Capability Maturity Model Integration

(CMMI) and Lean Six Sigma

(LSS)USC CS510 Lecture

Rick Hefner, Ph.D.Northrop Grumman Corporation

Rick Hefner, Ph.D.Northrop Grumman Corporation

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Background

• All companies try to maintain their competitive advantage– Hire and retain the best people– Technology investments, research & development – Process improvement

• Process improvement typically use two different approaches– Emulating best practices used by industry leaders– Studying the performance of your current processes

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IDEAL: An Approach to Process Improvement

www.sei.cmu.edu/ideal/

Capability Maturity Models

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Capability Maturity Models

• A capability maturity model is a set of widely accepted best-practices used by an industry– Structured so it can be

easily understood, adopted

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Capability Maturity Model Integrated (CMMI) is a set of best-practice models• Development projects (software, hardware, systems engineering)• Service projects (Information Technology, professional services)• Acquisition projects (buyers of products and services)

Project Management• Project Planning• Project Monitoring and

Control• Supplier Agreement Mgmt.• Integrated Project Mgmt.• Risk Management• Quantitative Project Mgmt.

Development• 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

Process Management• Organizational Process

Focus• Organizational Process

Definition• Organizational Training• Organizational Process

Performance• Organizational Innovation

and DeploymentServices• Service Delivery• Capacity & Availability

Management• Incident Resolution &

Prevention• Service System Transition• Service Continuity• Service System

Development• Strategic Service

Management

Acquisition• Solicitation and Supplier

Agreement Development• Agreement Management• Acquisition Technical

Management• Acquisition Verification• Acquisition Validation

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Organizational Maturity is Ranked on a 1-5 Scale

• Higher maturity implies the capability to reliably deliver more programmatically challenging systems

• Appraisers evaluate the organizational infrastructure and projects against all practices and process areas in the CMMI

Causal Analysis and ResolutionOrganizational Innovation and Deployment5 Optimizing

4 Quantitatively Managed

3 Defined

2 Managed

Quantitative Project ManagementOrganizational Process Performance

Requirements DevelopmentTechnical SolutionProduct IntegrationVerificationValidation Organizational Process FocusOrganizational Process DefinitionOrganizational Training Risk ManagementIntegrated Project ManagementDecision Analysis and Resolution

Requirements Management Project PlanningProject Monitoring and ControlSupplier Agreement Management Measurement and AnalysisProcess and Product Quality AssuranceConfiguration Management

1 Performed

Process AreasLevel

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How Does Industry Use the CMMI?

Companies use the model to identify process improvements– The model identifies

practices mature organizations should use

– Companies use the model to set organizational improvement goals (“Achieve CMMI Level 3 in 2005”)

Customers use the model to assess contractor capability– May ask an organization

about it’s rating– May conduct their own

appraisal

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Project Planning – Goals and Practices

SG 1 Establish EstimatesSP 1.1 Estimate the Scope of the ProjectSP 1.2 Establish Estimates of Work Product

and Task AttributesSP 1.3 Define Project LifecycleSP 1.4 Determine Estimates of Effort and

CostSG 2 Develop a Project Plan

SP 2.1 Establish the Budget and Schedule

SP 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 Plans that Affect the

ProjectSP 3.2 Reconcile Work and Resource

LevelsSP 3.3 Obtain Plan Commitment

GG 2 Institutionalize as a Managed Process

GP 2.1 Establish an Organizational PolicyGP 2.2 Plan the ProcessGP 2.3 Provide ResourcesGP 2.4 Assign ResponsibilityGP 2.5 Train PeopleGP 2.6 Manage ConfigurationsGP 2.7 Identify and Involve Relevant

StakeholdersGP 2.8 Monitor and Control the ProcessGP 2.9 Objectively Evaluate AdherenceGP 2.10 Review Status with Higher Level

ManagementGG 3 Institutionalize as a Defined

ProcessGP 3.1 Establish a Defined ProcessGP 3.2 Collect Improvement Information

Implementation Institutionalization (culture)

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Practice Ratings for the Organization/Project

Lean Six Sigma

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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

+

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A Typical Six Sigma Project in Engineering

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

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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 TimeReduce

variationDelivery 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

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A General Purpose Problem-Solving Methodology: DMAIC

Define

Problem or goal statement (Y)

ControlAnalyze ImproveMeasure

• An improvement journey to achieve goals and resolve problems by discovering and understanding relationships between process inputs and outputs, such asY = f(defect profile, yield)

= f(review rate, method, complexity……)

• Refine problem & goal statements.

• Define project scope & boundaries.

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DMAIC Roadmap

Define ControlAnalyze ImproveMeasure

Define project scope

Establish formal project

Identify needed data

Obtain data set

Evaluate data qualitySummarize& baseline data

Explore data

Characterize process & problem

Identify possible solutions

Implement (pilot as needed)

Define control method

Implement

Update improvement project scope & scale

Document

Select solution

EvaluatePhase Exit Review

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Benchmark Contract/Charter

Kano ModelVoice of the Customer

Voice of the BusinessQuality

Function Deployment

GQIM and Indicator

TemplatesData Collection

MethodsMeasurement

System Evaluation

Statistical Controls:

Control ChartsTime Series

methods

Non-Statistical Controls:

Procedural adherence

Performance Management Preventive measures

DMAIC Toolkit

ControlImproveMeasureDefine AnalyzeDesign of

Experiments ModelingANOVA

TolerancingRobust Design

Systems Thinking

Decision & Risk Analysis

Cause & Effect Diagrams/

MatrixFailure Modes

& Effects Analysis

Statistical InferenceReliability Analysis

Root Cause Analysis,

including 5 Whys

Hypothesis Test

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The Voices of Six Sigma

• Six Sigma includes powerful techniques for understanding the problem you are trying to solve– Voice of Customer– Voice of Process– Voice of Business

• These techniques are useful in non-Six Sigma settings for understanding:– Customer requirements and needs– Process performance and capability– Business priorities and trends

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What is 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

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5 Principles of Lean Process

1. Define VALUE as seen by your customer

2. Identify the VALUE STREAM for each product

3. Make value FLOW without interruptions

4. Allow customer to PULL value from the producer

5. Continuous pursuit of PERFECTION

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SEI’s Strategic Classification Taxonomy

Summary of the SEI approach of harmonizing multiple models, by Jeannine Siviy and Pat Kirwan, 2008 PrIME Workshop, http://www.sei.cmu.edu/prime/hardquestionsoutput.html

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Northrop Grumman Approach

InternalBest Practices

ISO/AS9100 Findings

CMMI Appraisal Findings

Policy

Training

Procedures

eToolkit PAL

WorkbenchStartIt!

Tools

Information

Checklists and Guides

Templates and Examples

Disposition

Independent Audits

• Process Group• Metrics

Working Group• Program

Management Advisory Board

Lessons Learned & Metrics

Analysis

Customer Comments

Configuration Control Board

ExternalBest Practices

Industry Standards

Six Sigma Projects

We systematically analyze all 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

eCAS

PCDB