What are the CMMI Benefits?

CMMI FAQ 0

19th September, 2014

How Do You Want to Work – Option 1?

• Random motion – lots of energy, not much progress
• No teamwork – individual effort
• Frequent conflict
• You never know where you’ll end up

How Do You Want to Work – Option 2?

Working with CMMI:

• Directed motion – every step brings you closer to the goal
• Coordinated efforts
• Cooperation
• Predictable results

Impacts: Costs and Benefits of CMMI

Costs May Vary

• The cost of CMMI adoption is highly variable depending on many factors, including organizational
  • goals
  • size
  • culture
  • structure
  • processes
• Regardless of the investment, organizations generally experience a respectable return on their investment.

Performance Results: CMMI

The next slide provides examples from 25 different organizations that achieved benefits in one or more of the following six categories of performance measures:

• Cost
• Schedule
• Productivity
• Quality
• Customer Satisfaction
• Return on Investment

Performance Measures

 Example of Impacts: Schedule

• 50% reduction in release turn around time (Boeing, Australia)

• Increased the percentage of milestones met from approximately 50% to approximately 95% percent (General Motors)

• Decreased the average numbers of days late from approximately 50 to fewer than 10 (General Motors)

• Increased through-put resulting in more releases per year (JP Morgan Chase)

• Met every milestone (25 in a row) on time, with high quality and customer satisfaction (Northrop Grumman Defense Enterprise Systems)
  

Example of Impacts: Productivity

• Improved productivity substantially, with “Significantly more rigorous engineering practices” due to CMMI® (Fort Still Fire Support Software Engineering Centre)

• Improved software productivity (including reuse) from a 1992 baseline by approximately 80 percent at SW-CMM® maturity Level 5 1997 to over 140 percent at CMMI ML 5 in 2001 (Lockheed Martin Systems Integration)

• 25 Percent productivity improvement in 3 years (Siemens Information Systems Ltd, India)

• Used Measurement & Analysis to realize an 11 percent increase in productivity, corresponding to $ 4.4M in additional value (reported under non-disclosure)

Example of Impacts: Quality

• Reduced software defects per million delivered SLOC by over 50 percent compared to defects prior to CMMI (Lockheed Martin Systems Integration)

• Reduced defects rate at CMMI ML5 approximately one third compared to performance at SW-CMM ML5 (Lockheed Martin Maritime Systems & Sensors Undersea Systems)

• Improved defects removal before test from 50 percent 70 percent, leaving 0.35 post release defects per KLOC (Siemens Information Systems Ltd., India)

• 44 percent defect reduction following causal analysis cycle at maturity level 2 (reported under non-disclosure)

Example of Impacts: ROI

• 5:1 ROI for quality activities (Accenture)

• 13:1 ROI calculated as defects avoided per hour spent in training and defect prevention (Northrop Grumman Defense Enterprise Systems)

• Avoided US $ 3.72 million in costs due to better cost performance (Raytheon North Texas Software Engineering)

• 2:1 ROI over 3 years (Siemens Information Systems Ltd, India)

• 2.5:1 ROI over 1^st Year, with benefits amortized over           less than 6 months (reported under non-disclosure)