Tracking Agile Project Performance

2,761 views
2,573 views

Published on

Published in: Technology, Business
1 Comment
1 Like
Statistics
Notes
No Downloads
Views
Total views
2,761
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
101
Comments
1
Likes
1
Embeds 0
No embeds

No notes for slide

Tracking Agile Project Performance

  1. 1. Tracking Agile Project Performance (Earned Value and Beyond) Presented by: Mike Griffiths, PMP Leading Answer Inc. www.LeadingAnswers.com October 14, 2009
  2. 2. My Background • Project Manager and Trainer • 20+ years IT experience on utilities, finance, defense, & energy • 8 years PM, PMO: Agile-to-Traditional Integration • Agile Project Management • Helped create DSDM in 1994 • 15 years agile project experience (XP, Scrum, FDD) • Board director of Agile Alliance and APLN • Author, trainer, and presenter Agile Conference 2001-9 • Traditional Project Management • PMP, PRINCE2 certifications • PMBOK v3 contributor and reviewer • Trainer for PMI SeminarsWorld 2005-9 • Presenter PMI Global Congress 2004-8
  3. 3. Agenda
  4. 4. Earned Value Analysis Projects are often costly and time consuming • “When will we finish and how much will it cost?”
  5. 5. Cost and Time Reporting Cost Reporting – S Curve Charts Project Expenditure 100 90 80 70 Spend $000 60 Estimate 50 40 Actual 30 20 10 0 Jan Jan Feb Feb Feb Feb Mar Mar Mar Mar Mar Apr 20 27 3 10 17 24 3 10 17 24 31 7
  6. 6. Cost and Time Reporting (Cont’d) Schedule Reporting - Tracking Gantt Charts
  7. 7. What is Earned Value? • A technique to measure, at a specific date: • Progress and performance of a project against a plan • Predict future performance of the project • Consists of 3 dimensions: 1. Planned Spend 2. Actual Spend 3. Budgeted Spend against Actual Work Accomplished
  8. 8. What is Earned Value (cont’d)? Answers these types of questions: • “When will we finish and how much will it cost?” • “Given our rate of expenditure are we tracking on progress?” • “Given our costs and progress how much will it take to complete?”
  9. 9. EV Critical Success Factors 1. Quality of the project’s baseline plan • Earned Value is compared against the baseline plan • Cost ‘overruns’ occur if project costs are under-budgeted • Scope creep will occur if initial scope hasn’t been adequately defined 2. Track actual performance against approved baseline plan • Measure whether actuals track to the baseline plan 3. Management’s determination to influence final results • Mgt commitment to take action based on EV projections if deviations from plan are observed Earned Value Project Management, Quentin Fleming & Joel Koppelman, 2000
  10. 10. Earned Value Analysis - Example Example: Building wall to surround a garden Assume 4 equal sides, budget £200 per side Schedule 1 side per day, finish in 4 days, cost £800
  11. 11. Earned Value Analysis - Example Day 1 Progress = Front wall completed budget spent £200
  12. 12. Earned Value Analysis - Example Day 1 Progress = Front wall completed budget spent £200 Day 2 Progress = Side 1 started, did not finish budget spent £220
  13. 13. Earned Value Analysis - Example • How much ahead/behind are we? • How much over/under budget are we? Day 1 Progress = Front wall completed budget spent £200 Day 2 Progress = Side 1 started, did not finish budget spent £220 Day 3 Progress = Side 1 finished, half of back done, left early, spent £140
  14. 14. Reminder: Earned Value Analysis Assume 4 equal sides, budget £200 per side Schedule 1 side per day, finish in 4 days, cost £800 Term Name Meaning Day 3 Values PV Planned Value Estimated value of the work £600 planned to be done EV Earned Value Estimated value of the work £200+£200+£100=£500 actually accomplished AC Actual Costs Actual Costs Incurred £200+£220+£140=£560 BAC Budget At Amount budgeted for total project £800 Completion EAC Estimate At Currently expected total for project ? Completion ETC Estimate To How much More to finish ? Complete VAC Variance At How much over/under we expect ? Completion to be
  15. 15. Earned Value Analysis Earned Value Formulae Name Formulae Value and Meaning Cost Variance CV=EV-AC (£200+£200+£100=£500) – (£200+£220+£140=£560) = -£60 (We are over budget) Schedule Variance SV=EV-PV (£200+£200+£100=£500) – (£200+£200+£200=£600)= -£100 (We are behind schedule) Cost Performance Index CPI=EV/AC £500/£560 = 0.89 (I am getting 89 pence out of every £) Schedule Performance SPI=EV/PV £500/£600 = 0.83 (I am progressing at 83% Index of the rate originally planned) Estimate At Completion EAC=BAC/CPI £800/0.89 = £900 (The total is now likely to be £900) Estimate To Complete ETC=EAC-AC £900 - £560 = £340 (From now I will likely spend £340) Variance At Completion BAC-EAC £800-£900 = -£100 (We expect to be £100 over budget)
  16. 16. Agile Earned Value Analysis While agile EVA application is possible, question: • Role – is it the best measure of progress? • Consider: Features delivered/remaining • Goal – is the main focus conformance to plan? • Consider: Adaptive planning techniques to improve the planning process • Consider: Focus on delivering business value
  17. 17. Agile Metrics • Time XYZ Project - Estimated Effort Remaining 250 E stim ated E ffort 200 150 100 50 0 Dec Dec Dec Dec Dec Jan Jan Jan Jan Feb Feb 01 08 15 22 29 05 12 19 26 02 09
  18. 18. Agile Metrics • Features Delivered/Remaining 450 400 350 300 250 Not Started In Progress Features 200 Completed 150 100 50 0 J an Fe b M ar Apr M ay J un J ul Aug Time Adapted from “Agile Management for Software Engineering” - David Anderson, 2003
  19. 19. Agile Metrics Scope (points) ABC Project Progress Spend
  20. 20. Agile Metrics
  21. 21. Agile Metrics Planned Costs Actual Costs  Earned Value Planned Value
  22. 22. Agile Metrics } Cost Variance  } Schedule Variance
  23. 23. } } Actual Costs (AC) Cost Variance Schedule Variance Planned Costs (PV) Earned Value (EV) SPI = Completed Features CPI = Earned Value Planned Features Actual Costs
  24. 24. Functionality-based Reporting Example 2: Feature-based Reporting FB Chief Programmers Initials Feature Set Status: Enter Order Not Started Feature Set Name Details Work in Progress (15) Number of Features in Completed the Feature Set Attention (i.e. behind) 24% Percentage Complete: Percentage Complete Bar The Feature Set called Enter Order Target Completion Month: October 2009 Details has 15 features and is Not Complete Complete currently 24% complete. It is due to be completed by October 2009
  25. 25. Functionality-based Reporting (Cont’d) Example 2: Feature-based Reporting Order Processing Inventory Management CM DH LF RS NC KB Create New Capture Enter Order Process Stock Item Order Customer Details Payment Search Details (5) Details (15) (11) (6) (12) (9) 100% 75% 24% 95% 75% Sep 2009 Oct 2009 Nov 2009 Dec 2009 Sep 2009 Oct 2009 Customer Management SW AW SW Create New Amend Archive Customer Customer Customer (8) Details (4) (6) 55% 20% Oct 2009 Oct 2009 Nov 2009
  26. 26. Flow – Queue Analysis Analysis DB Proc.s Code & UT User Test 45 30 40 35 • Identifying constraints • Buffering
  27. 27. Flow – Queue Analysis Using CFD’s for Identifying Bottlenecks Project Alpha - Cumulative Flow 140 120 100 Widening area activity Total Features Total 80 Analysis Bottleneck activity DB Procs 60 Code & UT 40 User Test 20 0 20/02/2004 27/02/2004 05/03/2004 12/03/2004 19/03/2004 26/03/2004 02/04/2004 09/04/2004 16/04/2004 23/04/2004 30/04/2004 07/05/2004 14/05/2004 21/05/2004 28/05/2004 Date
  28. 28. Agile Metrics Little’s Law: Cycle times are proportional to queue lengths. (We can predict completion times based on queue size)
  29. 29. Agile Metrics - Summary Agile metrics can provide the same indicators as earned value analysis Agile metrics also provide insights into cycle times and process bottlenecks Further Resources Web: www.LeadingAnswers.com Email: Mike@LeadingAnswers.com

×