“Sprint Contract”: managing scope    and cost in Scrum projects              Carlos Santos da Silva             http://c-s...
Bio Working in Manaus Industrial Park for +24 years  Industry: 12 years  R&D:      12 years Experience  Development e...
Agenda• Introduction• Framework (concept)• Framework (practice)                    Nokia Internal Use Only
Introduction   Nokia Internal Use Only
Portfolio Setup                           Company Portfolio                                       Program A               ...
Types of Contracts & Risks                               Fixed Cost & High                          Fixed Scope           ...
Scrum Project Parameters                     Cost                                        Quality• PBL                     ...
Fixed or Variable                 Revenue                                                           $$$$$$                ...
Bonus/Penalty Clause                   Revenue$$$                   Pro                            Sprint Review          ...
Framework  Nokia Internal Use Only
Sprint Contract (example)     Project Start     Sprint Work      Sprint Work                                              ...
Sprint Contract (Simulation: Sprint rate $1000) Sprint #1     Sprint #2        Sprint #3                 Sprint #4        ...
In Practice...    Nokia Internal Use Only
First Estimation•   Customer’s PO prepares an initial PBL•   Supplier’s team comes for estimation•   Story points relative...
Sprints to Go• First velocity estimated by the team (sprint length= 15 d)• First velocity used to calculate remaining spri...
Make or Buy?• Make of Buy decision based on:  – Strategic project  – Competence and resources available to do internally  ...
How to validate Goal, %pts e ROI?           Nokia Internal Use Only
Payment Calendar         Sprint Length: 15 daysS01:   Aug                   S04/05: NovS02:   Sep                   S06:  ...
Delivery Results                  •      Actually run in practice during 1.5 years                  •      Product Owner (...
Thanks  Nokia Internal Use Only
Recommended Material• 10 Contracts for your next Agile Software Project  (Peter Stevens)• Outsourcing & Offshore Agile Del...
Backup Slides    Nokia Internal Use Only
Abordagem Ágil – Scrum                                  Fonte: Mountain Goat        Nokia Internal Use Only
Sprints inside Project CycleP                                                                                             ...
Contract Example     Nokia Internal Use Only
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Sprint Contract

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Managing variable scope and cost in Scrum projects.

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  • Arcabouço Scrum com seus componentes. Idioma original em inglês para não influenciar no entendimento.
  • Explicar sobre o ciclo PDCA. Mostrar que na camada de gerenciamento de projetos o PDCA acontece em nível macro e no Scrum acontece à cada Sprint, naturalmente refletindo positivamente no gerenciamento de projetos.O procedimento referencia ao nível de gerenciamento de projetos, a instrução de trabalho detalha sobre o arcabouço, as minutas das cerimônias e artefatos tornam-se evidências através de registros.
  • Sprint Contract

    1. 1. “Sprint Contract”: managing scope and cost in Scrum projects Carlos Santos da Silva http://c-santos.blog.com http://br.linkedin.com/in/silvacarloss October/2012 (latest review) Nokia Internal Use Only
    2. 2. Bio Working in Manaus Industrial Park for +24 years  Industry: 12 years  R&D: 12 years Experience  Development embedded software for automated devices, microwave-ovens, TV sets, DVD payers, telephones;  Managed Product Engineering, Industrial Engineering and Quality Assurance;  Managed SW development projects for LCD/Plasma TVs;  Managed Operations for Mobile Linux Software area;  Managing Product Program for mobile devices. Nokia Internal Use Only
    3. 3. Agenda• Introduction• Framework (concept)• Framework (practice) Nokia Internal Use Only
    4. 4. Introduction Nokia Internal Use Only
    5. 5. Portfolio Setup Company Portfolio Program A Program B Project A Project B Project E Subproject X Program C Subproject Y Project C ExternalHow to manage scope and cost Project D of an external Scrum project? Nokia Internal Use Only
    6. 6. Types of Contracts & Risks Fixed Cost & High Fixed Scope Low 1. the "Sprint Contract" 2. Fixed Price / Fixed Scope 3. Time and Materials 4. Time and Materials with Fixed Scope and a Cost Ceiling 5. Time and Materials with Variable Scope and Cost CeilingSupplier 6. Phased Development Customer 7. Bonus / Penalty Clauses 8. Fixed Profit 9. “Money for Nothing, Changes for Free” 10. Joint Ventures Variable Cost & Low Variable Scope High Nokia Internal Use Only
    7. 7. Scrum Project Parameters Cost Quality• PBL • Sprint• Sprint • Team Size Length • DoD Backlog • Sprint Length Scope Time Nokia Internal Use Only
    8. 8. Fixed or Variable Revenue $$$$$$ u e v en Revenue is constant, independently of the Re Pr ofi effort applied or delivery date. t it P rof Effort Effort Fixed Price/ Fixed Scope Variable Scope/ Variable Cost Nokia Internal Use Only
    9. 9. Bonus/Penalty Clause Revenue$$$ Pro Sprint Review fit G ai n/ Lo ss Effort Fixed Price / Variable Scope Nokia Internal Use Only
    10. 10. Framework Nokia Internal Use Only
    11. 11. Sprint Contract (example) Project Start Sprint Work Sprint Work no Payment: Goal? no SprintRate * 90% yes Payment:no Pts <90%? yes SprintRate * 95% no Payment: Payment: SprintRate * Pts 90~100%? yes ROI? yes SprintRate MissingSprints * 30% no Finish Project Payment: Pts > 100% yes SprintRate * 105% Nokia Internal Use Only
    12. 12. Sprint Contract (Simulation: Sprint rate $1000) Sprint #1 Sprint #2 Sprint #3 Sprint #4 Sprint #5 Sprint #6 Sprint #6 Sprint #7 Sprint #7 Sprint #8 Sprint #8 Sprint #9 Sprint #9 Sprint #10ROI? Goal? Scoring? Payment: R$1.050 R$1.000 R$900 R$950 <90% 90~100% >100% R$1.500 Project Overall Cost: + R$4.900 R$1.500 = R$6.400 Nokia Internal Use Only
    13. 13. In Practice... Nokia Internal Use Only
    14. 14. First Estimation• Customer’s PO prepares an initial PBL• Supplier’s team comes for estimation• Story points relative (size)• Planning Poker: 1, 2, 3, 5, 8, 13 and 20 pts Nokia Internal Use Only
    15. 15. Sprints to Go• First velocity estimated by the team (sprint length= 15 d)• First velocity used to calculate remaining sprints – Backlog = 291 pts; S01 = 34 pts – 291 pts / 34 pts = 8.5 sprints  9 sprints Nokia Internal Use Only
    16. 16. Make or Buy?• Make of Buy decision based on: – Strategic project – Competence and resources available to do internally – Cost comparison: internal vs. external – Other relevant decision• What’s the internal cost? – Team size during estimation meeting? – Raise effort in Man Month, then: • MMRate = $10.000 • MHRate = $10.000/176h = $56,82 • MDRate =MH * 8.8h = $500,02 • Project = SprintLen*TeamSize*MDRate* SprintsToGo = 15*5*500*9 = $337.500 (SprintRate = $37.500) Nokia Internal Use Only
    17. 17. How to validate Goal, %pts e ROI? Nokia Internal Use Only
    18. 18. Payment Calendar Sprint Length: 15 daysS01: Aug S04/05: NovS02: Sep S06: DecS03: Oct S07/08: Jan+ Nokia Internal Use Only
    19. 19. Delivery Results • Actually run in practice during 1.5 years • Product Owner (customer) • Scrum Master (supplier) • Transparency Project On Time Delivery per Sprint 120% Project On Time Delivery per Sprint 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 120% 100% 100% 100% 100% 100% 100% 100% 100% 100% 80% Delivery Rate 80%Delivery Rate 65% 60% 60% 39% 40% 40% 20% 20% 0% 0% 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 9 10 11 12 2010/01 2010/02 2010/03 2010/04 2010/05 2010/06 2010/07 2010/08 2010/09 2010/10 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12 Year/Month, Sprint# Year/Month, Sprint# Average of OTD Target 90% Average of OTD Actual Average of OTD Target 90% Average of OTD Actual Nokia Internal Use Only
    20. 20. Thanks  Nokia Internal Use Only
    21. 21. Recommended Material• 10 Contracts for your next Agile Software Project (Peter Stevens)• Outsourcing & Offshore Agile Delivery with Scrum (Craig Larman)• Your Scrum Checklist (Boris Gloger) Nokia Internal Use Only
    22. 22. Backup Slides Nokia Internal Use Only
    23. 23. Abordagem Ágil – Scrum Fonte: Mountain Goat Nokia Internal Use Only
    24. 24. Sprints inside Project CycleP C DP A Início Plano Execução Encerra SP1 SRV SP1 SRV SP1 SRV SP1 SRV WIP WIP WIP WIP SP2 SRT SP2 SRT SP2 SRT SP2 SRT ... ... ... ... SP1 SRV SP2 SRT Nokia Internal Use Only
    25. 25. Contract Example Nokia Internal Use Only

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