…And Then Some 5 February 2004 A nalytical S ervices, I nc. 689 Discovery Drive Suite 300 Huntsville, Alabama Voice: (256) Fax: (256) CMMI Pilot Program Review For Mr. Bill Craig & Mrs. Jackie Langhout CMMI Pilot Program Review For Mr. Bill Craig & Mrs. Jackie Langhout Analytical Services, Inc. Your Advantage. And Then Some.

…And Then Some 5 February 2004 Agenda Introduction of Team Members ASI Overview CMMI Pilot Project Highlights Benefits from Pilot Benefits from CMMI Implementation Path Forward for ASI – Pilot and Beyond SED Feedback and Plans

…And Then Some 5 February 2004 Management and Technical Services Company Incorporated in 1992, 8(a) Status Hispanic, Woman-Owned, Small Disadvantaged Business ISO 9001:2000 Registered Top Secret Facility Revenue Growth 1995 – 2003 ($M) Employee Growth Company Overview 279

…And Then Some 5 February 2004 “Customer satisfaction is only the beginning of our business relationships. The difference between average and top-notch is in three words… and then some. The points of our three-pronged logo represent our customers, employees and community. We are poised to face the future…and then some.” Company Philosophy

…And Then Some 5 February 2004 Headquarters – Huntsville, Alabama 3 Offices: Montgomery, AL, Vicksburg, MS, & Shalimar, FL Employee Presence at Locations Across Southeastern United States & Puerto Rico Gunter AFB, AL Maxwell AFB, AL Redstone Arsenal, AL Little Rock, AR Denver, CO Washington, DC Ft. Benning, GA Moody AFB, GA Ft. Campbell, KY Ft. Bragg, NC Omaha, NE Ft. Monmouth, NJ Columbus, OH Lewisville, TX Ft. Eustis, VA Eau Galle, WI Puerto Rico Gunter AFB, AL Maxwell AFB, AL Redstone Arsenal, AL Little Rock, AR Denver, CO Washington, DC Ft. Benning, GA Moody AFB, GA Ft. Campbell, KY Ft. Bragg, NC Omaha, NE Ft. Monmouth, NJ Columbus, OH Lewisville, TX Ft. Eustis, VA Eau Galle, WI Puerto Rico Corporate headquarters Field office locations Employee presence National Presence

…And Then Some 5 February 2004 Professional and Organizational Development Facilitation Strategic Planning Training Needs Analysis Courseware Design Automation Training Web Design & Content Management Strategic Communications Market Research & Analysis Creative/Technical Writing Document Control Business Process Reengineering Change Management Engineering and Scientific Analysis Engineering and Scientific Analysis Environmental Sciences Environmental Eng. Modeling & Simulation Test Planning/Execution Data Collection/Reduction Expert Analysis Technology Assessment Software Engineering SW IV&V Research & Development Product Development Technical Writing Systems Engineering/ Program Management Systems Engineering/ Program Management Requirements Analysis Cost Analysis Schedule Analysis Risk Assessment Conference Management Roadmap Development Program Documentation IPPD/IPT Establishment Manpower Planning Earned Value Analysis Logistics Support Information Technology Information Technology Computer Facilities Network Management Data Communications HW/SW Integration Information Security Web Services Help Desk Operations Multimedia Support Custom Application Development Enterprise IT Policy & Planning Core Expertise Management and Technical Services

…And Then Some 5 February 2004 U.S. Air Force U.S. Army Aviation and Missile Command (AMCOM) Communications - Electronics Command (CECOM) U.S. Total Army Personnel Command (PERSCOM) PEO Air, Space and Missile Defense (PEO ASMD) PEO Combat Support and Combat Service Support (PEO CS & CSS) Corps of Engineers, Engineering Research and Development Center (ERDC) PEO Simulation, Training, and Instrumentation (PEO STRI) PEO Tactical Missiles PEO Enterprise Information Systems (PEO EIS) AF HQ Initiatives Office & Battle Labs Air Combat Command (ACC) Standard Systems Group (SSG) Air Armament Center (AAC) Office of the Secretary of Defense (OSD) Marshall Space Flight Center (MSFC) Defense Finance and Accounting Service (DFAS) National Aeronautics Space Administration (NASA) Defense Information Systems Agency (DISA) Missile Defense Agency (MDA) Ground-based Midcourse Defense (GMD) Program Customer Base

…And Then Some 5 February 2004 ASI Business Base O2K Technical - SCRS Actual O2K Revenue through 2003: $ 6,791,399 Funded O2K Revenue for 2004/5: $ 4,246,943 Total ASI-O2K SCRS Revenues: $11,038,342 Current customers supported through SED: –PM TMDE (PEO CS&CSS) – Engineering, Logistics, Programmatic, Software, Computer Based Training Products, Conference Support –US Army TMDE Activity (AMCOM) – Tech pubs, Computer Based Training, Customized Software Development –PM Close Combat Weapons Systems (PEO TM) – Customized Software Development –SAMD (AMCOM) – Customized Software Development and Maintenance

…And Then Some 5 February 2004 State of ASI Quality Management System Achieved ISO Registration in April 2003 – Audit by NQA, with follow up audit in October 2003 NQA Surveillance Audit to be conducted in 1 April 2004 First annual QMS documentation review underway Improvements and updates to QMS processes completed Quality commitment from employees Moving from “ISO” to Quality Management System mentality Exploring QMS improvement tools through CMMI pilot program The QMS is considered our way of doing business, not an ISO issue.

…And Then Some 5 February 2004 Reactive vs. Proactive Approach Typically after the initial rush of a QMS certification, enthusiasm and activity diminishes only to regain momentum around scheduled audits. This is a reactive QMS. Continuous commitment by upper level management to the QMS is a proactive approach. This is the ASI approach.

…And Then Some 5 February 2004 ASI’s Proactive Approach Commitment and responsiveness from top-level management sets the standard Following through on commitments and actions Recognizing those within the company that actively support and work to improve the QMS Enhancing/expanding the QMS as business grows Investing in system improvements

…And Then Some 5 February 2004 ASI CMMI PILOT Status Briefing

© 2003 by Carnegie Mellon University 5 February 2004 Activities To Date (1 of 6)  CMMI Overview Tutorial that covered Process Areas of Maturity Levels 2 & 3 and focused upon the typical business impacts related to the area  Business Analysis to capture high impact/high need Process Areas for ASI  Had simple “thumbs-up” voting technique to determine level of impact/need  Also polled participates for the level of impact (H M L)  The high impact areas were obvious and it was easy to select the Process Areas to focus on for the pilot  CMMI Overview Tutorial that covered Process Areas of Maturity Levels 2 & 3 and focused upon the typical business impacts related to the area  Business Analysis to capture high impact/high need Process Areas for ASI  Had simple “thumbs-up” voting technique to determine level of impact/need  Also polled participates for the level of impact (H M L)  The high impact areas were obvious and it was easy to select the Process Areas to focus on for the pilot Gap Analysis Session Action Plan Implementation Close Interaction Between ASI And Consultants Site Kickoff Meeting

© 2003 by Carnegie Mellon University 5 February 2004 Activities To Date (2 of 6)  3 Process Areas were selected by the joint SED/SEI/ASI team :  Project Planning  Requirements Management  Measurement & Analysis Decided to “informally” work on Organizational Process Focus  3 Process Areas were selected by the joint SED/SEI/ASI team :  Project Planning  Requirements Management  Measurement & Analysis Decided to “informally” work on Organizational Process Focus Gap Analysis Session Action Plan Implementation Close Interaction Between ASI And Consultants Site Kickoff Meeting

© 2003 by Carnegie Mellon University 5 February 2004 Activities To Date (3 of 6)  Workshop to analyze the process areas selected - the concepts/methods used for the SCAMPI B/C development project were adapted for ASI:  Current ASI practices documented and mapped to relevant CMMI model components  Interpretation of model intent for ASI made and gaps documented  Developed Action Plan for ASI Team to address gaps found  Workshop to analyze the process areas selected - the concepts/methods used for the SCAMPI B/C development project were adapted for ASI:  Current ASI practices documented and mapped to relevant CMMI model components  Interpretation of model intent for ASI made and gaps documented  Developed Action Plan for ASI Team to address gaps found Site Kickoff Meeting Close Interaction Between ASI And Consultants Gap Analysis Session Action Plan Implementation

© 2003 by Carnegie Mellon University 5 February 2004 Activities To Date (4 of 6)  ASI Team Members are in various stages of implementing their Action Plan  ASI Team Members developed Project-Specific Process Descriptions  Project Planning  Requirements Management  Measurement and Analysis  ASI Quality Facilitator evaluating impact at the organizational level and relationship to QSM  ASI Team Members are in various stages of implementing their Action Plan  ASI Team Members developed Project-Specific Process Descriptions  Project Planning  Requirements Management  Measurement and Analysis  ASI Quality Facilitator evaluating impact at the organizational level and relationship to QSM Site Kickoff Meeting Close Interaction Between ASI And Consultants Gap Analysis Session Action Plan Implementation

© 2003 by Carnegie Mellon University 5 February 2004 Gap Analysis Session Activities To Date (5 of 6)  Monthly Face-to-Face sessions to status progress and get help/guidance from Consultants  Tutorial on writing process guidance documentation  Tutorial on business-oriented metrics  Tutorial on Process Capturing Techniques  Tutorial on CMMI Institutionalization Concepts  Feedback on Action Plans and Process Descriptions  Monthly Face-to-Face sessions to status progress and get help/guidance from Consultants  Tutorial on writing process guidance documentation  Tutorial on business-oriented metrics  Tutorial on Process Capturing Techniques  Tutorial on CMMI Institutionalization Concepts  Feedback on Action Plans and Process Descriptions Site Kickoff Meeting Action Plan Implementation Close Interaction Between ASI And Consultants

© 2003 by Carnegie Mellon University 5 February 2004 Activities to Date (6 of 6)  Weekly teleconferences to keep the project progressing  Review Action Items  Provide feedback on recently reviewed material  Provide guidance on any issues/problems encountered  Weekly teleconferences to keep the project progressing  Review Action Items  Provide feedback on recently reviewed material  Provide guidance on any issues/problems encountered Site Kickoff Meeting Gap Analysis Session Action Plan Implementation Close Interaction Between ASI And Consultants

© 2003 by Carnegie Mellon University 5 February 2004 Planned Activities (1 of 4)  Baseline Process Descriptions (PP, RM, M&A)  Execute processes in Pilot Projects  Collect Metrics  Gather lessons learned (including benefits) and process improvements  Update processes to reflect process improvements  Evaluate processes for standardization at the Organizational Level  Baseline Process Descriptions (PP, RM, M&A)  Execute processes in Pilot Projects  Collect Metrics  Gather lessons learned (including benefits) and process improvements  Update processes to reflect process improvements  Evaluate processes for standardization at the Organizational Level Execute New Processes Appraise Pilot Projects Share Lessons Learned Publish Pilot Results

© 2003 by Carnegie Mellon University 5 February 2004 Planned Activities (2 of 4)  Prepare for Appraisal  Define Scope (Requirements Management, Project Planning, Measurement and Analysis, and Organizational Process Focus are candidate process areas)  Have regular preparation sessions with Lead Appraiser  Gather objective evidence to support appraisal activities  Set expectations  Conduct Appraisal  ASI to provide one person for the Appraisal Team  Team Training and Readiness Review (tentative: 04/27-04/30)  Appraisal (tentative: 05/24-05/27)  Prepare for Appraisal  Define Scope (Requirements Management, Project Planning, Measurement and Analysis, and Organizational Process Focus are candidate process areas)  Have regular preparation sessions with Lead Appraiser  Gather objective evidence to support appraisal activities  Set expectations  Conduct Appraisal  ASI to provide one person for the Appraisal Team  Team Training and Readiness Review (tentative: 04/27-04/30)  Appraisal (tentative: 05/24-05/27) Execute New Processes Appraise Pilot Projects Share Lessons Learned Publish Pilot Results

© 2003 by Carnegie Mellon University 5 February 2004 Planned Activities (3 of 4)  ASI invited to present at SE2 Conference  Half-day tutorial – March 29 Sharing materials and activities conducted with ASI and Cirrus with interested members of HSV small business community No ASI-specific information will be provided without ASI permission Opportunity for ASI to share what it deems appropriate  CMMI Panel – March 31 Provide Small Business Perspective for CMMI Implementation Share Lessons Learned  Possible Interviews with Huntsville Times for pre-conference articles  ASI invited to present at SE2 Conference  Half-day tutorial – March 29 Sharing materials and activities conducted with ASI and Cirrus with interested members of HSV small business community No ASI-specific information will be provided without ASI permission Opportunity for ASI to share what it deems appropriate  CMMI Panel – March 31 Provide Small Business Perspective for CMMI Implementation Share Lessons Learned  Possible Interviews with Huntsville Times for pre-conference articles Execute New Processes Appraise Pilot Projects Share Lessons Learned Publish Pilot Results

© 2003 by Carnegie Mellon University 5 February 2004 Planned Activities (4 of 4)  An Interpretive Guide for Using CMMI in Small Businesses  Focusing on general lessons learned/recommendations gathered during implementation of the various processes at ASI/Cirrus  Materials used (i.e., tutorials, pilot processes) to be included as jumpstart for other small businesses  Case Study: ASI  Published jointly among ASI, SED, SEI  All three organizations agree on content  Case Study: Cirrus  Same conditions as for Cirrus case study  An Interpretive Guide for Using CMMI in Small Businesses  Focusing on general lessons learned/recommendations gathered during implementation of the various processes at ASI/Cirrus  Materials used (i.e., tutorials, pilot processes) to be included as jumpstart for other small businesses  Case Study: ASI  Published jointly among ASI, SED, SEI  All three organizations agree on content  Case Study: Cirrus  Same conditions as for Cirrus case study Execute New Processes Appraise Pilot Projects Brief SED Share Lessons Learned Publish Pilot Results

…And Then Some 5 February 2004 Benefits from Pilot

…And Then Some 5 February 2004 Benefits from Participation in Pilot Project Training on CMMI/Process Improvement – 4 trained in 3 day course, approximately 6 more trained during pilot project meetings. Gained insight into different approaches to process improvement Learned several new techniques for analyzing and developing processes. Access to expertise of SEI/Carnegie Mellon & Consultants New interest in improving processes in QMS ASI has gained understanding of what it takes to implement CMMI Process Areas and how to effectively approach implementation ASI will get more visibility in the community as a company that pursues and invests in quality

…And Then Some 5 February 2004 The pilot project has widened the ASI Team’s thoughts toward process design and improvement ASI Team Members will now have insight, skills, and initiative to develop new ideas into new practices, with confidence The fear of change has been released from those involved There seems to be a renewed sense of interest and understanding towards process automation CMMI has provided a best practice model to develop process and procedures needed in ASI QMS. Pilot project has provided some confidence that we are doing the right things. Benefits from Participation in Pilot Project (Continued)

…And Then Some 5 February 2004 “Bottoms-up” encouraged by CMMI structure has made it easier to develop a difficult procedure. Expect expansion to other programs to work well. The Pilot provided the ASI Team with tools an techniques that will make implementation of improvements more cost-effective ASI staff has gained understanding of how a bottom-up approach can be used to improve processes in the QMS ASI has started to use best practices to respond to new requirements (Subcontractor Agreement Management is an example) ASI will gain CMMI appraisal experience and be counted as one of the few that have gone through an “official” appraisal Benefits from Participation in Pilot Project (Continued)

…And Then Some 5 February 2004 Identifying the gaps in all three process areas has helped in current project tasks Identifying the gaps in all three process areas has helped in current project tasks The SED/SEI Team added significant value to all the activities : Overview Training, Business Analysis, Gap Analysis, Action Plan Definition The SED/SEI Team added significant value to all the activities : Overview Training, Business Analysis, Gap Analysis, Action Plan Definition Most Challenging so far: Addressing our issues of diverse organization with the technical solution, project planning and execution processes Most Challenging so far: Addressing our issues of diverse organization with the technical solution, project planning and execution processes The SEI/SED team provided at least an order of magnitude reduction in time to do the activitiesThe SEI/SED team provided at least an order of magnitude reduction in time to do the activities Benefits from Participation in Pilot Project (Continued)

Sponsored by the U.S. Department of Defense © 2003 by Carnegie Mellon University Pittsburgh, PA February 2004 Benefits from CMMI Implementation

© 2003 by Carnegie Mellon University 5 February 2004 Realized and Expected Benefits to ASI (1 of 7) CMMI Implementation has significantly improved ability to communicate status of the project Use of CMMI-recommended practices has reduced “lottery-sensitivity” on the project -Much of what was only in project manager’s head is now accessible to other team members CMMI Implementation has positively affected the way project is organized Requirements Management Process Description developed during the pilot works for this project and should tailor easily to other “service” projects Will fully execute and document entire process with recently received major requirements changes “There is no turning back now. I am hooked!” – Patty P, project manager Patty…

© 2003 by Carnegie Mellon University 5 February 2004 Realized and Expected Benefits to ASI (2 of 7) Documentation created as a result of using CMMI: Fills in missing gaps in ISO documentation Is a natural follow onto ISO and meets ISO goals for continual improvement Communicates program roles to all stakeholders Provides (for the first time!) step-by-step instructions for new employees (especially PMs and TLs) Provides “bragging rights” in proposals and presentations Supports greater (and needed!) degree of granularity in organizational performance measurement Helps to identify trouble spots (and strengths) in organizational practices Provides a consistent approach for implementing ASI processes and procedures Larry…

© 2003 by Carnegie Mellon University 5 February 2004 Realized and Expected Benefits to ASI (3 of 7) Experience gathered in communication of practices has proven to be of great benefit in clarifying expectations among team members Through CMMI Implementation, the ASI Team has gained knowledge of existing ASI systems and practices that were not previously clear After the pilot is complete, ASI will have the knowledge and experience necessary to implement process improvement more efficiently Software project is ahead of schedule because of using project planning and Requirements management process areas. Significantly reduced training time for new employee – gave her processes to read before getting together to answer questions “I see a future that includes many benefits currently unrealized”—Jim Hendrix, technical lead? Jimi…

© 2003 by Carnegie Mellon University 5 February 2004 Realized and Expected Benefits to ASI (4 of 7) CMMI specifically addresses customer related processes, many of which are very relevant to the services we provide. Integrated view of processes, through CMMI Process Area interactions, has significantly improved our ability to define more effective processes. “CMMI has helped me envision a path to “take the company to the next level” “—Jack Conway, VP of ???? -Develop consistent, lasting capabilities that support our business objectives and go beyond having good people -Increase competitive advantage through specific capabilities, documented as ASI processes, that provide solutions for customers -Move away from being totally people dependent to a capability- based organization with proven processes that deliver desired results to customers. Jack…

© 2003 by Carnegie Mellon University 5 February 2004 Realized and Expected Benefits to ASI (5 of 7) The CMMI can be easily incorporated into ASI’s QMS The bottom-up approach encouraged by the CMMI, coupled with ASI’s QMS, will connect those parts of the system which can benefit from specific process improvements Incorporating CMMI practices into ASI’s QMS will give direction to our improvement goals and, in turn, increase customer satisfaction “CMMI will strengthen ASI’s QMS and support company objectives as we grow” – Beth Smith, QMS Manager If we incorporate strategic planning (both at he project and corporate levels) and measurable goals while streamlining our processes to suit our particular activities, our QMS would benefit Beth…

© 2003 by Carnegie Mellon University 5 February 2004 Realized and Expected Benefits to ASI (6 of 7) Irma… Very pleased with the progress on implementing CMMI Appreciate the hard work and the progress from the teams Most excited about the value you have found in the process. “Buy in” of those involved Appreciate the investment of SED in small business development Probably would not have been able to afford CMMI implementation without expertise assistance provided by the pilot

© 2003 by Carnegie Mellon University 5 February 2004 Realized and Expected Benefits to ASI (7 of 7) ASI can use CMMI implementation as risk avoidance for ISO audit findings looking for evidence of continual improvement CMMI is providing a common point of reference for working towards standardizing management approaches across different tasks Use of CMMI-referenced process descriptions has already started to reduce training effort for new staff CMMI usage has added insight to development of a standard work authorization process CMMI focus on measurement has added insight into risks related to staffing variances ASI will achieve higher visibility of relationship of processes to revenue, through quarterly reviews Your SEI/SED team see the following as key realized or expected benefits …

…And Then Some 5 February 2004 Path Forward for ASI – Pilot and Beyond

…And Then Some 5 February 2004 Path Ahead Continuous improvement of QMS Streamlined processes to facilitate QMS efficiency Intranet consistency and stabilization to promote effective communication of QMS information Response mechanisms in place to improve PCAR (Problem/Corrective Action Records?) process Automated notification to QMS documentation changes Integrate offsite locations into the QMS by end-of-year via structured training schedule

…And Then Some 5 February 2004 Path Ahead Integrate current CMMI implementation into QMS –CMMI Maturity Level appraisal may not be planned for the immediate future; however, the practices will be integrated into our existing QMS –The areas of Project Planning, Requirements Management, and Measurement and Analysis clearly support our QMS –These areas will be integrated as an extension of our current QMS through Work Instructions and/or an additional COP –CMMI will not take the place of or compete with ISO , rather will enhance our QMS

…And Then Some 5 February 2004 Path Ahead Continue implementing CMMI?? process areas Appraisal of additional CMMI?? process areas Attain Maturity??? levels of CMMI Implementation

…And Then Some 5 February 2004 Concerns Concerns of CMMI Implementation???: –Affordability—particularly appraisals –Schedule to attain goals –Customer motivation –Customer requirements

…And Then Some 5 February 2004 Feedback Mr. Craig will provide feedback on Pilot Project implementation and future plans for Small Business CMMI Project.