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Agile Management for Software Engineering: Applying the Theory of Constraints for Business Results by Eli Schragenheim, David J. Anderson

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Chapter 27. Financial Metrics in XP

Inventory in XP

The unit of Inventory in XP is the Story Point. The Inventory in the system of software production is the total Inventory being held in the set of Story cards for the project: Stories waiting to be started, Stories in-progress, and Stories completed but not yet delivered.

Investment in XP

In Chapter 2, Investment (I) was defined as the money sunk in the total Inventory (V) of raw material. In software terms, Investment is the cost of acquiring the ideas for the product to be developed in the form of requirements.

In XP, Investment is defined as all the costs involved in creating the working set of Stories. Any upfront activity conducted by the business to generate ideas for a new product ...

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