Capability Maturity Model
Integration (CMMI)
and Lean Six Sigma (LSS)
USC CS510 Lecture
Rick Hefner, Ph.D.
Rick
Northrop Grumman Corporation
Hefner, Ph.D.
Northrop Grumman Corporation
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
2
IDEAL:
An Approach to Process Improvement
www.sei.cmu.edu/ideal/
3
Capability Maturity
Models
4
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
5
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.
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
Deployment
Development
• Requirements Development
• Requirements Management
• Technical Solution
• Product Integration
• Verification
• Validation
Services
• 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
6
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
Level
Process Areas
5 Optimizing
Causal Analysis and Resolution
Organizational Innovation and Deployment
4 Quantitatively
Managed
Quantitative Project Management
Organizational Process Performance
3 Defined
Requirements Development
Technical Solution
Product Integration
Verification
Validation
Organizational Process Focus
Organizational Process Definition
Organizational Training
Risk Management
Integrated Project Management
Decision Analysis and Resolution
2 Managed
1 Performed
7
Requirements Management
Project Planning
Project Monitoring and Control
Supplier Agreement Management
Measurement and Analysis
Process and Product Quality Assurance
Configuration Management
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
8
Project Planning – Goals and Practices
Implementation
SG 1 Establish Estimates
SP 1.1 Estimate the Scope of the Project
SP 1.2 Establish Estimates of Work Product and
Task Attributes
SP 1.3 Define Project Lifecycle
SP 1.4 Determine Estimates of Effort and Cost
SG 2 Develop a Project Plan
SP 2.1 Establish the Budget and Schedule
SP 2.2 Identify Project Risks
SP 2.3 Plan for Data Management
SP 2.4 Plan for Project Resources
SP 2.5 Plan for Needed Knowledge and Skills
SP 2.6 Plan Stakeholder Involvement
SP 2.7 Establish the Project Plan
SG 3 Obtain Commitment to the Plan
SP 3.1 Review Plans that Affect the Project
SP 3.2 Reconcile Work and Resource Levels
SP 3.3 Obtain Plan Commitment
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Institutionalization (culture)
GG 2 Institutionalize as a Managed Process
GP 2.1 Establish an Organizational Policy
GP 2.2 Plan the Process
GP 2.3 Provide Resources
GP 2.4 Assign Responsibility
GP 2.5 Train People
GP 2.6 Manage Configurations
GP 2.7 Identify and Involve Relevant
Stakeholders
GP 2.8 Monitor and Control the Process
GP 2.9 Objectively Evaluate Adherence
GP 2.10 Review Status with Higher Level
Management
GG 3 Institutionalize as a Defined Process
GP 3.1 Establish a Defined Process
GP 3.2 Collect Improvement Information
Practice Ratings for the
Organization/Project
10
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
12
+
• Lean Six Sigma integrates
tools and techniques from
two proven process
improvement methods
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
13
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
Too early
Defects
Too late
Defects
Delivery Time
Spread of variation too
wide compared to
specifications
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Too early
Too late
Reduce
variation
Delivery Time
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
A General Purpose Problem-Solving
Methodology: DMAIC
Problem or goal statement (Y)
Define
Measure
• Refine problem & goal
statements.
• Define project scope &
boundaries.
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Analyze
Improve
Control
• An improvement journey to achieve goals and resolve
problems by discovering and understanding relationships
between process inputs and outputs, such as
Y = f(defect profile, yield)
= f(review rate, method, complexity……)
DMAIC Roadmap
Define
Measure
Improve
Control
Define
project
scope
Identify
needed
data
Explore
data
Identify
possible
solutions
Define
control
method
Establish
formal
project
Obtain
data set
Characterize
process &
problem
Select
solution
Implement
Evaluate
data quality
Summarize&
baseline
data
16
Analyze
Update
improvement
project scope
& scale
Implement
(pilot as
needed)
Document
Evaluate
Phase Exit Review
DMAIC Toolkit
Define
Benchmark
Contract/Charter
Kano Model
Voice of the
Customer
Voice of the
Business
Quality Function
Deployment
Measure
GQIM and
Indicator
Templates
Data Collection
Methods
Measurement
System
Evaluation
Analyze
Improve
Control
Cause & Effect
Diagrams/ Matrix
Design of
Experiments
Statistical
Controls:
Failure Modes &
Effects Analysis
Modeling
Control Charts
Statistical
Inference
ANOVA
Tolerancing
Time Series
methods
Reliability
Analysis
Root Cause
Analysis,
including 5 Whys
Hypothesis Test
Robust Design
Systems
Thinking
Decision & Risk
Analysis
Non-Statistical
Controls:
Procedural
adherence
Performance
Management
Preventive
measures
17
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
18
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
5
4
1
20
2
3
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
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
21
Northrop Grumman Approach
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
Disposition
Analysis
ISO/AS9100
Findings
CMMI Appraisal
Findings
Customer
Comments
Independent
Audits
• Process Group
• Metrics Working
Group
• Program
Management
Advisory Board
Lessons Learned &
Metrics
Tools
Internal
Best Practices
Configuration
Control Board
Policy
Procedures
Six Sigma
Projects
Training
External
Best Practices
Checklists and
Guides
Templates and
Examples
eToolkit
StartIt!
22
Industry
Standards
Information
Deployed
to
programs
eCAS
Workbench
PAL
PCDB