Programme management - programme governance and supply chain management

Programme management - programme governance and supply chain management

How can you manage resources, people and supply chain companies in a programme?

Programme governance deals with designing and implementing the functions, processes, procedures and responsibilities that define how the programme is to be set up, managed and controlled. The challenges may include:

  • Changes may be required to organisational structures, to reflect the change in focus, as the programme moves towards transition
  • The programme may require dedicated teams to carry out procurement and contract management activities relevant to the programme
  • Programmes tend to have a wide range of stakeholders, making effective communication difficult
  • The upheaval associated with change inhibits maintaining continuous services

  • A supply chain is a system of organisations, people, technologies, activities, information and resources involved in moving a product or service from supplier to customer. Many of the exchanges encountered in the supply chain are between different companies that seek to maximise their revenue within their sphere of interest, but have little knowledge or interest in the remaining players in the supply chain.

Example: supply chain for infrastructure delivery - Low-cost housing, Jozini, South Africa
Supply chain:

  • Labour – skilled foremen contracted from larger towns, unskilled local labour (beneficiaries from community)
  • Supporting services – water deliveries by truck, raw material deliveries, telecommunications
    Supply chain challenges:
  • Remote and isolated site – creating logistical challenges for materials and staff
  • Intermittent deliveries – any missing link, particularly water, halts the programme
  • Theft of materials (e.g. cement) – by unsupervised contractors. Lack of commitment by one member of the supply chain undermines the project

Understand project and supply chain interactions to maximise benefits to all parties

Programme governance should consider the following:

  • Set up the organisational structure (e.g. appoint programme director, manager etc); procure or lease appropriate facilities and tools to manage the programme (e.g. intranet, programme office); establish procedures for managing risks, resolving issues and reporting progress
  • Consider HR management to deploy and retain staff; allocate resources to programme-level procurement and contract management; devise a communications plan, linking all stakeholders; start procedures and responsibilities for project-level reporting and programme-level monitoring and control

Supply Chain Management must aim to:

  • Incentivise performance by balancing competition and collaboration; consider risk allocation as part of the procurement route (in integrated teams, risks should be allocated to individual risk owners who understand their responsibility); ensure competencies and reliability throughout the supply chain; integrate processes to share information and arrange payment terms and methodologies for exchanging funds
  • Where distribution networks are involved, also consider distribution network configuration (number and location of suppliers, production facilities, storage facilities, and customers) and distribution strategy; trade-offs in logistical activities and inventory management
Example: municipalities procuring infrastructure projects through tender adjudication and awards committees may consider the following:
  • Appoint service providers using contracts in place with other organs of state
  • Develop service provider rosters
  • Make one person clearly responsible for each project, ensuring that there are no delays
  • Develop standard specifications for particular groups of projects
  • Group similar projects into one tender
  • Supply Chain Committees should have qualified staff
  • In the case of bulk services to be funded by developers, municipalities should not insist on the bulk contributions being paid into their coffers, but commission developers to develop bulk infrastructure themselves

Further reading:

The Office of Government Commerce (OGC) - Introduction to programmes
APM, Introduction to Programme Management