM, ISO 9000, CMM, etc.

Has Three Major Elements

Decision Making withEmpirical Data1

Voice of the Customer

BusinessCases

23

CulturalCulturalTransformationTransformation

Sigma

123456

DPMO

680,000298,000

67,0006,000

4003.4

Linked toLinked toBusinessBusinessStrategyStrategy


History of Six Sigma

1950 1960 1970 1980 1990 2000

W. Edwards Demingintroduces qualitymanagement to Japanesemanufacturing

Motorola startsSix Sigma program

1983

1979

Six SigmaA best-in-class change strategy foraccelerating improvements in processes,products, and services

GEAlliedSignal

1997+Philip Crosby introducesconcept of zero defects

IBMFord adopts qualitymanagement Lockheed Martin

SonyPolaroidJP MorganJ&JRaytheonTRW

1995

Joseph JuranpublishesManagerialBreakthrough

3rd WaveEngineering/

Software

1st Wave Manufacturing

2nd WaveService/Transactional


How Six Sigma Compliments CMMI

For an individual process:– CMM/CMMI identifies what activities are expected (industry best-

practice)– Six Sigma identifies how activities might be improved (more

efficient, more effective, …)

Example – Project Planning in CMMI

SG 1 Establish EstimatesSP 1.1 Estimate the Scope of the ProjectSP 1.2 Establish Estimates of Project AttributesSP 1.3 Define Project Life CycleSP 1.4 Determine Estimates of Effort and Cost

SG 2 Develop a Project PlanSP 2.1 Establish the Budget and ScheduleSP 2.2 Identify Project RisksSP 2.3 Plan for Data ManagementSP 2.4 Plan for Project ResourcesSP 2.5 Plan for Needed Knowledge and SkillsSP 2.6 Plan Stakeholder InvolvementSP 2.7 Establish the Project Plan

SG 3 Obtain Commitment to the PlanSP 3.1 Review Subordinate PlansSP 3.2 Reconcile Work and Resource LevelsSP 3.3 Obtain Plan Commitment

Could fully meet CMMI goalsand practices, but still writepoor plans

Six Sigma can be used to makeplanning process more efficientand yield better plans


How CMMI Compliments Six Sigma

For the organizational infrastructure:– Six Sigma identifies what activities are used for improvement

(DMAIC, DFSS)– CMM/CMMI identifies how those activities might be

implemented(Process Groups, Training Offices)

Example – Organizational Process Focus in CMMI

SG 1 Determine Process Improvement OpportunitiesSP 1.1 Establish Organizational Process NeedsSP 1.2 Assess the Organization’s ProcessesSP 1.3 Identify the Organization's Process

ImprovementsSG 2 Plan and Implement Process ImprovementActivities

SP 2.1 Establish Process Action PlansSP 2.2 Implement Process Action PlansSP 2.3 Deploy Process and Related Process

AssetsSP 2.4 Incorporate Process-Related Experiences

into the Organization’s Process AssetsGG 3 Institutionalize a Defined Process

Six Sigma doesn’t assessoverall organizational capability

CMMI provides an approach tosetting up the infrastructure


Process Hierarchy


CMMI Process Area Relationships

Process ManagementOrganizational Process Focus

Organizational Process DefinitionOrganizational Training

Organizational Process PerformanceOrganizational Innovation and Deployment

Project ManagementProject Planning

Project Monitoring and ControlSupplier Agreement ManagementIntegrated Project Management

Risk ManagementQuantitative Project Management

EngineeringRequirements DevelopmentRequirements Management

Technical SolutionProduct Integration

VerificationValidation

SupportConfiguration Management

Process and Product Quality AssuranceMeasurement and Analysis

Decision Analysis and ResolutionCausal Analysis and Resolution

analyze

empower analyze

employmeasure & assist

standardize processes

Organizational responsibility

(TRW Systems and IPIC)

TRW


Process Life-Cycle

Project Plans

CMMI

Project Results

OrganizationalTraining & Tools

Industry/GovernmentStandards

ISO

Customer

Specific

OrganizationalPolicies & Processes

ProcessImprovement

Metrics Database

OrganizationalPerformance

ProjectPerformance

Project Schedules & Budgets

Contract

Our approachsupports

continual processimprovement

Our approachsupports

continual processimprovement


Highlights of Our Approach

Quantitatively Measured • Metrics Manual• Measurement repository

Enterprise-Wide Institutionalization • Policy & Requirements Manual• Standard Process Manual• Training

PRM

SPM Projects MM

Six Sigma Teams• DMAIC/DFSS• Tools & methods

CMMI Assessments• Self-Assessment Tool• Internal/external formal

assessments

CMMI/Six Sigma Synergy • Project Reviews/Summits• Integrated strategies

Six Sigma projects:• Fill CMMI gaps• Improve CMMI processes• Applies Six Sigma methods

and tools to Levels 4 and 5


IPIC Process Requirements Hierarchy

TRW Systems Policies

CMMI

ISO 2000

TRW Systems Processesand Tailoring Guidance

IPIC IMP

IPIC Contract

IPIC Process Set• Policy Compliance Report• Tailored System’s Processes• Program Management Plan• Configuration Management Plan• Assessment Plan• Others – HR, Security, F&B, Contracts, etc.

AF Manuals


Working Level Architecture

IPIC Processes

AdministerIPIC

Contract

Monitor/Report/Correct

Acquire andExecute

New Work

SystemEngineering

SustainingEngineering

TRWUnique

Make it easy for theemployees

Make it easy for theemployees


Process Management Responsibilities


Enterprise Process Management Infrastructure

• We leverage our SixSigma efforts off oursuccessful CMMIinfrastructure

– Common ProcessManagement programoffice and reportingstructure

– Shared staff with skillsin both areas

– Information sharingfrom Enterprise toDivision to Project

TRW Systems• Process Management staff• TRW 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! Data base• Best Practice Sharing


Making it Stick

Design NewProducts andProcesses thatMeet CustomerNeeds

Improve Existing Processes so that Their Outputs Meet Customer Requirements

Control and Manage Cross-Functional Processes toMeet Business Goals

D - Each Project MustHave a Business Caseand Sponsor

M - “You can’tmanage what you don’tmeasure.”

A - “Solve theproblem, not thesymptoms.”

I - Push forInnovations,Breakthrough Thinking

C - Who IsAccountable for Makingthe Fix Stick?


IPIC Process Roles and Responsibilities

Process Leader• Monitors Process Continually• Influences resources executing

the process• Trains process• Documents the process• Responsible for stakeholder

management of the process• Reports to process reviewer the

health of the process• Integrates with integrating

process leaders and functionalmanagers

• Responsible tomaintain/implement changes

Process Reviewer• Reviews status of the process as

deemed necessary with theprocess leader – generally 1 perweek to 1 per month

• Assists the process leader withstakeholder management

• Assists the process leader withendorsement of roles andresponsibilities within theprocess

• Understands interfaces betweenthis process and other processesand functions

• Maintains “vision” of the process

Highly Matrixed Organization –Typical “Process Owner” did not apply

Highly Matrixed Organization –Typical “Process Owner” did not apply


Additional Process Roles and Responsibilities

Process Implementer• Executes the process• Examples –

– PM and PMT execute theAcquisition Strategy process

– Hiring Manger executes thestaffing process

– PM/PMTs execute the design anddevelopment process

– TO team executes the TOprocess

Process Auditor• Independently assess compliance to

the process and quality of theproduct

Upper Management Reviewer• Reviews process and product metrics

of selected processes (leader, reviewerand auditor may be asked questions)

• 1x per month to 1x per quarter

Supplier• Provides data or material into process

Customer• Receives data or material from process

Stakeholders• Determined by the process leader with

the process reviewer• Includes all the above and may extend

from supplier of suppliers to customerof customer


Summary of Key Strategies

• Establish an enterprise approach– Process improvement– Process management

• Leverage initiatives to obtain goals– Six Sigma is a great set of tools to support CMMI implementation

• Don’t expect projects to be able to implement everything– Some things are better implemented at an organizational level

• Make it easy for the employees• Document process roles and responsibilities early• Process improvements are sustained by process management

– Six Sigma Control– CMMI Generic Practices

• Overall approach supports continual process improvement