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June 06, 2008

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Very good post. I liked the line 'We could be on time and on budget, but building a horrible product that the business does not like or is low in quality.'
Keep the good quality of your posts up.

When you comment that "Traditional EVM metrics can be easily translated into Agile terms" you say that CPI is the 'Planned Costs to date' divided by the 'Actual Costs to date'.

That is not true. Performance Indicators in Earned Value always use EV as a reference.

CPI is EV (Earned Value) divided by AC (Actual Cost to date)

From your examle:

EV is the value of 25 stories (About 2.2M from your example)
AC is Actual cost to date = 2.8M

So

CPI = 2.2M / 2.8M = 0.78

Hi Romildo,

Thanks, you are correct, CPI is, and always will be EV/AC. I have fixed up the slide and sentance. Many thanks for pointing this out.

Regards
Mike

Great post Mike. You tell it like it is.

Great post Mike. You tell it like it is.

Hi Mike,

Great post, thank you. I have a question with respect to how you generate the values for the 's-curve' in the example spreadsheet.

That is, I would like to generate a baseline s-curve automatically in Excel using just the estimated start date, end date and project budget.

Is there somewhere I can find this formula?

Thanks

Goran

Hi Goran,

I do not have formula for the underlying S curve.

As you can imagine, the gentle start of the spend S Curve comes from the reduced team size at the beginning of the project when you would likely only have a PM, a BA, and an architect on the project before ramping up the full project team. Likewise towards the end of the project you will normally be cutting down the team size as tasks finish up.

For an example of how this curve may be generated, see my post A Burn-Rate Based Estimation Tool that has an example.
http://leadinganswers.typepad.com/leading_answers/2007/04/a_burnrate_base.html

Given this data I guess you could find an equation for a line that follows this curve, but I start my estimates with this Burn-Rate spreadsheet and so have not had the need to find one.

I hope this helps, at least a little.

Best regards
Mike

Very nice! I have also done some work in this space, and have reached similar conclusions. I've posted some details here -- http://www.agilekiwi.com/agile_charts.htm -- and am currently hoping to share some of these ideas with the traditional EVM community.

Hi John,

Thanks for the link, I agree with your thoughts and wish you well with your plans to share with the EVM community. Please keep in touch and let me know how it goes.

Best regards
Mike

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