Agile fix cost_pecha_kucha
Transcript of Agile fix cost_pecha_kucha
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Leveraging Agile inFixed-Cost Engagements
Pecha Kucha Presentation
GlobalLogic Agile Community Event, Noida
3rd Nov, 2011
Viresh Suri, CSMProject Manager, GlobalLogic
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Time & Material Engagement
Vendor Partner
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Fixed Cost Engagement
Vendor Partner
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Does Agile mean Change?
Are changes Changes are welcome everytime ?
Agile =
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Does Agile Collaboration with Partner help?
Iteration Demo, Collaboration gives too many opportunities to Partner for requesting changes ?
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How do we manage Risks ?
•Time/Effort estimation go wrong
•Unexpected Costs
•Technology challenges
•Key Resources leave
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And if the contract is Fixed-Cost ….
Vendor
Partner
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The Truth about Changing Requirements
•Changing requirements does not increase work scope
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• Requirements don’t change in the Middle of the Iteration
The Truth about Changing Requirements
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EFFORT will NOT CHANGE
Taking Agile to Fixed Cost
Cost Effort
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• Have a Minimum Marketable Release (MMR)
Taking Agile to Fixed Cost
Product > MMR Product < MMR
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• The best way to control costs is to have aHighly Productive Team
• Do NOT compromise on :– Test Automation– Unit Testing– ReviewsThese will help team achieve long term productivity benefits, esp. in larger projects
Taking Agile to Fixed Cost
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• Maintain status visibility through Burn-Down chart, other metrics
Taking Agile to Fixed Cost
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• Risk Management – Add buffers to Estimates where needed
Taking Agile to Fixed Cost
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• Risk Management – Add buffers to Velocities when predicting Timelines
Taking Agile to Fixed Cost
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Fixed Cost Contracting
Optimistic Time Prediction : Assuming High Velocity of 20 points, Project will be completed in 6 iterations
Pessimistic Time Prediction : Assuming Low Velocity of 15 points, Project will be completed in 8 iterations
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Fixed Cost Contracting
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Fixed Cost Contracting
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– Developer Productivity may be compromised
– Beneficial Change avoided e.g. some change to technology, functionality
– Business change may be prevented
– Often vendors not capable of doing cost estimates in the beginning
What may not align well in Fixed Cost