Managing Supply Chains

by: Hilary Bush

The latest version of the Software Engineering Institute’s Capability Maturity Model, affectionately known as the Capability Maturity Model Integrated for Systems Engineering/Software Engineering/Integrated Product and Process Development/Acquisition (CMMI/SE/SW/IPPD/A), comes in an attractive 730 page manual. One could be forgiven for ignoring large chunks of this document, especially if they seem not to have immediate relevance.

Unfortunately, ignoring the 'Acquisition' section may lead to missing a trick, since it is the glue which holds the entire concept together.

The CMMI ^sm regards Software Acquisition as a project in its own right, but it goes further than that as the three Process Areas (PAs) that deal with Acquisition, actually apply to the management of the "Acquisition of products and services from sources external to the project". This is not just outsourcing.

Just as Acquisition is a project with its own lifecycle, so any project is also an exercise in Acquisition. No project works in isolation. Every stage of software development produces output or relies on input, or both.

The ethos of the CMMI ^sm is commitment, ie negotiation based upon full information, followed by agreement between all affected stakeholders. Indeed the importance of this issue is enshrined in Generic Process 2.7 'Identify and Involve Relevant Stakeholders', and thus applies to every Process Area.

The three PAs that form the Acquisition section of the CMMI ^sm are:

• Supplier Selection and Monitoring (or Supplier Agreement Management) - Maturity Level 2 (ML 2)
• Integrated Supplier Management - ML 3
• Quantitative Supplier Management - ML4

These PAs define a structure for managing and controlling the relationships inherent in a chain of supply. In particular they refer to the relationships between Users, Customers, Suppliers and the Project itself. They provide a clear framework of best practice for the management of these complex relationships.

The CMMI ^sm is clear that acquisition applies both to products and services, and to supply from sources both internal and external. Hence, we should be applying these 'best practice rules' to the management of all the relationships critical to the success of a project.
Put simply, the rules of these PAs are:

• Establish and maintain fully negotiated agreements
• Use the agreement as the basis for monitoring and evaluating progress
• Use quantitative methods and techniques for managing the relationship
• Establish and maintain a cooperative and productive relationship between customer, project and supplier.

If all stakeholders applied the rules of the Acquisition PAs to all external interactions, just imagine how smoothly communications would run! Misunderstandings, blame, recriminations and buck-passing could become things of the past.