cmm vs. iso

1 / November 2007 / EDS INTERNAL

11 April 2007

CMM, ISO, Sarbanes Oxley

CMM vs. ISODavid S. Craft CIRM, PMP

Engineering & Manufacturing Services

2 / 10 April 2007 / EDS INTERNAL

11 April 2007

CMM vs. ISO, Sarbanes Oxley

Agenda

Who Am I

ISO

CMM

Similarities And Differences

Sarbanes Oxley


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Who Am I

VISTA Volunteer

Industrial Engineer

Chief Industrial EngineerManager Production Planning & Control

Inventory Control ManagerShift Supervisor

Materials Manager

Consultant

Project Manager

Information Specialist, Senior

Team Leader

Managing Consultant Engineering and Manufacturing ServicesApplications Service Delivery

Internal ISO Auditor


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Why We Need Standard Processes

Estimating (History)• Scope• Cost• Time • Tools

Deliver to Estimate (Visibility)• Time• Cost• Quality

Handling/Controlling Changes• Planned• Unplanned• Scope Creep


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How to Achieve Quality Processes

ISO

CMM


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Meet ISO

ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards.

ISO is a network of the national standards institutes of 157 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system.

ISO is a non-governmental organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government. On the other hand, other members have their roots uniquely in the private sector, having been set up by national partnerships of industry associations.

Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society.


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What are standards?

Standards are documented agreements containing technical specifications or other precise criteria to be used consistently as rules, guidelines, or definitions of characteristics, to ensure that materials, products, processes and services are fit for their purpose.

For example, the format of the credit cards, phone cards, and "smart" cards that have become commonplace is derived from an ISO International Standard. Adhering to the standard, which defines such features as an optimal thickness (0,76 mm), means that the cards can be used worldwide.

International Standards thus contribute to making life simpler, and to increasing the reliability and effectiveness of the goods and services we use.

Last modified 2002-07-17


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ISO's name

Because "International Organization for Standardization" would have different acronyms in different languages ("IOS" in English, "OIN" in French for Organisation internationale de normalisation), its founders decided to give it also a short, all-purpose name. They chose "ISO", derived from the Greek isos, meaning "equal". Whatever the country, whatever the language, the short form of the organization's name is always ISO.


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• The ISO 9000 and ISO 14000 families are among ISO's best known standards ever. ISO 9001:2000 and ISO 14001 (1996 and 2004 versions) are implemented by some 887 770 organizations in 161 countries.

• The ISO 9000 family addresses "quality management". This means what the organization does to fulfill:

the customer's quality requirements and applicable regulatory requirements, while aiming to enhance customer satisfaction, and achieve continual improvement of its performance in pursuit of these objectives.

• The ISO 14000 family addresses "environmental management". This means what the organization does to:

minimize harmful effects on the environment caused by its activities, and to achieve continual improvement of its environmental performance.

ISO 9000 and ISO 14000


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ISO’s Impact

In the global economy ISO 9001:2000 and ISO 14001:2004 have become thoroughly integrated with the

world economy. ISO 9001:2000 is now firmly established as the globally accepted standard for

providing assurance about the quality of goods and services in supplier-customer relations.

ISO 14001:2004 confirms its global relevance for organizations wishing to operate in an environmentally sustainable manner.

The positive roles played in globalization by ISO’s standards for quality and environmental management systems include the following:

• a unifying base for global businesses and supply chains – such as the automotive and oil and gas sectors

• a technical support for regulation – as, for example, in the medical devices sector)

• a tool for major new economic players to increase their participation in global supply chains, in export trade and in business process outsourcing;

• a tool for regional integration – as shown by their adoption by new or potential members of the European Union

In the rise of services in the global economy – nearly 33 % of ISO 9001:2000 certificates and 31 % of ISO 14001 (1996 and 2004 versions) certificates in 2005 went to organizations in the service sectors.


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Sector Standards Pages

Generalities, Infrastructure and Sciences 1,406 49,761

Health, Safety and Environment 658 20,252

Engineering Technologies 4,099 169,843

Electronics, Information Technology and Telecommunications

2,447 161,132

Transport and Distribution of Goods 1,710 44,918

Agriculture and Food Technology 954 20,335

Materials Technology 3,943 93,121

Construction 311 11,068

Special Technologies 121 3,064

Total 15,649 573,494

Where are the Standards (12/31/05)


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The ISO family includes:• ISO 9000:2000 – Quality Management Systems –

Fundamentals and vocabulary• ISO 9001:2000 – Quality Management Systems -

Requirements• ISO 9004:2000 – Quality Management Systems –

Guidelines for performance improvement• ISO 19011 – Guidelines on quality and/or

environmental management systems auditing.• ISO 10012 Measurement control system

Which ISO Standards


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Quality System Documentation

ProceduresProcedures

Records/DocumentationRecords/Documentation

QualityQualityManualManual

Work/JobWork/JobInstructionsInstructions

Level 1Level 1DefinesDefines

Approach andApproach andResponsibilityResponsibility

Level 2Level 2DefinesDefines

Who, What, WhenWho, What, When

Level 3Level 3Answers Answers

HowHow

Level 4Level 4Results: shows that Results: shows that

the system is the system is operatingoperating


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ISO 9001:2000 Structure

4. Quality Management System4.1 General requirements4.2 Document requirements

5. Management Responsibility

5.1 Management commitment

5.2 Customer focus5.3 Quality policy5.4 Planning5.5 Responsibility, authority,

communication5.6 Management review

6. Resource Management6.1 Provision of resources6.2 Human resources6.3 Infrastructure6.4 Work environment

7. Product realization7.1 Planning of product realization7.2 Customer-related processes7.3 Design and development7.4 Purchasing7.5 Production and service provision7.6 Control of monitoring and

measuring devices

8. Measurement, Analysis & Improvement8.1 General8.2 Monitoring and measurement8.3 Control of nonconforming product8.4 Analysis of data8.5 Improvement


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Both require the organization be explicit about what their processes and quality systems are

Say what you do; do what you say

The organization records and tracks data for objective analysis

Require strong management support to succeed

Provide a structured and measured approach to quality improvement

Require an outside audit for “certification”

Both are refined/improved over time

Similarities


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Differences

ISO 9000 SW-CMMI

Outwardly focused Inwardly focused

Minimum requirements with implied continuous improvements

Explicit continuous quality improvement

Not specific to any one industry or service

Software focus

Registration Document No documentation

Continual Audits No follow up audits


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Sarbanes-Oxley Implications

With its more than 300 discrete points of enforceable law, this is the most significant piece of account legislation passed since the formation of the SEC in 1933

SOX was passed with the specific intent of increasing accountability and attempting to install ethical behavior in financial reporting and business operations.

With this increase spotlight on reporting, companies must invest resources and focus into their internal control process

The Act created the Public Company Accounting Oversight Board (PCAOB) to oversee the activities of the auditing profession and mandated reforms to enhance corporate and criminal fraud accountability.

A goal of SOX legislation is to continually improve the transparency of financial and business events that can impact the accuracy and future validity of financial statements. Projects to improve processes and regular review of controls will become common-place activities as compliance evolves. Tools that simplify project completion and track status will better enable organization to cost-effectively undertake these projects.


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SOX Major Section

302 – Corporate Responsibility for Financial Reports• Requires Executives to certify the accuracy of corporate financial

reports

404 – Management Assessment of Internal Controls• Requires executives and auditors to confirm the effectiveness of

internal controls for financial reporting

409 – Real Time Issuers Disclose• Requires any material changes in financial state of issuer be

communciated quickly and with supporting data to the public


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cmm vs. iso

Documents