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Agile fix cost_pecha_kucha

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Agile fix cost_pecha_kucha

  1. 1. GlobalLogic Agile Community Event, Noida Leveraging Agile in 3rd Nov, 2011 Fixed-Cost Engagements Pecha Kucha Presentation Viresh Suri, CSM Project Manager, GlobalLogic viresh.suri@gmail.com
  2. 2. Time & Material Engagement Vendor Partner
  3. 3. Fixed Cost Engagement Vendor Partner
  4. 4. Does Agile mean Change? Are changes Changes are welcome everytime ? Agile =
  5. 5. Does Agile Collaboration with Partner help? Iteration Demo, Collaboration gives too many opportunities to Partner for requesting changes ?
  6. 6. How do we manage Risks ? • Time/Effort estimation go wrong • Unexpected Costs • Technology challenges • Key Resources leave
  7. 7. And if the contract is Fixed-Cost …. Vendor Partner
  8. 8. The Truth about Changing Requirements • Changing requirements does not increase work scope
  9. 9. The Truth about Changing Requirements• Requirements don’t change in the Middle of the Iteration
  10. 10. Taking Agile to Fixed Cost = Cost Effort EFFORT will NOT CHANGE
  11. 11. Taking Agile to Fixed Cost• Have a Minimum Marketable Release (MMR) Product > MMR Product < MMR
  12. 12. Taking Agile to Fixed Cost• The best way to control costs is to have a Highly Productive Team• Do NOT compromise on : – Test Automation – Unit Testing – Reviews These will help team achieve long term productivity benefits, esp. in larger projects
  13. 13. Taking Agile to Fixed Cost• Maintain status visibility through Burn-Down chart, other metrics
  14. 14. Taking Agile to Fixed Cost• Risk Management – Add buffers to Estimates where needed
  15. 15. Taking Agile to Fixed Cost• Risk Management – Add buffers to Velocities when predicting Timelines
  16. 16. Fixed Cost Contracting Optimistic Time Prediction : Assuming High Velocity of 20 points, Project will be completed in 6 iterations Pessimistic Time Prediction : Assuming Low Velocity of 15 points, Project will be completed in 8 iterations
  17. 17. Fixed Cost Contracting
  18. 18. Fixed Cost Contracting
  19. 19. What may not align well in Fixed Cost – Developer Productivity may be compromised – Beneficial Change avoided e.g. some change to technology, functionality – Business change may be prevented – Often vendors not capable of doing cost estimates in the beginning
  20. 20. Thank You !viresh.suri@gmail.com

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