PPBs and PPMs in OPM Process Area of CMMI v1.3

OPM or Organizational Performance Management is a new process area that has been added to v1.3 of the CMMI model.

It is not entirely new since it replaces and extends the OID (Organizational Innovation and Deployment) process area.

Hence effectively, version 1.3 of CMMI contains same number of process areas as compared to version 1.2 (2 at level 5 and 22 overall).

So OPM is OID plus something more.

One major difference is the expectation of CMMI v1.3 model that the performance/process improvement initiatives and activities in an organization should be explicitly linked to business objectives, must impact the PPBs (Process Performance Baselines) and PPMs (Process Performance Models) and need to be demonstrated statistically, preferably in terms of changes to PPBs and PPMs.

An example to illustrate the above is described below:

• Suppose the business objective is to deliver to the customers on time. 
• A parameter of interest for the business in this case could be OTD (on time delivery). 
• For this the 'agreed date of delivery' committed to the customer and the 'actual date of delivery' to the customer is captured.
• OTD can be defined in terms of the difference between 'actual date of delivery' and 'agreed date of delivery' and is computed for further analysis.
• The process behavior is statistically characterized (as needed by level 4 expectations also). 
• This means the average (mu) and variance (sigma) of OTD is computed.
• Effectively speaking this is captured in the form of PPBs and PPMs.
• Suppose the average (mu) and variance (sigma) values are set wide apart or not within target.
• This becomes a case fit for improvement and OPM can kick in.
• The improvement effected through an OPM project needs to be statistically proven.
• This means the average (mu) and variance (sigma) values should show change (in the positive direction).
• From statistical perspective variance (sigma) should reduce and average (mu) should move closer to the target (higher or lower as the case may be).
• Effectively speaking this should result in change to the PPBs and PPMs.

PPBs and PPMs are hence integral to OPM implementation.

Since OPM comes after level 4 process areas have been implemented (specifically, OPP - Organizational Process Performance) use of PPBs and PPMs is clearly an expectation from the CMMI model perspective.

In a way it is also a natural progression for the organization from managing project performance or work performance quantitatively by using PPBs and PPMs in QPM (Quantitative Project Management) or QWM (Quantitative Work Management) respectively to managing the organizational performance quantitatively by using PPBs and PPMs in OPM (Organizational Performance Management).

Using CMMI and Six Sigma Together

Both the six sigma methodologies - DMAIC and DMADV/DFSS - can be easily used within a CMMI framework implementation. Organizations that have adopted either of the two, CMMI and six sigma, will find great value in understanding the other and surely realize the "teeth" they can provide to their quality and improvement program.

CMMI is a generic framework which focuses on three aspects below and the integration of six sigma into a CMMI framework can be thought of along these three aspects:

Engineering

DFSS fits into engineering process areas of CMMI in a manner which is quite natural. All DFSS tools can be mapped to practices of the various engineering process areas (RD, TS, PI, VER, VAL). An organization can extend its existing engineering process areas implementation toolkit by simply adding the DFSS toolkit to it. The statistical rigor in DFSS can help engineering activities to become much more effective and stronger. In some sense for an organization which is attempting to adopt L4 and L5, using DFSS can be a good way to introduce "high maturity" in its engineering activities.

Process Improvement

DMAIC fits into process improvement process areas of CMMI in a manner which is quite natural. All DMAIC tools can be mapped to practices of the various process improvement process areas (OPF, OPM, CAR). An organization can extend its existing process improvement process areas implementation toolkit by simply adding the DMAIC toolkit to it. The statistical rigor in DMAIC can help process improvement activities to become much more effective and stronger. In some sense for an organization which is attempting to adopt L4 and L5, using DMAIC can be a good way to introduce "high maturity" in its process improvement activities. In fact, CMMI high maturity expects explicit use of statistical and quantitative techniques to manage the organization's processes.

Project Management

The general approach used by either of the two six sigma methods lays heavy emphasis on a project-based approach. In many companies people are working not just on projects but six sigma projects. This reflects the strong orientation in six sigma towards project management. An organization can extend its existing project management process areas implementation toolkit by simply adding the six sigma planning and management concepts like charter, reviews, etc.

In conclusion, it can be said that CMMI is a framework whereas six sigma is a method. And like other methods six sigma can be used within a CMMI framework implementation to enhance its rigor and effectiveness.