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Fixed costs projects

Practical experience

Agenda

Pre-sale Planning Implementation Finishing SCRUM

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On which phase a project manager is starting a fixed-cost project?

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Pre sale

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1. Pre-sale Needs Estimation Tips

Understand needs

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Learn Ask Draw Concept

Learning of customer needs

The best way – face to face meeting Or video conference

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Ask as much as possible!

Ask as much as possible Show examples

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Make and present mock-up’s

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Project concept

Looking for existed solutions (Goal: cost reducing). Prepare a few options. Prototype

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Estimation

Do not forget Gaps in specification Risks

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Estimation: Do not forget

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Warranty effort

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Buffer for small changes

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Effort for meeting and ongoing issues

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Effort for documentation

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Pre sale effort

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Example

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Gaps in the specification

Assumptions “Will be implemented like …” Implement as T&M part. Notice:

Bug fixing is also part of T&M! Additional management for managing T&M part

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How to handle gaps in the specification ?

Example of assumptions: We assume that workflow module should contain about 10

screens with complexity like “email configuration screen” Integration with python will implemented using simple

interface: each python script should be presented like a function with hardcoded input and output parameters. Through admin part it is only possible change body of the script but not the interface. In the price is included integration of 2 scripts

Will be implemented 2 reports with complexity like “Insured persons report”

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Risks

List of risks: Description Probability Influence Mitigation plan Trigger Migration plan

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Risk handling

Share with the customer Include in price

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How to include risk in the price

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Calculated risk cost (Rc) Probability (P. From 0 to 1) Risk reserve (Rr) Rr=Rc*P

Tips& tricks

Team/duration People involving Fixed cost magic Commercial correction

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Project duration/team

Split project on sub projects (as well sub-contracts) Build small teams

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People involving

Involve on pre-sale stage people who will take a part in the project implementation

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Magic multiplier

Magic multiplied based on experience For example:

Effort=Estimated effort(dev)*2,2 0,3 – Estimation error 0,4 – Testing 0,3 – Management 0,2 – Communications etc.

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Commercial correction

Effort -> $ Stomach feeling Consulting with sales department Is it possible with final amount to finish the project?

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Project planning

2. Planning

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Communication plan

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Time buffer before milestones

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Reaction time of the customer

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Acceptance criteria

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Invoicing plan

Lineal distribution Payment after milestone delivery Payment after project delivery

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On implementation

3. Implementation Risk review “Small changes” Change requests Reporting

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Risks

Plan of risks analyzing Update involved people (customer, sales, supervisor etc)

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Small changes

You have a buffer for them Efforts of small changes must be controlled Customer always needs much more Use batching strategy

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Change requests

Definition of CR must be created and agreed Don’t show real spent effort for CR (common JIRA) Strategies:

Include Postpone

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Including strategy

The customer will be noticed concerning duration and budget changes before implementation

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Important notice

Effort spent for CR clarification will be included in final estimation

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Postpone

CR’s cold be collected and realized as a minor release It is bad idea to implement CR’s separately

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Important notice

Estimated scope of work must be described in CR

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Notice

Use the similar approaches as on pre-sale stage: Assumptions T&M Like example

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Reporting

Should be introduced impact report You will be sure that the customer understands real

deadline of the project

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Project finishing

4. Finishing Acceptance Maintenance Experience sharing

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Acceptance

Should be defined acceptance criteria The customer should have restricted time for acceptance Should be defined responsible persons from customer

side

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Maintenance

Right time for a maintenance proposal Do you want additional benefit? Organize resources in the

most effective way! Propose a few options of reaction time and level of

responsibility Jira

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Save knowledge

The risks will be reviewed (what happened/what not) Update internal knowledge base Will be defined and shared the best practices What components of the project could be reused in

another projects

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Bonus

SCRUM+Fixed cost=own experience

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What works?

Sprint Daily scrum Sprint planning Sprint review Retrospective Product Owner Should be introduced proxy

PO ScrumMaster Product backlog

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What works?

Sprint backlog Burn down Planning Poker Story points Definition of Done Velocity

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More information here…

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We would be happy toanswer any of yourQuestions?