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Measurement within the CMMI®

                                   09 March 2004
                                    SEPG 2004
                                  Orlando, Florida



         Kent Johnson                                        Margaret Kulpa
    kent.johnson@teraquest.com                          margaret.kulpa@agiledigm.com
®   CMMI is registered in the U.S. Patent and Trademark Office by Carnegie Mellon University.
                                               1                                                ©2004
Introduction
We have been working with companies around the world
to better understand how CMMI can work for them.
Some of these countries are represented here.




Our goal with this presentation is to share a few lessons
learned from working with these world class engineering
organizations on their process improvement journey.


                           2                         ©2004
Outline
The CMMI has increased the focus on measurement
over previous models.

The topics covered include:
  • Measurement and Analysis (M&A) Process Area
  • Measurements within Engineering Process Areas
  • High Maturity (Level 4 and 5) Measurement
  • Evolution of Measurement as Processes Mature
This presentation includes the ways in which a number
of organizations have addressed this change in focus.



                          3                       ©2004
M&A Process Area - 1
Why a new Measurement and Analysis PA?
Many organization that used the family of CMMs have
learned that measurements need to be
    1. Aligned to the business objectives to provide
       benefit
    2. Used regularly in order justify the effort and cost
    3. Well defined in order for people to understand and
       compare them
    4. Communicated in an unbiased manner
Some organizations just went through the motions of
collecting the example measures to pass an assessment
and received little or no benefit.


                            4                         ©2004
M&A Process Area - 2
The new PA puts focus on
“measurement capability
that is used to support
management information
needs.”
Specific Goals
 • Measurement objectives
    and activities are aligned
    with identified
    information needs and
    objectives.
 • Measurement results
    that address identified
    information needs and
    objectives are provided.

                            5    ©2004
M&A Process Area - 3
What are information needs?
No definition in the CMMI, but the sources are identified
as including:
  • Plans – Project Plans, Strategic Plans, Business Plans, and
      Process Improvement Plans
  •   Monitoring of Project Performance
  •   Management Objectives
  •   Formal Requirements or Contractual Obligations
  •   Recurring or other troublesome management or technical
      problems
Measurement specifications
  • Define measures that are aligned to the organization through
      information needs
  •   Detailed definition or specification of what is to be measured
      (precise and unambiguous), how it is to be measured, and how
      measures should be analyzed.

                                  6                             ©2004
M&A Process Area – Summary
What people have really done regarding M&A
 • Most organizations are developing a rationale for
   why they have their current measures (not an
   analysis of what they need).
 • Few organizations are really analyzing how their
   measurement programs support business objectives
   and information needs.
 • Most organizations don’t invest serious time and
   effort into developing meaningful measurement
   specifications. Therefore their results continue to
   be disappointing.




                          7                       ©2004
Engineering Process Areas - 1
Why additional engineering measures?
Customers are looking for higher and better quality in
shorter time.
  • The Wall Street Journal developed a Tech To-Do List
    published in Nov 2003. On the top of their list is
    “Make Software More Reliable”
  • Measuring the development process can lead to
    better products.
The CMMI has increased the level of engineering detail
over the CMM.
  • This alone results in an increase in the number of
    suggested measures.
  • Many people see this amount of measurement as
    overwhelming.

                          8                        ©2004
Engineering Process Areas – 2
More measures with the addition of the Engineering PAs
  • Requirement Management (ReqM)
  • Requirement Development (RD)
  • Technical Solution (TS)
  • Product Integration (PI)
  • Verification (VER)
  • Validation (VAL)
And the multiple ways that the model states or implies
the need for measures with regards to all PAs including:
  • GP 2.8 Monitor and Control the Process [Area]
  • GP 2.10 Review Status with Higher Level
    Management
  • GP 3.2 Collect Improvement Information
  • PP and PMC Planning parameters
                           9                        ©2004
Engineering Process Areas - 3
 PAs                  Example Measures from GP 2.8
REQM Requirement volatility (percentage of requirement changes)
RD   Cost, schedule and effort expended for rework
       Defect density of requirement specifications
TS     Cost, schedule and effort expended for rework
       Percentage of requirements addressed in design
       Size and complexity of product, product-component, interfaces and
       documentation
       Defect density of technical solutions work products
PI     Product-component integration profile (e.g., assemblies planned and
       actual, and number of exceptions found
       Integration evaluation problem report trends (e.g., number written and
       number closed)
       Integration evaluation report aging (i.e., how long each problem report
       has been open)
VAL    Number of activities planned versus actual
       Validation problem report trends
       Validation problem report aging
VER    Verification profile (e.g., number activities planned versus actual, and
       the defects found)
       Number of defect detected
       Verification problem report trends
       Verification problem report aging

                                      10                                     ©2004
Engineering PAs – Summary
What people have really done regarding Engineering PA
measures
 • Most organization use effort measures related to the
   process areas to satisfy the Monitor and Control
   Requirements. This has been shown to provide little
   benefit.
 • Some organizations are using measures similar to
   the examples shown and have demonstrated
   significant improvements in product quality and less
   rework.
 • Most of the organizations that we work with have
   developed their own in house tool suites that
   provide measurement data as a side effect of
   performing the work.
                          11                       ©2004
High Maturity -1
What are high maturity measures and how do you really
use them?
Confusion exists around measurement concepts and
terms at Level 4 and the use of measurement at Level 5.
 Level 4: The CMMI does not tell you what a Process
          Performance Baseline or Process Performance
          Model looks like – nor why you want them.
 Level 5: People are confused about what is the
          difference between process improvement at
          Level 3 and continuous process improvement
          at Level 5.




                          12                       ©2004
High Maturity - 2
Level 4 is focused on predicting the performance of the
processes based on historical and project data and
managing according. Important Level 4 Concepts:
  • Event Level Measure – a measure taken at the
    completion of an event
  • Process Performance Baseline (PPB) – documents
    the historical results from a process. Used as a
    benchmark against actual project performance.
  • Process Performance Model (PPM) – describes the
    relationship among attributes of a process and its
    work products. Based on PPBs and calibrated to the
    project. Used to estimate or predict a critical project
    value that cannot be measured until later in the
    project’s life (e.g., no. of delivered defects or total
    effort).
  Source: Interpreting the CMMI

                                  13                  ©2004
High Maturity - 3
                                        Process Performance Baselines
    Status Measures
                                        Review Baseline
•   Size
                                        • Defects per page and per hour
•   Effort
                                        Productivity Baseline
•   Cost
                                        • Hours per requirement by phase
•   Schedule
                                        Effort Distribution
                                        • Percentage of effort by phase
      Event Level Measures
Hours per event - Productivity
• Requirement (defined)
                                         Process Performance Models
• Requirement (designed)
                                         Effort (estimation and
• Object Implemented
                                           prediction)
• Test Executed
                                         • New Development
Defects, Size, Hours per Event –
                                         • Maintenance
  Quality
                                         Defect Insertion and Removal
• Design Review
                                         • New Development
• Inspection
                                         • Maintenance
• Test Executed
Days Late or Early - Schedule
• Task Completed                                     Real Project Decisions


                                   14                                      ©2004
High Maturity - 4
Level 5 is focused on quantitative improvement based
on quantitative understanding of the common causes of
variation inherent in the processes. Level 5 Concepts
  • Incremental Improvements – stepwise improvement
    accomplished by making the current processes and
    tools a little better.
  • Innovative Improvements – major performance leaps
    accomplished by bringing in a significantly different
    process or technology.
  • Target Improvements – specific areas that have been
    identified as problematic, often by senior
    management (e.g., 20% decrease in complaints).
  • Common causes of variation – variation caused by
    normal and expected interactions among
    components of the process.
Source: Interpreting the CMMI

                                15                   ©2004
High Maturity 5
Process Performance Baselines
Review Baseline
• Defects per page and per hour                Quantitative Improvements
Productivity Baseline                         • Identify including Incremental,
• Hours per requirement by phase                Innovative, and Targeted
Effort Distribution                           • Analyze expected effect on PPBs
• Percentage of effort by phase               • Define and Pilot Improvements
                                              • Measure Improvements and
                                                recalculate PPBs
 Process Performance Models
 Effort (estimation and
   prediction)
 • New Development                                        Implement in the
 • Maintenance                                              Organization
 Defect Insertion and Removal
 • New Development
 • Maintenance


                            Real Project Decisions


                                     16                                  ©2004
High Maturity – Summary
Most organizations have problems collecting event level
data.
  • Many have problems with data collection systems and
      collecting enough data.
  •   Many only collect phase completion data.
Successful organizations focus on a small number of
PPBs and PPMs that are used to make real decisions, for
example
  • Review PPB, Effort Distribution PPB, and Productivity PPB
  • Estimation/Prediction PPM for effort and duration and a Defect
      Insertion and Removal Model.
Few organizations perform real continuous quantitative
improvement
  • Many do not identify and pilot their improvements
      quantitatively
  •   Few clearly demonstrate a change in performance baselines.

                                 17                           ©2004
Evolution of Measurement - 1
The CMMI has a natural evolution of measurement that
should occur as organizations strive to improve their
processes across the levels.
Most organizations encounter confusion because of
what appears to be abrupt differences in scope and
terminology.
People struggle with the apparent paradigm shifts
between the levels as they transition from Level 2 to 3 –
from Level 3 to 4 and from Level 4 to 5.




                           18                         ©2004
Evolution of Measurement - 2
Measurement concepts are actually consistent and
simply evolve through the levels.
 Level 2: primarily status measures – planned versus
          actual size, effort, cost, and schedule; also
          includes number of changes, number of non-
          conformances in product and processes
 Level 3: Adds measures for process improvement and
          quality measures including defect density and
          productivity.
 Level 4: Creation and usage of PPBs and PPMs. Looks
          like a drastic change, but PPBs and PPMs are
          based on historical data from lower levels.
 Level 5: Quantitative improvements based on baselines
          – using PPBs to plan and demonstrate
          improvements
                          19                       ©2004
Evolution of Measurement - 3

  Real
 Project          Quantitative Improvement
Decisions
               Process Performance Models

            Process Performance Baselines

               Event Level Measures

               Status Measures


                    20                  ©2004
Evolution of Measurement – Summary
Successful organizations have
  • Shown the value from lower level measures to justify
    the transition to more mature measures
  • Created useful measurement specifications that
    work through all the levels
  • Started using simple PPBs and PPMs early
Unsuccessful organizations have gone through
the actions of collecting measures with little or
no benefit – Taking the easy way out with
measures and not being ready for the next step.



                          21                         ©2004
Summary
Successful Organizations
 • Analyze how their measurement programs
   support business objectives and information
   needs
 • Invest serious time and effort into
   developing meaningful measurement
   specifications
 • Collect measures “painlessly” and as a side
   effect of performing the work
 • Focus on a small number of PPBs and PPMs
   that are used to make real decisions
 • Perform real continuous quantitative
   improvement
                      22                   ©2004
Contact Information
Contacting the Presenters:
 Kent Johnson                        Margaret Kulpa
 Director of Systems Engineering     Chief Operating Officer
 TeraQuest Metrics, Inc.             AgileDigm, Inc.

 kent.johnson@teraquest.com          margaret.kulpa@agiledigm.com
 office phone: 1.386.673.1384        office phone: 1.386.673.3600

Contacting TeraQuest:                Contracting AgileDigm
 TeraQuest Metrics, Inc.              AgileDigm, Inc.
 P.O. Box 200490                      11 Twelve Oaks Trail
 12885 Research Blvd., Suite 207      Ormond Beach, FL 32174 USA
 Austin, Texas 78720 USA              www.agiledigm.com
 www.teraquest.com




                                23                             ©2004
More Detailed Information of the Subject
                  Features includes
                     • Presents the pros and cons of
                         attempting process improvement and
                         implementing CMMI®
                     •   Guides you through a proven approach
                         for designing the process improvement
                         effort, for monitoring and controlling
                         the effort, and measuring its success
                     •   Offers advice for implementing several
                         process improvement projects
                         simultaneously to avoid added costs
                         and missteps
                     •   Discusses older methods of assessing
                         organizations and compares them to
                         the new SCAMPI method
                     •   Includes a CD-ROM with forms,
                         templates, and examples
                  Available from Auerbach / CRC Press
                  Publications and Amazon.com

                   24                                     ©2004

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Cmmi agile kulpa 2004meas cmmi[1]

  • 1. Measurement within the CMMI® 09 March 2004 SEPG 2004 Orlando, Florida Kent Johnson Margaret Kulpa kent.johnson@teraquest.com margaret.kulpa@agiledigm.com ® CMMI is registered in the U.S. Patent and Trademark Office by Carnegie Mellon University. 1 ©2004
  • 2. Introduction We have been working with companies around the world to better understand how CMMI can work for them. Some of these countries are represented here. Our goal with this presentation is to share a few lessons learned from working with these world class engineering organizations on their process improvement journey. 2 ©2004
  • 3. Outline The CMMI has increased the focus on measurement over previous models. The topics covered include: • Measurement and Analysis (M&A) Process Area • Measurements within Engineering Process Areas • High Maturity (Level 4 and 5) Measurement • Evolution of Measurement as Processes Mature This presentation includes the ways in which a number of organizations have addressed this change in focus. 3 ©2004
  • 4. M&A Process Area - 1 Why a new Measurement and Analysis PA? Many organization that used the family of CMMs have learned that measurements need to be 1. Aligned to the business objectives to provide benefit 2. Used regularly in order justify the effort and cost 3. Well defined in order for people to understand and compare them 4. Communicated in an unbiased manner Some organizations just went through the motions of collecting the example measures to pass an assessment and received little or no benefit. 4 ©2004
  • 5. M&A Process Area - 2 The new PA puts focus on “measurement capability that is used to support management information needs.” Specific Goals • Measurement objectives and activities are aligned with identified information needs and objectives. • Measurement results that address identified information needs and objectives are provided. 5 ©2004
  • 6. M&A Process Area - 3 What are information needs? No definition in the CMMI, but the sources are identified as including: • Plans – Project Plans, Strategic Plans, Business Plans, and Process Improvement Plans • Monitoring of Project Performance • Management Objectives • Formal Requirements or Contractual Obligations • Recurring or other troublesome management or technical problems Measurement specifications • Define measures that are aligned to the organization through information needs • Detailed definition or specification of what is to be measured (precise and unambiguous), how it is to be measured, and how measures should be analyzed. 6 ©2004
  • 7. M&A Process Area – Summary What people have really done regarding M&A • Most organizations are developing a rationale for why they have their current measures (not an analysis of what they need). • Few organizations are really analyzing how their measurement programs support business objectives and information needs. • Most organizations don’t invest serious time and effort into developing meaningful measurement specifications. Therefore their results continue to be disappointing. 7 ©2004
  • 8. Engineering Process Areas - 1 Why additional engineering measures? Customers are looking for higher and better quality in shorter time. • The Wall Street Journal developed a Tech To-Do List published in Nov 2003. On the top of their list is “Make Software More Reliable” • Measuring the development process can lead to better products. The CMMI has increased the level of engineering detail over the CMM. • This alone results in an increase in the number of suggested measures. • Many people see this amount of measurement as overwhelming. 8 ©2004
  • 9. Engineering Process Areas – 2 More measures with the addition of the Engineering PAs • Requirement Management (ReqM) • Requirement Development (RD) • Technical Solution (TS) • Product Integration (PI) • Verification (VER) • Validation (VAL) And the multiple ways that the model states or implies the need for measures with regards to all PAs including: • GP 2.8 Monitor and Control the Process [Area] • GP 2.10 Review Status with Higher Level Management • GP 3.2 Collect Improvement Information • PP and PMC Planning parameters 9 ©2004
  • 10. Engineering Process Areas - 3 PAs Example Measures from GP 2.8 REQM Requirement volatility (percentage of requirement changes) RD Cost, schedule and effort expended for rework Defect density of requirement specifications TS Cost, schedule and effort expended for rework Percentage of requirements addressed in design Size and complexity of product, product-component, interfaces and documentation Defect density of technical solutions work products PI Product-component integration profile (e.g., assemblies planned and actual, and number of exceptions found Integration evaluation problem report trends (e.g., number written and number closed) Integration evaluation report aging (i.e., how long each problem report has been open) VAL Number of activities planned versus actual Validation problem report trends Validation problem report aging VER Verification profile (e.g., number activities planned versus actual, and the defects found) Number of defect detected Verification problem report trends Verification problem report aging 10 ©2004
  • 11. Engineering PAs – Summary What people have really done regarding Engineering PA measures • Most organization use effort measures related to the process areas to satisfy the Monitor and Control Requirements. This has been shown to provide little benefit. • Some organizations are using measures similar to the examples shown and have demonstrated significant improvements in product quality and less rework. • Most of the organizations that we work with have developed their own in house tool suites that provide measurement data as a side effect of performing the work. 11 ©2004
  • 12. High Maturity -1 What are high maturity measures and how do you really use them? Confusion exists around measurement concepts and terms at Level 4 and the use of measurement at Level 5. Level 4: The CMMI does not tell you what a Process Performance Baseline or Process Performance Model looks like – nor why you want them. Level 5: People are confused about what is the difference between process improvement at Level 3 and continuous process improvement at Level 5. 12 ©2004
  • 13. High Maturity - 2 Level 4 is focused on predicting the performance of the processes based on historical and project data and managing according. Important Level 4 Concepts: • Event Level Measure – a measure taken at the completion of an event • Process Performance Baseline (PPB) – documents the historical results from a process. Used as a benchmark against actual project performance. • Process Performance Model (PPM) – describes the relationship among attributes of a process and its work products. Based on PPBs and calibrated to the project. Used to estimate or predict a critical project value that cannot be measured until later in the project’s life (e.g., no. of delivered defects or total effort). Source: Interpreting the CMMI 13 ©2004
  • 14. High Maturity - 3 Process Performance Baselines Status Measures Review Baseline • Size • Defects per page and per hour • Effort Productivity Baseline • Cost • Hours per requirement by phase • Schedule Effort Distribution • Percentage of effort by phase Event Level Measures Hours per event - Productivity • Requirement (defined) Process Performance Models • Requirement (designed) Effort (estimation and • Object Implemented prediction) • Test Executed • New Development Defects, Size, Hours per Event – • Maintenance Quality Defect Insertion and Removal • Design Review • New Development • Inspection • Maintenance • Test Executed Days Late or Early - Schedule • Task Completed Real Project Decisions 14 ©2004
  • 15. High Maturity - 4 Level 5 is focused on quantitative improvement based on quantitative understanding of the common causes of variation inherent in the processes. Level 5 Concepts • Incremental Improvements – stepwise improvement accomplished by making the current processes and tools a little better. • Innovative Improvements – major performance leaps accomplished by bringing in a significantly different process or technology. • Target Improvements – specific areas that have been identified as problematic, often by senior management (e.g., 20% decrease in complaints). • Common causes of variation – variation caused by normal and expected interactions among components of the process. Source: Interpreting the CMMI 15 ©2004
  • 16. High Maturity 5 Process Performance Baselines Review Baseline • Defects per page and per hour Quantitative Improvements Productivity Baseline • Identify including Incremental, • Hours per requirement by phase Innovative, and Targeted Effort Distribution • Analyze expected effect on PPBs • Percentage of effort by phase • Define and Pilot Improvements • Measure Improvements and recalculate PPBs Process Performance Models Effort (estimation and prediction) • New Development Implement in the • Maintenance Organization Defect Insertion and Removal • New Development • Maintenance Real Project Decisions 16 ©2004
  • 17. High Maturity – Summary Most organizations have problems collecting event level data. • Many have problems with data collection systems and collecting enough data. • Many only collect phase completion data. Successful organizations focus on a small number of PPBs and PPMs that are used to make real decisions, for example • Review PPB, Effort Distribution PPB, and Productivity PPB • Estimation/Prediction PPM for effort and duration and a Defect Insertion and Removal Model. Few organizations perform real continuous quantitative improvement • Many do not identify and pilot their improvements quantitatively • Few clearly demonstrate a change in performance baselines. 17 ©2004
  • 18. Evolution of Measurement - 1 The CMMI has a natural evolution of measurement that should occur as organizations strive to improve their processes across the levels. Most organizations encounter confusion because of what appears to be abrupt differences in scope and terminology. People struggle with the apparent paradigm shifts between the levels as they transition from Level 2 to 3 – from Level 3 to 4 and from Level 4 to 5. 18 ©2004
  • 19. Evolution of Measurement - 2 Measurement concepts are actually consistent and simply evolve through the levels. Level 2: primarily status measures – planned versus actual size, effort, cost, and schedule; also includes number of changes, number of non- conformances in product and processes Level 3: Adds measures for process improvement and quality measures including defect density and productivity. Level 4: Creation and usage of PPBs and PPMs. Looks like a drastic change, but PPBs and PPMs are based on historical data from lower levels. Level 5: Quantitative improvements based on baselines – using PPBs to plan and demonstrate improvements 19 ©2004
  • 20. Evolution of Measurement - 3 Real Project Quantitative Improvement Decisions Process Performance Models Process Performance Baselines Event Level Measures Status Measures 20 ©2004
  • 21. Evolution of Measurement – Summary Successful organizations have • Shown the value from lower level measures to justify the transition to more mature measures • Created useful measurement specifications that work through all the levels • Started using simple PPBs and PPMs early Unsuccessful organizations have gone through the actions of collecting measures with little or no benefit – Taking the easy way out with measures and not being ready for the next step. 21 ©2004
  • 22. Summary Successful Organizations • Analyze how their measurement programs support business objectives and information needs • Invest serious time and effort into developing meaningful measurement specifications • Collect measures “painlessly” and as a side effect of performing the work • Focus on a small number of PPBs and PPMs that are used to make real decisions • Perform real continuous quantitative improvement 22 ©2004
  • 23. Contact Information Contacting the Presenters: Kent Johnson Margaret Kulpa Director of Systems Engineering Chief Operating Officer TeraQuest Metrics, Inc. AgileDigm, Inc. kent.johnson@teraquest.com margaret.kulpa@agiledigm.com office phone: 1.386.673.1384 office phone: 1.386.673.3600 Contacting TeraQuest: Contracting AgileDigm TeraQuest Metrics, Inc. AgileDigm, Inc. P.O. Box 200490 11 Twelve Oaks Trail 12885 Research Blvd., Suite 207 Ormond Beach, FL 32174 USA Austin, Texas 78720 USA www.agiledigm.com www.teraquest.com 23 ©2004
  • 24. More Detailed Information of the Subject Features includes • Presents the pros and cons of attempting process improvement and implementing CMMI® • Guides you through a proven approach for designing the process improvement effort, for monitoring and controlling the effort, and measuring its success • Offers advice for implementing several process improvement projects simultaneously to avoid added costs and missteps • Discusses older methods of assessing organizations and compares them to the new SCAMPI method • Includes a CD-ROM with forms, templates, and examples Available from Auerbach / CRC Press Publications and Amazon.com 24 ©2004