1. Using Six Sigma to Achieve CMMI Levels 4 and 5
Rick Hefner, Ph.D.
Extended abstract submitted to 2003 CMMI Technology Conference & User Group
Abstract
Six Sigma is a process improvement methodology based on statistical analysis of data. The methods and tools used in Six Sigma are synergistic with the practices of CMMI Level 4 and 5. This presentation discusses the theoretical basis for CMMI high maturity, and describes how Six Sigma tools and methods for Statistical Process Control are used to quantitatively manage quality and process performance. Examples are provided from the Northrop Grumman Mission Systems improvement program, which achieved Levels 4 and 5 twice as fast as the industry average.
At Maturity Level 4, the organization establishing a quantitative understanding of the performance of the organization’s set of standard processes. This understanding is needed to establish meaningful quality and process performance objectives, and to provide the process performance data, baselines, and models to quantitatively manage the organization’s projects. The expected process performance can be used in establishing the project’s quality and process performance objectives and can be used as a baseline against which actual project performance can be compared. This information is used to quantitatively manage the project. Six Sigma provides the tools for characterizing understanding process capability and variation, at both the organizational and process levels.
At Maturity Level 5, the organization selects and deploys incremental and innovative improvements that measurably improve the organization's processes and technologies. The characterization of quality and process performance established at Level 4, provides the basis for identifying areas of potential improvement. Causal analysis techniques are used to identify candidate improvements, and the statistical tools of Six Sigma are used to evaluate these determine which improvements have the greatest chance of yielding the desired benefits.
The presentation will show that a systematic method for selecting and applying Statistical Process Control to key subprocesses can yield rapid results with guaranteed business benefit.
CMMI Technology Conference & User Group
17-20 November 2003
Rick Hefner, Northrop Grumman

2. Copyright 2003 Northrop Grumman Space and Mission Systems Corp
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
What is Six Sigma?
Six Sigma is a management philosophy based on meeting business objectives by striving for perfection
A disciplined, data-driven methodology for decision making and process improvement
Six Sigma consists of several integrated methods:
Process Management
Voice of the Customer
Change Management
Tools for Measuring Variation and Change
Business Metrics
The focus is on understanding and reducing variation

3. DMAIC Steps DEFINE Set project goals and objectives
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
DMAIC Steps
Define
Measure
Analyze
Improve
Control
DEFINE Set project goals and objectives
MEASURE Narrow range of potential causes and establish baseline capability level
ANALYZE Evaluate data/information for trends, patterns, causal relationships and “root causes”
IMPROVE Develop, implement and evaluate solutions targeted at identified root causes
CONTROL Make sure problem stays fixed and new methods can be further improved over time

4. Process Capability Measurement and Assessment Report
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
Our Six Sigma Approach
Quantitative
Process Capability Measurement and Assessment Report
Quantitatively Driven
Six Sigma improvements are quantified
Integrated with Quality Program
Integrated Training, Awareness, & Policies
Integrated CMMI & Six Sigma projects
Integrated tracking and reporting via DB, PRA, etc.
Linked with Business Planning and Oversight
Business planning
Project selection
Enabled by
Infrastructure
Training
Tools
Awareness
Database
Engaged with External Customers
Visibility
Participation
Tied to Employee Performance
Goals, awards
Job and career paths
SPM
Startit! – a NGMS product

5. Six Sigma Implementation
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
Six Sigma Implementation
Starting implementing Six Sigma in 2001
Trained over 3000 Green Belts (80 hours), and over 200 Black Belts (160 hours)
Completed several hundred projects covering all functional areas
Customer involvement and award fee citations
About half of the projects are improving an engineering process

6. Capability Maturity Model Integrated
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
Causal Analysis and Resolution
Organizational Innovation and Deployment
5 Optimizing
4 Quantitatively
Managed
3 Defined
2 Managed
Continuous
process
improvement
Quantitative
management
Process
standardization
Basic
project
Quantitative Project Management
Organizational Process Performance
Organizational Process Focus
Organizational Process Definition
Organizational Training Integrated Project Management
Risk Management
Decision Analysis and Resolution
Requirements Development
Technical Solution
Product Integration
Verification
Validation
Requirements Management
Project Planning
Project Monitoring and Control
Supplier Agreement Management
Measurement and Analysis
Process and Product Quality Assurance
Configuration Management
1 Performed
Process Areas
Level
Focus
Capability Maturity Model Integrated
Level 5 Focus is on preventing defects and innovation (addressing common causes of variation)
Level 4
Focus is on understanding and managing special causes of variation, at both the project and organizational levels

7. Copyright 2003 Northrop Grumman Space and Mission Systems Corp
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
Maturity Level 4
Understanding and managing special causes of variation
Organization
Establishes organizational goals
Establishes standard process
Characterizes process performance and quality of the standard process
Project
Establishes project goals
Tailors standard organizational process to create project’s defined process
Selects critical subprocesses to quantitatively manage
RUN CHART

8. Useful in evaluating future reviews
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
Quantitative Management Example (not real data) Peer Reviews – Understanding the Process
How many errors does the team typically find in reviewing an interface specification?
Useful in evaluating future reviews
Was the review effective?
Was the process different?
Is the product different?

9. Increase the effectiveness (increase the mean)
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
Quantitative Management Example (not real data) Peer Reviews – Improving the Process
Reduce the variation
Train people on the process
Create procedures/checklists
Strengthen process audits
Increase the effectiveness (increase the mean)
Train people
Create checklists
Reduce waste and re-work
Replicate best practices from other projects

10. Copyright 2003 Northrop Grumman Space and Mission Systems Corp
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
New Questions at Level 4
Which subprocesses are predictable at the project level? At the organizational level?
Should different projects control different subprocesses?
What statistical data should the organization collect?
What differences in project subprocesses are permissible? How do they impact the historical data?
Given two projects with two different subprocesses, how do I judge which is better? What does better mean? In what situations would it be better?
Can I trade cost versus quality? How do I explain this trade to my customer?

11. Maturity Level 5 Organization
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
Maturity Level 5
Preventing defects and innovation (addressing common causes of variation)
Organization
Identifies incremental and innovative improvements
Pilots improvements
Deploys and measures (quantitatively) the results
Project
Identifies causes of defects and other problems
Takes actions to prevent them from occurring in the future
RUN CHART

12. Copyright 2003 Northrop Grumman Space and Mission Systems Corp
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
New Questions at Level 5
What are reasonable organizational process and quality goals?
How radically should I change organizational processes to meet these goals? How fast?
What process changes should I make?
How do I define a defect?
Which defects are unrelated to process? How do I eliminate those from the analysis?

13. Copyright 2003 Northrop Grumman Space and Mission Systems Corp
Copyright 2003 Northrop Grumman Space and Mission Systems Corp. All Rights Reserved.
Results
Organizational-wide adoption and training of Six Sigma has resulted in a workforce that understands variation
Common language
Common toolset
Common focus on reducing variation
Results have been seen in our rapid achievement of CMMI Levels 4 and 5
4 of our organizations have now achieved Level 5