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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

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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

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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, …

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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

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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

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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

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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 faxmichael.sturgeon@trw.com

Rick Hefner, Ph.D.Senior Manager, Process InitiativesTRWOne Space ParkR2/2012Redondo Beach, CA 90278310.812.7290; 310.812.9365 faxrick.hefner@trw.com