Improving Process
& Maximizing Benefits
Mr. Mrutyunjay D Burli (Jay)– QAI Asia
Integrated Way
The Current Trend
April 19, 2023 Slide: 2
Presenter
• Mr. Mrutyunjay D Burli (Jay)– QAI Process Consultant– Contact:
• Mr. Mrutyunjay (Jay)
• QAI China (Based in Shenzhen, China)
Model Based Process Improvement
April 19, 2023 Slide: 4
Quality Leverage Points
Major determinants of product cost, schedule, and quality
PEOPLE
PROCESS TECHNOLOGY
April 19, 2023 Slide: 5
Which Model to Select
• ISO, • CMM/CMMI, • Six Sigma, • PCMM• TQM• Lean • …
To be able decide which route / direction to take…Should know the destination…else any road is ok..
(Chinese Proverb)
April 19, 2023 Slide: 6
Why Model Based PI Failed in Some Orgs
After spending many years of
effort
April 19, 2023 Slide: 7
What We Have Learned from the Failures• It’s not just model issue …
• It’s our misunderstanding on the models
• It’s also our wrong judgment in selecting suitable model / method
• It’s also our incompetence to operate process improvement to enable business improvement
To be successful in achieving the set objectives
It is like,
Choosing the right “HORSE” and right “JOCKEY”
April 19, 2023 Slide: 8
The Key is the “People”
“It is not the model that’s as important as your ability to take a model and create value for your organization.”
- Nabil AbdelMalek, Quality VP,
J.P. Morgan and Co.
April 19, 2023 Slide: 9
The Key is the “People”…
“I have been enthusiastic about the CMM all along, but it fails when it’s imposed from the top without low-level support.”
-Edward Yourdon
“As other sources of competitive success have become less important, what remains as a
crucial differentiating factor is the organization, its employees, and how it works.”
-Jeffrey Pfeiffer
Business Driven Process
Improvement in an Integrated
Approach
April 19, 2023 Slide: 11
The Triad
April 19, 2023 Slide: 12
PCMM
CMM/CMMI
Others
Six Sigma
ISO
Disparate improvement efforts
PCMM
CM/CMMI
Other
s Six S
igm
a
Process
Management
ISO
Integrated improvement efforts
Integrate Our Process Improvement Efforts
April 19, 2023 Slide: 13
Shift from Model Compliance to Business Driven
OLD: External compliance frameworks & standards
drove the development of stove-piped documentation
infrastructures; as a result, internal business needs &
req’ts have been adversely impacted.
Process XYZ
Performance 7 Business model based
NEW: Internal & external business needs drive
development of a set of enterprise processes; in
turn, through design, the enterprise processes will
meet all external frameworks & standards.
Document-based
April 19, 2023 Slide: 14
Business Goal Driven PI
April 19, 2023 Slide: 15
CustomerCustomer
LearningLearningAnd And
GrowthGrowth
FinancialFinancial
Changing
OperatingSupporting
Optimizing
Set Business Goal by Referring to the Balanced Scorecard
Internal Internal Business Business ProcessesProcesses
April 19, 2023 Slide: 16
Redesign the Existing Process Based on CMMi and Business
Existingprocess
Gap Analysis
1
2
3
4
5
CMMi
PAT
EPG
Business-basedimprovement opportunities
New Process Design
April 19, 2023 Slide: 17
CoreProcess
Systems Integration
Job Aids
Tooling
InstallationSupport
Policies
Training
Processguide
Changerequestsystem
Whole productsolution
Develop Whole Product Solution
PAT
EPG
ExistingprocessNew Process Design
SOFTWARE PROJECT PLANNING,TRACKING AND OVERSIGHT
A S o f t w a r e P r o j e c t L i f e C y c l e P e r s p e c t i v e
Orgname Systems Development Center
Version 1.0October 1997
Guidebookfor users of the process
To develop whole product solution, we need to know ‘how’.Six Sigma can answer ‘how’.
April 19, 2023 Slide: 18
What is Six Sigma?Six Sigma: A best-in-class change strategy for accelerating improvements in processes, products, and services
What Six Sigma is:
Method/tools
Mindset/way of thinking
A way of doing business
April 19, 2023 Slide: 19
6 DMAIC ProcessDevelop Charter and
Business Case
Map Existing Process
Collect Voice of the Customer
Specify CTQs / Requirements
Measure CTQs / Requirements
Determine Process Stability
Determine Process Capability
Calculate Baseline Sigma
Refine Problem Statement
Identify Root Causes
Quantify Root Causes
Verify Root Causes
Institutionalize Improvement
Control Deployment
Quantify Financial Results
Present Final Project Results and Lessons Learned
Close Project
Select Solution (Including Trade Studies, Cost/Benefit Analysis)
Design Solution
Pilot Solution
Implement Solution
Define
Measure
Analyze
Improve
Control
DMAIC = Define, Measure, Analyze, Improve and Control
April 19, 2023 Slide: 20
Aligning the 6 DMAIC Process with the CMMI
Define
Measure
Analyze
Improve
ControlLevel 4
Establishing Capability
Objectives
Data
Baselines
Models
Level 5 Improving Capability
Problems
Root Causes
Improved Processes
Improved Capability
April 19, 2023 Slide: 21
CMM(I) and PCMM
CMMI PCMMLevel of Maturity Project Oriented - Business Focus Organizational Oriented - Internal Focus
Level 2 Project Management Discipline People Management DisciplineLevel 3 Organizational Common Process Focus Competency Focus
Level 4 Quantitative Management of ProcessesCompetency Integrations / linkage between the Process - People
Level 5Continual Improvement on the Process and Technology
Continual Improvement on Workforce Practices
Benefits Observed
April 19, 2023 Slide: 23
Process Improvement Benefits
CMMI
The Practical Implications of Process Improvement Program
Dollars in….
April 19, 2023 Slide: 24
Process Improvement Benefits
The purpose of investing in process improvement is,
To earn returns!
Returns??We all know….
ROI = Net Income / Total Investment
April 19, 2023 Slide: 25
HOW???
Process Improvement Benefits
One of the approaches is..
Processing CostsRe-work CostsCost of Errors
Raw Material CostsSupport Costs
TARGET 1
TARGET 2 Increased Sales
TARGET 3 Faster Cycle Time
TARGET 4 Improved Quality
TARGET 5 Increased Productivity
Reduction of Costs
April 19, 2023 Slide: 26
How to evaluate the Benefits – BenchmarkingMeasure different
parameters
Productivity
Defect Density
Cost
Schedule
Effort
Set the internal improvement
action plan and improve the
processes
Analyze the current and best practices and performance
Compare current
practices and performance
within the industry
Analyze the improvement
needed if any and set action plan for
improvement
Collect and Analyze (OCB)
Internal Performance
April 19, 2023 Slide: 27
CMMI® Benefits - QAI’s Client-A
COMPANY-A 98-99 99-00 00-01Staff Strength 120 150 180Maturity Level 3 4 (not assessed) 5
Development Projects% deliveries on/ before time 85% 85% 96%Bugs / Feature (Field Testing) 0.06 0.03 < 0.01Average Cost Overrun 38% 3% -5%
Maintenance ProjectsAverage Cycle Time to Fix (Days) 32 13 10% Bad Fixes/ Regressions 12% 4% <1%Manpower Load Imbalance (more than 10% overtime or idle time)44% 33% 21%Backlog Bugs Average Days 23 20 16Effort to Fix/ Complexity Index 4.2 3.1 3
Migration ProjectsEffort/ Module 1.8 0.65Delivery Before Time 65% 96%Defects Delivered/ 100 Modules 3 < 1
April 19, 2023 Slide: 28
CMM® Benefits - QAI’s Client – B
COMPANY-B 97-98 98-00 00-01Staff Strength 250 520 820Maturity Level 2 3 5
Development Projects% delayed deliveries 55% 30% 6%Delivered Defect Density Index (defects/ 100 FP) 12 8.2 1.6Productivity FPC/ MM 20 30.6 28.1
Maintenance Projects% Bad Bug Fixes 3.40% 1.30% 0.10%Effort / Weighted Bug 16 Hours 10 Hours 6 HoursAverage Days to Solve [Severity 1] < 1 < 1 < 1Average Days to Solve [Severity 2] 16 14 8Average Days to Solve [Severity 3] 65 45 12
April 19, 2023 Slide: 29
CMM® Benefits – Defect Detection Improvement
Source: CMI/SEI-96-HB-002
Req’ts. Design Code FunctionalTest
SystemTest
FieldUse
Where Defectsare Introduced
10% 40% 50%
Relative Costto Fix
$1 $1 $1 $6 $12 $100
RelativeCostfor100
Fixes
Level1
0% 0% 2% 15% 50% 33% $4,000
WhereDefects
Level2
0% 0% 3% 30% 50% 17% $2,500
AreDetected
Level3
0% 2% 20% 38% 32% 8% $1,400
Level4
3% 12% 30% 30% 20% 5% $1,000
Level5
5% 20% 40% 20% 10% <5% $800
Source: CMI/SEI-96-HB-002Source: CMI/SEI-96-HB-002
Req’ts. Design Code FunctionalTest
SystemTest
FieldUse
Where Defectsare Introduced
10% 40% 50%
Relative Costto Fix
$1 $1 $1 $6 $12 $100
RelativeCostfor100
Fixes
Level1
0% 0% 2% 15% 50% 33% $4,000
WhereDefects
Level2
0% 0% 3% 30% 50% 17% $2,500
AreDetected
Level3
0% 2% 20% 38% 32% 8% $1,400
Level4
3% 12% 30% 30% 20% 5% $1,000
Level5
5% 20% 40% 20% 10% <5% $800
April 19, 2023 Slide: 30
[Herbsleb 94]
Other Observed Benefits of Process Improvement
• Cited by Hughes, Tinker AFB, Schlumberger, Raytheon– improved working conditions
– improved employee morale
– less turnover
– fewer overtime hours
– better and increased communication
– decreased risk
– increased customer satisfaction
Summary
April 19, 2023 Slide: 32
The Bottom Line 1
“Process improvement should be done to help the business —not for its own sake”.
“In God we trust, all others bring data.” - W. Edwards Deming
April 19, 2023 Slide: 33
The Bottom Line 2
• Improvement means different things to different organizations:– What are your business goals?
– How do you measure progress?
• Improvement is a long-term, strategic effort:– What is the expected impact on
the bottom line?
– How will impact be measured?
April 19, 2023 Slide: 34
PCMM
CMM/CMMI
Others
Six Sigma
ISO
Disparate improvement efforts
PCMM
CM/CMMI
Other
s Six S
igm
a
Process
Management
ISO
Integrated improvement efforts
Integrate Our Process Improvement Efforts
April 19, 2023 Slide: 35
BSC & CMM(I) & Six Sigma & PCMM
• The balanced scorecard can help organizations to systematically set enterprise business goals
• CMMI focuses on "what" process infrastructure is needed for the organization;
• Six Sigma narrows in on "how" totactically solve particular problems (or design new products) – For some organizations, Six Sigma is an enabler of CMMI and for others, it is
a toolkit within CMMI.
• PCMM help organizations in attracting, motivating, and retaining talented technical / non technical staff
April 19, 2023 Slide: 36
The Problem of PI without Integration
* Problem solving is like digging for treasure in a field
* If a hole already exists, our inclination is to dig it deeper
* The deeper the hole, the more difficult it is to see what’s happening in other parts of the field
* If someone else comes along, we encourage them to jump in the hole with us
* The overall effect is called PSYCHOLOGICAL INERTIA
April 19, 2023 Slide: 37
Any Questions?
April 19, 2023 Slide: 38
I thank all present here for
your valuable time
QAI China
RM. 1211, No.498 Guoshoujing Rd, Shanghai Zhangjiang Hi-Tech Park, Pudong New Area. Shanghai, ChinaZip: 201203Tel : +86-21-38954510-5186TeleFax : +86-21-51314155Email : [email protected] [email protected]