Digitized and Integrated Estimation Framework Case Study for a Real Life Adoption Pranabendu Bhattacharyya Tata Consultancy Services Principal Consultant. CFPS,PMP TCS – a CMMI Level 5 Organization 46+ 3.931 318,625 120 55+ 97.4 Years in Business Billion US$ in Q3-FY15 revenues Employees* Nationalities Countries where TCS has presence % of revenues from repeat customers Customer-centric Engagement Model Global Network Delivery Model (GNDM™) Full Services Portfolio Innovation Labs and Co-Innovation Network The Need for Predictable Estimates The overall Annual Software Spend (Gartner 2014) - $3.8 Estimation is a critical binding factor Trillion • Software Projects struggle to deliver on scope, schedule, cost, quality and customer satisfaction Quality Cost Productivity Estimation Schedule Budget Profit • Quality of Estimation is a key factor that determines project success If collective estimation accuracy can be increased even by a minimal percentage, it will translate to savings of multi-billion dollars The Challenges in Customer Organization North America based financial corporation with more than 110 years of history • Parent company relationship with TCS for over 10 years • They were keen to improve their predictability in Application Delivery After a recent spin off from their parent conglomerate, they were facing multiple challenges in IT Delivery:       Regular cost and effort overrun(~150-200%) Increased Project Management effort(>40%) Recurring losses due to scrapping of projects Huge costs to induct resources at later stage No vendor performance comparison to augment outsourcing Missing deadlines. Unsatisfied Customer . Poor ROI. Revenue losses Gaps Unearthed - The Goals Set Organizational Gaps Observed Primary Goals  Limited reuse of estimation experience  Unavailability of standardized rules / guidelines  Unavailability of varied estimation techniques  Absence of size estimation technique  No measurement of productivity/defect density  Inability to compare vendor performance  Absence of central repository of estimation  No estimation traceability/version management  No formal estimation review or validation  Implement Standardized Estimation Framework  Integrate with PP  Initiate Organizational Productivity Base Lining  Align with OPM & MA  Digitize Framework  Deploy CM & VER TCS Solution Approach Applied the proven four phased approach for process improvement Deliver & Sustain Project Timeline – 2 Financial Years Deploy Design & Develop Determine Due diligence Portfolio analysis Tailoring needs Customize Integrate Digitize Governance Version Management Integrate framework Educate practitioner Hand hold Estimation Repository Improved predictability Base-line productivity Success stories Sustenance Continuous improvement Integrated Estimation Framework Historical Data Standardized Model Selection Estimation Framework Engagemen t Type Size Estimator Cost Calculator Technology Process Estimation Stage FTE Calculator Schedule Calculator Phase-wise Distributor AD Models Guideline Effort Estimator AM Models (Support Model, CR Model etc.) Appropriate Model Decision Parameters Assurance Models Measurement and Feedback Adaptor driving improvement • Apply Framework suggested models • Define Metrics for measurement and bench mark • Collect feedback and lessons learnt Package Models (Oracle Apps, SAP etc.) Deployment and Sustenance Deployment Cycle Sustenance Cycle Develop, Deploy Deliver, Sustain Create Self-reliance within entities Identify deployment team Handhold Share success stories Identify Low Hanging Fruits Activities Track Process Performance Create Awareness Create rewards and recognition Promote healthy competition Create special initiatives Measure Success Indicators Showcase Benefits Benefits Realized to the Customer Improvement in Scrap Value Reduction  Immediate Benefits Long Term Benefits Best-in-class estimation Effort Variance reduced (5 fold) Improved accuracy Reduced Cost/FP (15% - 41% ) Benchmarked productivity Productivity benchmarks Historical Repository Improved budgetary planning Estimation awareness Easy vendor bid negotiations Estimation traceability CMMi Level 3 Maturity Version management Results… Improvement in Scrap Value Reduction Scrap Value Reduction Process Deployed Productivity Improvement Model Effectiveness Analysis 2 variance bands (+20% & +10%) were defined for Model Effectiveness Analysis • Year 1: 3 Models were used, 26% adoption coverage • Year 2: 2 New Models were introduced along with 3 existing, 55% adoption coverage • Year 3: Coverage 80% The Appraisal Customer attained CMMi Level 3 Maturity on their first assessment. Delight expressed by their Vice President, Enterprise Project Management “TCS's estimation expertise helped us to define and implement strong estimation framework in very short time which helped to reduce the gaps in CMMI level 3 assessments”. Lessons Learnt What We Noticed Metrics program for improvement Collaboration Tailoring Feedback for process refinement Multiple iterations for improvement Continuous improvisation Critical Success Factors 1 2 End to End Coherent and Flexible Framework Keep management/operational costs low 3 Central Repository for estimation data and best practices 4 Estimation Traceability and Governance for improved accuracy 5 Built-in Performance Measurement and Benchmarking 6 Well groomed estimation experts and knowledge pool 7 Self-evolving & sustaining Framework built with closed feedback loop The Next Steps Promote Estimation practices from Inception Continuously refine Estimation Process Compare with Industry benchmarks Nurture estimation expertise & repository