WBS Compliance Challenges for Agile ERP Projects
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The document discusses the challenges and methodologies of managing ERP projects using Agile practices and emphasizes the importance of applying a Work Breakdown Structure (WBS) to define and manage product deliverables effectively. It categorizes ERP projects into three types based on complexity and investment, and argues for a shift towards using a feature breakdown structure to address the intricacies of ERP implementations. Furthermore, it critiques traditional waterfall methods for being insufficient in the face of complex and evolving project requirements.
WBS Compliance Challenges for Agile ERP Projects
- 1. PS 20 ‒ WBS Compliance Challenges for Agile ERP Projects Robin Pulverenti Glen B. Alleman ClearPlan Consulting LLC 29th Annual International Integrated Program Management Workshop 1
- 2. Agile and ERP† 29th Annual International Integrated Program Management Workshop 2 † “Agile Project Management Methods for ERP: How to Apply Agile Processes to Complex COTS Projects and Live to Tell about It,” Extreme Programming and Agile Methods: XP/Agile Universe, 2002, pp. 70-88, Springer Verlag, LNCS 2418 Agility implies a systematic vision of the outcome ‒ an intelligent action or ingenium that makes it possible to connect separate entities and their outcomes in a rapid and suitable manner ‒ Vico, Giambattisa, (1668–1744) “Method of the Studies of Our Times,” Naples, Italy, 1708.
- 3. Successful ERP projects produce Outcomes not Output • The PBS is a hierarchical structure where the main Outcome of the project is placed at the top level. • The next level down shows the components that make up the higher level. • This process continues to the level of individual products. • Each product will have defined acceptance criteria and quality control methods. • A WBS takes a similar approach but shows the work required to create the products. • The lowest level of a WBS shows the activities that would be used to create a network diagram for time scheduling. 29th Annual International Integrated Program Management Workshop 3 For an ERP Project The WBS Doesn't Breakdown Work, It Breaks Down Product Deliverables
- 4. Three Basic ERP Projects Comprehensive • Multi–national company • Multiple sites • Full functionality of ERP, the 12 main modules of SAP R/3 for example • An independently evolved business process • Scope and level of the business process reengineering is high • Long deployment process based on module–by– module or full system implementation. • $10M expected investment. Middle of the Road • Multiple sites • Implementation of only core ERP modules, financials, Asset Management, and Project systems in R/3 • BPR level is significant, but not as extensive as the comprehensive process • $3M expected investment. 29th Annual International Integrated Program Management Workshop 4 Vanilla • One site • Small number of users (< 100) • Core functionality only • Alignment of the company processes with the ERP process. • $1M–$2M expected investment.
- 5. A Sample ERP System 29th Annual International Integrated Program Management Workshop 5 The moving parts of Comprehensive ERP system for a large manufacturing firm Order Processing
- 6. The Order Processing Elements of the Larger ERP System 29th Annual International Integrated Program Management Workshop 6
- 7. ERP resembles New Business Venture rather than IT Development • The risk profile if fraught with technological, organizational, and business complexities • Managing ERP should follow a Venture Capitalist playbook … • Investments are staged in an IMP and Product Roadmap • Capital is conserved ‒ Build to TPMs as planned • Cash flows assured before more investment task place ‒ Use Release and Sprint planning to Assure work generates value to customer as planned • All participants on the venture share the risk ‒ customer is an engaged Product Owner • Team composition is a critical success factor ‒ Scrum Teams are dedicated and self-organizing (no specialist) 29th Annual International Integrated Program Management Workshop 7
- 8. ERP Projects are Business Transformation Initiatives • Process Reengineering is about replacing historically evolved processes with more effective and efficient processes • Package Approaches have the best advantage, including the imposition of discipline on processes and software changes • Modularizing the fundamental business processes has a significant beneficial impact on the architecure of the organization 29th Annual International Integrated Program Management Workshop 8
- 9. Breakdown Structures† • WBS (Work Breakdown Structure) • OBS (Organizational Breakdown Structure) • CBS (Cost Breakdown Structure) • RBS (Resource Breakdown Structures) • PBS (Product Breakdown Structure) • FBS (Feature Breakdown Structure) • BoM (Bill of Materials) • RBS (Risk Breakdown Structure) • CBS (Contract Breakdown Structure) 29th Annual International Integrated Program Management Workshop 9 † “Breakdown Structures Revisited,” Pat Weaver, Mosaic
- 10. Where in the WBS Do We Capture All These Outcomes? • If the WBS is a product-oriented family tree composed of hardware, software, services, data, and facilities? 29th Annual International Integrated Program Management Workshop 10 ERP Implementation Project Preparation Project Scope Project Team Blue Print Stakeholders System Architecture Technical Infrastructure Development Environment QA Environment Training Environment Production Environment Business Blueprint Configuration and development Configurator solution Code for Identified gaps Configuration and Development • The elements of the WBS aren’t traditional components of a machine or a product. • Rather they are standard activities to produce an increasing understanding of what capabilities the system must provide to meet the business goals “A Work Breakdown Structure for Implementing and Costing an ERP Projects, Communications of the IBIMA, Volume 6
- 11. We’re Paying for Features Not Paying for Work ‒ Feature Breakdown Structure 29th Annual International Integrated Program Management Workshop 11 Be the eBanking Provider of Choice for small business customers Increase retention on eBanking Website Add a Customer Center for Self Service for Common Needs As a Customer access Historical Statement As a Customer Stop Payment on Check As a Customer Find a Branch Location As a Customer find a branch that offers services in foreign languages As a Customer find a branch that is close to a specific address As a Customer find a branch that offers services for small business customers Goal Epic Capabilities Feature Feature Story Story
- 12. How Can the WBS and Agile be Made Into a Match Made in Heaven? 29th Annual International Integrated Program Management Workshop 12 +
- 13. MIL-STD-881-C says … • The primary challenge is to develop a WBS that defines the logical relationship between all program elements without constraining work necessary to achieve program objectives and meets all program reporting requirements. • A WBS should be sufficient to provide necessary program insights for effective status reporting and risk mitigation, facilitating the contractor’s ability to effectively execute the program. 29th Annual International Integrated Program Management Workshop 13
- 14. MIL-STD-881 App K 29th Annual International Integrated Program Management Workshop 14 This is the section of the WBS where any “gaps” in the COTS would be addressed through CSCI’s (Computer Software Configuration Items) .. presumably 80% of the effort on an ERP/MAIS implementation. Few ERP’s will exist in a vacuum. They will either interface with other internal databases/systems (external to the ERP) or to external entities (external to the Agency/Company).
- 15. MIL-STD-881 App K 3.2.3) 29th Annual International Integrated Program Management Workshop 15 Given this part of the instruction, doesn’t it make more sense to create a Capability/Feature Breakdown Structure which included the Detailed Requirements & Design, the Configuration, Code Development, Business Process Re-engineering, and Interfaces into one high-level WBS element? This part of the instruction is especially confusing since it references Radar system development, yet it is in the AIS appendix.
- 16. Agile Product Breakdown Structure Mapping to EVM Control Accounts (WBS) 29th Annual International Integrated Program Management Workshop 16 2017 NDIA IPMD – An Industry Practice Guide for Agile on Earned Value Management Programs
- 17. The WBS … • A product-oriented family tree composed of hardware, software, services, data, and facilities. The family tree results from systems engineering efforts during the acquisition of a defense materiel item. • Displays and defines the product, or products, to be developed and/or produced. It relates the elements of work to be accomplished to each other and to the end product. In other words, the WBS is an organized method to breakdown a product into sub-products at lower levels of detail. • Can be expressed to any level of detail. 29th Annual International Integrated Program Management Workshop 17
- 18. For ERP Projects, Waterfall is Based on Flawed Assumptions • It is not humanly possible to execute a planning process so that implementation is merely a matter of performing the defined tasks. • Plans for complex systems rarely turn out to be good enough . • Unanticipated problems are the norm rather than the exception. • It is not possible to protect against late changes. • All businesses face late changing competitive environments. • Windows of business opportunity open and close at the whim of the markets not the project manager. • Business usually commit to a plan. By making this commitment, they lose much of their ability to take advantage of fortuitous developments in the business environment. • In a financial setting this is the option value of the decision. • Deferring decisions to take advantage of new information and new opportunities is rarely taken into account on IT projects. It is vital to the success of an ERP project. 29th Annual International Integrated Program Management Workshop 18
- 19. Where Do We Go From Here? • What are the products on an Agile Program? • How are these products related to each other? • How can Agile be integrated into a 5000.02 and FAR program? • Introduce the notion of a Feature Breakdown Structure in an Agile paradigm • Example for an ERP system • WBS • Agile Product Roadmap, Release Plan, and Product Feature Breakdown Structure (FBS) • Connect these is some simple matrix structure 29th Annual International Integrated Program Management Workshop 19
- 20. Questions? 2029th Annual International Integrated Program Management Workshop