IS EARNED VALUE + AGILE A MATCH MADE IN HEAVEN?
Increasing the Probability of Program Success requires by connecting the dots between EV and Agile Development.
Presented at
The Nexus of Agile Software Development and
Earned Value Management, OSD-PARCA,
February 19 – 20, 2015
Institute for Defense Analysis, Alexandria, VA
Probabilistic Schedule and Cost AnalysisGlen Alleman
An overview of the probabilistic risk analysis processes that can be applied to a program. Although it may not appear to be a “simple” overview, this material is the tip of the iceberg of this complex topic.
Just schedule analysis has been addressed in detail here. The cost aspects of forecasting and simulation must be addressed as well to complete the connections between schedule and cost.
Probabilistic cost will be surveyed here, but an in depth review is for a later time.
The resources listed here are the starting point for anyone interested in applying the principles developed in this briefing for integrating Agile with Earned Value Management projects
The Project Breathalyzer provides program managers with a quick look at software project health. They identify software projects that "should not be in the road." The Breathalyzer determines whether key program elements exist, without which the program is not likely to suceed.
Probabilistic Schedule and Cost AnalysisGlen Alleman
An overview of the probabilistic risk analysis processes that can be applied to a program. Although it may not appear to be a “simple” overview, this material is the tip of the iceberg of this complex topic.
Just schedule analysis has been addressed in detail here. The cost aspects of forecasting and simulation must be addressed as well to complete the connections between schedule and cost.
Probabilistic cost will be surveyed here, but an in depth review is for a later time.
The resources listed here are the starting point for anyone interested in applying the principles developed in this briefing for integrating Agile with Earned Value Management projects
The Project Breathalyzer provides program managers with a quick look at software project health. They identify software projects that "should not be in the road." The Breathalyzer determines whether key program elements exist, without which the program is not likely to suceed.
Starting with an EIA–748–C compliant Earned Value Management System, integrating an Agile Software Development Lifecycle (Agile) is straightforward when there is a Bright Line between the Performance Measurement Baseline (PMB) and the Sprints and Tasks of the Agile Software Development Process.
Every tool, process, and practice has a dark side. Knowing these is a Critical Success Factor to the integration of EVM and Agile at the desired Maturity Level.
Both Earned Value Management and Agile have Dark Sides. Things that are not talked about in public.
But when they are Integrated, each provides a solution for the problems of the other.
Assess current and desired Maturity for Agile and EVM is the starting point for integrating these two processes.
Introduction to monte-carlo analysis for software development - Troy Magennis...Troy Magennis
Forecasting and managing software development project risks & uncertainty. Monte-carlo analysis is the tool of choice for managing risk in many fields where risk is an inherent part of doing business. This paper examines how to use monte-carlo techniques to understand and leverage risk in Software Development projects and teams.
Integrated Agile with EVM -- Executive overviewGlen Alleman
Earned Value Management and Agile Software Development have much in common. The most important is progress to plan is measured by Physical Percent Complete with tangible evidence of working products at the end of planned period of performance.
For software intensive system of systems, agile development provides powerful tools for producing working software on frequent boundaries to gain needed customer feedback to assure the program is going in the right direction.
In Agile, Story Points are used as measures of effort. In Earned Value there is no concept of Story Points, rather Dollars and Hours are the measures of effort and duration for the work.
When using Agile on EVM projects, each unit of measure has value to the benefits produced through the integration, IF there is a proper segregation of these concepts.
Credible Plans, Integrated Reporting, and Control SystemsGlen Alleman
Project success starts with a credible plan for delivering the needed capabilities as planned. This starts with knowing what Done looks like in units of measure meaningful to the decision makers.
Understanding the five immutable principles to project success will help project managers deliver on time, on budget when talking projects of any size, in any domain
Forecasting cost and schedule performanceGlen Alleman
For credible decisions to be made, we need confidence intervals on all the numbers we use to make decisions.
These confidence intervals come from the underlying statistics and the related probabilities.
Statistical forecasting, using time series analysis of past performance, is mandatory for any credible discussion of project performance in the future.
Making Agile Development work in Government ContractingGlen Alleman
Before any of the current “agile” development
methods, Earned Value Management provided information
for planning and controlling complex projects by
measuring how much “value” was produced for a given
cost in a period of time. One shortcoming of an agile
development method is its inability to forecast the future
cost and schedule of the project beyond the use of “yesterdays
weather” metrics. These agile methods assume
the delivered value, “velocity” in the case of XP, is compared
with the estimated value – this is a simple comparison
between budget and actual cost resulting in a Cost
Variance.
SOLVING PROJECT ALLOCATION RESOURCE PROBLEMS WITH AEROSPACE ERPKevin West
Defence manufacturing is all about project manufacturing and project accounting. And that means enterprise resource planning (ERP) software for defence manufacturing must include robust functionality for project management and specifically project cost allocation.
The effectiveness of risk management depends on the people who set it up and coordinate the risk management process to do their job properly.
On many programs, risk management consists only of having a policy and oversight, not managing in the presence of uncertainty.
If we treat red flags as false alarms rather than early warnings of danger this incubates the threats to program success.
• Group think of dominate leaders often inhibits good thinking about risks.
Earned Value Management and Agile Software Development have much in common. Most important is progress to plan measured by Physical Percent Complete with tangible evidence of working products at the end of planned period of performance.
For Software Intensive System of Systems (SISoS), agile development provides the tool for producing working software on frequent intervals needed for customer feedback to assure the program is going in the right direction.
Earned Value Management Meets Big DataGlen Alleman
The Earned Value Management System (EVMS) maintains period–by–period data in its underlying databases. The contents of the Earned Value repository can be considered BIG DATA, characterized by three attributes – 1) Volume: Large amounts of data; 2) Variety: data comes from different sources, including traditional data bases, documents, and complex records; 3) Velocity: the content is continually being updated by absorbing other data collections, through previously archived data, and through streamed data from external sources.
With this time series information in the repository, analysis of trends, cost and schedule forecasts, and confidence levels of these performance estimates can be calculated using statistical analysis techniques enabled by the Autoregressive Integrated Moving Average (ARIMA) algorithm provided by the R programming system. ARIMA provides a statistically informed Estimate At Completion (EAC) and Estimate to Complete (ETC) to the program in ways not available using standard EVM calculations. Using ARIMA reveals underlying trends not available through standard EVM reporting calculations.
With ARIMA in place and additional data from risk, technical performance and the Work Breakdown Structure, Principal Component Analysis can be used to identify the drivers of unanticipated EAC.
Recent College of Performance Management Webinar on using Technical Performance to inform Earned Value Management. Six steps to building a credible Performance Measurement Baseline to connect the dots between all the elements of the program
Starting with an EIA–748–C compliant Earned Value Management System, integrating an Agile Software Development Lifecycle (Agile) is straightforward when there is a Bright Line between the Performance Measurement Baseline (PMB) and the Sprints and Tasks of the Agile Software Development Process.
Every tool, process, and practice has a dark side. Knowing these is a Critical Success Factor to the integration of EVM and Agile at the desired Maturity Level.
Both Earned Value Management and Agile have Dark Sides. Things that are not talked about in public.
But when they are Integrated, each provides a solution for the problems of the other.
Assess current and desired Maturity for Agile and EVM is the starting point for integrating these two processes.
Introduction to monte-carlo analysis for software development - Troy Magennis...Troy Magennis
Forecasting and managing software development project risks & uncertainty. Monte-carlo analysis is the tool of choice for managing risk in many fields where risk is an inherent part of doing business. This paper examines how to use monte-carlo techniques to understand and leverage risk in Software Development projects and teams.
Integrated Agile with EVM -- Executive overviewGlen Alleman
Earned Value Management and Agile Software Development have much in common. The most important is progress to plan is measured by Physical Percent Complete with tangible evidence of working products at the end of planned period of performance.
For software intensive system of systems, agile development provides powerful tools for producing working software on frequent boundaries to gain needed customer feedback to assure the program is going in the right direction.
In Agile, Story Points are used as measures of effort. In Earned Value there is no concept of Story Points, rather Dollars and Hours are the measures of effort and duration for the work.
When using Agile on EVM projects, each unit of measure has value to the benefits produced through the integration, IF there is a proper segregation of these concepts.
Credible Plans, Integrated Reporting, and Control SystemsGlen Alleman
Project success starts with a credible plan for delivering the needed capabilities as planned. This starts with knowing what Done looks like in units of measure meaningful to the decision makers.
Understanding the five immutable principles to project success will help project managers deliver on time, on budget when talking projects of any size, in any domain
Forecasting cost and schedule performanceGlen Alleman
For credible decisions to be made, we need confidence intervals on all the numbers we use to make decisions.
These confidence intervals come from the underlying statistics and the related probabilities.
Statistical forecasting, using time series analysis of past performance, is mandatory for any credible discussion of project performance in the future.
Making Agile Development work in Government ContractingGlen Alleman
Before any of the current “agile” development
methods, Earned Value Management provided information
for planning and controlling complex projects by
measuring how much “value” was produced for a given
cost in a period of time. One shortcoming of an agile
development method is its inability to forecast the future
cost and schedule of the project beyond the use of “yesterdays
weather” metrics. These agile methods assume
the delivered value, “velocity” in the case of XP, is compared
with the estimated value – this is a simple comparison
between budget and actual cost resulting in a Cost
Variance.
SOLVING PROJECT ALLOCATION RESOURCE PROBLEMS WITH AEROSPACE ERPKevin West
Defence manufacturing is all about project manufacturing and project accounting. And that means enterprise resource planning (ERP) software for defence manufacturing must include robust functionality for project management and specifically project cost allocation.
The effectiveness of risk management depends on the people who set it up and coordinate the risk management process to do their job properly.
On many programs, risk management consists only of having a policy and oversight, not managing in the presence of uncertainty.
If we treat red flags as false alarms rather than early warnings of danger this incubates the threats to program success.
• Group think of dominate leaders often inhibits good thinking about risks.
Earned Value Management and Agile Software Development have much in common. Most important is progress to plan measured by Physical Percent Complete with tangible evidence of working products at the end of planned period of performance.
For Software Intensive System of Systems (SISoS), agile development provides the tool for producing working software on frequent intervals needed for customer feedback to assure the program is going in the right direction.
Earned Value Management Meets Big DataGlen Alleman
The Earned Value Management System (EVMS) maintains period–by–period data in its underlying databases. The contents of the Earned Value repository can be considered BIG DATA, characterized by three attributes – 1) Volume: Large amounts of data; 2) Variety: data comes from different sources, including traditional data bases, documents, and complex records; 3) Velocity: the content is continually being updated by absorbing other data collections, through previously archived data, and through streamed data from external sources.
With this time series information in the repository, analysis of trends, cost and schedule forecasts, and confidence levels of these performance estimates can be calculated using statistical analysis techniques enabled by the Autoregressive Integrated Moving Average (ARIMA) algorithm provided by the R programming system. ARIMA provides a statistically informed Estimate At Completion (EAC) and Estimate to Complete (ETC) to the program in ways not available using standard EVM calculations. Using ARIMA reveals underlying trends not available through standard EVM reporting calculations.
With ARIMA in place and additional data from risk, technical performance and the Work Breakdown Structure, Principal Component Analysis can be used to identify the drivers of unanticipated EAC.
Recent College of Performance Management Webinar on using Technical Performance to inform Earned Value Management. Six steps to building a credible Performance Measurement Baseline to connect the dots between all the elements of the program
Managing in the presence of uncertaintyGlen Alleman
Uncertainty is the source of risk. Uncertainty comes in two types, aleatory and epistemic. It is important to understand both and deal with both in distinct ways, in order to produce a credible risk handling strategy.
Defining business value in units meaningful to the business and connecting these to the measures of performance for the project that produce this business value.
There are four major questions that need answers when applying agile software development to DOD development programs
1. How can Agile Development methods increase the Probability of Program Success (PoPS) on Earned Value programs?
2. How can Agile development be integrated with the FAR / DFAR and OMB mandates for program performance measures using Earned Value?
3. What are the “touch” points (or possible collision points) between Agile and EIA-748-C?
4. What are the measures of success for Agile methods in the context of EIA-748-C?
Agile development methods increase the Probability of Program Success. Agile can be integrated with the FAR / DFAR and OMB mandates for program performance measures using Earned Value.
How should we estimates agile projects (CAST)Glen Alleman
“Why do so many big projects overspend and
overrun? They’re managed as if they were merely
complicated when in fact they are complex. They’re planned as if everything was known at the start when in fact they involve high levels of uncertainty and risk.” ‒ Architecting Systems: Concepts, Principles and Practice, Hillary Sillitto
How To Build A Credible Performance Measurement Baselineguest9da059
IPM 2009 Conference briefing. The Performance Measurement Baseline is the project controls vehicle that connects Cost, Schedule, and Technical Performance in a single database.
How To Build A Credible Performance Measurement BaselineGlen Alleman
IPM 2009 presentation. The Performance Measurement Baseline is the collection of the Cost, Schedule, and Technical Performance Measures for the program - used to make management decisions.
Agile Project Management Meets Earned Value ManagementGlen Alleman
Earned Value Management (EV) provides information for planning and controlling complex projects including software development. However, EV’s emphasis on retrospective data and the concept of driving in the rearview mirror is its primary shortcoming. Agile software development systems provide mechanisms to adapt to changing requirements in low ceremony environments. The primary shortcoming of Agile development is its inability to participate in government and commercial development environments where requirements, staffing, and funding are managed informal ways. Instead of requiring the high ceremony environment to abandon its methods, combining Agile development activities with earned value management is the approach used in this experience report. The principle management concern in every environment, high or low ceremony, is how much value is being delivered for the invested funds? The answer to this question is the domain of the metrics of EV. Merging EV with Agile development processes creates new synergies by leveraging the best of both processes in a variety of domains.
Five Immutable Principles of Project of Digital Transformation SuccessGlen Alleman
Successful Digital Transformation projects are fraught with technical, cost, and schedule risks.
These Five Principles of Project Success have been shown to increase the Probability of Project Success (PoPS).
DevOps, SAFe and critical information bearers: A practical approach for plann...Bosnia Agile
A lot of enterprises have successfully adopted agile practices and are now challenged by the questions: How do we scale it? How will we know what is going on in development, product management and deployment? How do we know that we develop according to business priorities? How do we make the quicker development cycles lead to faster market response and more frequent releases? To answer these some companies have turned to a DevOps approach and use concepts like the Scaled Agile Framework (SAFe). Join us in this session to look at the critical information bearers in such a setup and how information from business planning, portfolio management, program management and release planning are connected.
Building a Credible Performance Measurement BaselineGlen Alleman
Establishing a credible Performance Measurement Baseline, with a risk adjusted Integrated Master Plan and Integrated Master Schedule, starts with the WBS and connects Technical Measures of progress to Earned Value
WBS Compliance Challenges for Agile ERP ProjectsGlen Alleman
Agility implies a systematic vision of the outcome - an intelligent or ingenium that makes it possible to connect seperate entities and their outcomes in a rapid and suitable manner
Planning projects usually starts with tasks and milestones. The planner gathers this information from the participants – customers, engineers, subject matter experts. This information is usually arranged in the form of activities and milestones. PMBOK defines “project time management” in this manner. The activities are then sequenced according to the projects needs and mandatory dependencies.
Increasing the Probability of Project SuccessGlen Alleman
Risk Management is essential for development and production programs. Information about key cost, performance and schedule attributes are often uncertain or unknown until late in the program.
Risk issues that can be identified early in the program, which may potentially impact the program, termed Known Unknowns, can be alleviated with good risk management. -- Effective Risk Management 2nd Edition, Page 1, Edmund Conrow, American Institute of Aeronautics and Astronautics, 2003
Cost and schedule growth for complex projects is created when unrealistic technical performance expectations, unrealistic cost and schedule estimates, inadequate risk assessments, unanticipated technical issues, and poorly performed and ineffective risk management, contribute to project technical and programmatic shortfalls
From Principles to Strategies for Systems EngineeringGlen Alleman
From Principles to Strategies How to apply Principles, Practices, and Processes of Systems Engineering to solve complex technical, operational,
and organizational problems
Capabilities‒Based Planning the capabilities needed to accomplish a mission or fulfill a business strategy
Only when capabilities are defined can we start with requirements elicitation
Starting with the development of a Rough Order of Magnitude (ROM) estimate of work and duration, creating the Product Roadmap and Release Plan, the Product and Sprint Backlogs, executing and statusing the Sprint, and informing the Earned Value Management Systems, using Physical Percent Complete of progress to plan.
Program Management Office Lean Software Development and Six SigmaGlen Alleman
Successfully combining a PMO, Agile, and Lean / 6 starts with understanding what benefit each paradigm brings to the table. Architecting a solution for the enterprise requires assembling a “Systems” with processes, people, and principles – all sharing the goal of business improvement.
This resource document describes the Program Governance Road map for product development, deployment, and sustainment of products and services in compliance with CMS guidance, ITIL IT management, CMMI best practices, and other guidance to assure high quality software is deployed for sustained operational success in mission critical domains.
JMeter webinar - integration with InfluxDB and GrafanaRTTS
Watch this recorded webinar about real-time monitoring of application performance. See how to integrate Apache JMeter, the open-source leader in performance testing, with InfluxDB, the open-source time-series database, and Grafana, the open-source analytics and visualization application.
In this webinar, we will review the benefits of leveraging InfluxDB and Grafana when executing load tests and demonstrate how these tools are used to visualize performance metrics.
Length: 30 minutes
Session Overview
-------------------------------------------
During this webinar, we will cover the following topics while demonstrating the integrations of JMeter, InfluxDB and Grafana:
- What out-of-the-box solutions are available for real-time monitoring JMeter tests?
- What are the benefits of integrating InfluxDB and Grafana into the load testing stack?
- Which features are provided by Grafana?
- Demonstration of InfluxDB and Grafana using a practice web application
To view the webinar recording, go to:
https://www.rttsweb.com/jmeter-integration-webinar
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Rise in volumes of AI-powered cyberattacks
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Cyberattack types and targets
Vulnerability exploit attempts on CVEs
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In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
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Systemic attacks in the Middle East
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This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
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https://arxiv.org/abs/2306.08302
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UI automation Sample
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Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
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Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
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Leading Change strategies and insights for effective change management pdf 1.pdf
Ev+agile=success
1. IS EARNED VALUE + AGILE
A MATCH MADE IN HEAVEN?
Increasing the Probability of Program Success requires
connecting the dots between EV and Agile Development.
1
Presented at
The Nexus of Agile Software Development and
Earned Value Management, OSD-PARCA,
February 19 – 20, 2015
Institute for Defense Analysis, Alexandria, VA
2. Today’s Briefing
2
¨ How can Agile Development methods increase the
Probability of Program Success (PoPS) on Earned
Value programs?
¨ How can Agile development be integrated with the
FAR / DFAR and OMB mandates for program
performance measures using Earned Value?
¨ What are the “touch” points (or possible collision
points) between Agile and EIA-748-C?
¨ What are the measures of success for Agile
methods in the context of EIA-748-C?
3. 3
Let’s Start With A Critical Assumption:
Project Controls are needed for
Project Success
4. 4
† Project Management the Agile Way, John C, Goodpasture,J. Ross,2010
Agile Software in the Context of the
Department of Defense
6. The Foundation For
Earned Value Management …
6
¨ EIA-748-C, page 1, defines the top level activities
for a successful EV based project.
¨ We need to “connect the dots” between these and
agile development.
8. What Do We Mean When We Say Agile?
† Dr. Ashton Carter, Under Secretary of Defense for Acquisition, Technology and Logistics, Sep/Oct, 2010 Defense AT&L
8
9. Is The Department of Defense Ready
To Embrace Agile Methodologies?
9
It seems so…
11. Starting to “Connect the Dots”† ‡
11
Agile Point of View DoD Program Point of View
Requirements evolve Scope agreed to and maintained
Simple designs are best
Architecture thought out and
maintained
Teams are self organizing
Organizational structure establishes
boundaries
Delivery teams establish
best prescriptive processes
High level guidance organizes work
Development teams know
what to do
Process professionals define the
boundaries
Agile team work in an
iterative manner
Product Development Lifecycle is serial
over broader periods of time
† Abstracted from “Reality over Rhetoric,” Scott Ambler IBM Developer Works
‡ John Goodpastuer, Project Management the Agile Way
12. Let’s Start With 3 Simple Connections
12
Earned Value Management Agile+
1
Measures of progress in units of
“physical percent complete.”
Each iteration produces 100%
working product.
2
Forecast of future performance
provided by past performance.
Forecast performance in units
of product(s) produced.
3
A systems approach to the
development of products and
connecting Cost, Schedule, and
Technical Performance.
Increasing fidelity of product
and problem understanding
takes place after each iteration
and release.
13. 13
Epics are large user stories, ones too big to implement in a single iteration and
need to be disaggregated into smaller user stories at some point †
All these Stories work together inside a Project or
Program to produce the needed Capabilities
according to the Product Road Map
† Agile Modeling, Scott Ambler, User Stories: An Agile Introduction
14. 14
A User Story contains one or more Features
The User Story is completed in a single
iteration, and is
Each Feature is then broken into Tasks
and these Tasks live in Work Packages.
ü Independent of other User Stories
ü Negotiable during the planning stage
ü Has measureable Valuable
ü Small relative to the overall project effort
ü Testable with pre-defined success criteria
16. Define what deliverables are needed at the end of a phase,
rolling wave, program event to fulfill the Technical
Performance Measures, Performance Assessment Criteria, or
assess the increasing maturity of the final deliverable,
measured in units of Physical Percent Complete - BCWP.
Connecting Agile terminology with
DoD acquisition terminology
16
Events / Milestones define the
availability of a capability
at this point in the
schedule
Accomplishments define the
entry conditions for each
Event or Milestone
Criteria are the
exit conditions for
each Work Package
Work
Package
Work
Package
Work
Package
Work
Package
Work
Package
Work
Package
Work
Package
Work
package
Define what features are needed
to deliver value to the customer
at the end of the release in units
of measure meaningful to the
customer.
Minimal
Marketable
Features
inside of
User Stories
inside of an
Epic
17. The WBS as an Agile Paradigm
17
¨ The top levels in the project
plan are Epics and user
stories.
¨ The project scope is
described by Epics.
¨ The project budget starts
on this Epics level.
¨ Further detailing on the
User Story level and the
sprint task levels.
¨ Full traceability top down
and bottom up on cost and
progress.
18. The Starting Point for “Connecting the
Dots” is the Rolling Wave
18
¨ Tune the Rolling Waves to the rhythm of the project.
¨ These cycles are below the NDAA Section 804
suggestions.
¨ EV allows adjustments to un-started work.
X3_1158_043_F
Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Mon10
Time Now
WP #4
Plan and Input
Next RW Period
WP #5
WP #6
WP #7
WP #9
WP #8
Minimum of 1 month
advance detail planning
Detail planning of next
rolling wave
30 Days
RW #3RW #3
Rolling Wave Period #2
Rolling Wave Period #1
WP #2
WP #3
19. Assigning Deliverables to Iterations
from the WBS
19
WBS
Iteration 1 Iteration 2 Iteration 3 … Iteration n Close Out
§ Deliverables
§ Tasks
§ Tasks
§ Deliverables
§ Deliverables
§ Deliverables
§ Tasks
§ Tasks
CA CoDR
…
PDR
WBS basis of deliverables Backlog, per MIL-STD-881C,
decomposed into Release Backlog, then into Iteration Backlog for
delivery by Stories and Tasks.
21. 11 (EVM) Guidelines for the Success of
any Project
21
¨ The 32 EVM Guidelines are all designed to deliver
value.
¨ These 11 are the basis of all good program
management.
22. Here’s Those Connections
22
GL EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self organizing teams
5 Integrate WBS and OBS Self organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products & Milestones Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances EV + Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features, adjust velocity
28 Incorporate changes Replan missed features, adjust velocity
23. Provide managers with
information at a
practical level of
summarization
Relate time phased
budgets to specific
contract tasks
Enable statistical
estimation of
completion costs
Track and
monitor discrete
project metrics
Communicate
project status
Provide
quantitative data
for decision making
Provide a
documented project
performance trail
Alert project
managers to potential
schedule and cost risk
23
24. 11 EVM GL’s and 12 Agile Principles
24
Connecting Agile with Earned Value
Management is actually obvious once we
get over the social aspects and focus on
the Program Planning and Controls
aspects.
WBS
OBS
WBS+OBS
IMS
Productsand
Milestones
PMB
ACWP
Variances
Sumof
Variances
Corrective
Action
RecordChanges
Early and Continuous Delivery ✔ ✔ ✔
Welcome Change ✔ ✔ ✔ ✔
Deliver working Software ✔ ✔ ✔
Business and DEV work together ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Motivated individuals ✔
Sustainable development ✔ ✔ ✔ ✔ ✔
Working SW measure of progress ✔ ✔
25. Our First Conclusion
25
¨ Epics, Stories, Tasks, and the Work Packages executing the Tasks
are the same Notion in Agile and DoD Program Management.
¨ Earned Value earns the budget for the work that produces the
business value. They are different but related measures of
progress to plan.
¨ Both are needed to increase the Probability of Program Success
(PoPS). We need to know Physical Percent Complete.
¨ Rolling Waves provide the mechanism to deal with emergence
within the rules of the Performance Measurement Baseline (PMB).
¨ Agile focuses on code development.
¨ Earned Value focuses on the efficacy of the money spent to
produce that Business Value.
26. Some Killer Issues, with Possible
Approaches
26
Big Question A Possible Answer
How do we deal with
emerging requirements?
Baseline the needed capabilities, and let the
technical and operational requirements emerge. This
means agile software programs actually do need
baselined capabilities. Then partition the
requirements into rolling waves
What do we do with
unfinished work at the
end of an iteration?
Replanning is the first approach, into future planning
packages.
The very basis of EVM is
an end-to-end budget
baseline.
Rolling wave, planning packages, in smaller chunks is
the start. But more thought is needed on how to
stabilize the baseline.
What does DCMA thinks
about all this fluidity?
Good question, but software development programs
are poster child's for success now, we need
something better
27. 27
He who rejects
change is the
architect of decay.
The only human
institution which
rejects progress is
the cemetery.
‒ Former Prime
Minister of
England,
Harold Wilson
29. Using the Earned Value Management Intent
Guide (EVMIG), here’s how to connect the dots
at the next level down.
The 11 criteria of Earned Value connected with
the 12 principles of Agile.
Putting These Ideas To Work29
30. GL 1: Define Authorized Work
Elements
30
Define the authorized work elements for the program. A work breakdown structure
(WBS), tailored for effective internal management control, is commonly used in this process.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Work Breakdown Structure (WBS). § Road Map & Release Plan consisting of
Capabilities, Product Backlog & Iteration
Backlog.
§ WBS dictionary (may or may not be used, but
a method to reconcile the statement of work
to the WBS structure must be demonstrated).
§ WBS dictionary: agile user stories are
deliverables that you can measure “done” for,
therefore user stories satisfy wbs dictionary.
31. GL 2: Identify Program
Organizational Structure
Identify the program organizational structure, including the major subcontractors responsible for
accomplishing the authorized work, and define the organizational elements in which work will be
planned and controlled.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Organization Breakdown Structure (OBS). § CAM just builds a team as usual, but the team
needs to be persistent, and not
interchangeable parts.
§ OBS intersections with the WBS. § Team hierarchy definition with resources
associated with their sub–teams.
§ Done at the level of granularity to support
the basis of estimate (BOE).
§ Persistent teams are needed to apply
throughput benchmarks to product backlogs
to validate plans.
31
32. GL 3: Integrate WBS and OBS
Provide for integration of the program work breakdown structure and the program organizational
structure in a manner that permits cost and schedule performance measurement by elements of
either or both structures as needed.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Control accounts. § Evidence that the CA meets the 90% discrete
work rule.
§ Defend schedule & cost performance at the
CA level?
§ Agile CA = one release.
§ Actuals captured at the story level.
§ Responsibility Assignment Matrix (RAM). § Done at too high a level for the SW
development approach to make a difference.
§ Contract Performance Reports (CPRs), if
applicable.
§ Given an objective of X stories in iteration Y,
completed stories are earned; all unearned
return to backlog and a new ETC is
developed from the benchmarks & backlog.
32
33. GL 6: Schedule the Work
Schedule the authorized work in a manner which describes the sequence of work and identifies
significant task interdependencies required to meet the requirements of the program.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Integrated network schedules including master,
intermediate (if any), and detailed schedules.
§ CAM’s agile roadmap becomes the auditable
intermediate schedule demonstrating
significant accomplishments (SA).
§ MRP or ERP schedules, or planned order
reports.
§ Each task in IMS has associated resources.
§ Control account plans (may be separate plans
or detail schedules).
§ CAM creates schedules compliant to DCMA
14 point assessment.
§ Work authorization documents. § Nothing different.
33
34. GL 7: Identify Products and Milestones
Identify physical products, milestones, technical performance goals, or other indicators that will be
used to measure progress.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Integrated schedules including master,
intermediate (if any), and detailed schedules
that identify contract milestones and key
events.
§ Agile dev performance reporting follows the
approved program system description
§ Apportioned technical performance milestones
to reduce risk & roll up intermediate technical
performance.
§ MRP or ERP production planned order reports. § Not relevant to sw development.
§ Control account plans (may be separate plans
or detail schedules)
§ Not relevant to sw development because we
are reporting tasks as physical % complete,
which will automatically roll up.
34
35. GL 8: Set Time Phased Budget
Establish and maintain a time–phased budget baseline, at the control account level, against which
program performance can be measured. Initial budgets established for performance measurement
will be based on either internal management goals or the external customer negotiated target
cost including estimates for authorized but undefinitized work.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Control account plans. § Time phased budget created for the current iteration(s) and
future work.
§ Summary level planning
packages.
§ Agile summary level planning documented in road map.
Comprises capabilities, features and stories
§ Agile planning packages driven by persistent teams with
proven benchmarks.
§ Performance Measurement
baseline.
§ Is there a target threshold for future work as described in a
PMB? Within 10% OTB?
§ Undistributed budget logs. § Does this have anything to do with SW dev approach?
§ Notification to the customer of
an over–target baseline.
§ Does this have anything to do with SW dev approach?
§ Work authorization document. § Does this have anything to do with sw dev approach?
35
36. GL 16: Record Direct Costs
Record direct costs in a manner consistent with the budgets in a formal system controlled by the
general books of account.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Reconciliation of project costs with the
accounting system.
§ CAM would follow program direction on
these.
§ These are not impacted by sw dev approach
§ Actual costs are reported at the control
account level at a minimum.
§ Not impacted by SW development
approach.
§ Reconciliation of subcontract reported actual
costs to subcontract payments.
§ Not impacted by SW development
approach.
§ Internal and external performance reports for
subcontractors.
§ Not impacted by SW development
approach.
§ Subcontractor control account plans, when
utilized.
§ Not impacted by SW development
approach.
36
37. GL 23: Determine Variances
Identify, at least monthly, the significant differences between both planned and actual schedule
performance and planned and actual cost performance, and provide the reasons for the variances
in the detail needed by program management.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Variance analyses (budget based schedule
variances and cost variances).
§ Can track & report variances per the
approved program system description
§ Management action plans. § Actionable recovery plans per issue.
§ Updated schedule task completion and cost–
at–completion forecasts.
§ Scrum Agile has a POD and Plan for
Iteration.
§ CAM’s monthly EAC reporting follows the
approved program system description
§ Project schedules and schedule analysis
outputs.
§ PM tracks the dynamic backlog, which will go
up and down based on sponsor feedback
37
38. GL 25: Summarize Variances
Summarize the data elements and associated variances through the program organization and/or
work breakdown structure to support management needs and any customer reporting specified in
the project.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Variance analyses. § There is nothing in Agile’s approach to SW development
that precludes reporting variances at the WP level.
§ Agile is more dynamic than EVM so variances are less
the issue than the evolving baseline, as approved in
governance. The sponsor will want to track accumulating
business value and variances to total product needs.
§ Schedule and cost performance
reports.
§ Similar – but measures of performance not usually in
dollars
§ Management action plans. § Similar – but less formal. Collaborative discussion of
what actions to take include the customer.
§ Updated schedule and cost
forecasts.
§ Similar – but less formal. Planning processes include the
customer.
38
39. GL 26: Implement Management Plan
Implement managerial action taken as the result of earned value information.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ To–Complete Performance
Index (TCPI).
§ TCPI = Work Remaining / Cost Remaining ((BAC – BCWPcum) /
(EAC – ACWPcum)). In Agile, work remaining is the product
backlog. Backlog is BAC – BCWP.
§ Independent completion
estimates.
§ No longer used in 2010
§ Risk management data
and similar metrics.
§ Qualitative Risk Burn–down Chart (risk rating)
§ Management action plans
and review briefings.
§ Agile approach called Commitment Based Planning – where the
SCRUM team makes and meets its time phase BCWS
commitments.
§ Any team, when behind, gives voice to the customer when
evaluating/reweighting the triple constraint.
§ Variance analyses. § This is an issue of cost mgmt and system description would define
when and where team members would bill
39
40. GL 28: Incorporate Changes (1)
Incorporate authorized changes in a timely manner, recording the effects of such changes in the
budgets and schedules.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Contractual change documents. § Bug reports, new user stories, but not necessarily
cost sized.
§ User stories above baseline are tracked as new
scope (with a valid BOE) and require BCWS
§ Change control logs (management reserve,
undistributed budget, performance
measurement baseline, and contract
budget base).
§ New or materially altered features or stories are
changes.
§ Control account/work package/planning
package plans.
§ Product and iteration backlogs are frozen during
the development period
40
41. GL 28: Incorporate Changes (2)
Incorporate authorized changes in a timely manner, recording the effects of such changes in the
budgets and schedules.
EVMIG Objective Evidence Agile Objective Evidence for EV
§ Master schedules, intermediate schedules
(if any), and detailed schedules.
§ Iterations and evolutionary planning at the
detailed levels merges with the end to end
planning for agile.
§ Statement of work, WBS, and WBS
dictionary.
§ Customer owner and Planning processes identify
requires work and its description.
§ Work authorization documents. § Planning sessions, authorize a set of Stories to be
developed during the iteration.
§ Management reports (contract
performance reports or other applicable
management reports).
§ Big Visible Charts, “sticky notes” display
progress to plan for the agile team.
41