1. CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved CSE7315M23 Slide 1 January 8, 2004 SMU CSE 7315 / NTU SE 584-N Planning and Managing a Software Project Module 23 Cycle Time Management and Negotiation

2. CSE7315M23 Slide # 2 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Objectives of This Module To introduce basic concepts of cycle time management To discuss negotiation of estimates

3. CSE7315M23 Slide # 3 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Introduction to Cycle Time Management Cycle time is addressed in more detail in the course CSE8314 (NTU SE 762-N). Here we present some simple tips for cycle time management.

4. CSE7315M23 Slide # 4 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Detailed Planning Process Estimate Size Estimate Effort and Cost Estimate Schedule Evaluate Source Information Statement of Work Requirements Constraints Standards Processes History etc. WBSSize Effort & Cost Schedule OK Complete Detailed Planning Revise & Negotiate Not OK

5. CSE7315M23 Slide # 5 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved What Is Cycle Time? The amount of time it takes from the beginning of your project to the end You must count everything, including delays, waits, etc. Looking at cycle time helps you see causes for schedule slips that you might miss using other methods

6. CSE7315M23 Slide # 6 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved What Makes Cycle Time High? Excessive inventory or work in process (WIP) – Work waiting around but not being done – Higher overhead, longer delays Process flow variability – Excessive waiting and long queues Complexity and inefficiency of processes – Redundant and unnecessary steps

7. CSE7315M23 Slide # 7 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved 3 Steps to Cycle Time Reduction 1. Reduce variability 2. Simplify the process 3. Reduce WIP N A V Y

8. CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved CSE7315M23 Slide 8 January 8, 2004 Reducing Variability Too often, we create variability - - mistakenly thinking we are improving performance For example, expediting some parts of the work due to “priorities”

9. CSE7315M23 Slide # 9 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved 0510152025303540455055606570 0 10 20 30 PERCENT EXPEDITED When we expedite a task, other tasks are delayed In some cases, each task waits until it is expedited before it moves at all Cycle Time Multiplier for Unexpedited Tasks Expediting is Bad for Cycle Time

10. CSE7315M23 Slide # 10 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved BAU 7142128 CYCLE TIME (DAYS) Number Of Tasks Expedited Tasks Delinquent Tasks 7142128 Number Of Tasks CYCLE TIME (DAYS) With managed priorities, you improve the normal case and reduce the need for “priority tasks” Managed Expediting

11. CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved CSE7315M23 Slide 11 January 8, 2004 Inefficient Processes Often our processes are inefficient because of factors that we have not paid attention to

12. CSE7315M23 Slide # 12 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Examples of Inefficient Processes and Procedures Tools do not share data Individuals do not understand each others’ work Excessive time and effort spent on interfaces between different individuals and organizations

13. CSE7315M23 Slide # 13 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Waste Due to Inefficient Processes and Procedures Cycle time is wasted on such activities as: Real Work Conversion Correcting Languages – Converting documents and software from one tool/format to another – Correcting problems due to different programming styles – Handling interfaces between programs written in different languages

14. CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved CSE7315M23 Slide 14 January 8, 2004 Reducing Work In Process (WIP) The Key is Smooth Flow

15. CSE7315M23 Slide # 15 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Smooth Flow The ideal process flows smoothly, like a train running on tracks. Note: tracks are empty most of the time

16. CSE7315M23 Slide # 16 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Uneven Flow The typical process runs unevenly, like vehicles on a city street – Lots of entrances and exits – Vehicles of different sizes and speeds – Some drivers are uncertain of what they want to do – Lots of stoplights to “control” the flow (mainly to prevent collisions) Streets are usually crowded (with WIP!)

17. CSE7315M23 Slide # 17 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Webster’s definitions: Utilize: to make use of Busy: constantly active or in motion Productive: yielding or furnishing results, benefits or profits We tend to measure utilization by how busy we are, but utilization tells us little about how productive we are We should work to increase productivity This may require decreasing utilization! Utilization vs Productivity

18. CSE7315M23 Slide # 18 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved EFFECTIVE UTILIZATION CYCLE TIME Running assets at a high effective utilization requires a costly cycle time trade off For details of theory, see Gross and Harris in reference list. 100% Why Reduce Utilization of Critical Resources?

19. CSE7315M23 Slide # 19 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Other Cycle Time Hints

20. CSE7315M23 Slide # 20 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Practitioners generally focus on their work and on what they think is happening rather than on what is happening – They tend not to see all of the waits, queues, etc. that they cause themselves – Their perception of how they spend their time is generally incorrect Practitioners May Not See Problems and Opportunities

21. CSE7315M23 Slide # 21 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Just as athletes rely on coaches, software engineers need to learn to trust in others to observe and help them do better Egoless Programming Independent Observers See Problems and Opportunities They are not so busy getting the job done to see how they might improve it

22. CSE7315M23 Slide # 22 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Software Developers Are Accustomed to Improving Cycle Time Think of your software development process as a large computer program that runs too slow. How would you make it run faster? Imagine how you would speed up a computer program........ Then draw analogies to the software development process -- and improve the process the way you would improve a program

23. CSE7315M23 Slide # 23 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Examples of Software Cycle Time Techniques “Just-in-time” training Plan testing / test equipment in advance Rethink the detailed design process – Do you need to maintain detailed design documentation? – Do you need to do detailed design at all? Use on-line requirements and design models instead of paper documents and specifications

24. CSE7315M23 Slide # 24 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Examples of Commonly Found Cycle Time Obstacles Poor communication /cooperation between software development and the rest of the organization Poor management of unstable requirements, algorithms & interfaces Contention for test assets -- need better planning, assets allocated to software test Poorly qualified subcontractors

25. CSE7315M23 Slide # 25 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved More Cycle Time Obstacles Excessive paperwork, signatures, and reporting – Negotiate reductions with management and customer Reuse of software not designed for reuse Attempts to use the latest tools and methods -- without adequate support and integration

26. CSE7315M23 Slide # 26 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Negotiating

27. CSE7315M23 Slide # 27 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Detailed Planning Process Estimate Size Estimate Effort and Cost Estimate Schedule Evaluate Source Information Statement of Work Requirements Constraints Standards Processes History etc. WBSSize Effort & Cost Schedule OK Complete Detailed Planning Revise & Negotiate Not OK

28. CSE7315M23 Slide # 28 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved If the Plan is Not Feasible DO examine assumptions and data – initial cost estimates are often very conservative DO examine risk/cost tradeoffs to see if you can accept a higher risk DO make a list of barriers that must be removed in order to make the estimate fit the constraints

29. CSE7315M23 Slide # 29 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved “The quickest way to make a project uneconomical is by doubling the resources needed and using the cover story that you need to prevent failures.” Adams, The Dilbert Principle If the Plan is Not Feasible DO NOT “cave in” & lower everything to meet a target cost or schedule

30. CSE7315M23 Slide # 30 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved The Negotiation Process We MUST have the lowest bid!!! We will, boss!!! Management will try to trim the budget by sending an army of low-ranking, clueless budget analysts to interview you and ask “insightful” questions. Adams, The Dilbert Principle

31. CSE7315M23 Slide # 31 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Re-think key factors Spreadsheet for estimating This will never satisfy the cost goal!???!

32. CSE7315M23 Slide # 32 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Identify Opportunities and Barriers Barriers Opportunities to Cut

33. CSE7315M23 Slide # 33 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Negotiate If they will cut back on the reviews and... Well, I’ll think about it

34. CSE7315M23 Slide # 34 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Beware... Estimates are Never Perfect

35. CSE7315M23 Slide # 35 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Estimating Accuracy vs. Phase 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 FeasibilityPlansDesignDetailed Design Code and Test Release Upper Limit Actual Lower Limit Typical Estimates

36. CSE7315M23 Slide # 36 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Some Opportunities to Offer Plan to re-estimate after important milestones Prioritize requirements and promise to deliver the top ones by the deadline – Incremental deliveries

37. CSE7315M23 Slide # 37 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Some Opportunities to Offer (continued) Put a high cost on requirements changes Look at each “adjustment factor” in Cocomo as an opportunity Get training for everyone

38. CSE7315M23 Slide # 38 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Some Typical Barriers to Faster Schedule or Lower Cost Lack of adequate resources – Software, tools, people, etc. Slow approval cycles for required resources Poor coordination with other disciplines, other companies, etc. Customers, peers in other disciplines, and managers who don’t understand software development very well

39. CSE7315M23 Slide # 39 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Some Difficult Barriers to Faster Schedule or Lower Cost Irascible and irrational customers & managers Intentional barriers – Competitors, etc – Political constraints

40. CSE7315M23 Slide # 40 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Negotiating Tip... The more facts you have, the better off you are during negotiation Get them to review your estimate – Sometimes they don’t bother Be well prepared to explain it

41. CSE7315M23 Slide # 41 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Several Iterations are Likely Identify the factors that affect the cost and schedule – Experience levels, stability levels, etc. Examine sensitivity of the results to various factors Examine historical data to make a better picture of probable events Don’t put too much faith in the accuracy of models That’s why you should use a spreadsheet!

42. CSE7315M23 Slide # 42 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Module Summary - I Cycle time problems are usually traced to three factors: – Variability in processes – Inefficient processes – Excessive work in process (WIP) Many cycle time improvements require looking at the whole process instead of just individual steps of the process

43. CSE7315M23 Slide # 43 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved Module Summary - II When the plans show that there is not enough time or money to do the job, NEGOTIATE - don’t CAPITULATE Having the facts will help you in the negotiation process Expect several iterations

44. CSE7315M23 Slide # 44 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved END OF MODULE 23

45. CSE7315M23 Slide # 45 January 8, 2004 CSE 7315 - SW Project Management / Module 23 - Cycle Time Management and Negotiation Copyright © 1995-2004, Dennis J. Frailey, All Rights Reserved References Goldratt, Eliyahu M. & Jeff Cox, The Goal, (North River Press, 1984.) Also, Theory of Constraints and It’s Not Luck. Gross and Harris, Fundamentals of Queueing Theory, Wiley, pp 10-11, 101-102 Swartz, James B., The Hunters and the Hunted, (Portland, Oregon, Productivity Press, 1994) ISBN 1-56327-043-9