CMMI Opens the Gate: The Practical Relationship between CMMI and Stage- Gate Decision Models

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NDIA CMMI Technology Conference & User Group Denver, CO CMMI Opens the Gate: The Practical Relationship between CMMI and Stage- Gate Decision Models ABB USCRC - 1

Agenda ABB Overview Stage-Gate Process CMMI How Stage-Gate and CMMI Complement Each Other Summary ABB USCRC - 2

ABB Overview Leader in power and automation technologies Enable utility and industry customers to improve performance while lowering environmental impact The ABB Group of companies operates in more than 120 countries and employs approximately 110,000 people ABB became the first company in the world to sell 100,000 robots A vast majority of products at ABB have software and hardware components ABB USCRC - 3

ABB s Organizational Structure Corporate Research Power Products Power Systems Automation Products Process Automation ABB USCRC - 4 Robotics

ABB s Products Power Products Power Systems ABB USCRC - 5

ABB s Products Automation Products Process Automation Robotics ABB USCRC - 6

Stage-Gate Process ABB USCRC - 7 Conceptual and operational roadmap for moving a new-product project from idea to launch. The Stage-Gate process is divided into a series of Stages (activities) and Gates (decision points). Stage Gate Stages consist of a set of cross-functional, parallel activities within a project. In order to proceed from one stage to the next, these activities must be successfully completed and confirmed by passing a gate. Gates are passed during gate review meetings Decision is made to either continue or stop a project based on whether a set of predefined Gate criteria have been met Gates serve as quality control checkpoints Gates decide the path forward for a project, including resource commitments Gate decisions are based on the set of deliverables from the preceding stage a set of criteria/questions/metrics used to evaluate the project and its deliverables Gate decisions: Continue to the next stage Kill the project Hold or freeze the project Recycle the project (re-scope and restart)

Generic Stage-Gate Process Discovery G1 Idea Screen Scoping G2 Second Screen Build Business Case G3 Go To Development Development G4 Go To Testing Testing & Validation G5 Go To Launch Launch ABB USCRC - 8 Post-Launch Review

Stage-Gate Process ABB USCRC - 9 Conceptual and operational roadmap for moving a newproduct project from idea to launch. Provides a framework for better management of product development projects Provides correct and relevant information for business decisions. Ensures that the line organization is actively involved in the project and that the project status is made visible for all project stakeholders. Based on the experiences, suggestions and observations of a large number of managers and firms in over 60 cases as observed by Robert Cooper.

ABB USCRC - 10 The ABB Gate Model The ABB Gate Model has eight defined gates for controlling a project from a business point of view, each with a certain purpose as shown below. Start Project Start Planning Start Execution Confirm Execution Start Introduction Release Close Project Retrospective Investigation of Project

ABB s Gate Assessment Process Gate Assessor Project Manager Gate Owner Gate Checklist Gate Meeting Participants ABB USCRC - 11

Benefits of the Stage-Gate Process ABB USCRC - 12 Accelerates speed-to-market Increases likelihood of product success Introduces discipline into an ordinarily chaotic process Reduces re-work and other forms of waste Improves focus via gates where poor projects are killed Fosters promotion of innovative ideas Achieves efficient and effective allocation of scarce resources Ensures a complete process no critical steps are omitted

CMMI Consists of best practices that address development and maintenance activities that cover the product lifecycle from conception through delivery and maintenance. Helps organizations improve their development and maintenance processes for both products and services. CMMI can help: set process improvement goals and priorities provide guidance for quality processes provide a yardstick for appraising current practices Provide a framework for benchmarking among and across organizations ABB USCRC - 13

Benefits of CMMI Increases the likelihood of meeting cost, schedule, and performance goals Enhances collaboration with external stakeholders Helps organizations define common, integrated processes for system development Encourages proactive management techniques Establishes disciplined, repeatable processes rather than chaotic, ad-hoc product development cycles ABB USCRC - 14

How CMMI and Stage-Gate Complement Each Other CMMI best practices support the activities occurring during the stages RD Discovery G1 RSKM OPF OPD OT ReqM Idea Screen Scoping G2 Second Screen Build Business Case G3 Go To Development Development G4 Go To Testing PP IPM SAM PMC TS VER PI VAL Testing & Valuation G5 Go To Launch Launch ABB USCRC - 15 CM PPQA MA DAR Post-Launch Review

How CMMI and Stage-Gate Complement Each Other Stage-Gate provides a strong business decision and innovation focus not present in the CMMI Market Analysis Competitor Monitoring Business Case Development Intellectual Property Issues ABB USCRC - 16

How CMMI and Stage-Gate Complement Each Other CMMI provides more detail on best practices especially within the Process Management and Support process area categories Stage-Gate models tend to be checklist based focused on ensuring that criteria have been met CMMI provides guidance on specific practices that help organizations successfully achieve the criteria ABB USCRC - 17

Summary Businesses combining the use of CMMI and Stage-Gate Products developed with repeatable, managed processes. Products delivered on-time and within budget Products meet market need Products are profitable for the organization Products represent the highest level of innovation + = ABB USCRC - 18

Contact Information Andy Cordes Software Architecture and Processes Manager ABB US Corporate Research Center 940 Main Campus Drive Raleigh, NC 27606 phone: (919) 856-3871 email: andrew.cordes@us.abb.com ABB USCRC - 19

Questions? ABB USCRC - 20