Using a waterfall approach for supply chain projects

- Going over a waterfall is a one-way journey, you know exactly where you're headed. And once you start, there's no going backward. We often take that approach when we're managing supply chain projects, so let's look at an example of how a waterfall approach would be useful for onboarding a new supplier of glass bottles for Two Trees Olive Oil. Waterfall project management follows a linear, sequential approach. We describe the way things work right now as the current state, and the way we want things to be when we're done as the future state. In order to get a clear picture of the future state, we need to define requirements for the project. We do this by interviewing stakeholders, benchmarking with other companies, and doing business analysis. For our Two Trees Olive Oil example, that means we need to talk with the supplier as well as with our purchasing, logistics, and manufacturing teams. All of them will have requirements that we need to address. Once we have a clear set of requirements, we define the steps that will get us there by creating a work breakdown structure. The WBS includes deliverables or milestones and the tasks that we need to complete for each one. For our new supplier, our deliverables will include adding the new supplier to our purchasing system, setting up an order policy in our manufacturing planning system, and implementing a logistics plan for transporting the bottles. Each of those deliverables will get broken down into several smaller tasks. Once we have the work breakdown structure built, we can use it to generate other useful project management tools. For example, we can use the WBS to create a network diagram, which shows us how long it will take to complete the project and which tasks are on the critical path, meaning that they're directly affecting the project's completion date. We can also use the WBS to create a Gantt chart. A Gantt chart is basically a calendar that's laid out horizontally. Gantt charts make it easy to see which activities are happening at the same time, and how the project's schedule could be affected by holidays. Finally, we can use the WBS to create a RACI matrix. A RACI matrix is a chart that shows what each person's role is for every task in the project. If someone or a particular team has to help complete a task, then they're responsible for it, and they get an R. There could be many people responsible for any task, but each task should have one and only one person accountable for its completion. So we put an A in that person's column. In some cases, we may need to get input from someone when completing a task, they get a C for consult, and in other cases, we may simply need to inform people about a task that's being completed. For that they get an I. You can see that this RACI matrix makes it easy to see that the purchasing team is accountable for adding the new supplier to their system, but the manufacturing and logistics teams are responsible for providing some of the information that's needed. The supplier may need to be consulted, and the finance team needs to be informed. You can build any of these tools with a Word processor, a graphics program, or a spreadsheet. But using project management software like Microsoft Project can make it a lot easier. For many supply chain projects, we can define exactly what the end result should look like, and how to get there. For these projects, the waterfall approach is a great way to get everyone on the same page in terms of what needs to be done, when it needs to happen, and who needs to be involved in order for the project and the team to be successful.