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GlobalLogic Agile Community Event,
                            Noida
                                        Leveraging Agile in
                     3rd Nov, 2011   Fixed-Cost Engagements
                                        Pecha Kucha Presentation


                                         Viresh Suri, CSM
                                       Project Manager, GlobalLogic
                                          viresh.suri@gmail.com
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
The Truth about Changing Requirements

• Requirements don’t change in the Middle of the Iteration
Taking Agile to Fixed Cost




                             =
               Cost                        Effort




                                 EFFORT will NOT CHANGE
Taking Agile to Fixed Cost

• Have a Minimum Marketable Release (MMR)




            Product > MMR                   Product < MMR
Taking Agile to Fixed Cost

• The best way to control costs is to have a
  Highly Productive Team




• Do NOT compromise on :
    – Test Automation
    – Unit Testing
    – Reviews
    These 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
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
What may not align well in Fixed Cost

   – 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
Thank You !

viresh.suri@gmail.com

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Agile fix cost_pecha_kucha

  • 1. GlobalLogic Agile Community Event, Noida Leveraging Agile in 3rd Nov, 2011 Fixed-Cost Engagements Pecha Kucha Presentation Viresh Suri, CSM Project Manager, GlobalLogic viresh.suri@gmail.com
  • 2. Time & Material Engagement Vendor Partner
  • 3. Fixed Cost Engagement Vendor Partner
  • 4. Does Agile mean Change? Are changes Changes are welcome everytime ? Agile =
  • 5. Does Agile Collaboration with Partner help? Iteration Demo, Collaboration gives too many opportunities to Partner for requesting changes ?
  • 6. How do we manage Risks ? • Time/Effort estimation go wrong • Unexpected Costs • Technology challenges • Key Resources leave
  • 7. And if the contract is Fixed-Cost …. Vendor Partner
  • 8. The Truth about Changing Requirements • Changing requirements does not increase work scope
  • 9. The Truth about Changing Requirements • Requirements don’t change in the Middle of the Iteration
  • 10. Taking Agile to Fixed Cost = Cost Effort EFFORT will NOT CHANGE
  • 11. Taking Agile to Fixed Cost • Have a Minimum Marketable Release (MMR) Product > MMR Product < MMR
  • 12. Taking Agile to Fixed Cost • The best way to control costs is to have a Highly Productive Team • Do NOT compromise on : – Test Automation – Unit Testing – Reviews These will help team achieve long term productivity benefits, esp. in larger projects
  • 13. Taking Agile to Fixed Cost • Maintain status visibility through Burn-Down chart, other metrics
  • 14. Taking Agile to Fixed Cost • Risk Management – Add buffers to Estimates where needed
  • 15. Taking Agile to Fixed Cost • Risk Management – Add buffers to Velocities when predicting Timelines
  • 16. 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
  • 19. What may not align well in Fixed Cost – 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