By Andrew Pham, Phuong-Van Pham
Andrew Pham, Phuong-Van Pham, "Scrum in Action"
English | ISBN: 143545913X | version 2011 | writer: path expertise PTR | PDF | 320 pages | 3,6 mb
SCRUM IN motion: AGILE software program venture administration AND improvement is a realistic how-to consultant for software program venture groups on find out how to effectively install an Agile software program framework with Scrum. it's sincerely and concisely written and is the 1st useful advisor with genuine international occasions written through company practitioners. This booklet describes many reliable undertaking administration concepts on the best way to get the main from undertaking groups and bridges the gaps among many Scrum and venture administration books via addressing find out how to speak with executives utilizing monetary phrases, tips to use an aim estimation approach, and the place software program structure matches into Scrum.
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The finance department should have calculated this for your company and will provide it to you if you ask. ROI Velocity Â Margin Let’s assume that your project can bring in $4 million in revenue for a total cost of investment of $2 million, and if your company’s profit margin is 10 percent, then, using the above formula, the ROI for this project will be equal to: ROI (4,000,000/2,000,000) Â 10% ROI 20% 23 24 Chapter 2 n Finance Speak When having to compare between different projects, remember to select the project which has the highest ROI.
The first concept, velocity, is practically the same concept as Scrum velocity. In business, velocity defines how quickly a company can make enough revenue (or reduce costs) to pay for the cost of its investment (or asset or inventory), plus the profit it hopes to realize. The second concept, profit margin, is the money, or profit, the company makes after paying all its expenses, costs associated with making and selling its products or services as well as taxes and loan interest. To calculate the ROI on your project, you will only need to know the project velocity and your company’s profit margin.
In other words, the project team is burning cash faster than they are creating value, and therefore, will probably be over budget. 3 shows how the CPI varies with the changing EV and AC. 90 would mean that the project is over budget. 3 Cost Performance Index (CPI). Schedule Performance The goal of schedule performance is primarily to calculate the project performance in terms of schedule efficiencies. It can also be used to predict trends in schedule performance. Schedule Variance (SV) While AC refers to cost, Schedule Variance (SV) gives us an indication as to whether the project is behind or ahead of schedule.