leveraging cmm and six sigma francesca pratt march 11, 2003 payment solutions sepg
TRANSCRIPT
Leveraging CMM and Six Sigma
Francesca Pratt
March 11, 2003
Payment
Solu
tions
SEPG
March 11, 2003 2
Payment
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tions
SEPG
Objectives
Describe the importance for aligning the CMM and Six Sigma for First Data
Provide a basic understanding of how the CMM and Six Sigma support each other
Provide examples of how a First Data’s IT organization is integrating the initiatives
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Payment
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SEPG
Background
Payment Solutions (IT) introduced its CMM Initiative in 1999
– Focus was to merge the multiple cultures and processes from several IT organizations that were acquired into one organization
– To be able to determine capability of the organization to meet the business needs
– Achieved Level 2 in October 2001– Next formal assessment scheduled for September 2003 for
Level 3
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Background
First Data introduced the Six Sigma Initiative in 2000 to build a premiere organization – Measurement is its foundation that determines the
success and focus for the organization– Focus on Customer Values (Voice of the Customer) and
how to deliver – Work to ensure value is delivered when needed and
continuously improve our ability to do so
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Background
To be successful with the CMM Initiative the following needed to be addressed: – Need to market the CMM at the corporate level to
address the perception of conflicting initiatives– Need for strong Senior Management to fight off and
maintain the CMM Initiative
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CMM vs. Six Sigma
CMM is: – A common-sense application of process management
and quality improvement concepts to software development and maintenance
– A community-developed guide– A model for organizational improvement– The underlying structure for reliable and consistent
CMM-based appraisal methods
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CMM vs. Six Sigma
CMM has evolutionary paths that increases an organization’s software process maturity in stages– These stages are ordered so that improvement at each
stage provide a foundation on which to build improvements undertaken at the next stage
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CMM Capability Levels
Defined (3)
Optimizing (5)
Rpeatable (2)
Initial (1)
Managed (4)
Performed
Measured
Standard
Planned and TrackedDisciplinedProcess
StandardConsistentProcess
PredictableProcess
ContinuouslyImprovingProcess
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CMM vs. Six Sigma
Six Sigma is:– A business process that allows companies to drastically
improve their bottom line by designing and monitoring everyday business activities in ways that minimize waste and resources while increasing customer satisfaction
– It provides specific methods to re-create the process so that defects and errors never arise in the first place
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CMM vs. Six Sigma
Six Sigma is:– Is a disciplined process of applying business problem solving tools– The acronym DMAIC provides the sequence which is the heart of
the Six Sigma Method
Define - the business opportunity Measure - the process current state Analyze - determine root cause Improve - eliminate waste and variation Control - evidence of sustained results
Collect baseline data on defects and
possible causal factors
Plot defect data overtime and analyze for
special causes
Describe currentprocess
Do Pareto analysis(if appropriate)
Create & stratifyfrequency plots
Validate the Measurement System
efineefine
0
1000
-1000
10 20 30
UCL
X
LCL
1. Determine number of defect opportunities O = per unit
2. Determine number of units processed N =
3. Determine total number of defects D = made (include defects made and later fixed)
4. Calculate Defects Per Opportunity DPO= =
5. Calculate Yield Yield = (1-DPO) x 100 =
6. Look up Sigma in the Process Sigma Table Process Sigma =
D
N x O
1
5000
250
.05
95%
3.2
Measure the Current SituationMeasure the Current Situation
Data Collection Plan Project ________________________What questions do you want to answer?
Data Operational Definition and ProceduresWhat Measure type/
Data typeHow
measured 1
Related conditionsto record 2
Samplingnotes
How/where recorded(attach form)
Notes1) Be sure to test and monitor any measurementprocedures/instruments.2) “Related factors” are stratification factors or potentialcauses you want to monitor as you collect data
How will you insure consistency and stability? What is your plan for starting data collection?(attach details if necessary)
How ill the data be displayed? (Sketch below)
A C DB
©2000 Oriel Incorporated. All Rights Reserved.
DMAICRoad MapDMAICRoad Map
easureeasure
Develop charter
Understand the Voiceof the Customer
Purpose Importance Scope
S U P P L I ER S
C U S T O M E R S
OutputsInputs Process
Define the ProjectDefine the Project
Map the process
Analyze
Improve
Control Define
MeasureManufacturing
Service
Government
Hypothesis Testing
Draft charter
Discuss/revise charter
Sponsor Team Leader Team Members
Review & approve charter
Select project
Coach
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nalyzenalyze mprovemprovemprovemprove
Collect new data on indicator measured in
Step 2 (Current Sit.)
Redraw relevant Before and After plots
Quantify the benefits of the improvement
Evaluate methodsand results; determine
appropriate actions
Before After
Step 4 changes implemented
} Improvement
Target} Remaining Gap
Good
Time
$$
Improve: Evaluate ResultsImprove: Evaluate Results
TrainingCurriculum
TrainingManual
Control: Standardize Effective MethodsControl: Standardize Effective Methods
Train
Develop anddocument standard
practices
Ongoing monitoring
Build process for updating procedures
Communicate toothers in theorganization
Summarize learnings
Makerecommendations
for future plans
Learnings
Recommendations
Results
•
•
•
next
Plan
DoCheck
Act
Control: Communicate Results& Future PlansControl: Communicate Results& Future Plans
Develop a focused problem statement
Brainstormpotential causes
Statistical methodsto quantify cause-
effectrelationships
Collect data to verify selected causes
Organize potentialcauses
Analyze CausesAnalyze Causes
Effect
Cause
Cause
Female
60
B
Gender
Script
AgeMale
A
20
Made the Sale
Did Not Make the Sale
Time With Customer
(in minutes)
5 10 15 20 25 30 3 5 40 45 50 55 60 >60
5 10 15 20 25 30 3 5 40 45 50 55 60 >60
Hypothesis TestingY
X
Scatter Plots and Regression Analysis
ontrolontrol
Brainstorm many possible solutions toidentified root causes
Identify & weightcriteria
Evaluate (rank)solution alternatives
Select one ormore alternatives
Develop plans
Pilot thenimplement plans
ProblemRoot
CauseCounter- measure
Reduce Call Transfers
Update extension lists
ID
1
2
3
4
5
6
7
8
9
Dept supv. update job responsibility lists
Mark responsibilities on phone ext. list
Update names and extension numbers
Revise auto-attendant
Assemble team
Examine data
Decide what options should be given
Pilot and test new language
Task Name 5/31 6/7 6/14 6/21
MAY JUNE
6/28
Calvin, Max, Sheryl
Maria
Maria
Calvin
Team, TBD
Team, TBD
FMEA AnalysisProject: _____________________ Team: _____________________
Date ___________ (original) ___________ (revised)
Item or Process
Step
Potential Failure Mode
Potential Effect (s) of Failure
Potential Cause(s)
Current Controls R
PN
Recommended Action
Responsibility and
Target Date Action Taken
Sev
erity
Occ
urre
nce
Det
ectio
n
RP
N
“After”
Sev
erity
Occ
urre
nce
Det
ectio
n
Total Risk Priority Number = “After” Risk Priority Number =
Plan
DoCheck
Act
Improve: Implement SolutionsImprove: Implement Solutions
©2000 Oriel Incorporated. All Rights Reserved.
Verify Root Causes
Experiment
Trial implement
Collect additional data
Value-Added Cost-Added Only
0
1000
-1000
10 20 30
UCL
X
LCL
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CMM vs. Six Sigma
CMM
Identifies process improvement opportunities for a specific organization
Senior Manager is the sponsor SEPG Manager is the project manager
for all process improvements Focus on analyzing, mapping,
improving, and measuring in the organization as a whole
Timeframe is 2-3 years for each level rating
Primary goal is continuous process improvement with results contributing to reduction in cycle time and reduction in defects
Six Sigma
Identifies a specific opportunity for improvement
Champion is the business owner and sponsor
Blackbelt is the project manager of a specific improvement project
Greenbelt is a subject matter expert Focus on analyzing, mapping,
improving, and measuring the one specified process
Timeframe is 4-6 months for a project Primary goal is $$$ saving
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CMM vs. Six Sigma
Leveraging Opportunities– Level 3 organizations establish process standards that
are the foundations to begin to measure process effectiveness and can use the Six Sigma measurement tools to collect and analyze the data
– Process mapping are tools used in both – Six Sigma methodology can be used to achieve CMM
Level 4 goals and activities
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Applying Six Sigma
Process Management– Analyze data to determine
process improvement opportunities
– Apply the DMAIC lifecycle to determine root cause and solution
– SEPG required skill is Six Sigma methodology which is achieved via Green Belt certification
SEPGDocumented Processes
Metrics & Measures
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InputsDetail
Process Steps
Outputs
Six Sigma – SIPOC standard
Documented Processes
Process Mapping– Adopt the SIPOC standard for mapping the
organizations standard processes – Establishes the foundation for the DMAIC
lifecycle and supports common terminology between the CMM and Six Sigma Initiatives
Applying Six Sigma
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Applying Six Sigma
Leverage Six Sigma Methodology to align to the corporate initiative and achieve Level 4 (without even trying)– At Level 3, measurements have been
defined and collected systematically– At Level 4, decisions are made based on data collected
Common measurement Data analysis
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Applying Six Sigma
Six Sigma Methodology addresses the Key Process Areas for Level 4– Software Quality Management– Quantitative Process Management
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Applying Six Sigma
Quantitative Process Management KPA– Purpose is to control the process performance of the
software project quantitatively– Involves:
establishing goals for process performance measuring the performance of the project analyzing these measurements making adjustments to maintain process performance within
acceptable limits
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An important concern is identifying variations in performance that are not within the normal range of process performance
– “extraordinary” events outsidethe bounds of process capability
Applying Six Sigma
Control Chart With Special Causes
Identifythe problemin the process
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Applying Six Sigma
Taking Corrective Action at Level 4– Quantitative Process Management focuses on the process– Process capability is quantitatively known– When performance falls outside the limits
identify the reason take corrective action when appropriate
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Applying Six Sigma
The Meaning of Quantitative Control – Quantitative Control in the CMM implies any
quantitative or statistically based technique– The words “statistical” and “quantitative” imply data– Data reflect facts– Fact-based management results in objective decisions
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Applying Six Sigma
Basic Statistics– Quantitative, or statistical, techniques
need not be sophisticated to be useful– Pareto analysis, for example, is fairly simple– Quantitative techniques do require
measurable data consistent data collection defined, comparable measurements
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Applying Six Sigma
Software Quality Management KPA– Purpose is to develop a quantitative understanding of the
quality of the project’s software products and achieve specific quality goals
– Involves defining quality goals for the software products establishing plans to achieve these goals monitoring and adjusting software plans, software
work products, activities, and quality goals to satisfythe needs and desires of customer and end-user
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Applying Six Sigma
Building High-Quality Products– Software Quality Management focuses on the product– Measurable quality goals for the product are defined– The product is “ready” when the goals are achieved
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Applying Six Sigma
Quality Evolves– At Level 2, the focus of quality is “conformance to
requirements”– By Level 4, there is an emphasis on understanding the
needs of the– customer– end users– organization (supplier)
– Ultimately, the customer determines what quality is or is not
– Total Quality Management revolves around customer satisfaction
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Applying Six Sigma
Other areas that are being addressed: – Developed a standard SDLC to support the Six Sigma
Methodology when the solution involves technology– Leveraging the “Voice of the Customer” methods to
improve the current requirements process
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Summary
CMM and Six Sigma are not conflicting methodologies
CMM Level 3 provides the foundation for integrating Six Sigma in an efficient manner
Using the Six Sigma methodology supports CMM Level 4
