The Analysis of Boeing Corporation Implementing PCMM - Essay Example

Company Summary:The Boeing Company is an American multinational organization that manufactures aircraft globally. Boeing Company performs many functions such as manufacturing, designing and wing fixing of aircrafts; provide leasing services for product support. Boeing has five divisions. The sale of Boeing was $86.62 billion in 2013 (Boeing, 2013).Why did they implant People CMM? The Boeing Company was the earlier adopter of PCMM because People Capability Maturity Model is considered a road map for the implementation of workforce practices.

The People Capability Maturity Model constantly improves the quality and capability of organizational workforce. Critical issues can easily be recognized through the implementation of PCMM; it is the foundation of best practices. Organizations use PCMM for cost reduction, waste and employee’s turnover reduction. Boeing Company’s turnover was 7% in 1998, and it came down by 5% in 1999 due to the implementation of PCMM (Curtis, Hefley, & Miller, 2003).The process they used to implement People CMM:Since 1991, Boeing Company was using the SW-CMM framework for the improvement of software processes and more than eleven thousand people were trained with SW-CMM.

Boeing company always attempt to increase its activities, and the business goal of Boeing Company is to improve the quality and reduce cost and for this purpose Boeing conducted first joint evaluation for PCMM in 1996. Company started the usage of PCMM in 1997 as a framework for the improvement of practices related to workforce, after twelve joint assessments PCMM level 2 was achieved by four organizations (Curtis, Hefley, & Miller, 2003). What was the Outcome of implementing People CMM?Boeing improved its software processes, retained skill workers, attracted new trained workers and attained its business goals.

The level of extremely satisfied employees got increase. The industry benchmark for employees’ turnover was 16% in 1998, and Boeing’s turnover was 10 to 12 percent. Boeing increased it employees’ satisfaction up to 15%; Boeing reduced its defects related post release, variation in schedules reduced by 38% and efforts variations that occur in labor work got reduce by 35% (Curtis, Hefley, & Miller, 2003). Lesson Learned from Implementing People CMM:After having analysis of PCMM, it has been clear that this model should be used as an improvement strategy for all organizational activities.

According to human resource department PCMM should not be used only for HRM, rather the utilization of this program should be for the improvement of operational management’s capabilities (Curtis, Hefley, & Miller, 2003). Meaningful early meetings should be fixed with sponsors.The Cost to implement People CMM: The implementation cost of People CMM is not constant and varies with levels Boeing Corporation reduced its cost by 8% at first to second level, 35% at second to third and 75% at third to fourth level as shown in the image below (Curtis, 2001): (Curtis, 2001)The final evaluation:From many reviews, it has been proven that PCMM is a method that can be applied in any organization for the improvement of workforce.

Even this model is fruitful for all organizational activities, and Boeing Company enhanced its sales, therefore, revenue; Boeing also augmented its employees’ satisfaction, quality of the workforce, and managed performance. References:Boeing. (2013). Boeing Reports Record 2013 Revenue, EPS and Backlog and Provides 2014 Guidance. Retrieved February 9, 2014, from http://www.boeing.com/news/releases/2014/q1/140129_nr.pdf Curtis, B. (2001). Describing the Capability Maturity Model. Retrieved February 9, 2014, from ftp://ftp.im.must.edu.tw/download/yfsu/exam/CMM.

pdf Curtis, B., Hefley, B., & Miller, S (2003), Experiences Applying the People Capability Maturity Model. Retrieved February 9, 2014, from http://www.crosstalkonline.org/storage/issue-archives/2003/200304/200304-Curtis.pdf