How to Use EVM to Maintain Quality in an Agile Environment 1
Agenda Key Terms and Calculations Earned Value Management System Supporting Systems Practical Example Earned Value Management in an Agile Environment Relationship between Earned Value Management and Quality in an Agile Environment Conclusion 2
Key Terms and Calculations Story Point: Story points are a measure of relative size and complexity, assigned by the project team; they are unit-less, meaning as a scale, they are only valuable to compare against each other within the same team Product Backlog: The sum of story points to be completed during the project. Iteration: A time-boxed interval of 2 to 4 weeks during which the team transforms a customer-prioritized subset of the Product Backlog items into working software Baseline Velocity (BL Velocity) Per Iteration: The estimated # of points a team expects to deliver for each iteration. 3
Key Terms and Calculations (cont.) Budgeted Cost Per Point (BCPP): The estimated cost of an iteration divided by the Baseline Velocity Total Planned Iterations: The Product Backlog divided by Baseline Velocity Baseline Completion Date: The planned date of project completion; in simplest terms, determined by multiplying total planned iterations X length of an iteration Budget at Completion (BAC): Total budget allocated to the project; can be estimated as Product Backlog X BCPP Planned Value Per Iteration (PVI): The result of multiplying the number of story points planned in an iteration X BCPP Planned Value Cumulative (PVC): The sum of PVIs over time 4
Key Terms and Calculations (cont.) Actual cost of iteration (ACI): Actual cost for a given iteration Actual cost cumulative (ACC): Sum of ACI s over time Actual cost per point: ACI divided by # of points completed in an iteration Earned Value (Cumulative) (EV): The dollar value of work performed; calculated as percent complete times the total budgeted cost at completion (BAC) Cost Variance (CV) (CV=EV - ACI): The difference between Earned Value and Actual Cost of the iteration. Schedule Variance (SV) (SV=EV-PVI): The difference between Earned Value and Actual Planned Value of the iteration. 5
Earned Value Management System [EVMS] Supporting Systems Depending on Program size and complexity, there can be a suite of products used to support the EVMS Supporting systems req d will be dictated by the agreement reached between the PM and customer: Consensus on what data will be tracked and reported for the purpose of determining Earned Value Consensus on what constitutes the project backlog in terms of Story Points and Features Consensus on Sprint lengths, est. number of Story Points per sprint, and total number of sprints to be conducted during the contract period When these details have been established, systems supporting the EVMS can be configured to collect the necessary data and provide the required reports 6
EVMS Supporting Systems (cont.) 7
Practical Example EVM in Agile Environ. Sample Project Total Prod Bklog = 250 Project Planning Iteration No. 1 2 3 4 Iteration End Date 10/21/12 11/4/2012 11/18/12 12/2/12 Remaining Planned backlog 225 200 175 150 BL Velocity (pts per sprint) 25 25 25 25 Cumulative # of story pts planned 25 50 75 100 Total # of planned iterations 10 10 10 10 BL Completion Date 2/24/13 2/24/13 2/24/13 2/24/13 Budgeted Cost Per Point (BCPP) $1,600 $1,600 $1,600 $1,600 Budget at Completion (BAC) $360,000 $320,000 $280,000 $240,000 Planned % Complete (Cumulative) 10% 20% 30% 40% Planned Value per Iteration (PVI) $40,000 $40,000 $40,000 $40,000 Planned Value Cumulative (PVC) $40,000 $80,000 $120,000 $160,000 Project Actuals Points Completed 25 35 20 25 Actual product backlog 225 190 170 145 Actual cost of iteration (ACI) $40,000 $52,000 $32,000 $43,000 Actual cost cumulative (ACC) $40,000 $92,000 $124,000 $167,000 Actual cost per point (ACPP) $1,600 $1,486 $1,600 $1,720 Earned Value (EVI) $40,000 $56,000 $32,000 $40,000 Cost variance (CV = EVI - ACI) $0 $4,000 $0 -$3,000 Sched variance (SV = EVI - PVI) $0 $16,000 -$8,000 $0 CPI = BCPP/ACPP 1.00 1.08 1.00 0.93 SPI = EVI/PVI 1.00 1.40 0.80 1.00 8
The Quality Link Why Agile Works Early discovery leads to better risk mitigation Iterations provoke early and regular process improvement Promotes higher developer confidence Better progress tracking and predictability Higher Quality Code w/ Fewer Defects Product Matching the Customer s Desires 9
Agile Works, Getting Buy-In is Key Staff accustomed to traditional methodologies may not be able to make the shift Customer buy-in in essential Agile can t succeed w/o it Agile 10
Conclusion EVM Provides a tool traditional software development customers may be familiar and comfortable with Agile metrics promote project visibility, tracking, and reporting, and EVM enhances it Agile software development works Early and Frequent Inspection Yield the Best Results Use EVM to help your traditional software customer bridge the gap, adopt Agile, and watch their software quality improve! 11
Contact Info Jonathan Powell, CGFM, PMP, Security+ Senior Program Manager jopowell@caci.com 703-258-4735 12