CMMI ACQUISITION MODEL (CMMI- -ACQ): ACQ): CMMI ACQUISITION MODEL - - PowerPoint PPT Presentation

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CMMI ACQUISITION MODEL (CMMI- -ACQ): ACQ): CMMI ACQUISITION MODEL - - PowerPoint PPT Presentation

CMMI ACQUISITION MODEL (CMMI- -ACQ): ACQ): CMMI ACQUISITION MODEL (CMMI DRIVING PROCESS IMPROVEMENT DRIVING PROCESS IMPROVEMENT SEPG Conference - March, 2008 Dr. Richard Frost Global Director, Systems Process and Program Management General


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  • Dr. Richard Frost

Global Director, Systems Process and Program Management

General Motors Corporation

SEPG Conference - March, 2008

CMMI ACQUISITION MODEL (CMMI CMMI ACQUISITION MODEL (CMMI-

  • ACQ):

ACQ):

DRIVING PROCESS IMPROVEMENT DRIVING PROCESS IMPROVEMENT

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SLIDE 2

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Agenda Agenda

  • Overview

Overview

  • GM IS&S and the CMMI for Acquisition

GM IS&S and the CMMI for Acquisition

  • CMMI

CMMI-

  • ACQ Integration at General Motors

ACQ Integration at General Motors

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SLIDE 3

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Overview Overview

  • General Motors now acquires 100% of its IT solutions

General Motors now acquires 100% of its IT solutions

  • There was no maturity model for organizations that

There was no maturity model for organizations that acquire technology acquire technology

  • General Motors partnered with the Software

General Motors partnered with the Software Engineering Institute (SEI) to develop the CMMI Engineering Institute (SEI) to develop the CMMI-

  • ACQ

ACQ

  • General Motors was the first commercial enterprise to

General Motors was the first commercial enterprise to be appraised utilizing the CMMI be appraised utilizing the CMMI-

  • ACQ

ACQ

  • The best practices encompassed in the CMMI

The best practices encompassed in the CMMI-

  • ACQ

ACQ drive quality throughout the IT acquisition process drive quality throughout the IT acquisition process

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SLIDE 4

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General Motors Products General Motors Products

1 in every 6 cars in the world is from the GM 1 in every 6 cars in the world is from the GM

GMC GMC Cadillac Cadillac Saturn Saturn Vauxhall Vauxhall Opel Opel Buick Buick Daewoo Daewoo Pontiac Pontiac Hummer Hummer Holden Holden Chevrolet Chevrolet Saab Saab

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SLIDE 5

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GM GM’ ’s Profile s Profile

  • 280,000 employees worldwide

280,000 employees worldwide

  • $207 billion revenue in 2006

$207 billion revenue in 2006

  • Products sold in more than 200 countries

Products sold in more than 200 countries

  • Sold more than 9 million cars and trucks in 2006

Sold more than 9 million cars and trucks in 2006

  • 181 Manufacturing facilities in 35 countries

181 Manufacturing facilities in 35 countries

  • 14,000+ dealers in North America alone

14,000+ dealers in North America alone

  • $89 billion of direct materials purchased annually

$89 billion of direct materials purchased annually

  • 14 million pounds of material received daily

14 million pounds of material received daily

  • Approximately 5,000 parts in each vehicle

Approximately 5,000 parts in each vehicle

  • 375 million square feet of Manufacturing space including

375 million square feet of Manufacturing space including Joint Ventures Joint Ventures

  • 3,200 sources provide delivery "just in time"

3,200 sources provide delivery "just in time"

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SLIDE 6

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GM’s Global Design & Engineering Centers GM GM’ ’s Global Design & s Global Design & Engineering Centers Engineering Centers

GM’s Global Design & Engineering Centers GM GM’ ’s Global s Global Design & Engineering Centers Design & Engineering Centers

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15 Design Centers in 15 Design Centers in 12 Countries 12 Countries

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SLIDE 7

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GM GM’ ’s Manufacturing Plants s Manufacturing Plants

181 Manufacturing 181 Manufacturing Plants in 35 Countries Plants in 35 Countries

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GM is a Tightly Integrated Global Company GM is a Tightly Integrated Global Company

The Global Environment The Global Environment

  • Truly 24x7

Truly 24x7 – – we are always working somewhere we are always working somewhere

  • Region, country and brand stand

Region, country and brand stand-

  • alone structures no longer

alone structures no longer exist exist

  • Suppliers and joint ventures are integral to the model

Suppliers and joint ventures are integral to the model

Drives Drives

  • Global collaboration

Global collaboration

  • Real

Real-

  • time access to critical business information

time access to critical business information

  • Supply chain visibility

Supply chain visibility

  • Global regulatory requirements

Global regulatory requirements

  • Always

Always-

  • on infrastructure (no downtime)
  • n infrastructure (no downtime)
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SLIDE 9

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GM has been acquiring GM has been acquiring – – not not developing developing – – IT Systems for decades IT Systems for decades

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SLIDE 10

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Evolution of GM IT Evolution of GM IT Evolution of GM IT

IT IT Supplier Supplier

First Generation 1984-1996 First Generation 1984-1996 Second Generation 1996-2003 Second Generation 1996-2003 Third Generation 2003→ Third Generation 2003→

IT Supplier IT IT Supplier Supplier IT Supplier IT IT Supplier Supplier IT Supplier IT IT Supplier Supplier IT Supplier IT IT Supplier Supplier IT Supplier IT IT Supplier Supplier IT Supplier IT Supplier

Common E nterprise Management Processes Common Common E nterprise E nterprise Management Management Processes Processes

IT Supplier IT IT Supplier Supplier IT Supplier IT IT Supplier Supplier IT Supplier IT IT Supplier Supplier IT Supplier IT IT Supplier Supplier IT Supplier IT IT Supplier Supplier IT Supplier IT Supplier

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SLIDE 11

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The Challenge The Challenge

How does GM structure the vendor How does GM structure the vendor relationship in the 3 relationship in the 3rd

rd generation out

generation out-

  • sourced environment?

sourced environment?

Leverage best-in-class suppliers Become more nimble Focus on our core competencies Be better positioned to take advantage of new technologies Assure quality of all systems

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SLIDE 12

2007 Global IT Industry 2007 Global IT Industry

Total IT Operating Budgets Total IT Purchases .5 1.0 1.5 2.0 2.5

$2.13 Trillion $1.55 Trillion

* Source: Forrester

75% of every dollar in IT spent is on

Acquisition

Trillions of $US

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SLIDE 13

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Research of IT Models Research of IT Models

CMM, CMMI SPICE IEEE COBIT ITIL

Findings: Findings:

  • Enterprises were acquiring many systems
  • Models focused on development and operation
  • No models adequately support the acquirer
  • Industry was looking for an acquisition model
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SLIDE 14

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Software Engineering Institute Software Engineering Institute and GM and GM

  • Strategic decision to

acquire - not build

  • Previously utilized

CMMI development

  • Recognition that

Acquisition is different

  • Requires standard

model for global deployment

  • Thought Leadership

in developing maturity models (CMM, CMMI)

  • Integrator of best

practices in software engineering

  • Recognition of value

in offering model for acquirers

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SLIDE 15

CMMI CMMI-

  • ACQ Model

ACQ Model

CMMI Model Framework (CMF) CMMI Model Framework (CMF) 16 Project, Organizational, and Support Process Areas S

  • l

i c i t a t i

  • n

& S u p p l i e r A g r e e m e n t D e v e l

  • p

m e n t A c q u i s i t i

  • n

R e q u i r e m e n t s D e v e l

  • p

m e n t Acquisition Technical Management A g r e e m e n t M a n a g e m e n t A c q u i s i t i

  • n

V a l i d a t i

  • n

A c q u i s i t i

  • n

V e r i f i c a t i

  • n
  • Model for being a

Model for being a ‘ ‘good customer good customer’ ’

  • Effective implementation requires understanding

Effective implementation requires understanding and correctly applying the model and correctly applying the model

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SLIDE 16

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General Motors Implementation General Motors Implementation

  • f CMMI for Acquisition
  • f CMMI for Acquisition
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SLIDE 17

CMMI CMMI-

  • ACQ for GM

ACQ for GM

CMMI Model Framework (CMF) Project Management Standardized Work Processes Enterprise & Domain Integration Contracting (GSCs & ITSRs) I n t e g r a t e d P r

  • j

e c t P l a n n i n g R e q u i r e m e n t s & P r

  • t
  • t

y p e s Architecture Acceptance Criteria Peer Reviews

  • GM analyzed and internalized the CMMI

GM analyzed and internalized the CMMI-

  • ACQ model

ACQ model

  • We determined the core competencies essential to

We determined the core competencies essential to implementing IS&S goals implementing IS&S goals

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SLIDE 18

CMMI CMMI-

  • ACQ for GM

ACQ for GM

  • Implementing the model requires structural change and

Implementing the model requires structural change and global standardization global standardization

  • Organizational Structure

Organizational Structure

  • Common Global Processes

Common Global Processes

  • Common Service Agreements

Common Service Agreements

  • Continuous Improvement

Continuous Improvement Structure Structure Processes Processes

CMMI Model Framework (CMF) Project Management Standardized Work Processes Enterprise & Domain Integration Contracting (GSCs & ITSRs) I n t e g r a t e d P r

  • j

e c t P l a n n i n g Requirements & Prototypes Architecture A c c e p t a n c e C r i t e r i a Peer Reviews

Contracts Contracts

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Acquisition & Project Planning Define Req. & High-Level Solution Supplier Evaluation & Selection System Acceptance Project Oversight / Supplier Management Transition Mgmt

General Motors Supplier

Plan Design Integrate & Test Develop Deliver & Maintain

Business Need Solution

Acquirer & Supplier Contractual Touch Points: Deliverables and M Acquirer & Supplier Contractual Touch Points: Deliverables and Metrics etrics Acquirer & Supplier Contractual Touch Points: Deliverables and M Acquirer & Supplier Contractual Touch Points: Deliverables and Metrics etrics

GM and Supplier Roles GM and Supplier Roles

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SLIDE 20

CMMI CMMI-

  • Acquisition Learnings

Acquisition Learnings

  • Key insights into successful implementation strategy

– Build core competencies in retained processes – Keep process lean:

  • Build enabling systems
  • Standardize on Acceptance
  • Standardize on Interfaces
  • Standardize on Tools

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Project Management Architecture Requirements Supplier Alignment

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SLIDE 21

Requirements Requirements

Key Lessons

Acquirer ownership of requirements is essential

– Relationship with customer/user – Continuity between projects

Requirements are tightly linked to contracts

– Tension within teams if requirements

are poor quality

– Suppliers can take advantage of

loose requirements Acquirer must be skilled in requirements engineering

  • Established requirements team
  • Requirements prototyping
  • Requirements lead oversees projects
  • Standard requirements

Actions

21 21 Project Management Architecture

Requirements

Supplier Alignment

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SLIDE 22

Architecture Architecture

Key Lessons

Acquirer must retain ownership of architecture

– Determines technical strategy – Assure consistency – Assure ‘Best Interest’ of Acquirer

Architectural philosophy varies within supplier base

– Variation at company and personal

level Technical and architectural standards eliminate noise

– Hurdle should be very high for

deviations

  • Enterprise level system engineering team
  • Cross area architecture planning meetings
  • Lead architect oversees all projects
  • Implementation of technical standards

Actions

22 22 Project Management Architecture Supplier Alignment Requirements

Architecture

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SLIDE 23

Project Management Project Management

Key Lessons

Acquisition PM is a different mindset than development

– PM’s shift from “doing” to “managing”,

retain accountability

– Acquisition PM must integrate with

supplier PM

– Clear acceptance and quality measures

are critical

Relationship with customer is critical

– PM is the key customer advocate in the

project

Contract support of PM is critical

  • Standard contracts across areas
  • Standard RASIC for all projects
  • Integrated GM & supplier project plan
  • Standard peer & acceptance reviews

Actions

23 23 Project Management Architecture Supplier Alignment Requirements

Project Management

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SLIDE 24

Supplier Alignment Supplier Alignment

Key Lessons

Define the process for the

  • rganization and interface to

suppliers Focus delivery process on acquirer core competencies Don’t prescribe the supplier’s methodology Supplier teams integrate at different speeds and require a variety of support mechanisms (e.g., training)

  • Global System Process Days
  • Global face to face training
  • Global Coach’s program
  • Interactive distance learning

Actions

24 24 Project Management Architecture

Supplier Alignment

Requirements

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SLIDE 25

Global Implementation Global Implementation

  • Global Standardization is key to GM

Global Standardization is key to GM’ ’s success s success

  • Global Training on Processes

Global Training on Processes

  • Global Process Coaches

Global Process Coaches

  • Global management and architecture meetings

Global management and architecture meetings

  • Regular Improvement driven by GM users and suppliers

Regular Improvement driven by GM users and suppliers

  • Process Releases

Process Releases

  • Contract Updates

Contract Updates

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SUMMARY SUMMARY

  • Through partnership with the SEI, DoD, Suppliers and others, the

Through partnership with the SEI, DoD, Suppliers and others, the CMMI CMMI-

  • ACQ provides a model for being a great customer

ACQ provides a model for being a great customer

  • The best practices encompassed in the CMMI

The best practices encompassed in the CMMI-

  • ACQ drive quality

ACQ drive quality throughout the IT acquisition process throughout the IT acquisition process

  • General Motors was the first commercial enterprise to be apprais

General Motors was the first commercial enterprise to be appraised ed utilizing the CMMI utilizing the CMMI-

  • ACQ

ACQ

  • GM recognizes it must excel in Requirements, Architecture, and

GM recognizes it must excel in Requirements, Architecture, and Project Management to be a successful Acquirer and Customer Project Management to be a successful Acquirer and Customer

CMMI Model Framework (CMF) Project Management Standardized Work Processes Enterprise & Domain Integration Contracting (GSCs & ITSRs) Integrated Project Planning Requirements & Prototypes Architecture Acceptance Criteria P e e r R e v i e w s

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Thank You! Thank You!

Rich.Frost@GM.com

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