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Process Improvement in the Aerospace Industry
CMMI and Lean Six Sigma
Rick Hefner, Ph.D.Northrop Grumman Corporation
USC CS510
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Agenda
• Current Challenges Facing the Aerospace Industry
• Current Industry Approaches– Capability Maturity Model Integrated– Lean Six Sigma
• Northrop Grumman Approach
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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, 2006. Briefing by Mr. Robert Skalamera
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Agenda
• Current Challenges Facing the Aerospace Industry
• Current Industry Approaches– Capability Maturity Model Integrated– Lean Six Sigma– Agile
• Northrop Grumman Approach
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Heritage of Standards for Systems Engineering
EIA / IS 632
ISO/IEC 15288
Mil-Std-499BMil-Std-
499A
1994
1994
1994
1998
2002
1974
(Not Released)Mil-Std-499
1969
(Trial Use)IEEE 1220
1998
(Full Std)
LegendLegendSupersedesSource for
EIA632
1998
EIA/IS 731
SE CM
IEEE 1220
(Full Std)(Interim Standard)
2002
CMMI-
SE/SW/IPPD
(Interim Standard)
(FDIS)
ISO/IEC 19760
2002
(PDTR)
2002
ISO/IEC 15504
(FDIS)
Standards for Systems Engineering, Jerry Lake, 2002
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The Frameworks QuagmireSarah A. Sheard, Software Productivity Consortium
http://stsc.hill.af.mil/crosstalk/1997/sep/frameworks.asp
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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
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Agenda
• Current Challenges Facing the Aerospace Industry
• Current Industry Approaches– Capability Maturity Model Integrated– Lean Six Sigma
• Northrop Grumman Approach
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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)
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Basic Building Blocks – 22 Process Areas
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
Implemented byeach project
Implemented bythe organization
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Expected Practices Provide Guidancefor Implementation & 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
Project Planning – Implementation Project Planning - Institutionalization
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Practice Ratings for the Organization/Projects
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How is the CMMI Used for Process Improvement?
www.sei.cmu.edu/ideal/
IDEAL Model
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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)
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Agenda
• Current Challenges Facing the Aerospace Industry
• Current Industry Approaches– Capability Maturity Model Integrated– Lean Six Sigma
• Northrop Grumman Approach
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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
+
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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
Defects Defects
Too early Too late
Delivery Time
Reduce variation
Delivery Time
Too early Too late
Spread of variation too wide compared to
specifications
Spread of variation narrow compared to
specifications
• Greater predictability in the process
• Less waste and rework, which lowers costs
• Products and services that perform better and last longer
• Happier customers
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DMAIC Roadmap
Define ControlAnalyze ImproveMeasure
Define project scope
Establish formal project
Identify needed data
Obtain data set
Evaluate data quality
Summarize& baseline data
Explore data
Characterize process & problem
Identify possible solutions
Implement (pilot as needed)
Define control method
Implement
Update improvement project scope & scale
Document
Select solution
Evaluate
[Hallowell-Siviy 05]
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DMAIC Toolkit
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
Statistical Controls:
Control Charts
Time Series methods
Non-Statistical Controls:
Procedural adherence
Performance Mgmt
Preventive measures
ControlImproveMeasureDefine Analyze
Design of Experiments
Modeling
ANOVA
Tolerancing
Robust Design
Systems Thinking
Decision & Risk Analysis
PSM Perform Analysis Model
Cause & Effect Diagrams/ Matrix
Failure Modes & Effects Analysis
Statistical Inference
Reliability Analysis
Root Cause Analysis, including 5 Whys
Hypothesis Test
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Design for Six Sigma (e.g., DMADV)
Define VerifyAnalyze DesignMeasure
Define project scope
Establish formal project
Identify customers
Research VOC
Benchmark
Quantify CTQs
Explore data
Design solution
Develop detailed design
Develop pilot
Evaluate pilot
Scale-up design
Predict performance
Document
Refine predicted performance
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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
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Wastes in Production
•
Typesof
Waste
CORRECTION
WAITING
PROCESSING
MOTION
INVENTORYCONVEYANCE
OVERPRODUCTION
Repair orRework Any wasted motion
to pick up parts or stack parts. Also wasted walking
Wasted effort to transportmaterials, parts, or finished goods into or out of storage, or between processes.
Producing morethan is needed before it is needed
Maintaining excessinventory of raw mat’ls,parts in process, orfinished goods.
Doing more work thanis necessary
Any non-work timewaiting for tools, supplies, parts, etc..
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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
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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
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Agenda
• Current Challenges Facing the Aerospace Industry
• Current Industry Approaches– Capability Maturity Model Integrated– Lean Six Sigma
• Northrop Grumman Approach
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Northrop Grumman Approach:
Mission Success Requires Multiple Approaches
Process Effectiveness
Program Effectiveness
MissionAssurance & Enterprise Excellence
Operations Effectiveness
Dashboards for Enterprise-Wide Measurement
Communications & Best-Practice Sharing
Robust Governance Model (Policies,
Processes, Procedures)
Risk Management
Systems Engineering
Independent Reviews & Cost Estimates
Training, Tools, & Templates
CMMI Level 5 for Software, Systems, and
Services
ISO 9001 and AS-9100 Certification
Six Sigma
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Organizational Infrastructure Required for CMMI Level 3
Policies, Processes,Templates & Tools
Best-Practice Libraries
Process Group
Audits & AppraisalsMeasurement RepositoriesPredictive Modeling
Developing and maintaining mature processes requires significant time and investment in infrastructure
Developing and maintaining mature processes requires significant time and investment in infrastructure
Process ImprovementTraining Program
Communications
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15
20
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Northrop Grumman Approach:
Institutionalizing Our Improvements
InternalBest
Practices
ISO/AS9100 Findings
CMMI Appraisal Findings
Policy
Procedures
Process
eToolkit PAL
WorkbenchStartIt! My MS Portal
Tools
Information
Checklists and Guides
Templates and Examples
Disposition
Independent Audits
• Systems/ Software Engineering Process Group
• QMS Working Group
• Program Management Advisory BoardLessons
Learned & Metrics
Analysis
Customer Comments
Configuration Control Board
ExternalBest
Practices
Industry Standards
Six Sigma Projects
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 Deploye
d to program
s
Increasing program efficiency
msCAS
PCDB
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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”
