12

If a requirement is discovered in the middle of a project or even later, then the cost of implementation of this requirement can be very high. In this statement you are saying that the cost of change is high (particularly late on in a project). The agile approach recognises that change happens and so endeavours to reduce the cost of change. This is the ...


9

Stop work immediately and get the work under a contract. Get a detailed Statement of Work that clearly identifies what is getting delivered, what activities will take place, what finished looks like, how you will invoice, how they will pay, etc. Your issue is not methods or communications or convincing them. You have no contract or are not enforcing your ...


9

Stop billing them for the activities they complain about and roll the costs into what they are willing to pay for (deliverables). You're not cheating them--you're not burdening your clients with the details. Your clients want the sausage, not the details of how it's made. Also, if your client doesn't want to pay for the requirements gathering activity, ...


7

The S curve is cumulative. At the end of the project, when resources begin to drop, you expect to see the slope of the curve at the top to decrease as compared to the middle of the project when resources are high. But you will never see the curve go down because it is cumulative.


6

The issue with using formula is that it will provide an extremely precise, deterministic value that lives in a range of probabilistic values. Although extremely precise, no single formula will give you a high degree of accuracy, i.e., all formula have varying degrees of accuracy and thus are useful. But that means you need to use several of them so that ...


6

TL;DR Your job as a Product Owner (PO) or Project Manager (PM) is not to have all the answers. Your job is to have a vision, and to communicate options to stakeholders and business decision-makers. Analysis and Solutions What if somebody is asking a salary increase? if I keep him, I have higher costs. Hence probably my budget will blow up. I can try to ...


6

Prioritisation, continuous delivery and review is the way to control delivery risk for any software development, not just when using Scrum. I can't agree with the first sentence of your question however. If work is ordered wisely then the most important and most risky or expensive work usually comes first, so the cost of unexpected work should tend to reduce ...


6

You say: If a requirement is discovered in the middle of a project or even later, then the cost of implementation of this requirement can be very high. This can be true or can be false. It depends of the type of change you are referring to. I'm assuming a big change, or something lacking in an important way, or something that deviates in some way from what ...


5

TL;DR you aren't selling the right thing Is there a way I can prove, on paper at least, that we need to have more resources? It doesn't look like your goal is to prove anything. Even if it was, it would be rather pointless: in most cases a person who you have proven a point to won't like you after that. You aren't going to get more resource by proving ...


4

The U.S. GAO has developed a 440 page guide for cost estimation of Capital Programs Here is the GAO (Government Accountability Office) Cost Estimating and Assessment Guide - Best Practices for Developing and Managing Capital Program Costs. What they call 'Capital Programs' include infrastructure projects. According to the GAO: We developed the Cost Guide in ...


4

With this kind of situation, the only quote I would provide is an hourly cost, my weekly availability, and maybe my total duration I'd be willing to commit. In other words, time and materials. If unacceptable, walk away.


4

In my view, any necessary labor that was exhausted in order to build the finished product or provide a service deliverable would be chargeable to that project as a direct expense. The test would be, would an employee perform the questionable task if it were not for the product being produced? If the answer is no, then it should be a direct expense to the ...


4

It becomes a contract dispute. As the PM, you would escalate the dispute based on however your company defined its escalation process. Most likely, you would raise it internally through your contracts and legal departments. The folks there would assess the merits of your argument as compared to the contract language and the risk of litigation. From there,...


4

From a sequential perspective, the idea that a requirement that is discovered later in the project is likely to be more expensive to address. Similarly, a defect found late after origination is also likely to be more expensive. This is because of how much work is done. Consider that in efforts run using sequential methods, you try to elicit all of the ...


3

Due to your post in PMSE, I assume you are taking about network diagrams (vs. SW-engineering activity diagrams)? For network diagrams, it's like in normal language usage: A follows B, so A is the successor of B, or B is the predecessor of A: B -> A See http://en.m.wikipedia.org/wiki/Dependency_%28project_management%29


3

This situation is unfortunately more common than logic would suggest. It all arises from the projects culture, in general when transparency is part of the business culture, and of course there is a well designed compensation policy that allows that transparency without fearing conflicts, project management can have full sense as you really know which ...


3

I'd advise against adding some type of margin to your targets. It seems a lot of folks like to do this, but it is unreliable and just adds unnecessary costs to your budget. First, there is no such thing as an accurate or correct target. Your estimate should ALWAYS be a range. For example, for task A, your workers estimate that this work will take between ...


3

Is the "upper management" your management or theirs? If yours, you need to have a discussion with them that makes absolutely clear that treating all "non-programming activities" as non-essential costs them money. If theirs, with whom do you have a contract? The client or their management? Either way, you need to make clear that these non-programming tasks ...


3

If you need to track costs, track it at the Scrum Team level rather than at the individual level. A simple way to do this is to take a blended cost per person and multiply it by the number of people in the team and the duration of sprints. For example: Average cost of staff is £600 per day and Scrum Team 1 has 7 people in it and do a two week sprint. ...


3

TL;DR Contract disputes are a way to manage financial risk to the company, not schedule risk. As a purely practical matter, you can't really transfer schedule risk away through contractual means, no matter what the contract may say. In the short term, your immediate options will be based on a business analysis of your company's needs and alternatives. Also,...


3

Let's simplify your question down. Feature A is expected to cost $X to deliver and in reality costs $1.2X to deliver. This can be because of a raise, inflation, change in needs, or a ton of other reasons. Let's assume for a moment that quality is a constant and you can't just release shoddy work to meet your deadlines. You mentioned the traditional iron ...


3

You need to calculate risk exposure for each of the identified risks then compute a work buffer to cover them. This is part of the Risk Analysis and Management practice. Since this is a fixed price contract, you need to do an upfront estimation of your work, most likely directly in time units. You also need to sit down and think about what risks may ...


3

David Espina expressed it very pragmatically in his comment "Can you provide me a quote for this work?" The fancy name for that is a Request For Proposal. That's a document that outlines the requirements of your project (in this case website) to help the vendor/developer understand what needs to be built. They can't offer you a cost for building ...


3

Launch the MVP, if it does the job Welcome to pm.stackexchange! You would have made many assumptions about what the users need and how they will use your product. These assumptions need to be validated by letting early customers use it. Based on the feedback you gather from them, you may have to make drastic changes to the app. When you do that, all the '...


3

If your operating model involves detailed scope and change management then ultimately that comes down to negotiation. As in any negotiation, you can win some things and lose others. If you think you are giving away too much then the final decision is usually a matter of account management rather than project management because whoever makes the commercial ...


2

Agner Erlang originated queueing theory in 1909 in telephony. In a completely deterministic system, no delays are present until we exceed 100 percent utilization. Erlang showed that because phone calls arrive at unpredictable times and have unpredictable durations, delays rise exponentially BEFORE we reach 100 percent utilization. This math does not only ...


2

If you truly need resources, whether it is human, financial, space, tools, etc, you will experience capability degradation. That degradation will cause some unfavorable result such as quality, time, morale, employee turnover, and costs. So the proof is embedded in your operations and / or project performance metrics. You should be able to show special ...


2

This is a typical problem for investment decisions. You can calculate this using current or net present values, using some expected economic lifetime. You can include a risk profile, using for instance Monte Carlo simulations, to predict the average and standard deviations of your investment. The simple approach using current value you can solve using Excel ...


2

Agile approaches this from two perspectives: building trust between the team and management, and collaboration between the team and the vendor. I would bring the management to the team area for a while when they work with the new platform so that the management has a first hand experience on the problems the team is facing. In all the projects where I was ...


2

Forget about the fact the actual platform is virtualised- that is a red herring. You still need to forecast your resource usage and growth just as if it was real tin. Pretend it is for the purposes of estimation and make sure you analyse, project and forecast your resource usage such as disk space, network bandwidth and backup requirements. If it was real ...


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