Proactive Risk and Problem Management

1. Proactive Risk and Problem Management March 14 – 15, 2011 John E. Tinsley Director, Air & Missile Defense Systems Mission Assurance 19th Annual Conference on Quality in the Space & Defense Industries (CQSDI) © 2011 Northrop Grumman Corporation.  All rights reserved. (Log # DTD-11-07)

2. Overview • Organizational Risk Management • Keeping Risks from Becoming Problems • Problem Management Overview • Proactive Leadership, Management, and Problem Solving Team • Proactive Continuous Quality Solutions

3. Organizational Risk Management • Organizations strive for the highest quality solutions and services to satisfy their customer needs for highly reliable and quality products. • Organizations have access to many standards, tools and techniques to assist in this high quality endeavor. Examples include: AS9100, CMMI, Agile, ITIL, Lean Six Sigma, Quality Circles, TQM, and “oh wait I am going backwards in time!” These buzz words or trends have some things in common: • Generate focus on quality and reduced life cycle costs and schedules • Involve similar emphasis on incident, change or problem management • Don’t replace a world class engineering organization and supporting structure • Robust Risk Management must include an organizational focus on: • Technical Organizations • Management Organizations • Supporting Organizations • Interface Assurance

4. Keeping Risks from Becoming Problems

5. Problem Management Overview Support Processes Technical Data Management • Requirements: • Specifications, Procedures, • Standards & Processes • Data Collection Tools Lessons Learned Program Metrics Unknowns Knowns Problem Identification • Problem Assessment / Investigation Analysis • Data Mining • Technical Requirements & Process Improvements • Root Cause Determination • Trend Analysis • Problem Report • Corrective Action/Problem Resolution Yes No Yes • Lessons Learned Problem Risk • Problem Recurrence Control No Continuous Risk Management Continue Continue Problem Disposition Closure

6. Proactive Leadership, Management, and Problem Solving Team • Problem Identification (Team) • Problem Assessment/Investigation Analysis (Team) • Root Cause Determination (Team) • Problem Report (Team/Management) • Corrective Action/Problem Resolution (Team/Management) • Problem Recurrence Control (Team/Management/Leadership) • Problem Disposition Closure (Team/Management/Leadership) • Lessons Learned or Forgotten? (Team/Management/Leadership)

7. Proactive Continuous Quality Solutions • Proactive versus Reactive Continuous Improvement • Reactive CI, including Rapid Improvement Events (RIEs) can add value but eventually diminishes productivity, efficiency, reliability and quality • Proactive CI promotes a high Quality mindset and culture • Proactive CI based on strategic thought leadership about organizational goals and goal accomplishment methods can add much more value and result in: • High Quality People, Processes and Products • Better products despite unexpected events and unknowns • Examples of Proactive CI: • Includes CMMI, AS9100, Agile Software Development, ITIL • Software and Hardware Development with Incremental Risk and Progress Reviews • Proactive Lean Six Sigma and Rapid Improvement Events • Continuous Focus on Interface Assurance (All Organizational Interfaces: Suppliers) • Customer Requirements (Remember there is a forest beyond the trees!) • Communicate, Communicate, Communicate