11 april 2007 cmm vs. iso david s. craft cirm, pmp
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11 April 2007
CMM vs. ISO
David S. Craft CIRM, PMP
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Agenda
Who Am I
Software Systems Development
ISO
CMM
Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Who Am I
VISTA Volunteer
Industrial Engineer
Chief Industrial Engineer
Manager Production Planning & Control
Inventory Control ManagerShift Supervisor
Materials ManagerConsultant
Project Manager
Team Leader
Managing Consultant, Engineering and Manufacturing Services
Internal ISO Auditor
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Process
To Develop Software and Systems You Need A Process
• Anything goes• Defined• Structured
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Process, people and technology are the major determinants of project cost,
quality and schedule.
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Common Misconceptions
I don’t need defined processes I have:– Really good people
– Advanced Technology
– An experienced manager
Defined Processes:– Interfere with creativity
– Equals bureaucracy + regimentation
– Isn’t needed when building prototypes
– Is only useful on large projects
– Hinders agility in fast moving projects
– Costs too much
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Why We Need Standard Processes
Estimating (History)• Scope• Cost• Time • Tools
Deliver the Product to Estimate (Visibility)• Time• Cost• Quality
Handling/Controlling Changes• Planned• Unplanned• Scope Creep
11 April 2007
CMM vs. ISO, Sarbanes Oxley
How to Achieve Quality Processes
ISO
CMM
11 April 2007
CMM vs. ISO, Sarbanes Oxley
ISO – CMM Differences
ISO9001:2000 CMMI-DEVInternational standard, applies to all types of organizations, supports both product and service oriented organizations
Written specifically for software development companies
A brief document – about 25 pages long, identifying the minimal requirements for a quality system
A detailed document – over 500 pages long
Emphasizes on a management of continuous improvement process, based on the PDCA (Plan-Do-Check-Act) model
Emphasizes on achieving “maturity” and improving its process continuously
One level of standard. The standard is based on recommendation
Defines 5 maturity levels of the organization, covering 25 process areas (PAs)
Netta Dotan, Quality Assurance & project management, Ronkal Office Technologies
11 April 2007
CMM vs. ISO, Sarbanes Oxley
ISO – CMM Differences – My View
ISO 9000 SW-CMMIOutwardly focused Inwardly focused
Minimum requirements with implied continuous improvements
Explicit continuous quality improvement
Registration Document No documentation
Certification audit for a 50 employee organization will be executed by 1 -12 auditors during one day
Certification audit for a 50 employee organization will be executed by 4 auditors during 4-5 days
Netta Dotan, Quality Assurance & project management, Ronkal Office Technologies
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Both require the organization be explicit about what their processes and quality systems are
Say what you do; do what you say
The organization records and tracks data for objective analysis
Require strong management support to succeed
Provide a structured and measured approach to quality improvement
Require an outside audit for “certification”
Both are refined/improved over time
ISO – CMM Similarities
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Meet ISOThe International Organization for Standardization (ISO) is a worldwide
federation of national standards bodies from some 162 countries, representing approximately 95% of worldwide production. ISO is a non-governmental organization established in 1947 to promote the development of standardization and related activities in the world with a view to facilitating international exchange of goods and services and development of cooperation in the spheres of intellectual, scientific, technological and economic activity
ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards.
ISO is a non-governmental organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government. On the other hand, other members have their roots uniquely in the private sector, having been set up by national partnerships of industry associations. Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society.
11 April 2007
CMM vs. ISO, Sarbanes Oxley
ISO’s ImpactIn the global economy ISO 9001:2000 and ISO 14001:2004 have become thoroughly integrated with
the world economy. ISO 9001:2000 is now firmly established as the globally accepted standard for
providing assurance about the quality of goods and services in supplier-customer relations.
The positive roles played in globalization by ISO’s standards for quality and environmental management systems include the following:
• a unifying base for global businesses and supply chains – such as the automotive and oil and gas sectors
• a technical support for regulation – as, for example, in the medical devices sector
• a tool for major new economic players to increase their participation in global supply chains, in export trade and in business process outsourcing;
• a tool for regional integration – as shown by their adoption by new or potential members of the European Union
In the rise of services in the global economy – nearly 33 % of ISO 9001:2000 certificates in 2005 went to organizations in the service sectors.
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Sector Standards Pages
Generalities, Infrastructure and Sciences 1,601 64,568
Health, Safety and Environment 734 29,491
Engineering Technologies 4,937 223,394
Electronics, Information Technology and Telecommunications
2,902 506,057
Transport and Distribution of Goods 1,957 55,646
Agriculture and Food Technology 1,054 26,286
Materials Technology 4,373 114,269
Construction 380 14,632
Special Technologies 145 3,602
Total 18,083 737,345
Where are the Standards (12/31/09)
11 April 2007
CMM vs. ISO, Sarbanes Oxley
What are standards?
Standards are documented agreements containing technical specifications or other precise criteria to be used consistently as rules, guidelines, or definitions of characteristics, to ensure that materials, products, processes and services are fit for their purpose.
For example, the format of the credit cards, phone cards, and "smart" cards that have become commonplace is derived from an ISO International Standard. Adhering to the standard, which defines such features as an optimal thickness (0,76 mm), means that the cards can be used worldwide.
International Standards thus contribute to making life simpler, and to increasing the reliability and effectiveness of the goods and services we use.
Last modified 2002-07-17
11 April 2007
CMM vs. ISO, Sarbanes Oxley
ISO 9000 represents consensus on what requirements a quality system must meet but does no dictate how they should be met.
The ISO 9000 series addresses quality management and quality assurance standards. It is designed to assist organizations in implementing and operating an effective quality management system (QMS). ISO 9001 defines what quality standards should be followed. It does not tell how.
The ISO 9000:2000 series is based on 8 key principles: Customer Focus, Leadership, Involvement of People, Process Approach, System Approach to Management, Continual improvement, Factual Approach to Decision Making and Mutually Beneficial Supplier Relationships
Which ISO Standards
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Quality System Documentation
QualityManual
Level 1Defines
Approach andResponsibility
Procedures
Level 2Defines
Who, What, When
Work/JobInstructions
Level 3Answers
How
Records/Documentation
Level 4Results: shows that
the system is operating
11 April 2007
CMM vs. ISO, Sarbanes Oxley
ISO 9001:2000 Structure
4. Quality Management System4.1 General requirements4.2 Document requirements
5. Management Responsibility
5.1 Management commitment
5.2 Customer focus5.3 Quality policy5.4 Planning5.5 Responsibility, authority,
communication5.6 Management review
6. Resource Management6.1 Provision of resources6.2 Human resources6.3 Infrastructure6.4 Work environment
7. Product realization7.1 Planning of product realization7.2 Customer-related processes7.3 Design and development7.4 Purchasing7.5 Production and service provision7.6 Control of monitoring and
measuring devices
8. Measurement, Analysis & Improvement8.1 General8.2 Monitoring and measurement8.3 Control of nonconforming product8.4 Analysis of data8.5 Improvement
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Evaluation
ISO is a certification model. Typically, an internal quality system assessment (audit) is performed, repairs made and the organization may then submit to a formal system audit lasting for several days performed by one of the ISO certification Bodies. The certificate usually is valid for three years and also requires that a system of Quality Management be in place, including performance of regular internal audits and intermediate external audits.
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Meet CMMI
CMMI® (Capability Maturity Model® Integration) models are collections of best practices that help organizations to improve their processes. These models are developed by product teams with members from industry, government, and the Software Engineering Institute (SEI). These models provides a comprehensive integrated set of guidelines for developing products and services.
The CMMI-DEV model provides guidance for applying CMMI best practices in a development organization. Best practices in the model focus on activities for developing quality products and services to meet the needs of customers and end users.
Other CMMI models: Acquisition and Services
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Scope of CMMI
CMMI is designed to help identify and prioritize process improvement opportunities and facilitate organizational change management. The model is used for internal process improvement, sourcing selection and benchmarking, rather than certification
CMMI is organized as a process framework that cluster related practices into process areas that, when performed collectively, satisfy a set of goals. It requires that you define specific practices to meet specific goals but does not define how they are to be implemented.
The CMMI provides two representations – staged and continuous. The staged view provides five maturity levels: Initial, Managed, Defined, Quantitatively Managed, and Optimizing and 22 process areas PAs). The PAs at each maturity level build on the previous level. Alternatively, continuous representation is used to focus on a process capability in a desired functional area (project management, process management, engineering and support) rather that maturity levels.
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Evaluation
This is not a certification model, but ratings may be announced and published. The SEI publishes ratings provided the company gives it permission. Formal appraisals are typically 5 – 10 days and led by SEI-authorized internal or external lead appraisers, using trained teams and a formal methods. The method is named SCAMPI (Standard CMMI Appraisal Method for Process Improvement).
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
SCAMPI – Standard CMMI Appraisal Method for Process Improvement
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Process AreasRequirements Management Organizational Process Definition
Project Planning Organizational Training
Project Monitoring & Control Integrated Project Management
Supplier Agreement Management Risk Management
Measurement & Analysis Integrated Teaming
Process & Product Quality Assurance
Integrated Supplier Management
Configuration Management Decision Analysis & Resolution
Requirements Development Organizational Environment for Integration
Technical Solution Organizational Process Performance
Product Integration Quantitative Project Management
Verification Organizational Innovation & Deployment
Validation Causal Analysis & Resolution
Organizational Process Focus
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
EIA – Electronic Industries Alliance Interim Standard
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Staged Process Area Continuous
L2 Requirements Management Engineering
L2 Project Planning Project Mgmt
L2 Project Monitoring and Control Project Mgmt
L2 Supplier Agreement Management Project Mgmt
L2 Measurement and Analysis Support
L2 Process and Product Quality Assurance Support
L2 Configuration Management Support
L3 Requirements Development Engineering
L3 Technical Solution Engineering
L3 Product Integration Engineering
L3 Verification Engineering
L3 Validation Engineering
L3 Organizational Process Focus Process Mgmt.
L3 Organizational Process Definition Process Mgmt.
L3 Organizational Training Process Mgmt.
L3 Integrated Project Management Project Mgmt
L3 Risk Management Project Mgmt
L3 Integrated Teaming Project Mgmt
L3 Integrated Supplier Management Project Mgmt
L3 Decision Analysis and Resolution Support
L3 Organizational Environment for Integration Support
L4 Organizational Process Performance Process Mgmt.
L4 Quantitative Project Management Project Mgmt
L5 Organizational Innovation and Deployment Process Mgmt.
L5 Causal Analysis and Resolution Support
CMM Process Areas
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Examples of CMMI Impact: ROI
5:1 ROI for quality activities (Accenture)
13:1 ROI calculated as defects avoided per hour spent in training and defect prevention (Northrop Grumman Defense Enterprise Systems)
Avoided $3.72 M in costs due to better cost performance (Raytheon North Texas Software Engineering) as the organization improved from SW-CMM level 4 to CMMI level 5
2:1 ROI over 3 years (Siemens Information Systems Ltd, India)
2.5:1 ROI over 12st year, with benefits amortized over less than 6 months (reported under non disclosure)
(reported by the American Society for Quality)
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Sarbanes-Oxley Implications
With its more than 300 discrete points of enforceable law, this is the most significant piece of account legislation passed since the formation of the SEC in 1933
SOX was passed with the specific intent of increasing accountability and attempting to install ethical behavior in financial reporting and business operations.
With this increase spotlight on reporting, companies must invest resources and focus into their internal control process
The Act created the Public Company Accounting Oversight Board (PCAOB) to oversee the activities of the auditing profession and mandated reforms to enhance corporate and criminal fraud accountability.
A goal of SOX legislation is to continually improve the transparency of financial and business events that can impact the accuracy and future validity of financial statements. Projects to improve processes and regular review of controls will become common-place activities as compliance evolves. Tools that simplify project completion and track status will better enable organization to cost-effectively undertake these projects.
11 April 2007
CMM vs. ISO, Sarbanes Oxley
SOX Major Section
302 – Corporate Responsibility for Financial Reports• Requires Executives to certify the accuracy of corporate financial
reports
404 – Management Assessment of Internal Controls• Requires executives and auditors to confirm the effectiveness of
internal controls for financial reporting
409 – Real Time Issuers Disclose• Requires any material changes in financial state of issuer be
communicated quickly and with supporting data to the public
11 April 2007
CMM vs. ISO, Sarbanes Oxley
Implications for IT
Configuration management is now a must
Change controls must be handled more carefully
Security, security, security
All system changes must be verifiable by a clear audit trail
Reduce reliance on batch processing, update data warehouse more frequently
Interfaces from any financial system must be documented and controlled
IT activities must be aligned with the company’s governance and risk policies