Staying Ahead of the Competition: How CMMI Can Help

Usage Modes and Problem Areas

There are two principle modes companies employ when using CMMI as a basis for their process improvement initiatives:

Process Improvement. When a company determines that having repeatable processes will improve its competitive posture, the company may mandate the CMMI’s usage through internally imposed initiatives or policies. When multiple organizations are bidding for work, the company that has a CMMI Maturity Level rating may have the advantage over the other bidders when the selection criteria are considered and therefore may well have a better chance of winning the work. When a company decides to subcontract a portion of their own projects, CMMI can help with effective management of suppliers.
Contractual. When a client levies a contractual obligation on a company through contracts, laws, or standards, the company must comply if it wants to retain the client’s business. When a client stipulates that the only way to win a valuable contract is to comply with an industry-recognized quality model, the decision is an easy one if there is a desire to keep the work.

Several areas that have historically proven problematic are as follows:

Estimating: The establishment of credible estimates based on historical data that subsequently can serve as the foundation for creating a project plan.
Measurement and Analysis: The creation of a database of information that allows management by fact rather than feeling.
Process and Product Quality Assurance: This area deals with the process improvement precept that the quality of the products of a system is heavily influenced by the quality of the processes used to develop them.

Case Study

Based on work with his company’s clients, Greer presents a case study scenario applicable for a software, aerospace, telecom, or healthcare-related organization environment. For the purpose of this case study, the process improvement scenario will be addressed.

Company A was experiencing difficulty meeting its scheduled commitments. American Systems served as facilitator during the company’s analysis of the problem. American Systems initially came to the conclusion that the problem was related to overly optimistic estimates. “Using the model in process improvement mode, we looked at the components that specifically addressed their issues,” explains Greer. “The model suggests making estimates based on historical data gathered from past similar projects. Using this data, we determined that the original estimates were actually quite accurate; however, senior management—focused on time to market—was reducing the estimates to force a delivery schedule that the data didn’t support,” he adds.

The software management team approached management with the conclusion that since the data (gathered objectively through a measurement program) reflected a certain productivity level, it was an unreasonable expectation for them to realize significant improvements in productivity using their current processes. American Systems conducted a brainstorming session to come up with several alternatives. The possible changes suggested were to use more skilled resources, reduce the contents of a typical delivery, reduce the number of deliveries per year, or follow an abbreviated process. Each of these choices carried with it a particular risk.

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