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Copyright @ 2011. All rights reserved
Using Agile and Earned Value
Project Controls Expo – 18th Nov 2014
Emirates Stadium, London
Copyright @ 2011. All rights reserved
About the Speaker
Stephen Jones
Chairman of the APM Planning, Monitoring and Control Specific
Interest Group. A Registered Project Professional, and a chartered
Electrical Engineer. Project Management experience comes from the
Nuclear Industry, currently a Project Manager at Sellafield Ltd
working for the Major Project directorate.
Copyright @ 2011. All rights reserved
• Located in the County of
Cumbria, North West England
• Functional support capability is
provided by employees based
at Risley, Warrington
• Nuclear build started at
Sellafield in the late 1940’s
• Location of Calder Hall – The
world’s first commercial scale
Nuclear Power Station (1956-
2003)
Sellafield
Risley
Sellafield is the largest and most
complex Nuclear site in Europe
Copyright @ 2011. All rights reserved
 250 active facilities on 1 ½ sq. miles / 700 acres
 Operations include
 Decommissioning
 Nuclear fuel reprocessing
 Nuclear waste management
 Construction
 Delivery of major projects
 Total annual budget £1.8bn
 Employs 10,000+ people
 Recruits 64 Graduates and apprentices per year
Single largest Nuclear construction site
in the UK
Copyright @ 2011. All rights reserved
Is Agile a Methodology?
YES NOOR
Copyright @ 2011. All rights reserved
•Scrum
•XP (eXtreme Programming)
•Crystal
•FDD (Feature Driven Development)
•DSDM (Dynamic Systems Development)
•Adaptive Software Development
•RUP (Rational Unified Process)
Agile Methodologies
Copyright @ 2011. All rights reserved
The Agile Manifesto was written in February of 2001, at a
summit of seventeen independent-minded practitioners of
several programming methodologies. The participants didn't
agree about much, but they found consensus around four
main values.
 Individuals and interactions over processes and tools
 Working software over comprehensive documentation
 Customer collaboration over contract negotiation
 Responding to change over following a plan
Agile Manifesto
Twelve Agile Principles
Copyright @ 2011. All rights reserved
Agile Myths
Planning – No need to plan all activities
Schedule – Baseline cannot be developed
Resources - Less need to assign resources
Risk – Less need for risk analysis
Copyright @ 2011. All rights reserved
Waterfall Method
Copyright @ 2011. All rights reserved
Agile Software Development
Copyright @ 2011. All rights reserved
Challenges
Copyright @ 2011. All rights reserved
What do all the words mean
Copyright @ 2011. All rights reserved
People-centric
Copyright @ 2011. All rights reserved
100% 0%
Rules of Credit
Copyright @ 2011. All rights reserved
Agile Poker
15
Copyright @ 2011. All rights reserved
Earned Value
16
Copyright @ 2011. All rights reserved
Points Go Up or Down
17
Copyright @ 2011. All rights reserved
APM White Paper
http://www.apm.org.uk/news/agile-and-earned-value-white-paper
Based on SCRUM
Worked Examples
Copyright @ 2011. All rights reserved
Worked Examples
19
Story Cards (Backlog)
Estimated
(story points)
Card 1. Splash Screen 10
Card 2. Enter Login Name Password 10
Card 3. Verify Password 10
Card 17. Shutdown 50
Total points in Backlog 260
Copyright @ 2011. All rights reserved
Worked Examples
20
Estimated Value of Backlog = £100,000
Period 1 = 20 points delivered (card 1 & card 2)
20/260 = 7.692% complete.
Earned Value = £7,692
Note: Project Management is calculated using apportioned
effort, i.e. based on the performance of delivering the
backlog.
Copyright @ 2011. All rights reserved
Worked Example – Static Backlog
19/11/2014 21
Period
Points in
Backlog
Points
earned
in
Month
Earned
points
to
date
Total %
complet
e
1 260 20 20 8%
2 260 40 60 23%
3 260 30 90 35%
4 260 10 100 38%
5 260 40 140 54%
6 260 40 180 69%
7 260 80 260 100%
Total % complete is
Points Earned to Date
Total Points in Backlog
Copyright @ 2011. All rights reserved
Worked Example – Increasing Backlog
19/11/2014 22
Period
Points in
Backlog Added
Points
earned
in
Month
Earned
points
to
date
Availabl
e Points
% of
backlog
complet
e this
month
Percent
Remainin
g
Progres
s this
month
Total %
complet
e
1 150 0 20 20 150 13% 100% 13% 13%
2 190 40 40 60 170 24% 87% 20% 34%
3 200 10 30 90 140 21% 66% 14% 48%
4 220 20 10 100 130 8% 52% 4% 52%
5 240 20 40 140 140 29% 48% 14% 66%
6 300 60 70 210 160 44% 34% 15% 81%
7 320 20 30 240 110 27% 19% 5% 86%
8 320 0 80 320 80 100% 14% 14% 100%
Value of a point reduces. P2, 40 points =20%, P5, 40 points = 14%
Copyright @ 2011. All rights reserved
Worked Example – Decreasing Backlog
19/11/2014 23
Value of a point increases. P2, 40 points =16%, P5, 40 points = 21%
Period
Points in
Backlog Added
Points
earned
in
Month
Earned
points
to
date
Availabl
e Points
% of
backlog
complet
e this
month
Percent
Remainin
g
Progres
s this
month
Total %
complet
e
1 320 0 20 20 320 6% 100% 6% 6%
2 250 -70 40 60 230 17% 94% 16% 23%
3 230 -20 30 90 170 18% 77% 14% 36%
4 220 -10 10 100 130 8% 64% 5% 41%
5 210 -10 40 140 110 36% 59% 21% 63%
6 210 0 70 210 70 100% 37% 37% 100%
Copyright @ 2011. All rights reserved
24
Contingency
Copyright @ 2011. All rights reserved
25
Estimate to Completion
Copyright @ 2011. All rights reserved
 Agile and Earned Value
http://www.apm.org.uk/sites/default/files/open/20131015%20Agile%
20and%20Earned%20Value%20Final.pdf
 Measuring Integrated Progress on Agile Software Development
Projects
http://www.methodsandtools.com/archive/archive.php?id=61
 AgileEVM – Earned Value Management in Scrum Projects
 http://www.solutionsiq.com/docs/earned-value-analysis-in-scrum-
projects-wp.pdf
Useful References
Copyright @ 2011. All rights reserved
27
Thank you for Listening

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Project Controls Expo 18th Nov 2014 - "Using Agile and Earned Value" By Stephen Jones

  • 1. Copyright @ 2011. All rights reserved Using Agile and Earned Value Project Controls Expo – 18th Nov 2014 Emirates Stadium, London
  • 2. Copyright @ 2011. All rights reserved About the Speaker Stephen Jones Chairman of the APM Planning, Monitoring and Control Specific Interest Group. A Registered Project Professional, and a chartered Electrical Engineer. Project Management experience comes from the Nuclear Industry, currently a Project Manager at Sellafield Ltd working for the Major Project directorate.
  • 3. Copyright @ 2011. All rights reserved • Located in the County of Cumbria, North West England • Functional support capability is provided by employees based at Risley, Warrington • Nuclear build started at Sellafield in the late 1940’s • Location of Calder Hall – The world’s first commercial scale Nuclear Power Station (1956- 2003) Sellafield Risley Sellafield is the largest and most complex Nuclear site in Europe
  • 4. Copyright @ 2011. All rights reserved  250 active facilities on 1 ½ sq. miles / 700 acres  Operations include  Decommissioning  Nuclear fuel reprocessing  Nuclear waste management  Construction  Delivery of major projects  Total annual budget £1.8bn  Employs 10,000+ people  Recruits 64 Graduates and apprentices per year Single largest Nuclear construction site in the UK
  • 5. Copyright @ 2011. All rights reserved Is Agile a Methodology? YES NOOR
  • 6. Copyright @ 2011. All rights reserved •Scrum •XP (eXtreme Programming) •Crystal •FDD (Feature Driven Development) •DSDM (Dynamic Systems Development) •Adaptive Software Development •RUP (Rational Unified Process) Agile Methodologies
  • 7. Copyright @ 2011. All rights reserved The Agile Manifesto was written in February of 2001, at a summit of seventeen independent-minded practitioners of several programming methodologies. The participants didn't agree about much, but they found consensus around four main values.  Individuals and interactions over processes and tools  Working software over comprehensive documentation  Customer collaboration over contract negotiation  Responding to change over following a plan Agile Manifesto Twelve Agile Principles
  • 8. Copyright @ 2011. All rights reserved Agile Myths Planning – No need to plan all activities Schedule – Baseline cannot be developed Resources - Less need to assign resources Risk – Less need for risk analysis
  • 9. Copyright @ 2011. All rights reserved Waterfall Method
  • 10. Copyright @ 2011. All rights reserved Agile Software Development
  • 11. Copyright @ 2011. All rights reserved Challenges
  • 12. Copyright @ 2011. All rights reserved What do all the words mean
  • 13. Copyright @ 2011. All rights reserved People-centric
  • 14. Copyright @ 2011. All rights reserved 100% 0% Rules of Credit
  • 15. Copyright @ 2011. All rights reserved Agile Poker 15
  • 16. Copyright @ 2011. All rights reserved Earned Value 16
  • 17. Copyright @ 2011. All rights reserved Points Go Up or Down 17
  • 18. Copyright @ 2011. All rights reserved APM White Paper http://www.apm.org.uk/news/agile-and-earned-value-white-paper Based on SCRUM Worked Examples
  • 19. Copyright @ 2011. All rights reserved Worked Examples 19 Story Cards (Backlog) Estimated (story points) Card 1. Splash Screen 10 Card 2. Enter Login Name Password 10 Card 3. Verify Password 10 Card 17. Shutdown 50 Total points in Backlog 260
  • 20. Copyright @ 2011. All rights reserved Worked Examples 20 Estimated Value of Backlog = £100,000 Period 1 = 20 points delivered (card 1 & card 2) 20/260 = 7.692% complete. Earned Value = £7,692 Note: Project Management is calculated using apportioned effort, i.e. based on the performance of delivering the backlog.
  • 21. Copyright @ 2011. All rights reserved Worked Example – Static Backlog 19/11/2014 21 Period Points in Backlog Points earned in Month Earned points to date Total % complet e 1 260 20 20 8% 2 260 40 60 23% 3 260 30 90 35% 4 260 10 100 38% 5 260 40 140 54% 6 260 40 180 69% 7 260 80 260 100% Total % complete is Points Earned to Date Total Points in Backlog
  • 22. Copyright @ 2011. All rights reserved Worked Example – Increasing Backlog 19/11/2014 22 Period Points in Backlog Added Points earned in Month Earned points to date Availabl e Points % of backlog complet e this month Percent Remainin g Progres s this month Total % complet e 1 150 0 20 20 150 13% 100% 13% 13% 2 190 40 40 60 170 24% 87% 20% 34% 3 200 10 30 90 140 21% 66% 14% 48% 4 220 20 10 100 130 8% 52% 4% 52% 5 240 20 40 140 140 29% 48% 14% 66% 6 300 60 70 210 160 44% 34% 15% 81% 7 320 20 30 240 110 27% 19% 5% 86% 8 320 0 80 320 80 100% 14% 14% 100% Value of a point reduces. P2, 40 points =20%, P5, 40 points = 14%
  • 23. Copyright @ 2011. All rights reserved Worked Example – Decreasing Backlog 19/11/2014 23 Value of a point increases. P2, 40 points =16%, P5, 40 points = 21% Period Points in Backlog Added Points earned in Month Earned points to date Availabl e Points % of backlog complet e this month Percent Remainin g Progres s this month Total % complet e 1 320 0 20 20 320 6% 100% 6% 6% 2 250 -70 40 60 230 17% 94% 16% 23% 3 230 -20 30 90 170 18% 77% 14% 36% 4 220 -10 10 100 130 8% 64% 5% 41% 5 210 -10 40 140 110 36% 59% 21% 63% 6 210 0 70 210 70 100% 37% 37% 100%
  • 24. Copyright @ 2011. All rights reserved 24 Contingency
  • 25. Copyright @ 2011. All rights reserved 25 Estimate to Completion
  • 26. Copyright @ 2011. All rights reserved  Agile and Earned Value http://www.apm.org.uk/sites/default/files/open/20131015%20Agile% 20and%20Earned%20Value%20Final.pdf  Measuring Integrated Progress on Agile Software Development Projects http://www.methodsandtools.com/archive/archive.php?id=61  AgileEVM – Earned Value Management in Scrum Projects  http://www.solutionsiq.com/docs/earned-value-analysis-in-scrum- projects-wp.pdf Useful References
  • 27. Copyright @ 2011. All rights reserved 27 Thank you for Listening