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Optimize Your Solution: Integrating Six Sigma and
CMM/CMMI-Based Process Improvement
Rick Hefner, TRWMichael Sturgeon, TRW
Software Technology Conference29 April – 2 May 2002
4/30/02 Slide 2
Objectives
• Six Sigma Background• Comparing Six Sigma & CMM/CMMI• TRW’s Strategy
Six Sigma Background
4/30/02 Slide 4
What is Sigma?
• Sigma ( )))) is the Greek symbol used to represent standard deviation, a measure of the variation from the mean in a normal distribution– Six Sigma implies a process where any value
outside the spec is a extremely rare occurrence
Target upperspec
lowerspec
0.001 parts per million (ppm)
0.001 ppm
± 6 sigmas( 99.9999998% “good”)
σσσσ
4/30/02 Slide 5
What is Six Sigma?
• Six Sigma is a management philosophy based on meeting business objectives by striving for perfection– A disciplined, data-driven methodology for
decision making and process improvement• Six Sigma consists of several integrated methods:
– Process Management– Voice of the Customer– Change Management– Tools for Measuring Variation and Change– Business Metrics
• Leading-edge companies are applying Six Sigma to engineering work
4/30/02 Slide 6
Importance of Reducing Variation
• Less variation means– Greater predictability in the process– Less waste and rework, which lowers costs– Products and services that perform better and last longer– Happier customers
Defects Defects
Too early Too late
Delivery Time
Reduce variation
Delivery Time
Too early Too late
Spread of variation too wide compared to
specifications
Spread of variation narrow compared to
specifications
To increase process performance, you have to decrease variation
4/30/02 Slide 7
DMAIC Process StepsDEFINESet project goals and objectives
MEASURENarrow range of potential causes and establish baseline capability level
ANALYZEEvaluate data/information for trends, patterns, causal relationships and “root causes”
IMPROVEDevelop, implement and evaluate solutions targeted at identified root causes
CONTROLMake sure problem stays fixed and new methods can be further improved over time
Define
Measure
Analyze
Improve
Control
Incremental improvements
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DMADV Process Steps (Design for Six Sigma)DEFINESet project goals and objectives
MEASUREIdentify key design requirements and the factors influencing them
ANALYZEGenerate design alternatives, and select top-level design that best meets the requirements
DESIGNGenerate detailed design; identify potential failure modes
VERIFYPilot chosen design; verify performance
Define
Measure
Analyze
Improve
Control Define
Measure
Analyze
Design
Verify
Innovative improvements
4/30/02 Slide 9
Who is Using Six Sigma Now?
Allied SignalFord
Honeywell
1st Wave Manufacturing
1970’sGeneral Electric
Johnson Controls
2nd Wave Service/Transactional
3rd Wave Engineering/Software
2000
BellCisco Systems
Citicorp
DuPontEli Lilly
Hewlett Packard
J. P. MorganKodak
Monsanto
Boeing Litton
Lockheed Martin
Northrop GrummanRaytheon
TRW
LearMotorola
Comparing Six Sigma & CMM/CMMI
4/30/02 Slide 11
Applying Six Sigma to Systems/Software
• Software and system processes are fuzzy– Software or systems engineering "parts" are
produced using processes lacking predictable mechanizations assumed for manufacturing of physical parts
– Simple variation in human cognitive processes can prevent rigorous application of the Six Sigma methodology
– Process variation can never be eliminated or may not even reduced below a moderate level
• Results often cannot be measured in clear $ savings returned to organization– Reduced risk, increased customer satisfaction,
more competitive bids, …
4/30/02 Slide 12
Comparison of CMM/CMMI to Six Sigma - 1
• For an individual process:– CMM/CMMI identifies what activities are expected
in the process– Six Sigma identifies how the activities might be
improved (more efficient, more effective, …)Example – Project Planning in the CMMI
SG 1 Establish EstimatesSP 1.1 Estimate the Scope of the ProjectSP 1.2 Establish Estimates of Project AttributesSP 1.3 Define Project Life CycleSP 1.4 Determine Estimates of Effort and Cost
SG 2 Develop a Project PlanSP 2.1 Establish the Budget and ScheduleSP 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 Subordinate PlansSP 3.2 Reconcile Work and Resource LevelsSP 3.3 Obtain Plan Commitment
Could fully meet the CMMI goals and practices, but still write poor plans
Six Sigma can be used to improve the planning process and write better plans
4/30/02 Slide 13
Comparison of CMM/CMMI to Six Sigma - 2
• For the organizational infrastructure:– Six Sigma identifies what activities are used for
improvement (DMAIC, DMADV)– CMM/CMMI identifies how those activities might be
implementedExample – Organizational Process Focus in the CMMI
SG 1 Determine Process Improvement OpportunitiesSP 1.1 Establish Organizational Process Needs SP 1.2 Assess the Organization’s Processes SP 1.3 Identify the Organization's Process
ImprovementsSG 2 Plan and Implement Process Improvement Activities
SP 2.1 Establish Process Action PlansSP 2.2 Implement Process Action Plans SP 2.3 Deploy Process and Related Process Assets SP 2.4 Incorporate Process-Related Experiences into
the Organization’s Process AssetsGG 3 Institutionalize a Defined Process
Six Sigma doesn’t address:• Assessing overall capability• Selecting specific projects• Institutionalizing the
improvements
CMMI provides an approach to setting up the infrastructure
4/30/02 Slide 14
Elements of Six Sigma throughout CMMI
Organizational Process Technology InnovationCausal Analysis and Resolution*5 Optimizing
4 Quantitatively Managed
3 Defined
2 Managed
Continuous process improvement
Quantitativemanagement
Processstandardization
Basicprojectmanagement
Organizational Process PerformanceQuantitative Project Management
Organizational Process FocusOrganizational Process DefinitionOrganizational Training Integrated Project Management*Risk ManagementDecision Analysis and ResolutionRequirements DevelopmentTechnical SolutionProduct IntegrationVerificationValidation
Requirements Management *Project Planning*Project Monitoring and Control*Supplier Agreement ManagementMeasurement and AnalysisProcess and Product Quality Assurance*Configuration Management
1 Performed
Process AreasLevel Focus
Six Sigma Define
Six Sigma Analyze
Six Sigma Improve
Six Sigma Control
Six Sigma Measure
4/30/02 Slide 15
How Six Sigma Helps Process Improvement
• PI efforts often generate have little direct impact on the business goals– Confuses ends with means;
results measured in activities implemented, not results
• Six Sigma delivers results that matter to managers (fewer defects, higher efficiency, cost savings, …)
• Six Sigma concentrates on problem solving in small groups, focused on a narrow issue– Allows for frequent successes (3-9 months)
• Six Sigma focuses on the customer’s perception of quality
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How Six Sigma Helps Level 1-3 Organizations
• Six Sigma focuses on:– Setting up the management
oversight and mentoring infrastructure (management councils, training for Black/Green Belts, …)
– Establishing an ROI/business case for the improvements
• Six Sigma projects provide a mechanism (similar to Process Action Teams) for:– Making specific improvements– Getting business benefit out of an improved process
4/30/02 Slide 17
How Six Sigma Helps Level 4-5 Organizations
• Six Sigma provides specific methods and tools for:– Quantitative process management of Level 4 – Causal Analysis and Resolution of Level 5
• Six Sigma projects provide a mechanism for selecting andimplementing improvements– Addresses Organizational
Innovation and Deployment– Can extend beyond Level 5
4/30/02 Slide 18
How CMM/CMMI Helps Six Sigma Efforts
• CMM/CMMI focuses on organizational change– Provides guidance on many dimensions of the
infrastructureGeneric Practices (all process areas)GP 2.1 Establish an Organizational PolicyGP 2.2 Plan the ProcessGP 2.3 Provide ResourcesGP 2.4 Assign ResponsibilityGP 2.5 Train PeopleGP 3.1 Establish a Defined ProcessGP 2.6 Manage ConfigurationsGP 2.7 Identify and Involve Relevant
StakeholdersGP 2.8 Monitor and Control the ProcessGP 3.2 Collect Improvement InformationGP 2.9 Objectively Evaluate Adherence GP 2.10 Review Status with Higher-Level
Management
Process Areas• Organizational Process Focus• Organizational Process Definition• Organizational Training• Organizational Process Performance• Organizational Innovation and
Deployment
TRW’s Strategy
4/30/02 Slide 20
Another Approach for Process Improvement
• ISO 9000/9001 establishes a fundamental quality management framework
• CMM/CMMI implements processes which reflect industry best practices
• Six Sigma focuses on improvements and measures which lower the cost of doing business
Best-Practice Models
Software CMMBusiness Measures
Voice of the Customer
Change Management
Process Management
DMAICDFSSMethods & Tools
Six Sigma
ISO 9000
ISO 9001 CMMI
Quality Management
4/30/02 Slide 21
Division Dashboards
Project Start Up
TRW Systems Dashboard
• Used to Manage the Core Business Processes
• Defined by Business Executives
• Owned by Business Executives
Tying Six Sigma to TRW’s Business Needs
Enabling Processes
Financial Management
Information Management
Operations Infrastructure
GovernanceCompliance
Client Management
Technology/Product Development
Employee Management
Portfolio Management (Strategic Positioning)
Business Development
Program Execution
Core Processes
Results of Six Sigma Projects are seen in improved business performance
Key Business Questions
Sub Processes
Gaps&
Goals
ROI Gate
Systems Eng Development Project Wrap up
Project Close out
Core Processes Drive the Key Business Measurement Criteria
….
• Productivity• Profitable Growth
Six Sigma/CMMI Projects
Subcontract Management
TR
W S
yst
em
s B
usi
ness
Ob
ject
ives
• Customer Satisfaction• Operational Effectiveness
4/30/02 Slide 22
A Typical Six Sigma Project in Engineering
• Customers express concern that software defects are causing frequent failures in the field
• A Six Sigma team is formed to scope the problem, collect data, and determine the root cause
• The team’s analysis of the data determines that poorly understood interface requirements account for 90% of the problems in the field
• The interface problems are corrected• The organization’s requirements solicitation process
is modified to ensure future projects do not encounter similar problems
4/30/02 Slide 23
Summary
• Six Sigma can provide powerful methods and tools for process improvement– Many companies have already seen great success
• Six Sigma supports meeting CMM/CMMI goals– Important to coordinate the efforts and share
infrastructure• Success depends on applying fundamental concepts
of business management, quality management, change management, and process management
4/30/02 Slide 24
References – Six Sigma• Card, David, “Sorting Out Six Sigma and the CMM”, IEEE Software, May 2000.• Rath & Strong, “Six Sigma Pocket Guide,” Rath & Strong Management Consultants,
Lexington, MA, 2001.• Siviy, Jeannine, et al, “Software Technology Review (Six Sigma Section)“,
http://www.sei.cmu.edu/str/• Smith, Larry R., “Six Sigma and the Evolution of Quality in Product Development,” Six Sigma
Forum Magazine, Vol. 1, Issue 1, Nov 2001http://www.asq.org/pub/sixsigma/evolution.html#fig2back
• Purcell, Leitha, “Experiences Using Six Sigma in a SW-CMM® Based Process Improvement Program”, American Society for Quality Six Sigma Conference, January 2001.
• Hefner, Rick and Purcell, Leitha, “Merging Six Sigma with CMM/CMMI“ (tutorial), Software Engineering Process Group Conference, Phoenix, AZ, 18-21 February 2002.
Websites• International Society of Six Sigma Professionals, http://www.isssp.com• iSixSigma, http://www.isigsima.com• Six Sigma Exchange, http://www.sixsigmaexchange.com
4/30/02 Slide 25
Contact InformationMichael Sturgeon
Master Black BeltTRW2561 E. 2050 N.Layton, UT 84040801.444.2609; 801.444.2611 [email protected]
Rick Hefner, Ph.D.Senior Manager, Process InitiativesTRWOne Space ParkR2/2012Redondo Beach, CA 90278310.812.7290; 310.812.9365 [email protected]