Fixed costs projects              Practical experience
Agenda   Pre-sale   Planning   Implementation   Finishing   SCRUM                     2
On which phase a projectmanager is starting a fixed-cost project?                                            3
Pre sale1. Pre-sale   Needs   Estimation   Tips                 4
Understand needs   Learn   Ask   Draw   Concept                   5
Learning of customer needs   The best way – face to face meeting   Or video conference                                  ...
Ask as much as possible!   Ask as much as possible   Show examples                              7
Make and present mock-up’s                             8
Project concept   Looking for existed solutions (Goal: cost reducing).   Prepare a few options.   Prototype            ...
Estimation   Do not forget   Gaps in specification   Risks                            10
Estimation: Do not forget                            11
Warranty effort                  12
Buffer for small changes                           13
Effort for meeting and ongoingissues                                 14
Effort for documentation                           15
Pre sale effort                  16
Example          17
Gaps in the specification   Assumptions   “Will be implemented like …”   Implement as T&M part.   Notice:       Bug f...
How to handle gaps in thespecification ?   Example of assumptions:       We assume that workflow module should contain a...
Risks   List of risks:       Description       Probability       Influence       Mitigation plan       Trigger     ...
Risk handling   Share with the customer   Include in price                              21
How to include risk in the price   Calculated risk cost (Rc)   Probability (P. From 0 to 1)   Risk reserve (Rr)   Rr=R...
Tips& tricks   Team/duration   People involving   Fixed cost magic   Commercial correction                            23
Project duration/team   Split project on sub projects (as well sub-contracts)   Build small teams                       ...
People involving   Involve on pre-sale stage people who will take a part in    the project implementation                ...
Magic multiplier   Magic multiplied based on experience   For example:       Effort=Estimated effort(dev)*2,2         ...
Commercial correction   Effort -> $   Stomach feeling   Consulting with sales department   Is it possible with final a...
Project planning 2.   Planning                   28
Communication plan                     29
Time buffer before milestones                                30
Reaction time of the customer                                31
Acceptance criteria                      32
Invoicing plan     Lineal distribution     Payment after milestone delivery     Payment after project delivery         ...
On implementation3. Implementation   Risk review   “Small changes”   Change requests   Reporting                      34
Risks   Plan of risks analyzing   Update involved people (customer, sales, supervisor etc)                              ...
Small changes   You have a buffer for them   Efforts of small changes must be controlled   Customer always needs much m...
Change requests   Definition of CR must be created and agreed   Don’t show real spent effort for CR (common JIRA)   Str...
Including strategy   The customer will be noticed concerning duration and    budget changes before implementation        ...
Important notice   Effort spent for CR clarification will be included in final    estimation                             ...
Postpone   CR’s cold be collected and realized as a minor release   It is bad idea to implement CR’s separately         ...
Important notice   Estimated scope of work must be described in CR                                                      41
Notice   Use the similar approaches as on pre-sale stage:       Assumptions       T&M       Like example              ...
Reporting   Should be introduced impact report   You will be sure that the customer understands real    deadline of the ...
Project finishing4. Finishing   Acceptance   Maintenance   Experience sharing                         44
Acceptance   Should be defined acceptance criteria   The customer should have restricted time for acceptance   Should b...
Maintenance   Right time for a maintenance proposal   Do you want additional benefit? Organize resources in the    most ...
Save knowledge   The risks will be reviewed (what happened/what not)   Update internal knowledge base   Will be defined...
Bonus   SCRUM+Fixed cost=own experience                                      48
What works?   Sprint   Daily scrum   Sprint planning   Sprint review   Retrospective   Product Owner     Should be i...
What works?   Sprint backlog   Burn down   Planning Poker   Story points   Definition of Done   Velocity            ...
More information here…               We would be happy to               answer any of your               Questions?       ...
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PracticeLeadersManagement&Communication18042012YuriyKudin-Fixed cost projects presentation

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PracticeLeadersManagement&Communication18042012YuriyKudin-Fixed cost projects presentation

  1. 1. Fixed costs projects Practical experience
  2. 2. Agenda Pre-sale Planning Implementation Finishing SCRUM 2
  3. 3. On which phase a projectmanager is starting a fixed-cost project? 3
  4. 4. Pre sale1. Pre-sale Needs Estimation Tips 4
  5. 5. Understand needs Learn Ask Draw Concept 5
  6. 6. Learning of customer needs The best way – face to face meeting Or video conference 6
  7. 7. Ask as much as possible! Ask as much as possible Show examples 7
  8. 8. Make and present mock-up’s 8
  9. 9. Project concept Looking for existed solutions (Goal: cost reducing). Prepare a few options. Prototype 9
  10. 10. Estimation Do not forget Gaps in specification Risks 10
  11. 11. Estimation: Do not forget 11
  12. 12. Warranty effort 12
  13. 13. Buffer for small changes 13
  14. 14. Effort for meeting and ongoingissues 14
  15. 15. Effort for documentation 15
  16. 16. Pre sale effort 16
  17. 17. Example 17
  18. 18. Gaps in the specification Assumptions “Will be implemented like …” Implement as T&M part. Notice:  Bug fixing is also part of T&M!  Additional management for managing T&M part 18
  19. 19. How to handle gaps in thespecification ? Example of assumptions:  We assume that workflow module should contain about 10 screens with complexity like “email configuration screen”  Integration with python will implemented using simple interface: each python script should be presented like a function with hardcoded input and output parameters. Through admin part it is only possible change body of the script but not the interface. In the price is included integration of 2 scripts  Will be implemented 2 reports with complexity like “Insured persons report” 19
  20. 20. Risks List of risks:  Description  Probability  Influence  Mitigation plan  Trigger  Migration plan 20
  21. 21. Risk handling Share with the customer Include in price 21
  22. 22. How to include risk in the price Calculated risk cost (Rc) Probability (P. From 0 to 1) Risk reserve (Rr) Rr=Rc*P 22
  23. 23. Tips& tricks Team/duration People involving Fixed cost magic Commercial correction 23
  24. 24. Project duration/team Split project on sub projects (as well sub-contracts) Build small teams 24
  25. 25. People involving Involve on pre-sale stage people who will take a part in the project implementation 25
  26. 26. Magic multiplier Magic multiplied based on experience For example:  Effort=Estimated effort(dev)*2,2  0,3 – Estimation error  0,4 – Testing  0,3 – Management  0,2 – Communications etc. 26
  27. 27. Commercial correction Effort -> $ Stomach feeling Consulting with sales department Is it possible with final amount to finish the project? 27
  28. 28. Project planning 2. Planning 28
  29. 29. Communication plan 29
  30. 30. Time buffer before milestones 30
  31. 31. Reaction time of the customer 31
  32. 32. Acceptance criteria 32
  33. 33. Invoicing plan  Lineal distribution  Payment after milestone delivery  Payment after project delivery 33
  34. 34. On implementation3. Implementation Risk review “Small changes” Change requests Reporting 34
  35. 35. Risks Plan of risks analyzing Update involved people (customer, sales, supervisor etc) 35
  36. 36. Small changes You have a buffer for them Efforts of small changes must be controlled Customer always needs much more Use batching strategy 36
  37. 37. Change requests Definition of CR must be created and agreed Don’t show real spent effort for CR (common JIRA) Strategies:  Include  Postpone 37
  38. 38. Including strategy The customer will be noticed concerning duration and budget changes before implementation 38
  39. 39. Important notice Effort spent for CR clarification will be included in final estimation 39
  40. 40. Postpone CR’s cold be collected and realized as a minor release It is bad idea to implement CR’s separately 40
  41. 41. Important notice Estimated scope of work must be described in CR 41
  42. 42. Notice Use the similar approaches as on pre-sale stage:  Assumptions  T&M  Like example 42
  43. 43. Reporting Should be introduced impact report You will be sure that the customer understands real deadline of the project 43
  44. 44. Project finishing4. Finishing Acceptance Maintenance Experience sharing 44
  45. 45. Acceptance Should be defined acceptance criteria The customer should have restricted time for acceptance Should be defined responsible persons from customer side 45
  46. 46. Maintenance Right time for a maintenance proposal Do you want additional benefit? Organize resources in the most effective way! Propose a few options of reaction time and level of responsibility Jira 46
  47. 47. Save knowledge The risks will be reviewed (what happened/what not) Update internal knowledge base Will be defined and shared the best practices What components of the project could be reused in another projects 47
  48. 48. Bonus SCRUM+Fixed cost=own experience 48
  49. 49. What works? Sprint Daily scrum Sprint planning Sprint review Retrospective Product Owner Should be introduced proxy PO ScrumMaster Product backlog 49
  50. 50. What works? Sprint backlog Burn down Planning Poker Story points Definition of Done Velocity 50
  51. 51. More information here… We would be happy to answer any of your Questions? 51

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