Six Sigma and the CMM

1. Six Sigma and the CMM Better Software Development Terrence W. Craft Omaha SPIN June 15, 2004 Introductions Expectations Other considerations?Introductions Expectations Other considerations?

2. Goals Strive for 0 defects Proceed systematically Check everything Improve continuously

3. What�s a Process?

4. A Mature Process Consistent with the way work actually gets done Defined, documented, and continuously improving understood used living Supported visibly by management and others Well controlled�process fidelity is audited and enforced Constructive use of product and process measurement Disciplined use of technology

5. What Are the Benefits of a Mature Process? Enables you to focus on the system (and that�s about 85% of the cause of problems) People develop their potential more fully and are more effective within the organization By defining, measuring, and controlling the process, improvements are more successful and sustained The likelihood increases of appropriate technology, techniques, and tools being introduced successfully

6. Change Is a Process Disciplined change is the key to success. Improvement includes planning evaluating improvement proposals and planning actions establishing process improvement teams conducting pilot programs for process improvement updating procedures, training, etc.

7. Value of Fixing Defects Early

8. Taking Dead Aim Six Sigma = 99.99966% accurate Five Sigma = 99.9767% Four Sigma = 99.379% Three Sigma = 93.32% Two Sigma = 69.1% One Sigma = 31%

9. Why Sigma (s) Levels MatterNumber of defects per million opportunities 6 Sigma = 3.4 5 Sigma = 233 4 Sigma = 6,210 3 Sigma = 66, 807 2 Sigma = 308,537 1 Sigma = 690,000

10. Why Close Isn�t Good Enough99% accuracy equals� 117,000 pieces of lost first-class mail per hour 800,000 mishandled personal checks each day 23,087 lemons among new computers shipped each month 7.2 hours per month without electricity

11. 99.9% Quality Even at 99.9% quality there would be� At least 20,000 wrong drug prescriptions per year Unsafe drinking water almost 1 hour each month No telephone or TV transmission for nearly 10 minutes each week Two long or short landings at O�Hare each day 25,000 lost or incorrectly delivered articles of mail per hour Over 9,000 wrong felony convictions per year

12. D-M-A-I-C Information to Convey: Questions to Ask: Exercises to Facilitate: Information to Convey: Questions to Ask: Exercises to Facilitate:

13. DMAIC Define Project charter Stakeholder analysis SIPOC VOC Measure Data collection Validating the measurement system Developing a sampling strategy Understanding variation Process capability Analyze Organizing potential causes Verifying causes Hypothesis tests Regression analysis DOE Improve Generating solutions Assessing risks and piloting solutions Planning tools Control Quality control Standardization Monitoring control charts Evaluating results Key learnings CMM assessment

14. Where To Use DMAIC Green Belt efforts PITs/PATs/Tiger Teams Project management Quick hits Opening a business

15. Did You Know?

16. What Are These Things? The Capability Maturity Model describes the stages through which software organizations evolve as they define, implement, measure, control, and improve their s/w processes. The model provides a guide for selecting process improvement strategies by facilitating the determination of current process capabilities and the identification of issues most critical to s/w quality and process improvement. Six Sigma is a smarter way to manage a business or a department. Six Sigma puts the customer first and uses facts and figures to drive better solutions. The foundation includes: Prevent defects. Reduce variation. Focus on the customer. Makes decisions based on facts. Encourage teamwork.

17. What Is the Capability Maturity Model (CMM)? 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

20. Working Together Showing improvements; ROI, quantifiable results. Six Sigma tools and focus on measurements Requirements � the model assumes you have them. Maybe not. Six Sigma can help define, quantify, and illuminate

21. Why Use Both? CMM is the leading framework for assessing and improving an organization�s software practices. It gives us the �what� should be done. Six Sigma is a business management discipline focused on engineering for superior quality as defined by the customer needs. Six Sigma gives us the tools for �how� to do it.

22. Capability Versus Performance Process capability � the range of expected results that can be achieved by following a process, initially established at the organization level. A predictor of future project outcomes. Process performance � a measure of the actual results achieved from following a process. Refers to a particular project in the organization.

23. Process Variation Which pilot would you recommend? Why? How do you think your processes perform? Would you recommend your process? Information to Convey: Questions to Ask: Exercises to Facilitate: Information to Convey: Questions to Ask: Exercises to Facilitate:

24. THE ROLE OF THE PROCESS OWNER IS TO MANAGE THE PROCESS LIFECYCLE.

25. Quick Definitions DMAIC � Define, Measure, Analyze, Improve, Control Sometimes seen as DMAIIC � Define, Measure, Analyze, Improve, Implement, Control DMADV � Define, Measure, Analyze, Design, Verify

26. PDCA is Where It's At

27. Bottom Line

28. Summary Using Six Sigma to help implement a CMM will provide: discrete and macro measures to ensure improvement targets are achieved, a proven way to close process gaps, and control processes to insure sustainability

29. Questions, Comments, Concerns? �in other words, does this make sense?

30. Let�s Talk Email & voice Terrence.Craft@firstdatacorp.com Tel. 402-222-5598/402-880-7656 Follow-up Thank you for coming today!