A Process Improvement Plan for a High Maturity (and Diverse) Organization

Alan PflugradNorthrop Grumman Information TechnologyDefense Enterprise Solutions

Slide 2

Purpose and Agenda

•Purpose– To describe the strategic and tactical process

improvement plans of a diverse organization that has achieved a CMMI SE/SW Level 5 Rating

•Agenda– Organizational Scope & Process Improvement

Approach– 2002 Situation– Strategic (2010) and Tactical (2003) Goals & Plans

–Applicability–Performance– Infrastructure–Compliance

– Effectiveness of Plan

Slide 3

Organizational Information

•Northrop Grumman– $26 B in revenue; 120,000 employees; 50 states; 25

countries•Information Technology (IT) Sector

– $4 B in sales; 22,000 employees; 48 states; 15 countries•Defense Enterprise Solutions (DES) Business Unit

– $548 M in sales; 3,045 employees, 23 states, 3 countries•DES provides enterprise-wide technology solutions to

the Defense marketplace•Major Application Areas:

– Logistics– Mission Support– Science & Technology– Simulation, Analysis, and Training– Communications & Infrastructure

Slide 4

Repeatable and Defined Organizational SW/SE ProcessesRepeatable and Defined Organizational SW/SE Processes

Products & Products & ServicesServices

SE/SW SE/SW Methods & Methods &

ToolsTools

Customer Customer MaturityMaturity

Customers Customers & Markets& Markets

ManagementManagement EngineeringEngineering OrganizationalOrganizational

Project Size & Project Size & LocationLocation

Introduction: Diversity of Engineering Environments

Diverse & Diverse & DynamicDynamic

Contract Contract VehiclesVehicles

COTS Integration?COTS Integration?System Development? System Development?

System Migration?System Migration?Maintenance?Maintenance?

Operations Support?Operations Support?IT Managed Services?IT Managed Services?

Etc.Etc.Speed of Speed of

Technology Technology ChangeChange

Slide 5

LIS

Litton TASC

LTS

L5 Litton PRC

(to other units)

Defense Enterprise Solutions

2001 20021999 2000

LATL3

L5

(to other units)

L3

CMMI

(to other units)

LISS L3

ENABLER

LIEB

SPII

2002 Situation: DES Process Legacy Integration

Slide 6

Strategic Optimizing Process

Before

Defect Categories

Root Cause Analysis

ParetoAnalysis

OrganizationDefinedProcess

Project Tailored Process

Process ChangeRemove Root Causes

From Process toPrevent Defects

Test PR or

PeerReview PR

PRPR

PRPR

DefectAnalysis

DefectData

Common & Special Causes

TechnologyInnovations

AWIPS Release 5.1 Monthly CPIm X Chart

-0.75

-0.50

-0.25

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2.00

2.25

2.50

2.75

Dec-2000 Jan-2001 Feb-2001 Mar-2001 Apr-2001 May-2001 Jun-2001 Jul-2001 Aug-2001 Sep-2001 Oct-2001 Nov-2001 Dec-2001

X

CPIm CPIm Mean UNPLX LNPLX U2S L2S U1.5S L1.5S

Northrop GrummanInformation Technology Company Sensitive / Company Proprietary -- Subject to Nondisclosure

Slide 7

Process Maturity• CMMI SE/SW Level 5 for Staged and

Continuous Representations•Software CMM Level 5 also

• Organizational Process Strengths•Integrated SE and SW Eng•Sharing & reusing process assets•Data driven corrective action•Technology Change Management

• Global Best Practices•Requirements Elicitation•Quantitative Data Management

2002 Situation: DEC. 2002 CMMI SW/SE Appraisal

F1=Fully Implemented Out of Scope

Cost, Schedule and Quality Performance

JEDMICS exceeds software quality goals (.0156 vs .06 defects/KSLOC)

PERMS exceeds revenue goals by 11%

AIT has 100% on-time delivery Only 2% of total defects found in

delivered SIGS product ITS is on cost and schedule (CPIm

= .965 & SPIm = .985, target = 1.0 +/- .1)

SIGS averages a customer satisfaction of 98.5% over last four years

Slide 8

2003 Plan Table of Contents

• Executive Summary• Introduction

– Purpose– Motivation for Improvement– Vision and Mission

• Approach– NGIT Quality Management

System– Quality System and Policy– EPG Operations and Planning– EPI Implementation– Current Situation

• 2003-2010 Long-Range Strategic Plan (EPIC)– EPI Applicability Goals– Performance Goals– Infrastructure Goals– Compliance Goals

• 2003 Tactical Plans– Master Schedule– Applicability

– Audit/Appraisal Entity Catalog– Additional High Maturity Projects (Full LC)– Partial Life Cycle Project Process

Improvement– Service Project Process Improvement– Analysis of Quality Programs– IPPD Survey & Pilot

– Performance– EVMS for Small Projects– Peer Review Process Upgrades– SWEEP Pilot– TSP/PSP Pilot– Customer Satisfaction Survey Analysis

– Infrastructure – Process Infrastructure– OU Support– PAL Upgrades– EPI Project/Proposal Startup

– Compliance– Quality Management System– QA Class C Appraisals

– Master Budget– Risks (TBD)

Slide 9

EPI Long Range Strategic Goals

1.EPI Applicability Goals• Goals related to the application of EPI policies and

procedures to DES projects2.Performance Goals

• Goals related to process performance and product quality at the DES business unit and project levels

3.Infrastructure Goals• Goals related to the cost, schedule, and quality of EPI

Infrastructure4.Compliance Goals

• Goals related to ratings against industry standards and models

Each Category described in terms of the Current Situation,the 2003-2010 Goals, and the 2003 Tactical Plans

Slide 10

2003 Strategic Goals

Type of Work EPI Applicability Goals Performance Goals Infrastructure Goals Compliance Goals Full Product Development or Maintenance Life Cycle

Apply to all strategic (& non- strategic?) projects

All programs participate in metrics program

Meet Updated QM goals Implement Customer

Satisfaction Pilot EVMS for small

projects Select Quality program

Baseline project startup cost & time

Update processes and artifacts for TSP pilots

Upgrade PAL (Pilot turn-key

processes)

Maturity L5 for all applicable

Partial Product Development or Maintenance Life Cycle

Pilot Eng, PM, & Support PAs

All programs participate in metrics program

Pilot EVMS for small projects

Baseline project startup cost & time for pilots

Update processes and artifacts for Partial LC

pilots Upgrade PAL

Capability >= L2 in Eng, PM, &

Support PAs

Services Pilot PM & Support PAs All programs participate in metrics program

Pilot EVMS for small projects

Baseline project startup cost & time

Update processes and artifacts for Service pilots

Upgrade PAL

Capability >= L2 in PM & Support

PAs

Slide 11

2003 Tactical Plans

Type of Work EPI Applicability Plans Performance Plans Infrastructure Plans Compliance Plans Full Product Development or Maintenance Life Cycle

Audit/Appraisal Entity Catalog

L5 SCAMPI Reload TSP/PSP Pilots IPPD Survey & Pilot EPI Proposal Support

Expanded Metrics Support Process Infrastructure

(L4WG, MLT, L5WG) EVMS for Small Projects PR Process Upgrades SWEEP Pilot Customer Satisfaction

Survey Analysis of Quality

Programs

OU Support EPI Project Startup PAL Upgrades Process Infrastructure

(DES EPG, PALT, PA Owners, Training,

WGs) EPI IR&D (Distributive

Environment)

QA Class C Appraisals

Partial Product Development or Maintenance Life Cycle

Audit/Appraisal Entity Catalog

Partial LC Pilots EPI Proposal Support

Expanded Metrics Support EVMS for Small Projects

OU Support EPI Project Startup PAL Upgrades Process Infrastructure

(DES EPG, PALT, PA Owners, Training,

WGs)

QA Class C Appraisals (Phoenix Team?)

Services Audit/Appraisa l Entity Catalog

Service Pilots EPI Proposal Support

Expanded Metrics Support EVMS for Small Projects

OU Support EPI Project Startup PAL Upgrades Process Infrastructure

(DES EPG, PALT, PA Owners, Training,

WGs)

QA Class C Appraisals

(Phoenix Team)

Slide 12

Tactical Plans – Master Schedule

Tactical Improvements Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecEPI Applicability

Analysis of Audit/Appraisal Entity ApplicabilityAdditional High Maturity Projects (Full LC Projects)Partial Life Cycle Project Process ImprovementService Project Process ImprovementAnalysis of Quality ProgramsIPPD Survey & Pilot

PerformanceEVMS for Small ProjectsPR Process UpgradesSWEEP PilotTSP/PSP PilotAnalysis of Customer Satisfaction Survey Options

Infrastructure (EPI)Process Infrastructure (LOE)PAL UpgradesOU SupportEPI Project Startup

Compliance (QA)Quality Management System ImplementationQA Class C Appraisal

Slide 13

EPI Applicability

Start

Responsible for Product or Process?

Is SE or SW Involved?

Responsible for full SE/SW Life Cycle?

Universe of DES Projects

All Applicable

Y

Y

Y

Responsible for Product or Process

Involved in a SE or SW LC Phase

Responsible for full SE/SW LC

Slide 14

DES Business Goals DES Process & Quality PerformanceObjectives

Achieve CustomerSatisfaction rating (CPAR orequivalent) of Blue or Greenon 90% of contracts over $5million annual revenue ordeemed to be of significantstrategic value. Thepercentage of contracts witha Blue rating will be at least33%.

1. Achieve Cost Perf. Index = 1 0.1 (monthly)2. Achieve Schedule Perf. Index = 1 0.1

(monthly).3. Achieve Est-To-Complete-Variance = 1 0.1

(monthly)4. Achieve 10% improvement in Defect Density

for each life cycle phase (from previousbaseline)

Objectives are monitored on a monthly basis forthe projects; organizational baselines areevaluated on semi-annual basis.

2003 Goals for Performance

Cost and schedule performance, product quality, service quality, and customer satisfaction are statistically significantly better than competitors

Slide 15

Approach: Process Implementation

OutputOutputWork Work

ProductsProducts Roles &Roles &

ResponsibilitiesResponsibilities

ProcessProcessIntegrationIntegration

Check-Check-listslists

MetricsMetrics

RolloutRolloutPlansPlans

ToolsTools

TrainingTraining

SupportSupport

RequirementsRequirements

Tailoring Tailoring GuidanceGuidance

Policy &Policy &VerificationsVerifications

ProcessesProcesses

• TemplatesTemplates• SamplesSamples

• Policy StatementsPolicy Statements• Quality Assurance Quality Assurance • AuditsAudits

• ProposalsProposals• Pilot ProjectsPilot Projects• StartupsStartups• Ongoing ProjectsOngoing Projects

• CorporateCorporate• CustomerCustomer• InternalInternal

• COTS & “Glue”COTS & “Glue”• SupportSupport• Compatible FormatsCompatible Formats

• CorporateCorporate• OJTOJT

• CMMI CMMI • ISOISO• Customer StdsCustomer Stds

• Per Process, Per Process, AssetAsset

• One Per Domain One Per Domain • Shows Variations in each Shows Variations in each

Process/ Process/ AssetAsset

• Expert KnowledgeExpert Knowledge

• ProcessProcess• ProductProduct

• Process ChampionProcess Champion• Internal ConsultantInternal Consultant• Subject Matter ExpertsSubject Matter Experts• Links to other KPAs/PAsLinks to other KPAs/PAs

• Links to SIMLinks to SIM• Links to other processesLinks to other processes

Slide 16

2003 Plan Effectiveness

1.EPI Applicability Goals• Expanded into Enterprise IT Managed Services and Advanced Weapon

Research and Testing 2.Performance Goals

• Improved Error Estimating – positive impact on schedule performance• Improved Earned Value plans and tools – positive impact on cost

performance• Improved Peer Reviews with detailed checklists – positive impact on

defect removal3.Infrastructure Goals

• Process built-in to project planning and startup – positive impact on “time to high maturity”

4.Compliance Goals• Improved accuracy of quicklooks/QA policy audits – positive impact on

maturity and ISO readiness

On track to exceed ALL 2003 organizational business objectives!