Monday, 17 October 2016

Chat Discussion on Scrum for Fixed bid project



Below is a discussion and summary of views on execution of fixed bid project using Scrum and y-o-y gains. This discussion happened on 22/10/2014.

Shantanoo: Here is a question or something for brain work...
How in large outsourcing contract for application development where we use agile; the cost model would be on fixed price?
Shantanoo: And in addition, how would we measure and show y-o-y productivity gains? While projects are running on agile?

Satisha: There was a question. Is Scrum suitable when we are working on fixed bud project?
Satisha: Customers are willing to cooperate but internal sales folks have aggressively bid and won project
Satisha: These 2 folks from delivery team know that can't deliver it
Satisha: Also know waterfall is not useful
Satisha: So they are using Scrum
Satisha: But they see changes coming in at the end of every sprint
Satisha: So they were asking should we use scrum as they don't have provision for change control in their contract
Satisha: What would you suggest these guys do?
Sneh Shahani: First thing that they should do is to set clear expectations.
Atmaram: Also I think they are not able to identify hence freeze the requirements.
Sneh Shahani: And as anyways project execution is tradeoff between resources available and features to be delivered. So then then can only try and deliver whatever MVP or value add they can give.
Atmaram: Prioritization of us also should be focused
Atmaram: Absolutely so Scrum should be used to identify and deliver MVP and from any budget that is remaining can be used to complete remaining set of prioritized US
Satisha: Their worry is if we keep on taking changes they may not be able to meet scope per contract
Alok: I ditto with Sneh .... They need to trade off MVP along with CI ..
Shantanoo: May be this should be our next topic in meet up?
Shantanoo: If together we can create model for dealing this with customer then it would be great

Satisha: I did learn how a small startup handled this case which goes in line with what I do and preach
Satisha: He even showed what they delivered
Shantanoo: Here is a question or something for brain work...
How in large outsourcing contract for application development where we use agile; the cost model would be on fixed price?
Shantanoo: Here was last question i put up last time
Shantanoo: And in addition, how would we measure and show y-o-y productivity gains? While projects are running on agile?
Satisha: How do you show it now?
Satisha: Cross question: how do you calculate cost in case of fixed price? What parameters do you use?
Shantanoo: At present we show it based on productivity against euro value