Value-Driven Delivery Flashcards
Present Value
Future Value/ (1 + i)^n
i = interest rate
n = number of years
450000/(1.06)^3
for 6% interest rate
Future Value
Known Value * (1 + i)^n
Known Value - what will it take to complete the project
i = interest rate
n = number of years
Net Present Value
Present value of a revenue stream over a period of time
Sum of cash flows / (1 + i)^n
Internal Rate of Return (IRR)
NPV of the project >= NPV of the benefits of the project
Cost Varience
Earned Value - Actual Cost
Earned Value
Earned Value is the amount of the task that is actually completed.
%Completed * Project total budget
Schedule Varience
Earned Value - Planned Value
Cost Performance Index (CPI)
Earned Value/ Actual Value
EV / AV
Schedule Performance Index (SPI)
Earned Value/ Planned Value
EV / PV
Estimate AT completion (EAC)
Budget at completion/ Cost Performance Index
EAC = BAC/ CPI
Estimate TO completion
Estimate at completion - Actual cost
To-Complete Performance Index
Effeciency needed to meet Budget At Completion (BAC)
(BAC - EV) / (BAC - AC)
Effeciency needed to meet Estimate AT completion (EAC)
(BAC - EV) / (EAC - AC)
> 1 - Hard to accomplish
= 1 - Same level of effeciency
<1 - Easy to accomplish
EVM Rules
Compute Earned Value
Variance means subtract
-ve means bad variance
Index means division
< 1 bad index
Key Performance Indicators (KPI) of Agile
Rate of Progress
Remaining Work
Likely completion date
Likely cost remaining
In Agile its all about getting this done
MoSCoW
Must Have
Should Have
Could Have
Will not have at this time
5 types customer preferences
Must-be quality One-dimensional quality Attractive quality Indifferent quality Reverse quality
Requirements Priorotization Model
Value - Business Benefit
Cost - Expensive vs ROI
Risk - Riskiest items first
Difficulty of implementation - Safest first
Success factors - high probability of success
Regulatory compliance - laws and regulations
Relationship to other requirements
Stakeholder engagement
Urgency
WIP
is risk
WIP
hides bottlenecks
WIP
requires investment
WIP
delivers no return until complete
WIP
needs to be limited
Little’s Law
Duration of the queue is proportional to its size
Lead Time
Amount of WIP / Avg., time to complete each work item
Considerations for contracts in Agile
Scope changes
Priorities
Time and cost
Dynamic Systems Development Method (DSDM) Strategy
Rapid Application Development benefits
- Communication
- Stakeholder Engagement
- Transparency
DSDM contracting
Creates Fixed Schedule, Cost and Quality
Gulf of Evaluation
Difference between “whats said” vs “whats done”
14 tasks in Value Driven Delivery
Plan work incrementally
Gain consensus on just in time acceptance criteria
Tune process to organization team and project
Release minimal viable product
Work in small batches
Review often
Prioritize work
Refactor code often
Optimize environmental operational in infrastructure factors
Review and checkpoint often
Balance value and risk
Reprioritize to maximize value
Prioritize non-functional requirements
Review and improve the overall process and product.
