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1 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Was it worth it? The Real Benefits of Attaining a Maturity Level Paul Morgan.

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Presentation on theme: "1 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Was it worth it? The Real Benefits of Attaining a Maturity Level Paul Morgan."— Presentation transcript:

1 1 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Was it worth it? The Real Benefits of Attaining a Maturity Level Paul Morgan Process Improvement Director April 6 th, 2005 

2 2 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 GTECH Corporate Profile  Incorporated in 1980, headquartered in Rhode Island, USA with 5,400 employees worldwide.  The leading provider to the world’s lottery industry with market share of more than 70% and more than 340,000 point-of-sale devices linked to GTECH central systems.  Handles more transactions a year than all of the leading credit card companies combined (50 billion transactions in FY04).  More than $1 billion in total revenue in FY 2004.

3 3 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Process Improvement Milestones March 2000 Process improvement initiative commenced. October 2001 CMM Level 2 – Ireland Development Center February 2004 CMM Level 3 – Austin & Chennai Technology Centers February 2005 CMM Level 3 – Austin, Chennai and Warsaw. February 2006 CMMI Level 4 – Austin, Chennai and Warsaw. 12 months Total : 72 months 12 months 29 months 19 months

4 4 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Process Improvement Benefits Over the course of its process improvement journey GTECH has enjoyed:  60% Increase in Requirements Stability  50% Improvement in Defect Removal Efficiency (DRE)  40% Reduction in Rework  80% increase in Cost and Schedule Estimation accuracy and predictability.  Process Improvement Return On Investment (ROI) of 6:1.

5 5 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Alignment with Business Goals Charter  Deploy a ‘franchise’ model to support the consolidation of development centers. Opportunity  Creation of the new Technology Centers provided the perfect catalyst for implementing change. Austin Warsaw Chennai Challenge  Institutionalization of common processes across multiple multicultural organizations that span 17 time zones.

6 6 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Process Improvement Organization Software Engineering Process Group (SEPG) Formed  Focus on adding value rather than pursuit of a specific model. SEPG Steering Group Established  Provides sponsorship, direction, and visible endorsement of SEPG activities.  Quarterly progress reviews provides oversight. Project Management of SEPG Activities  Annual SEPG Plan developed and deployment tracked via Work Breakdown Structure / Schedule  SEPG processes under full configuration management  SEPG activities reviewed by Standards Compliance (SQA)

7 7 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Process Definition – The Challenge  Process models are auditors tool. They are not written to easily support software managers or developers in their daily activities. Process Area Requirements Management Project Planning Project Monitoring and Control Supplier Agreement Management Process and Product Quality Assurance Measurement and Analysis Configuration Management Project Monitoring and Control Documented Project Process Requirements Management Project Planning Supplier Agreement Management Process and Product Quality Assurance Measurement and Analysis Configuration Management ‘Shelf-ware’ Project Software Manager Project Roles Requirements Lead

8 8 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Process Definition - Solution  Role based approach Documented Project Responsibilities Project Software Manager Responsibilities Requirements Lead Responsibilities Project Roles Project Software Manager Requirements Lead  ‘Light’ process documentation. Emphasis on readability and usability.  Intuitive to use with corporate wide visibility.  Fast deployment. Process Area Requirements Management Project Planning Project Monitoring and Control Supplier Agreement Manager Process and Product Quality Assurance Measurement and Analysis Configuration Management

9 9 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Process Definition - Documentation Activity Required Personnel Required Reading Activity Input/Output Activity Description  Automated workflows via s to guide and control project personnel in their activities.  Process repository provides document management with version control, change control, and process history. Role Support Functions

10 10 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Resistance To Change GTECH Hub Consolidation Strategy Restraining forces Self interest Lack of trust Different assessment Low tolerance for change Lack of understanding Approach: Negotiation and Agreement Participation and Involvement Facilitation and Support Education and Communication Management Intervention Reducing costs Improving customer satisfaction New management culture Improving productivity Corporate goals Driving forces

11 11 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Cost of Process Improvement Process Definition  Recruitment and training of process improvement personnel  Process design and documentation Process Deployment  Creation of training materials  Support of process roll-out Project staff training Mentoring and coaching  Learning curve costs  Consultancy costs  Assessment costs Tools  Purchase, customization, training, deployment, and maintenance.

12 12 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Requirements Volatility Requirements volatility reduce by 60% Design Ambiguous requirements identified in design phase Integration Accurate requirements simplify integration System Test Test plans and Requirements developed concurrently. CAT Final delivery matches customer expectations Code Improved unit test effectiveness

13 13 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Defect Detection Defect Removal Efficiency (DRE) Summary 61% Increase in DRE 56% Increase in DRE consistency The earlier defects are detected the cheaper they are to resolve. Defect detection continues to improve during FY05. Defect Detection Profile

14 14 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Rework Early defect detection results in: Reduction in system test defects Improved quality of customer delivery. Defect Detection Profile Early defect detection results in: Increased inspection and unit test effort Dramatic reduction in test rework Overall project rework drops by 40%. Defect Resolution Effort

15 15 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Project Size Estimation Size (GFPs) Effort (hours) Size estimation normalizes data across projects allowing for use of historic data Project requirements mapped against system architecture Each requirement weighted to allow for complexity of implementation Size model gives good correlation to project effort (81%) and defect count (74%).

16 16 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Project Costing Model Size to Effort algorithm based on historic data Upper and lower effort thresholds calculated. Total effort and effort per project phase calculated.. Project size entered Size of key documents calculated. Effort Estimation Utility

17 17 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Defect Profile - Tracking Estimated DRE: xx%

18 18 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Return on Investment (ROI) ProcessesIndicatorsBase Measures 1 Process Improvement Initiatives Process Improvement Initiatives Process Improvement Initiatives 2 f (x) Σ (Benefits) 3 Σ (Costs) (labor, equipment, training,…) 4  ROI in excess of 6:1 calculated as rework avoided per hour spent in inspections  Benefits usually lag investment by months or years. Greater returns accrue as experience of operating as a level 3 organization increases. - 1 = ROI 5

19 19 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005  The standard process is recognition that GTECH’s software development practices are valuable business assets that must be defined, documented and secured.  Standard for all GTECH employees to follow irrespective of where software development work takes place.  Historic ‘information’ repository provides a knowledge base facilitating reuse of project artefacts.  Faster project start-up and less re-training.  Visibility afforded by intranet based process facilitates management decision making.  Improved teamwork and employee morale.  Increased customer confidence. Other Benefits

20 20 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 Keys To Success  The time to achieve a maturity level entirely depends upon the level of Senior Management commitment and sponsorship.  Staff the SEPG with recognized leaders and discipline experts and treat the process improvement initiative as a high priority project with enforced accountability and high-visibility status reporting.  Do not adopt the maturity model as your process. Interpret it based upon the specific needs of your business.  Use the best technology available to deploy the process.  Ensure accountability via standards compliance and periodic assessments to check progress with results reported to all.

21 21 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 An Alternative Perspective….

22 22 Version 2.0 – Practical CMMI, April 2005 GTECH Corporation Copyright 2005 GTECH Process Improvement Thank You Any Questions Contact Information: GTECH website:


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