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Topics: Agile, Earned Value Management, Scrum
Could be used EVM in an agile environment?
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Even in an agile environment, cost must be controlled, so EVM is a known tool for it.

But, we must tailor EVM to our project, because baseline is not going to be modified on every sprint, so final cost must be fixed and we must adapt the measurement units (as ideal days) and use predictors (as EAC) based on performace to estimate cost at project conclusion.

What´s your opinion?
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You can absolutely use EVM but one of the challenges of using it when you don't have a fully defined SOW is defining your tasks. I think it was Steve Jobs who described how he does his best problem solving in the shower so he might estimate a problem as requiring 3 showers to solve.

Unless you have unlimited budget and time, at some point you need to somehow figure out how to judge when you think you'll be done and how you're progressing towards the solution.
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1 reply by Mario de Travesedo
Dec 02, 2018 2:33 PM
Mario de Travesedo
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Thanks Keith. Projects usually have a limited budget so I agree with you we need some tool to control costs.
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You definitely can and should used EVM but it is not enough at its own because EVM parameters gives you an indication on how the project is performing numbers wise but does not reflect fully on the health of the project as it does not tell you if you are delivery value or not so you might be way ahead of schedule but not delivery the value required. Hope this makes sense !
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1 reply by Mario de Travesedo
Dec 02, 2018 2:36 PM
Mario de Travesedo
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Sure Rami, you need to combine with other tools and techniques to assure you´re delivering value to your organization.
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Dec 02, 2018 12:48 PM
Replying to Keith Novak
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You can absolutely use EVM but one of the challenges of using it when you don't have a fully defined SOW is defining your tasks. I think it was Steve Jobs who described how he does his best problem solving in the shower so he might estimate a problem as requiring 3 showers to solve.

Unless you have unlimited budget and time, at some point you need to somehow figure out how to judge when you think you'll be done and how you're progressing towards the solution.
Thanks Keith. Projects usually have a limited budget so I agree with you we need some tool to control costs.
Network:509



Dec 02, 2018 1:30 PM
Replying to Rami Kaibni
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You definitely can and should used EVM but it is not enough at its own because EVM parameters gives you an indication on how the project is performing numbers wise but does not reflect fully on the health of the project as it does not tell you if you are delivery value or not so you might be way ahead of schedule but not delivery the value required. Hope this makes sense !
Sure Rami, you need to combine with other tools and techniques to assure you´re delivering value to your organization.
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1 reply by Andrew Craig
Dec 02, 2018 7:50 PM
Andrew Craig
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Mario, what T&T do you use to assure value is delivered?
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I am using EVM in Agile environments. You can search for Alistar Cockbourn and Mike Cohn work on the file and CMU SEI work on the field to have a point of reference.
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1 reply by Mario de Travesedo
Dec 02, 2018 3:56 PM
Mario de Travesedo
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Thanks for the reference. I´ll take a look on it.

I´m also using it in some projects tailoring to my needs and using attached article as a reference. I work in a very predictive environment (aeronautic sector) so hybrid approach is the best way to integrate both ways of managing projects.

https://www.apm.org.uk/media/1190/agile-and-earned-value.pdf
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Dec 02, 2018 3:35 PM
Replying to Sergio Luis Conte
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I am using EVM in Agile environments. You can search for Alistar Cockbourn and Mike Cohn work on the file and CMU SEI work on the field to have a point of reference.
Thanks for the reference. I´ll take a look on it.

I´m also using it in some projects tailoring to my needs and using attached article as a reference. I work in a very predictive environment (aeronautic sector) so hybrid approach is the best way to integrate both ways of managing projects.

https://www.apm.org.uk/media/1190/agile-and-earned-value.pdf
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For a more inclusive assessment of project health, you may wish to add metrics and measurements/ratios for % budget expended, % Schedule duration expended, % Planned EVM VS % Actual, EVM and product/functionality achieved VS project charter goal.
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1 reply by Mario de Travesedo
Dec 03, 2018 5:10 AM
Mario de Travesedo
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Thanks Henry. We´re trying to make it simple at the beginning, and later, as we improve we should include more metrics. Probably on next iterations...
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Yes, we are using EVM.
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Dec 02, 2018 2:36 PM
Replying to Mario de Travesedo
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Sure Rami, you need to combine with other tools and techniques to assure you´re delivering value to your organization.
Mario, what T&T do you use to assure value is delivered?
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1 reply by Mario de Travesedo
Dec 03, 2018 4:59 AM
Mario de Travesedo
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Hi Andrew.

We´re using this approach for R&D projects to define new concepts/ products which are applied in commercial projects.

We measure the benefits in these projects in terms of company profit. If we have to spend more money in a R&D project is not a real issue if we´re saving money in commercial projects.

For example, if we´re using aditive manufacturing (3D printer) in a R&D project to reduce costs in our proposals/ projects, we´re adding value to the company because we´re more competitive.
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Yes EVM is used / applied
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