Agile is a project management framework that is used by several companies to make their workflow procedures more efficient. Accurate estimation plays an important role in an Agile workplace and by knowing the estimated expected time and resource costs for projects, businesses can make accurate project plans. 

In this blog, we have mentioned the 10 most popular agile estimation techniques, assisting project managers or business owners in calculating the estimated time and budget for your project beforehand. 

What is Agile Estimation? 

Agile estimation is a technique used to determine the effort needed for project completion. Unlike the traditional method of calculating the time manually, the agile methodology uses story points to determine the effort required. The main agenda behind using estimation is to enhance decision-making process, improve coordination among the team members, and learn how to manage risks more effectively. Agile estimation is beneficial for team members in understanding the significance of each task in a more enriched way. 

Have a look at the advantages of agile methodology for software development projects. 

1. Planning Poker 

Planning poker is a card-based technique of collaborative Agile estimation. For a limited number of items, planning poker is the best agile estimation technique that gets unanimous buy-in quickly. In this method, all the team members select a number card based on the difficulty of completing a specified task and reveal the number when asked for. 

The number with maximum occurrence will determine the story point of the task. In case there is no majority or too many numbers are selected from individual team members, then a meeting will be held regarding the task. This approach is ideal in case there are 10 or less tasks, and teams of up to eight people. 

2. Affinity Mapping 

Affinity mapping is considered useful for projects with multiple backlogs. Here, the team members will group those tasks that require the same effort to complete. If tasks seem related in scope and effort, you put them together till the time you have a clear set of groups. 

The team can use the same set of values as other techniques or broaden the groups so it’s closer to the large, small, and uncertain methods. 

3. Random Distribution 

Among many agile estimation techniques, this is also referred to as an ordering protocol, where all the items are placed from low to high order. After placing all the stories, another team member will come and make changes in the order based on the difficulty of the new member. In a random distribution, some stories will shift to the lower, while the other a few will move to higher positions.  

4. T-Shirt Sizes 

XS, S, M, L, XL, which are the standard T-shirt sizes, are used to estimate Agile projects for this technique. This approach is useful because it’s a departure from standard units of time, and thus, helps team members think more critically. In this agile estimation, all team members take part and is quite an informal method. Post completing the categorization, the shirt sizes will be replaced with numbers. 

The task listed in the XS category requires at least effort and resources as compared to the task in the XL category. This technique is more suitable for projects with a greater number of tasks. 

5. Buckets 

This agile estimation is similar to the poker planning technique and is more suitable for projects with many backlogs. This technique aims to come to a common conclusion through discussion. In this, the bucket or a whiteboard is used and buckets will have numbers from 1 to 100 or maybe 200 and more. The facilitator begins with a task, sets it in the middle, and then keeps on reading and keeping tasks in buckets relative to the first one. Equal discussion is paramount to ensure that everyone agrees before the final estimates are set.  

6. Large, Small, Uncertain 

Agile estimation techniques are quick, simple ways for a rough estimation and have three categories big, small, and large. The team discusses and divides themselves to add tasks to the large, small, or uncertain groups. For instance, if a team is uncertain about a task, whether it is big or small then the task will be discussed to know the key challenges. Sometimes tasks might end up in the uncertain category. 

This method is suitable for projects with a limited number of tasks. 

7. Dot Voting 

In this technique, the team member will use dots to understand the difficulty of a story. Here the team members will give dots starting from 1 to 5 and each member will provide some dots to specified tasks. The maximum recommended dots are 5, otherwise it will make the task much more challenging. 

In agile estimation techniques, the tasks with a maximum number of dots are difficult and require more resources while the ones with the tasks with at least dots are easy and simple tasks need minimum resources. 

This technique is a simple yet ideal technique for projects at the initial phase. 

8. Three-Point Method 

The most common problem faced by team members is the wrong estimation of time before the start of the work. Even if it’s the same team and the same kind of work, estimates can be unrealistic. Thus, in that case, a three-point estimation is beneficial. Here you will have three values- the most likely estimate, the optimistic, and the pessimistic. By considering these approaches, you get the most accurate number by adding up the values and dividing by three. 

9. Top-Down Estimate 

To initiate a top-down estimate, participants are informed about the project’s due date. Then, based on the group division, projects will also be divided into different phases. Once the participants decide the overall time they should allocate to each task, team members do a quick comparison. In case of any discrepancy between tasks and their time length, the facilitator discusses the same with team members. Team members will discuss the reasons behind allocating specific time for each task. Post discussions, teams can repeat the process until they discuss each task. 

10. Bottom-Up Estimate 

This technique starts with the calculation of time requirements for each individual project task. Teams then combine each task to check the total amount of time it takes to complete all phases of the project. This technique is useful in identifying the tasks that take longer time and looking for ways that helps boost productivity. 

The facilitators have a discussion with team members from different departments to know their thoughts. This gives team members insight into the tasks that other teams must complete to finish a project. 

Empower Team Efficiency with Agile Estimation Techniques 

Deploying agile estimation techniques is important for teams looking for ways to streamline their project planning and execution. By using these techniques, organizations can create a culture of transparency and collaboration. Prioritizing tasks through agile the above-mentioned techniques give management more time to focus on high-value deliverables and improve overall productivity. 

Do you want to take your Agile projects to the next level? If yes, team up with Kodehash Technologies, the renowned software solutions provider, to manage your estimation process and deliver exceptional results. Our team offers customized solutions to address your unique project needs, ensuring success at every step. 

Connect with us today to learn more about our Agile software solutions and how we can help your team excel. 

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