1. Application of the CMMI SM to Plan and Control Life Cycle Costs Dr. Mary Anne Herndon Science Applications International Corporation (SAIC) November, 2003  CMM, Capability Maturity Model, and Capability Maturity Modeling are registered in the U.S. Patent and Trademark Office. SM CMMI is a service mark of Carnegie Mellon University. SM SCAMPI is a service mark of Carnegie Mellon University.

2. 2 Introduction 1.Agility to successfully respond to rapidly changing business environments and customer priorities is critical to long term survivability. 2.Infrastructure support is expected to provide more services while minimizing costs over the life cycle of technology programs. 3.Planning and controlling life cycle costs needs to focus on implementing capable/mature processes for the infrastructure support services as well as the technology programs. 4.Application of the CMMI model practices and SCAMPI SM appraisal methods provide a common framework to achieve capability and maturity in both the technology programs and infrastructure support functions. FY 08 Your Life Cycle Cost Planners Your Competition

3. 3 Challenges in Planning & Controlling Life Cycle Costs Infrastructure SupportSE/SI/SW Technology Contract Administration 1.Finance 2.Contracts 3.HR 4.Security Service/Product Implementation 1.Culture Sustainment 2.Dynamic Service Levels 3.Emerging Technologies 4.Changes in Competition FY 05 FY 06 FY 07

4. 4 Perpetuating Stovepipes: Organizational Process Improvement - Parallel Strategies - Finance Contracts Security HR Six Sigma Balanced Scorecard Lean, ISO Technology Programs Software System Engineering CMMI S/W CMM EIA 731, ISO Six Sigma Enterprise ROI ? Infrastructure Services

5. 5 Organizational Process Improvement Via CMMI Technology Projects Software System Engineering Systems Integration CMMI Model Practices are: Infrastructure Projects Finance Contracts Security HR Applicable to product/services domains Most frequently applied in organizations to implement process improvement in technology projects Infrequently applied to improve infrastructure support services (paradoxical as support services are permanent but increasing cost components over the life cycle) Enterprise model (top down) Common set of good management practices Standard appraisal method Integration of process improvement initiatives

6. 6 Process Improvement Investment Strategy “ Applying the CMMI Across the Enterprise” CMMI Implementing CMMI model practices across both infrastructure support services and technology domains integrates process improvement into the Enterprise using a common set of good management practices and appraisal method. HR Contracts Line Structure Technology Projects Finance Safety Security Business Development

7. 7 CMMI Model Applications to Planning & Controlling Life Cycle Costs Infrastructure Support Services Contract Administration 1.Finance 2.Contracts 3.HR 4.Security SE/SI/SW Technology Service/Product Implementation 1.Sustainment 2.Dynamic Service levels 3.Emerging Technologies 4.Changes in Competition Project Planning & Monitoring & Control Process & Product Quality Assurance Risk Management Measurement & Analysis PPPMC RSKM M&A PPQA CMMI Practices Are Applicable to Service Organizations

8. 8 Implementing Planning and Controlling Future Life Cycle Costs Infrastructure Projects Finance Contracts Security HR Focus on building process improvement equity in infrastructure support services & technology projects using CMMI and SCAMPI. Technology projects are transient – infrastructure support services are not. Set process performance goals for infrastructure support services. Use practices in higher capability PAs to implement processes to stabilize and predict cost performance. Predictive infrastructure services processes are important tools in planning and controlling future life cycle costs. Predictive infrastructure processes 1 2 3 4 5

9. 9 Integrating Process Improvement Initiatives Technology Projects Software System Engineering Systems Integration Infrastructure Projects Finance Contracts Security HR Enterprise Process Improvement Team Prioritize and select “projects” based upon business goals ( e.g. minimizing and predicting support infrastructure life cycle costs). Define charter for Enterprise Process Improvement team and select members. Develop and staff CMMI implementation project. Assess process improvement progress (SCAMPI).

10. 10 Implementation Tips in Applying CMMI Practices to Infrastructure Support Services Recognize that infrastructure services are PROJECTS with: requirements, schedules, resources, measurements and risks and need appropriate levels of QA, CM, training and stakeholder involvement. Plan infrastructure process improvement projects in parallel with technology projects. Provide CMMI training to infrastructure support teams. Include experts in infrastructure support functions on SCAMPI teams Implementation TipsCMMI PAs 1. Projectize infrastructure functions. Collect, analyze and manage requirements. PP, PMC, IPM, PPQA, CM, RD, REQM 2. Develop/implement measurements. M&A 3. Develop/integrate risk management. RSKM 4. Appraise infrastructure or enterprise progress using SCAMPI methods OPF

11. 11 Annual Plan PP, PMC, IPM Corporate Homepages Budget built from estimates Process Flows Training Program Overview Presentations ISG Process Guidance Effort, Cost Plan for Training Lifecycle, Stakeholders, Schedule, Etc. Scope, Resources Scope, Resources, Training Needs Communicate Plan Process Guidance Process Flows Participating infrastructure support organizations 1. Implementing Project Planning (PP) and Monitoring and Control (PMC), Integrated Management (IPM) Process Areas REVIEWS/AUDITS CFI A-9 Head Count AAP T&M Certs PPQA Items Baseline Releases Change control Audits Stop Light Report provides a “health check” by integrating the results of all the functional area audits and reviews REQUIREMENTS Planning Guidance Revenue Profits Legal CM REQM & RM

12. 12 Annual Plan Requirements Management Corporate Homepages FA Process Flows 3-Year Strategic Plan ISG Requirements Stakeholders Policies include Reqs Manage Reqs FA Requirements Stakeholders Work Plans Requirements Baseline Manage Changes Inconsistencies Identified Commitment Work Plans Management Annual Planning Guidance Corporate Requirements Stakeholders Mid-year Plan ISG Process Guidance Group Guidance Requirements Baseline Manage Changes Business Planning Process (PC Plan) Corporate Homepages (CFIs) Business Plan Performance Tracking (CFI A-9) Mid-year Forecast Corporate Infrastructure Managers REPORTS Finance Head Count T&M Certs REVIEWS/AUDITS CFI A-9 Head Count AAP T&M Certs Dash Board Analysis 2. Implementing Measurement & Analysis (M&A) PA. Thresholds

13. 13 Annual Plan Requirements Management Corporate Homepages 3-Year Strategic Plan ISG Requirements Stakeholders FA Requirements Stakeholders Work Plans Requirements Baseline Manage Changes Inconsistencies Identified Commitment Work Plans Management Annual Planning Guidance Corporate Requirements Stakeholders Mid-year Plan ISG Process Guidance Group Guidance Requirements Baseline Manage Changes Business Planning Process Corporate Homepages Business Plan Performance Tracking Mid-year Planning Process Corporate Formal risk tracking Formal risk tracking Infrastructure Managers Formal risk identification Finance Contracts HR 3. Implementing the Risk Management (RSKM) Process Area REPORTS Finance Head Count AAP T&M Certs Risks & Probability QRAM Security

14. 14 4. Implementing Organizational Process Focus (OPF) Process Area. Proxy: Technology Projects SCAMPI Appraisal Team Proxy: Infrastructure Projects Artifacts SCAMPI Benchmark OPF

15. 15 Progress To-Date Leveraged Technology S/W CMM ML 3 July 2002 Infrastructure & Technology Class C Appraisals Feb 2003 April 2003 TBD Dec 2002 SE/SI Services contract CMMI ML 2 Class A CL 3 PP, PMC, M&A, PPQA, IPM, RSKM, CM, RM,SAM Class B Appraisal July 2003 Organization Class A CMMI ML 3 Appraisal Sept 2003 Proxy: Technology Projects Infrastructure Projects

16. 16 Summary Infrastructure support services and technology projects are BOTH necessary components of life cycle costs to predict and control. Infrastructure support services are permanent residents while any specific technology program is transient. Implementing CMMI model practices across the organization provides a common framework to preserve and build upon process improvement equity. The SCAMPI appraisal method provides a common method to measure the Enterprise’s progress in meeting process improvement goals.