Agile Project Estimating

What You’ll Learn in this Presentation:
•  How estimates are used on Agile projects.
•  How to define estimates.
•  The basics of planning poker to help estimate.
© 2014 Intelliware Development Inc. 2

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Introduction – Agile Planning
•  Planning occurs throughout the development cycle and
is spread across the entire team.
•  “Work the plan, not work to the plan.”
•  A user story is a short description of a function that an
end user would want.
•  Stories serve as a form of currency between the
customers and the development team.

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The Agile Planning Process
• Estimates are needed to support ongoing planning in Agile projects.
• Estimates help to answer the following questions:
o  How many stories can we fit into the release?
o  How many stories will be completed in the next iteration?
o  What are the impacts of adding, removing and changing stories?
Features
Estimate
Size
Determine
Duration
Planning

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What is an Estimate?
•  An estimate is a measure of the relative size, in
terms of effort, of a story.
•  Why focus on size?
o  Estimate size to derive duration.
o  Size can be estimated.
o  Duration is hard to determine due to meetings,
non-work appointments and other distractions that
cannot be estimated.

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1. non-development project time
(e.g. standup meetings), and
2. non-project work time (e.g. internal non-
project meetings, medical appointments).
•  Baseball analogy: the effort to complete a game
is 54 outs or 9 innings, but what’s the duration of
these events – and those in between?
Effort vs. Duration
•  Not separating effort from duration is a common estimating error.
•  In reality, developers (and people in general) are good at estimating the
effort required to complete something but not the time needed.
•  For software, development effort can be estimated but, to determine
duration, additional time needs to be factored in to account for:

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Ideal Time vs. Real Time
•  Ideal Time = effort
o  Time required to complete something
with no interruptions.
o  Represents effort.
o  Can be estimated relatively accurately.
•  Real Time = duration
o  The actual time to complete something.
o  Includes breaks, distractions, delays.
o  Difficult to estimate – must be derived.

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The Value of Estimates
•  Address the Law of Diminishing Returns
o  Make the most efficient use of development
time.
•  Benefits from the input of several people
o  Estimates are shared amongst the team.
• Supports ongoing planning
o  Facilitate planning discussions at the right
level.
• Easy to change
o  Can be revised, split, etc.
The application of the Law of
Diminishing Returns to estimating

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Estimate Values
• Estimates can be measured in terms of:
o  Points.
o  Ideal days.
o  Any other unit of measurement that
makes sense to the team.
•  Common estimating scales:
o  Standard interval – 1, 2, 3, …
o  Fibonacci series – 1, 2, 3, 5, 8, 13, 21, …
o  Doubling interval – 1, 2, 4, 8, 16, …
The Fibonacci Series

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What is Velocity in Estimating?
• A measure of the rate of progress.
• Needed for iteration and release
planning.
• Usually measured in terms of points
or ideal days per iteration.
• Converts ideal time or estimates to
duration.
• Corrects for variability and errors in
estimation.
A typical velocity tracking plot

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How Is Velocity Determined?
Three Primary Methods:
1.  Historical Values
o  Use observed velocity from past iterations.
2.  Test Iterations
o  Run a test iteration and measure actual
velocity.
3.  Forecast
o  Compare available staff hours with story
task breakdown estimates.
Velocity Chart
Another example of a velocity chart

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Planning Poker
•  Recognized as one of the best
ways for Agile teams to estimate
because it:
o  encourages the entire development
team to participate;
o  is easy, interactive, and fun; and
o  facilitates quick consensus on
estimates.

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Planning Poker Procedure
1.  Team meets around a table with cards.
2.  Moderator reads out a story.
3.  Moderator answers questions.
4.  Estimators privately select a size card.
5.  Estimators show their cards.
6.  Any discrepancies are discussed, additional questions
are answered.
7.  Estimators re-estimate by selecting a new size card
and revealing it.
8.  Repeat.

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Planning Poker – Key Things to Remember
•  The moderator can be anyone…product owner, scrum
master, analyst, etc.
•  Keep to the left side of the effort/accuracy curve.
•  Limit each round of discussion to no more than a few
minutes – a timer can help.
•  Convergence is usually reached on the 2nd round.
•  Absolute agreement is not required.
o  5, 3, 5, 8, 5 – this would be sufficient to arrive at 5 as
the estimate.

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For More Information
Mike Cohn’s site contains a good description
of Planning Poker:
http://www.mountaingoatsoftware.com/agile/planning-poker
The Crisp site is also a good source of
Planning Poker basics:
http://www.crisp.se/bocker-och-produkter/planning-poker
Intelliware’s Knowledge Centre contains
several resources on the basics of Agile:
http://www.intelliware.com/knowledge-centre

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About Intelliware Development Inc.
Intelliware is a custom software, mobile solutions and product development
company headquartered in Toronto, Canada. Intelliware is a leader in Agile
software development practices which ensure the delivery of timely high quality
solutions for clients. Intelliware is engaged as a technical partner by a wide
range of national and global organizations in sectors that span Financial
Services, Healthcare, ICT, Retail, Manufacturing and Government.
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Agile Project Estimating

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