| Alternative name(s) | Description | ‍‍‍‍ | Agile Manifesto Principles | Other Agile Principles | Discussion | Links from this KA to other KAs | References | External links | Read in another language

Alternative name(s)

Supply chain management

Description

Project procurement management is about purchase outsourcing such as, goods, services, manpower and more. This outsourcing should be reliable in order to come with customers requirements and should be within the organisation priorities such as time and budget. Project procurement management is being used in order to keep transparency between the organisation and stakeholders. It could also help to expose the fraud within and out side the organisations. Many IT or other business PM project managers deal with procurement as buy in process from outsourcing and procurement management has been linked with supply chain management (Walker and Rowlinson, 2007). Cox (1996)
cited that procurement management can help to identify effective boundaries in order to meet all the constrains of the project.

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Agile Manifesto Principles




  1. Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.
    This principle ensures customers are satisfied through early and continuous delivery in a project. This principle supports procurement management by ensuring that goods, services and manpower for example are reliable and deliver what they are supposed to in regards to customer requirements early and continuously throughout the project. The principle is used to guide the practice in procurement management by ensuring that vendors provide valuable software throughout but by achieving what is required of them and not going over budget or time for example. By adapting an agile principle to procurement management it will harness a priority to deliver only valuable software or in other words an acceptable quality/ standard of the deliverable.
  2. Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage.
    Allowing changes in development can be risky but if done correctly in an agile process it can be executed to provide a competitive advantage. In terms of procurement management this allows changes to what is to be procured for example, late in development a different type of wall paint is needed by the customer on a building and procurement will allow these changes to be made if it's what is required. By allowing these changes to happen it can not only give a competitive advantage but also satisfy the customer by adapting to changes in their requirements. The principle guides the practice because changes are inevitable but allowing it to happen even late in development and ensuring it can be delivered in an agile way can be done so this does guide the principle of procurement management.
  3. Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale.
    This refers to delivering of software such as goods, services, manpower at a preference towards a short timescale. By doing this it can help speed up the project or keep time driven projects on track. In terms of procurement this can be seen in fixed- time contracts where the importance lies in when the project is to be completed by, therefore the preference is that vendors are paid for their time taken on the project and given tighter deadlines. This principle guides the practice by ensuring that the vendors are suitable to working in an agile environment and can provide these products or services from a couple of weeks to a couple of months when procured.
  4. Business people and developers must work together daily throughout the project.This principle is all about cross functional collaboration. In order to satisfy the requirement of the customer there is the need for collaboration in the form of continuous communication, iteration, respect, active involvement and commitment between the developers and business people. This agile principle is one of the strongest support for the project procurement management knowledge area in all practises of project management (APM, PMI, PRINCE 2). Project procurement management is all about obtaining goods or services through the use of suppliers, contractors and other stakeholders. How well the project team collaborate with other stakeholders determines how successful the project would be in terms of quality and timeliness of delivery.
  5. Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.The 5th agile principle could be interpreted to mean trust and support. A project environment of support and trust will successfully deliver projects. Projects is all about satisfying the requirements of customers. Getting some or all of the work done by a party external to the project team requires trust and the right support that they will deliver on its scope. In this regards, this agile principle has a direct relationship with the procurement management knowledge area. Procurement management is all about establishing and maintaining relationship between the project team (buyer) and suppliers (seller). Increasingly projects are being delivered as part of a commercial arrangement between the project team and the supplier. A crucial element of this relationship is trust and open relationship as a collaborative process in which the project team and suppliers work together enhances result for both parties – satisfaction of customer’s requirement in the case of the project team and profit and satisfaction of the project team requirement in the case of the supplier.
  6. The most efficient and effective method of conveying information to and within a development team is face-to-face conversation.According to this principle, the most efficient and effective way of communication is face to face not only for external communication but also for communication within the project team. This principle is right in the realms of the knowledge area in question and also support the 5th agile principle of trust and support between the project team and suppliers. In project procurement management, the relationship between the project team and supplier is key to satisfying the customer’s requirement. This relationship can only develop into a level of trust if there is active communication between the project team and suppliers. As a result of technology advancement, there are now several way of communicating giving people several choices in terms of the medium through which they communicate with each other including email, telephone, and fax. However, these form of communication are prone to misinterpretations due to the fact that there is no feedback element in those new form of communications. With face to face communication, expression of ideas and feeling is better; it is suitable for respect; suitable for discussion as there is immediate feedback from the listener, improves our understanding, learning, coordination and collaboration resulting in clear goals and objectives which would be beneficial to the project team, suppliers and customers and leads to the successfully delivery of projects.
  7. Working software is the primary measure of progress. As with any product or service, progress can primarily be measure by checking if it works or not. If it does not work it means that no progress is made. Although this principle does not support the knowledge area directly it can be used as a guide. Procurement management is the process that guides how accusation of goods and services are managed from start to the end of a contract. It also ensures that services provide value for money. If services are not fit for purpose contracts can be terminated and according to this principle using working software to measure success can align with ending a contract that is not working because it means that working is not progressing.
  8. Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace when working together. This agile principle support procurement process and management because procedures and practices that the sponsor, developers and users need to maintain the same pace and operate on the same level in order to develop sustainably can be guided by a contract. Each member of the team have a contract with the organisation on what is expected of them. ‍Procurement management is guided by the contact an‍d highlights what needs to be put in place. If external support is needed by the team it can be procured. Likewise any process that is not working or causing unnecessary delays to their can be outsourced or covered with extra resources. Sustainable development is the ability to sustain continuous development and procurement management can be used to decide which part of the project or service should be outsourced by an organization in order to achieve this.
  9. Continuous attention to technical excellence and good design enhances agilityThis principle and procurement knowledge area can be aligned because procurement management can be used to improve continuous attention to technical excellence and good design which according to this principle enhances agility. Agility is being able to move quickly and easily. Procurement is the process of managing how goods and services are obtained. This principle can be applied in the process of procuring resources and services for the team by forming the basis of the requirement for resources, focus will be on procuring resources that will produce technical excellence and good design.‍
  10. Simplicity — the art of maximizing the amount of work not done — is essential. This principle relates to fact that obtaining or buying goods and services should be streamlined so that only what is required is procured. The process includes preparation and processing of a demand as well as the end receipt and approval of payment. Simplicity in procurement can be speedy. Teams need to make the stakeholders have an understanding that working with them in a smart way will not slow things down but give speed and save quality time. The process of purchasing should not be made cumbersome for stakeholders. There is a need to have smart solutions to manage all merchants, payment handling, it is also good to apply good governance. Having a simple procurement process do those things that organisations or people in business are supposed to do but are unable to do them. This process frees up resources and adds great value rather than overwhelming it. This is also about doing the correct sum of things at any time and not adding anymore. Work should be broken down small enough to get the job done and no more. Building what is known that is needed now and not what is thought that will be needed someday. Resources should be used for the purpose it is needed for at the moment.
  11. The best architectures, requirements, and designs emerge from self-organizing teams.This is a principle that various organisation benefits from. Organisations that are made up of teams draw staff together and harness their skills, capabilities and experience of staff across the organisation to work in project teams to deliver essential goals and improve results. This way of working requires every member of the team to be bendable and have a supportive approach; ensuring resources are allocated where they are needed most. This means working as ‘one team’ and drawing together as a single establishment, concentrating around common purpose. 
    This is also an addition of self-organizing teams. In this principle people don’t complain about of not being motivated. The team leader and the team members all give their full attention to the goals of the team and do align this goals together with what the needs of the project is where-ever conceivable.
    This process helps teams as the team leader stand as a guard to protect the team from distractions that might come from the outside. Like in Scrum, a team dedicates itself to finishing a set of features they are working on. Anything that is a distraction can be categorized as risk, by standing as a guard for the whole team the leader provides an environment and the support that is needed for the whole teams’ success.
    Team members are highly required to trust each other and be calm in conflicts. It is known that trust is never programmed but it is built over a period of time. Teams members should do what they say, admit when they are wrong and follow up on open issues.
  12. At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly. This relates to the fact that good and effective teams don’t just appear. A lot of work will have to be put in place. Having a conscious effort is highly needed to support groups of individuals when they are working together in a team.
    Like in Scrum it does use retrospective for this purpose. Teams always need support for this very activity to be more effective. There are challenges individuals face regarding the issue of engagement / true self-reflection. In the Agile voyage, you find that each of these principles is interconnected. The place of reflection is the best position a team could find themselves because such position reveals the ingredients that are best needed for improvement. The team leader is in the best place to elicit the self-reflection. When areas of improvement has been spotted then the team will really go into work and improve, but if they just waste time doing reflections and don’t do the improving work the retrospection then becomes a wasted venture.
    Teams always must be reminded about areas for improvement that have been corporately settled.




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Other Agile Principles


Failure: Failure is refer to not achieving desirable outcomes or could not be easy to accept as absence of success. Failure could have its own definition for different scenarios. Mankin et al (1996) reported the various factor could lead to the failure in project and how could this factor could be mitigate through out the project. Mankin et al (1996) described that lack of communication, non clear requirement and even fraction of time could affect the project badly. Though, as procurement process in the project could be the straight forward, lack of information for the particular supplement could lead to the delay. This uncertainty may push the project toward the failure.

Commitment: Commitment is all about the surety of work or activity even though it could not have physical existence, it might have significant impact on the success of the project. Commitment could be the individual or the group. The commitment should be within the agreements, while organisation buy goods or services from external source. Supplier should have their own commitment for the organisation. .

Communication:
The requirements engineering phase of software development projects is considered by the impact and significance of communication. It could help to keep activities on track through out the development process and could also make delivery stage easy. Because, organisations and their supplier have been in touched through out the process. In the project environment communication has significance impact on project success or failure. For example, in procurement management all the changes should be clear to both the parties. Uncertainty within the supplier or organisation should discuss as soon as possible. Lack of communication could bring the fraud, could also increase the budget and time delay in supplement process.


Agile practices
Pair programming: is about working in pair, where one person could be the driver and next person could be the navigator. In pair programming drive keep typing the code and the navigator keep eye on errors and suggest the correction if needed. It could be the good practise to develop the program.

Amplify learning: Amplify learning is the one of the lean development principles. It could be about continuous learning process in order to share knowledge and ideas. It could help understand business value and understand the organisation situation.

Simple design: Simple design name its self help to understand the whole picture. It could help to avoid complexity and improve quality of the work. Simple design could help to identify error easily and also could possible to avoid the errors.

Discussion

Software has been part of modern society and it always been attached with two word 'code and fix'. Old software had not been planned well though it were not complex. Demand of the market has increase the value and complexity of software. Traditional software development process had to been descriptive which could not be reliable for modern software. Traditional development process was plan driven and there it had less space for change. Awad (2005) reported that agile methodology has been increasing its popularity since last decade. Cox and Thompson (1997) reported use and importance of the procurement management within the construction industries. As known, no single project could meet their all the requirement from one supplier. Outsourcing could be the major element for the complex structures. For example, procurement management might help identify role and responsibility however; it could be depends on the size of the project. Agile methods can provide more manoeuvrability to the development process and it could help organisations to run complex project within predefine constraints. As known that complex project and many changes in requirement could increase the burden on organisations. Project procurement management helps to keep avoid the problems and can also provide aid to keep eye on satisfaction level of customers' need.

Links from this KA to other KAs

Collaboration management: is a method used to plan, control and monitor complex project. It enables project teams to share and communicate all the progress and difficulties in order to reduce the overall complexity of the project. Collaboration management could help to keep eye on progress and also can share the progress between the group in order to increase the overall productivity of project.

Contract management:
is the management of contracts made with customers, vendors, partners, or employees. It is the legal way to deal with all the possibilities and issues might occurred during the project. Contract management would carried out to maximise the potential savings and opportunities.Ensuring people with the right skills are in place to carry out contract management is essential to release more value from contracts.

Project communication management: is a skill that can never be perfect, can always be improved by experiences and practices, over the time.
Communication management can keep stakeholders engage and team members motivated. Communication should be done with both externally and internally. It helps to avoid misunderstanding between organisation and stakeholders.

Project stakeholder management: is the process to identify all the people or organisations impacted by the project: e.g., Customers, sponsors, suppliers (Internal & External). Project stakeholder management has particular approach to do it.
  • Identify stakeholders
  • Stakeholder analysis
  • Communication plan


References

Walker, D., & Rowlinson, S. (2007). Procurement systems: a cross-industry project management perspective. Routledge. Available at:
https://books.google.co.uk/books?hl=en&lr=&id=EK58AgAAQBAJ&oi=fnd&pg=PP1&dq=definition+of+procurement+management&ots


Ohashi, H. (2009). Effects of transparency in procurement practices on government expenditure: A case study of municipal public works. Review of Industrial Organization, 34(3), 267-285. [Online] Available at: http://link.springer.com/article/10.1007/s11151-009-9208-1#page-1

Rico, D., Sayani, H. & Sone, S. (2009) The business value of agile software methods. J. rose publishing USA. [online] Availble at:
https://books.google.co.uk/books?id=anLeaMMgmo0C&pg=PA43&dq=value+of+procurement+management+in+agile&hl=en&sa=


Awad, M. A. (2005). A comparison between agile and traditional software development methodologies. University of Western Australia. [Online] Available at:
https://xa.yimg.com/kq/groups/71601056/324265895/name/A_comparision_between_Agile_and_Traditional_SW_development_methodologies.pdf

Cox, A. (1996). Relational competence and strategic procurement management: towards an entrepreneurial and contractual theory of the firm.European Journal of Purchasing & Supply Management, 2(1), 57-70. [On line] Available at:
http://www.sciencedirect.com.ezproxy.herts.ac.uk/science/article/pii/0969701295000194

Mankin, H. J., Gebhardt, M. C., Jennings, L. C., Springfield, D. S., & Tomford, W. W. (1996). Long-term results of allograft replacement in the management of bone tumors. Clinical orthopaedics and related research, 324, 86-97.
[Online] Available at:
http://journals.lww.com/corr/Abstract/1996/03000/Long_Term_Results_of_Allograft_Replacement_in_the.11.aspx

Cox, A., & Thompson, I. (1997). ‘Fit for purpose’contractual relations: determining a theoretical framework for construction projects. European journal of purchasing & supply management, 3(3), 127-135.
[Online] Available at:
http://www.sciencedirect.com.ezproxy.herts.ac.uk/science/article/pii/S0969701297000051









External links


Procurement process: http://pm4id.org/9/6/
Project procurement management: http://www.softwareresearch.net/fileadmin/src/docs/teaching/SS06/PM/PMBOK12.pdf
Procurement management: http://preparepm.com/notes/procurement.html


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