Manufactures’ Association for Information Technology (MAIT)

1. Manufactures’ Association forInformation Technology (MAIT)

2. Global Systems Technology, Inc. Introduction to the Software Engineering Institute’s (SEI) Capability Maturity Model (CMM) “Improving what you build means improving how you build” The SEI is a Federally Funded Research and Development Center Located at Carnegie Mellon University in Pittsburgh, Pennsylvania

3. Global Systems Technology, Inc. Course Overview • Introduction: An Executive Overview of the CMM (6 Hrs) • Level 2: Understanding the Repeatable Level KPAs (5 Hrs) • Level 3: Understanding the Defined Level KPAs (6 Hrs) • Level 4: Understanding the Managed Level KPAs (2 Hrs) • Level 5: Understanding the Optimizing Level KPAs (3 Hrs) • CMM Summary and Test (2 Hrs)

4. Global Systems Technology, Inc. Course Guidelines • The Class schedule will be followed. • The Class will start at 9:30 and end at 5:30 promptly. • One break in the morning, one in the afternoon. • Course is fast paced, but questions are welcome. • Exercises and test will be given, and results provided to SEI CMM site training coordinator.

5. Global Systems Technology, Inc. Course Schedule Morning Afternoon Executive Overview Executive Overview Executive Overview APA Day 1 Level 2 Level 3 Level 3 Level 3 Day 2 Level 4 Level 4/5 Level 5 Summary And Test Day 3

6. Global Systems Technology, Inc. Day One: Executive Overview • Understand the origins of the CMM and the underlying need • Understand the difference between the CMM and ISO 9000 • Recognize the Benefits of CMM based software process improvements • Be able to describe the CMM and how it is organized • Understand management’s commitments in CMM based software process Improvement • Be able to describe the CMM and how it is organized • Understand the elements necessary for successful software process improvement • Results of the Abbreviated Process Assessment

7. Global Systems Technology, Inc. Evolution of the CMM For Software

8. Global Systems Technology, Inc. Cobb’s Paradox “We know why projects fail, we know how to prevent their failure....so why do they still fail?” Martin Cobb Treasury Board of Canada Secretariat Ottawa, Canada

9. Global Systems Technology, Inc. The Need for Better Planning and Managing • For every 100 IT projects started, 94 are “restarted” • Average IT project cost overrun is 178% in large companies • Average IT project time overrun is 230% in large companies • 42% of original features proposed of IT projects in large companies actually get ported in the final product This information and the following statistics are the result of an extensive national (United States) survey conducted by the Standish Group. Respondents were IT Executives.

10. Global Systems Technology, Inc. Project Success Profiles • The reasons projects succeed: • User Involvement • Executive Management Support (Active interest) • Clear Statement of Requirements • Proper Planning • Realistic Expectations • Smaller Project Milestones (Visibility) • Competent Staff • Ownership • Clear Vision and Objectives • Risk Planning, Identification and Mitigation

11. Global Systems Technology, Inc. Project Obstacles Profiles • The reasons projects are challenged: • Lack of User Input • Incomplete Requirements and Specifications • Changing Requirements and Specifications • Lack of Executive Support • Technical Incompetence • Lack of Resources • Unrealistic Expectations • Unclear Objectives • New Technology • Team Commitment

12. Incomplete Requirements Lack of User Involvement Lack of Resources Unrealistic Expectations Lack of Executive Support Changing Requirements Lack of Planning Obsolete before it is complete Lack of IT Management Oversight Technology Illiteracy Does not solve business problem Unrealistic schedule requirements Lack of Program Management training Poor Estimating Global Systems Technology, Inc. Project Failure Profiles The reasons projects are impaired and canceled:

13. Global Systems Technology, Inc. Industry IT Project Facts: 1995 • 31.1 % of all projects were canceled before they are completed. • 52.7% of projects cost 189% of their original estimates • The cost for IT projects in American Companies and in the government that were canceled before implementation in 1995 is estimated at $81 billion dollars. • The cost of overruns for the same period (in addition to canceled projects) is estimated at $59 billion.

14. Global Systems Technology, Inc. More Industry Project Facts • Lost opportunities cost is not measurable, but could be in the trillions of dollars. Remember Denver; the cost of not having the baggage system working was costing the City of Denver $1.1 million dollars a day. • Only 9% of projects in large companies come in on budget and on schedule.

15. Global Systems Technology, Inc. Industry Project Success Criteria SUCCESS CRITERIA POINTS • User Involvement 19 • Executive Management Support 16 • Clear Statement of Requirements 15 • Proper Planning 11 • Realistic Expectations 10 • Smaller Project Involvement 09 • Competent Staff 08 • Ownership 06 • Clear Vision and Objectives 03 • Hard-Working and Focused Staff 03 100

16. Global Systems Technology, Inc. Evolution of the CMM • Conditions described were worse in the 1960s and 1970s. • GAO (US Government Accounting Office) study in 1983 showed that only 3% of the software being delivered to the Governmentwas usable on delivery; that 49% was never usable; and that 48% needed modification prior to use. • In the early 1980s, the Government created a Federally Funded Research and Development Center at Carnegie Mellon University, The Software Engineering Institute. • Objective was to reduce the Government’s exposure to software development and maintenance risk. • TQM was in full swing in the manufacturing environment.

17. Global Systems Technology, Inc. Evolution of the CMM S/W Engineering Sciences Maturing 1940s-1980s DOD Standards Development: Mil-S-482, 483, 1679, 2167, 498 (Also: 52779, 2168) Commercial Standards: IEEE 498, 12207 ISO Standards: 12207 Commercial Practices of S/W Organizations ISO 9000 Series (Commercial) ASQC Tech-notes DOD Standards (Mil Q 9858A) DEFINITION OF THE FIVE LEVELS OF SOFTWARE PROCESS MATURITY IN THE CMM FRAMEWORK TQM PRINCIPLES ADAPTATION OF QUALITY MANAGEMENT MATURITY GRID TO SOFTWARE DOMAIN SHEWART (1920s) DEMMING (1950s) ISHIKAWA (1940s) JURAN (1960s) CROSBY(1970s) SEI/1987-1993 W. HUMPHREY IBM/1985 CMM For Software (Model) QUALITY MANAGEMENT MATURITY GRID P. CROSBY/1979

18. Global Systems Technology, Inc. Evolution of the CMM • SEI, formed in 1984, began an examination of organizations that were recognized for producing high quality software products that were delivered on-time and within budget. • Approximately 87 organizations were identified and examined, some of which were excluded from the study. • The processes used by the remaining organizations were examined and the most common practices were then cataloged as the Key Practices and grouped into Key Process Areas (KPAs). • The KPAs were grouped into levels of capability. The maturity levels were derived from TQM literature and applied to software.

19. Global Systems Technology, Inc. Evolution of the CMM • The organizations had applied their good business practices to the development of software. • The KPAs, in aggregate, represent “good business” practices that have been defined in the context of a software development environment.

20. Global Systems Technology, Inc. Definition of Software Process Procedures and methods defining the relationship of tasks Process People with skills, training and motivation Tools and equipment

21. TQM Assumes processes are mature Expects processes to be institutionalized Global Systems Technology, Inc. CMM Expects processes to be immature Recognizes the benefit of quantitative measures in process management and change Builds foundation so TQM can be applied

22. Global Systems Technology, Inc. Applying TQM to Software Organization TQM Project A Project B The CMM is a model for software process that embodies the principles of TQM Project C Hardware Project D Software System CMM TQM fits in an overall business context - the Capability Maturity Model (CMM) applies specifically to software.

23. Global Systems Technology, Inc. Points in Common with the Quality Movement • Improvement focuses on fixing the process, not on blaming the people. • Improvement must be measured and periodically reinforced • Improvement requires consistency of investment, training and effort to search for new opportunities to improve • Improvement is a continuous process. • If level of discomfort is not high enough (i.e., market share, time-to-market, competitive posture, number of fielded defects, etc., are acceptable to the organization) things will not change.

24. Global Systems Technology, Inc. How Does Your Customer Benefit? • Confidence in you, the product/service provider • On-time delivery of your products and services • Reduced costs of your software development activities • Acceleration of your work accomplishments • Improvement in your product service quality • Ability to better plan their business activities due to the overall reduced risk in doing business with

25. Global Systems Technology, Inc. What’s in it for the Employee? • Less overtime required to get the job done • Improved customer relations and customer satisfaction • Enhanced “team” working environment within the organization, where you can depend on everyone • Improved personal performance as you have a shorter learning curve, can benefit from others’ experiences • Enhanced professional skills, defined methods and processes, and availability of training

26. Global Systems Technology, Inc. How Does the Organization Benefit? • Improved customer relations results in additional work, and better communications • Recognition of products from customers • Satisfied employees resulting in best efforts and retention • Better response and less business risk in meeting client needs • Improved quality and productivity of services and products provided resulting in improved competitiveness, market share increase Increased Market Share! Increased Efficiency! Improved Profitability!

27. Risk Productivity 34% Decrease in Cost to Develop Significant Reduction in Development Risk CMM Level ......1..... .....2..... .....3..... .....4..... .....5..... CMM Level ......1..... .....2..... .....3..... .....4..... .....5..... Quality Time to Market 52% Decrease in Product Errors 15% Decrease in Time to Deliver CMM Level ......1..... .....2..... .....3..... .....4..... .....5..... CMM Level ......1..... .....2..... .....3..... .....4..... .....5..... Global Systems Technology, Inc. Benefits of Using CMM Model

28. Global Systems Technology, Inc. Improvements Using the CMM

29. Target Probability Quality/Schedule/Cost Target Probability Quality/Schedule/Cost Target Probability Quality/Schedule/Cost Target Probability Quality/Schedule/Cost Target Probability Quality/Schedule/Cost Global Systems Technology, Inc. Maturity Levels in Review (Predictability) Level Characteristics Predicted Performance 5 Process Improvement is institutionalized Optimizing 4 Product and process are quantitatively controlled Managed 3 Software engineering and management processes defined and integrated Defined 2 Project management system in place; performance is repeatable Repeatable 1 Process is informal and ad hoc; performance is unpredictable Initial

30. Global Systems Technology, Inc. Maturity Levels In Review (Visibility) 4 3 2 1

31. Global Systems Technology, Inc. Maturity Levels In Review (Visibility) 5

32. Global Systems Technology, Inc. What Are the Risks of Model-Based Improvements? • Models are simplifications of the real world • Models are not comprehensive • Interpretation and tailoring must be aligned to business objectives • Judgment is necessary to use models correctly and with insight

33. Global Systems Technology, Inc. What the CMM Does Not Cover • The CMM does not address all software process and quality improvement issues. • Not included: • Systems Testing • Implementation • Support • Customer • Support • User Training • Not included: • User Needs • Analysis • Requirements • Definition • System • Requirements • System Design • Risk • Management The CMM focuses on Software Engineering through: Software Requirements Software Design Code and Unit Test Integration Test Software Test

34. Global Systems Technology, Inc. The CMM Focuses on Software Development Issues • Issues addressed only indirectly, or by implication, include: • specific tools, methods, and technologies • concurrent engineering, Joint Application Development and teamwork • system engineering, marketing, testing, delivery • human resources • organizational behavior

35. Capability Versus Performance • Process capability - the range of expected results that can be achieved by following a process, initially established at the organization level. A predictor of future project outcomes. • Process performance - a measure of the actual results achieved from following a process. Refers to a particular project in the organization

36. Global Systems Technology, Inc. But I have ISO, so why do I need the CMM? “In today’s competitive marketplace, ISO 9000 registration is becoming a requirement for doing business in many industries. To remain competitive, companies need to go beyond that.” Quality Digest The CMM practices focuses on competitiveness and emphasize the business objectives, bottom line performance, employee satisfaction and development, and supplier and partner performance.

37. ISO Prescriptive Standard - Organizations must comply Identifies what “must” be done and by whom Looks at process existence, execution not at “goodness” Requires process improvement activities Focused on Quality Management System Global Systems Technology, Inc. How ISO and the CMM Differ CMM • Descriptive • Model - Must be tailored to organization’s business environment • Describes successful software development practices • Expects processes to “make sense” to organization • Focused process improvement of business practices • Requires tailoring of process to project needs

38. Global Systems Technology, Inc. How ISO and the CMM Differ

39. Global Systems Technology, Inc. (After ISO) ISO and the CMM share the same Organizational constraints, Both must be adapted to those constraints. ISO, as a standard, requires the Organization to conform. The Organization may need to expand activities to cover the ISO requirements. CMM , as a model, is used to understand and evolve within the Organization constraints. Blind compliance without a reasonable interpretation and use of professional judgement may mislead the Organization. Enterprise (Before ISO) ISO 9000 (9000-3) Coverage and Applicability (After CMM) CMM for Software Coverage and Applicability

40. Global Systems Technology, Inc. Models are simplified views of the real world Procedures, templates, models, tool usage, and forms, are below the level of detail within the CMM THE REAL WORLD Integrated Product Teams Organization Culture Maturity Levels System Engineering Key Process Areas Key Practices People Issues Technology Marketing The capability maturity model for software

41. Global Systems Technology, Inc. So, What is the CMM? • The CMM is a model that describes software development practices that are recognized as critical to success for software development efforts within state of the practice organizations. • The CMM describes “what” activities are necessary for success. (It is Descriptive) • The CMM does not describe “how” the activities are to be performed. (It is Not Prescriptive) • Your organization procedures (QMS) describes how activities are to be performed.

42. Global Systems Technology, Inc. Common Sense Issues • The CMM is a model.A reasonable interpretationof the CMM practices and professional judgmentin application is necessary. • The CMM was written to address the process for large, complex software efforts. • Early efforts in tailoring the CMM indicate that in excess of 90% of key practices are applicableas written when interpreted in the context of the specific applications for both large and small organizations.

43. Global Systems Technology, Inc. The Model: SEI’s CMM Understanding the model structure

44. Global Systems Technology, Inc. Maturity Levels Provide an Orderly Path for SPI • Process capability is built in stages • This does not imply a ladder - some processes are ineffective when others are not stable • Each level provides a foundation for improvements at the next level • engineering process is easily sacrificed without management discipline • detailed measures are inconsistent without a defined process • effect of process innovation is obscure in a noisy process

45. The Capability Maturity Model is defined in levels of process maturity. • The levels do not imply a “ladder”. • Each level consists of a grouping of homogeneous key process areas (KPAs). • The relationship is such that the most benefit from a KPA can only be achieved when KPAs from lower levels are in place. • The KPAs in each level enhance the effectiveness of the previous maturity level KPAs while strengthening the foundation for further process maturity growth. Global Systems Technology, Inc.

46. Global Systems Technology, Inc. Summary Characteristics of Organizations at Different Levels of Process Maturity 5 Optimizing(process/product data used for strategic business improvement) 4 Managed(quantitative process and software quality management in place) 3 Defined(same processes used across the organization) 2 Repeatable(repeatable processes documented and used) 1 Ad hoc or chaotic(repeatable processes not documented and not used)

47. Global Systems Technology, Inc. • Defect Prevention • Technology Change Management • Process Change Management 5 4 • Quantitative Process Management • Software Quality Management Quality Productivity • Organization Process Focus • Organization Process Definition • Training program • Integrated Software Management • Software Product Engineering • Intergroup Coordination • Peer Reviews 3 Time to Market Risk • Requirements Management • Project Planning • Project Tracking & Oversight • Subcontract Management • Software Quality Assurance • Configuration Management 2 1 • No Key Process Areas

48. Global Systems Technology, Inc. CMM Structure CMM V1.1 Level 2 Level 3 Level 4 Level 5 A Total of 18 Key Process Areas (KPAs) each with established goals Key Process Areas are organized by Common Features Commitment to Perform Ability to Perform Activities Performed Measurement and Analysis Verifying Implementation Each of the KPAs are organized by common features that contain key practices A Total of 316 Key Practices in CMM V1.1

49. Level 2 Level 3 Level 4 Level 5 Common Features • Commitment • and • Ability Organizational Infrastructure and Management Support Work Accomplished • Activities • Measurements • and • Verification Management Visibility and Oversight Global Systems Technology, Inc. Conceptual Organization CMM 316 Key Practices making up the 18 KPAs

50. Global Systems Technology, Inc. Evaluate, Redefine Goals Strategic Business Plan Organization Management Reviews Defect Prevention Policy Organization Management Commitment Meas/Verification Process Definitions Directives Group Management Reviews Issue Resolution Procedures Ability Std. Practices Defect Prevention Allocation of Resources Functional Management Training Meas/Verification Adapt/Tailor Procedures to Specific Project Needs; Project Specific Training Defect Prevention Project Management Reviews Customer Requirements, Regulatory Environment, Constraints, Customer Direction, Competition, etc. Issue Resolution Project Management Client Management Project Work Instructions Meas/Verification