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Project Profitability?

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  • Todd Hartle
    I ve seen some of the management dashboards (http://www.solutionsiq.com/pbs/scrum.html) that show planned value vs earned value but I m curious how this data
    Message 1 of 3 , Mar 5, 2005
      I've seen some of the management dashboards
      (http://www.solutionsiq.com/pbs/scrum.html) that show planned value vs
      earned value but I'm curious how this data can be use to compute
      project profitability?

      What if a task takes more time to perform than estimated for instance?
      How can this be shown on a dashboard.
    • David H.
      ... That only means you aren t perfect at estimating. Which is quite understandable, it is merely an estimate. But does the _business value_ of a feature
      Message 2 of 3 , Mar 5, 2005
        >
        > What if a task takes more time to perform than estimated for instance?
        > How can this be shown on a dashboard.
        >
        That only means you aren't perfect at estimating. Which is quite
        understandable, it is merely an estimate. But does the _business
        value_ of a feature change, just because it took 20 hours rather than
        15 hours to implement it? I guess you are asking this with Fixed
        Price, fixed delivery date projects in the back of your mind?

        -d
      • Todd Hartle
        Yes, (attempted) Fixed Priced-Fixed Delivery projects. Unfortunately that s how it is here. But because we go over on an estimate does not mean the project
        Message 3 of 3 , Mar 5, 2005
          Yes, (attempted) Fixed Priced-Fixed Delivery projects. Unfortunately
          that's how it is here.

          But because we go over on an estimate does not mean the project would
          not be profitable; just that the forcasted profit would be less until
          the point all margin has been eaten away of course.


          On Sun, 6 Mar 2005 00:01:47 +0100, David H. <dmalloc@...> wrote:
          > >
          > > What if a task takes more time to perform than estimated for instance?
          > > How can this be shown on a dashboard.
          > >
          > That only means you aren't perfect at estimating. Which is quite
          > understandable, it is merely an estimate. But does the _business
          > value_ of a feature change, just because it took 20 hours rather than
          > 15 hours to implement it? I guess you are asking this with Fixed
          > Price, fixed delivery date projects in the back of your mind?
          >
          > -d
          >
          >
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