Configuring Cost Estimation for a Circle

It is possible, for each circle, to configure exactly which parts of Cost estimation are relevant. Read more about the general principles of Cost estimation here.

When you change estimation configuration, the system will automatically update all the affected stories etc. according to the changes. Since this might result in overwriting or removing existing estimates, a warning might be displayed when saving.

Effort Estimation

An effort estimate is the work needed to complete a story. Whether effort is estimated in story points, workdays or some other unit is optional in Agemba. If enabled, you can set effort estimates for stories and epics, and choose to accumulate effort estimates for epics.

Effort Worst-case Estimation

If effort estimation is enabled, worst-case estimates can be enabled.  If enabled, you will be required to set two estimates for each story: an expected and a worst-case estimate.

The expected is the realistic estimate of the work needed with 50% certainty (it should not be confused with an optimistic best-case estimate), while the worst-case estimate is with 90% certainty. The worst-case effort estimate will always be higher than the expected estimate. 

With both an expected and a worst-case estimate, the effort uncertainty of stories, in percentage, can be derived. Read more about working with uncertainties.

Cynefin Complexity Estimation

The Cynefin Framework is a principle developed by Dave Snowden for complexity assessment.  If enabled, stories can be categorized by setting which Cynefin complexity domain they belong to. Read more about Cynefin.

Monetary Cost Estimation

The monetary cost is the financial cost to complete a story, which is not directly work. It is estimated using the configured currency of the site. If enabled, you can set monetary cost estimates for stories and epics, and choose to accumulate monetary cost estimates for epics.

Number Series for Effort

If no number series is set, effort estimates can be freely set. If set, only the digits included here can be set as effort estimates.

Default Effort

If a story or epic is not yet estimated, it will count as requiring no effort. Unless a default (provisional) effort is set, which will count as the estimate until a real estimate is set. The default effort estimate will be shown in brackets e.g. (2).

Default effort estimates can be set individually for the different types.

Default Monetary Cost

If a story or epic is not yet estimated, it will count as having no monetary cost. Unless a default (provisional) monetary cost is set, which will count as the estimate until a real estimate is set. The default monetary cost estimate will be shown in brackets e.g. (200).

Default monetary cost estimates can be set individually for the different types.

Allowed Methods for Worst-case Effort Accumulation

If worst-case effort is enabled, the accumulated worst-case effort estimate of stories, releases, sprints and preplanned lists can be derived using one of two methods. It depends on whether you assume all the children (cards found under any major card) to be mutually independent (i.e. if one story takes more time, this does not necessarily affect the others) or if you assume the children to be mutually dependent (i.e. if one story takes more time, so will all the rest most likely). Based on this assumption, the worst-case effort can be derived using either of the two methods:

  1. Root-sum-squared for mutually independent children – less than a simple sum of worst-case estimates: expected + √(∑(worst – expected)2)
  2. Simple sum of worst-case estimates for mutually dependent children

Either one or both of these methods can be allowed or disallowed for use in the entire Circle. If both are allowed, you can choose which method to use for each individual epic, release, sprint and preplanned list.

Enabled Cost Warnings

This is a list of all the different cost warnings that can be explicitly enabled and by so doing, the affected items within the Circle will be flagged with the right warning. Read more about these warnings here.

Effort Warning Threshold

For individual types, custom thresholds can be set to be used for evaluating whether effort estimates are too high. This will only have an effect if the cost warning Effort estimate is too high is enabled. If an effort estimate exceeds the threshold, the story or epic will be flagged with the warning.

Effort Uncertainty Warning Threshold

For individual types, custom uncertainty thresholds can be set to be used for evaluating whether effort uncertainties are too high. This will only have an effect if the cost warning Effort uncertainty is too high is enabled. If the effort uncertainty exceeds the percentage threshold, the story or epic will be flagged with the warning.