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5 Agile Estimation Techniques You Need to Know for Project Success

Agile Estimation Techniques You Need To Know For Project Success1, Project Management Blog
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Accurate project estimation is vital for managing client expectations, allocating resources effectively, and ensuring that projects are completed on time and within budget.

Agile project estimation techniques have emerged as a solution to address the challenges posed by traditional, rigid project management methods.

This blog explores the world of agile project estimation and outlines some valuable techniques for success.


The Need for Agile Project Estimation

Agile Estimation Techniques, Project Management Blog


Traditional methodologies often employ a Waterfall project management, where the entire project is planned upfront, and any changes or modifications can be difficult and costly to implement.

This approach has limitations when dealing with the dynamic nature of modern software development. Agile methodologies, on the other hand, embrace change and iterative development. Agile project estimation techniques are designed to support this flexibility and adaptability.

Key Agile Project Estimation Techniques

Relative Sizing (Story Points):

In Agile, teams use story points to estimate the size and complexity of user stories or tasks.

Story points are a unit of measure that allow teams to compare the effort required for various tasks.

Over time, the team gains a better understanding of their velocity, which helps in estimating the time required for future sprint planning.

How to Create a Task Using Story Points in Orangescrum?

Step: 1 – Click on the ‘+’ button on the bottom right corner.

Create Task, Project Management Blog

Step: 2 – Enter task details


  • Project – iOS App Development
  • Task Title – Design user interface mockups
  • Assign To – Ajit M
  • Task TypeStory point
  • Story Points – 4
  • Priority – Medium
  • Sprint – Backlog

Task Details, Project Management Blog

Step: 3 – View task in the Kanban View

View New Task Created, Project Management Blog

Step: 4 – View task details

View New Task Details, Project Management Blog

T-Shirt Sizing:

T-shirt sizing is a simplified version of relative sizing. Teams classify user stories or features into categories like small, medium, large, or extra-large.

This technique is quick and easy and provides a high-level estimate that can be useful in early project planning.

T Shirt Sizing Project Estimation, Project Management Blog

Ideal Days:

Ideal day’s estimation involves teams estimating how many “ideal days” a task or user story will take to complete.

Ideal days do not account for interruptions, meetings, or other distractions, focusing solely on the time spent on development work.

This technique provides a straightforward and pragmatic estimate.

Ideal Days Project Estimation, Project Management Blog


Planning Poker:

As mentioned earlier, Planning Poker is a collaborative estimation technique that involves team members assigning story points to user stories.

It fosters team discussions, improves accuracy, and ensures everyone’s perspective is considered. It’s a fun and effective way to arrive at a consensus.

Planning Poker Agile Estimation, Project Management Blog


Monte Carlo Simulation:

This is a more advanced estimation technique. It involves using historical data to create a statistical model of the project’s likely duration.

Monte Carlo simulations can help identify potential risks and uncertainties in the project timeline, offering a more sophisticated and data-driven approach to estimation.

Best Practices for Agile Project Estimation

  • Involve the Whole Team: Estimation is not the sole responsibility of one team member. Encourage collaborative estimation sessions involving all team members to leverage their collective expertise and insights.
  • Break down User Stories: Breaking down large user stories into smaller, more manageable tasks can make estimation more accurate. Smaller tasks are easier to estimate and track.
  • Use Historical Data: Past project data, such as velocity and cycle time, can provide valuable insights for estimation. Analyzing historical performance can help teams make more informed estimates.
  • Refine and Re-Estimate: Estimations are not set in stone. As the team progresses through the project, it’s essential to revisit and refine estimates to ensure accuracy.
  • Educate Stakeholders: Agile estimation can be different from traditional project estimation. It’s important to educate stakeholders on the principles and techniques used to manage their expectations effectively.

In Conclusion

Agile project estimation techniques are a fundamental aspect of agile development. They empower teams to make more accurate and adaptable estimates, improve project planning, and enhance client satisfaction.

By embracing collaborative techniques, historical data, and a commitment to continuous improvement, agile teams can navigate the path to project success more effectively and with fewer surprises along the way.

Agile estimation is not just a project management technique; it’s a mindset that values adaptability and responsiveness in a rapidly changing world.

Manage your agile project estimates using story points in Orangescrum. Let your team members collaborate on projects and track task progress in a single platform.

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