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5883RE: [scrumdevelopment] Re: Multi-Project Development with Limited Resources

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  • Clarke Ching
    Jan 5, 2005
    • 0 Attachment
      Hi Jiri,
       
      Thanks for your reply.
       
      > a) Unfortunately for us our company, as many do, has won a
         bid for this project on a fixed price contract basis.
         So we get a big sum of money, divided in monthly payments
         over a period of two years, to finance the ongoing
         development effort. ... He has the right
         to not give us any further work in the future, if not
         satisfied.
       
      That is kinda unfortunate!  So there is no immediate motivation for your company to deliver any earlier than promised.  In fact, by the sound of it, would you lose money if you did?
       
      Clarke
       


      From: Jiri Lundak [mailto:jiri.lundak@...]
      Sent: 04 January 2005 00:31
      To: scrumdevelopment@yahoogroups.com
      Subject: [scrumdevelopment] Re: Multi-Project Development with Limited Resources


      Hi Clark,

      a) Unfortunately for us our company, as many do, has won a
         bid for this project on a fixed price contract basis.
         So we get a big sum of money, divided in monthly payments
         over a period of two years, to finance the ongoing
         development effort. At the end of the project all code
         becomes the property of the customer. He has the right
         to not give us any further work in the future, if not
         satisfied.
         Unfortunately the customer has no idea how to continue to
         develop the system on his own or a third party, because
         very much know-how in the business domain is needed, that
         our partner, IBM, does not possess.
         So even in the case that the project should be terminated
         without being finished, there is the opinion in upper
         management, that the investment is so big, that the
         customer can not afford to invest once more the same sum
         to complete the project.

      b) Although this this would be a remote possibility (because
         there are several other suppliers), this would not be
         an easy switch, because there would have to be rewritten
         many host programms that migrate data from the old host
         environment to the one (the host programms being written
         by our company's programmer over the period of the last
         20 years). A bit you can call that kind of a supplier
         lock in. Sure, with lots of money this could be possible.
         But as a govermental firm (operating on tax money) they
         try to save any single Swiss franc they can.

      Hope this helps to give you a better picture.

      Jiri


      --- In scrumdevelopment@yahoogroups.com, "clarkeching" <lists@c...> wrote:
      >
      > Hi Jiri,
      >
      > I don't think we can properly help answer your question without
      > knowing:
      >
      > a) How does your company *make money* from these
      > projects/customers?  Are they paid on completion of the work, as
      > part of a joint-venture, or is this done a work and materials basis?
      >
      > b) What's the competive environment like for your company?  For
      > instance, can your customers easily move to another supplier?
      >
      > Since your employer is in business to make money your decision
      > should be based on how you can help them to make the most money (now
      > and in the future), not on minimising cost, technical
      > considerations, efficiency, or on "fairly" balancing the needs of
      > the many customers. 
      >
      > BTW: you might want to look at the animations in this powerpoint
      > presentaion, under "Tool 2 - Eliminate multitasking"
      > http://www.clarkeching.com/files/clarke_ching_goldratt_toc_xpday_2004
      > .ppt
      > Clarke





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