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CMMI & Six Sigma Integration

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CMMI & Six Sigma Integration

  1. 1. CMMI & Six Sigma Integration <br />Characteristics of high maturity organisations - how CMMI & LSS integration can improve product quality, processes, bottom line and customer satisfaction<br />Anand Subramaniam<br />
  2. 2. 2<br />“Wisdom doesn't automatically come with old age. Nothing does - except wrinkles. It's true, some wines improve with age. But only if the grapes were good in the first place.” <br />- Abigail Van Buren<br />
  3. 3. CMMI / LSS - Overview<br />
  4. 4. Project - Waste & Application to IT<br />4<br />Overproduction<br />Extra features or features that no one uses<br />Transportation<br />Building the wrong thing, waiting for copy<br />Motion<br />Task Switching, walking, searching for info, manually done when it can be automated<br />Inventory<br />Partially done work, not released for further activity,<br />Waiting<br />Equipment/resource not working, Waiting for info../ work completion<br />Over-processing<br />Documentation/unused artifacts, code that not part of final product, Unnecessary meetings<br />Defects<br />Defects, Rework<br />Unused employee creativity<br />Patterns and solutions identified not implemented<br />
  5. 5. Competitive Advantage<br />5<br />CMMI<br />To measure, monitor & manage processes<br />s<br />Six Sigma<br />To deliver value & develop a sustainable<br />competitive advantage<br />Knowledge Management<br />To utilise data, transform it into knowledge to enable informed decision making<br />
  6. 6. Six Sigma Methodology<br />DFSS <br />(Design For Six Sigma)<br />Methodology for the design of new products or services, with a six sigma capability and performance<br />DMAIC <br />(Define, Measure, Analyse, Improve & Control)<br />Improvement methodology for existing processes & performance<br />
  7. 7. DMAIC – Techniques & Tools<br />Define<br />Analyse<br />Measure<br />Control<br />Improve<br />What is important?<br />How are we doing?<br />What is wrong?<br />What needs to be done?<br />How do we guarantee performance?<br /><ul><li>Baseline & benchmark processes
  8. 8. Decompose processes into sub-processes
  9. 9. Specifying customer satisfaction goals / sub-goals
  10. 10. Identify relevant metrics
  11. 11. Performance measurement - throughput, quality
  12. 12. Cost , resource
  13. 13. Response times, cycle times, transaction rates, frequencies
  14. 14. Evaluate data / information - trends, patterns, causal factors, root cause
  15. 15. Determine candidates for improvements
  16. 16. Prototype initial improvement
  17. 17. Measure & compare results with simulation results
  18. 18. Iterations taken between DMA steps to achieve the target level of performance
  19. 19. Ensure measure-ments are put into place to maintain improvements
  20. 20. Benchmarking
  21. 21. Baseline
  22. 22. Voice of Customer / Business
  23. 23. Quality Function Deployment
  24. 24. Flow chart, Check Sheets, Pareto diagrams, Cause/Effect diagrams, Histograms, SPC
  25. 25. Defect Metrics
  26. 26. Data Collection Forms, Plan, Logistics
  27. 27. Cause / Effect diagram
  28. 28. Failure Modes & Effects Analysis
  29. 29. Decision & Risk Analysis
  30. 30. Statistical Inference
  31. 31. Control Charts
  32. 32. Capability Analysis etc
  33. 33. Design of Experiments
  34. 34. Modeling
  35. 35. Tolerance
  36. 36. Robust Design
  37. 37. Statistical Control - Control Charts, Time Series methods
  38. 38. Non-Statistical Controls – SOP, Performance Mgmt., Preventive activities</li></li></ul><li>Six Sigma – Organisation Capabilities<br />Variation has been reduced<br />Future performance can be predicted<br />Data driven decision making<br />Capabilities<br />Measurable processes<br />Meeting customer’s requirements<br />Results of actions can be assessed<br />Processes Under Control<br />8<br />
  39. 39. CMMI Levels – Risk / Quality<br />9<br />Lvl 5 - Optimised<br />Low<br />High<br />Continuously Improve Process<br />Lvl 4 – Quantitatively Managed<br />Measured<br />Predictable Process<br />Lvl 3 - Defined<br />Standard<br />Productivity / Quality<br />Risk<br />Std Consistent Process<br />Lvl 2 - Managed<br />Planned & Tracked<br />Maturity levels should not be skipped<br />Disciplined Process<br />Lvl 1 - Initial<br /> Performed<br />Lvl 0 - Not performed <br />High<br />Low<br />
  40. 40. CMMI vs. Lean Six Sigma (LSS)<br />10<br />CMMI<br /><ul><li>Model based / Benchmarking
  41. 41. Gauge of maturity
  42. 42. Organisation in Level 4 / 5
  43. 43. Lack standard metrics
  44. 44. Defines the requirements of measurement & SPC
  45. 45. Best practices for systems & software engineering, acquisition and integrated product & process development
  46. 46. Optimise the process
  47. 47. Implementation - 12 ~ 18 months</li></ul>LSS<br /><ul><li>No specific domain
  48. 48. Data driven / improvement method
  49. 49. Customer centric - VOC / VOB
  50. 50. VOP – SPC
  51. 51. Prioritised improvement opportunities – casual data analysis
  52. 52. Set of tools applicable to performing each process improvement activity
  53. 53. Business orientation to process improvement
  54. 54. Implementation - 3 ~ 5 months</li></li></ul><li>CMMI / LSS - Integration<br />
  55. 55. Lvl 4 & 5 – Organisation Pre-requisites<br />Follow defined project processes, specify how & when the data collected will be used, in managing the projects<br />Gather &use meaningful data at all levels from individual, projects to the organisation itself<br />Collect data at project level and elevate that data to the Organisational Measurement Repository for use by other projects / lessons learned<br />Understand the types of variation that are present in all processes<br />Pre-requisites<br />Understand what constitutes meaningful & measurement data<br />Consistently tailor project processes with the organisation’s std processes<br />12<br />
  56. 56. Integration – CMMI & Six Sigma<br />Level 1 & 2: Impossible to achieve “defect free” at these levels<br />Level 3: Possible to start applying Six Sigma <br />Organisational Process Definition, Organisational Process Focus, Requirements Development, Risk Management, Validation, Verification<br />Level 4 & 5: Leverage established measurement practices, further improve capabilities and process integrating both<br />Organisational Process Performance<br />Organisational Innovation and Deployment<br />13<br />
  57. 57. Project Environment<br />14<br />CMMI Assessments<br /><ul><li>Self-assessment tool
  58. 58. Internal / external formal assessments</li></ul>Six Sigma Teams<br /><ul><li>DMAIC / DFSS
  59. 59. Tools & methods</li></ul>CMMI / Six Sigma Integration<br /><ul><li>Project reviews
  60. 60. Integrated strategies</li></ul>Projects<br />Enterprise-Wide Institutionalisation <br /><ul><li>Manual – policies, SOP, requirements
  61. 61. Training</li></ul>Quantitatively Measured <br /><ul><li>Metrics manual
  62. 62. Measurement repository</li></li></ul><li>Lvl 4 & 5 – Organisation Characteristics<br />Quantitative methods used at an organisational & project levels, to understand the past, control the present & predict future quality and process performance<br />Use information from individual projects to understand & refine project performance & variation for the organisation’s standard processes<br />Know process limitations & hence they do not over commit<br />Characteristics<br />Target areas for continuing improvement<br />Accurately & quantitatively estimate quality & process performance & execute on those commitments as planned<br />Quantitative objectives for quality & process performance established based on their business objectives<br />Key sub-processes are identified & statistically managed<br />15<br />
  63. 63. Lvl 4 – OPP & QPM Process<br />16<br />Organisational Process Performance (OPP)<br /><ul><li>Establishes a quantitative understanding of the performance of the organisation’s set of standard processes
  64. 64. Provides process performance data, baselines, and models to quantitatively manage the organisation’s projects</li></ul>Quantitative Project Management (QPM)<br /><ul><li>Quantitatively manages the project’s defined process to achieve the project’s established quality and process-performance objectives</li></ul>OPP & QPM are tightly coupled & require very close cooperation between the organisation & projects, to realise the benefits<br />
  65. 65. Level 4 - Drivers<br />Project Performance <br />stable processes & clean data<br />Organisational Standard Process <br />detailed SOP & which can be tailored<br />Measurement Repository <br />comparable projects, enough measures to stratify / analyse the data<br />Drivers<br />Project’s Defined Process <br />project follow its process<br />Customer & Project Objectives <br />organisation’s process fit the project & customer objectives<br />Organisational Performance Data & Models <br />enough data points, useful baseline models<br />17<br />
  66. 66. Lvl 5 – Organisation & Project<br />18<br />Organisation<br /><ul><li>Identifies incremental and innovative improvements
  67. 67. Pilots improvements
  68. 68. Deploys and measures (quantitatively) the results</li></ul>Project<br /><ul><li>Identifies causes of defects and other problems
  69. 69. Takes actions to prevent them from occurring in the future</li></ul>Preventing defects and innovation (addressing common causes of variation)<br />
  70. 70. Lvl 5 - Drivers<br />Innovative improvements - cause a major shift in process capability<br />Potential improvements are analysed to estimate costs and benefits<br />Incremental improvements – eliminate special causes of variation <br />Drivers<br />Improvements are piloted to ensure success <br />Improvements are measured in terms of variation and mean<br />Goals are quantitative (reduce variation by X%, reduce mean by Y%) <br />19<br />
  71. 71. CMMI & LSS – Process Roadmap<br />Identify & <br />Prioritise<br />Opportunities<br />Project<br />Definition<br />Document &<br />Measure<br />Current<br />Reality<br />Analyse<br />Waste &<br />Variation<br />Improve <br />&<br />Innovate<br />Implement<br />&<br />Validate<br />Measure &<br />Sustain<br />Communicate & <br />Acknowledge<br />Success<br />
  72. 72. Lvl 4 & 5 - Customer Benefit<br />21<br />Causal analysis<br /> Project fixes the source of defects to prevent future defects<br />Organisational process performance<br />More accurate estimates<br />Organisational innovation and deployment<br />Project benefits from improvements found and proven on other projects<br />Quantitative project management<br />Problem behaviors are recognised faster, enabling quicker resolution<br />
  73. 73. 22<br />“This became a credo of mine...attempt the impossible in order to improve your work.” <br />- Bette Davis<br />
  74. 74. Example – Project Evaluation<br />23<br />
  75. 75. Example - Process Evaluation Checklist<br />24<br />
  76. 76. 25<br />“If you have great talents, industry will improve them; if you have but moderate abilities, industry will supply their deficiency.” <br />- Sir Joshua Reynolds<br />
  77. 77. 26<br />Good Luck<br />http://www.linkedin.com/in/anandsubramaniam<br />

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