The Fundamentals of Six Sigma The Fundamentals of Six Sigma

Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved. Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.

1

The Fundamentals of Six Sigma

Rick Hefner & Mike Sturgeon Northrop Grumman Mission Systems

[email protected], [email protected]

,

28 April 2003

Software Technology Conference

mailto:[email protected]

mailto:[email protected]


2

Agenda

Six Sigma Fundamentals

Applying Six Sigma to Engineering

Organizational Implementation


3

Audience Background

What experience have you had with Six Sigma?

– Just starting to hear about it

– My organization is considering implementing it

– I have experience implementing it

Are you familiar with the Software CMM? Levels 4-5?

Are you familiar with the CMMI? Levels 4-5?


4

Agenda





5

What is Sigma?

Sigma (s) is the Greek symbol used to represent

standard deviation, a measure of the variation from the

mean in a normal distribution

– Six Sigma implies a process where any value outside the spec is

a extremely rare occurrence

Target upper

spec lower

spec

0.001 parts per

million (ppm)

0.001 ppm

± 6 sigmas

( 99.9999998% “good”)


6

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

Defects Defects

Too early Too late

Delivery Time

Reduce variation

Delivery Time

Too early Too late

Spread of variation

too wide compared to

specifications

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


7

A Typical Six Sigma Project in Software

Customers express concern that software defects are

causing frequent failures in the field

A Six Sigma team is formed to scope the problem, collect

data, and determine the root cause

The team’s analysis of the data determines that poorly

understood interface requirements account for 90% of the

problems in the field

The project collects data to verify the problem has been

corrected, and continues collecting data to ensure the

problem does not return

The organization’s requirements solicitation process is

modified to ensure future projects do not encounter similar

problems


8

Roles & Responsibilities

Champions – Facilitate the leadership,

implementation, and deployment

Sponsors – Provide resources

Process Owners – Responsible for the processes being improved

Master Black Belts – Serve as mentors for Black Belts

Black Belts – Lead Six Sigma projects

– Requires 4 weeks of training

Green Belts – Serve on improvement teams under a Black Belt



9

Six Sigma History

1985-1992

Motorola

Texas

Instruments

Period of

Design

1993-1994

Asea Brown

Boveri

Period of

Refinement

1994-1996

Allied Signal

General

Electric

Period of

Results

1996-1997

Nokia

Mobile

Phones

Bombardier

Siebe

…

Period of

Competitive

Assessment

1985-1992

Lockheed

Martin

Sony

Crane

Polaroid

Avery

Dennison

Shimano

Period of

New

Technology


10

IMPROVE

• Customer

CTQs

derived and

documented

• CTQs

Measured

• Process

Capability

• Process

Stability

• Baseline

Sigma

Calculated

• Identify,

Quantify and

Verify Root

Causes

• Benefits

Estimated

• Ongoing

Measurement

& Monitoring

Plan

Implemented

• Process

Standardized

• Benefits

Validated

• Cost/Benefit

Analysis

Process Improvement — DMAIC

Charter team,

map process &

specify CTQs

Measure process

performance

Identify &

quantify root

causes

Select, design &

implement

solution

Institutionalize

improvement,

ongoing control

DEFINE MEASURE ANALYZE

IMPROVE CONTROL


11

Charter team,

map process &

specify CTQs

Measure process

performance

Identify &

quantify root

causes

Select, design &

implement

solution

Institutionalize

improvement,

ongoing control


IMPROVE CONTROL

Define Phase

Define the project’s purpose and scope and get background on the process and customer

Outputs

A clear statement of the intended improvement and how it is to be measured

A high level map of the process

A list of what is important to the customer

Activities

Develop business case and team charter

Map the current process

Listen to the voice of the customer


12

Team Charter

A team charter is an

agreement between

management and the team

about what is expected.

The charter:

– Clarifies what is expected of

the team

– Keeps the team focused

– Keeps the team aligned with

organizational priorities

– Transfers the project from the

champion(s) to the project

team

Key elements

Problem statement

Business case (financial impact)

Measurable goals

Project scope (process

boundaries)

Roles and responsibilities

– Project team & sponsorship

– Support required

Project description

Milestones/deliverables


13

Identify Key Stakeholders Early On

Develop communication plan based on level of

commitment required

Stakeholders (Examples)

Level of Commitment Testers Developers Requirements Leads

Enthusiastic Support O O

Help it work O

Compliant

Hesitant X

Indifferent X

Uncooperative X

Opposed

Hostile

X = Current Level

of Commitment

O = Level of

Commitment

Necessary for

Success

Tie to

CMMI


14

Suppliers-Inputs-Process-Outputs-Customers

(SIPOC)

High level “as-is” process map

– 5 to 7 key steps of main action

– Used to focus on the fundamental elements of the process

q

6

6

6

6

6

6

Sideways

KEY for (x’s) Process Parameters

: Noise Parameters

6 Controllable Process Parameters

4 SOP Parameters q Critical Parameters

INPUTS

INPUTS (X’s)

Operator

Copy Machine

Paper

Power

Instructions

Document to Copy

Set Size

Required

Place Doc into

Position in or

on Copier

.

Set Light/Dark

Settings

.

Select Paper

Tray/Source

Set Number of

Copies Needed

OUTPUTS (Y’s)

Copies with:

right number

right contrast

correct orientation

right size

on right paper

OUTPUT

q (x’s )

N Hinges on Lid

q Auto Feeder

N Glass Clean

q (x’s)

6 # Copies Button

q # Copies Required

q (x’s)

N Size display

6 Size buttons

q (x’s)

6 “Darker” Button

6 “Lighter” Button

6 “Auto” Button

q (x’s)

6 8.5 X 11: Landscape

6 8.5 X 11 Portrait

6 8.5 X 14 Landscape

6 8.5 X 14 Portrait

6 11 X 14

6 Tray’s with adequate supply of paper

Product ( y’s )

Doc set correctly

Doc set incorrectly

Upside Down

Product ( y’s )

Correct # of Copies

Incorrect # of Copies

Product ( y’s )

Right size selected

Size too Small

Size too Large

Product ( y’s )

Right contrast

Too Light

Too Dark

Product ( y’s )

Correct Tray Selected

Incorrect Tray Selected

Press “Copy”

Button

q (x’s)

q Copy Button

N Led’s

Product ( y’s )

Machine producing copies

Machine not producing copies

Retrieve

Copies

q (x’s)

6 Output Tray

Product ( y’s )

Copies available

SUPPLIERS CUSTOMERS


15

Voice of the Customer (VOC)

CT "critical to" matrix links

process or CT tree (columns of

the matrix) and product or CTY

tree (rows)

– Critical To Satisfaction (CTS)

– Critical To Quality (CTQ)

– Critical To Delivery (CTD)

– Critical To Cost (CTC)

– Critical To Process (CTP) -

Process parameters which

significantly influence a CTQ,

CTD, and/or CTC

5 CT Tree

Defi

ne

CTQ

Process Input

The CT Matrix Structure

...

...

CTY Tree (Product Tree)

CT

X T

ree (

Pro

cess T

ree)

Tie to

CMMI


16

Exercise

Instructions: Select a problem you are currently experiencing in your project or organization. Working individually or in small groups, complete the following charts to form the basis of a Six Sigma project charter.

Time: 20 min


17

Problem Statement

What problem is the team addressing?

What is the magnitude and trend of the problem?

What is the baseline performance?

Business Case

Why do this project?

What’s the business impact of improving this process?

Defect Reduction

Customer Impact

Financial Impact

Employee Impact

Strategy Linkage


18

What must the team deliver to be successful?

– Defect Reduction

– Productivity/Cost Savings

– Growth

– Customer Impact

Scope

– What process will the team focus on?

– What are the process boundaries for the process to improve?

(start and end points)?

– What is off-limits or out-of-bounds for the team?

– What constraints must the team work under?

Measurable Goals (SMART – Specific, Measurable,

Attainable, Relevant, and Time-Based)


19

Roles/Resources Who is the Sponsor?

Who is the Process Owner?

Who is the Black Belt?

Who are the team members; what are their roles and time

commitments?

How will the team need to interface with?

What additional resources does the team need?

Schedule What/when are the project milestones?

When do you estimate completion of each phase of the

DMAIC process?

When should reviews be scheduled; with whom?


20

Exercise Debrief

Many project scopes are large and unmanageable in the beginning.

Most projects evolve. Few are cast in stone from the onset.

During each phase of the DMAIC process, you’ll learn more about what is really going on.

Be open to revisiting the scope, definition, and purpose of the project.

Check with your Champion, Process Owner and/or Master Black Belt before making any substantive changes.


21

Identify &

quantify root

causes

Select, design &

implement

solution

Institutionalize

improvement,

ongoing control


IMPROVE CONTROL

Measure Phase

Focus the improvement effort by gathering information on the current situation

Outputs

Baseline data on current process

performance

Data that pinpoints problem location

or occurrence

A more focused problem statement

Activities

Collect baseline data on defects and possible causes

Develop a sampling strategy

Validate your measurement system

Analyze patterns in data

Determine process capability

Measure process

performance

Charter team,

map process &

specify CTQs


22

Data Collection Plan

Meaning of measurement in relation to

project, process, or product

What is counted into or excluded

Measurement validation method

– Regular validation during collection

– Periodic validation of samples or

aggregates independent of collection

tools and methods

Frequency of measurement collection

Calculations used to derive an indirect,

aggregated, or accumulated value

How and where measurements are

stored and accessed

Tools, methods, resources,

and assignments required

Operational Definition and Procedures

Data Collection Plan What questions do you want to answer?

Data

What Measure type/ Data type

How measured

Related conditions

Sampling notes

How/ where

How will you ensure consistency and stability?

What is your plan for starting data collection?

How will the data be displayed?

Measurement Consistency and Accuracy Is Vital

Tie to

CMMI

Operational definitions are critical


23

Operational Definition

An operational definition is a precise description that tells how to get a value for the characteristic you are trying to measure – but there is no single answer.

– Must be specific and concrete

– Must be measurable

– Must be useful to both you and your customer

It includes what something is and how to measure it.

– Removes ambiguity so that all people involved have the same understanding

– Describes your way of measuring that characteristic or feature.

Key Points

There is no single right answer

The more specific, the better

Plan on refining the definition after you try it out

If you collect the data manually, training will help data collectors consistently apply operational definitions


24

Failure Modes and Effects Analysis

Used to identify the way in which errors happen; an error mode, the antithesis of function

Employed as a diagnostic tool in improvement

Used as a prevention tool in design

Deals with the three dimensions of an error mode:

Severity

Detectability

Frequency

Process or

Product Name: Prepared by: Page ____ of ____

Responsible: FMEA Date ( Orig ) ______________ (Rev) _____________

Process

Step/Part

Number

Potential

Failure

Mode

Potential

Failure

Effects S

E

V

Potential

Causes O

C

C

Current Controls D

E

T

R

P

N

Actions

Recommended Resp .

Actions

Taken S

E

V

O

C

C

D

E

T

R

P

N

Process/Product


(FMEA)

Process/Product


(FMEA)

Tie to

CMMI

Effective tool for focusing the data

collection effort on those input and

process variables that are critical

for the current process.


25

Measure process

performance

Select, design &

implement

solution

Institutionalize

improvement,

ongoing control


IMPROVE CONTROL

Analyze Phase

Identify the vital few process and input variables (Xs) that affect

CTQ process performance or output measures (Ys)

Outputs

A theory that has been tested and confirmed

Verified causes that form the basis

for solutions in Improve

Refined estimate of benefit

Activities

Develop theories of root causes (organize potential causes)

Confirm the theories with data

Identify the root cause(s)

Use design of experiments (DOE) to optimize

Identify &

quantify root

causes

Charter team,

map process &

specify CTQs


26

Organizing Causes

Useful tools – Brainstorming

– Affinity Diagram

– Tree Diagram

– Cause-and-Effect Diagram

– “The Five Whys”

Objective

Means/Objective

Means/Objective

Means/Objective

Means/Objective

Means/Objective

Means

Means

Means

Means

Means

Means

Means

Means

Means/Objective

Tie to

CMMI


27

Verifying Causes: Process, Data

Process

To improve the understanding of

process flow

To tackle cycle time problems

To identify opportunities to reduce

process costs

Detailed Process Map

Value Added Analysis

Cycle Time Analysis

Data

To understand the drivers of

variation in the process

To tackle quality problems/waste

To understand the root cause of

differences between outputs

Stratification

Scatter Diagrams

Multi-vari Plots

Consider both aspects to avoid overlooking potential causes

Tie to

CMMI


28

Measure process

performance

Identify &

quantify root

causes

Institutionalize

improvement,

ongoing control

DEFINE

MEASURE ANALYZE

IMPROVE CONTROL

Improve Phase

Develop, pilot, and implement solutions that address root causes

Outputs

Planned, tested actions that should eliminate or reduce the impact of the identified root cause(s)

Activities

Generate, evaluate, and select solutions to identified causes

Assess risks and pilot solutions

Develop and execute implementation plans

Select, design &

implement

solution

Charter team,

map process &

specify CTQs


29

Trade Studies

Select and set up methodology

• Choose trade-off methodology

• Develop and quantify criteria, including

weights where appropriate

Identify and select alternatives

• Identify alternatives

• Select viable candidates for study

Analyze results

• Calculate relative value based on chosen

methodology

• Evaluate alternatives

• Perform sensitivity analysis

• Select preferred alternative

• Re-evaluate results

Measure performance

• Develop models and measurements

of merit

• Develop values for viable candidates

Document process and results

Formal decision making methods to make choices among alternatives & resolve conflicts – involve entire improvement team

Tie to

CMMI


30

Measure process

performance

Identify &

quantify root

causes

Select, design &

implement

solution

DEFINE

MEASURE ANALYZE

IMPROVE CONTROL

Control Phase

Ensure the problem stays fixed and the new methods can be further improved

Outputs

Before and after analysis

Monitoring system

Completed documentation of results, learnings and recommendations

Validated benefit

Activities

Establish quality control

Standardize effective methods

Establish on-going process monitoring

Evaluate results/draft future plans

Summarize key learnings

Institutionalize

improvement,

ongoing control

Charter team,

map process &

specify CTQs


31

The Control Plan

Systematic tool for identifying and correcting root

causes of out-of-control conditions

Focus is on prevention -- not a “triggering” system

Questions that must be answered

– Who owns the process?

– How will we transition responsibility from the Black Belt to the

process owner?

– How do we ensure we maintain the gains?

– How do we track our results (performance and financial)?


32

Institutionalize Key Learnings

Capture knowledge gained from Six Sigma project

– Results

– Key learnings

– Potential future projects

Communicate to rest of organization for knowledge

sharing and transfer

Archive in knowledge management repositories

Tie to

CMMI


33

Improvement Strategies

Fix an existing process

Narrow Focus

Use current process model

Low Risk

Shorter Time Span

Addressing few CTQs

Goal: Improvement

Is the gap

small?

Customer

Requirements

Process

Capability

Fundamental Redesign

Iterative Improvement

YES NO

Design a new product / process

Broad approach

Blank sheet of paper approach

High Risk

Longer time span

Addressing many CTQs

Goal: Quantum Leap

DMAIC Design for Six Sigma


34

Define – Measure – Analyze – Design – Verify

(DMADV)

While DMAIC is used for incremental improvements to a process,

DMADV is used for innovative improvements

– Also called DFSS (Design for Six Sigma)

Uses many of the same tools and methods, although the focus is on

designing a Six Sigma process from scratch

Translate VOC

needs into

requirements

Generate,

evaluate, &

select design

concepts

Complete high-

level and detailed

designs

DEFINE

MEASURE ANALYZE DESIGN VERIF

Y Conduct pilots,

implement

solutions

Charter team &

identify CTQs


35

DMADV – Define

Develop the Charter/

Business Case

Connection to Business Strategy:

Market Impact:

Business Assumptions:

Risk:

Develop Project Plans

Identify

Internal/External

Risks

Low Medium High

Yellow Light:

Proceed with

caution

Red Light:

Address before

proceeding

Red Light:

Do not

proceed

Yellow Light:

Proceed with

caution

Yellow Light:

Proceed with

caution

Red Light:

Reassess

project

Green Light: Yellow Light:

Proceed with

caution

Red Light:

Address before

proceeding

L

ow

M

ed

ium

H

igh

Pro

bab

ilit

y o

f O

ccu

rren

ce

Impact on Project

Proceed!

Review Tollgate Requirements

Charter

Project Plan

Organizational Change Plan

Risk Management Plan

Develop Organizational

Change Plan

Current State

Desired State

Transition

State 1

Transition

State 2

Transition

State 3

Change Path

Translate VOC

needs into

requirements

Generate,

evaluate, &

select design

concepts

Complete high-

level and

detailed

designs

DEFINE

MEASURE ANALYZE DESIGN VERIFY

Conduct pilots,

implement

solutions

Charter team &

identify CTQs

DEFNE


36

DMADV – Measure

Understand Voice of the Customer

Translate VOC Needs into

Requirements (CTQs) CTQ Measures

(Hows)

Custo

mer

Needs

(Whats

)

House of

Quality

#1

Functions (Hows)

CT

Q M

easu

res

(Whats

)

House of

Quality

#2

High Level

Design Element

Critical

Pro

cess F

unctions

(Whats

)

House of

Quality

#3

Detailed Design Element Process Control Variables

Hig

h L

evel

Desig

n E

lem

ent House

of Quality

#4

Needs

Importance of CTQ

Lunch Preparation—QFD Example

Fills Us Up

Is Nutritious

Tastes Good

Easy to Make

Easy to Clean Up

Sticks with Us

Does Not Cost Much

Does Not Make a Mess

9 1 1 5.00

1 9 1 3.40

0 0 9 1 3.30

1 9 9 3.70

9 3 2.00

9 1 4.00

3 9 1.00

3 9 2.30

87 36 35 23 33 40 39 6

CTQ Measures

Weig

ht

of

Po

rtio

n

% N

utr

itio

n

Req

uir

em

en

ts

Met

Blin

dfo

lde

d J

ury

Taste

Test

Rati

ng

Ing

red

ien

t C

ost

Tim

e t

o P

rep

are

Nu

mb

er

of

Ing

red

ien

t

Measu

rem

en

ts

Nu

mb

er

of

Dis

hes U

sed

So

lub

ilit

y o

f In

gre

die

nts

in S

oap

an

d W

ate

r

Imp

ort

an

ce o

f N

eed

s

Quality Function

Deployment (QFD-HOC)

Prioritize CTQs

Reassess Risks

Phase 1

Phase 2

Phase 3

All End

Users

Intl.

Suppliers

Domestic

Suppliers Design

Description

Market

Segment

Platform Management

Matrix

Translate VOC

needs into

requirements

Generate,

evaluate, &

select design

concepts

Complete high-

level and

detailed

designs

DEFINE


Conduct pilots,

implement

solutions

Charter team &

identify CTQs

DEFNE


37

DMADV – Analyze

Check

for

Errors

Enter

Order

Confirm

Order

Receipt

Transmit

Order

Info

Request

Transmitted

Order

System Boundary

Identify Key

Functions

Prioritize

Functions CTQ Measures

(Hows)

Custo

mer

Needs

(Whats

)

House of

Quality

#1

Functions (Hows)

CT

Q M

easu

res

(Whats

)

House of

Quality

#2

High Level

Design Element

Critical

Pro

cess F

unctions

(Whats

)

House of

Quality

#3

Detailed Design Element Process Control Variables

Hig

h L

evel

Desig

n E

lem

ent House

of Quality

#4

Evaluate and

Select Concepts

Less Detail /Many Alternatives

More Detail/Few Alternatives

Most Detail/Single Alternative

CONCEPT DESIGN

HIGH LEVEL DESIGN

DETAILED DESIGN

Redesign

Concept Review

Evaluation Criteria

Participants

Documentation

Data Collection

Data Analysis

Action Plans

Causes of Failure

Translate VOC

needs into

requirements

Generate,

evaluate, &

select design

concepts

Complete high-

level and

detailed

designs

DEFINE


Conduct pilots,

implement

solutions

Charter team &

identify CTQs

DEFNE


38

DMADV – Design

High Level

Design

Detailed

Design

Identify Design

Elements

Prioritize Design

Elements

Predict Design

Performance

Design

Requirements

Develop High

Level Design

High Level Design

Review

Identify Detailed

Design Requirements

Develop Detailed

Design

Test

Detailed Design

Detailed Design

Review

Develop Process

Management Plan

Prioritize Design

Elements

Enter Order

Ord

er

Entr

y F

orm

Ord

er

Pla

cem

ent

Pro

cess

IVR

Scripts

Ord

er

Pro

cessin

g A

gents

Ord

er

Pro

cessin

g S

yste

m/D

ata

base

Ord

er

Pro

ce

ssin

g C

ente

r

Fax &

Phone N

etw

ork

IVR

Hard

ware

Supplie

s

Order Processing

Order Confirmation/Validation

Transmit Order

9 9 9 3 9 9 9 4.2

3 9 9 1 2.5

9

9 9 9 3 9 1.6

1.6919

Import

ance

45 89 52 49 52 10 57 52

Enter Order

Ord

er

Entr

y F

orm

Ord

er

Pla

cem

ent

Pro

cess

IVR

Scripts

Ord

er

Pro

cessin

g A

gents

Ord

er

Pro

cessin

g S

yste

m/D

ata

base

Ord

er

Pro

ce

ssin

g C

ente

r

Fax &

Phone N

etw

ork

IVR

Hard

ware

Supplie

s

Order Processing

Order Confirmation/Validation

Transmit Order

9 9 9 3 9 9 9 4.2

3 9 9 1 2.5

9

9 9 9 3 9 1.6

1.6919

Import

ance

45 89 52 49 52 10 57 52

Predict Design Performance

CAPABILITY FEEDBACK • Combine scores for all

• Locate performance gaps • DPMO on scorecard

REQUIREMENTS

FLOW • Identify customer

needs

• Outline specifications • Predict performance Performance

Parts Score

Software Score

Process Score

DFSS Product Scorecard

Translate VOC

needs into

requirements

Generate,

evaluate, &

select design

concepts

Complete high-

level and

detailed

designs

DEFINE


Conduct pilots,

implement

solutions

Charter team &

identify CTQs

DEFNE


39

DMADV – Verify

Plan the

Pilot

Date:File name:

Process Descripti on: Process Customer:KQCs Out Come Indicator(s):

Process Fl ow Chart Checking Misc.Information

Step or Tim e

Pos i tion Input-P roces s-O utcom eIndic ators

Control L im i ts Chec k ingItem Frequenc y

Res pon-s ibi l i ty

Contingenc yPlan Include

• Abbreviations• P rocedures• Remarks, Etc.

Im plementationTimeline:Tasks #4

Process TouchPoints: TMSD,Metro/Dist rictManagers andLocal FieldPersonnel, Thirdparty Providerand Procurement

Charts and G raph Ty pe Spec s/Targets

What toChec k

When toChec k

Who Chec ks Ac tion R eq’d for

Ex c eption

REV # DATE Revision Description By Appr

Process Management Chart

Process Management Chart

Conduct and

Evaluate

the Pilot

Pilot

Act Plan

Check Do

PDCA Cycle

Implement

Act Plan

Check Do

PDCA Cycle

Close

Project

Translate VOC

needs into

requirements

Generate,

evaluate, &

select design

concepts

Complete high-

level and

detailed

designs

DEFINE


Conduct pilots,

implement

solutions

Charter team &

identify CTQs

DEFNE


40

Exercise

Instructions: Consider the process identified in the first exercise.

1. What measures do you currently have?

• Process performance (effectiveness, efficiency)

• Quality performance (defects in work products)

• Base measures

2. How accurate is your measurement system?

• Repeatable

• Reproducible

Time: 10 min


41

Agenda





42

Applicability to Engineering

Software and system processes are fuzzy

– Software and systems engineering "parts" are produced using

processes lacking predictable mechanizations assumed for

manufacturing of physical parts

– Simple variation in human cognitive processes can prevent

rigorous application of the Six Sigma methodology

– Process variation can never be eliminated or may not even

reduced below a moderate level

Results often cannot be measured in clear $ savings

returned to organization

– Value is seen in reduced risk, increased customer satisfaction,

more competitive bids, …


43

Additional Challenges

Difficulty in collecting subjective data

Reliability of subjective data

Quantifying dynamics of on-going project

Capturing process data requires existence of detailed

system/software development methodology

Defined methodology must be what is executed

– Difficult for human-intensive activities


44

Elements of Six Sigma throughout CMMI

Organizational Process Technology Innovation Causal Analysis and Resolution*

5 Optimizing

4 Quantitatively Managed

3 Defined

2 Managed

Continuous process improvement

Quantitative management

Process standardization

Basic project management

Organizational Process Performance Quantitative Project Management

Organizational Process Focus Organizational Process Definition Organizational Training Integrated Project Management* Risk Management Decision Analysis and Resolution Requirements Development Technical Solution Product Integration Verification Validation

Requirements Management * Project Planning* Project Monitoring and Control* Supplier Agreement Management Measurement and Analysis Process and Product Quality Assurance* Configuration Management

1 Performed

Process Areas Level Focus

Six Sigma

Define

Six Sigma

Analyze

Six

Sigma

Improve

Six Sigma

Control

Six Sigma

Measure


45

How CMM/CMMI Helps Six Sigma Efforts

CMM/CMMI focuses on organizational change

– Provides guidance on many dimensions of the infrastructure

Generic Practices (all process areas)

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 3.1 Establish a Defined Process

GP 2.6 Manage Configurations

GP 2.7 Identify and Involve Relevant Stakeholders

GP 2.8 Monitor and Control the Process

GP 3.2 Collect Improvement Information

GP 2.9 Objectively Evaluate Adherence

GP 2.10 Review Status with Higher-Level

Management

Process Areas

Organizational Process Focus

Organizational Process Definition

Organizational Training

Organizational Process Performance

Organizational Innovation and Deployment


46

How Six Sigma Helps CMM/CMMI Efforts

For an individual process:

– CMM/CMMI identifies what activities are expected in the process

– Six Sigma identifies how they can be improved (efficient,

effective)

SG 1 Establish Estimates SP 1.1 Estimate the Scope of the Project SP 1.2 Establish Estimates of Project Attributes SP 1.3 Define Project Life Cycle 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 Subordinate Plans SP 3.2 Reconcile Work and Resource Levels SP 3.3 Obtain Plan Commitment

Example –

Project Planning in the CMMI

• Could fully meet the CMMI goals

and practices, but still write poor

plans

• Six Sigma can be used to improve

the planning process and write

better plans


47

How Six Sigma Helps Process Improvement

PI efforts often generate have little direct impact on the business goals – Confuses ends with means;

results measured in activities implemented, not results

Six Sigma delivers results that matter to managers (fewer defects, higher efficiency, cost savings, …)

Six Sigma concentrates on problem solving in small groups, focused on a narrow issue – Allows for frequent successes (3-9 months)

Six Sigma focuses on the customer’s perception of quality


48

How Six Sigma Helps Level 1-3 Organizations

Six Sigma focuses on:

– Setting up the management

oversight and mentoring

infrastructure (management

councils, training for

Black/Green Belts, …)

– Establishing an ROI/business case

for the improvements

Six Sigma projects provide a mechanism

(similar to Process Action Teams) for:

– Making specific improvements

– Getting business benefit out of an improved process


49

Gap Between Levels 3 and 4

– Process fidelity is poor

– Tailoring is too loose

– Measurement culture not mature

– Few measures tracked at event/task level

– Missing and “dirty” data

– Data inconsistent across projects

– Process performance not quantified

– Cause of performance differences unknown

– Unfocused org analysis and support

In Out Level

3

In Out Level

4

The Gap


50

How Six Sigma Helps Level 4-5 Organizations

Six Sigma provides specific methods and tools for:

– Quantitative process management of Level 4

– Causal Analysis and Resolution of Level 5

Six Sigma projects provide a

mechanism for selecting and

implementing improvements

– Addresses Organizational

Innovation and Deployment

– Can extend beyond Level 5


51

Exercise

Instructions: Select a current organizational goal related to CMM, CMMI, ISO or other business objectives. Identify 5-6 Six Sigma projects that could be performed to advance the organization towards the goal. Consider Six Sigma projects for the programs within the organization. How would you sell your customer on the value?

Time: 20 min


52

Agenda





53

Business

Measures

Voice of the

Customer

Change

Management

Six Sigma

ISO 9001 CMMI

Methods

& Tools

DMAIC

DFSS

Process

Management

Mission Systems’ Integrated Approach

to Process Improvement

ISO 9001 – quality management discipline for project and functional areas

Six Sigma – framework for ensuring process improvements support

corporate goals

CMMI – use of industry best practices in software/systems engineering


54

Division

Dashboards

Mission Systems Dashboard

• Used to Manage the Core Business Processes

• Defined by Business Executives

• Owned by Business Executives

Enabling Processes

Financial Management

Information Management

Governance Compliance

Relationship Management

Technology/Product Development

Employee Management

Portfolio Management

Business Development

Program Execution

Core Processes

Results of Six Sigma Projects seen in improved business performance

• Productivity • Profitable Growth

Key Business Questions

Sub Processes

Gaps

& Goals

ROI Gate

Core Processes Drive the Key Business Measurement Criteria

….

Subcontractor Management

Mis

sio

n S

yste

ms B

usin

ess O

bje

ctive

s

The Mission Systems Enterprise

• Customer Satisfaction • Operational Effectiveness


55

Selecting Six Sigma Projects

Select based on:

– Pain being experienced within the project

– Organizational issues and objectives

Level 4 Six Sigma Projects

– Identify subprocesses critical to project performance

– Bring subprocess into statistical control – eliminate special

causes

Level 5 Six Sigma projects

– Stabilizing a subprocess typically involves causal analysis

– Improve subprocess performance – eliminate common causes

– May require DFSS to meet specific performance targets


56

Roles & Responsibilities

Champions – Facilitate the leadership,

implementation, and deployment

Sponsors – Provide resources

Process Owners – Responsible for the processes being improved

Master Black Belts – Serve as mentors for Black Belts

Black Belts – Lead Six Sigma projects


Green Belts – Serve on improvement teams under a Black Belt



57

Mission Systems • Process Management staff • Mission Systems Process

Group • Office of Cost Estimation • Six Sigma Training Office • Dashboards

Divisions

• Division Champions • Division Process Groups • Training Offices

(engineering, management) Projects

• Self-Assessment Tool • Corrective Action System

Six Sigma Projects

• StartIt! Database • Best Practice Sharing

Organized Enterprise-Wide for

Accomplishments

Six Sigma efforts leveraged

off the successful CMMI

infrastructure • Common program office and

reporting structure

• Shared staff with skills in both

areas

• Information sharing from

Enterprise to Division to

Project

Management Commitment: “Every engineer and manager will receive 2 weeks of training and serve as a Green Belt on at least one Six Sigma project.”


58

Six Sigma Lifecycle

TRW Systems’

Business

Objectives

Info

rmati

on

Ma

na

gem

en

tMetrics – Link to Strategy

Annual CAGR

(> 10%)

Double-Digit

Earnings &

Cash Flow

Growth

Improve

Return on

Investment

Strategy

Minimize

Costs of

Business

Positioning

Within

Existing

Markets

Find & Grow

“Right” Markets

Improve

Productivity

Improve Resource

Allocation

Improve Operational

Efficiency

Grow Existing

Markets

Increase Profit

Margins

Deliver

Flawless

Client

SolutionsPerfect Project

Execution

Manage Client

Relationships

Leverage Resources

& Solutions

Develop Client

Relationships

Relationship:

Strong –

Future –

Impact –

IM Metric Categories

System

A

vailability

& P

erform

anc

e

Service U

sage

Project B

udg

et &

Sche

dule

Asset

Utilization/R

e-use

Application

Effectiven

ess

Rates

Sec

urity

Invoicin

g/B

illing

Custom

er

Satisfaction

Six Sigma

Business Goals

& Metric Category

Linkage

Str

ength

of

Rela

tionship

(1,3

,9)

Impact #

Gap #

(1

- 5)

Overa

ll

Impact/G

ap #

Str

ength

of

Rela

tionship

(1,3

,9)

Impact #

Gap #

(1

- 5)

Overa

ll

Impact/G

ap #

Str

ength

of

Rela

tionship

(1,3

,9)

Impact #

Gap #

(1

- 5)

Overa

ll

Impact/G

ap #

Str

ength

of

Rela

tionship

(1,3

,9)

Impact #

Gap #

(1

- 5)

Overa

ll

Impact/G

ap #

Str

ength

of

Rela

tionship

(1,3

,9)

Impact #

Gap #

(1

- 5)

Overa

ll

Impact/G

ap #

Str

ength

of

Rela

tionship

(1,3

,9)

Manage Client

Relationships5 1 5 4 20 3

Deliver Flawless

Client Solutions

Perfect Project

Execution4 9 36 3 108 3 12 3 36 9 36 4 144 9

Double Digit

Earnings & Cash

Flow Growth

Improve

Productivity3.5 9 31.5 3 94.5 9 31.5 4 126 3

Minimize Costs

of Business

Improve

Resource

Allocation4 1 4 2 8 3 12 3 36 1 4 4 16 3 12 4 48 3 12 4 48

Improve

Operational

Efficiency3 3 9 3 27 3 9 3 27 1 3 4 12 1

238 99 286 48 80

Future

Strong

Focus Areas

Application Effectiveness


Info

rmation M

anagem

ent

RatesAsset Utilization/Re-Use Security

System Availability &

Performance Project Budget & Schedule

7

Information

Information

Management

Management

TRW Systems’

Business

Objectives

Info

rmati

on

Ma

na

gem

en

tProjects – Link to Strategy

Annual CAGR

(> 10%)

Double-Digit

Earnings &

Cash Flow

Growth

Improve

Return on

Investment

Strategy

Minimize

Costs of

Business

Positioning

Within

Existing

Markets

Find & Grow

“Right” Markets

Improve

Productivity

Improve Resource

Allocation

Improve Operational

Efficiency

Grow Existing

Markets

Increase Profit

Margins

Deliver

Flawless

Client

SolutionsPerfect Project

Execution

Manage Client

Relationships

Leverage Resources

& Solutions

Develop Client

Relationships

Current IM Six Sigma Projects

Help D

esk/

Call C

enter

Know

ledg

e

Mana

gem

ent

PC

Disposition

Em

ploye

e

Portal

Collaboration

CR

C C

ost

Optim

ization

Sec

urity

Firew

all

Exc

eptions

HR

/P

ayroll D

ata

Archiving

$$ $$$ $$$ $ $$ $ $$$ $$$$

Projects in this color are in response to “I Hate Red Tape” comments received

Project Value:

$ = 150K

$$ = 151K – 300K

$$$ = >300K

Relationship:

Strong –

Future –

Impact –

9

Information

Information

Management

Management

Metrics – Link to Current

IM Six Sigma Projects


System

A

vailability

& P

erform

anc

e

Project B

udg

et &

Sche

dule

Asset

Utilization/R

e-use

Application

Effectiven

ess

Rates

Sec

urity

Custom

er

Satisfaction

Help Desk/Call Center

Knowledge Management

PC Disposition

Employee Portal

Collaboration

Security

Firewall Exceptions

HR/Payroll Data Archiving

$$

$$

$$$

$$$

$$$

$$

$$$

$

Projects in this color are in response to “I Hate Red Tape” comments received

Project Value:

$ = 150K

$$ = 151K – 300K

$$$ = >300K

Relationship:

Impact –

11

Information

Information

Management

Management

Str

en

gth

of

Re

lati

on

sh

ip (

1,3

,9)

Imp

ac

t #

Ga

p #

(1

- 5

)

Ov

era

ll I

mp

ac

t/G

ap

# Str

en

gth

of

Re

lati

on

sh

ip (

1,3

,9)

Imp

ac

t #

Ga

p #

(1

- 5

)

Ov

era

ll I

mp

ac

t/G

ap

# Str

en

gth

of

Re

lati

on

sh

ip (

1,3

,9)

Imp

ac

t #

Ga

p #

(1

- 5

)

Ov

era

ll I

mp

ac

t/G

ap

# Str

en

gth

of

Re

lati

on

sh

ip (

1,3

,9)

Imp

ac

t #

Ga

p #

(1

- 5

)

Ov

era

ll I

mp

ac

t/G

ap

# Str

en

gth

of

Re

lati

on

sh

ip (

1,3

,9)

M a n a g e C lie n t

R e la t io n s h ip s5

D e live r F la w le s s

C lie n t S o lu t io n s

P e rfe c t

P ro je c t

E x e c u t io n

4 9 3 6 3 1 0 8 1 4 0 3 1 2 3 3 6 9 3 6 4 1 4 4

Im p ro ve

P ro d u c t ivit y3 .5 9 3 2 3 9 5 1 3 .5 0 9 3 2 4 1 2 6

M in im iz e C o s ts

o f B u s in e s s

Im p ro ve

R e s o u rc e

A llo c a t io n

4 1 4 2 8 1 4 0 3 1 2 3 3 6 1 4 4 1 6 3

D o u b le D ig it

E a rn in g s &

C a s h F lo w

G ro w th

W A N Im p r o v e m e n ts ($ $ $ );

IS S R F ($ $ ); P e r f . T e s t in g

($ $ )



($ $ )


IS S e r v ic e D e liv e r y ($ $ $ );


($ $ )

Info

rma

tio

n M

an

ag

em

en

t

A s s e t U t i l iz a t io n /R e -U s e

S y s te m A va ila b i l i t y &

P e rfo rm a n c e S e rvic e U s a g e

P ro je c t B u d g e t &

S c h e d u le A p p lic a t io n E ffe c t ive n e s s

S e c u rit y ($ $ $ ); H e lp D e s k

($ $ ); F ire w a ll E x c e p t io n s

($ )

E m lo y e e P o rta l ($ $ $ );

C o lla b ra t io n ($ $ $ ); K M

($ $ $ )


C o lla b o ra t io n ($ $ $ ); K M

($ $ $ ); H e lp D e s k ($ $ )

W A N Im p r o v e m e n t s ( $ $ $ ) ; IS

S e r v i c e D e l i v e r y ( $ $ $ ) ; IS

S R F ( $ $ ) ; P e r f . T e st i n g ( $ $ ) ;

IM D a sh b o a r d ( $ ) ; T E D S

E n r o l l m e n t ( $ )


P e r f . T e s t in g ($ $ )



($ $ $ ); H e lp D e s k ($ $ );

H R /P a y ro l l D a ta A rc h ($ )



($ $ $ ); H e lp D e s k ($ $ );

H R /P a y ro l l D a ta A rc h ($ )

P C D is p o s it io n ($ $ )



($ $ )


IS S e r v ic e D e liv e r y ($ $ $ );


($ $ ); IM D a s h b o a r d ($ )


P e r f . T e s t in g ($ $ ); IM

D a s h b o a r d ($ )



($ )



($ )


C o lla b ra t io n ($ $ $ ); K M

($ $ $ ); H R /P a y ro ll D a ta

A rc h ($ )

IM M e t ric C a te g o rie s

VOC

High Level Priorities

(Quantified Gap

Analysis)

Map Projects

Prioritize & Select

Projects

Dashboard

Define

Measure

Analyze

Improve

Control


59

Six Sigma on-line resources keep

employees informed and knowledgeable.

Communication -- On-Line Resources

Website StartIt! Green Belt Monthly

Program Management Primer Newsletter

Mission Systems


60

Project Plans

Project Results

Organizational

Training & Tools

Industry/Government

Standards

Organizational

Policies & Processes

Process Improvement

Communications Sharing best-practices Measurement & dashboards

Metrics Database

Organizational Performance

Project Performance

Project

Schedules & Budgets

Institutionalizing Our Improvements


61

Summary

Six Sigma can provide powerful methods and tools for

process improvement

– Many companies have already seen great success

Six Sigma supports meeting CMM/CMMI goals

– Important to coordinate the efforts and share infrastructure

Success depends on applying fundamental concepts of

business management, quality management, change

management, and process management


62

References – Six Sigma Binder, Robert V., “Six Sigma: Hardware Si, Software No!”,

http://www.isixsigma.com

Card, David, “Sorting Out Six Sigma and the CMM”, IEEE Software, May 2000.

Harry, Mikel J., “The Vision of Six Sigma: A Roadmap for Breakthrough.” Phoenix, Arizona: Tri Star Publishing, 1997.

Harry, Mikel, J. and Schroeder, Richard, “Six Sigma, The Breakthrough Management Strategy Revolutionizing The World's Top Corporations”, Doubleday, December 1999.

Rath & Strong, “Six Sigma Pocket Guide,” Rath & Strong Management Consultants, Lexington, MA, 2001.

Siviy, Jeannine, et al, “Software Technology Review (Six Sigma Section)“, http://www.sei.cmu.edu/str/

Smith, Larry R., “Six Sigma and the Evolution of Quality in Product Development,” Six Sigma Forum Magazine, Vol. 1, Issue 1, Nov 2001 - www.asq.org/pub/sixsigma/evolution.html#fig2back

Websites

International Society of Six Sigma Professionals, http://www.issp.com

iSixSigma, http://www.isixsigma.com

Six Sigma Exchange, http://www.sixsigmaexchange.com


63

References - Other CMMI Product Development Team, “CMMISM for Systems Engineering/Software

Engineering, Version 1.02, Staged Representation”, CMU/SEI-2000-TR-030 (and other versions), November 2000, http://www.sei.cmu.edu/pub/documents/00.reports/pdf/00tr030.pdf

Hefner, Rick, “Using a Process Database to Facilitate Transition to Level 4”, International Conference on Applications of Software Measurement, 2002.

Kimbrought, Tom and Levine, Linda, “The IDEAL Model Transition Framework, Speeding Managed Change”, http://www.sei.cmu.edu/ideal/ideal.present/

Kotter, John P., “Leading Change: Why Transformation Efforts Fail,” HBR, Mar-Apr 1993, pp. 59-67.

Paulk, M.C., B. Curtis, M.B. Chrissis, and C.V. Weber, “Capability Maturity Model for Software, Version 1.1”, CM/SEI-93-TR-24 and CMU/SEI-93-TR-25. Pittsburgh, Pennsylvania: Software Engineering Institute, Carnegie Mellon University, 1993.

Purcell, Leitha, “Experiences Using Six Sigma in a SW-CMM® Based Process Improvement Program”, American Society for Quality Six Sigma Conference, January 2001.

Schaffar, Robert H. and Thomson, Harvey A., “Successful Change Programs Begin with Results,” HBR, Jan-Feb 1992, pp. 80-89.

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