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

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

3. 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. 8/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Why We Need Standard Processes Estimating (History) Scope Cost Time Tools Deliver to Estimate (Visibility) Time Cost Quality Handling/Controlling Changes Planned Unplanned Scope Creep

9. 9/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley How to Achieve Quality Processes ISO CMM

10. 10/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley Meet ISO ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards. ISO is a network of the national standards institutes of 157 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. ISO is a non-governmental organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government. On the other hand, other members have their roots uniquely in the private sector, having been set up by national partnerships of industry associations. Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society.

11. 11/ 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 2002-07-17

12. 12/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley ISO's name Because "International Organization for Standardization" would have different acronyms in different languages ("IOS" in English, "OIN" in French for Organisation internationale de normalisation), its founders decided to give it also a short, all-purpose name. They chose "ISO", derived from the Greek isos, meaning "equal". Whatever the country, whatever the language, the short form of the organization's name is always ISO.

13. 13/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley The ISO 9000 and ISO 14000 families are among ISO's best known standards ever. ISO 9001:2000 and ISO 14001 (1996 and 2004 versions) are implemented by some 887 770 organizations in 161 countries. The ISO 9000 family addresses "quality management". This means what the organization does to fulfill: the customer's quality requirements and applicable regulatory requirements, while aiming to enhance customer satisfaction, and achieve continual improvement of its performance in pursuit of these objectives. The ISO 14000 family addresses "environmental management". This means what the organization does to: minimize harmful effects on the environment caused by its activities, and to achieve continual improvement of its environmental performance. ISO 9000 and ISO 14000

14. 14/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley ISO’s Impact In the global economy ISO 9001:2000 and ISO 14001:2004 have become thoroughly integrated with the world economy. ISO 9001:2000 is now firmly established as the globally accepted standard for providing assurance about the quality of goods and services in supplier- customer relations. ISO 14001:2004 confirms its global relevance for organizations wishing to operate in an environmentally sustainable manner. The positive roles played in globalization by ISO’s standards for quality and environmental management systems include the following: a unifying base for global businesses and supply chains – such as the automotive and oil and gas sectors a technical support for regulation – as, for example, in the medical devices sector) a tool for major new economic players to increase their participation in global supply chains, in export trade and in business process outsourcing; a tool for regional integration – as shown by their adoption by new or potential members of the European Union In the rise of services in the global economy – nearly 33 % of ISO 9001:2000 certificates and 31 % of ISO 14001 (1996 and 2004 versions) certificates in 2005 went to organizations in the service sectors.

15. 15/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley SectorStandardsPages 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)

16. 16/ 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 19011 – Guidelines on quality and/or environmental management systems auditing. ISO 10012 Measurement control system Which ISO Standards

17. 17/ 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

18. 18/ 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

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35. 35/ 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

36. 36/ 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

37. 37/ 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.

38. 38/ 10 April 2007 / EDS INTERNAL 11 April 2007 CMM vs. ISO, Sarbanes Oxley SOX Major Section 302 – Corporate Responsibility for Financial Reports Requires Executives to certify the accuracy of corporate financial reports 404 – Management Assessment of Internal Controls Requires executives and auditors to confirm the effectiveness of internal controls for financial reporting 409 – Real Time Issuers Disclose Requires any material changes in financial state of issuer be communciated quickly and with supporting data to the public

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