Application of the CMMI SM to Plan and Control Life Cycle Costs

1. Application of the CMMISM 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. Introduction FY 08 • Agility to successfully respond to rapidly changing business environments and customer priorities is critical to long term survivability. • Infrastructure support is expected to provide more services while minimizing costs over the life cycle of technology programs. • 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. • Application of the CMMI model practices and SCAMPISM appraisal methods provide a common framework to achieve capability and maturity in both the technology programs and infrastructure support functions. Your Competition Your Life Cycle Cost Planners

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

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

5. Organizational Process Improvement Via CMMI Infrastructure Projects Finance Contracts Security HR Technology Projects Software System Engineering Systems Integration CMMI Model Practices are: 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. Process Improvement Investment Strategy“Applying the CMMI Across the Enterprise” 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. CMMI HR Security Finance Contracts Line Structure Technology Projects Business Development Safety

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

8. Predictive infrastructure processes Infrastructure Projects Finance Contracts Security HR Implementing Planning and Controlling Future Life Cycle Costs • 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. 5 4 3 2 1

9. Integrating Process Improvement Initiatives Infrastructure Projects Finance Contracts Security HR Enterprise Process Improvement Team Technology Projects Software System Engineering Systems Integration • 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. 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

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

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

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

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

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

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.