Improving Process & Maximizing Benefits Mr. Mrutyunjay D Burli (Jay) – QAI Asia Integrated Way The...

Improving Process

& Maximizing Benefits

Mr. Mrutyunjay D Burli (Jay)– QAI Asia

Integrated Way

The Current Trend

April 19, 2023 Slide: 2

Presenter

• Mr. Mrutyunjay D Burli (Jay)– QAI Process Consultant– Contact:

• Mr. Mrutyunjay (Jay)

• QAI China (Based in Shenzhen, China)

• [email protected]; [email protected]

Model Based Process Improvement


Quality Leverage Points

Major determinants of product cost, schedule, and quality

PEOPLE

PROCESS TECHNOLOGY


Which Model to Select

• ISO, • CMM/CMMI, • Six Sigma, • PCMM• TQM• Lean • …

To be able decide which route / direction to take…Should know the destination…else any road is ok..

(Chinese Proverb)


Why Model Based PI Failed in Some Orgs

After spending many years of

effort


What We Have Learned from the Failures• It’s not just model issue …

• It’s our misunderstanding on the models

• It’s also our wrong judgment in selecting suitable model / method

• It’s also our incompetence to operate process improvement to enable business improvement

To be successful in achieving the set objectives

It is like,

Choosing the right “HORSE” and right “JOCKEY”


The Key is the “People”

“It is not the model that’s as important as your ability to take a model and create value for your organization.”

- Nabil AbdelMalek, Quality VP,

J.P. Morgan and Co.


The Key is the “People”…

“I have been enthusiastic about the CMM all along, but it fails when it’s imposed from the top without low-level support.”

-Edward Yourdon

“As other sources of competitive success have become less important, what remains as a

crucial differentiating factor is the organization, its employees, and how it works.”

-Jeffrey Pfeiffer

Business Driven Process

Improvement in an Integrated

Approach


The Triad


PCMM

CMM/CMMI

Others

Six Sigma

ISO

Disparate improvement efforts

PCMM

CM/CMMI

Other

s Six S

igm

a

Process

Management

ISO

Integrated improvement efforts

Integrate Our Process Improvement Efforts


Shift from Model Compliance to Business Driven

OLD: External compliance frameworks & standards

drove the development of stove-piped documentation

infrastructures; as a result, internal business needs &

req’ts have been adversely impacted.

Process XYZ

Performance 7 Business model based

NEW: Internal & external business needs drive

development of a set of enterprise processes; in

turn, through design, the enterprise processes will

meet all external frameworks & standards.

Document-based


Business Goal Driven PI


CustomerCustomer

LearningLearningAnd And

GrowthGrowth

FinancialFinancial

Changing

OperatingSupporting

Optimizing

Set Business Goal by Referring to the Balanced Scorecard

Internal Internal Business Business ProcessesProcesses


Redesign the Existing Process Based on CMMi and Business

Existingprocess

Gap Analysis

1

2

3

4

5

CMMi

PAT

EPG

Business-basedimprovement opportunities

New Process Design


CoreProcess

Systems Integration

Job Aids

Tooling

InstallationSupport

Policies

Training

Processguide

Changerequestsystem

Whole productsolution

Develop Whole Product Solution

PAT

EPG

ExistingprocessNew Process Design

SOFTWARE PROJECT PLANNING,TRACKING AND OVERSIGHT

A S o f t w a r e P r o j e c t L i f e C y c l e P e r s p e c t i v e

Orgname Systems Development Center

Version 1.0October 1997

Guidebookfor users of the process

To develop whole product solution, we need to know ‘how’.Six Sigma can answer ‘how’.


What is Six Sigma?Six Sigma: A best-in-class change strategy for accelerating improvements in processes, products, and services

What Six Sigma is:

Method/tools

Mindset/way of thinking

A way of doing business


6 DMAIC ProcessDevelop Charter and

Business Case

Map Existing Process

Collect Voice of the Customer

Specify CTQs / Requirements

Measure CTQs / Requirements

Determine Process Stability

Determine Process Capability

Calculate Baseline Sigma

Refine Problem Statement

Identify Root Causes

Quantify Root Causes

Verify Root Causes

Institutionalize Improvement

Control Deployment

Quantify Financial Results

Present Final Project Results and Lessons Learned

Close Project

Select Solution (Including Trade Studies, Cost/Benefit Analysis)

Design Solution

Pilot Solution

Implement Solution

Define

Measure

Analyze

Improve

Control

DMAIC = Define, Measure, Analyze, Improve and Control


Aligning the 6 DMAIC Process with the CMMI

Define

Measure

Analyze

Improve

ControlLevel 4

Establishing Capability

Objectives

Data

Baselines

Models

Level 5 Improving Capability

Problems

Root Causes

Improved Processes

Improved Capability


CMM(I) and PCMM

CMMI PCMMLevel of Maturity Project Oriented - Business Focus Organizational Oriented - Internal Focus

Level 2 Project Management Discipline People Management DisciplineLevel 3 Organizational Common Process Focus Competency Focus

Level 4 Quantitative Management of ProcessesCompetency Integrations / linkage between the Process - People

Level 5Continual Improvement on the Process and Technology

Continual Improvement on Workforce Practices

Benefits Observed


Process Improvement Benefits

CMMI

The Practical Implications of Process Improvement Program

Dollars in….



The purpose of investing in process improvement is,

To earn returns!

Returns??We all know….

ROI = Net Income / Total Investment


HOW???


One of the approaches is..

Processing CostsRe-work CostsCost of Errors

Raw Material CostsSupport Costs

TARGET 1

TARGET 2 Increased Sales

TARGET 3 Faster Cycle Time

TARGET 4 Improved Quality

TARGET 5 Increased Productivity

Reduction of Costs


How to evaluate the Benefits – BenchmarkingMeasure different

parameters

Productivity

Defect Density

Cost

Schedule

Effort

Set the internal improvement

action plan and improve the

processes

Analyze the current and best practices and performance

Compare current

practices and performance

within the industry

Analyze the improvement

needed if any and set action plan for

improvement

Collect and Analyze (OCB)

Internal Performance


CMMI® Benefits - QAI’s Client-A

COMPANY-A 98-99 99-00 00-01Staff Strength 120 150 180Maturity Level 3 4 (not assessed) 5

Development Projects% deliveries on/ before time 85% 85% 96%Bugs / Feature (Field Testing) 0.06 0.03 < 0.01Average Cost Overrun 38% 3% -5%

Maintenance ProjectsAverage Cycle Time to Fix (Days) 32 13 10% Bad Fixes/ Regressions 12% 4% <1%Manpower Load Imbalance (more than 10% overtime or idle time)44% 33% 21%Backlog Bugs Average Days 23 20 16Effort to Fix/ Complexity Index 4.2 3.1 3

Migration ProjectsEffort/ Module 1.8 0.65Delivery Before Time 65% 96%Defects Delivered/ 100 Modules 3 < 1


CMM® Benefits - QAI’s Client – B

COMPANY-B 97-98 98-00 00-01Staff Strength 250 520 820Maturity Level 2 3 5

Development Projects% delayed deliveries 55% 30% 6%Delivered Defect Density Index (defects/ 100 FP) 12 8.2 1.6Productivity FPC/ MM 20 30.6 28.1

Maintenance Projects% Bad Bug Fixes 3.40% 1.30% 0.10%Effort / Weighted Bug 16 Hours 10 Hours 6 HoursAverage Days to Solve [Severity 1] < 1 < 1 < 1Average Days to Solve [Severity 2] 16 14 8Average Days to Solve [Severity 3] 65 45 12


CMM® Benefits – Defect Detection Improvement

Source: CMI/SEI-96-HB-002

Req’ts. Design Code FunctionalTest

SystemTest

FieldUse

Where Defectsare Introduced

10% 40% 50%

Relative Costto Fix

$1 $1 $1 $6 $12 $100

RelativeCostfor100

Fixes

Level1

0% 0% 2% 15% 50% 33% $4,000

WhereDefects

Level2

0% 0% 3% 30% 50% 17% $2,500

AreDetected

Level3

0% 2% 20% 38% 32% 8% $1,400

Level4

3% 12% 30% 30% 20% 5% $1,000

Level5

5% 20% 40% 20% 10% <5% $800

Source: CMI/SEI-96-HB-002Source: CMI/SEI-96-HB-002

Req’ts. Design Code FunctionalTest

SystemTest

FieldUse

Where Defectsare Introduced

10% 40% 50%

Relative Costto Fix

$1 $1 $1 $6 $12 $100

RelativeCostfor100

Fixes

Level1

0% 0% 2% 15% 50% 33% $4,000

WhereDefects

Level2

0% 0% 3% 30% 50% 17% $2,500

AreDetected

Level3

0% 2% 20% 38% 32% 8% $1,400

Level4

3% 12% 30% 30% 20% 5% $1,000

Level5

5% 20% 40% 20% 10% <5% $800


[Herbsleb 94]

Other Observed Benefits of Process Improvement

• Cited by Hughes, Tinker AFB, Schlumberger, Raytheon– improved working conditions

– improved employee morale

– less turnover

– fewer overtime hours

– better and increased communication

– decreased risk

– increased customer satisfaction

Summary


The Bottom Line 1

“Process improvement should be done to help the business —not for its own sake”.

“In God we trust, all others bring data.” - W. Edwards Deming


The Bottom Line 2

• Improvement means different things to different organizations:– What are your business goals?

– How do you measure progress?

• Improvement is a long-term, strategic effort:– What is the expected impact on

the bottom line?

– How will impact be measured?


PCMM

CMM/CMMI

Others

Six Sigma

ISO

Disparate improvement efforts

PCMM

CM/CMMI

Other

s Six S

igm

a

Process

Management

ISO

Integrated improvement efforts

Integrate Our Process Improvement Efforts


BSC & CMM(I) & Six Sigma & PCMM

• The balanced scorecard can help organizations to systematically set enterprise business goals

• CMMI focuses on "what" process infrastructure is needed for the organization;

• Six Sigma narrows in on "how" totactically solve particular problems (or design new products) – For some organizations, Six Sigma is an enabler of CMMI and for others, it is

a toolkit within CMMI.

• PCMM help organizations in attracting, motivating, and retaining talented technical / non technical staff


The Problem of PI without Integration

* Problem solving is like digging for treasure in a field

* If a hole already exists, our inclination is to dig it deeper

* The deeper the hole, the more difficult it is to see what’s happening in other parts of the field

* If someone else comes along, we encourage them to jump in the hole with us

* The overall effect is called PSYCHOLOGICAL INERTIA


Any Questions?


I thank all present here for

your valuable time

QAI China

RM. 1211, No.498 Guoshoujing Rd, Shanghai Zhangjiang Hi-Tech Park, Pudong New Area. Shanghai, ChinaZip: 201203Tel : +86-21-38954510-5186TeleFax : +86-21-51314155Email : [email protected] [email protected]

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