Business Strategy CMMI for small settings 1 - Automotive SPIN · Have you ever heard of CMMI? How...

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Business Strategy

CMMI® for Small Settings

Fernando MandelliSEI Authorized SCAMPI Lead Appraiser

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Agenda

�CMMI in a Nutshell� Improving Processes in Small Settings�Business Case

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What is CMMI

CMMI Provides a set of Best Practices that address D evelopment,Acquisition and Maintenance activities that cover th e product Life Cycle from conception through delivery and maintenance an d services

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Improving Processes in Small Settings (IPSS)

WHAT IS “SMALL” ANYWAY?

Which of the following criteria are used to define small settings?

�number of employees �sales �investment level �total net assets

which of the following is considered the maximum size to be called a small business?

�250 employees �100 employees �50 employees �10 employees

What about small projects?

Some projects are considered small when their duration is between one day and 12 months.

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Improving Processes in Small Settings (IPSS)

From a practical perspective, we consider small to be any business unit for which the typical activities and approaches of process improvement could cost more than ten percent of the annual operating budget. Ten percent is something of an arbitrary number, but in talking to many organizations about their overall costs related to process improvement, this seems to be a “break point” beyond which it’s difficult for an organization to justify the expense without a strong, usually external, incentive.

WHAT IS “SMALL” ANYWAY?

< 100 People

< 50 People

< 20 People

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Improving Processes in Small Settings (IPSS)

Some of the goals cited by small businesses that ha ve implemented Process improvement include the following [Zemel 2006, Srivastava 2006a]:

� shortened time to market� promotion of growth� improved product quality� reduced development costs� readiness for business change

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WHY PROCESS IMPROVEMENT ISCHALLENGING FOR SMALL SETTINGS

�COST In small businesses, process improvement usually represents a larger portion of revenue.

�SHORTAGE OF HUMAN RESOURCEif you’re a small setting, and if your staff is already working at maximum capacity, where do you find the time or the resources?

�SHORTAGE OF NEEDED SKILLmany small settings have little experience with quality concepts, which are foundational to process improvement.

�PARADOX OF CHOICEHave you ever heard of CMMI? How about Six Sigma? COBIT? ITIL?Sarbanes-Oxley? EFQM? ISO/IEC 12207? ISO 9000? SPICE?

�UNDERSTANDINGS THE BENEFITSmany small settings have little experience with quality concepts, and thus, with process improvement. So why do it? What are the benefits?

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Timeline of Small Settings Work at SEI

How-to guidance for establishing and sustaining process improvement; independent of the process model or standard used

How-to guidance for establishing and sustaining process improvement; independent of the process model or standard used

SEPG 2008 Presentation

Phase 1: Building a Prototype of the Field Guide

Phase 1: Building a Prototype of the Field Guide

Phase 2: Completion of content with contributions fromcommunity members from around the world

Phase 2: Completion of content with contributions fromcommunity members from around the world

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What’s Needed for Model-Based PI?

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Components of The IPSS Field Guide

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Components of The IPSS Field Guide T4.5.1 Developing definitions of local processes-in-use

�Purpose of Task�Considerations Before You Begin�Typical Goals of an Organization Performing the Task�Typical Inputs/Entrance Criteria�Typical Roles Involved�Typical Steps to Accomplish Purpose�Possible Techniques to Support the Task�Typical Expected Outcomes�Typical Exit Criteria�Typical Progress Measures�Typical Success Measures�Typical Critical Success Factors�Useful References�Example Artifacts from Performing this Task�Applicability Differences between Small Businesses, Small Organizational Units, and Small Projects�Related Topics in IPSS Competencies

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Business CaseCompanies:

Analytical Services, Inc. (ASI) Cirrus Technology, Inc. (CTI)

Both pilots were involved in product developmentBoth had recent experience with ISO 9000Employees: 200 (around)Pilots: one-person project to a 22-person project

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Lesson Learned

�CMMI adoption enhanced and improved QMS�Natural follow-on to ISO and provides continuous improvement�Improved ability to organize and communicate status of projects to customers and other stakeholders�Addresses customer projects with processes�Reduced training time for new employee�Prevented requirements creep and ensured on-time and below budget project completion�Supports company objectives�Provides path for taking the company to the next level

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CMMI® - Capability Maturity Model Integration

• www.sei.cmu.edu

• http://www.sei.cmu.edu/cmmi/adoption/ques-ans.html

• http://www.sei.cmu.edu/cmmi/

• http://www.sei.cmu.edu/cmmi/results.html

• http://sas.sei.cmu.edu/pars/

• http://www.sei.cmu.edu/iprc/ipss.html

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Business Strategy

CMMI® for Small Settings Thanks