Best In Class In The New Millennium

“Best in Class” In The New Millennium February 2003

“Best in Class”
In The New Millennium

Marko Wolf-Pany, P.Eng.
Wolf- P.Eng.

PMI Symposium, Ottawa, June 2000

Marko Wolf-Pany, P.Eng. ISEM inc. - Integrated Software
1
February 2003 Engineering Management
“Best in Class” In The New Millennium

Abstract
In order to be “Best in Class” in the New Millennium an

Organization in Applications Development and Maintenance
must implement integrated “State of the Practice”
Management Models and Software Engineering Standards

This presentation will provide an overview of an approach

to integrate the PMI PMBoK, the SEI SW-CMM, and the
SW-
IEEE Software Engineering Standards

These Models & Standards are all in the Public Domain

– they are not Proprietary
– no royalties or fees apply

Engineering Management 2
February 2003

“Best in Class” In The New Millennium 1


Agenda

– (19 slides - 45 min)
Short Break (10 min)

ADM Standard Processes (ADM-SP)
(ADM-

SEI SW-CMM - Software Capability Maturity Model
SW-

Longer Break (15 min)

“State of the Practice” Models & Industry Standards

Total - 79 slides - 200 min - 3 hrs & 20 min


February 2003

Risk vs. Opportunity

February 2003



Marko Wolf-Pany, P.Eng.
Wolf-
– Director, Software Engineering Management - SPI Program
– Director, Systems Engineering - modernization of Intellectual
Property Offices (in Latin America)
– Technical Manager, DND Land (Army) SEC, Canada
– Systems Engineer by training - B.Eng. (Systems), Carleton
University
– Software Engineer by practice - 25+ years experience in
Information Technology, Systems and Software Engineering
– Professional Engineer (Ontario)
– Certified SEI CMM Evaluator
– SEI CMM Lead Evaluator Candidate
– Certified ISO 9000 Internal Auditor
– Working towards PMI PMP
February 2003

“Best in Class”

What Are the Major Challenges?
How should we approach the future?
Why Focus on Process?
CMM - Industry Statistics
Business Cases
Cost-Benefit Analysis
Cost-
Where do we start?
6



What Are the Major Challenges?
External management and administrative issues

– Shrinking budgets, personnel ceilings, and reorganizations
– Continuing shortages of key technical staff

An ever-rapidly changing technology and technical
ever-

infrastructure, while maintaining existing applications
– Client-server is now legacy
Client-
– Web-focused technologies are continuing to evolve
Web-
– Lack of standards and methodologies

February 2003

How should we approach the future?
We can’t be complacent


We must be proactive


We must focus on building the process capability of our

organizations

February 2003




People

Everyone realizes the importance of
having a motivated, quality work
force but. . .

Technology
Process . . . even our finest people can’t perform at
their best when the process is not
understood or operating “at its best.”

Experts estimate that 90% of product problems
can be attributed to problems in the process.

February 2003

The quality of software products and services is largely

governed by the quality of the software processes used to
develop, acquire, or maintain them

Process provides a constructive focus

– Better products & services through better processes

A focus on people results in resistance to change

– People naturally “desire to do good work”

A focus on technologies that do not fit the processes leads

to ineffective automation
– i.e. shelf-ware
shelf-
February 2003



CMM - Industry Statistics

CMM Level 3 = Top 5% of Software Companies in the
World, (i.e. ahead of 95%)

“The Rational Planning of (Software) Projects”,
Mark C. Paulk, SEI.

11

Business Case # 1

SEI SW-CMM
SW-
Level 1 (1988); Level 2 (1990)
Costs
Annual Investment: $1,000,000

Raytheon
$19.9M reduced cost-of-quality
cost-of-
Benefits 100% increase in productivity
$11.2 M/year total annual savings
ROI
7.5 times

© 1997 Carnegie Mellon University
Source: Software Engineering Institute

February 2003



Business Case # 2

SEI SW-CMM
SW-
Level 1 (1987); Level 3 (1990)

Costs Process Appraisal: $45,000
2-year improvement program: $400,000

Hughes
Benefits
$2M annual reduction in cost overruns

ROI 5 times first year vs. initial investment
4.5 times vs. total investment

Source: Software Engineering Institute © 1997 Carnegie Mellon University

February 2003

Business Case # 3

SEI SW-CMM
SW-
Level 1 (1995); Level 2 (1998)
Costs
$250,000 invested to date
Internal
Revenue Expected
Benefits
Service $3,000,000 return

ROI
TBD

Source: Software Engineering Institute

February 2003



Cost-Benefit Analysis
Cost-
Findings

Average 37% gain per year in lines of code per unit time

Average 22% annual gain in early defect removal

5:1 Return on Investment

Average 19% annual reduction in time to market

Average 39% reduction in delivered defects


February 2003

Who's using the SW-CMM?
SW-

Motorola Northrop
HP Lockheed Martin
Bellcore
Bull HN Hughes Schlumbeger
AT&T CSC
Anderson Siemens IBM
GTE Loral Citibank
OAOC
Keane SAIC
TRW OAOT
Nissan Bombardier
Raytheon IRS
Boeing DND/SECs
NASA Marconi KPMG

February 2003



Where do we start?
We must implement integrated “State of the Practice”

Management Models and Software Engineering Standards

We must then use our Professional Judgement, and tailor

these models and standards to fit our organization

February 2003

“If you don’t know where you’re going,
any road will do.”

Chinese Proverb

18



“If you don’t know where you are,
a map won’t help.”

Watts S. Humphrey
“Father” of the
Software Capability Maturity Model (SW-CMM)
(SW-
Software Engineering Institute (SEI)
Carnegie Mellon University (CMU)

19

“Best in Class”

Questions & Answers

Short Break (10 min)

20



(ADM-

Definitions
Life-Cycles - Relative Time Scales
Life-
PMI PMBoK & Other Management Disciplines
(ADM-
“State of the Practice” Models & Standards - Summary

21

Definitions

1490-1998 - IEEE Guide (©IEEE) - Adoption of PMI
1490-
Standard- A Guide to the Project Management Body of
Standard-
Knowledge(©PMI)

610.12-1990 - IEEE Standard Glossary of Software
610.12-
Engineering Terminology

22



Definitions - PMI PMBoK

Program

– A group of related projects managed in a coordinated way
– Programs usually include an element of ongoing activity

Project

– A temporary endeavor undertaken to create a unique product
or service

February 2003

Definitions - PMI PMBoK

Project Life Cycle (PLC)

– A collection of generally sequential project phases whose
name and number are determined by the control needs of the
organization or organizations involved in the project

Project Management (PM)

– The application of knowledge, skills, tools, and techniques to
project activities in order to meet or exceed stakeholder
needs and expectations from a project

February 2003



Definitions - IEEE

Software Development Cycle (SDC)


– The period of time that begins with the decision to develop a
software product and ends when the software is delivered

– This cycle typically includes a requirements phase, design
phase, implementation phase, test phase, and sometimes,
installation and checkout phase

February 2003

Definitions - IEEE

Software Life Cycle (SLC)


– The period of time that begins when a software product is
conceived and ends when the software is no longer available
for use

– The software life cycle typically includes a concept phase,
requirements phase, design phase, implementation phase,
test phase, installation and checkout phase, operation and
maintenance phase, and, sometimes, retirement phase

February 2003



Life-Cycles - Relative Time Scales
Life-

Program

Software Life-Cycle (SLC)

Project Life-Cycle (PLC)


February 2003

Applications Development and Maintenance (ADM) Life-Cycles
Program Life-Cycle (PLC)
(A Program can consist of one or more Products and one or more Projects).
Planning
Organizing
Staffing Close-Out
Directing
Controlling


Concept Installation & Operation &
Requirements Design Test Retirement
Implementation
Exploration Checkout Maintenance

(A Project can consist of one or more Software Development Cycles (SDCs)).
Initiation
Planning Close-Out
Controlling
Executing


System Software CSC System
System Preliminary Detailed Coding and CSCI
Requirements Requirements Integration Integration
Design Design Design CSU Testing Testing
Analysis Analysis and Testing and Testing

February 2003



Project Management &
Other Management Disciplines

From PMI PMBoK

February 2003

(ADM-
Project Management
“State of the Practice”
Models & Standards (PMI PMBoK, = IEEE SW Eng Std)

SLC Management
Program Management
(SEI SW-CMM & IEEE SW Eng Stds)
(IEEE & ISO 9001)
SLC
(IEEE SW Life-Cycle & Spiral Model)
Software Documentation
(IEEE SW Eng Stds)
February 2003



ADM Standard
Management Processes (ADM-SMP)
(ADM-
Project Management
(PMI PMBoK, = IEEE SW Eng Std)

Program Management
(IEEE & ISO 9001)
Models & Standards

February 2003

ADM Standard
Software Processes (ADM-SSP)
(ADM-

Models & Standards

SLC Management
(SEI SW-CMM & IEEE SW Eng Stds)
SLC
(IEEE SW Life-Cycle & Spiral Model)
(IEEE SW Eng Stds)

February 2003



Models & Standards - Summary
Program Management

– IEEE & ISO 9001
Project Management

– PMI PMBoK (= IEEE Software Engineering Standard)
Software Life-Cycle Management
Life-

– SEI SW-CMM & IEEE Software Engineering Standards
SW-
Life-

– IEEE Software Life-Cycle & Spiral Model
Life-

– IEEE Software Engineering Standards

February 2003

Summary of Industry Standards
Industry Standards
Organization SEI PMI IEEE ISO
Software Engineering
Process / Standard CMM PMBoK 9001 QA
Standards
PROGRAM MANAGEMENT CMM Level 3 KPAs (OPF, Not covered by PMI PMBok
PROCESS CATEGORY QUALITY ASSURANCE
Not covered by IEEE
(Program, Process, SDLC, (i.e. Planning, Organizing, OPD, TP, ISM, SPE, IC, PR) PROGRAM
Software Engineering
Integral) Staffing, Directing, Standards
Controlling)
CMM Level 2 KPAs (RM, PM Phases (Initiating,
PROJECT MANAGEMENT PROJECT QUALITY
(i.e.Initiating, Planning, SPP, PTO, SSM, SQA, Planning, Executing, ASSURANCE
Executing, Closing, SCM) Closing, Controlling) & PM
Controlling) Knowledge Areas
(Integration, Scope, Time,
Cost, Quality, HR, Comm.,
Risk, Procurement)
SDLC (1. Concept Not covered by PMI PMBok Not covered by ISO 9001
SDLC Independent Covered by IEEE Software
Exploration Phase; 2. Engineering Standards
Requirements Phase; 3.
Design Phase; 4.
Implementation Phase; 5.
Test Phase; 6. Installation
and Checkout Phase; 7.
Operation and Maintenance
Phase; and
8. Retirement Phase).
CMM Level 2 KPAs (RM, Not covered by PMI PMBok
INTEGRAL PROCESSES PROJECT QUALITY
(i.e. V&V, SCM, Docs., SPP, PTO, SSM, SQA, CONTROL
Training, Peer Review) SCM)

Not Available / Not
Covered Available / Covered

February 2003



Team Work

February 2003

(ADM-

Questions & Answers

36



SEI SW-CMM
SW-
Software Capability Maturity Model

Software Engineering Institute (SEI)
Carnegie Mellon University (CMU)

37

SEI SW-CMM Introduction
SW-

The Software Engineering Institute (SEI) Capability
Maturity Model (CMM) approach assumes that the
quality of a product is a direct function of the process
and technology used to develop the product and the
capability of the people assigned to do the work

38



The SEI Capability Maturity Models
Software CMM ® v1.1

CMMI-
CMMI-SE/SW V1.02 / CMMI-SE/SW/IPPD V1.02
CMMI-

Software Acquisition CMM ® (SA-CMM)®
(SA-

People CMM® (P-CMM) ® V2
(P-

Personal Software Process SM (PSP SM)

Team Software Process SM (TSPi SM)


www.sei.cmu.edu


February 2003

The CMM Operational Framework
STANDARDS
POLICIES
The “operational definitions” or
The “laws”or “regulations” that constrain the process “acceptance criteria” for final
govern or constrain operations
and interim products

PROCESSES
Describe “what happens” within the
organization to build products that
conform to the standards in
accordance with the policies of the
organization

are implemented by

PROCEDURES
Describe “how-to” or step-by-
step instructions that im plem ent
the process

TRAINING TOOLS
are supported by
Knowledge/skills required to Autom ated support needed to
use a procedure im plem ent the procedures

February 2003



SEI SW-CMM Structure
SW-

Indicate
Maturity Levels

Contain
Process
Capability Achieve
Key Process Areas

Organized By
Goals
Address
Common Features

Contain
Implementation
Describe
or
Key Practices
Institutionalization

Infrastructure or
Activities

February 2003

SW-
SW-CMM KPA Common Features

Software Configuration Management
Software Quality Assurance
5 Optimized
Software Subcontract Management
4 Managed
Software Project Tracking and Oversight
3 Defined
SW-CMM
Software Project Planning
2 Repeatable
Requirements Management
Levels

Goals
Key Process Areas

Key Practice
Commitment to Perform
Key Practice
Ability to Perform Key Practice
Key Practice
Activity Performed Sub-Practices
Sub-Practices
Measurements and Analysis Sub-Practices
Sub-Practices
Verifying Implementation Sub-Practices

February 2003



SW-
SW-CMM Level 1
Key Process Areas (KPAs)

Optimizing

Managed

Defined

Repeatable

Initial

Level 1: The software process is characterized as ad hoc, and
occasionally even chaotic.
Few processes are defined, and success depends on individual effort.

February 2003

SW-
SW-CMM Level 2

Optimizing
Software Requirements Management
Software Project Planning Managed
Software Project Tracking & Oversight
Software Subcontract Management
Defined
Software Configuration Management
Software Quality Assurance
Repeatable

Initial

Level 2: Basic project management processes are established to
track cost, schedule, and functionality.
The necessary process discipline is in place to repeat earlier
successes on projects with similar applications. © 1997 Carnegie Mellon University

February 2003



SW-
SW-CMM Level 3

Organization Process Focus
Organization Process Definition
Training Program Optimizing
Integrated Software Management
Software Product Engineering Managed
Intergroup Coordination
Peer Reviews
Defined

Repeatable

Initial

Level 3: The software process for both management and
engineering activities is documented, standardized, and
integrated into an organization-wide software process. © 1997 Carnegie Mellon University
February 2003

SW-
SW-CMM Level 4

Optimizing
Quantitative Process Management
Software Quality Management
Managed

Defined

Repeatable

Initial

Level 4: Detailed measures of the software process and product
quality are collected. Both the software process and products are
quantitatively understood and controlled using detailed
measurements. © 1997 Carnegie Mellon University

February 2003



SW-
SW-CMM Level 5

Optimizing
Defect Prevention
Technology Change Management
Managed
Process Change Management

Defined

Repeatable

Initial

Level 5: Continuous process improvement is enabled by
quantitative feedback from the process and from testing
innovative ideas and technologies.

February 2003

New Paradigms

February 2003



SEI SW-CMM
SW-
Software Capability Maturity Model

Questions & Answers

Longer Break (15 min)

49

Models & Industry Standards

Program Management Model (IEEE) - (4 slides)
ISO 9001 - Quality Systems - (2 slides)
IEEE Software Life-Cycle (SLC) - (6 slides)
Life-
PMI PMBoK - (6 slides)
IEEE Software Documentation - (9 slides)
Software Development Models - (6 slides)
50



Applications Development and Maintenance (ADM) Life-Cycles
Program Life-Cycle (PLC)
(A Program can consist of one or more Products and one or more Projects).
Planning
Organizing
Staffing Close-Out
Directing
Controlling


Concept Installation & Operation &
Requirements Design Test Retirement
Implementation
Exploration Checkout Maintenance

(A Project can consist of one or more Software Development Cycles (SDCs)).
Initiation
Planning Close-Out
Controlling
Executing


System Software CSC System
System Preliminary Detailed Coding and CSCI
Requirements Requirements Integration Integration
Design Design Design CSU Testing Testing
Analysis Analysis and Testing and Testing

February 2003

Program Management Model

The “Program Management Model” is based on the
“Classic Management Model” as described in the
“Tutorial: Software Engineering Project Management” by
Richard H. Thayer, IEEE Computer Society

52



5 Program Management Functions
Planning


– predetermining a course of action to accomplish organizational
objectives
Organizing


– arranging and relating work for the accomplishment of objectives
and granting of responsibility and authority to meet those
objectives
Staffing


– selecting and training people for positions in the organization
Directing


– creating an atmosphere that will assist and motivate people to
achieve desired end results
Controlling


– measuring and correcting performance of activities toward
objectives according to plan
February 2003

ISO 9001 - Quality Systems

Model for quality assurance in design / development,
production, installation and servicing

54



ISO 9001 Elements
1. Management Responsibility 12. Inspection & Test Status
 
2. Quality System 13. Control of Non-Conforming
Non-
 
Product
3. Contract Review

14. Corrective & Preventive
4. Design Control 

Action
5. Document & Data Control

15. Handling, Storage,

6. Purchasing

Packaging, Preservation, &
7. Control of Customer-Supplied
Customer-

Delivery
Product
16. Control of Quality Records

8. Product Identification and

17. Internal Quality Audits

Traceability
18. Training

9. Process Control

19. Servicing

10. Inspection & Testing

20. Statistical Techniques

11. Control of Inspection,

Measuring, and Test Equipment
February 2003

The IEEE SLC Process

Life-
Software Engineering Standards
Institute of Electrical and Electronic Engineers (IEEE)

56



The IEEE SLC Process consists of the following 8 phases:

– 1. Concept Exploration Phase
– 2. Requirements Phase
– 3. Design Phase
– 4. Implementation Phase
– 5. Test Phase
– 6. Installation and Checkout Phase
– 7. Operation and Maintenance Phase
– 8. Retirement Phase

February 2003

1. The Concept Exploration Phase

– is the initial phase of a software development Project, in
which the user needs are described and evaluated through
documentation (e.g., statement of needs, advance planning
report, Project initiation memo, feasibility studies, system
definition, documentation, regulations, procedures, or policies
relevant to the Project)

2. The Requirements Phase

– is the period of time in the software life cycle during which
the requirements for a software product, such as the
functional and performance capabilities, are defined and
documented
February 2003



3. The Design Phase

the designs for architecture, software components, interfaces,
and data are created, documented, and verified to satisfy
requirements

4. The Implementation Phase

– is the period of time in the software life cycle during which a
software product is created from design documentation and
debugged

February 2003

5. The Test Phase

the components of a software product are evaluated and
integrated, and the software product is evaluated to
determine whether or not requirements have been satisfied

6. The Installation and Checkout Phase

software product is integrated into its operational
environment and tested in this environment to ensure that it
performs as required

February 2003



7. The Operation and Maintenance Phase

software product is employed in its operational environment,
monitored for satisfactory performance, and modified as
necessary to correct problems or to respond to changing
requirements

8. The Retirement Phase

support for a software product is terminated

February 2003

The Project Management Body of
Knowledge (PMBOK)

The Project Management Body of Knowledge (PMBOK) is
an inclusive term that describes the sum of knowledge
within the profession of project management

The full PMBOK includes knowledge of proven,
traditional practices which are widely applied as well as
knowledge of innovative and advanced practices which
have seen more limited use
62



PMI PMBoK PM Processes
1. Initiating

2. Planning

3. Executing

4. Closing

5. Controlling


February 2003

PMI PMBoK PM Processes

From PMI PMBoK

February 2003


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