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The 100k proposition
The document evaluates the cost-saving potential of agile training for a new development team, aiming to reduce an £800k project budget by £100k without reducing project scope. It highlights various methods for savings, including early bug detection, increasing code quality, and improving learning through co-location and collaboration, totaling an estimated savings of £102,430. The ultimate benefit of agile is framed as the ability to release products faster and adapt to changes more quickly than traditional waterfall methods.
The 100k proposition
- 1. The 100k Proposition Liz Keogh April 2011
- 2.
- 3. Assumed Costs perDay £700 £350
- 4. The Team’s Budget £800k over 1 year
- 5. The Team’s Scope 4 features every 2 weeks (80 features)
- 6. Quality 75% of features 10% of time are used is bugfixing
- 7. Quality A bug takes½ day on average Each week, 4 devs fix 8 bugs Over the project, devs fix 320 bugs
- 8. The Goal To showhow Agile training for a new team can pay for itself by reducing the cost of an £800k project by £100k.
- 9. Descoping a feature Hmm! They won’t really need that.
- 10. Descoping a feature Each feature takes 1 dev 10 days and 1 tester 2 ½ days Saving: 12 ½ x £350 = £4375
- 11. Descoping a feature If we get 50% of unused features out Saving: 12.5% of £800k = £100k
- 12. Done! That was easy! Can we do it without descoping?
- 13. The Goal To showhow Agile training for a new team can pay for itself by reducing the cost of the project without reducing the scope.
- 14. Finding a bugearly Oops! We found a bug! Oops! Let me fix that…
- 15. Finding a bugearly Now: In 2 months: ½ hour = £25 ½ day = £175 Saving: £150 per bug
- 16. Finding a bugearly If we do it for ½ the bugs, saving over the project ½ x £150 x 320 = £24,000
- 17. Increasing code qualityby 25% This is much better! Do I get to do something new then?
- 18. Increasing code qualityby 25% 4 dev days per week -> 3 ½ tester day per week -> ¼ (fewer bugs to write up too) Saving: £436.50 per week If this happens ½ way through the project: Saving: £8730
- 19. Increasing code qualityby 25% Hold on. We take ½ hour now, not ½ day! For ½ the bugs… Cheat. You can’t count it twice!
- 20. Increasing code qualityby 25% 4 dev days per week -> 3 (x ½ the bugs) 2 dev hours per week -> 1 ½ (x ½ the bugs) ½ tester day per week -> ¼ Saving for ½ the project: £5,730
- 21. Co-location and collaboration If you could do the same project again with the same people and the same requirements and technologies, how long would it take?
- 22. Co-location and collaboration At least 60% of a project is learning.
- 23. Co-location and collaboration Increasingthe rate of learning by 10% (really 20% but not counting other things twice) = 60% x 10% x 800k Saving: £48,000
- 24. Co-location and collaboration Co-location is impossible here! That’s a shame. Let’s look at some other practices…
- 25. Learning comes mostlyfrom Co-location 50% £24,000 Stand-ups 17% £8,000 Retrospectives 17% £8,000 Breaking down stories 8% £4,000 Showcases 8% £4,000 Saving without co-location: £24,000
- 26. Late Change inRequirements Time taken to agree change and update documentation reduced from 1 day to 1 hour 10% of analysis needs changing 6 hours x £50 x 10% x 200 days Saving: £6,000
- 27. Automated tests The cost of testing goes up linearly as the code grows.
- 28. Automated tests Cost of developers helping with automated tests at 1 day every 2 weeks: £7000 Not needing to hire another tester in the last ¼ of the project: £17,500 Saving: £10,500
- 29. Motivation and effectiveness More time I get exploring, less I get to see feedback time writing my work on mine! bug reports! working!
- 30. Motivation and Effectiveness If motivation makes team only 4% more effective Saving: £32,000
- 31. Practices Total earned Finding bugs early £24,000 Increasing code quality £5,730 Learning practices £24,000 Changes in requirements £6,000 Automated testing £10,700 Motivation & £32,000 effectiveness Total £102,430
- 32. Done! The numbers provided here are fairly conservative, and these are just some of the benefits Agile can offer.
- 33. The Real Benefit The real benefit of Agile over Waterfall happens when we showcase or release, and find out we did the wrong thing. Ideally, we’re only wrong by 2 weeks, instead of 1 year.
- 34. The Real Benefit Or, we get to release early, and start getting benefit from the right thing. That means 6 months extra of earning money from the early release. Either way, that’s a lot of cash.
- 35. Agile. Why wouldn’t youdo it?