Transitioning to an ERP landscape is necessary for the pharmaceutical industry. It requires adopting an Agile Project Management framework. But conventional manufacturing has always relied on the traditional Waterfall Project Management.
So how do we effectively manage both frameworks for the maximum potential connecting the ERP landscape to IOT and industrial manufacturing equipment?
To answer this question, we will need to compare both frameworks and understand the context of each and their applications.
What is Waterfall Project Management?
Waterfall Project Management is used when the scope is understood, such as through upfront customer requirements usually captured in a User Requirements Specification (URS). From there a Functional Specifications (FS) document explains how functionality aligns with the URS. Additional Design Specifications explaining the infrastructure and software design details are aligned to the FS.
What is Agile Project Management?
The Agile Project Management framework works when the customer knows the process and has a general idea of what the software should do. It’s through input from the product owner over the course of Sprints (iterations), that they get the product they envisioned or pivots. The requirements in this case are established through features and user stories.
The iterations in a scrum are predictable in a timeboxed approach of between 2 to 4 weeks. However, the outcome is unknown until the product owner provides feedback in a Sprint Retrospective after they see a demo of the minimum viable product or MVP.
Waterfall vs Agile
Let’s compare the two frameworks to see the strengths and weaknesses of each.
Finished Product
Waterfall does not produce a finished product until the end of the project. In comparison, Agile provides a minimum viable product per sprint that the customer can actually see and use.
Feedback
Agile provides a lot of feedback from the product owner over sprints, but Waterfall is more of a hands-off from the customer. They are just informed on the status in sponsor meetings of the project, not the product which occurs upon the release phase.
Constraint Management
Project management frameworks consist of triple constraint which is time, scope and cost.
The waterfall method has a fixed cost and a fixed time and a fixed scope but if push comes to shove, the time constraint usually becomes flexible based on experience.
On the other hand, the agile method has a fixed cost and a fixed time but the scope is flexible. The customer’s feedback provides them with a select number of sprints, which my definition are time-boxed to 2 to 4 weeks. This is usually enough time for them to achieve the envisioned scope with or without pivots along the way.
Waterfall uses planning on sequences or dependencies and relies on the dependencies and the critical path. Agile does not perform tasks in order but what’s valued by the customer.
Agile keeps working on the most valued user stories and doesn’t consider dependencies. Usually, architecture comes first, but Agile has a problem with dependencies. So Agile tasks would have the data team perform first then the software team next. Agile gets rid of dependencies between teams by using multifunctional teams. In comparison, Waterfall has different teams at the planned time.
Project Capacity
Large projects are handled by Waterfall but need control. Agile’s SAFE framework would typically be used for large projects, but organizational structures for companies are not suited for Agile. It would take away the creativity of teams, which is the essence and necessary for Agile.
Large projects are best suited for breaking down into smaller teams. Agile is usually fit into other projects. Agile has released trains by order of value that’s predictable (time-boxed) but more incremented series of iterations. Innovation on small pieces of product. Release trains are flexible to put whatever you want on the train.
Manufacturing
Waterfall typically uses Gantt Charts and is used in manufacturing. Agile teams typically do not have the same information recorded in Gantts. It’s a 2-week Gantt that would be a fitfor Agile. Agile uses a burndown chart until nothing is left in the backlog. Kanban Agile allows for deliberating the flow of work at a sustainable pace. The Scrum Taskboard puts the highest priority on the board from top to bottom and shows progress visually for a sprint. The release burndown identifies how many sprints of work can you offer with the existing developer team and the rate of burn.
The product backlog shows the most priority features. Burndown Charts (Sprint Board) will show if they are in the budget by looking at the Users’ Stories that are broken down by tasks during a sprint review.
Agile framework is best for products not projects. Digital material is best suited for the Agile framework. Waterfall is typically used in manufacturing processes and to improve a product or process would be used through quality improvement projects.
Agile is a form of science that has more development and pilots for a product deliverable. The framework has little scope but is mainly unknown.
If you want to have all the deliverables and know exactly what you want, then Waterfall is typically used. Agile deals with chaos very smoothly and for Agile it’s the top 3 features then up to 6 if there’s time (optional).
The cone of uncertainty leads to more clarity as time passes. An effort is often wasted because of the unknown. Agile provides deliverables as you go along and always relies on imperfect info. Thus with Agile, you need to trust in the Gannt as it balances the cost of planning and the certainty it will add.
Documentation
Documentation is identified as laborious using the Waterfall framework in comparison to the Agile framework. The Agile framework is low in terms of documentation in the context that the Scrum Agile method provides artifacts. Artifacts can be categorized by high-value and low-value documentation. High-value documentation would be part of the product ex. Manual.
The Agile framework reduces paperwork to meet sprints. The Agile manifesto believes in communication and not having a list of requirements. In Agile, Epics are large groups of user stories which avoids details until you get there.
What framework is right for you?
Often companies wonder what to choose between Agile and Waterfall, and if they both can work for some occasions. Waterfall is best used if specifications are known and is a deterministic approach. Examples of waterfall approaches would be cars, houses and boat building projects.
In contrast, Agile has uncertainty but with enough iterations that the product prioritizes the value of these features within the iterations. It will provide a product that aligns with the customer vision and an example would be R&D projects.
Often companies wonder if there is an opportunity to mix both and if so, which framework would be used in Agile? It’s not recommended to mix both, but if there is one that has been experienced is Scrum.
It is difficult to see both projects together in terms of reporting but in MS Project, the Ganntt Chart can put placeholders as time-boxed sprints. For example, 2 to 4 weeks sprint numbered iterations within the WBS when the software development phase or the purpose of why Agile was chosen.
One thing to consider would be to create the Agile project as a subproject and then insert it into the main Waterfall framework Gantt chart. Waterfall requires more trust in the end result when there is an Agile subproject that the result will be closer to the customer’s vision as the product is iterated to the release.
Waterfall’s framework is focused on control of schedule, but Agile’s framework is focused on the control of the product.
Conclusion
While there is no perfect answer, if there is a particular Agile framework the industry is headed towards, its the SAFE Agile framework. However, it still needs some work and it’s not done well yet.
Author
Established in 2018 by Vishal Magoon, PEng, PMP, Toronto-based VSAM Knowledge Solutions has over 20 years of experience providing technology solutions in the pharmaceutical industry at companies and locations throughout North America.
Dynamic professional with a 22 years career reflecting an extensive background in ITS Service Management, Program Management, Project Management, Resource Management, Compliance, Regulatory Audit, Validation, Calibration and Business Development including 20 years in the Pharmaceutical industry travelling throughout North America. Experienced in managing people and processes covering areas such as Equipment/Software Project Management using SDLC methodology, Qualification and Validation procedures, Process and SOP improvement and Audit Compliance, and possess a solid track record for effective Vendor Relation Management and Contract Negotiations resulting in significant cost savings.
Vishal Magoon, PEng, PMP , with a Professional Engineering Designation and Project Management Professional (PMP)®, has continued to progress for more than two decades. He is experienced with waterfall, and hybrid methodologies. With extensive North American experience, you can trust Vishal and VSAM Knowledge Solutions to provide computerized system consulting and computerized deployment solution services, that optimize your business environment, processes, and people.
References
- Croft , Chris and Rose ,Doug , Linkedin course: “Comparing Agile versus Waterfall Project Management”, Sep 2019.
- O’Connell, Kelley, Linkedin course: “Transitioning from Waterfall to Agile Project Management”, Oct 2019
