Characteristics of high maturity organisations - how CMMI & LSS integration can improve product quality, processes, bottom line and customer satisfaction

1. CMMI & Six Sigma Integration Characteristics of high maturity organisations - how CMMI & LSS integration can improve product quality, processes, bottom line and customer satisfaction Anand Subramaniam

2. 2 “Wisdom doesn't automatically come with old age. Nothing does - except wrinkles. It's true, some wines improve with age. But only if the grapes were good in the first place.” - Abigail Van Buren

3. CMMI / LSS - Overview

4. Project - Waste & Application to IT 4 Overproduction Extra features or features that no one uses Transportation Building the wrong thing, waiting for copy Motion Task Switching, walking, searching for info, manually done when it can be automated Inventory Partially done work, not released for further activity, Waiting Equipment/resource not working, Waiting for info../ work completion Over-processing Documentation/unused artifacts, code that not part of final product, Unnecessary meetings Defects Defects, Rework Unused employee creativity Patterns and solutions identified not implemented

5. Competitive Advantage 5 CMMI To measure, monitor & manage processes s Six Sigma To deliver value & develop a sustainable competitive advantage Knowledge Management To utilise data, transform it into knowledge to enable informed decision making

6. Six Sigma Methodology DFSS (Design For Six Sigma) Methodology for the design of new products or services, with a six sigma capability and performance DMAIC (Define, Measure, Analyse, Improve & Control) Improvement methodology for existing processes & performance

8. Decompose processes into sub-processes

9. Specifying customer satisfaction goals / sub-goals

10. Identify relevant metrics

11. Performance measurement - throughput, quality

12. Cost , resource

13. Response times, cycle times, transaction rates, frequencies

14. Evaluate data / information - trends, patterns, causal factors, root cause

15. Determine candidates for improvements

16. Prototype initial improvement

17. Measure & compare results with simulation results

18. Iterations taken between DMA steps to achieve the target level of performance

19. Ensure measure-ments are put into place to maintain improvements

20. Benchmarking

21. Baseline

22. Voice of Customer / Business

23. Quality Function Deployment

24. Flow chart, Check Sheets, Pareto diagrams, Cause/Effect diagrams, Histograms, SPC

25. Defect Metrics

26. Data Collection Forms, Plan, Logistics

27. Cause / Effect diagram

28. Failure Modes & Effects Analysis

29. Decision & Risk Analysis

30. Statistical Inference

31. Control Charts

32. Capability Analysis etc

33. Design of Experiments

34. Modeling

35. Tolerance

36. Robust Design

37. Statistical Control - Control Charts, Time Series methods

39. CMMI Levels – Risk / Quality 9 Lvl 5 - Optimised Low High Continuously Improve Process Lvl 4 – Quantitatively Managed Measured Predictable Process Lvl 3 - Defined Standard Productivity / Quality Risk Std Consistent Process Lvl 2 - Managed Planned & Tracked Maturity levels should not be skipped Disciplined Process Lvl 1 - Initial Performed Lvl 0 - Not performed High Low

41. Gauge of maturity

42. Organisation in Level 4 / 5

43. Lack standard metrics

44. Defines the requirements of measurement & SPC

45. Best practices for systems & software engineering, acquisition and integrated product & process development

46. Optimise the process

48. Data driven / improvement method

49. Customer centric - VOC / VOB

50. VOP – SPC

51. Prioritised improvement opportunities – casual data analysis

52. Set of tools applicable to performing each process improvement activity

53. Business orientation to process improvement

55. Lvl 4 & 5 – Organisation Pre-requisites Follow defined project processes, specify how & when the data collected will be used, in managing the projects Gather &use meaningful data at all levels from individual, projects to the organisation itself Collect data at project level and elevate that data to the Organisational Measurement Repository for use by other projects / lessons learned Understand the types of variation that are present in all processes Pre-requisites Understand what constitutes meaningful & measurement data Consistently tailor project processes with the organisation’s std processes 12

56. Integration – CMMI & Six Sigma Level 1 & 2: Impossible to achieve “defect free” at these levels Level 3: Possible to start applying Six Sigma Organisational Process Definition, Organisational Process Focus, Requirements Development, Risk Management, Validation, Verification Level 4 & 5: Leverage established measurement practices, further improve capabilities and process integrating both Organisational Process Performance Organisational Innovation and Deployment 13

65. Level 4 - Drivers Project Performance stable processes & clean data Organisational Standard Process detailed SOP & which can be tailored Measurement Repository comparable projects, enough measures to stratify / analyse the data Drivers Project’s Defined Process project follow its process Customer & Project Objectives organisation’s process fit the project & customer objectives Organisational Performance Data & Models enough data points, useful baseline models 17

67. Pilots improvements

69. Takes actions to prevent them from occurring in the futurePreventing defects and innovation (addressing common causes of variation)

70. Lvl 5 - Drivers Innovative improvements - cause a major shift in process capability Potential improvements are analysed to estimate costs and benefits Incremental improvements – eliminate special causes of variation Drivers Improvements are piloted to ensure success Improvements are measured in terms of variation and mean Goals are quantitative (reduce variation by X%, reduce mean by Y%) 19

71. CMMI & LSS – Process Roadmap Identify & Prioritise Opportunities Project Definition Document & Measure Current Reality Analyse Waste & Variation Improve & Innovate Implement & Validate Measure & Sustain Communicate & Acknowledge Success

72. Lvl 4 & 5 - Customer Benefit 21 Causal analysis Project fixes the source of defects to prevent future defects Organisational process performance More accurate estimates Organisational innovation and deployment Project benefits from improvements found and proven on other projects Quantitative project management Problem behaviors are recognised faster, enabling quicker resolution

73. 22 “This became a credo of mine...attempt the impossible in order to improve your work.” - Bette Davis

74. Example – Project Evaluation 23

75. Example - Process Evaluation Checklist 24

76. 25 “If you have great talents, industry will improve them; if you have but moderate abilities, industry will supply their deficiency.” - Sir Joshua Reynolds

77. 26 Good Luck http://www.linkedin.com/in/anandsubramaniam