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Agile in Fixed Price Projects               Kurush P. Wadia             12th November, 2010
Contracts are about protection                     2
Agile is about trust                       3
Agile Manifesto• Individuals and interactions over processes and tools• Working software over comprehensive documentation•...
Customers usually…… want to know what their total costs are                           … are conscious of                  ...
Excellent relationships andsuccessful projects…                     6
But when things go wrong…• For customer   • Loss of business value   • Scope changes• For seller   • Extra effort   • Unha...
Prerequisites for Fixed Price  Inputs and requirements have to be clear                       8
Prerequisites for Fixed Price  Risks and dependencies have to be minimal                      9
Feasibility & Assumptions     Technical     Feasibility                            User Friendly                          ...
Planning for the ProjectFeature list in Scope Statement drives the estimates for: – Scope in terms of Story Points – Proje...
Principles Of Agile Not To BeCompromised                 12
Agile teams therefore need to… Put the right people on the team  (customer and development)                    Determine a...
Contracts could be framed around…… goals rather than targets based onmoney and time available                    14
Contracts could be framed around…Profits                 Possibility to switch to T&M                        in case assum...
Spirit of the Contract…   Well collaborate together          Thank you! This will help    to define the best set of       ...
Introducing DSDM• Dynamic Systems Development Method• Some key tenets – There will always be business change – You can mov...
DSDM Philosophy       Traditional                            DSDM         Features     Fixed            Cost              ...
DSDM Lifecycle                 19
DSDM Organization
Technique in DSDM – MoSCoWPrinciple• MoSCoW Principle – Must – has to be done (60-   75%)                                 ...
Quality in DSDM• Quality is planned from the start  – Product Quality Criteria• Facilitated Workshops• Continuous focused ...
Risks in DSDM• Several extra roles• Existing roles need additional tasks• Additional risks• Additions to phases           ...
Summary• Weigh pros and cons of Agile in fixed price so as  not to lead to scope changes• Feasibility study is vital• DSDM...
Questions?             25
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Agile-based fixed price projects are tricky to manage and pose unique challenges. This presentation is a small endeavor to help people understand these challenges and possible ways in which to work around them. Many thanks to all sources mentioned.

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Agile fixed-price-slide share

  1. 1. Agile in Fixed Price Projects Kurush P. Wadia 12th November, 2010
  2. 2. Contracts are about protection 2
  3. 3. Agile is about trust 3
  4. 4. Agile Manifesto• Individuals and interactions over processes and tools• Working software over comprehensive documentation• Customer collaboration over contract negotiation• Responding to change over following a planWhile there is value in items on the right, we value the items on the left more. 4
  5. 5. Customers usually…… want to know what their total costs are … are conscious of both, schedule and cost… want measurable businessvalue using the developedsoftware 5
  6. 6. Excellent relationships andsuccessful projects… 6
  7. 7. But when things go wrong…• For customer • Loss of business value • Scope changes• For seller • Extra effort • Unhappy customer 7
  8. 8. Prerequisites for Fixed Price Inputs and requirements have to be clear 8
  9. 9. Prerequisites for Fixed Price Risks and dependencies have to be minimal 9
  10. 10. Feasibility & Assumptions Technical Feasibility User Friendly Design Business Requirements 10
  11. 11. Planning for the ProjectFeature list in Scope Statement drives the estimates for: – Scope in terms of Story Points – Project duration in terms of Months/Weeks – Cost in terms of € 11
  12. 12. Principles Of Agile Not To BeCompromised 12
  13. 13. Agile teams therefore need to… Put the right people on the team (customer and development) Determine and communicate business value upfront Set a project completion date 13
  14. 14. Contracts could be framed around…… goals rather than targets based onmoney and time available 14
  15. 15. Contracts could be framed around…Profits Possibility to switch to T&M in case assumptions in the contract turn invalid Fixed Price Time & Material Time 15
  16. 16. Spirit of the Contract… Well collaborate together Thank you! This will help to define the best set of us do justice to your detailed features to go live business needs and be with, on that date, for that open to any changes that price. might come in the future. 16
  17. 17. Introducing DSDM• Dynamic Systems Development Method• Some key tenets – There will always be business change – You can move forward as soon as enough is known – Timeboxed iterations help us meet an unmovable deadline – Prioritize using MoSCoW principle 17
  18. 18. DSDM Philosophy Traditional DSDM Features Fixed Cost Time Quality QualityTime Cost Variable Features 18
  19. 19. DSDM Lifecycle 19
  20. 20. DSDM Organization
  21. 21. Technique in DSDM – MoSCoWPrinciple• MoSCoW Principle – Must – has to be done (60- 75%) Must – Should – important but may be worked around short-term Should (20%) – Could – may be left out if Could necessary (20%) – Won’t – add to the list to be Won’t done next time Out of scope 21
  22. 22. Quality in DSDM• Quality is planned from the start – Product Quality Criteria• Facilitated Workshops• Continuous focused user involvement• Reviews – Prototypes – Supporting documents• Testing through the lifecycle• Base-lined requirements• Configuration management 22
  23. 23. Risks in DSDM• Several extra roles• Existing roles need additional tasks• Additional risks• Additions to phases 23
  24. 24. Summary• Weigh pros and cons of Agile in fixed price so as not to lead to scope changes• Feasibility study is vital• DSDM can provide flexibility with control but has additional roles, phases, and tasks to it• Quality should never be compromised 24
  25. 25. Questions? 25

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