Agile fix cost_pecha_kucha
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Copyright GlobalLogic 2010 1 Connect. Collaborate. Innovate. Leveraging Agile in Fixed-Cost Engagements Pecha Kucha Presentation GlobalLogic Agile Community Event, Noida 3 rd Nov, 2011 Viresh Suri, CSM Project Manager, GlobalLogic [email protected]
Transcript of Agile fix cost_pecha_kucha
Leveraging Agile inFixed-Cost Engagements
Pecha Kucha Presentation
GlobalLogic Agile Community Event, Noida
3rd Nov, 2011
Viresh Suri, CSMProject Manager, GlobalLogic
Time & Material Engagement
Vendor Partner
Fixed Cost Engagement
Vendor Partner
Does Agile mean Change?
Are changes Changes are welcome everytime ?
Agile =
Does Agile Collaboration with Partner help?
Iteration Demo, Collaboration gives too many opportunities to Partner for requesting changes ?
How do we manage Risks ?
•Time/Effort estimation go wrong
•Unexpected Costs
•Technology challenges
•Key Resources leave
And if the contract is Fixed-Cost ….
Vendor
Partner
The Truth about Changing Requirements
•Changing requirements does not increase work scope
• Requirements don’t change in the Middle of the Iteration
The Truth about Changing Requirements
=
EFFORT will NOT CHANGE
Taking Agile to Fixed Cost
Cost Effort
• Have a Minimum Marketable Release (MMR)
Taking Agile to Fixed Cost
Product > MMR Product < MMR
• 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
• Maintain status visibility through Burn-Down chart, other metrics
Taking Agile to Fixed Cost
• Risk Management – Add buffers to Estimates where needed
Taking Agile to Fixed Cost
• Risk Management – Add buffers to Velocities when predicting Timelines
Taking Agile to Fixed Cost
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
Fixed Cost Contracting
Fixed Cost Contracting
– 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
