Tollgates

Prepared for Six Sigma for Software Development

Daren Daggs,
Seagate Technology

Agenda
z

Seagate history

Six Sigma at Seagate

A few words about Six Sigma

Information Technology @ Seagate

Tollgates intro

Tollgates for customers

Tollgates for business

Tollgates for project managers

Tying it together

Summary
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January 24, 2003

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Daren Daggs: Bio

Daren Daggs possesses (15+) years of broad-based experience in operations, materials,
business management (program management) and information technology.
His career in the disc drive industry began in 1988 when he joined Seagate Technology as
materials planner. His initial responsibilities included materials management
implementation for Seagates European repair center, followed by worldwide repair
scheduling. Mr. Daggs then joined program management to oversee third-party drive
repair efforts.
Daren was one of the first Seagate employees to earn the position of Six Sigma director.
He has applied his specialized knowledge and training in the deployment of Six Sigma for
Seagates customer service, Enterprise drive design and IT organizations. He has also
assisted in the implementation of Seagates Design for Six Sigma initiative.
Daren currently serves as one of Seagates Senior Directors, overseeing IT process
engineering, Six Sigma deployment and Develop with Six Sigma (a.k.a. Six Sigma for
Software) deployment.
Daren graduated from Northwest Oklahoma State University with a Bachelor of Science
degree in mathematics and additional training in computer science and statistics.
Daren completed Black Belt training April, 2000 and has further graduated from DFSS and
DFSS for Software.

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Seagate History
z

Founded in 1979

z First to build 5.25 hard disc drives for the PC

z Positioned as the world's largest manufacturer of disc

drives, magnetic discs and read-write heads

z Greatest strength: ability to respond quickly and intelligently to

change - inherent across the industry

z In FY2002 Seagate shipped:

1,959 PetaBytes of ESG/PSG storage (250 bytes)

10.2 million Enterprise drives - the share leader by 6.2 million drives
More Enterprise drives than Maxtor, Fujitsu and IBM combined

1.2 million 15,000 RPM drives

44.8 million personal storage drives

Over 2.4 million drives into CE applications

NYSE Symbol: STX

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Six Sigma at Seagate

z

Executive Commitment made in May 98

Trained >1,285 Black & Brown Belts

Trained >7,000 Green Belts

Hard Savings >$800M

Deployed in all facets of the business

Active engagement with suppliers

Initial engagement with customer underway

DFSS deployed in all aspects of research design and development

Business Process Management Systems (BPMS) gaining traction

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A Few Words about Six Sigma

z

Dont pretend If youre going to launch, embrace

with passion or dont bother.

Change doesnt happen overnight.

Six Sigma is what it is. Use it to drive your business. Dont try to fit
your business into a six sigma cube.

Six Sigma is built on sound principals and good tools but without
process adherence it is all just words.

Management must adopt and embrace first. Otherwise, all you

get is a few (frustrated) engineers with improved skills.
Dont be intimidated by the jargon. All sound business developments
start with:

Listening to the customer

Defining the problem
Weighing the alternatives
Planning & swift execution

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January 24, 2003

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Information Technology @ Seagate

z

Fully contained in-house support of Operations and application

development / deployment

Develop applications ranging from Factory Information Systems,

Supply Chain applications, eBusiness and Web Applications

Supports internally and externally hosted applications

Uses minimal contract resources

Aggressively embraces Six Sigma methods and tools

16 Black Belts

IT Execs trained at Brown Belt level by June 03

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it

Tollgates: Websters Definition

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Tollgates: Introduction
z

Tollgates are simply

A means of engaging the customer

A means of justifying the effort

A verification that requirements are met

A means of engaging the stakeholders

A means to consistent processes

A means of staying on track

IT Projects

A means to an end

Go/no-go gauge for process quality

Tollgates are process checkpoints where deliverables

are reviewed and measured, and readiness to move
forward is assessed

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Tollgates: Introduction
z

Call them what you want!

Tollgates, pass gates, checkpoints, reviews

Use them as you will!

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Your environment may require adaptation

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The benefits are clear and substantial

Less wasted effort / better execution

Improved relationships with customers

CTQs well-understood & delivered

Consistency in process

On-time delivery (minimize scope creep)

Leverage effort of entire team

We cannot progress past CMM Level-2 without reviews

Requirements mgmt., planning, tracking, QA, configuration management

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January 24, 2003

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Tollgates: Introduction
As with turnpikes and toll roads:
The toll is dependent on the load. You must pay to use the resources

But Dont use a sledge hammer to kill a fly

- Pang Wee Lee, Seagate IT Director

Why bother?

Prevent resources from being wasted

Facilitate the voice of all the customers and stakeholders

Establish a business need for the application

Determine if the business can afford the application

Ensure ROI and benefits are considered

Ensure conformance to standards

Validate solution against requirements

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January 24, 2003

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Agenda
z

Seagate history

Six Sigma at Seagate

A few words about Six Sigma..

Information Technology @ Seagate

Tollgates intro

Tollgates for Customers Engaging your customer

Tollgates for business

Tollgates for project managers

Tying it together

Summary

Tollgates
January 24, 2003

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Tollgates for the Customer: Motivation

Have you ever had a customer who wasnt real sure what they
wanted, they just needed it to be better?
Have you ever had a customer who knew exactly how you should
run your end of the project and how much time you should take?
Have you ever had a customer who was quick to criticize and
slow to engage?
Have you ever had a customer that changed their mind the week
you were supposed to go into production?
Factoid: Value of a dollar spent
Every dollar spent on advertising yields less than five dollars in
revenues but every dollar invested in creating a good customer
experience can yield more than $60 in revenues
Working Council for Chief Information Officers

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Tollgates for the Customer: Execution

z

The Need

Process Controls

VOC addresses needs of the organization

Ensure VOC was correctly heard
Validate distillation of VOC into product requirements
Requirements fulfill CTQs
Liaison between IT activities and customer needs
Tracking to budget expectations
Project reviews
Application acceptance and deployment

The Resources

Business case and justification (Six Sigma project)

User community
Program development process

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Tollgates for the Customer: Key Points

z

Customer reviews are imperative to success

Voice of the Customer is ongoing

Change happens recognize & manage

Scope creep kills

Customer behavior must drive design & test

Use cases, load, reliability, etc.

Help developers understand what & why

Customer assumes more ownership of the application

Engage your customer

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January 24, 2003

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Agenda
z

Seagate history

Six Sigma at Seagate

A few words about Six Sigma..

Information Technology @ Seagate

Tollgates intro

Tollgates for customers Engaging your customer

Tollgates for Business - Promote Value & Need

Tollgates for project managers

Tying it together

Summary

Tollgates
January 24, 2003

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Tollgates for Business: Motivation

Too many half-baked ideas become projects!
Have you ever seen a company spend millions on an
application, only to have it aborted or just not used?
Have YOU ever spent millions on an application
to have it aborted?
Factoids: Software development projects
z

More than 50% of IT development projects come in late and

over budget

Those completed contain fewer features and functions

than originally specified

Nearly 30% of these projects are cancelled during development

with faulty or incomplete requirement management cited as the
major cause failure
Working Council for Chief Information Officers

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Tollgates for Business: Execution

Oversight provided by a governing body
z

The Need

Was Six Sigma used on the existing process?

Root cause found and verified

Process Controls

Are CTQs identified and weighed against the alternatives? (QFD)

To what extent will the proposed solution address the need (FMEA)
What is the business case?
Has a Situation Appraisal been completed?
Has a Decision Analysis been conducted on alternatives?
Is the sponsor actively engaged?

The Resources

Is funding available?
Is infrastructure available?
What are the implications of doing nothing?

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January 24, 2003

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Tollgates for Business: Key Points

z

Too many half-baked ideas are launched

Active sponsor must be engaged

Customers must be engaged see Customer Tollgates

Understand how the deployment fits the portfolio

Supporting infrastructure is in place

Verify that duplicate effort is not underway elsewhere

Under what conditions should we kill the project?

Promote Value & Need

Tollgates
January 24, 2003

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Agenda
z

Seagate history

Six Sigma at Seagate

A few words about Six Sigma..

Information Technology @ Seagate

Tollgates intro

Tollgates for customers - Engaging your customer

Tollgates for business - Promote Value & Need

Tollgates for Project Managers - Focus on Execution

Tying it together

Summary

Tollgates
January 24, 2003

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Tollgates for the Project Manager: Motivation

Have you ever had a project that failed and you didnt know why,
or couldnt turn it around?
Have you ever delivered a terrific product just not what the
customer wanted?
Have you ever had to compromise and make tradeoffs between
cost, schedule, quality, and feature sets to deliver something?
Have you ever been surprised by unseen risks?
Three Simple Project Management Objectives:
z

50% Thinking Ahead

25% Communication

25% Yardstick

Geoff Reiss,
Project Management Demystified

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Tollgates for the Project Manager: Execution

z

The Need:

The problem and process requirements are well-defined in

Six Sigma terms
The meaning of quality has been defined

Planning and risk management are ongoing activities

Process Controls:

Roles and responsibilities are understood

Planning: project, quality, and test plans
Well-defined milestones and deliverables
Feedback channel available to all team members

The Resources:

Project team possesses necessary technical expertise

Project team possesses experience with business environment

There are sufficient resources to do the required work on time

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4x

1.6x

2x

1.25x

1.5x

1.15x

1.25x
1.0x
.8x

1.05x
1.0x
.9x

.67x

.85x

.5x

.8x

.25x
Initial
Project
Definition

Approved
Project
definition

Requirements
Specification

Rough
Design
Specification

Schedule Uncertainty

Cost Uncertainty
(effort & size)

Project Tollgates: Narrowing The Funnel

.6x
Project
Complete

Detailed
Design
Specification

Critical Project Tollgates

Cost Models for Future Life Cycle Process:
COCOMO 2.0, Boehm et al, 1995
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Tollgates for the Project Manager: Key Points

z

Project Planning
Verify your of capability to deliver within project constraints
Ensure team competencies match technical needs
Readiness to proceed

Project Definition
Validate CTQs & QFD with Customer and IT Project Team
Requirements approved by Customer
Project plan approved by Customer
Acceptance requirements provided by Customer

Design

Detailed design approved by Customer

Development
All QA plan requirements met
Successful acceptance testing verified by Customer

Focus on Execution
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January 24, 2003

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Agenda
z

Seagate history

Six Sigma at Seagate

A few words about Six Sigma..

Information Technology @ Seagate

Tollgates intro

Tollgates for customers - Engaging your customer

Tollgates for business - Promote Value & Need

Tollgates for project Managers - Focus on Execution

Tying it together

Summary

Tollgates
January 24, 2003

Seagate Confidential

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Tollgates: A System View

Feed Forward Loop
Readiness to
proceed. Meets
process standards
and customer
expectations

;
Feed Forward Loop
Validation that the
solution meets
customer CTQs
- Process
- KPOVs
- User satisfaction

Processes
Users
Customer
IT Business Team(s)

Inputs

Project Team

Suppliers

- Customer Bus. Process

- Hosting Strategy
- Security Strategy
- Infrastructure Strategy
- IT Resource Management
- Portfolio Management
- Customer Chargeback
- Project Management
- Software Development
- Operations Support
- Customer Serv./Helpdesk
- Post Deploy Quality

Outputs

Customer
Feedback Loop
Initiation of Control
Plan contingencies
User feedback
Post-deploy quality
data

Feedback Loop
"More" is required
- Data
- Scope reduction
- Problem definition
- Boundary setting

Tollgates can touch many key processes

z Tollgates drive quality via feed-forward and feedback loops
z

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IT Solution

Tollgate Timetable
Project Lifecycle

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Business
Case and
Justification

Acceptance
Criteria
Defined

Deployment
Plan
Completion

Acceptance
Testing

Product
Deployment

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Funding,
Infrastructure
and Resource
assessment

Executive
Program
Review

Resource
Redeployment

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Software Development Lifecycle and Planned Releases
Requirement
Review

Feature
Freeze

Design
Review

Code Reviews
&
Inspections

QA Plan
Fulfillment

Project Lifecycle
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January 24, 2003

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Operations
Acceptance

Agenda
z

Seagate History

Six Sigma at Seagate

A few Words about Six Sigma..

Information Technology @ Seagate

Tollgates Intro

Tollgates for Customers - Engaging your customer

Tollgates for Business - Promote Value & Need

Tollgates for Project Managers - Focus on Execution

Tying it Together

Summary
Tollgates
January 24, 2003

Seagate Confidential

Page 28

Tollgates: Summary
z
z

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Tollgates offer invaluable project Vital Signs

Tollgates help assess project quality

Must be taken on a frequent & ongoing basis

to be effective

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Tollgate deliverables should be well-defined and

included in the project plan

Adopt Six Sigma tools to meet real business and process needs

Know thy Customer

Stress process blocking and tackling first!

Requirements management
Planning
Tracking
Quality Assurance
Configuration management

Measure well Pay toll as-required

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January 24, 2003

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Tollgates: Reference Material

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Detailed Program Scorecard Example

Auto-Replenishment Phase II
IT Executive:




Business Lead:
IT Lead:
Customer:

Total Cost:




Labor:
Capital:
Additional:

Mike Smith
Rick Gold
Operations-Drive

$500,320
$500,320
$0
$0

Labor Hours:




Actual:
Remaining:
Unscheduled:

2,900
2,152
-332

% Complete:
61
Projected Timeline:




Program Summary/Description:

Fred Jones





Manage remote inventory using

target inventory levels on demand
pull.
Automate >75% current process
steps.
Automate >80% of mfg volume.
Program emphasis is directed to
business process change and
automation.
Must manage targets by site.
Customer input is not always site
specific.

Status/Issues:

PMT Review:
08/23/2001
IT Commit:
03/01/2003
Est. Completion: 09/11/2003

Health:

Green

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OCIO Program Scorecard Example

Office of
the CIO
Program
Scorecard

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Program Score Sheet

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