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Applying CMMI Approach To Business Process Improvement: Vol. 4, No.1, Spring 2006 Page 97-116
Applying CMMI Approach To Business Process Improvement: Vol. 4, No.1, Spring 2006 Page 97-116
Abstract
The Capability Maturity Model Integration (CMMI) is currently the most
widely adopted and influential process improvement framework. It totally
contains two representations, continuous or staged, and 25 process areas
covering a range of supplier sourcing, product concept to product delivery,
and maintenance of the whole production lifecycle. Because CMMI has
already become an international standard to measure the quality of
software industry, to date, the government of Taiwan is enthusiastically
launching CMMI-related plans to boost the competitiveness of software
industry. Nevertheless, this systematized framework provides not only as
the basis of process improvement for software industry, but also a valuable
reference for other organizations which intend to engage in process
improvement. Therefore, this paper will firstly introduce the concept and
implication of CMMI model, and further to propose on model tailoring,
implementation methodology, and process performance appraisal, during
the application of CMMI model by non-software industries, summarized as:
1. Customized model tailoring, 2. IDEAL implementation methodology,
and 3. Evidence assessment principles and suggestions; hopefully to
provide as an enlightenment reference for those enterprises that intend to
conduct process improvement.
Keywords: Business Process Improvement, Capability Maturity Model
Integration (CMMI), Staged Representation, Continuous Representation
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1. Introduction
Capability Maturity Model Integration (CMMI) was developed by the
CMMI Project Team, which was formed together by U.S. Department of
Defense (DoD), National Defense Industrial Association, and the Software
Engineering Institute of Carnegie Mellon University (CMU/SEI). The
purpose of CMMI is to provide system/software organizations with
sustained improvement in software development and management
capability, enhanced their software productivity and quality, and boosted
their competitiveness. Since its development till today, four domains of
knowledge are available when planning process improvement using CMMI
that are, Systems Engineering (SE), Software Engineering (SW),
Integrated Product and Process Development (IPPD), and Supplier
Sourcing (SS) (Chrissis et al., 2003). It is currently an internationally
recognized and widely adopted systematized integrative process
improvement framework. To facilitate process improvement, CMMI helps
an organization examine its current processes; establish priorities for
improvement of those processes; and implement these improvements
across the organization (Tyson et. al., 2003).
In 2004, CMU/SEI performed an investigation on 13 companies
which implemented CMMI process improvement, and it was found that all
of these companies gained improvements on all aspects of cost, scheduling,
productivity, product quality, customer satisfaction and return of
investment (CMU/SEI, 2004):
As to the cost aspect, companies with better improvement gained 83% of
enhancement, while the company with the lowest improvement also gained
5% of enhancement.
As to the scheduling aspect, companies with better improvement gained
95% of enhancement, while the company with the lowest improvement
also gained 15% of enhancement.
As to the productivity aspect, companies with better improvement gained
60% of enhancement, while the company with the lowest improvement
also gained 11% of enhancement.
As to the product aspect, companies with better improvement gained 72%
of enhancement, while the company with the lowest improvement also
gained 20% of enhancement.
As to the customer satisfaction aspect, companies with better improvement
gained 55% of enhancement, while the company with the lowest
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5 Optimizing
Focus on process improvement
(2PAs)
4 Quantitatively
Managed
(2PAs)
3 Defined
Pr ocess characterized for the
organization and is proactive
(14PAs)
Managed
2
Process characterized for (7PAs)
projects and is often reactive
1 Initial
Process unpredictable,
poorly controlled and
reactive
Maturity Levels
Common Features
Specific Practices
Commitment Ability to Directing Verifying
to Perform Perform Implementation Implementation
Generic Practices
Capability Dimension
-- Continuous representation--
CL5 Optimizing
5
3
CL3 Defined
CL2 Managed 2
1
CL1 Performed
CL0 Incomplete 0
Process Area1 Process Area2 Process Area3 Process Area4
Process Dimension
Capability
Specific Practices Generic Practices
Levels
In Figure 2 and Figure 4, generic goals means that the same purpose
which each process area should achieve; generic practices mean that each
commonly required activity which can achieve the generic goals.
Additionally, specific goals mean the specific purpose that each process
area intends to achieve, and specific practices mean the each required
activity that can achieve the specific goal of each PA. In the Staged
Representation Model, the generic goal is only available from level 2,
whereas in the Continuous Representation Model, the generic goal is
required right from level 1; however, actually each level of these two
representation models has the same generic goal. Among the, level 1 PA
generic goal (GG1) is: "achieve specific goals"; level 2 PA generic goals
(GG2) is: "institutionalize a managed process", level 3 PA generic goal
(GG3) is: "institutionalize a defined process", level 4 PA generic goal
(GG4) is: "institutionalize a quantitatively managed process ", level 5 PA
generic goal (GG5) is: "institutionalize an optimizing process". It is
necessary to notice that, the generic goal of higher class would cover the
goal of previous class, for example of the "Decision Analysis and
Resolution" (DAR) PA, because this PA is the one only available for the
level 3, therefore its generic goal must reach GG3, and besides the two
required common practices of GG3, it also includes the achievements of
ten common practices required by GG2, illustrated in Table 2.
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Organizational
Culture
Improvement
Goals
CMMI Tailoring Tailored
Model CMMI
Core Business!
Model
Necessary
Resource
Context: clearly identify the input efforts that fit organization's business
strategy. Due to business factors, the process improvement being
conducted usually can gain significantly. Building Sponsorship: an
effective sponsorship system is one of the critical factors of progress and
endeavor. Because at the initiating phase, responsibilities are uncertain and
systems are chaotic, with sponsorship it is possible to clearly identify the
responsibility and obligation of each team member. Charter Infrastructure:
the establishment of charter infrastructure might be interim or permanent.
The scope and complication of charter infrastructure are subject to the
existent maturity level of the organization.
6. Conclusions
Nowadays, CMMI is an internationally recognized process
improvement framework that has been widely used, and has been proven
that it truly generated quite outstanding outcomes. Although, CMMI was
initially used as a process improvement model only for software industry,
but, after thorough understanding, it is found eventually also very suitable
for other industries. Those high value industries are also suitable to apply
CMMI to improve their processes and enhance their competitiveness,
ranging from banking, electronics, aviation, national defense, digital
contents etc.
First of all, we believe that the philosophy of maturity levels and capability
levels are worth of imitation, no matter what type of organization, its core
and key processes should be in compliance with the 4 stages: managed,
defined, quantitatively managed, continuous improvements and innovation
in order to conduct improvements. Secondary, since it is not necessary to
transplant the whole CMMI into non-software industries, it is suggested to
adopt continuous representation model as the basis of implementation, and
then conduct process improvement according to the its core business,
purpose of improvement together with company resource and culture to
perform proper tailoring and to further choose appropriate process area
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References
B. Tyson, C. Albert and L. Brownsword, Interpreting Capability Maturity
Model Integration (CMMI) for COTS-Based Systems, Technical
Report, Retrieved from the Carnegie Mellon University Software
Engineering Institute Website: http://www.sei.cmu.edu/publications/
documents/03.reports/03tr022.html, 2003
Carnegie Mellon University Software Engineering Institute,
CMMI-SE/SW/IPPD/SS Continuous Representation (Version1.1)
Retrieved from the Carnegie Mellon University Software Engineering
Institute Website: http://www.sei.cmu.edu/cmmi/models/, 2002.
Carnegie Mellon University Software Engineering Institute,
CMMI-SE/SW/IPPD/SS Staged Representation, (Version1.1)
Retrieved from the Carnegie Mellon University Software Engineering
Institute Website: http://www.sei.cmu.edu/cmmi/models/, 2002.
Carnegie Mellon University Software Engineering Institute, Appraisal
Requirements for CMMISM, Version 1.1 (ARC, V1.1), Retrieved
from the Carnegie Mellon University Software Engineering Institute
Website: http://www.sei.cmu.edu/publications/documents/01.reports/
01tr034.html. , 2001
Carnegie Mellon University Software Engineering Institute, Introduction to
CMMI (Staged and Continuous) Version1.1, Carnegie Mellon
University, 2004.
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