20009Re: [scrumdevelopment] Tracking hours for budgets and billing
- Mar 6, 2007Thanks for your feedback.
> My opinion is that fixed price and time should be possible if you areCertainly they are possible. Are you suggesting that by doing fixed
> flexible on the scope.
price you eliminate the need to worry track hours altogether? I can see
a whole topic for discussion about how to construct contracts for
software work that are friendly to Scrum. Perhaps that's related to my
question... However, our current contracts typically fall into the
normal fixed price or T&M (time and materials) variety.
> But actually, what I understand with your example is that the sprintDevelopers typically work around 40 hours a week, but yes - in some
> length and the number of sprints are defined but you may work more
> than 40 hours if required. If this is the case, you're not doing fixed
> time but *flexible* time and *fixed* scope (or you wouldn't work more
> than 40h, right ?). So if you're billing on an hourly base, you may
> run over budget unless you reduce the hourly rate :)
cases they work more or less hours. If we are on a T&M (time and
materials) contract, we would bill more or less depending on the number
of hours worked. On a fixed price, management usually wants to know if
they are running over budget or under budget on the fixed price contract
- and how far over or under budget.
> I'd suggest to separate the scrum management stuff and the billingWe could (and have) use complexity/story points to do estimation - but
> stuff and to not use hours for estimations in scrum. You already
> mentioned most disadvantages of hour based estimations (micro
> management, boring for the team, meetings, reading/answering mails,...
> need to be tracked too). That's why I'd really suggest to use
> complexity/story/whatever points and velocity instead.
in order to calculate cost, the reality is that we have to turn the
estimate into a dollar value. Currently we do that by estimating or
converting the estimate into hours and multiplying that times the hourly
rate of the various resources who will be involved.
Although I'm not sure the feasibility of completely revamping the
organization's billing, tracking, and management practices - I'd love to
hear actual experiences with how people have handled these types of
situations. Has anyone started with a traditional project organization
that billed clients on an hourly basis - and converted the model to a
more Scrum-friendly approach? If so, what did you do and what pitfalls
did you encounter?
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