1/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley CMM vs. ISO David S. Craft CIRM, PMP Engineering & Manufactuing Services

2/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Agenda Who Am I CMM ISO Similarities And Differences Sarbanes Oxley

3/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Who Am I VISTA Volunteer Industrial Engineer Chief Industrial Engineer Manager Production Planning & Control Inventory Control Manager Shift Supervisor Materials Manager Consultant Project Manager Information Specialist, Senior Team Leader Managing Consultant Engineering and Manufacturing Services Applications Service Delivery Internal ISO Auditor

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8/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Federal government cannot distinguish between competing bids for software development Early 1980’s - Federal Government (Congress) awards a contract to establish the Software Engineering Institute (SEI) at Carnegie Mellon University (sponsored by the DOD) SEI begins work on a Process Maturity Framework for judging a company’s capability to produce software The Process Maturity Framework evolves into the Capability Maturity Model (CMM) August 1991 – SW-CMM Version 1 released SE-CMM developed by the Enterprise Process Improvement Collaboration (EPIC) CMM Version 1.1 released Begin developing CMMI (CMM Integrated) 2002 – CMMI SE/SW/IPPD/SS Version 1.1 introduced 200? - CMMI Version 1.2 Released CMMI History

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27/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Began with British Military standards ISO organization was established in 1947 Headquartered in Geneva, Switzerland Currently composed of 148 National Standard Bodies and 2,981 technical bodies As of 12/31/05 there are 15,649 International Standards embodied in 573,494 pages of English text ISO History

28/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley What are standards? Standards are documented agreements containing technical specifications or other precise criteria to be used consistently as rules, guidelines, or definitions of characteristics, to ensure that materials, products, processes and services are fit for their purpose. For example, the format of the credit cards, phone cards, and "smart" cards that have become commonplace is derived from an ISO International Standard. Adhering to the standard, which defines such features as an optimal thickness (0,76 mm), means that the cards can be used worldwide. International Standards thus contribute to making life simpler, and to increasing the reliability and effectiveness of the goods and services we use. Last modified

29/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley SectorStandard s Pages Generalities, Infrastructure and Sciences1,40649,761 Health, Safety and Environment65820,252 Engineering Technologies4,099169,843 Electronics, Information Technology and Telecommunications 2,447161,132 Transport and Distribution of Goods1,71044,918 Agriculture and Food Technology95420,335 Materials Technology3,94393,121 Construction31111,068 Special Technologies1213,064 Total15,649573,494 Where are the Standards (12/31/05)

30/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley The ISO family includes: ISO 9000:2000 – Quality Management Systems – Fundamentals and vocabulary ISO 9001:2000 – Quality Management Systems - Requirements ISO 9004:2000 – Quality Management Systems – Guidelines for performance improvement ISO – Guidelines on quality and/or environmental management systems auditing. ISO Measurement control system Which ISO Standards

31/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Quality System Documentation Procedures Records/Documentation QualityManual Work/JobInstructions Level 1 Defines Approach and Responsibility Level 2 Defines Who, What, When Level 3 Answers How Level 4 Results: shows that the system is operating

32/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley ISO 9001:2000 Structure 4.Quality Management System 4.1 General requirements 4.2 Document requirements 5. Management Responsibility 5.1 Management commitment 5.2 Customer focus 5.3 Quality policy 5.4 Planning 5.5 Responsibility, authority, communication 5.6 Management review 6.Resource Management 6.1 Provision of resources 6.2 Human resources 6.3 Infrastructure 6.4 Work environment 7.Product realization 7.1 Planning of product realization 7.2 Customer-related processes 7.3 Design and development 7.4 Purchasing 7.5 Production and service provision 7.6 Control of monitoring and measuring devices 8.Measurement, Analysis & Improvement 8.1 General 8.2 Monitoring and measurement 8.3 Control of nonconforming product 8.4 Analysis of data 8.5 Improvement

33/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Both require the organization be explicit about what their processes and quality systems are Say what you do; do what you say The organization records and tracks data for objective analysis Require strong management support to succeed Provide a structured and measured approach to quality improvement Require an outside audit for “certification” Both are refined/improved over time Similarities

34/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Differences ISO 9000SW-CMMI Outwardly focusedInwardly focused Minimum requirements with implied continuous improvements Explicit continuous quality improvement Not specific to any one industry or service Software focus Registration DocumentNo documentation Continual AuditsNo follow up audits

35/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Sarbanes-Oxley Implications With its more than 300 discrete points of enforceable law, this is the most significant piece of account legislation passed since the formation of the SEC in 1933 SOX was passed with the specific intent of increasing accountability and attempting to install ethical behavior in financial reporting and business operations. With this increase spotlight on reporting, companies must invest resources and focus into their internal control process The Act created the Public Company Accounting Oversight Board (PCAOB) to oversee the activities of the auditing profession and mandated reforms to enhance corporate and criminal fraud accountability. A goal of SOX legislation is to continually improve the transparency of financial and business events that can impact the accuracy and future validity of financial statements. Projects to improve processes and regular review of controls will become common-place activities as compliance evolves. Tools that simplify project completion and track status will better enable organization to cost-effectively undertake these projects.

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