1/ Fall 2008 / EDS INTERNAL 11 April 2007 CMM, ISO, Sarbanes Oxley CMM vs. ISO David S. Craft CIRM,...

1 / Fall 2008 / EDS INTERNAL

11 April 2007

CMM, ISO, Sarbanes Oxley

CMM vs. ISODavid S. Craft CIRM, PMP

Engineering & Manufacturing Services

2 / 10 April 2007 / EDS INTERNAL

11 April 2007

CMM vs. ISO, Sarbanes Oxley

Agenda

Who Am I - EDS

Software Systems Development

ISO

CMM

Sarbanes Oxley


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Who Am I

VISTA Volunteer

Industrial Engineer

Chief Industrial Engineer

Manager Production Planning & Control

Inventory Control ManagerShift Supervisor

Materials Manager

ConsultantProject Manager

Team Leader

Managing Consultant Engineering and Manufacturing ServicesApplications Service Delivery EDS

Internal ISO Auditor


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Process

To Develop Software and Systems You Need A Process

• Anything goes

• Defined

• Structured


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Process, people and technology are the major determinants of project cost,

quality and schedule.


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Common Misconceptions

I don’t need defined processes I have:– Really good people

– Advanced Technology

– An experienced manager

Defined Processes:– Interfere with creativity

– Equals bureaucracy + regimentation

– Isn’t needed when building prototypes

– Is only useful on large projects

– Hinders agility in fast moving projects

– Costs too much


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Why We Need Standard Processes

Estimating (History)• Scope

• Cost

• Time

• Tools

Deliver the Product to Estimate (Visibility)• Time

• Cost

• Quality

Handling/Controlling Changes• Planned

• Unplanned

• Scope Creep


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How to Achieve Quality Processes

ISO

CMM


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ISO – CMM Differences

ISO9001:2000 CMMIInternational standard, applies to all types of organizations, supports both product and service oriented organizations

Written specifically for software development companies

A brief document – about 25 pages long, identifying the minimal requirements for a quality system

A detailed document – over 500 pages long

Emphasizes on a management of continuous improvement process, based on the PDCA (Plan-Do-Check-Act) model

Emphasizes on achieving “maturity” and improving its process continuously

One level of standard. The standard is based on recommendation

Defines 5 maturity levels of the organization, covering 25 process areas (PAs)

Netta Dotan, Quality Assurance & project management, Ronkal Office Technologies


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ISO – CMM Differences – My View

ISO 9000 SW-CMMIOutwardly focused Inwardly focused

Minimum requirements with implied continuous improvements

Explicit continuous quality improvement

Registration Document No documentation

Certification audit for a 50 employee organization will be executed by -12 auditors during one day

Certification audit for a 50 employee organization will be executed by 4 auditors during 4-5 days

Netta Dotan, Quality Assurance & project management, Ronkal Office Technologies


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Both require the organization be explicit about what their processes and quality systems are

Say what you do; do what you say

The organization records and tracks data for objective analysis

Require strong management support to succeed

Provide a structured and measured approach to quality improvement

Require an outside audit for “certification”

Both are refined/improved over time

ISO – CMM Similarities


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Meet ISO

ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards.

ISO is a network of the national standards institutes of 157 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system.

ISO is a non-governmental organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government. On the other hand, other members have their roots uniquely in the private sector, having been set up by national partnerships of industry associations.

Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society.


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What are standards?

Standards are documented agreements containing technical specifications or other precise criteria to be used consistently as rules, guidelines, or definitions of characteristics, to ensure that materials, products, processes and services are fit for their purpose.

For example, the format of the credit cards, phone cards, and "smart" cards that have become commonplace is derived from an ISO International Standard. Adhering to the standard, which defines such features as an optimal thickness (0,76 mm), means that the cards can be used worldwide.

International Standards thus contribute to making life simpler, and to increasing the reliability and effectiveness of the goods and services we use.

Last modified 2002-07-17


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The ISO 9000 and ISO 14000 families are among ISO's best known standards ever. ISO 9001:2000 and ISO 14001 (1996 and 2004 versions) are implemented by over 1,000,000 organizations in 161 countries.

The ISO 9000 family addresses "quality management". This means what the organization does to fulfill:

•the customer's quality requirements and •applicable regulatory requirements, while aiming to •enhance customer satisfaction, and •achieve continual improvement of its performance in pursuit of these objectives.

The ISO 14000 family addresses "environmental management". This means what the organization does to:

•minimize harmful effects on the environment caused by its activities, and to

•achieve continual improvement of its environmental performance.

ISO 9000 and ISO 14000 (Management Systems)


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ISO’s ImpactIn the global economy ISO 9001:2000 and ISO 14001:2004 have become thoroughly integrated

with the world economy. ISO 9001:2000 is now firmly established as the globally accepted

standard for providing assurance about the quality of goods and services in supplier-customer relations.

The positive roles played in globalization by ISO’s standards for quality and environmental management systems include the following:

• a unifying base for global businesses and supply chains – such as the automotive and oil and gas sectors

• a technical support for regulation – as, for example, in the medical devices sector)

• a tool for major new economic players to increase their participation in global supply chains, in export trade and in business process outsourcing;

• a tool for regional integration – as shown by their adoption by new or potential members of the European Union

In the rise of services in the global economy – nearly 33 % of ISO 9001:2000 certificates in 2005 went to organizations in the service sectors.


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Sector Standards Pages

Generalities, Infrastructure and Sciences 1,482 54,929

Health, Safety and Environment 684 24,062

Engineering Technologies 4,659 202,370

Electronics, Information Technology and Telecommunications

2,739 181,455

Transport and Distribution of Goods 1,835 49,435

Agriculture and Food Technology 997 22,495

Materials Technology 4,166 101,731

Construction 341 12,447

Special Technologies 138 3,416

Total 17,041 652,340

Where are the Standards (12/31/07)


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The ISO family includes:• ISO 9000:2000 – Quality Management Systems –

Fundamentals and vocabulary• ISO 9001:2000 – Quality Management Systems -

Requirements• ISO 9004:2000 – Quality Management Systems –

Guidelines for performance improvement• ISO 19011 – Guidelines on quality and/or environmental

management systems auditing.• ISO 10012 Measurement control system

Which ISO Standards


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Quality System Documentation

QualityQualityManualManual

Level 1Level 1DefinesDefines

Approach andApproach andResponsibilityResponsibility

ProceduresProceduresLevel 2Level 2DefinesDefines

Who, What, WhenWho, What, When

Work/JobWork/JobInstructionsInstructions

Level 3Level 3Answers Answers

HowHow

Records/DocumentationRecords/Documentation

Level 4Level 4Results: shows that Results: shows that

the system is the system is operatingoperating


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ISO 9001:2000 Structure

4. Quality Management System4.1 General requirements4.2 Document requirements

5. Management Responsibility

5.1 Management commitment

5.2 Customer focus5.3 Quality policy5.4 Planning5.5 Responsibility, authority,

communication5.6 Management review

6. Resource Management6.1 Provision of resources6.2 Human resources6.3 Infrastructure6.4 Work environment

7. Product realization7.1 Planning of product realization7.2 Customer-related processes7.3 Design and development7.4 Purchasing7.5 Production and service provision7.6 Control of monitoring and

measuring devices

8. Measurement, Analysis & Improvement8.1 General8.2 Monitoring and measurement8.3 Control of nonconforming product8.4 Analysis of data8.5 Improvement


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Meet CMM

CMM – Capability Maturity Model

The Capability Maturity models have been developed by the Software Engineering Institute (SEI)

The Carnegie Mellon SEI is a federally funded (US Department of Defense) research and development center that provides the technical leadership to advance the practice of software engineering so that software intensive systems can be acquired and sustained with predictable and improved cost, schedule and quality.


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SCAMPI – Standard CMMI Appraisal Method for Process Improvement


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Process AreasRequirements Management Organizational Process Definition

Project Planning Organizational Training

Project Monitoring & Control Integrated Project Management

Supplier Agreement Management Risk Management

Measurement & Analysis Integrated Teaming

Process & Product Quality Assurance

Integrated Supplier Management

Configuration Management Decision Analysis & Resolution

Requirements Development Organizational Environment for Integration

Technical Solution Organizational Process Performance

Product Integration Quantitative Project Management

Verification Organizational Innovation & Deployment

Validation Causal Analysis & Resolution

Organizational Process Focus


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EIA – Electronic Industries Alliance Interim Standard


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Staged Process Area Continuous

L2 Requirements Management Engineering

L2 Project Planning Project Mgmt

L2 Project Monitoring and Control Project Mgmt

L2 Supplier Agreement Management Project Mgmt

L2 Measurement and Analysis Support

L2 Process and Product Quality Assurance Support

L2 Configuration Management Support

L3 Requirements Development Engineering

L3 Technical Solution Engineering

L3 Product Integration Engineering

L3 Verification Engineering

L3 Validation Engineering

L3 Organizational Process Focus Process Mgmt.

L3 Organizational Process Definition Process Mgmt.

L3 Organizational Training Process Mgmt.

L3 Integrated Project Management Project Mgmt

L3 Risk Management Project Mgmt

L3 Integrated Teaming Project Mgmt

L3 Integrated Supplier Management Project Mgmt

L3 Decision Analysis and Resolution Support

L3 Organizational Environment for Integration Support

L4 Organizational Process Performance Process Mgmt.

L4 Quantitative Project Management Project Mgmt

L5 Organizational Innovation and Deployment Process Mgmt.

L5 Causal Analysis and Resolution Support

CMM Process Areas


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Examples of CMMI Impact: ROI

5:1 ROI for quality activities (Accenture)

13:1 ROI calculated as defects avoided per hour spent in training and defect prevention (Northrop Grumman Defense Enterprise Systems)

Avoided $3.72 M in costs due to better cost performance (Raytheon North Texas Software Engineering) as the organization improved from SW-CMM level 4 to CMMI level 5

2:1 ROI over 3 years (Siemens Information Systems Ltd, India)

2.5:1 ROI over 12st year, with benefits amortized over less than 6 months (reported under non disclosure)

(reported by the American Society for Quality)


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Sarbanes-Oxley ImplicationsWith its more than 300 discrete points of enforceable law, this is the most significant piece of account legislation passed since the formation of the SEC in 1933

SOX was passed with the specific intent of increasing accountability and attempting to install ethical behavior in financial reporting and business operations.

With this increase spotlight on reporting, companies must invest resources and focus into their internal control process

The Act created the Public Company Accounting Oversight Board (PCAOB) to oversee the activities of the auditing profession and mandated reforms to enhance corporate and criminal fraud accountability.

A goal of SOX legislation is to continually improve the transparency of financial and business events that can impact the accuracy and future validity of financial statements. Projects to improve processes and regular review of controls will become common-place activities as compliance evolves. Tools that simplify project completion and track status will better enable organization to cost-effectively undertake these projects.


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SOX Major Section

302 – Corporate Responsibility for Financial Reports• Requires Executives to certify the accuracy of corporate

financial reports

404 – Management Assessment of Internal Controls• Requires executives and auditors to confirm the

effectiveness of internal controls for financial reporting

409 – Real Time Issuers Disclose• Requires any material changes in financial state of issuer

be communicated quickly and with supporting data to the public


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Implications for IT

Configuration management is now a must

Change controls must be handled more carefully

Security, security, security

All system changes must be verifiable by a clear audit trail

Reduce reliance on batch processing, update data warehouse more frequently

Interfaces from any financial system must be documented and controlled

IT activities must be aligned with the company’s governance and risk policies

1/ Fall 2008 / EDS INTERNAL 11 April 2007 CMM, ISO, Sarbanes Oxley CMM vs. ISO David S. Craft CIRM,...

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