Indian IT- Quality Journey 18/11/20041 Software Factories In India - Why & How they adopt CMM/CMMI...

18/11/2004 1Indian IT- Quality Journey

Software Factories In India -

Why & How they adopt CMM/CMMI models

i-flex consulting www.iflexconsulting.com18/11 2004


Agenda

• Indian IT Industry – Back ground• The Recipe for Success• The Value Proposition• Why Process?• Need for a Model Based Process Improvement..• Why CMM & CMMI?• Some Unique Implementation Methods• Benefits..• Q&A..


Indian IT Industry – The Background

• Software Industry Turnover of Rs. 337 billion (US$ 7.42 billion) in 2003-04

• Growth of 11 % over previous year

• Domestic Market revenue Rs. 154 million (US$ 3.37 billion)• Domestic Market Growth rate is 14.8%

• Several Indian IT companies listed on the NYSE and NASDAQ

• Export market expected to grow by 30% by Mar 2005


Market Composition

• Over 3500 IT Services Organizations• Successful Product Companies (eg,. i-flex)• Leading companies have setup development centers

– SAP , Adobe, Microsoft, Baan, Quark, Intel, HP, Lucent….• Software Exports to-

Others0.5%

USA63%

Japan3.5%

Europe22%

Asia Pac11%

Source:www.nasscomm.org & Dataquest


Ingredients of Indian IT success

• Very Strong Process Focus• Aligning Business goals with Process Improvement goals• Continuous Improvement is a way of life• Controlled adaptation of new technologies• Ability to Train & integrate Human Resources (500,000 skilled workers)

through planned training programs • Ability to scale-up against ever-growing Business requirements (250 of

Fortune 500 Outsource to India!) with a well established Process framework

• Large presence of leading “quality conscious” multi-national companies (e.g. i-flex, Citigroup, Hewlett Packard, Motorola, Lucent, Samsung, British Telecom)

• Presence of more than 10 SPINs (Software Process Improvement Networks) to share Industry Best Practices


PEOPLE

PROCESS TECHNOLOGY

Major determinants of software cost, schedule, and quality performance

Source:: SEI

The Recipe for success..


Procedures and methodsdefining the relationship

of tasks

Tools andequipment

Peoplewith skills,

training, andmotivation

PROCESS

AB

CD

Source:: SEI

Definition of Process..

The means by which people, procedures, methods, equipment, and tools are integrated to produce a desired end result.


Common Points In Process & Quality Management

• Enabling improvement is a management responsibility• Improvement focuses on fixing the process, not on

blaming the people• Improvement must be measured and periodically

reinforced• Improvement requires constancy of investments,

rewards, and incentives• Improvement is a continuous process


Why use a Process Improvement Paradigm?

• Characterize the current state of software practice• Set objectives and priorities for process improvement• Establish a plan for process improvement and

technology insertion• Assign dedicated resources• Assess progress against improvement goals• Guidance on Process Improvement• Reference to proven Best Practices across the industry• Provides support for Benchmarking • Provides support for external rating• Supports inter/intra organization maturity comparison


Adaptation History by India IT Companies

In 1970’s - Quality ControlIn 1970’s - Quality Control

In 1980s – Quality Assurance In 1980s – Quality Assurance

In 1985’s – IEEEIn 1985’s – IEEE

In 1994 – QMS & ISO 1994In 1994 – QMS & ISO 1994

In 1995 – Sw-CMM In 1995 – Sw-CMM

In 2000 – Six Sigma, ISO 2000In 2000 – Six Sigma, ISO 2000

In 2002 – CMMIIn 2002 – CMMISMSM

Over 200+ Over 200+ Indian IT Indian IT

Organizations Organizations have CMM / have CMM /

CMMI Quality CMMI Quality CertificationsCertifications


CMM/CMMI - Simple Concepts

• Evolution is possible and takes time• There are distinguishable stages of evolution• Evolution implies that some things must be done before

others• Maturity will erode unless sustained• A step-by-step approach to process maturity• Starts at initial Level 1• Goes all the way to Level 5 - the highest• maturity• Higher levels can be attained only by attaining all the lower levels


Process maturity profile of Indian Companies..

Quality Accreditations Quality Accreditations No. of .Organizations No. of .Organizations

SEI CMMISEI CMMISMSM Level 5 Level 5 1515

SEI CMM Level 5SEI CMM Level 5 7070




PCMM Level 5 PCMM Level 5 77

ISO 9001: 2000 ISO 9001: 2000 7575

ISO 9000ISO 9000 170170


India 333

China 152

UK 133

France 124

Japan 113

60% of the CMM/CMMI certified companies are from India!

Number of Appraisals Reported to the SEI by Country (top 5)

18/11/2004 15Indian IT- Quality Journey 3

Why people are using CMMI...

should not be

• We have to be Level 3• Because we are told to• So we don’t get burned by Audit• Everyone else is doing it • If we don’t, we will be outsourced• Somebody told me it’s important


Why CMM / CMMI? - The real drivers..

• Cost effective - Export Orientation • Need to meet Global customer demands & growing

business needs • Need of Controlled & well established Process to meet the

rapid business growth • Need to Manage technology changes • Continuous Improvement• Rigorous assessment methodology by independent

Assessors• Structured Approach to Process Maturity• Based on Industry best practices

• Widely acclaimed model


CMM/CMMI Implementation Metrics

• US $ 500 - 2000 per software engineer spent annually on process improvement

• Up to 67 % productivity gain (LOC per unit of time)• Up to 25 % increase in proportion of defects found pre-

test• Up to 25 % reduction (yearly) in time to market• Up to 94 % reduction per year in field error reports


Operating at Highest Process Maturity

Operating at Highest Process Maturity

Ability to integrate large teamsAbility to integrate large teams

The mean annual growth in productivity over the last five years has been 5 percent

The mean annual growth in productivity over the last five years has been 5 percentThe mean annual

reduction in defect density in the same period has been 15 percent

The mean annual reduction in defect density in the same period has been 15 percentThe price of non-

conformance has almost halved in the last four years

The price of non-conformance has almost halved in the last four years85 percent of our investments

in process improvement are recovered through productivity and defect density improvements alone

85 percent of our investments in process improvement are recovered through productivity and defect density improvements alone

Some Sample Results & Achievements by Indian Companies


Before Before AfterAfter

Unrealistic deadlines were set. Overstay a common feature

Realistic scheduling quantitatively based on productivity & size

Projects were following own standards & processes they found suitable

Standardized processes for each projects with proper tailoring needed

Each project measured its required information for its needs

Organization wide metrics captured & monitored in line with organization goals

Each Project having its own targets based on its experience & customer commitments

Project sets achievable targets based on Org-Baseline, its own capability analysis & in agreement with customer commitments

Problems were analyzed through discussion Problems are identified & resolved based on quantitative analysis using the control charts & pareto analysis

Training was provided as on required basis Organization wide resource skills mapped to required skills. Trainings plan in advance & provided as schedule

Advantages of CMM/CMMI..


How Indian IT Companies have adopted CMM/CMMI..

• Compelling reasons to differentiate as a quality vendor• Involvement of Special IT Task Force• Through SPINs & other Knowledge sharing forums• Process maturity as a way of life• Increased use of automation • Structured & continuous training on Process & Quality

framework (CMM, CMMI)


(STANDARDS & PROCEDURES)(STANDARDS & PROCEDURES)PROCESS & QUALITY IMPROVEMENT PLANNING

PROCESS & QUALITY IMPROVEMENT PLANNING

USE OF MODELSUSE OF MODELS

CMMI

ISO

CMM

ASSESSMENTS/APPRAISALS)

ASSESSMENTS/APPRAISALS)

PROCESS ROLL-OUT

The Process Model


Path to Maturity..


Develop Transition

Plan

Training

Class C Appraisal

Develop PQIP

Class B Appraisal

Process Deploymen

t

Process Developme

nt

Class A Appraisal

Revise Plan

Revise PQIP

CMM to CMMI-Transition Methodology


Some good Adoption Techniques..

• Project Kick-off meeting• End-to-end Automation of Process workflow• Process Change Control Board (PCCB)• Technology Change Control Board (TCCB)• Software rating • Defect Prevention Control Board (DPCB)• Use of multiple methodologies (Waterfall, Data

Warehousing development, Product Development etc,.)• Corporate Metrics program


Promotr Management Portal


Reusable Components- Processes- Templates, Guides

Metrics Database

Project Closure

Baseline Report

QuBase

An Automated Process Enactment Environment


Requirements Management (Work flow)

Analyze and identify Requirements Document

Requirements Establish bidirectional traceability and identify

inconsistencies

Verification by SQA and Peer

Sign-off and Baseline

Manage Changes – Requirements Status and control baseline

Verification by Sr.Management

Obtain commitments from relevant project participants

Monitor and control with appropriate measures

ProjectPlanning


Project Planning (Work flow)

Develop Project Plan Verification by SQA and Peer

Sign-off and Baseline


Obtain commitments from relevant Stakeholders

Establish WBSEstimate

•Attributes of Work Products •Effort, Cost and Resources •Establish Budget and Schedule

Identify and Analyze Risks Identify and plan Stakeholder involvementIdentify External commitments Deliverables

Project Manager

Verification by other groups

Feed back


Project Monitoring and Control (Work flow)

Monitor Project Plan

Identify issues, Take Corrective actions and

track to closure


Obtain commitments from relevant Stakeholders and other groups

Monitor….

•Actual values of planning parameters •Cost, Effort and Schedule•Attributes of Work products•Resources •Commitments and milestones•Risks •Project data •Stakeholder involvement

Project Manager

Verification by SQA


Supplier Agreement Management (Work flow)

Select Product and Vendors

Evaluate products and Vendors


Obtain commitments from relevant Stakeholders and other groups

Select …Products and VendorsAcquisition methods Critical requirements

Project

Verification by SQA Develop acquisition

and Transition plan


Measurement and Analysis(Work flow)

Measurement plan Measure, Analyze and Report for decision

making


Obtain commitments from relevant Stakeholders and other groups by informing measurement status

Establish ..

Measures Objectives Data collection, analysis, storage and reporting

Project

Verification by SQA


Process and Product Quality Assurance (Work flow)

Identify non-compliances and Report


Objective evaluation of quality assurance activities

Quality Assurance

Objectively evaluate

Ensure resolution of non-compliance issues

Maintain records of quality assurance

activities

• Processes • Procedures • Standards• Work products

• Services


Configuration Management (Work flow)

Identify Configuration Items

Establish Configuration Management System


Inform to relevant Stakeholders and other groups about the status of Configuration items

Maintain integrity of baselines

Project Manager

Establish Baselines and

Track Changes Conduct Baseline audits

and Report Status


Decision Analysis and Resolution (Work flow)

Guidelines for Decision

Analysis and Resolution

QuBaseQuBaseEvaluation Criteria

Identify Alternative Solutions

Identify DAR Team

Select Appropriate

Solutions

Select Evaluation Methods

Evaluate Alternatives

Document Solutions and

Rationale

PMOCustomer

CRMProduct Engineering

PQMGSQA


Benefits…

• Strong Quality and IT processes • Knowledge sharing • Establishing learning Organizations• Controlled Processes to meet global demands • Increased Client satisfaction • Increased efficiency • Cost effective services and solutions • Established effective communication channel • Transparent Processes – Vendor Management • Enhanced risk management and project management • Increased awareness on Process culture


Benefits to Customer

• Faster delivery• Higher reliability• Reduced defect density• Better stability of products• Easy maintainability• More predictable performance• Better support


What global business leaders say..

• "A truly global company will be one that uses the intellect and resources of every corner of the world. India is a developed country as far as intellectual capital is concerned. The opening of (offshore) development centers mark a new level of commitment by GE in india." - Jack Welch, General Electric

• "We are expanding our presence in India to take advantage of the ample research and development talent available...our Global Development Centre is a critical component of our future success." - John Chambers, CISCO Systems

• "Three years ago, during my visit to India, the country was emerging as an IT superpower.Today,the country is handling the most sophisticated projects in the world...I am impressed with the talent we have in our India Development Centre and the quality of software being developed." - Bill Gates, Microsoft


Thank youThank you

Contact: Contact:

G. R. Sivaramakrishnan G. R. Sivaramakrishnan

SCAMPI Lead Appraiser SCAMPI Lead Appraiser

E-mail : [email protected] : [email protected]

i-flex solutions Ltd.i-flex solutions Ltd.

SEI-Transition Partner

Bangalore, India

Telephone:+91-80-5759-6515

Indian IT- Quality Journey 18/11/20041 Software Factories In India - Why & How they adopt CMM/CMMI...

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Transcript of Indian IT- Quality Journey 18/11/20041 Software Factories In India - Why & How they adopt CMM/CMMI...