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10.2 Module 2: Burn-down Charts and Value Scorecards It’s all about getting a handle on what’s left to be done

Module 2—Objectives Discuss and explain the burn-down chart as a project management tool

Discuss and explain the WIP chart, also as a project management tool

The Burn-down Chart Somewhat different from traditional practices, agile projects usually maintain some version of these two valuation management tools:

1. A burn-down chart—sometimes done upside down as a burn-up chart—measures backlog completed (a.k.a. burned) and backlog remaining, usually in hours of effort.10 (http://content.thuzelearning.com/books/Goodpasture.7968.17/sections/ch230#ch10fn10)

2. A WIP chart that shows the status of work in process, whether following a Kanban process or not.

Since neither of these charts is intended to directly show the preferred sequence of work within a backlog, usually a planning chart showing sequence of remaining backlog is maintained.

Such sequence planning may have as inputs, functional or technical constraints—or planning inputs may be a matter of customer priority.

Since sequence is dynamic, and subject to customer demand as well as other project factors and constraints, a virtual or physical whiteboard is commonly used to keep all the backlog constituents in their proper place in the development or construction queue.

Burn-down Chart Characteristics The burn-down chart—sometimes implemented as a burn-down table of values rather than a chart of values—has these characteristics and features:

Remaining hours: This is a plot of remaining hours (or effort) versus the project timeline. Usually remaining hours is the vertical scale; the project timeline is the horizontal scale.

Velocity: Unless there is information to the contrary, the slope of the plot is the team’s velocity benchmark in units of remaining hours per unit of the project timeline.

Discontinuous plot: As the backlog changes because of new or abandoned items, and the accumulation of technical debt, the plot may have discontinuities as remaining hours step up or down as the backlog steps up or down.

Planning plot: Before work starts, a planning or target plot is made; this plot is of uniform slope and at the team velocity.

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Work sequence: There is no work unit sequence shown on the burn-down chart. Sequence is maintained on the WIP board.

Retrospective planning: After the project begins, all estimates and plans about revising the burn-down chart are reviewed during the retrospective review at the end of each iteration or release. Some teams schedule a separate meeting speci�ically to clean, refurbish, or reorganize the backlog. Like any database, over time it becomes untidy.

Figure 10.2 shows a typical burn-down chart. Perhaps the hardest concept to grasp when looking at Figure 10.2 (http://content.thuzelearning.com/books/Goodpasture.7968.17/sections/ch221#�ig10-2) is that the remaining hours are not what’s left in the budget, nor are they some effort derived from percent complete, but rather the remaining hours are the hours of effort required to �inish and achieve the status of done, as evaluated in the retrospective reviews.

Figure 10.2 Burn-down chart

Burn-down Chart Example A simple example of a burn-down applied to a project is provided in the Appendix to this chapter. In it, you will see that value accumulates as the backlog is burned down and the remaining hours (a.k.a. remaining effort) march toward zero.

In contrast to the burn-down chart is its close cousin the burn-up chart. The advantage of the burn-up chart, the so-called inverted chart, is that it is a true value accumulation chart. Value accumulation starts

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at zero, meaning that no value has been attained—and ends when the last backlog object is delivered and done.

The WIP Chart When the team begins work on a speci�ic story or use case from the backlog, the sequence of work steps and work status of each entity is maintained on a WIP chart or table.11 (http://content.thuzelearning.com/books/Goodpasture.7968.17/sections/ch230#ch10fn11)

WIP Chart Characteristics There are multiple ways to build and maintain a WIP chart or table, but all versions share these characteristics:

Each backlog item that is work in process is uniquely identi�ied.

Each backlog item includes a story, use case, or speci�ication.

There is a de�ined and stationary sequence of steps for a backlog item to traverse from beginning to end.

All items may not follow the same sequence; thus, the sequence may depend on the nature of the entity and its development needs.

There may be a timeline associated with the sequence, but usually not. Usually, the time metrics are:

Time of entry into a particular sequence step

Time accumulated at a sequence step

Time of exit from a sequence step

Items can be abandoned at any step; held at any step for some external condition to be satis�ied; moved to the next step when the step criteria is satis�ied; and retired at the end of the sequence.

WIP Chart Example Figure 10.3 (http://content.thuzelearning.com/books/Goodpasture.7968.17/sections/ch221#�ig10-3) shows a WIP chart. In the Kanban methodology, the WIP chart is the Kanban board. There are several points to note from Figure 10.3 (http://content.thuzelearning.com/books/Goodpasture.7968.17/sections/ch221#�ig10- 3) that are explained below in the section on management actions.

Management Actions There are several management actions attendant to the WIP chart:

WIP limit: Only so many balls can be in the air at one time, so the number of backlog items that can be started and kept in a WIP status is limited. There are practical considerations, but often a WIP limit is a matter of project or team policy, rendered according to experience.

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Criteria for advancement: Moving from one step to another is sometimes moving from one workstation to another, and that next workstation may be remote or virtual. Thus, a WIP item should be promoted from one step to the next only according to some criteria determined for each step.

Feedback: WIP processes should not be open loop, meaning backlog items are started down the WIP sequence with no feedback. This is especially so if the workstations are virtual or remote. Often systems or process without feedback are not stable and prone to chaotic or unpredicted performance. At the very least, feedback is needed in order to manage WIP limit, and to correct errors before they propagate further.

Veri�ication: When an item is done and to be retired, some veri�ication of functionality and/or performance is required. The test script, use case, story, and speci�ication are all applicable to veri�ication.

Linkage to burn-down chart: When an item is done, the hours remaining are deleted from the burn-down backlog; a revised estimate of the WIP and the un-started backlog is made and transferred to the burn-down chart.

Figure 10.3 Work in process

Module 2—Discussion for Critical Thinking In many ways, the burn-down chart and WIP chart, in concert with the projects synchronizing milestones, can take the place of project task-level schedules. Does this fact give you pause? Is it apparent that you can run the project off of a spreadsheet rather than a scheduling tool?