six cigma ajal

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AJAL JOSE AKKARA

ASSISTANT PROFESSOR

Dept: ELECTRONICS AND COMMUNICATION E N G I N E E R I N G

UNIVERSAL ENGINEERING COLLEGE

CURRENTLY PERSUING EXECUTIVE MBA @ IIM - kOZHIKODE

Six sigma and its application to software development

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Rapidly growing GDP of 7.5%-8% Services sector has more than 50% weightage in GDP Structural drivers for growth

Large population and favorable demographic trends Skilled and well-educated labor force Rising integration into global trade and investment Improving macro policies and institutional framework

Various studies predict that India will become the 3rd largest economy in the world by 2050 But there are challenges

Need for simplification of rules and regulations Infrastructure

A brief look at the Indian Economy

Put the Right Information in the right Place. RIP it!

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Rapidly growing exports 1991 – US $128 million 2005 – US $17.2 billion 2008 (projected)- US$ 50 billion

Employs over 1,100,000 people

Over 400 Fortune 500 companies outsource their software development & maintenance to India

Snapshot of the Indian Software Industry

(Source: NASSCOM)

Applying Six Sigma to software development makes product development andother projects transparent to both management and customers. Transparencyrequires an important cultural change. As a result, after transparency isachieved, completing accurate project estimations while meeting both deadlinesand customer requirements becomes a lot easier.

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Liberalization of the economy & the seeds of IT boom in India

Abolition of licenses

Rationalization of taxes

Export thrust

Reduction of import tariffs

Abolition of wealth tax

Foreign exchange reforms

Systems Design and Development

1. Bottom-up2. Top-down3. Modular

X’s Step 1 Step 2 Step 3

Y’s

INPUTINPUT PROCESPROCESSS

OUTPUOUTPUTT

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The Six Sigma Evolutionary Timeline

1736: French mathematician Abraham de Moivre publishes an article introducing the normal curve.

1896: Italian sociologist Vilfredo Alfredo Pareto introduces the 80/20 rule and the Pareto distribution in Cours d’Economie Politique.

1924: Walter A. Shewhart introduces the control chart and the distinction of special vs. common cause variation as contributors to process problems.

1941: Alex Osborn, head of BBDO Advertising, fathers a widely-adopted set of rules for “brainstorming”.

1949: U. S. DOD issues Military Procedure MIL-P-1629, Procedures for Performing a Failure Mode Effects and Criticality Analysis.

1960: Kaoru Ishikawa introduces his now famous cause-and-effect diagram.

1818: Gauss uses the normal curve to explore the mathematics of error analysis for measurement, probability analysis, and hypothesis testing.

1970s: Dr. Noriaki Kano introduces his two-dimensional quality model and the three types of quality.

1986: Bill Smith, a senior engineer and scientist introduces the concept of Six Sigma at Motorola

1994: Larry Bossidy launches Six Sigma at Allied Signal.

1995: Jack Welch launches Six Sigma at GE.

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Time Line

1985

1987

1992

1995

2002

Dr Mikel J Harry wrote a paper relating early failures to Quality.

MOTOROLA Allied Signal

General Electric

Johnson & Johnson, Ford,

Nissan, Honeywell

“[Six Sigma] is the most important training thing we have ever had. It’s better than going to Harvard Business School.”

J.F. Welch

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Pilot's Six Sigma Performance

Width of Landing Strip

1/2 Width of Landing strip

If pilot always lands within 1/2 the landing strip width, we say that he has Six Sigma capacity.

Six sigma will be able to help in dealing with

all these challenges to a certain extent.

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The Quality Chain

Project and IT development processes support the project’s products

Customers may be internal or external

More efficient & effective use of resourcesMinimize errorsMeet or exceed stakeholder expectations

More rework, waste, & errorsNegative impact on project goal & objectivesPoor quality can be an embarrassment!

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New Outsourcing FeverBooming Software/IT IndustryBooming Software/IT Industry

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Software Safety

Software safety is a software quality assurance activity that focuses on the identification and assessment of potential hazards that may affect software negatively and cause an entire system to fail.

If hazards can be identified early in the software process, software design features can be specified that will either eliminate or control potential hazards.

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Problems with Software and Sigma

Software generally has low product volume compared with manufactured products– But what if we measure units, tests, objects,

screens, functions, etc?

Software development process has very high variance– Does it need to?– Is that necessarily bad?

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What Are These Changes?

datadata

otherotherdocumentsdocuments

codecodeTestTest

ProjectProjectPlanPlan

changes in changes in technical requirementstechnical requirements

changes in changes in business requirementsbusiness requirements

changes inchanges inuser requirementsuser requirements

software modelssoftware models

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Software Quality Assurance

FormalTechnicalReviews

Test Planning& Review

Measurement

Analysis&

Reporting

ProcessDefinition &Standards

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The Software Configuration

programsprograms documentsdocuments

datadataThe piecesThe pieces

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Software Process Overview

cross platform building Dashboards – continuous testing Mailing List – Developer communication Stored developer communication keep track of bugs and feature requests

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The IT Project Quality Plan

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Eight Wastes of Software Development

Partially Done Work Extra Processes Extra Features Task Switching Waiting Motion Defects Underutilization of Employees

Note: Seven Wastes of SD defined by Mary Poppendieck

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Monitor and Control

Quality Control Activities

Quality Control Activities should focus on the inputsand outputs of each process. This can be viewedin terms of the systems concept.

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Quality Control Tools

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Effect

Measurement

Methods

People

unable employee Untrained employee

Lack of training

Inefficient trainer

Mistakes in

estimating

Severity problems

Narrative data

Problem in the method of data

analysis

The method is not suitable with the data category

The method is not working with the system perfectly

Lack of knowledge about the

system

Lack of knowledge about the method

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NotesMake any notes here:

.

Tip: First start with Outputs and Customers. Next set process boundaries and do the process map steps and then list inputs and suppliers

Start

End

Design and development

Coding

Testing

Analysing the requirements

Promotion

Maintenance and updating

SIPOC

INPUTSSUPPLIERS PROCESS OUTPUTS CUSTOMERS

Critical to Client MetricCritical to Client MetricRegion : Product :Number of processes : Process : FTE :

1. Org 12. Org 23. Org 3

4. Org 4.

*Interviews with the clients,Mails and Supporting

docs by the client.•Requirement Specification.• The software

with forms and the requirement specification.

•The software, Requirement specifications,

supporting documents and

Technical documents.

•Software with content,Client

mails mentioning the competitors.

•Software/application,

content/functions to be updated,

re-Analysis reports.

Completed softwares

1. Org 52. Org 63. Org 7.

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Why the necessity of any Quality Management System ?

To get high Customer satisfaction index To maintain Competitive lead To adopt best quality practices Win global outsourcing contracts

Process reengineering goes a step further than quality assurance:

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Process Name:

Who

Step

Elapsed Time

As-Is Process Map

Analysing the requirements

1st week 2nd week 3rd week 4th week 5th week 6th week 7th week

1

2 Design and development

3 Coding

4 Testing

5 Promotion

6 Maintenance and updating

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Moments of Truth (MOT):Any time a customer draws a critical judgement, positive or negative, about the service, based upon a service experience (or lack of it).Value-Added (VA):• Is the customer willing to pay for it?• Is it done right the first time?• Essential work that moves one step closer to the

final product.Value-Add Enabler: step that is required to do VA

Non-Value Add (NVA):Steps considered non-essential to produce and deliver the product or service to meet the customer’s requirements. The customer is NOT willing to pay for the step.

“As-Is” Process Map Analysis1 2 3 5 6 74

%TotalTotal

%Steps

Process Step

Discussing with the customer about the require-ments

Complete analysis

Specification building

Designing

Developing

Understanding the design(by programmer)

Writing the Codes (by technical writer)

Design Materials

ProductionProcess

(Outputs)

(Inputs)Products

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“As-Is” Process Map Analysis8 9 10 12 1

314 1511

%TotalTotal

%Steps

Process Step Intensive testing

Complete testing Making

an advertising campaign

Making an Attractive website as to show models of software

Providing maintenance

Frequent updating

Reanalysis reports

Refreshing the website with the new updates

DevelopmentProcessArchitecture

Requirements

(Outputs)(Inputs)

Software

Applying to Software

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Moments of Truth (MOT):Any time a customer draws a critical judgement, positive or negative, about the service, based upon a service experience (or lack of it).Value-Added (VA):• Is the customer willing to pay for it?• Is it done right the first time?• Essential work that moves one step closer to the final product.Value-Add Enabler: step that is required to do VA

Avg. Time (Mins)

Value-Added

Nonvalue-Added

– Failure Int. / Ext.

– Control/Inspection

– Delay

– Prep/Set-Up

– Move

Total

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total%Total

%Steps

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Business Process Reengineering

“Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed *

* Hammer., Champy.J., (1993), Reengineering the Corporation: A Manifesto for Business Revolution., Harper Collins, London

$

Cost of Poor

Quality

Process reengineering goes a step further than quality assurance:

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Levels of Software Process Maturity

Capability Maturity Model Integration (CMMI)

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Change Control

STOPSTOP

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The BATON Solution

Vantage Service ManagerIT modeling, monitoring, visualization and data integration from Business Perspective

Proven Methodology and simplified data analysis leveraging structured

methodology and extensive intellectual property

Metrics Driven

Operational Improvements

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OPEN TO THE AUDIANCE

CAN WE INTRODUCE SIX SIGMA IN EDUCATION ?

IF SO , HOW ?

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Body of Knowledge

Certification

Self Assessment

Roles &Career Development

Curriculum

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Questions

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Thank You !

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Back up

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To achieve six sigma:6 Sigma -> 3.4 defects per million 5 Sigma -> 230 defects per million.4 Sigma -> 6210 defects per million.

In 1980’s, Motorola coined “six-sigma” to describe their higher quality efforts

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Examples of the Sigma ScaleIn a world at 3 sigma. . .

There are 964 U.S. flight cancellations per day.

The police make 7 false arrests every 4 minutes.

In MA, 5,390 newborns are dropped each year.

In one hour, 47,283 international long distance calls are accidentally disconnected.

In a world at 6 sigma. . .

1 U.S. flight is cancelled every 3 weeks.

There are fewer than 4 false arrests per month.

1 newborn is dropped every 4 years in MA.

It would take more than 2 years to see the same number of dropped international calls.

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Lean Originated in Toyota-

Toyota Production System Is not just about business

process review but a methodology for changing organisational culture based on ‘systems thinking’.

Continuous improvement ,Respect for people

Processes designed around what the customer wants

Identifies waste in a process, efficiency gains come from eliminating waste.

Software development methodology

Customer satisfaction by rapid, continuous delivery of useful software

Working software is delivered frequently (weeks rather than months)

Working software is the principal measure of progress

Even late changes in requirements are welcomed

Agile Six Sigma

Originated in Motorola

A six-sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects

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TAKING OF THE BLINDERS…

“In strategy it is important to see distant things as if they were close and to take a distanced view of close

things”

Miyamoto MusashiThe Book of Five Rings

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MURPHY’S LAW:MURPHY’S LAW:

What can go wrong, will go wrong. The possibility of something

going wrong is much greater than its going right. One can act upon a

problem, however small it is, only when the problem is first accepted.

Action presupposes a decision, a will, and the will can exists, only when

there is recognition.

KARMA: KARMA:

“Everything will be all right if my karma is good”. Karma does

not work that way, the theory of karma is not fatalism. It does not justify

passing the buck. It pins down the responsibility upon us.

so accept problem as it occurs.

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“What ever a leader does, other people do. The very thing.

What ever the upholds as authority, an ordinary person

follows that”.

- BHAGAVATGITA.

KRISHNA TO ARUGUNA:KRISHNA TO ARUGUNA:

If you runaway from this battle field, all others will also

follow you. If you fail to do what is to be done, others will also do

exactly that, because you are leader, whether you like it or not.

- Set our Example.

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Data Driven Decision

Y = f(x)

• Y

• Dependant

• Output

• Effect

• Symptom

• Monitor

• X1…… Xn

• Independent

• Input-Process

• Cause

• Problem

• Control

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GE Six Sigma Economics

$0

$500

$1,000

$1,500

$2,000

$2,500

1996 1998 2000 2002

6 Sigma Projest Success

Cost

Benefit

(in millions)

Source: 1998 GE Annual Report, Jack Welch Letter to Share Owner and Employees - progress based upon total corporation cost/ benefits attributable to Six Sigma.

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Two Processes

DMAIC– Existing Process

DefineMeasureAnalyzeImproveControl

DMADV– New Processes– DFSS

DefineMeasureAnalyzeDesignVerify

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DMAIC

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Overview of Six Sigma

CHANGE THE WORL

D

TRANSFORM THE

ORGANIZATION

GROWTH

COSTS OUT

PAIN, URGENCY, SURVIVAL

Six Sigma a PHILOSOPHY

Six Sigma as a Process

Six Sigma as a Statistical Tool.

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6 Sigma Training

Master Black Master Black BeltBelt

Mentor, Trainer, and Coach of Black Belts and other in the Organization

Black BeltsBlack BeltsLeader of teams implementing the Six Sigma Methodology on projects.

Green BeltsGreen BeltsDelivers successful focused projects using the Six Sigma Methodology on tools.

Team Members/ Team Members/ Yellow BeltsYellow Belts

Participates on and supports the project teams, typically in the context of his or her existing responsibilities.