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
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