Cost Controls Flashcards
How satisfied is the Project Team and Stakeholders? Metrics
Motivation
Stakeholders Happiness
Is the Quality aligned with the expectations? Metrics
Defect Count
Severity of fault
Are we increasing the work delivered? Metrics
Forecast vs Actual velocity
Sprint Burndown
Release Burnup
Is our effort aligned with the Business? Metrics
Velocity vs BVE
Are we constantly improving own Team Maturity? Metrics
Ratio of successful sprints
Focus Factor
Estimation Accuracy
Are we OK in terms of time and Budget? Metrics
Agile EVM
AC
Actual Cost
PV
Planned Value
EV
Earned Value
EAC
Estimate at complete
CPI
Cost Performance Index
SPI
Schedule Performance Index
EPC
Expected % Complete
APC
Actual % Complete
VAC
Variance at Completion
Planned Value Equation
PV = Expected % Complete * BAC
Earned Value Equation
EV = Actual % Complete * BAC
Cost Performance Index Equation
CPI = Earned Value / Actual Value
Schedule Performance Index Equation
SPI = Earned Value / Planned Value
Actual Percent Complete Equation
Story Points Completed / Total Story Points Planned
Earned Value Equation
Number of Sprints Completed / Total Sprints Planned
BAC
Budget at completion
CPI Meaning
CPI > 1 = Under budget
CPI = 1 = On Budget
CPI < 1 = Over Budget
SPI Meaning
SPI > 1 = Ahead of Schedule
SPI = 1 = On Schedule
SPI < 1 = Behind Schedule
ETC: Estimate to Complete Formula
ETC = (1/CPI)*(BAC-EV) ETC = (1/0.83)*(250,000-75,000) = 210,000
EAC: Estimate at Completion
EAC = ETC + AC EAC = 210,000 + 90,000 = 300,000
Metric: Team Member Happiness/Motivation
Parameter: The Happiness of the Scrum Team Members.
Unit of Measurement: Happiness is commonly measured on a linear scale that ranges from 1-5, where 1 is very unhappy and 5 is very happy.
Metric: Stakeholders Happiness
Parameter: The Happiness of the Scrum Team Members
Unit of Measurement: Happiness is commonly measured on a linear scale that ranges from 1-5, where 1 is very unhappy and 5 is very happy.
Metric: Ratio of Successful Sprints
Parameter: The degree to which the team is able to meet their commitment.
Unit of Measurement: We measure the Ratio of Successful Sprints as a percentage by dividing the number of successful Sprints by the total amount of Sprints.
Metric: Focus Factor
Parameter: The percentage of the team’s effort that results in finished stories.
Unit of Measurement: We measure the focus factor as a percentage by dividing the Velocity by the team’s Work Capacity.
Metric: Estimation Accuracy
Parameter: The ability of teams to accurately estimate their work.
Unit of Measurement: We measure the Estimation Accuracy as a percentage by dividing the estimated amount of effort by the actual amount of effort.
Metric: Reliability
Parameter: The ability of teams to meet the Story Points they committed to for a Sprint.
Unit of Measurement: The Reliability is measured as a percentage by dividing the amount of committed Story Points by the amount of earned Story Points.
Metric: Relative Return On Investment (Relative ROI)
Parameter: The value of the completed work compared to the invested costs, here the amount of Story Points.
Unit of Measurement: A amount in Value points per Story Point.
Metric: Total Business Value Earned
Parameter: The Total Business Value Earned is an accumulation of all the Business Value that was earned during a sprint.
Unit of Measurement: An amount in Value Points.
Metric: End-to-End metric
Parameter: The amount of effort spent on specific components of the software product
.
Unit of Measurement: An amount in Value Points.
Metric: Velocity
Parameter: The velocity is a relative measure of the amount of work delivered during a sprint.
Unit of Measurement: We measure the Velocity in Story Points.
Metric: Process Efficiency
Parameter: The Process Efficiency shows how efficient the team members spend their time working on committed stories.
Unit of Measurement: The Process Efficiency is measured as a percentage by dividing the actual work time by the calendar time.
Metric: Sprint Burndown
Parameter: The Sprint Burndown shows how much work the team has left versus the ideal amount of work remaining.
Unit of Measurement: We measure the Burndown in Story Points (or hours). Every day, the remaining amount of Story Points is updated.
Metric: Release Burnup
Parameter: The Release Burnup show how much a team has left to complete a release versus the ideal amount of work remaining.
Unit of Measurement: We measure the Release Burnup in Story Points (or hours). At the end of every Sprint the Release Burnup is updated.
Metric: Defect Count
Parameter: The amount of defects.
Unit of Measurement: We calculate the amount of identified bugs in the Backlog.
Metric: Severity of Faults
Parameter: We measure the severity of the fixed defects.
Unit of Measurement: We divide the faults into three different categories: Minor faults, major faults and critical faults. The Scrum team itself can categorize these faults.
- Are we under control in terms of time and Budget?
EV metrics provide a measure of cost productivity which does not exist in Agile.
CPI measures how much was developed for the money spent while Velocity only measures how much was developed. Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development.
The approach for the Agile EVM will maintain the simplicity of the Agile process. In order to generate the performance metrics we need just a few pieces of data :
- Total number of story points planned for this release
- Total number of planned development weeks
- Total budget for the release
- Number of development weeks elapsed to date
- Number of story points completed to date
- Total budget spent to date
