The Measured Valueof CMMI

M. Lynn PennDirector Process ManagementLockheed Martin Corporation

Information Systems & Global Services

NDIA – November 2009

Challenge

To BALANCE the cost of implementing process requirements with benefits to the business and customer

Traditional Advertised Benefits

Productivity Increase Quality Improvement

Defect detection

Replanning – decrease ROI – average – 4:1

SI - OwegoD

efec

ts p

er K

SLO

C

2000 2002 2004 20072001 2003 2005 20061999

Def

ects

per

KS

LOC

2000 2002 2004 20072001 2003 2005 20061999

1999 2000 2001 2002 2003 2004 2005 2006

Year

SLO

C/L

M

20071999 2000 2001 2002 2003 2004 2005 2006

Year

SLO

C/L

M

2007

Delivered (K)Lates% On-Time

22.6201

99.11%

20.6176

99.14%

19.079

99.59%

% O

n-T

ime

17.9127

99.29%

2004 2005 2006 200799.0

99.1

99.2

99.3

99.4

99.5

99.6

99.7

99.8

99.9

100.0

Delivered (K)Lates% On-Time

22.6201

99.11%

20.6176

99.14%

19.079

99.59%

% O

n-T

ime

17.9127

99.29%

2004 2005 2006 200799.0

99.1

99.2

99.3

99.4

99.5

99.6

99.7

99.8

99.9

100.0

Delivered (K)Defects% Error Free

22.60

100%

20.62

99.99 %

19.00

100%

% D

efec

t Fre

e

17.90

100%

99.0

99.1

99.2

99.3

99.4

99.5

99.6

99.7

99.8

99.9

100.0

2004 2005 2006 2007

Delivered (K)Defects% Error Free

22.60

100%

20.62

99.99 %

19.00

100%

% D

efec

t Fre

e

17.90

100%

99.0

99.1

99.2

99.3

99.4

99.5

99.6

99.7

99.8

99.9

100.0

2004 2005 2006 2007

Software Defect Density Software Productivity

On-Time Delivery (All Products) Performance at Delivery (All Products)

Quality and Productivity

IS&GS

0Historical CMMI L5

LOC

/ H

our

S/W productivity increased 52% over baseline average capability

Historical CMMI L5

$ /

LOC

S/W cost decreased 23% in Constant 2004 dollars

0.0Historical CMMI L5

Rel

ativ

e $

/ D

efec

t

Defect Find / Fix cost down by 21%

Tren

ds

Process Maturity

SW ProductivitySW Productivity Up 52%

Average Award Fee Average Award Fee Up 4.2Points

SW Development CostSW Development Cost Down 23%

Wrap RateWrap Rate

Defect Find / Fix CostDefect Find / Fix Cost Down 21 %

Down 5.5%

Last updated: 2006 with 2005 Data

Award Fee vs CMM Level

89.0%

90.0%

91.0%

92.0%

93.0%

94.0%

95.0%

96.0%

97.0%

SW CMM L2 SW CMM L3 SW CMM L4 SW CMM L5 CMMI L5

CMM Level

Aw

ard

Fee

%

Award Fee %

History of CMMI-driven Process ImprovementsSW CMM L2: 1993-1995SW CMM L3: 1996-1997SW CMM L4: 1998-1999SW CMM L5: 2000-2001CMMI L5: 2002-2004

Wrap Rate

91.0%

92.0%

93.0%

94.0%

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

SW CMM L3 SW CMM L4 SW CMM L5 CMMI L5

CMM Levels

Wra

p R

ate

as a

% o

f SW

CM

M L

3

Wrap Rate as a % of SW CMM L3

Note: Near the end of the SW CMM L2 period, the overhead pools were changed. Therefore, a SW CMM L2 Overhead is not included.

Customer Satisfaction

Overhead Costs

Agenda

Realizing CMMI BenefitsEnablersInhibitors

Enablers Process Improvement

Operated and managed as a program

Process Architecture Implementation of the Business Strategies Integrated into the Business Rhythm

CMMI – SVC Process as a service/ EPG a service organization

High Maturity Benefits increase exponentially with the HM Tools

Enablers

People

Process Technology

LMCO Strategic PlanBusiness Unit Strategic Plan

Technology PlanLearning Development PlanProcess Improvement Plan

Inhibitors

MYTHS, MISCONCEPTIONS, IGNORANCE External Internal

External Inhibitors Negotiation Challenges

Bid on accurate performance baselines/ historical data Let’s try it for this amount (out of the blue)Try it and MISS

Problems arise – defects are found Maturity Level 5 and have Defects ????? Process not a panacea

External Inhibitors (cont)

Required operation at Maturity Level 3 just take out that “other stuff”

Teams composed with multiple level companies – forced to use highest level of processes

Internal Inhibitors

Benefits take too long to be realized Backing stops short Reasons

Large Programs Many Programs Extended Life Cycles

“Price to Win” mentality Bid this to win – regardless of performance

data

How to Survive

Education External

Set and understand expectation

Internal Executive knowledge and buy in

Understand performance today predicts tomorrow

Consistency Institutionalization with tailoring

PERSEVERENCE