Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide...

18
Agile EVM Agile EVM 22 nd Annual Systems & Software Technology Conference (SSTC) (SSTC) Salt Lake City, Utah April 2010 Mr. J. Matthew Park Northrop Grumman Corporation [email protected] © Copyright 2009 Northrop Grumman

Transcript of Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide...

Page 1: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Agile EVMAgile EVM

22nd Annual Systems & Software Technology Conference (SSTC)(SSTC)

Salt Lake City, UtahApril 2010

Mr. J. Matthew ParkNorthrop Grumman Corporation

[email protected]

© Copyright 2009 Northrop Grumman

Page 2: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Report Documentation Page Form ApprovedOMB No. 0704-0188

Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering andmaintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information,including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, ArlingtonVA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if itdoes not display a currently valid OMB control number.

1. REPORT DATE APR 2010 2. REPORT TYPE

3. DATES COVERED 00-00-2010 to 00-00-2010

4. TITLE AND SUBTITLE Agile EVM

5a. CONTRACT NUMBER

5b. GRANT NUMBER

5c. PROGRAM ELEMENT NUMBER

6. AUTHOR(S) 5d. PROJECT NUMBER

5e. TASK NUMBER

5f. WORK UNIT NUMBER

7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) Northrop Grumman,2980 Fairview Park Drive,Falls Church,VA,22042

8. PERFORMING ORGANIZATIONREPORT NUMBER

9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSOR/MONITOR’S ACRONYM(S)

11. SPONSOR/MONITOR’S REPORT NUMBER(S)

12. DISTRIBUTION/AVAILABILITY STATEMENT Approved for public release; distribution unlimited

13. SUPPLEMENTARY NOTES Presented at the 22nd Systems and Software Technology Conference (SSTC), 26-29 April 2010, Salt LakeCity, UT. Sponsored in part by the USAF. U.S. Government or Federal Rights License

14. ABSTRACT

15. SUBJECT TERMS

16. SECURITY CLASSIFICATION OF: 17. LIMITATION OF ABSTRACT Same as

Report (SAR)

18. NUMBEROF PAGES

17

19a. NAME OFRESPONSIBLE PERSON

a. REPORT unclassified

b. ABSTRACT unclassified

c. THIS PAGE unclassified

Standard Form 298 (Rev. 8-98) Prescribed by ANSI Std Z39-18

Page 3: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Audience Assumptions For This Presentation

• Software projects exist for which agile development process provide• Software projects exist for which agile development process provide a greater chance of success than a traditional waterfall life-cycle

• Agile is not an excuse for ignoring processes, management, or engineeringg g

• Agile produces useful programmatic metrics• Agile produces useful programmatic metrics

© Copyright 2009 Northrop Grumman2

Page 4: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Four Questions From Implementing Agile EVM

• “What is different about Agile EVM from EVM”• What is different about Agile EVM from EVM

• “Agile metrics and charts provide insight into progress, but how is the project proceeding according to the plan?”

• “How do I report SPI and CPI for an agile project?”

• “How do I get credit for work partially completed in a fixed timebox?”

© Copyright 2009 Northrop Grumman3

Page 5: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Agile Requirements

Traditional Systems Engineering Agile Systems EngineeringTraditional Systems Engineering Agile Systems Engineering

Many Layers of Functionally Decomposed Requirements Ending in Atomically

Described Functions

Many Layers of Functionally Decomposed Requirements Ending in Deliverable

Capabilities Useful to User

© Copyright 2009 Northrop Grumman4 Photo used with permission from Lori McKenzie

Page 6: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Key Differences – Part 1

Agile EVM

Focused on Delivering Capabilities• Manage based on delivery of

Focused on Completing Activities• Manage based on the completion of• Manage based on delivery of

capabilities scheduled into fixed time-boxes

• Identify tasks required to deliver each t

• Manage based on the completion of activities broken down into small duration tasks

• Manage risks while identifying all tasks t l t th tstory

• Manage risks while identifying all tasks necessary to complete capabilities

necessary to complete the system requirements

© Copyright 2009 Northrop Grumman5

Page 7: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Key Differences – Part 2

• Agile planning balances the effort and i i l i i h hinvestment in planning with the knowledge that the plan will be revise through the course of the project

W ll it d f 6 t 18 th l j t– Well suited for 6 to 18 month long projects or increments of larger programs

– Allows requirements to flex to meet business and mission needsbusiness and mission needs

– Typically does not perform complete planning, scheduling, and costing of a project to discrete work packages to the

l l f d l d lsame level of details as traditional EVM efforts

Cost Impact of Requirements Change Over Project Lifecycle

What does it cost to change

$0

$50

$100

$150

Cos

ts

g j y • What does it cost to change the width of an aircraft carrier?

• How would ship design change if it was inexpensive?

© Copyright 2009 Northrop Grumman

$

1 2 3 4 5 6 7 8 9 10 11Agile Traditional

if it was inexpensive?

6

Page 8: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Key Differences – Part 2 – Balances Constraints

© Copyright 2009 Northrop Grumman7

NORTHROP GRUMMAN

Page 9: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Key Differences – Part 3 & 4

• Project teams commit to delivering specified amount of capabilities• Project teams commit to delivering specified amount of capabilities or requirements in a fixed time versus tasks in a specified time– Measured in story points– Establish “Velocity” of story points per time (i.e. iteration or release)

• Agile takes credit for integrated and delivered code while EVM• Agile takes credit for integrated, and delivered code while EVM credits value when tasks are complete– Agile uses a customer centric definition of value aligned to features and

i t ti ti itirequirements over programmatic activities– “Value delivered earlier”

© Copyright 2009 Northrop Grumman8

Page 10: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Agile Progress Charts – “Something is “Missing

“That is great butThat is great, but what was the original plan?”original plan?

= Recommendations

© Copyright 2009 Northrop Grumman9

Page 11: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Planning Scope For Agile – “Filling EVM Gap”

Pl f 6 t 18 th• Plan for 6 to 18 month durations

• Baseline project capacity in 1 00

1.20

140

160

Earned Value Plan

Baseline project capacity in story points– Project level (12 months)– Release/spin level (3 0.60

0.80

1.00

80

100

120

Cumm Plan

Poin

ts

SPI

Release/spin level (3 months)

– Iteration level (2 to 4 weeks) 0.20

0.40

20

40

60Cumm. Earned

Earned ValueStor

y P

• Track and calculate progress (SPI) against the story point plan

0.000

20

story point plan

• Get Engineering Team participation

© Copyright 2009 Northrop Grumman10

Page 12: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

New Way Of Approaching SPI

• How to get less than or greater to 1 0 in a fixed duration timebox ?• How to get less than or greater to 1.0 in a fixed duration timebox ?– Traditionally

• “Complete scheduled tasks slower or faster than planned.”– Agile EVM

• “Deliver or complete more or less work than planned.”

• Why• Why– Agile uses fixed timeboxes to schedule work and varies the amount of

scope in a timebox

© Copyright 2009 Northrop Grumman11

Page 13: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

When to Replan and When to Take Credit for 1.0+ SPI?

• Scenario• Scenario– A project is able to take on more work than originally planned in a

release

• Agile EVM Recommendation– Move stories forward or add stories from existing project backlog

(SPI > 1.0)(SPI > 1.0)– Replan to increased scope if added stories are not in current

backlog ( SPI = 1.0)

© Copyright 2009 Northrop Grumman12

Page 14: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Lessons Learned

• Allow late acceptance for small amounts of remaining work (< 10%• Allow late acceptance for small amounts of remaining work (< 10% iteration)

• Split story points on release boundaries for large amounts of• Split story points on release boundaries for large amounts of carrying over work for accepting stories

• SPI is measured for the entire "contractual" effort (i.e. Increment X) ( )

• Deferred or antiquated requirements are removed from backlog thus reducing the total story points or replaced with new requirement of equal story point value

© Copyright 2009 Northrop Grumman13

Page 15: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

When to Take Credit For Value

Wh• When– Development complete? - Integration and testing complete?– Working in field? - After certification and accreditation?

• Many domains have extensive external certification processes that delay actual fielding

• RecommendationRecommendation– If delivery and deployment time is significantly less than the

development and testing time• Take credit for value after demonstration in the field

?– Else

• Take credit after an integration and test milestone that demonstrates acceptable levels of confidence

• Defect process will account for rework• Defect process will account for rework• Iterative aspect of agile reduces risk of costly defects leaking

through to field

© Copyright 2009 Northrop Grumman14

Page 16: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

When to Take Credit For Value – Partial Credit

“P ” A il d i ?• “Pure” Agile does not give partial credit – Similar to EVM’s 0,100 credit

Try to avoid a reporting process that likely cause variances

?

concept

• 0,100 Model can cause undesirable variances for

160.00

variances

undesirable variances for projects where delivery time is large with respect to d l t ti

80.00

100.00

120.00

140.00

Expected Hours Spentdevelopment time– Good candidate for 0,50,100

or 0,85,100 approach for dit

20.00

40.00

60.00

Expected Hours Spent

Expected Points Earned

credit 0.00

© Copyright 2009 Northrop Grumman15

Page 17: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

Summary

• Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach– “AgileEVM – Earned Value Management in Scrum

Projects”, Suliarman, Barton, and Blackburn

• Agile EVM takes a mind-set adjustment focused on planning, delivering, and reporting on value earned for capabilitiesfor capabilities

• Agile EVM is a minimal project burden for disciplined agile projectsg p j

© Copyright 2009 Northrop Grumman16

Page 18: Agile EVMAgile EVM · • Agile EVM Papers, experience, and tools support that Agile can provide metrics that feed a more traditional EVM approachEVM approach – “AgileEVM –

© Copyright 2009 Northrop Grumman17