CAPABILITY MATURITY MODEL

CAPABILITY MATURITY MODEL

1. Provides a description of how the organization or one of its aspects might look at different stages of growth.

   • They are focused on transforming the organizational environment in wich best practices are performed.
     • These models give little guidance on the specific steps that should be taken to improve and progress up the maturity levels.

2. Management System Maturity Model

   • 1. Initial
     • Business processes are characterized as ad hoc, and even chaotic.
   • 2. Repeatable Basic Approach
     • Basic process management controls are established to manage results and the necessary process discipline is in place to repeat earlier successes.
   • 3. Defined Systems Approach
     • Business processes are well-defined, understood, and integrated into a "systems" model of how the business operates.
   • 4. Managed Continuous Improvement
     • Processes are well integrated across the organization and the relationship of process performance to customer satisfaction and value is well understood.
   • 5. Best In Class
     • A well-designed methodology for managing process improvement has been established and the company has optimized its organizational structure,culture, and systems.

3. Model to better understand levels of maturity of a business system

   • Maturity of the company's business environment will have an impact on its ability to successfully implement process improvement efforts.
   • An effort to improve processes is probably futile if the very basic elements that are needed to suppot effective process management are not in place.
   • Companies need to implement effective quality management and process management systems before any serious improvement initiative is considered.

4. CMM Level 1 to 2

   • Level 1
     • Is described as dysfunctional, with minimal or no processes in place.
   • Level 2
     • Organiztion usually begins by focusing on the documentation and the redesign of major core business processes.
   • Appropiate process improvement models are:
     • The Plan-Do-Check-Act (PDCA)
       • The PDCA cycle is a flexible, simple approach to address corrective action in the workplace.
     • Problem solving is another appropiate model to use in an unstable business environment.
       • These three process improvement models will drive the organization to defining processes and stabilizing them.
     • Customer Satisfaction data as a driver for improvement encourages a priority for forward facing activities that provide immediate gains where it counts most.
   • Organization may be experiencing unpredictable or unstable processes wich are poorly controlled.

5. Level 3 to Level 4

   • Level 3
     • Is represented as a developing system
   • Processes are well defined and the organization is now proactively managing processes to meet identified customer needs.
   • At this level of organizational maturity, more sophisticated process improvement techniques become effective:
     • Lean
       • Systems approach that seeks to eliminate all waste and minimize any disruption to the smooth flow of products and services to the customer.
     • ISO family of standards
       • Once precesses across the organization are standardized, the organization is in a position where it can successfully apply for registration and auditing to a strict system performance standards such as ISO.
     • National Baldrige type performance excellence models
       • Participation in a national Baldrige type performance excellence model guides the maturing organization to an overall systems perspective.
     • Cost of Quality
       • Cost of Quality becomes a viable approach to identifying priority areas for improvement.
     • Six Sigma Define-Measure-Analyze-Improve-Control (DMAIC)
       • At level 3, processes are stable enough that Six Sigma tools for assessing and reducing variability in product and service outcomes using the DMAIC improvement cycle.

6. Level 4 to Level 5

   • Level 4
     • Organization reflects a reliable ability to gather quantitative data on the performance of projects and processes.
   • The maturing organization measures and controls processes through strategic planning, feedback loops and continous improvement.
   • Cross-functional improvement techniques:
     • Supply chain management
       • As an improvement method assumes that the individual components of the supply chain are effectively and efficiently manged.
     • Quality Function Deployment
       • Is a technique used to identify external customer needs and to translate those needs into internal technical requirements, processes, procedures and control plans.
     • Design for Six Sigma
       • As a complex design function, requires that the organization have a clear vision of the future and that they can effectively translate that vision into operational reality.
   • Few companies achieve a World Class level 5 system where processes are continuously improved using quantitative measures.

7. Level 2 to Level 3

   • Level 2
     • Is represented as the Awakening System.
   • The organization begins to focus on a project based improvement approach.
   • Improvement methods that are effective at this level might be:
     • Decision making
       • There is a concerted effort to organize quantitative data into patterns from which reliable observations can be made.
     • Quality Management System
       • Is the precess of establishing policy and objectives with regard to quality and then directing and controlling the activities necessary to achieve those objectives.
     • The state level Baldrige Performance Excellence model
       • Is another system approach to organizing processes into an enterprise wide, interdependent whole.
     • Management Audits
       • Are another way to begin viewing disparate processes as a system of interacting communication channels.