What Is Capacity Planning - Agile Digest

In this video, we'll explore the fundamentals of Capacity Planning in Agile project management. Capacity Planning involves estimating the amount of work that a team can complete during a specific time period, and is essential for effective project planning and delivery.
We'll cover the key steps involved in Capacity Planning, including identifying team capacity, estimating work effort, and balancing team workload. We'll also provide tips and best practices for successful Capacity Planning.
Looking to improve your team's Capacity Planning skills? Contact us now to book our Agile Transformation consultation and learn how to optimize your Agile processes for greater efficiency and success.
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[@ernestoramgo408]

Niladri Mahapatra, exellent webinar. Congratulations!

[@cfbredraider]

I use the Sprint Team Capacity Calculator Chrome Extension for all of my scrum teams during sprint planning. Works great!

[@vaibhavb9472]

Please share the link

[@vaibhavb9472]

Hi please can we connect one to one im new sm and beginner

[@moonmoon335]

Hello Niladri, I would like to thank you from the bottom of my heart for making these amazing videos and going so deep in clarifying the what, the why and the how. I really appreciate you takeout your time to create these videos for all of us. I am learning so-much from you everyday.

[@AgileDigest]

Thank you so much. I am glad you liked the video

[@gobbaka]

Excellent Niladri. Thanks for the explanation.

[@pavimahesh]

Thanks a Lot awesome Tutorial

[@jay1232000]

Superb. The most useful video on estimation.

[@manishadlak8600]

Very Nice! Thanks a lot

[@sorayazahir3498]

very informative video. I learned a lot. Thank you

[@d2thaC65]

Thank you so much for doing such an amazing job with these explainer videos. They are so well done. I'm learning a lot. Gracias

[@AgileDigest]

My pleasure, glad you liked them.

[@Makeovertime.]

Excellent video...this video helped me a lot🙏 thank you Niladri

[@maverick211211]

Very helpful, thank you

[@ireshrie]

Great lecture. Will visit your website and watch videos on this channel 🙂

[@govindpalariya3173]

Realy great explaination, thanks

[@chakrichanduv]

Very good explanation!!

[@abhishekagarwal7154]

very nicely explained concepts sir!

[@fasheyitanolaitan6866]

Thank you for sharing this video.

[@ruthsingh7811]

Thank you for sharing ! :)

[@tanaymariosworld7969]

Hi Niladri, very good and easy to understand explanation of capacity planning. I have a query as per the explanation there were Story points capacity planning and hour based planning. There was a detailed explanation on hour based capacity planning, can you please explain how to do based on Story points? Thanks

[@sushilkumar-zi6sp]

Hello Sir, I have seen more than 10 videos of yours on Scrum concepts they have been explained in very descriptive way and I must really thank you for that. Only one suggestion from my end is to please explain them using real time project scenario like you have done in this capacity planning one. Here you took a chart, considered holidays and have shown the calculation. On similar lines if you can add more examples it would possibly the best series on you tube of Scrum Tutorial

[@AgileDigest]

Hi, sure I will try to make some, if time permits.

[@ernestoramgo408]

Hello Niladri Mahapatra, I know that in some organizations the capacity planning is not done by the Scrum Master and Scrum Team, there is a kind of manager role who do it prevuosly. Under your experience, is it a valid way to handle the capacity planning?

[@chinedufelix2472]

well explained, please using this capacity how do you differentiate Dev and QA effort hours? Appreciate your response.

[@damarisnyakundi5748]

Thank you

[@AgileDigest]

Welcome!

[@manu28833]

Thanks a lot for your efforts and making this video. Do you have any similar video where capacity planning is done using story points? Kindly share the link.

[@AgileDigest]

Not Yet,

[@mohamednawas3326]

Dear Niladri, Very Awesome explanation..!!! But please include more real time scenarios. Thank you so much for your efforts...!!!

[@AgileDigest]

Sure I will try to

[@wetuberaju]

Think usually we keep aside all the hours spend outside like daily ceremonies like standup, backlog refinment and other clarification say 2 hours/day. So we are left with 6 hours /day for each person for the day. So actually full capacity for each person will be 6 * 10 ( for 2week sprint) 60 hours for the sprint.

[@AgileDigest]

Yes, That's another easy way to start, Many Teams follow it at the beginning.

[@nawidshinwari9258]

Thank you for these awesome educational videos! I wanted to know if there is anyway you can share these excel templates for every ceremony so we can use it as well. Thank you!

[@AgileDigest]

Hi Nawid, We don't have excel for every ceremony/events. The templates we have are available at agiledigest.com/product-tag/template/

[@kanugop]

Thank you. Very helpful.

[@henrietteyotatt5427]

Thank you sir

[@milindchavan007]

Very good explanation, I have one question when to do the sprint capacity planning and sprint planing if we are having a 2 weeks sprint

[@AgileDigest]

Just before sprint planning

[@vasanthi1811]

If starting day of new sprint is a holiday, is it fine to skip this day and exclude from the new sprint?

[@nehaprabhakar3483]

@Niladri Mahapatra - Hi! Do you know the way to calculate team’s capacity in terms of Story points? Like in this video you’ve calculated in terms of hours - I want to know in terms of Story points.

[@AgileDigest]

Use your velocity as capacity, fill 90%, keep additional few stories for the sprint. Not as commitment, but the team can do if time,and situation permits. The uncomited stories should take part in velocity.

[@thundilabraham4619]

Hi Niladri, Is it OK to estimate the user story (during sprint planning) in story points but the task in effort hours? Will this create an issue with the burn down chart?

[@AgileDigest]

During sprint planning its ok.

[@lavanyaveeravarapu9156]

Very nice session

[@alookachaloo]

Hi Niladri, awesome explanation!!. One question though, once you are done with capacity planning in hours. How do you come up with story points that can be taken up in these hours (assuming its a first sprint and we have no prior data available) Regards, Ankit Mittal

[@flyingsalmon]

This is exactly the real problem and question that no one is bold enough to answer...all Agile proponets seem to dance around this simple question and yet it is a real, practical issue we have to deal with in PO/PM and dev side. There is no standard formula to convert hours to/from fantasy story points, and yet you WILL be faced with that situation often especially in a team with no historical velocity data. Let's see if anyone can answer that ;)

[@snigdhanigam9859]

Me too dealing with the same situation right now new team how to calculate velocity and which planning to do velocity or capacity if capacity how to convert hours to sp

[@AgileDigest]

Don't convert sp to hours.

[@vaibhavb9472]

​@@snigdhanigam9859 i will take 6 hr per day avg for 1 point so it will be 53 points here after conversion

[@AmritSingh-rq2tm]

if any video on BPO capacity planning pls share or make it if not available..

[@AgileDigest]

I will love to make it, if you can explain the requirements

[@mahendermahara8162]

Hi Niladri, do we take buffer for any unplanned leave into account while doing capacity planning? One more scenario, suppose there is a new team member and s/he needs hand holding to complete task which consumes time of other team member also. What capacity should be considered in such scenarios?

[@AgileDigest]

Hi Mahendra, Don't Take buffer for unplanned leaves. Plan it with the visibility you have, a Sprint is 2 to 3 weeks, you will have have a very good visibility about the vacations and leaves. If anything unplanned lets the team learn how to deal with the situation, During your retrospective make the strategy best work for the team. if there are too many unplanned leaves, you can decrease your focus factor.

[@mahendermahara8162]

Thanks for your response. One more scenario, suppose there is a new team member and s/he needs hand holding to complete task which consumes time of other team member also. What capacity should be considered in this scenario?

[@sumitagrawal3979]

Hi Niladri, Here you have mentioned the Capacity calculations based on Hours but how you relate them to Story Points as we size the Stories in terms of Story Points. So even if we say Final Capacity is 318 hours, how much story points are they?

[@AgileDigest]

Story point and effort hours are two different unit, should not be relate or compared

[@shaiqbashir5395]

Same question was asked and they said there is some approach for it??

[@vaibhavb9472]

Approx 6hrs per point so calculate it will be 53 story points per sprint

[@mbusylvian8989]

Great

[@bapparoy0404]

Hello Niladri - Do you some ready made templates for the same. One more thing how you are considering the dependency factors here. Let between one developer waiting time if others task is not finished or for tester to wait for the developer to complete his development task.

[@AgileDigest]

Hi Bappaditya, You will find the free template at this link. agiledigest.com/download/capacity-planning-sample-template/ If one testing task is waiting for a development task, its not dependency. The Team needs to work together and synchronize within the team to work on both development and testing together, if that is not happening, please focus on maturing the team member's mindset to work on agile way, let them become self organizing, let them stop classifying development team and testing team, its just one team.

[@vaibhavb9472]

​@@AgileDigest page not found

[@vaibhavb9472]

How to do capacity planning for sprint 1 , project is just started and im beginner in this any1 have excel template with formula then please give it

[@AgileDigest]

Responded on the Video - Comment Response Feb 2024

[@ethanhunt5433]

Hi Niladri, well explained. But how does the estimation takes place in grooming,is it in terms of hours when we go for capacity planning? And how to differentiate Dev and QA effort hours? Appreciate your response.

[@asitp2001]

Is Capacity same as Velocity?

[@AgileDigest]

No. However many practice take the velocity to plan their capacity followed by a Load to the capacity, here capacity planning depends on story points instead of effort hours.

[@backester_singhaman6914]

no velocity is overall of the sprints you average your sprints points and have the velocity, an estimate of points you say that your team accomplishes gives you an idea of how much your team can do..

[@ashabijlee9825]

Hi Sir.. how can i get the formula (excel file) so that i can learn by doing it.. and try to input directly into the file

[@AgileDigest]

You can purchase the template from this link agiledigest.com/capacity-sprint-planning/

[@vaibhavb9472]

​@@AgileDigest too expensive

[@flextorutube]

You link doesn't work. It keeps spinning and spinning.

[@AgileDigest]

There are two links, which link you are trying?

[@rroxy999]

Can you tell with what you divided ceremony time adding up all the total is divide by 100? can you please tell what formula you have used to calculate ceremony time and focus factor formulas. Also can any one answer how ceremony time is calculated 12.33 has come up what formula is being usedThanks

[@AgileDigest]

Hi Roxy, Its very clearly mentioned in the video. Please do let us know the timeline where you are facing some difficulties to understand.

[@AgileDigest]

Hi Dunde Man This comment is In Response to your Comment "Hey man, really good video. I am looking for more information about why capacity planning is important and its benefits and what problems will occur if its not done right or never done at all. Could you please me where i can find information in your website on any video thanks :)" Thank you for your Comment. Please visit the page "agiledigest.com/agile-digest-tutorial/capacity-planning/" for more details.