To improve or not to improve

Tor StålhaneIDI / NTNU

The ESPINODE European survey

Data was collected through an e-mail questionnaire.

Country Do SPI Don’t do SPI

Iceland 15 5

Greece 15 10

Italy 9 14

Ireland 14 1

Scandinavia 13 1

Sum 66 31

Those who do SPI• What are the most important contributions of SPI? A total

of 74% of the answers fall into one of the three categories.– Better process – 30%– Improved quality – 25%– Obtain business benefits – 19%

• Most important challenges for the future. A total of 83% of the answers fall into one of the three categories.– Improve development efficiency - 36%– Increase customer satisfaction – 24%– Promote company growth – 23%

• Help needed. A total of 84% of the answers fall into one of the three categories.– Seminars, networking and related events – 37%– Consultancy – 27%– Better tools and methods – 20%

Those who don’t do SPI• What are the most important reasons for not doing SPI? A

total of 70% of the answers fall into one of the two categories.– Do not have resources available – 40%– Cost too much – 30%

• Most important challenges for the future. A total of 74% of the answers fall into one of the three categories.– Increase customer satisfaction – 29%– Be more innovative – 26%– Promote company growth – 19%

• Help needed. A total of 80% of the answers fall into one of the four categories.– Consultancy – 24%– Networking – 24%– Formative help – 18%– Financial help – 14%

How are these companies equal?

Both groups (47% and 48%) prioritized:– Increase customer satisfaction – Promote company growth

•Both groups (64% and 48%) needed – Seminars, networking and related events – Consultancy

Summary Small companies Large companies

Do SPI

Balance time and cost Quality of products Increase number of products Decrease costs Internet applications Introduce new systems Project augmentations

Process management Quantitative management Competence development Competition New environments

Do not do SPI

Internet Software for home appliances (long) distance working Lower costs Better quality Increase number of customers Improve know-how Keep up with economic

changes Competition

Fast implementation of new products

Low maintenance costs Information intensive

applications New development methods and

new standards Electronic commerce Successful project management

Four improvement goals • Cost reduction – constant output, reduced

input. => SPI through “Mean and lean”. • Controlled growth – large increase in output,

smaller increase in input. => SPI through investment, e.g. buy a new tool.

• Work smarter – increased output, constant input. => SPI through better ways to do things.

• Work more efficient – increase output, decrease input. => SPI by e.g., reducing rework

Evolution vs. revolution Evolution Revolution

Quality view Problem to solve - a necessity Ideal function to be achieved – an opportunity

Motive Eliminate complaints Elicit compliments

Step Inspect SPC QA Strategic quality management

Focus Discover Control Avoid mistakes

Listen to the voice of the customers

Method Measure Statistical technique

Programs and systems

QFD System approach

Robust design

Responsible Inspector Production Production, development

Everyone

Result Earn right to sellKeep market shares

Command higher priceGain market share

Time frame and stability Environmentstability

Company time frame

Risk management

Mean and lean

Measurementbased SPI

Short Medium Long

High

Medium

Low

CMM

We are moving this way

Owner goals Management goals

Select improvementapproach

Select improvementgoals

Customers

Risk profile

Environm

ent

Company beliefs• market changes• customer image• Company plans

Setting goals

What shall we improve

How shall we improve

PDCA

We have seen the PDCA wheel earlier. We have added an extra wheel that may be needed before and during the planning session

Plan

Do Check

Act

Understand

Analyze

Select

Plan

Do Check

Act Plan

Do Check

Act

Understand

Analyze

Select

Understand

Analyze

Select

The Quality Improvement Paradigm – 1

The PDCA is quite general. We can get more insight by using the Quality Improvement Paradigm – QIP – as shown on the next slide.

• QIP separates – Project learning – what the project staff learns during

the project– Organization learning – what the organization as a

whole is able to learn from the project. • QIP has more detailes – e.g. “Plan” =>

– Characterize– Set goals

The Quality Improvement Paradigm – 2

Corporate Learning

Characterizeand understand

Set goals

Choose processes, methods, tools, and techniques

Analyze results

Package and store experience

ProjectLearning

Analyze results

Provide process with feedback

Execute

The Quality Improvement Paradigm – 3

Individual Collective

Tacit Personal experience

Common sense

Explicit Proprietary Open to everybody

In the project Transferred

The complete SPI process – 1

There are two ways to look at the SPI process:•An extended and detailed version of the PDCA wheel•The 4V model

We will give a short walkthrough of both.

Detailed PDCA – 1

Identify opportunities

Analyse current process

Form team and scope

proejct

Define desired outcom of improved process

Identify root causes and proposed solutions

Prioritize, plan and test

proposed solutions

Refine and implement solutions

Measure progress and

hold gains

Aknowledge team and

communicate results

Identify opportunities

Identify opportunities

Analyse current process

Analyse current process

Form team and scope

proejct

Define desired outcom of improved process

Define desired outcom of improved process

Identify root causes and proposed solutions

Prioritize, plan and test

proposed solutions

Prioritize, plan and test

proposed solutions

Refine and implement solutions

Refine and implement solutions

Measure progress and

hold gains

Measure progress and

hold gains

Aknowledge team and

communicate results

Aknowledge team and

communicate results

Plan

Do

Check

Act

Detailed PDCA model – 2 • Analyse current process – flow charts, brain

storming and cause and effect diagrams.• Define desired outcome of improved process –

brainstorming in addition to such techniques as Pareto analysis.

• Identify causes and proposed solutions – brainstorming, Pareto analysis and root cause analysis.

• Priorities, plan and test proposed solutions – plotting techniques such as histograms and scatter plots, Pareto analysis and brainstorming.

The 4V model – 1

Creative and analytical work

Data collection

Assess futureproblems and opportunities

Collectinformation

Registerproblems

Collectinformation

Define problems

Identifycauses

Analyze data

Collect data

Find a solution

Registerresults

Implementsolution

Assesssolution

Standardizeand control

Study and compare

Process controlReactive improvement Proactive

improvement

Creative and analytical work

Data collection

Assess futureproblems and opportunities

Collectinformation

Registerproblems

Collectinformation

Define problems

Identifycauses

Analyze data

Collect data

Find a solution

Registerresults

Implementsolution

Assesssolution

Standardizeand control

Study and compare

Process controlReactive improvement Proactive

improvement

The 4V model – 2 The diagram contains three SPI approaches: •process control •reactive improvement•proactive improvement.

SPI activities moves between two levels:•being creative / analytical•collecting data.

On the top of the diagram we have the two SPI phases •Freeze – standardize / control•Unfreeze – study / compare

An alternative to the PDCA – 1

Another version of the OODA loop

An alternative to the PDCA – 2 Explicit and implicit states of OODA:• The OODA Loop is often seen as a simple one-dimensional

cycle, where one – observes what is going on– becomes oriented to the current action– makes a decision– takes an action.

• This is "dumbing down“ – only the explicit part of the loop is understood.– Speed is crucial, but not the speed of simply cycling through the loop.– We need to take into account the single most important part of the

cycle the implicit part of the orientation phase.‑

Observe The types of info:•Implicit – already known •Outside – can be collected•Unfolding – not static. Continuous changes to

– Environment– Circumstances

Orient

Some things are constant.•Cultural traditions•Genetic inheritanceSome things grow or change•New info•Previous experience

Implicit guidance and control – 1 The “Implicit Guidance & Control” connects Orientation with

both Observations and Action. When one has developed the proper Fingerspitzengefuhl for a changing situation

• the tempo picks up• one is able to bypass the explicit Orientation and Decision

part of the loop, to Observe and Act almost simultaneously.

Implicit guidance and control – 2 The speed comes from a deep intuitive understanding of the

rapidly changing environment. This is what enables bypassing parts of the loop. It is this adaptability that gives the OODA loop its power.

The OODA Loop, at one level, might be interpreted as an iterative explicit loop.

It is also a model of our implicit non-linear reaction to circumstances once the reaction has been learnt.

The OODA Loop is both • a model of the context of discovery

• the context of justification.

Discussion

About half of the companies in a survey stated that customer satisfaction and company growth are important. It seems that many developers are more concerned about making smart pieces of code than making their customers happy or making their company grow. Why?