How to calculate Team’s capacity in Story Points?
Following are the steps for calculating CAPACITY and EXPECTED CELOCITY in Story Points. You can use the same formula while doing capacity planning in Next PI(PI0003).
Capacity Planning –
For the time being assume –
- Number of Team Members – 4
- Two types of Capacity – Normal and adjusted
- Sprint duration – 2 weeks (10 working days)
- You do have historical Average Velocity data
Normal Capacity
Team’s capacity (incorporating Fixed overhead) can be determined as follows:
4 (team members) x 10 (days) x 6 (hours ie. 8 hours less 25% in fixed overhead) = 240 hours of time (Maximum Time team has to deliver user stories)
Adjusted Capacity – After deducting Leaves.
The team’s adjusted capacity for the next sprint is 240 hours (normal capacity) – 22 hours (variable overhead) = 218 hours adjusted capacity.
Note – 22 hours are pointing towards planned leave
Now, armed with this information you can calculate Expected velocity for the upcoming sprint. You do so with the following simple formula:
Final Team Capacity
Adjusted Capacity/Normal Capacity * Average story point velocity = Expected story point velocity
e.g 218/240 * 64 = 58.13 points
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