The Integration of Agile and EVM

Mario is an experienced professional and trainer in project and risk management. He is PMP® and PMI-RMP® certified. Mario is Director of Volunteers for the PMI Madrid Spain Chapter.

  Agile   Earned Value Management   Estimating  

When agile practices are implemented for the first time in a waterfall environment (like in the aeronautic sector), it’s recommended—at least during the initial stages—to keep a more typical reporting system. This helps get buy-in from management, and in working through the change management process.

In the end, you will have to answer management committee questions like “How much will agile cost?” and “When will it be finished?” This calls for the use of more predictive techniques such as earned value management (EVM), and integrating it with agile. When considering the next assumptions for tailoring to the agile environment, keep in mind:

• Agile will only be used in the design phase, which is the most uncertain one—until we’re able to establish a baseline according to waterfall projects, which will be used in the supply and installation phases (thus, a hybrid approach). The design phase is formed by the next milestones: PDR (Preliminary Design Review), CDR (Critical Design Review) and FDR (Final Design Review).
• The project first has a man-hours estimation for the design phase; this is an initial budget for the design phase of the project. Together with the material and assembly budget, it will define the preliminary project budget.
• A project in an agile environment has changing scope, so we should re-baseline …

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