Proactive Risk and Problem Management March 14 – 15, 2011 John E. Tinsley Director, Air & Missile Defense Systems Mission Assurance 19 th Annual Conference on Quality in the Space & Defense Industries (CQSDI) © 2011 Northrop Grumman Corporation. All rights reserved. (Log # DTD-11-07)

Overview 2 Organizational Risk Management Keeping Risks from Becoming Problems Problem Management Overview Proactive Leadership, Management, and Problem Solving Team Proactive Continuous Quality Solutions

Organizational Risk Management Organizations strive for the highest quality solutions and services to satisfy their customer needs for highly reliable and quality products. Organizations have access to many standards, tools and techniques to assist in this high quality endeavor. Examples include: AS9100, CMMI, Agile, ITIL, Lean Six Sigma, Quality Circles, TQM, and “oh wait I am going backwards in time!” These buzz words or trends have some things in common: –Generate focus on quality and reduced life cycle costs and schedules –Involve similar emphasis on incident, change or problem management –Don’t replace a world class engineering organization and supporting structure Robust Risk Management must include an organizational focus on: –Technical Organizations –Management Organizations –Supporting Organizations –Interface Assurance 3

Keeping Risks from Becoming Problems RisksKnowledgeMitigation Technology Readiness Capability Readiness –Systems Engineering Processes –Systems Engineering Tools –IT Environment (Simulation Based Modeling ) Knowledge, Skills and Ability Acquisition Budget/Funding Data Management Schedule Technical Performance –System Safety –Reliability –Quality –Unique Customer Requirements Programmatic Infrastructure Political Safety Security Known Knowns (Program Management Systems Engineering) High Quality –People –Processes –Products Known Unknowns (Continuous Risk Managment) Reduce Uncertainties –Test Data –Data Analysis Manage Residual Risk –Procedures –Contingency Plans Unknown Knowns (Continuous Process Improvement) Rigorous Supplier Quality Communications Improved Data Analysis –Tools –Techniques –Trending Unknown Unknowns (Continuous Research Test & Evaluation) Exercise Curiosity Constantly Challenge –Assumptions –Models –Analyses 4

Problem Management Overview 5 Support Processes Technical Data Management Requirements: Specifications, Procedures, Standards & Processes Root Cause Determination Problem Assessment / Investigation Analysis Continue Problem Report Corrective Action/Problem Resolution Lessons Learned Problem Disposition Closure Unknowns Knowns Problem Recurrence Control Problem Identification Data Collection Tools Trend Analysis Data Mining Technical Requirements & Process Improvements Program Metrics Lessons Learned Problem Risk Continue Continuous Risk Management Yes No

Proactive Leadership, Management, and Problem Solving Team Lessons Learned or Forgotten? (Team/Management/Leadership) 6 Problem Identification (Team) Problem Assessment/Investigation Analysis (Team) Root Cause Determination (Team) Problem Report (Team/Management) Corrective Action/Problem Resolution (Team/Management) Problem Recurrence Control (Team/Management/Leadership) Problem Disposition Closure (Team/Management/Leadership)

Proactive Continuous Quality Solutions Proactive versus Reactive Continuous Improvement –Reactive CI, including Rapid Improvement Events (RIEs) can add value but eventually diminishes productivity, efficiency, reliability and quality –Proactive CI promotes a high Quality mindset and culture Proactive CI based on strategic thought leadership about organizational goals and goal accomplishment methods can add much more value and result in: –High Quality People, Processes and Products –Better products despite unexpected events and unknowns Examples of Proactive CI: –Includes CMMI, AS9100, Agile Software Development, ITIL –Software and Hardware Development with Incremental Risk and Progress Reviews –Proactive Lean Six Sigma and Rapid Improvement Events –Continuous Focus on Interface Assurance (All Organizational Interfaces: Suppliers) –Customer Requirements (Remember there is a forest beyond the trees!) –Communicate, Communicate, Communicate 7