1. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 1 CHAPTER 14 PROCESS IMPROVEMENT NOTICE: This material is copyrighted and may be copied or downloaded ONCE ONLY by students who are registered in this course at Southern Methodist University or National Technological University.

2. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 2 Contents 14.1 - General Issues 14.2 - Continuous Process Improvement 14.3 - Process Reengineering

3. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 3 14.1 - General Issues of Process Improvement Textbook References TopicChapter Defining the Process 13 Changing the Process 14 Improving the Process 17

4. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 4 Process Improvement Begins with Process Management Know the process Know the implications of changes -- on the outcome -- on the people -- on the reward system -- on the organizational infrastructure -- on the culture

5. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 5 Change Requires Dealing with People Define what will happen Document the actual processes Teach people Deal with their concerns Buy-in is earned – Show by actions that you are serious – “Walk the Talk” – Avoid preaching – Let the people own the process and the change

6. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 6 Quality Management Goal: Manage the software engineering function to achieve high quality at low cost and cycle time Time Cost Productive and Competitive Quality }

7. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 7 The Quality Management Concept Historical Data Base - Metrics - Lessons - etc. Process Models Knowledge and Experience Project Goals

8. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 8 Data Base Know about your organization -- Metrics -- Lessons Learned -- etc. Know about your industry and competitors -- What is best in class? -- Improvement rates -- etc. Facts to help you manage Historical Data Base - Metrics - Lessons - etc.

9. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 9 14.2 - Continuous Process Improvement Basic Idea: keep watching what you do, learning from mistakes, and fixing root causes of problems

10. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 10 Models of Process Behavior Theoretical models have scientific or statistical bases for their predictions Historical data of actual experience gives valuable insight that theory may miss Actual experience on current program is the most relevant, if you can accurately measure it All models give you a starting point and insight, but you must never fail to look at the facts

11. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 11 Using Models of Process Behavior Models can be used for training in what is expected Validation of experience against history and theory can help you understanding what is happening and why Assessment of differences between models and actuality can give insights into key attributes of your process Effective use of models will change management behavior, especially your own

12. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 12 Example of Experience vs. History (we saw this example earlier) Suppose your experience suggests that for C++ doing your kind of software, you should be generating -- 25 lines of code per day during the coding phase with -- 3 errors per 1000 lines of code during module test Suppose your actual experience is -- 40 lines of code per day with -- 0.5 errors per 1000 lines of code during module test

13. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 13 Possible Conclusions 1) We are doing much better than in the past -- Do you have a solid reason to explain this difference? I.e., why are you better? o Is the process different? o Are the people a lot better? o Are the tools better? 2) Our testing is no good (perhaps because it is being rushed due to deadlines) o Are the tests being performed? o Is the coverage adequate? o etc.

14. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 14 You Want to Achieve Optimal Performance Don’t over-measure or under-measure Don’t over-test or under-test Don’t over-inspect or under-inspect etc. Data + Models + Knowledge = Optimal Management

15. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 15 Monitoring is Essential Recall that our software cost and size estimating models are based on -- historical data -- process models -- insight of model designer These models are used to predict cost and schedule But the predictions are not exact They identify the risks and they give you a starting point for management

16. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 16 Update Projections and Estimates

17. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 17 If you monitor actuals against the predictions of models, then you can Revise the estimates based on new insight on parameters, assumptions, etc Calibrate the models based on your experience original estimate real data recalibration updated estimate

18. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 18 Things you can Predict and Monitor Costs Sizes Quality Reliability Schedules Staffing etc.

19. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 19 Predictions vs Process Requirements Analysis Design Code & Module Test SW Integ. & Test Released Software Predictions based on actual code Predictions based on process and design info Actuals known

20. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 20 In Order to Improve the Process, you need a Measure Most organizations measure process in terms of three quantities: -- productivity -- what is produced per unit of cost -- cycle time -- time required to produce -- quality -- customer satisfaction level or defects identified in released products But few organizations have defined these in a consistent way So you need to start by defining these in a way that fits your goals

21. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 21 Example - Defect Density We will look briefly at models and how they might be used for managing defect levels

22. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 22 Models of Defect Density Goal: reduce defects to levels acceptable to the customer Question: “how many defects are present in the system”?

23. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 23 Initial Model Approach: each step is modeled as something that can inject new defects and eliminate defects Process Step I = Defects InputO = Defects Output F = Defects Found and Fixed C = Defects Created O = I + C - F

24. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 24 A More Detailed Defect Model of a Process Step Inject Defects escaping defects incoming defects undetected defects detect defects repair defects incorrect repairs defects removed This model accounts for the mistakes we make when fixing defects - I.e., the new defects we may accidentally introduce

25. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 25 Rayleigh Model of Defect Density (1) 2 t 2 -(t/c) 2 f(t) = ----- * ---- * e t c ( ) (1) Kahn, S. H., IBM Systems Journal, Vol. 30, #3 (1991)

26. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 26 Exponential Model of Defect Density

27. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 27 Strategies for Reducing Defects Problem - process variation is too wide, resulting in too many cases that are outside the acceptable limits Unacceptable Quality

28. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 28 Strategy 1: Be More Robust (widen the road) Be robust enough to accommodate errors in incoming products -- for software, this means each process step should tolerate incoming defects (e.g., prototypes, etc.) -- it also means you should cultivate customers who tolerate lots of problems Widen the Road

29. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 29 Strategy 2: Produce fewer defects (narrow the car) Reduce defects -- for software, this means inspections, etc. to minimize defects in released software Narrow the Car

30. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 30 Combine Both of These to get Maximum Quality

31. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 31 At each step of the process... You have more information than before So you can update your estimates And make proper management decisions You can also gain insight into process improvement if you tie actual data to models and try to understand what process problem caused you to be incorrect

32. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 32 As a Rule... The general principles of management tend to be independent of discipline But the measures tend to be discipline specific, especially those associated with product and process

33. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 33 Another Tendency The fundamental process problems tend to be organic That is, they are built into the infrastructure and the culture So you may need to make fundamental and politically unpopular changes in order to make things better Sometimes only the need for survival is powerful enough to achieve this – “The competition is killing us because they do it differently”

34. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 34 Final Remarks Start small -- appraisals should result in small, doable improvements Educate yourself - the more you know about many things the better off you will be Look for process problems - working hard doing the wrong thing is wasteful, frustrating, and de-motivating -- but many people consider this “business as usual” because they don’t know any better

35. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 35 Process Reengineering Basic Idea: from time to time, it is necessary to reinvent the process Motivation can come from: – intense competition – new technologies – new customers – new laws – other changes in the environment – realization that competition does it better – realization that you have not rethought the issues in a long time and may be stagnating

36. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 36 Changes Make Organizations and Processes Obsolete You define your organization to mirror or support a given environment. But environments change and changes can make organizations less effective.

37. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 37 Organizations Need Periodic Redesign or Reengineering “We’ve always done it this way and it works just fine” Assess the environment Rethink the processes Reinstate the direct connections to – customers – suppliers – employees – etc.

38. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 38 Example 1 IBM Credit Approval Process Before: Credit Approval Must Go through Six Departments Each Department takes 2-3 business days So Credit Approval takes 3 weeks Meanwhile, the competition is approving credit in 1 week! And we are losing sales because of this.

39. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 39 Wrong Solution IBM Credit Approval Process Each department must reduce its cycle time to 1 day Each department does this through incentives It is accomplished by – Rejecting faulty input (even slightly faulty) – Producing output that is often defective Result: Average Credit Approval takes 6 weeks! Greatly increased rework!

40. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 40 Reengineered Solution IBM Credit Approval Process One individual handles all six steps of each transaction The six former departments become consultants, available to handle special cases but not involved in routine cases Credit approvals reduced to 1 week!

41. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 41 Example 2 Graphic Artist Group Original Process: Need Graphic Artist Design Group: Assignment Dept G1 G2 G3 G4 G5 Design Graphic Artist Printing Group: Assignment Dept P1 P2 P3 P4 P5 Inspection Good Products Defective Products More defects are generated on the second cycle!

42. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 42 Reengineered Process for Graphic Artist Group Improved Process: Need Assignment Dept G1 G2 G3 G4 G5 Design P1 P2 P3 P4 P5 Inspection Good Products Defective Products By tying a graphic designer to a printer for the whole job, defects were repaired quickly and good products had greatly reduced cycle time.

43. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 43 White Space A fundamental Problem of Of Hierarchical Organizations Too many handoffs between departments, where there is no responsibility at the point of need, only much higher in the organization

44. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 44 Chapter Summary Process Improvement requires knowing facts (data) and using good models Continuous process improvement will remove the flaws of the process and improve results Reengineering is necessary to adjust to changes in the environment that require more substantial process changes In the software business, change is relatively frequent and relatively significant Although some principles do not change

45. January 20, 2000 CSE 7315 - SW Project Management / Chapter 14 – Process Improvement Copyright © 1995-2000, Dennis J. Frailey, All Rights Reserved Slide # 45 End of CHAPTER 14