Presentation CI&T Value Engineering Framework

A truly global company, CI&T is headquartered in Campinas, Brazil, with strategic locations across Latin America, North America, Europe and Asia, offering nearshore outsourcing services to clients around the globe.

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OUR JOURNEY TO LEAN

1995CI&T IS BORN

PIONEER IN RUP2001CI&T

EXPANDS IN BRAZIL

DISTRIBUTEDTEAMS

2004CMM 3

2006CI&T GOES

GLOBAL

2007

AND AGILE

CONSTANTGROWTH

1st

2008LEAN

ITSOLID COMPETENCE

kaizen改善

During this journey we learned our important Value Engineering is for our projects' success. It become one of our pillars...

What and Why?The Importance of Value

Engineering

● Value Engineering is a systematic method to improve the "value" of products and services by using an examination of their functionalities. Value, as defined, is the ratio of benefit to cost. Value can therefore be increased by either improving the functionality benefit or reducing the cost.

● Value Engineering uses rational logic and the analysis of functionality to identify ways to increase value. It is considered a quantitative method similar to the scientific method.

What is Value Engineering

● Deliver real value to client: understand client perception of value, the business goals, needs and issues to purpose the best solution

● To be recognized by the client as the efficient link between IT and business areas

● Demonstrate real delivered value and CI&T development model

● For CI&T it is a very important scope management tool

Why do Value Engineering

● Keeps the focus on the big picture: first the most important

● Better support for business decisions

● Defines realistic budgets and support on budget projects

● Points out waste that can be eliminated, the biggest IT industry issue

● Speeds up the solutions delivery and value activation

● Promotes better communication, alignment and commitment

The importance of Value Engineering

Value Definition and Perception

How Value Engineering works

A motorcycle value

The FrameworkPutting it all together

How it all fits together

How it all fits together

The tool: a simple spreadsheet

First sheet: focused on value

The tool: a simple spreadsheet

Second sheet: focused on cost

Exploring the FrameworkValue Indicators Analysis

Value prioritization graph

Value x Cost comparison

Value x Cost accumulated

Same Tips

● Defining drivers or strategic vision:○ Always look for the company vision, mission, strategic

view

● Defining business capabilities:○ Ask which benefit will bring to the company different

areas/departments○ Keep in mind that the project goals must be aligned with

the company’s strategic vision○ Use the weight 21 for the most important capability○ Do not use more than one capability with the same

weight

When doing the Value Analysis

● Defining value components:○ It is just a label○ It is easier to derive it from the project backlog

■ Grouping functionality that are related from business perspective

○ More than one component may be needed to activate value■ Release plan must take that into account

○ Should be small, preferably fitting into one sprint■ This way we keep an agile value demonstration throughout

the project■ It is easier to manage scope

○ After value prioritization we should review the prioritization considering components dependency

When doing the Value Analysis

● Make sure you provide coaching for your PO and/or any other stakeholder needed to identify and quantify value

● All those concepts are not trivial when you are faced with value engineering spreadsheets for the first time

● Make sure you explain the concepts as well as how the spreadsheet works

What if my PO doesn’t get it?

● If they still resist to use the value engineering framework○ Talk to PO directly and try to understand informally what is the

driver and business capabilities○ Discuss with them the importance of such goals

comparatively. You don't even need to ask them to give a weight but you can use other concepts/terminology that is more comfortable to PO (such as critical, medium, trivial and map them to our weights like this: critical = 21, medium = 8, trivial = 3)

● Translate the information that you got from PO into the value engineering framework and show them the end result, explaining how your conversation maps into it. You can use the value x cost chart to show it to PO. This visual tool may help PO to better understand how we dealt with the value based answers

What if my PO doesn’t get it?

● First step: make a decision on prioritization○ Value○ Precedence x Value

● The roadmap should include○ Inception/setup○ Planned releases: define set of value components that

could or should be moved to production together○ Value activation: plan move to production

Create a Value Roadmap

Value Roadmap

Demonstrate Value

● Value must be delivered and demonstrated to guarantee value perception

● There are several ways to demonstrate it

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