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Fibonacci Estimation Technique In Agile

This article explains the Fibonacci estimation technique in Agile.

Purpose

The Fibonacci estimation technique is used in Agile, particularly in Scrum, to estimate the effort or complexity of tasks or user stories. It involves assigning values based on the Fibonacci sequence (1, 2, 3, 5, 8, 13, 21, etc.) where each number is the sum of the two preceding ones.

How Does The Fibonacci Estimation Technique Works?

Relative Estimation

Instead of assigning exact hours or days, the Fibonacci sequence helps teams estimate the relative size of tasks, emphasizing that complexity, uncertainty, and risk increase with higher numbers.

Simplicity and Focus

The Fibonacci sequence has noticeable gaps between numbers as the sequence progresses, which makes it easier for teams to decide if a task is, for instance, a 5 or an 8, instead of getting trapped in small differences like 6 vs. 7.

Estimation in Story Points

Teams usually use Fibonacci numbers as "story points," assigning a story point value to each user story based on its complexity and the effort required.

Planning Poker

Each member privately selects a Fibonacci number card that they believe represents the effort needed. The team then discusses the estimates and reaches a consensus on the final story point.

Scenario

Consider the following user stories.

As a user, I want to be able to log in so that I can access my personal account.
As a user, I want to be able to search for products so that I can find what I am looking for.
As an admin, I want to be able to view sales reports so that I can understand business performance.

User Story 1: User Login

The team feels this is a straightforward task but requires some considerations regarding authentication security. It has moderate complexity but is not too uncertain.

The team estimates this as 3 story points.

User Story 2: Product Search

The search feature will require a database query, indexing, and a search interface. The team anticipates more complexity, especially if search filters or optimizations are required.

After discussion, the team agreed this was more complex than login, so they assigned 8 story points.

User Story 3: Sales Report For Admin

Generating a sales report requires data processing, multiple reports, and possibly visualizations. There’s also uncertainty about what data the admin wants and possible adjustments post-feedback.

Given the complexity and uncertainty, the team estimates this as 13 story points.

Posted By -	Karan Gupta

Posted On -	Sunday, November 24, 2024

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