Agile Series by Nishanth

introducing

Agile EVM

Some Agile Myths

• Agile development is “Extreme Programming (XP) + Scrum

• Agile projects can’t define scope up front

Why EVM?

• Integrates performance, cost, and schedule• Provides cost efficiency readings• Early warning of performance problems• Well known, PMI standard, used in Project

Management over 40 yrs

EVM – A Timeline

Courtesy – Tamara Sulaiman Runyon, Collabnet

Traditional EVM

Agile Earned Value Management (EVM)

• Agile EVM = Traditional EVM + Scrum• Adds value in

– Decision Making– Communication– Visibility

Why Agile EVM?

• Adds cost component to metrics• Balances needs of all stakeholders• Optimise value of releases• Better business decisions

Agile EVM Metrics

• Schedule Performance Index (SPI)• Cost Performance Index (CPI)• Velocity per Sprint• Earned Value vs. Planned Value

Agile EVM Metrics

Defining Initial Release Baseline• # of planned sprints• Sprint Lengths• Budget at Complete (BAC)• Planned Story Points• Start Date

Agile EVM Acronyms

• AC – Actual Cost• PV – Planned Value• EV – Earned Value• EAC – Estimate at Complete• CPI – Cost Performance Index• SPI – Schedule Performance Index

Agile EVM Basic Equations

• PV = Expected % complete1 * BAC• EV = Actual % complete2 * BAC• CPI = EV/AC• SPI = EV/PV

• 1 – SP completed/total SP planned• 2 – no. of sprints completed/total sprints planned

Appendix

• Courtesy– Webinar – Agile EVM – Information for Good

Decision Making, by Tamara Sulaiman Runyon, Collabnet

– White Paper – Earned Value for Agile Development, by John Rusk, Optimation Ltd

Thanks!

Exciting new transitions