I have recently accepted the chair position with  Association of Proposal Management Professionals (APMP) cost task force.  I will be starting up the regular telecons in a few weeks.  I must admit when I was first drafted onto this task force a couple years ago I had never heard of APMP.  But having worked with them and attended their last two conferences I must say I am very impressed with the organization.

For those already on the task force I will be contacting you in the next few days.  For those that would like to help improve the ability for costs to reflect actuals please send me an email and get on this task force.

The charter of this task force follows:

1. 1. Statement of the Issue.

There are often large differences between an offeror’s proposed cost and the Government’s realistic or Most Probable Cost. This task force will involve Government and Industry Cost experts to discuss/brainstorm possible reasons.  It may require discussing or mapping each other’s processes to determine where these disconnects may be.

1. 2. Goal of the Task Force Effort.

• To identify disconnects between offerors’ approaches in developing cost proposals and the Government’s approach to evaluating cost proposals (including performing realism analysis and developing Most Probable Cost).

• To minimize differences between the proposed cost and the Government’s Most Probable Cost that is due analysis approach differences (e.g., Government point estimate or a 50% probability approach vs. an offeror’s 10% best case approach.)

Related posts:

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2. APMP Cost Taskforce November 2011: Helping Calm the Storm of Budget Cuts Via Cost Analysis During the November 2011 meeting the APMP cost task force...
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We have some exciting events coming up this month with the first: The Future of Software Analysis and Measurement on October 12, 2011. I am really excited to share the virtual podium with Bill Curtis, Senior VP and Chief Scientist of CAST Corporation and with David Herron, David Consulting Groups VP of Knowledge Solution Services as moderator.

Bill and I both spoke at a software engineering conference last year and I got very excited about his work in software analysis with CAST. Besides Bill being an engaging speaker his content was very illuminating, covering issues of existing software, its complexity and reliability. He ev!–more–
en showed the number of latent defects in software of various languages. I have greatly summarized some of the a href=http://www.galorath.com/wp/software-defects-in-fielded-software-cast-analysis.phpsoftware defect conclusions /aelsewhere on this BLOG and CAST has been instrumental in recognizing and quantifying the a href=http://www.galorath.com/wp/500-billion-it-debt-for-deferred-maintenance.phptechnical debt/a

And with David Herron, one of the most knowledgeable people in the measurement community, this should be a do not miss event.

Details of the event follow as does a link to signup. Hope you can make it.
blockquotestrongThe Future of Software Analysis and Measurement/strong

October 12, 2011 8:00am Pacific, 11:00am Eastern, 4:00pm London

a href=http://www.castsoftware.com/news-events/event/future-of-sam?gad=glrClick this Webinar Link to sign up/a

Join us on October 12th to hear from an exciting lineup of experts on the Future of Software Analysis and Measurement: Dan Galorath, President CEO of Galorath Inc and Bill Curtis, SVP Chief Scientist, CAST will have an engaging discussion moderated by David Herron, VP, Knowledge Solution Services, David Consulting Group.

These industry veterans will share experiences with their client’s software development processes and discuss how Software Analysis and Measurement tools coupled with Parametric Estimation models can impact organizational performance through increased ROI, customer satisfaction and business value.

The panel will provide insightful and actionable steps that will make an immediate impact on your strategy including how to:

• Drive organization value by fueling Estimate and Measurement practices within an enterprise

• Build the funding rationale through proven economic impact models

• Establish the ROI from Estimate and Measurement practices and process/blockquote

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Here is a copy of my keynote talk at the 2011 ISMA measurement conference, Measurement and Management and Business Value.  The real point is the IT and measurement personnel have the information, knowledge and skill set to provide value to the business, far beyond the costs generate.  But the information needs to be communicated in terms leaders can understand rather than the techie language we all think and speak in… AND if IT starts showing how it contributes to the business and becomes a profit center instead of a cost center IT will get more money to apply to more valuable things.

UPDATE: Someone also asked for a reference communicating the language of management.  I believe this publication on business case analysis to be helpful in that regard.

PS In my talk I referred to software and measurement people as geeks.  To many the term geek is a source of pride.  One person in the talk was offended by being called a geek.  My sincere apologies.  However modern vernacular often defines a geek as a lover of technology, a software developer or someone with an intense love of mathematics.  I consider myself a geek.  And my friend Paul Glen makes his living by “leading geeks.”

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Dan will be speaking at the Chicago SPIN on November 12, 2009 on the topic of controlling software projects.  Estimation, planning, control, metrics, and maintenance for a total ownership cost view will be discussed.

The presentation is here: Chicago SPIN November 2009 Galorath Presentation Controlling Software Projects Development Is Only Job 1

PS Dan looks forward to his short visit to Chicago, his home town.  And is going to carefully avoid pizza, hot dogs, and Italian beef while he is there.

The flyer follows:

Chicago Software Process Improvement Network

(C-SPIN) Meeting

AT&T Center Campus

AT&T Institute 2501 W. Eagle Way at

Lakewood Blvd and Eagle Way, Hoffman Estates, IL 60192

Be sure to check the C-SPIN website (http://c-spin.net/) to confirm details.

SPECIAL DATE: Thursday, November 12, 2009

6:00 – 7:00 PM – Atrium: Registration, Networking, & Light Snacks

6:20 – 6:40 PM – Birds-of-a-Feather Topic – TBD

7:00 – 8:30 PM – Auditorium: Presentation

8:30 – 9:00 PM – Auditorium: Additional Q&A and discussion

Abstract:

Planning software development projects is never easy. Requirements, time-to-market, architectural and quality issues, staffing, risks and many other factors must be carefully considered. Development tradeoffs impact software maintainability andcan significantly impact total cost of ownership. Many factors other complicate software planning.  Software planners tend to underestimate the degree to which code degrades over time. Software development costs are only a portion of the total cost of ownership. Software maintenance can often be up to four times the initial development cost.

This session will provide a systematic approach to addressing total cost of ownership across the software lifecycle, including design for maintainability, development of measurement criteria, collection of metrics, and industry standards, guidelines, and best practice options. Parametric modeling will be discussed using the SEER platform as a specific example. Estimating block changes and their potential interdependencies and impacts will also be covered.

Biography

Over a period of three decades, Dan Galorath has established a reputation as a leading expert in project estimation, analysis, management and control. He has literally written the book on the subject (Software Sizing, Estimation and Risk Management, Auerbach Publishing). Dan realized early that there was a better way to develop accurate project estimates. Today SEER ® analysis tools from Galorath Inc. are saving millions of dollars for organizations worldwide. Galorath’s customer base reads like a who’s who of American and European industry: Airbus, Bank of America, Boeing, Ford Motor Company, Lockheed Martin, NASA, Raytheon, Siemens, and the U.S. Army, Navy, and Air Force, etc.

Dan lectures internationally and has published numerous articles and papers on software cost modeling, testing, software lifecycle error prediction and requirements definition. Dan was named winner of the 2001 International Society of Parametric Analysts (ISPA) Freiman Award presented to individuals who have made outstanding contributions to the theoretical or applied aspects of parametric modeling. Dan also received the 2009 lifetime achievement award for his contributions to estimation, planning and control from The Society of Cost Estimation and Analysis (SCEA)

Driving and Parking Directions

From I-90 Northwest Tollway, exit North on Barrington Road; take Barrington Road to Lakewood Blvd (2nd light) and turn East (right) onto Lakewood Blvd.  Turn right into the AT&T Campus Center’s West Employee Entrance (the first entrance past Eagle Way) and follow the signs to the West Parking Structures.  Parking in covered lot W3 is recommended.  Look for parking spaces near the west entrance/exit of parking structure W3. Then walk west from the parking structure to the Institute Building to the main door, which has a big ENTRANCE sign over the door.  The Institute is approximately 100 yards from the parking structure–back across the road you came on.  Visit http://www.c-spin.net for a map of the AT&T Campus Center.  (Additional parking is available in covered lot W2 as well as upper level parking lot W1.)

About C-SPIN

C-SPIN is a leadership forum for the free and open exchange of software process improvement experiences and practical ideas. We promote achieving higher levels of process maturity, software quality, and mutual respect. Companies, academic institutions, government organizations, and individuals are invited. For information about C-SPIN or the steering committee, contact Karen Mermel at kmermel@yahoo.com.

To receive future announcements electronically, register your e-mail address (include name, personal email address, company, and phone number) http://c-spin.net/newsletter/

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It was exciting to participate in a seminar with Computer Aid and their ITMPI recently.  Here we discussed concepts of software management and how Galorath’s SEER with project estimation, planning and control supports CAI’s Tracer product witch does root level process and task management.

Jim Ryan first spoke and discussed how the manufacturing revolution worked and how much of the success in manufacturing process and process measurement can be applied to software development.  And excellent presentation that made a lot of points really apparent.

Next Dan Galorath went through software management techniques (click link to view presentation) that most likely yield successful projects, including estimation (cost estimating, schedule estimating, defect insertion/ removal estimation an more), planning, control, measurement, commitment and other items.

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I just had the opportunity to review the agenda for this one day, no-cost seminar.  I was very impressed.  Be sure to sign-up today if you can make it.

Combining Process Enforcement and SEER to Ensure Project Success by Bob Lawhorn, Computer Aid / Computer Aid’s ITMPI  and Dan Galorath, Galorath Incorporated            
Mr. Lawhorn has found that automation of well engineered processes along with process enforcement provide project management with the necessary visibility and control to virtually guarantee the operational success of projects. CAI’s process control software that oversees and controls the software process achieves dramatic improvements in cost (reductions of 30 to 40%). SEER also plays a role in providing realistic, achievable plans. Additionally Bob will provide an introduction to Tracer, Computer Aid’s process enforcement tool.

Mr. Galorath will discuss the reasons for software project failure along with project failure solutions. Galorath’s estimate maturity model will be discussed along with an introduction to successful software processes and CAI’s Tracer process enforcement tool.
 

SEER Mainframe Migration Estimate by Terry Vogt, Senior Software Cost Estimator, Booz Allen Hamilton                                                                                                                                                                        
This presentation will describe use of SEER for Software to produce a series of estimates for a project to migrate software to a new environment. The objective of the estimate was to provide information on the effort and schedule duration required to migrate this critical application. That information had to be developed in such a way that it could be used in a variety of planning and evaluation scenarios.

Next Generation Cost Estimating Tools: SEER for Software Integration with the Joint Integrated Analysis Tool (JIAT) by Daniel L. Schwartz, Senior Operations Research Analyst, ODASA-CE and Darren Elliott, Dir, Product and Service Operations, Tecolote Research     
A major challenge for U.S. Army cost analysts is to bring together current engineering design, capability, and performance data in their cost estimating processes and analyses. JIAT is a web-based architecture designed to provide seamless linkages between tools and provide near-real time cost estimating capability to the cost, acquisition, requirements, and modeling and simulation communities.by Gary Hellenga, Booz Allen Hamilton                                                                                                 
This presentation will demonstrate tools and processes Booz Allen Hamilton estimators developed to support estimation work for NASA’s new manned space exploration program, Constellation. The key tool is a Microsoft Excel workbook that acts as a front-end to the SEER for Software or SEER for Hardware applications, using Automation to leverage the SEER model’s Server Mode capabilities to create SEER cost models from data in the workbook, and saving SEER estimate report data in the workbook upon completion.

Streamlining and Automating the Cost Estimation Process Using Excel and SEER Products

A Calibration Approach by Darlene Williams, Project Cost Engineer, Northrop Grumman Corporation

This presentation will provide an overview of an approach to perform a calibration using a methodology that offers structure and repeatable approach using SEER for Hardware, Electronics & Systems and SEER for Software.

Life Cycle Model-Based Improvement of SEER for Software Schedule Estimates by Dr. Peter Hantos, Sr. Engineering Specialist, and Nancy Kern, Sr. Project Leader, The Aerospace Corporation

The research carried out at Aerospace is introducing the concept of schedule-focused estimation. This approach reflects the realities of acquisition, i.e., most of the programs we are dealing with are schedule-driven. It is not the authors’ objective to discuss the pros and cons of focusing on schedule; the objective is simply to devise an approach that would make such schedule-centric planning easier and the associated estimates more accurate.

Combining a schedule simulation model with SEER for Hardware, Electronics & Systems model to forecast funding impacts to various program milestones by Luke Sayer, Cost Estimating and Risk Analysis, Northrop Grumman Corporation, Aerospace Systems    
This presentation is a result of an actual study and the innovative approach used to determine the impact of differing funding levels and funding profiles on program schedule milestones.

How do you model a Manifesto? David W. DeWitt, Galorath Incorporated

 “SaaS,” “In the Cloud,” “Agile” – what are these things and how the heck does one model a manifesto?  Today’s estimators are finding it increasingly more difficult to understand even the vocabulary of new methods, let alone how to size them.   This paper will demonstrate how to isolate the key parameters clouded by new terminology.  Once the underlying representation is understood – the easier it is to accurately model the problem. 

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Thirteenth Annual Practical Software and  Systems Measurement Users’ Group Conference

Call for Speakers 

 “Measurement in a Dynamic Business and Government Environment”

 The conference provides the opportunity for PSM users and measurement practitioners to share experiences in issue-driven measurement and learn about changes in the measurement community.  Attendees will also participate in planning future PSM initiatives, products, and services.  The conference will include PSM training, keynote and user presentations, and workshops.  Measurement users and measurement professionals from DoD, government, and industry are encouraged to attend.

 Preliminary Agenda

Monday          Registration, PSM Training, PSM Trainer Refresher Training (qualified trainers)

Tuesday          Welcome, Keynote, User Presentations (a.m.), Workshops (p.m.)

Wednesday     User Presentations (a.m.), Workshops (p.m.), Conference Dinner

Thursday        User Presentations (a.m.), Workshops (p.m.)

Friday             User Presentations (a.m.), Workshop Outbriefs (a.m.), Conference Wrap-Up at noon

If you use measurement in your organization or have a measurement-related experience that could benefit others, you are encouraged to propose a presentation and/or workshop for the conference. 

Presentations

We are particularly interested in the experiences of measurement practitioners in areas related to the conference theme, “Measurement in a Dynamic Business and Government Environment”.  We welcome submittals about measurement, related to how measurement is keeping pace with the changing economic situation, changing goals and missions, new laws, policies, technologies, and changing information requirements at the enterprise, organization, and project levels.  Some related ideas include:

• Implementing and using fact-based information in an uncertain world
• Using measures to improve efficiencies and drive performance improvement during times of economic uncertainty
• Measurement to support improved life cycle decision making in an evolving environment
• Increasing collaboration and transparency through the use of measurement
• Defining decision context and increasing usage of measurement results
• The interfaces between enterprise and project measurement
• Business intelligence using fact-based measurement and risk management information

Presentations should last 45 minutes, and should provide experience-based guidance and information for conference participants.  As always, actual implementation experience is highly valued.  Presentations may provide:

• Examples of measurement implementations in specific projects, programs, or processes
• Case studies, trends, or other experiences with organization and enterprise measurement
• Current initiatives and progress with industry standards or best practices in measurement
• Recent developments and lessons learned with respect to any type of measurement driven by information needs.

Workshops

Workshops should focus on developing guidance for specific areas of measurement.  Attendees will be asked to bring specific materials to share and practical guidance and examples will be developed.  All workshop results will be posted on the web site.  Workshops last 3½ hours. 

Potential topics for workshops that we are interested in including are:

• Decision Making in Engineering Management
• Organization/Enterprise Measurement
• Risk Management and Measurement
• Advanced Analytical Techniques – Six Sigma Measurement
• Systems Engineering Leading Indicators
• Systems and Software Estimation
• Measurement for Service Management
• Acquisition Measurement: Case Study
• PSM Training Update

Please send your proposal(s), via email, to: Cheryl Jones at psm@psmsc.com

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I will be speaking on estimating process yielding project success at the Computer Aid Seminar in Detroit On April 30, 2009.

My message will be that spending time on estimation and planning yields more successful projects and fewer project surprises.  And I will go through the 10 step process.  Additionally I will introduce Galorath’s estimation maturity model.

I am excited to speak along with Ed Yourdon, Larry Dribin, and CAI’s Bob Longhorn.

It should be a great event.  I have participated in these with Larry and Bob in the past, and I am a lifetime fan of Ed.

I believe we will be doing the same genre in Toronto later in the year.

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Follow this link to see some of the estimating united papers.� it was a great conference, full of useful information. Talks encompassing cost estimating (cost estimation), value engineering, product design, software, and more.

And thanks again to all the speakers and attendees as well as the hospitality of the Manchester United Football (soccer) club. And the Galorath staff whose diligent efforts made this a great success. Presentations will be available for all to download for the next few months, then will be available as part of the Galorath corporate library.

Galorath Conducts 5th Worldwide Conference on Project Estimation: Estimating United

On March 19th, 2009, Galorath conducted its 5th annual worldwide conference on project estimating. The conference title, Estimating United, was fitting both for its venue and content. The venue was Old Trafford, Manchester, United Kingdom, home of the world famous Manchester United Football Team. The content included presentations in two tracks from a variety of world class company participants, all united in their efforts to improve project estimation practices. Presentations covered a variety of topics in the area of project estimation, planning and control.

In recognition of their contributions to project estimation, two awards were presented at this year’s conference — one to Charles Symonds for his outstanding work and contributions in the field of software estimation and the second to Alan Jones of BAE Systems for his continued efforts to provide both a platform of knowledge for less experienced cost engineers and for his dedication to the Association of Cost Engineers activities to bring to our profession a “tiered approach to accreditation.” They join past recipients of this award which include Raj Roy, Cranfield University; David Reuss, Rolls Royce; and John Henson, AgustaWestland.

The 2nd SEER conference of the 2009 series will be held in El Segundo, CA on October 8th and 9th, 2009.

Presentations

Life Cycle Costing Capability in an International Organisation for Armament Cooperation

OCCAR-EA is an International organisation with full legal personality since 2001. It was created to co-ordinate, control and implement co-operative armament programmes that are assigned to it by the Member States. Today OCCAR is managing 7 Programmes with a total portfolio of 44 billions Euros. OCCAR is clearly tasked from its Convention to identify Cost Effective options to the nations both during Development and Production and for the In Service Phase of a Programme.  In this frame, OCCAR-EA has developed a Life Cycle Costing capability within the general approach of Through Life Management.  This allows the identification of common and cost effective solutions and informs the decision makers on these opportunities. The presentation will show the steps followed to set up this capability and will point out the specifics linked to an international Agency, a snapshot of the process in place, and the types of studies that have been performed.

Chairman’s Welcome and Opening Remarks

Carl Dalton introduces the day’s events, runs through the timings and housekeeping and introduces the Galorath team and the presenters.

The Value of Cost Estimating for Cost Management

Costs are determined in the very early stages of the Product Creation Process. Not using this fact, but only to focus on ‘solving technical puzzles’ or stressing Time-to-Market is a missed opportunity that in the end makes the business less competitive. In many companies Cost estimation can be a very valuable tool for purchasing in determining the “should cost” if only used in this way however cost estimation becomes a “purchasing tool” only.Changing to Target Costing means: Define the Customer Value before development starts, and derive the Target Cost from this. Then start studies to address the economic feasibility of new products, using cost estimation and cost driver analysis. This way cost estimation becomes a strategic decision support tool with less need to repair costs later on.Goof will address the following during his presentation:

• How we used to address costs (not)
• Change to Target Costing
• Role of Cost Estimation for target costing
• Some Examples of Cost Reduction achievements using Cost Estimation

Procurement Costs – Transparency and Assurance

Procured Equipment, Material and Services represents over two thirds of the initial cost of a military air platform and the resulting through life support activity. In the current climate of partnering and price transparency linked to a business environment increasingly focussed on ethical conduct, commercial parametric estimating models can provide confidence for both supplier and customer through open cost modelling based on industry standards of performance.This presentation will outline the current activity at BAE Systems – Military Air Solutions aimed at achieving these goals.

Understanding the Mysteries of MOD Support Costs

The costs incurred during the service life of equipment are a significant proportion of the whole life cost. However, these costs are not well understood and there are inconsistencies within the MOD as to how these are collected, collated and used. These costs are also used within the analysis at Dstl to inform high level Balance of Investment (BOI) decisions and it is therefore imperative that these costs are included as accurately as possible. The Support Costs study, funded by Director Equipment Plans (DEP), was commissioned to address this problem.The presentation will cover how the project team tackled the problem and explore some of the conclusions from the work.

Embedding Galorath’s Estimating Tools into a Project & Programme Management Suite

In this presentation we will show how the Galorath estimating tools have been integrated into Ninth Wave’s Project & Programme Management (PPM) suite.In most PPM products estimates for projects are entered manually and there is no audit trail provided for senior managers to see how the estimate was derived. Ninth Wave has enhanced its PPM suite to be able to generate an estimate automatically into a project by using the Galorath products in a “black box” fashion.The key benefits of this integrated approach are:

• estimating best practice is embedded into project management across the organisation
• drill-down capability to understand key inputs and drivers for an estimate
• ability to model different scenarios with just a couple of mouse clicks
• audit trail provided for all steps associated with generating an estimate

Software Sizing – the weakest link of estimating?

Charles Symons presents data on the performance of the software industry which in certain respects is dreadful. Evidence will be shown suggesting that this poor performance is at least partly due to weaknesses in performance measurements and in estimating. By “estimating”, we mean:

• initial estimation of the product size,
• methods for estimating project effort and duration from the initial size,
• processes by which estimating is integrated with project management,

where the first of these elements is the weakest link (though the third is also often weak).

The talk will then trace the development of methods of sizing software from using SLOC, to Albrecht’s idea of sizing functionality (now the IFPUG method), to the COSMIC method. Charles will briefly compare these methods and show how the COSMIC method overcomes weaknesses of earlier approaches.

What’s New and “Dan Galorath on Estimating”

What’s new and what’s coming in SEER will be featured.Additionally Dan will discuss selections from his blog. Dan will discuss selections from metrics, effectiveness measurement, the real costs of a variety of undertakings, what is ITIL versus ISO 9000, the risk of IT projects, what the assets of failed banks really are worth, and lots more. He weighs in on a wealth of topics both timeless and contemporary.

Computer-aided Business Case Assessment in Engineering Design Education

In all engineering initiatives the only acceptable basis for launching a product development programme is one in which low risk and high return-on-investment in the shortest possible timeline is secured. Up to 80% of the life-cycle cost of most high valued-added engineered products is incurred during the conceptual design phase, and, by the time completion of the design and development stage occurs 95% of the product cost is fixed and most of the development cost is spent. The University of Bristol, Department of Aerospace Engineering, and, the Department of Engineering Mathematics via its Engineering Design degree programme offer many examples of group project orientated education for undergraduates. The major student group projects for academic year 2008/09 include: (1) Airbus UK project “250-passenger Transport Aircraft Optimised for Multi-stop, Long-range Operations; (2) Arup project “Elevated Transport and Entertainment Ride System”; (3) Motorola project “Water Powered Pico Generator for a Mobile Phone Base Station”; (4) Hewlett-Packard project “Personal Carbon Footprint System”; (5) GE Aviation project “Automation of Pitch Control of a Propeller Engine; and, (6) Babcock project “Design Optimisation of a Nuclear Flask ‘Grab’ System”. A review of business case results from the aforementioned student group project work using the Galorath SEER-H cost estimation software will be presented.

Decisions, (Multi-Criterion, Subjective, unbounded), Decisions

The primary objective of this paper is to introduce two alternative methods, Absolute and Empirical Referencing, used to minimize the subjectivity surrounding some of the more crucial processes associated with project management and analysis. The Estimate by Comparison solution developed by Galorath Incorporated will be used as the vehicle to illustrate comparative sizing for the purposes of Parametric Estimation along with a few other more contemporary applications.

Estimation in ERP Environments

• Organisations have ambitious plans when purchasing ERP
• More than 75% believe in quick wins and grand return of investment
• In practice one will go a long way of learning
• 30% – 70% cost reduction is possible
• Therefore one needs a strong strategy in standardisation, developing
• Kknowing the pitfalls and monitoring the principal cost drivers are essential
• Benchmarking and estimating the projects and their environments will bring success
• Example insurance company:
  • Starting up with conventional planning and estimating
  • Gathering facts and figures
  • Switching to ERP environment planning
  • Building up company specific planning data
  • Creating private knowledge base

The 12 Sins of Estimation

Sin is a term used mainly in a religious context to describe an act that violates a moral code of conduct or the state of having committed such a violation. In monotheistic religions, the code of conduct is determined by God. Colloquially, any thought, word, or act considered immoral, harmful, or alternative might be termed “sinful”. Knowingly, and unknowingly, we as estimation experts commit sins in the area of Estimation, leading to harmful effects on the project management, tracking and control. With the premise that not doing wrong things is a way to do the right, the presentation highlights the common sins committed by experts in the field of estimation.Taking into account the current practical realities of business, the presentation explains how we can improve the process of estimation, and how to gather the critical mass required to make change happen in an organization.

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They have been using  TSP for the last 5 years on Quickbooks.  As an example, Quickbooks has a 15 year old codebase and was originally designed for smaller businesses.  But it became the number one accounting software for midmarket businesses as well, generating requirements that were never dreamed of in its original small business design.  The team said, “It is the wrong product for mid market businesses.”  But they were wrong.  They then used this customer driven invention to add in items they would have included initially, had they identified the midmarket as a target initially… For example they reengineered to handle multi-currency.

TSP helped them actually run AHEAD of schedule with less than .6 defects per ksloc.  Normal Quickbooks development  is about 2 defects per ksloc.

Agile

Intuit also uses Agile approaches when “Customer requirements are changing or not known.”  In these situations they apply Agile.  For example TurboTax may have a question that hasn’t been answered.

2 Person team invented the concept called “live community.”  They put into the product itself the ability for customers to both ask and answer the questions.   Team did  agile with 3 week releases. They road tested it in front of customers.  Now on the right hand side of all 20,000 screens are the questions to be asked  and answered. 

Sometimes users made comments as well as answers…    People can also follow threads and add more comments.

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