Supplier s Perspective on s Perspective on Supplier CMMI- -ACQ - - PowerPoint PPT Presentation

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Supplier Supplier’ ’s Perspective on s Perspective on CMMI CMMI-

• ACQ

ACQ

Reflections from Supplier Reflections from Supplier’ ’s perspective s perspective “ “Adapting CMMI for Acquisition Organizations: A Preliminary Repor Adapting CMMI for Acquisition Organizations: A Preliminary Report t” ” Kathryn Dodson, EDS (kathryn.dodson@eds.com) Kathryn Dodson, EDS (kathryn.dodson@eds.com) Gowri S Ramani, Borland (gowri.ramani@borland.com) Gowri S Ramani, Borland (gowri.ramani@borland.com)

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Agenda Agenda

Challenges in outsourcing/acquisition Challenges in outsourcing/acquisition management management CMMI CMMI-

• ACQ

ACQ Model Highlights Model Highlights CMMI CMMI-

• ACQ and CMMI

ACQ and CMMI-

• DEV

DEV

– – Interfaces Interfaces – – Maturity in tandem Maturity in tandem

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Outsourcing World Outsourcing World

One off One off Extensions Extensions Multi-year Multi-year development development maintenance maintenance services services Multiple suppliers Multiple suppliers Transaction based Transaction based Relationship based Relationship based Single suppliers Single suppliers

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Sourcing Strategy? Sourcing Strategy?

Giga survey (2003) Giga survey (2003)

– – No documented strategy for acquiring IT No documented strategy for acquiring IT goods and services goods and services -

• >40%

>40% – – IT specific strategy IT specific strategy -

• >10%

>10% – – Limited IT services and products Limited IT services and products -

• >20%

>20% – – Strategy as part of corporate sourcing Strategy as part of corporate sourcing strategy strategy – – 16% 16%

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Outcome of Outsourcing Outcome of Outsourcing

Satisfaction with Current Outsourcing Satisfaction with Current Outsourcing

– – Very satisfied Very satisfied – – 22% 22% – – Somewhat satisfied Somewhat satisfied – – 57% 57% – – Somewhat dissatisfied Somewhat dissatisfied – – 19% 19% – – Very dissatisfied Very dissatisfied – – 2% 2%

Source: Business Technographics November 2005 North American and European Enterprise Software and Services Survey

R

Base: 184 IT Decision-Makers at North American Enterprises that are currently outsourcing.

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Challenges Challenges

• Scope definition
• Monitoring and Management
• Technical feasibility
• Multiple suppliers
• Shared and independent risk management
• Impact on supplier and acquirer’s processes
• Requirement for new metrics and measures
• Acquirer maturity vs. supplier maturity
• Relationship management

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Attempts at Acquirer Maturity Path Attempts at Acquirer Maturity Path

‘ ‘Fix Fix’ ’ existing implementation of SW CMM existing implementation of SW CMM

• r CMMI to manage suppliers
• r CMMI to manage suppliers

Acquirer closely monitoring supplier work Acquirer closely monitoring supplier work Supplier required to adhere to two process Supplier required to adhere to two process standards standards Undefined or constantly shifting lines of Undefined or constantly shifting lines of control and management between control and management between acquirer and supplier acquirer and supplier

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CMMI for Acquisition CMMI for Acquisition -

• Intent

Intent

Develop an acquirer specific framework Develop an acquirer specific framework Help focus on and improve areas critical to Help focus on and improve areas critical to acquirer and supplier management acquirer and supplier management Enable better management through targeted Enable better management through targeted interfaces for outsourced activities interfaces for outsourced activities Leverage existing maturity framework and Leverage existing maturity framework and industry acceptance of CMMI industry acceptance of CMMI Leverage existing SCAMPI appraisal framework Leverage existing SCAMPI appraisal framework Promote in Promote in-

• tandem maturity and value for

tandem maturity and value for acquirer and supplier communities acquirer and supplier communities

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Development Approach Development Approach

Sponsored by GM, in collaboration with SEI Sponsored by GM, in collaboration with SEI Industry wide participation in development and reviews Industry wide participation in development and reviews

– – Participants from SEI, DOD, other industries (e.g., banking, Participants from SEI, DOD, other industries (e.g., banking, entertainment) entertainment) – – GM and GM suppliers (EDS, HP) GM and GM suppliers (EDS, HP) – – SEI SEI – – DOD, NASA and industry representatives DOD, NASA and industry representatives – – NASSCOM Quality Forum nominees from India NASSCOM Quality Forum nominees from India

Based on other models and best practices Based on other models and best practices

– – Aligned with CMMI v1.2 Aligned with CMMI v1.2 – – CMMI CMMI-

• AM, SA

AM, SA-

• CMM, CMMI SE/SW v1.1

CMM, CMMI SE/SW v1.1

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Life Cycle / Roles Acquisition & Project Planning Analyze & Design Solution Supplier Evaluation & Selection Project Oversight / Supplier Mgmt System Accept- ance Transition Standards and Architecture Acquisition Management Acquisition Technical Solution & Organizational Process Definition Project Monitoring & Control Risk Management Quantitative Project Management Acquisition Requirements Development Requirements Management Engineering Management Acquisition Verification & Acquisition Validation Integrated Project Management Supplier Management Project Planning Solicitation & Supplier Agreement Development Project Management Level 2 Level 3 Level 4

Initial CMMI for Acquisition: Project Execution

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Initial CMMI for Acquisition: A Lean Model Initial CMMI for Acquisition: A Initial CMMI for Acquisition: A Lean Model Lean Model

Acquisition Requirements Development

Solicitation & Supplier Agreement Development

Acquisition Technical Solution Acquisition Management Project Management Core Core Processes Processes Acquisition Validation Acquisition Verification

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Acquisition Requirements Development Acquisition Requirements Development (ARD) (ARD)

Gathering, analyzing and validating Gathering, analyzing and validating requirements requirements

– – Focus on business needs and requirements Focus on business needs and requirements – – Not detailed requirements that pre Not detailed requirements that pre-

• determine

determine a specific solution a specific solution

Development of contractual requirements Development of contractual requirements Clarifies Acquirer’s Responsibility for:

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Acquisition Technical Solution (ATS) Acquisition Technical Solution (ATS)

Identification of design constraints Identification of design constraints

– – Establishment of acquirer Establishment of acquirer’ ’s technical s technical standards and architecture standards and architecture

Analysis and verification of supplier Analysis and verification of supplier’ ’s s detailed technical solution detailed technical solution

– – Design conforms to acquirer Design conforms to acquirer’ ’s technical s technical standards, product interfaces complete standards, product interfaces complete

Clarifies Acquirer’s Responsibility for:

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Solicitation and Supplier Agreement Solicitation and Supplier Agreement Development (SSAD) Development (SSAD)

Acquisition and sourcing strategy Acquisition and sourcing strategy

– – Capabilities sought, business considerations Capabilities sought, business considerations – – Type of agreement, potential suppliers Type of agreement, potential suppliers

Establishment of sound supplier Establishment of sound supplier agreements agreements

– – Detailed responsibilities, performance Detailed responsibilities, performance measures, dispute resolution measures, dispute resolution

Clarifies Acquirer’s Responsibility for:

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Acquisition Management (AM) vs. Acquisition Management (AM) vs. Project Monitoring and Control Project Monitoring and Control

AM, PMC

Management Based on Management Based on Contract and Agreement Contract and Agreement Part of contract Part of contract management management Focus on measurable Focus on measurable Service Levels Service Levels Dispute and issue resolution Dispute and issue resolution Management Based on Management Based on Integrated Project Plan Integrated Project Plan Part of ongoing project Part of ongoing project management management Focus on schedule, status, Focus on schedule, status, deliverables etc. deliverables etc. Corrective actions Corrective actions

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Acquisition Verification (AVER) Acquisition Verification (AVER)

Acquirer Acquirer’ ’s own work products s own work products

– – Examples: Requirements, solicitation Examples: Requirements, solicitation packages, integrated project plans packages, integrated project plans

Supplier work products Supplier work products

– – Methods, standards, criteria established in Methods, standards, criteria established in supplier agreement supplier agreement – – Verification results of supplier Verification results of supplier

Clarifies Acquirer’s Responsibility for:

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Acquisition Validation (AVAL) Acquisition Validation (AVAL)

Acquirer Acquirer’ ’s own work products s own work products

– – Example: Requirements Example: Requirements

Supplier Deliverables Supplier Deliverables

– – Example: Prototypes, Training Materials, Example: Prototypes, Training Materials, Software Software

Establishment of validation procedures, Establishment of validation procedures, criteria, environment criteria, environment Clarifies Acquirer’s Responsibility for:

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Key Project Interfaces Key Project Interfaces

AM, PMC ARD SSAD ATS Other Core Processes AVAL AVER PP

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Supplier Considerations: Agreement Development and Management

AM, PMC PP ARD SSAD ATS Other Core Processes AVER AVAL

• Impact on supplier’s

methodology

• Specific interaction points
• Multi-supplier interactions
• Acceptance Criteria
• Level, frequency of reporting
• Service Levels, penalties

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Supplier Considerations: Product Supplier Considerations: Product Development and Delivery Development and Delivery

AM, PMC PP ARD SSAD ATS Other Core Processes AVAL AVER

! !Development from non

Development from non-

• technical and functional

technical and functional requirements requirements

! !Architecture and

Architecture and Technology standards Technology standards

! !Requirements for validation

Requirements for validation and verifications and verifications

! ! Monitoring through metrics

Monitoring through metrics

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Supplier Considerations - Transition

AM, PMC PP ARD SSAD ATS Other Core Processes AVAL AVER

• Transition of software
• Warranty considerations
• Closing of agreements
• Transition to new agreements
• Integration into acquirer

production environment

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Acquirer Maturity Ladder Acquirer Maturity Ladder

• - Basic project management and supplier management practices
• - Stable acquisitions through local process management
• - Disciplined processes for managing requirements and accepting the

solutions

• - Organizational standard processes, including acquisition management

processes

• - Standard supplier agreements, supplier interfaces and metrics
• - Organizational technology and architecture standards
• - Joint variation control through quantitative management
• - Statistical control may also involve supplier process improvements and

statistical control

• - continuous improvement
• - improvement involving supplier processes
• - incremental and innovative process and technological improvements
• - improve quality, capability and performance of the entire supply chain
• - chaotic, unpredictable acquisition outcomes

1 2 3 4 5

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High Maturity Considerations High Maturity Considerations

Pro Pro-

• active performance improvement across entire

active performance improvement across entire supply chain supply chain – – Analysis of performance across acquirer Analysis of performance across acquirer-

• supplier (s)

supplier (s) processes processes – – Better collaboration between suppliers Better collaboration between suppliers – – Focus on long term relationship management Focus on long term relationship management Shared cost savings between acquirer/suppliers over Shared cost savings between acquirer/suppliers over long term long term Smoother interaction between acquirers and suppliers Smoother interaction between acquirers and suppliers due to common architecture of CMMI due to common architecture of CMMI-

• ACQ and CMMI

ACQ and CMMI-

• DEV

DEV With improved acquirer maturity, supplier can make With improved acquirer maturity, supplier can make faster capability improvements faster capability improvements

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Possibilities of CMMI Possibilities of CMMI-

• ACQ

ACQ

Supplier Acquirer

Improves capability to deliver Improves capability to deliver better value to acquirer by better value to acquirer by – –Streamlined interactions Streamlined interactions – –Focus on engineering, Focus on engineering, development capabilities development capabilities – –Well defined metrics, Well defined metrics, quantitative data quantitative data – –Focus on innovations in Focus on innovations in development of solutions development of solutions – –Constructive collaboration Constructive collaboration –Improved internal efficiencies – –Business and functional Business and functional requirements requirements – –Management of architecture, Management of architecture, technology standards technology standards – –Evaluation of performance Evaluation of performance based on quantitative data based on quantitative data – –End to end project outcome, End to end project outcome, acquirer tasks acquirer tasks – –Collaboration and value Collaboration and value across the supplier network across the supplier network Delivers better value to Delivers better value to the business by focusing on the business by focusing on

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Maturity framework for acquirer Maturity framework for acquirer Productive relationships with suppliers Productive relationships with suppliers Synergy through collaboration Synergy through collaboration Better value technology solutions Better value technology solutions

Promise of CMMI Promise of CMMI-

• ACQ

ACQ

Setting the platform to bring together the value streams of the CMMI-DEV and CMMI-ACQ models

Kathryn Dodson, EDS (kathryn.dodson@eds.com) Kathryn Dodson, EDS (kathryn.dodson@eds.com) Gowri S Ramani, Borland (gowri.ramani@borland.com Gowri S Ramani, Borland (gowri.ramani@borland.com