CMMI ACQUISITION MODEL (CMMI- -ACQ): ACQ): CMMI ACQUISITION MODEL (CMMI DRIVING PROCESS IMPROVEMENT DRIVING PROCESS IMPROVEMENT SEPG Conference - March, 2008 Dr. Richard Frost Global Director, Systems Process and Program Management General Motors Corporation
Agenda Agenda • Overview Overview • • GM IS&S and the CMMI for Acquisition GM IS&S and the CMMI for Acquisition • • CMMI CMMI- -ACQ Integration at General Motors ACQ Integration at General Motors • 2 2
Overview Overview • General Motors now acquires 100% of its IT solutions General Motors now acquires 100% of its IT solutions • • There was no maturity model for organizations that There was no maturity model for organizations that • acquire technology acquire technology • General Motors partnered with the Software General Motors partnered with the Software • Engineering Institute (SEI) to develop the CMMI- -ACQ ACQ Engineering Institute (SEI) to develop the CMMI • General Motors was the first commercial enterprise to • General Motors was the first commercial enterprise to be appraised utilizing the CMMI- -ACQ ACQ be appraised utilizing the CMMI • The best practices encompassed in the CMMI • The best practices encompassed in the CMMI- -ACQ ACQ drive quality throughout the IT acquisition process drive quality throughout the IT acquisition process 3 3
General Motors Products General Motors Products 1 in every 6 cars in the world is from the GM 1 in every 6 cars in the world is from the GM Chevrolet Chevrolet GMC Cadillac Saturn GMC Cadillac Saturn Saab Holden Saab Holden Vauxhall Opel Vauxhall Opel Hummer Pontiac Daewoo Buick Hummer Pontiac Daewoo Buick 4 4 4 4
GM’ ’s Profile s Profile GM 280,000 employees worldwide 280,000 employees worldwide • • $207 billion revenue in 2006 $207 billion revenue in 2006 • • Products sold in more than 200 countries Products sold in more than 200 countries • • Sold more than 9 million cars and trucks in 2006 • Sold more than 9 million cars and trucks in 2006 • 181 Manufacturing facilities in 35 countries • 181 Manufacturing facilities in 35 countries • 14,000+ dealers in North America alone • 14,000+ dealers in North America alone • $89 billion of direct materials purchased annually • $89 billion of direct materials purchased annually • 14 million pounds of material received daily 14 million pounds of material received daily • • Approximately 5,000 parts in each vehicle Approximately 5,000 parts in each vehicle • • 375 million square feet of Manufacturing space including 375 million square feet of Manufacturing space including • • Joint Ventures Joint Ventures 3,200 sources provide delivery "just in time" • 3,200 sources provide delivery "just in time" • 5 5
GM’ ’s Global s Global GM GM’s Global GM’ ’s Global Design & s Global Design & GM’s Global Design & GM Design & Engineering Centers Design & Engineering Centers Design & Engineering Centers Engineering Centers Engineering Centers Engineering Centers 15 Design Centers in 15 Design Centers in 12 Countries 12 Countries 6 6 6 6
GM’ ’s Manufacturing Plants s Manufacturing Plants GM 181 Manufacturing 181 Manufacturing Plants in 35 Countries Plants in 35 Countries 7 7
GM is a Tightly Integrated Global Company GM is a Tightly Integrated Global Company The Global Environment The Global Environment Truly 24x7 – – we are always working somewhere we are always working somewhere Truly 24x7 • • Region, country and brand stand- -alone structures no longer alone structures no longer Region, country and brand stand • • exist exist Suppliers and joint ventures are integral to the model • Suppliers and joint ventures are integral to the model • Drives Drives Global collaboration • Global collaboration • Real- -time access to critical business information time access to critical business information Real • • Supply chain visibility Supply chain visibility • • Global regulatory requirements Global regulatory requirements • • Always- -on infrastructure (no downtime) on infrastructure (no downtime) Always • • 8 8
GM has been acquiring – – not not GM has been acquiring developing – – IT Systems for decades IT Systems for decades developing 9 9
Evolution of GM IT Evolution of GM IT Evolution of GM IT IT IT Supplier Supplier First Generation First Generation IT IT 1984-1996 1984-1996 Supplier Supplier IT IT IT IT IT IT Supplier Supplier Supplier Supplier Supplier Supplier IT IT Supplier Supplier IT IT IT IT IT IT Supplier Supplier Supplier IT IT IT IT IT IT Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Common Common Common IT E E nterprise nterprise IT E nterprise IT Supplier Supplier Supplier Second Generation Management Management Second Generation Management IT IT IT IT Processes Processes Processes IT 1996-2003 Supplier IT Supplier 1996-2003 Supplier Supplier Supplier Supplier IT IT IT Supplier Supplier Supplier Third Generation Third Generation 2003 → 2003 → 10 10
The Challenge The Challenge How does GM structure the vendor How does GM structure the vendor rd generation out relationship in the 3 rd generation out- - relationship in the 3 sourced environment? sourced environment? � Leverage best-in-class suppliers � Become more nimble � Focus on our core competencies � Be better positioned to take advantage of new technologies � Assure quality of all systems 11 11
2007 Global IT Industry 2007 Global IT Industry 2.5 $2.13 Trillion 2.0 75% of every $1.55 Trillion dollar in IT 1.5 spent is on Total IT Operating Acquisition 1.0 Budgets Total IT Purchases .5 Trillions of $US 12 12 * Source: Forrester
Research of IT Models Research of IT Models � CMM, CMMI � SPICE � IEEE � COBIT � ITIL Findings: Findings: • Enterprises were acquiring many systems • Models focused on development and operation • No models adequately support the acquirer • Industry was looking for an acquisition model 13 13
Software Engineering Institute Software Engineering Institute and GM and GM • Strategic decision to • Thought Leadership acquire - not build in developing maturity models • Previously utilized (CMM, CMMI) CMMI development • Integrator of best • Recognition that practices in software Acquisition is engineering different • Recognition of value • Requires standard in offering model for model for global acquirers deployment 14 14
CMMI- -ACQ Model ACQ Model CMMI � Model for being a � Model for being a ‘ ‘good customer good customer’ ’ � Effective implementation requires understanding � Effective implementation requires understanding and correctly applying the model and correctly applying the model S o l i c i t a t i o n & t n e m e S e u r p g p A l i e r t n e m e A g g a r n e e a m M e n t D e v e l o p m e n t CMMI Model Framework A c q u i s n i o t i (CMF) t i o i s n i u R q e c A q u i r e m n o e t i n a d t D s l i a CMMI Model V e v e l 16 Project, o p m e n t Framework Organizational, (CMF) and Support Process Areas Acquisition n o i t i s u i q Technical c A n o i t a c i Management f i r e V 15 15
General Motors Implementation General Motors Implementation of CMMI for Acquisition of CMMI for Acquisition 16 16
CMMI- -ACQ for GM ACQ for GM CMMI � GM analyzed and internalized the CMMI � GM analyzed and internalized the CMMI- -ACQ model ACQ model � We determined the core competencies essential to � We determined the core competencies essential to implementing IS&S goals implementing IS&S goals Contracting d e t a r g e t n I (GSCs & ITSRs) t c e o j r P g n i n n a l P Project Management R Acceptance e q u i r e m e Standardized Work n t s & P Criteria r o t o t CMMI y p Processes e s Model Framework Enterprise & Domain (CMF) Integration Peer Architecture Reviews 17 17
CMMI- -ACQ for GM ACQ for GM CMMI � Implementing the model requires structural change and � Implementing the model requires structural change and global standardization global standardization � Organizational Structure Organizational Structure � � Common Global Processes Common Global Processes � � Common Service Agreements Common Service Agreements � � Continuous Improvement Continuous Improvement � Structure Structure Contracting e d t a g r e t n I (GSCs & ITSRs) t c e o j r P g n n i n a P l Project Management Processes Processes Requirements e c n a t p Standardized Work e c c A & Prototypes a r i CMMI e t Processes r i C Model Framework Enterprise & Domain (CMF) Integration Peer Architecture Reviews Contracts Contracts 18 18
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