1. Process Improvement in the Aerospace Industry CMMI and Lean Six Sigma
USC CS510
The aerospace industry is desperately seeking ways to improve project performance while reducing cost. This presentation will highlight some of the challenges, and survey some of the current approaches used. Process Standards, Capability Maturity Model Integrated, Lean Six Sigma, and Agile methods will be highlighted. Since each methodology attempts to address a known problem in current development, the context in which that problem manifests itself is described, along with the rationale for how that methodology addresses it. The problem space is seen to be divided – some problems are uniquely suited for one methodology, but many problems can be tackled by a combination of methodologies. Finally, practical experience in the creation of a blended methodology, combining the best of each approach, is discussed.
Rick Hefner, Ph.D.
Northrop Grumman Corporation

2. Agenda Current Challenges Facing the Aerospace Industry
Current Industry Approaches
Capability Maturity Model Integrated
Lean Six Sigma
Northrop Grumman Approach

3. NDIA Top 5 Systems Engineering Issues (2006)
Key systems engineering practices known to be effective are not consistently applied across all phases of the program life cycle.
Insufficient systems engineering is applied early in the program life cycle, compromising the foundation for initial requirements and architecture development.
Requirements are not always well-managed, including the effective translation from capabilities statements into executable requirements to achieve successful acquisition programs.
The quantity and quality of systems engineering expertise is insufficient to meet the demands of the government and the defense industry.
Collaborative environments, including SE tools, are inadequate to effectively execute SE at the joint capability, system of systems (SoS), and system levels.
Systems Engineering Update, NDIA Top 5 Issues Workshop. July 26, Briefing by Mr. Robert Skalamera

4. Agenda Current Challenges Facing the Aerospace Industry
Current Industry Approaches
Capability Maturity Model Integrated
Lean Six Sigma
Agile
Northrop Grumman Approach

5. Heritage of Standards for Systems Engineering
2002
2002
ISO/IEC 15504
ISO/IEC
(FDIS)
(PDTR)
1998
1994
EIA
632
2002
EIA / IS 632
ISO/IEC
(Full Std)
1994
(Interim Standard)
(FDIS)
Mil-Std-499B
1974
1998
1994
1969
Mil-Std-499A
EIA/IS 731
SE CM
IEEE 1220
1998
Mil-Std-499
(Not Released)
IEEE 1220
(Trial Use)
(Interim Standard)
(Full Std)
2002
CMMI-
SE/SW/IPPD
Legend
Supersedes
Source for
Standards for Systems Engineering, Jerry Lake, 2002

6. The Frameworks Quagmire Sarah A
The Frameworks Quagmire Sarah A. Sheard, Software Productivity Consortium

7. Two Complimentary Approaches to Process Improvement
Data-Driven (e.g., Lean Six Sigma)
Clarify what your customer wants (Voice of Customer)
Critical to Quality (CTQs)
Determine what your processes can do (Voice of Process)
Statistical Process Control
Identify and prioritize improvement opportunities
Causal analysis of data
Anticipate your customers/ competitors (Voice of Business)
Design for Six Sigma
Model-Driven (e.g., CMMI)
Determine the industry best practice
Benchmarking, models
Compare your current practices to the model
Appraisal, education
Identify and prioritize improvement opportunities
Implementation
Institutionalization
Look for ways to optimize the processes

8. Agenda Current Challenges Facing the Aerospace Industry
Current Industry Approaches
Capability Maturity Model Integrated
Lean Six Sigma
Northrop Grumman Approach

9. What is the Capability Maturity Model Integrated?
The CMMI is a collection of industry best-practices for engineering, services, acquisition, project management, support, and process management
Developed under the sponsorship of DoD
Consistent with DoD and commercial standards
Three Constellations sharing common components and structure
CMMI for Development - used by engineering organizations
CMMI for Acquisition - used by buyers (e.g., govt. agencies)
CMMI for Services - used by service providers (e.g., help desk)

10. Basic Building Blocks – 22 Process Areas
Implemented by
each project
Implemented by
the organization
Project Management
Project Planning
Project Monitoring and Control
Supplier Agreement Management
Integrated Project Management)
Risk Management
Quantitative Project Management
Engineering
Requirements Development
Requirements Management
Technical Solution
Product Integration
Verification
Validation
Support
Configuration Management
Process and Product Quality Assurance
Measurement and Analysis
Decision Analysis and Resolution
Causal Analysis and Resolution
Process Management
Organizational Process Focus
Organizational Process Definition
Organizational Training
Organizational Process Performance
Organizational Performance Management

11. Expected Practices Provide Guidance for Implementation & Institutionalization
Project Planning – Implementation Project Planning - Institutionalization
SG 1 Establish Estimates
SP 1.1 Estimate the Scope of the Project
SP 1.2 Establish Estimates of Work Product and Task Attributes
SP 1.3 Define Project Lifecycle Phases
SP 1.4 Estimate Effort and Cost
SG 2 Develop a Project Plan
SP 2.1 Establish the Budget and Schedule
SP 2.2 Identify Project Risks
SP 2.3 Plan Data Management
SP 2.4 Plan the Project’s Resources
SP 2.5 Plan Needed Knowledge and Skills
SP 2.6 Plan Stakeholder Involvement
SP 2.7 Establish the Project Plan
SG 3 Obtain Commitment to the Plan
SP 3.1 Review Plans That Affect the Project
SP 3.2 Reconcile Work and Resource Levels
SP 3.3 Obtain Plan Commitment
GG 2 Institutionalize a Managed Process
GP 2.1 Establish an Organizational Policy
GP 2.2 Plan the Process
GP 2.3 Provide Resources
GP 2.4 Assign Responsibility
GP 2.5 Train People
GP 2.6 Manage Configurations
GP 2.7 Identify and Involve Relevant Stakeholders
GP 2.8 Monitor and Control the Process
GP 2.9 Objectively Evaluate Adherence
GP 2.10 Review Status with Higher Level Management
GG 3 Institutionalize a Defined Process
GP 3.1 Establish a Defined Process
GP 3.2 Collect Improvement Information

12. Practice Ratings for the Organization/Projects

13. How is the CMMI Used for Process Improvement?
IDEAL Model

14. Typical CMMI Benefits Cited in Literature
Reduced costs
33% decrease in the average cost to fix a defect (Boeing)
20% reduction in unit software costs (Lockheed Martin)
Faster Schedules
50% reduction in release turnaround time (Boeing)
60% reduction in re-work following test (Boeing)
Greater Productivity
25-30% increase in productivity within 3 years (Lockheed Martin, Harris, Siemens)
Higher Quality
50% reduction of software defects (Lockheed Martin)
Customer Satisfaction
55% increase in award fees (Lockheed Martin)

15. Agenda Current Challenges Facing the Aerospace Industry
Current Industry Approaches
Capability Maturity Model Integrated
Lean Six Sigma
Northrop Grumman Approach

16. What is Lean Six Sigma (LSS)?
Lean Six Sigma is a powerful approach to improving the work we do
LSS improvement projects are performed by teams
Teams use a set of tools and techniques to understand problems and find solutions
Lean Six Sigma integrates tools and techniques from two proven process improvement methods +

17. Six Sigma
A management philosophy based on meeting business objectives by reducing variation
A disciplined, data-driven methodology for decision making and process improvement
To increase process performance, you have to decrease variation
Greater predictability in the process
Less waste and rework, which lowers costs
Products and services that perform better and last longer
Happier customers
Defects
Too early
Too late
Delivery Time
Reduce
variation
Spread of variation too wide compared to specifications
Spread of variation narrow compared to specifications

18. DMAIC Roadmap Define Control Analyze Improve Measure
Define project scope
Identify needed data
Explore data
Identify possible solutions
Define control method
Establish formal project
Obtain data set
Characterize process & problem
Select solution
Implement
Document
Evaluate data quality
Implement (pilot as needed)
Update improvement project scope & scale
Summarize& baseline data
Evaluate
[Hallowell-Siviy 05]

19. Measure Improve Control
DMAIC Toolkit
These are a sampling of tools, not an exhaustive list. Actual tool emphasis may vary company to company. And this shows the steps where tools are LIKELY to be useful and/or initiated -- but each tool might actually be used/started in a different step. And, they may be taught in a different step
Tools should be selected based on project circumstances; however, there are several tools that seem to be universally useful:
Baseline: Snapshot of today’s process
Process Flow Map: used in baseline, can be used throughout project for reference or as tool for change (see attachment for add’l diagram)
Management by Fact, also called Dashboards, x-Up charts: 1-page summaries that capture the essence and status of the effort (see attachment for add’l diagram and an example)
7 Basic Tools: Plot, plot, plot; Histogram, Scatter Plot, Run Chart, Flow Chart, Brainstorming, Pareto Chart
5 Why’s (as part of root cause analysis): Very simple technique to help you get to root cause of anything
Tools covered in this course are in bold
Define
Measure
Analyze
Improve
Control
Benchmark
Contract/Charter
Kano Model
Voice of the Customer
Voice of the Business
Quality Function Deployment
GQIM and Indicator Templates
Data Collection Methods
Measurement System Evaluation
Cause & Effect Diagrams/ Matrix
Failure Modes & Effects Analysis
Statistical Inference
Reliability Analysis
Root Cause Analysis, including 5 Whys
Hypothesis Test
Design of Experiments
Modeling
ANOVA
Tolerancing
Robust Design
Systems Thinking
Decision & Risk Analysis
PSM Perform Analysis Model
Statistical Controls:
Control Charts
Time Series methods
Non-Statistical Controls:
Procedural adherence
Performance Mgmt
Preventive measures
As analysis applications in software increase, training curriculum might be modified to include
capture/recapture
increased emphasis on reliability growth models
Bayesian modeling
alternative control charts
increased emphasis on distribution analysis

20. Design for Six Sigma (e.g., DMADV)
Define
Verify
Analyze
Design
Measure
Define project scope
Identify customers
Explore data
Develop detailed design
Evaluate pilot
Scale-up design
Research VOC
Design solution
Establish formal project
Refine predicted performance
Document
Benchmark
Predict performance
Develop pilot
Quantify CTQs

21. Lean
Series of tools and techniques refined by Toyota and called the “Toyota Production System”
Called “Lean” by Womack, Jones and Roos in The Machine That Changed the World
Focused on increasing efficiency by eliminating non-value added process steps and wasteful practices
Being adopted world-wide by both manufacturing and transactional based organizations
Utilizes tools like “Value Stream Mapping,” “Just in Time” and “Kaizen”
LEAN FOCUS: ELIMINATE WASTE AND REDUCE CYCLE TIME

22. Wastes in Production Types of Waste CORRECTION MOTION WAITING
Repair or
Rework
Any wasted motion
to pick up parts or
stack parts. Also
wasted walking
Any non-work time
waiting for tools,
supplies, parts, etc..
Types of
Waste
PROCESSING
OVERPRODUCTION
Producing more
than is needed
before it is needed
Doing more work than
is necessary
The basic types of waste are:
Correction or repair refers to work that wasn’t done right the first time (scrap, reprocessing, repair and etc.)
Overproduction is any production done at a faster rate than required to meet customer demand
Processing refers to doing work that does not add value, such as excess paper work, doing PM’s more frequent than required, doing the job again to look busy
Conveyance refers to the excess transportation
Inventory refers to over stocking of parts and material or improper parts and material being stocked, or not enough inventory
Motion refers to movement of people or equipment that doesn’t directly add value
Waiting refers to waiting for parts, equipment, tools, instruction, work orders, etc.
INVENTORY
CONVEYANCE
Maintaining excess
inventory of raw mat’ls,
parts in process, or
finished goods.
Wasted effort to transport
materials, parts, or
finished goods into or
out of storage, or
between
processes.

23. Organizational Adoption: Roles & Responsibilities
Champions – Facilitate the leadership, implementation, and deployment
Sponsors – Provide resources
Process Owners – Responsible for the processes being improved
Master Black Belts – Serve as mentors for Black Belts
Black Belts – Lead major Six Sigma projects
Typically requires 4 weeks of training
Green Belts – Lead minor Six Sigma teams, or serve on improvement teams under a Black Belt
Typically requires 2 weeks of training

24. A Typical Lean Six Sigma Project in Aerospace
The organization notes that systems integration has been problematic on past projects (budget/schedule overruns)
A Six Sigma team is formed to scope the problem, collect data from past projects, and determine the root cause(s)
The team’s analysis of the historical data indicates that ineffective peer reviews are leaving significant errors to be found in test
Procedures and criteria for better peer reviews are written, using best practices from past projects
A pilot project uses the new peer review procedures and criteria, and collects data to verify they solve the problem
The organization’s standard process and training is modified to incorporate the procedures and criteria, to prevent similar problems on future projects

25. Agenda Current Challenges Facing the Aerospace Industry
Current Industry Approaches
Capability Maturity Model Integrated
Lean Six Sigma
Northrop Grumman Approach

26. Northrop Grumman Approach: Mission Success Requires Multiple Approaches
Risk Management
Systems Engineering
Independent Reviews & Cost Estimates
Training, Tools, & Templates
Dashboards for Enterprise-Wide Measurement
Communications & Best-Practice Sharing
Robust Governance Model (Policies, Processes, Procedures)
Program
Effectiveness
Mission Assurance & Enterprise Excellence
Process
Operations
Effectiveness
Effectiveness
CMMI Level 5 for Software, Systems, and Services
ISO 9001 and AS-9100 Certification
Six Sigma

27. Organizational Infrastructure Required for CMMI Level 3
Policies, Processes, Templates & Tools
Process Group
Training Program
Process Improvement
Measurement Repositories
Predictive Modeling
Best-Practice Libraries
Audits & Appraisals
Communications
Developing and maintaining mature processes requires significant time and investment in infrastructure

28. Northrop Grumman Approach: Institutionalizing Our Improvements
We systematically analyze quality and process data and trends to determine how to improve our processes
We improve our process assets based on internal and external best practices
Deployed to programs
Analysis
Disposition
Information
ISO/AS9100 Findings
Systems/ Software Engineering Process Group
QMS Working Group
Program Management Advisory Board
Industry Standards
Policy
Configuration Control Board
CMMI Appraisal Findings
Internal Best Practices
Process
Customer Comments
Six Sigma Projects
Procedures
Independent Audits
External Best Practices
Checklists and Guides
Lessons Learned & Metrics
Templates and Examples
Tools
eToolkit
msCAS
PAL
Increasing program efficiency
StartIt!
My MS Portal
Workbench
PCDB

29. Northrop Grumman Approach: Lessons Learned
Multiple improvement initiatives helps encourage a change in behavior as opposed to “achieving a level”
Reinforces that change (improvement) is a way of life
Benefits results from institutionalizing local improvements across the wider organization
CMMI establishes the needed mechanisms
CMMI and Lean Six Sigma compliment each other
CMMI can yield behaviors without benefits
Lean Six Sigma improvements based solely on data may miss innovative improvements (assumes a local optimum)
Training over half the staff as Lean Six Sigma Green Belts has resulted in a change of language and culture
Voice of Customer, data-driven decisions, causal analysis, etc.
Better to understand/use tools in everyday work than to adopt the “religion”