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Request for Proposal (RFP) Management Ask the right questions and choose wisely!   Harold van Heeringen Sizing, Estimating & Control [email_address] www.twitter.com/haroldveendam Rome, June 2010
Sogeti MD SEC ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Request for Proposal (RFP) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand issues (RFP sender) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Supplier issues (RFP responder)  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Can we:
RFP – Typical Metric Questions ,[object Object],[object Object],[object Object],[object Object]
Generic Estimation Model  Size Size Defects Effort Duration Defects Productivity Metric: Size Function points Metric: Size Function Points Metric: Effort Number of hours Manpower buildup Peak staff Metric: Duration Number of weeks Metric: Quality Number of defects Metric: Process productivity Skills and experience team Development environment Complexity Quality Management System External influences Need Software Energy Software development process Waste Time
Supplier: Estimate the project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Size: Cone of uncertainty time Concept Definition High Level Design Low level   Design   Realization Idea Why What How Size: Function Points RFP 4x 3x 2x 1x 0.8x 0.5x Project Rate 1 4 2 3 3 1 4 1 5 1 6 2 7 4 8 4 9 5 10 5 Average 3
Metric: size time Size in FP Concept Definition High Level Design Low level   Design   Realization Idea Why What How Size: Function Points RFP
Metric: Duration ,[object Object],Impossible Unpracticle Effort Duration Example: To increase duration from 10 to 12 months (20 % longer duration) the amount of effort decreases by 51 %.  (same productivity and system size) Constant Duration 4 Plan A: 6.000 hours Plan B: 4.200 hours
Scenarios Estimate / Business Case Cost depended on  Time-to-market Example Scenario 1: Duration: 5,5 months Effort: 5.000 Mhr Team size: 6,7 fte Cost: € 430.000 Example Scenario 2: Duration: 5,2 months Effort: 5.500 Mhr Team size: 7,5 fte Cost: € 480.000 Example Scenario 3: Duration: 4,8 months Effort: 5.900 Mhr Team size: 8,3 fte Cost: € 530.000 Example Scenario 4: Duration: 4,5 months Effort: 6.300 Mhr Team size: 9,4 fte Cost: € 620.000 Example Scenario 5: Duration: 5,8 months Effort: 5.200 Mhr Team size: 6,2 fte Cost: € 400.000 Example Scenario 6: Duration: 6,1 months Effort: 4.900 Mhr Team size: 5,8 fte Cost: € 380.000 Example Scenario 7: Duration: 6,3 months Effort: 4.700 Mhr Team size: 5,5 fte Cost: € 360.000
Metric questions… answer Q1 Q1: What is your productivity for Java projects? Which duration? Which size? Which technical complexity? Other influences?? PDR = 12,2 PDR = 8,2 18 Impossible Unpractical Effort (hour) Duration
Metric questions… answer Q2 ,[object Object],[object Object],[object Object],[object Object],[object Object],4 months 8 months 19 Impossible Unpractical Effort Duration
Metric questions… answer Q3 ,[object Object],[object Object],[object Object],[object Object],[object Object],967 €/FP 643 €/FP Impossible Unpractical Effort Duration
Client: Evaluating bids ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of high and low estimates
High and low estimates in practice 10.000 5.000 hours 3.000 hours 7.000 hours 7.000 Estimation Result ! 7  A Realization (hours) 5.000 15.000 C B Fails 10.000  hours 12  months B: Realistic  5.000 hours 7 months  Successful ! Efficient! 5.000  hours months Successful ! Not efficient ! 7.000 hours   11 months A: Optimistic  3.000 hours 5 months  C: Pessimistic  7.000 hours 11 months
Assess Reality ISBSG 24 MIN PROB MAX Size  in FP 370 400 520 PDR  in hours/FP 6.4 7.5 9.4 Effort  in hours 2400 3000 4900 Duration  in months 4.0 5.0 5.8 Cost  x € 1.000,= 220 275 450 Cost  in euro/FP 589 688 865
Selecting the right partner ISBSG ,[object Object],Price  €/FP Duration  mnth Realistic scenario 589 - 865 4.0 – 5.8 Bids IT department / suppliers Price  €/FP Duration mnth Proposal 1 850 4 Proposal 2 610 5 Proposal 3 540 3
Assess Reality Tool (QSM) Proposal Productivity (hour/FP) 1 8,5 2 6,1 3 5,4
Assess Reality Tool (QSM)
RFP Question should include ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example RFP Question ,[object Object]
Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Next steps ,[object Object],[object Object]
H.S. van Heeringen [email_address] Twitter @haroldveendam Thank you for your attention

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Request for Proposal (RFP) management - Ask the right questions and choose wisely

  • 1. Request for Proposal (RFP) Management Ask the right questions and choose wisely! Harold van Heeringen Sizing, Estimating & Control [email_address] www.twitter.com/haroldveendam Rome, June 2010
  • 2.
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  • 7. Generic Estimation Model Size Size Defects Effort Duration Defects Productivity Metric: Size Function points Metric: Size Function Points Metric: Effort Number of hours Manpower buildup Peak staff Metric: Duration Number of weeks Metric: Quality Number of defects Metric: Process productivity Skills and experience team Development environment Complexity Quality Management System External influences Need Software Energy Software development process Waste Time
  • 8.
  • 9. Size: Cone of uncertainty time Concept Definition High Level Design Low level Design Realization Idea Why What How Size: Function Points RFP 4x 3x 2x 1x 0.8x 0.5x Project Rate 1 4 2 3 3 1 4 1 5 1 6 2 7 4 8 4 9 5 10 5 Average 3
  • 10. Metric: size time Size in FP Concept Definition High Level Design Low level Design Realization Idea Why What How Size: Function Points RFP
  • 11.
  • 12. Scenarios Estimate / Business Case Cost depended on Time-to-market Example Scenario 1: Duration: 5,5 months Effort: 5.000 Mhr Team size: 6,7 fte Cost: € 430.000 Example Scenario 2: Duration: 5,2 months Effort: 5.500 Mhr Team size: 7,5 fte Cost: € 480.000 Example Scenario 3: Duration: 4,8 months Effort: 5.900 Mhr Team size: 8,3 fte Cost: € 530.000 Example Scenario 4: Duration: 4,5 months Effort: 6.300 Mhr Team size: 9,4 fte Cost: € 620.000 Example Scenario 5: Duration: 5,8 months Effort: 5.200 Mhr Team size: 6,2 fte Cost: € 400.000 Example Scenario 6: Duration: 6,1 months Effort: 4.900 Mhr Team size: 5,8 fte Cost: € 380.000 Example Scenario 7: Duration: 6,3 months Effort: 4.700 Mhr Team size: 5,5 fte Cost: € 360.000
  • 13. Metric questions… answer Q1 Q1: What is your productivity for Java projects? Which duration? Which size? Which technical complexity? Other influences?? PDR = 12,2 PDR = 8,2 18 Impossible Unpractical Effort (hour) Duration
  • 14.
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  • 17. Cost of high and low estimates
  • 18. High and low estimates in practice 10.000 5.000 hours 3.000 hours 7.000 hours 7.000 Estimation Result ! 7 A Realization (hours) 5.000 15.000 C B Fails 10.000 hours 12 months B: Realistic 5.000 hours 7 months Successful ! Efficient! 5.000 hours months Successful ! Not efficient ! 7.000 hours 11 months A: Optimistic 3.000 hours 5 months C: Pessimistic 7.000 hours 11 months
  • 19. Assess Reality ISBSG 24 MIN PROB MAX Size in FP 370 400 520 PDR in hours/FP 6.4 7.5 9.4 Effort in hours 2400 3000 4900 Duration in months 4.0 5.0 5.8 Cost x € 1.000,= 220 275 450 Cost in euro/FP 589 688 865
  • 20.
  • 21. Assess Reality Tool (QSM) Proposal Productivity (hour/FP) 1 8,5 2 6,1 3 5,4
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  • 27. H.S. van Heeringen [email_address] Twitter @haroldveendam Thank you for your attention

Notas do Editor

  1. Sogeti Nederland B.V.
  2. Sogeti Nederland B.V.
  3. Sogeti Nederland B.V.
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  8. Sogeti Nederland B.V.
  9. Sogeti Nederland B.V. Een veel gehoord bezwaar tegen het meten van de omvang is dat het pas in een veel te laat stadium mogelijk is. Wat men meestal bedoelt is dat het moment waarop dat met 100% betrouwbaarheid kan veel te laat ligt. Dat wil niet zeggen dat omvang niet in een eerder stadium gemeten kan worden . . . er zit alleen een bandbreedte aan. Pas op het moment dat het functioneel detailontwerp klaar is, dus als de requirements op het niveau van waarom en wat gedefinieerd zijn, is de functionele omvang min of meer stabiel. Is dat erg? Er zullen vaak meer aspecten van een business case een bandbreedte kennen. Daarop valt prima te sturen. Waar je naar moet zoeken is een acceptabel optimum tussen de onzekerheid die je wilt accepteren en de snelheid waarmee je beslissingen wilt kunnen nemen.
  10. Sogeti Nederland B.V. Een veel gehoord bezwaar tegen het meten van de omvang is dat het pas in een veel te laat stadium mogelijk is. Wat men meestal bedoelt is dat het moment waarop dat met 100% betrouwbaarheid kan veel te laat ligt. Dat wil niet zeggen dat omvang niet in een eerder stadium gemeten kan worden . . . er zit alleen een bandbreedte aan. Pas op het moment dat het functioneel detailontwerp klaar is, dus als de requirements op het niveau van waarom en wat gedefinieerd zijn, is de functionele omvang min of meer stabiel. Is dat erg? Er zullen vaak meer aspecten van een business case een bandbreedte kennen. Daarop valt prima te sturen. Waar je naar moet zoeken is een acceptabel optimum tussen de onzekerheid die je wilt accepteren en de snelheid waarmee je beslissingen wilt kunnen nemen.
  11. Sogeti Nederland B.V.
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  18. Sogeti Nederland B.V.
  19. Sogeti Nederland B.V. Al in de definitiestudiefase kun je een bandbreedte vaststellen. Als je businesscase gebaseerd is op een time-to-market van 3 maanden en een maximale IT-investering van anderhalve ton kun je al in een vroegtijdig stadium vaststellen dat deze business case niet succesvol gaat worden. Op deze sheet is een voorbeeld gegeven hoe scopemanagement zou kunnen werken op een Javaproject van ons Nederlands deliverycenter in de definitiestudiefase.
  20. Sogeti Nederland B.V. Vanuit het scopemanagement zijn grenzen aangegeven waarbinnen een realistisch voorstel voor het IT-project zich zou kunnen bevinden. Als een voorstel én goedkoper én sneller is dan de meest optimistische inschatting vanuit het scopemanagement is er een vrij grote kans dat dit voorstel niet realistisch is. De inzet van scopemanagement wijst dan uit dat het goedkoopste voorstel niet het beste voorstel hoeft te zijn.
  21. Sogeti Nederland B.V. Al in de definitiestudiefase kun je een bandbreedte vaststellen. Als je businesscase gebaseerd is op een time-to-market van 3 maanden en een maximale IT-investering van anderhalve ton kun je al in een vroegtijdig stadium vaststellen dat deze business case niet succesvol gaat worden. Op deze sheet is een voorbeeld gegeven hoe scopemanagement zou kunnen werken op een Javaproject van ons Nederlands deliverycenter in de definitiestudiefase.
  22. Sogeti Nederland B.V.
  23. Sogeti Nederland B.V.
  24. Sogeti Nederland B.V.
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  27. Sogeti Nederland B.V.