Capacity is the estimated amount of work a person or a team can accomplish in an Iteration. This estimation is based on each individual's agreed upon commitments to operational and planned work, while factoring in non-work time such as vacations and training.
Velocity is the average number of Story Points a team has historically completed per iteration. When a team is newly formed, typically the Capacity is also entered in the Velocity field, as a starting guideline. After a team has been doing scaled Agile for a PI, the team can then determine its Velocity for future iterations.
Entering Capacity and Velocity to an Iteration
- Navigate to the Team Iterations view.
- Expand Teams, then Team Overview, then select Team Iterations from the left navigation menu.
- Filter by the appropriate Portfolio and Team, if needed.
- Refer to Filtering the Content of a View or Folder for instructions.
- Select the correct Iteration to open it.
- Expand the Info section on the right.
- Enter the team's estimated Capacity and Velocity.
- The Assigned Effort is automatically calculated by adding all the Story Points for each Story in the Iteration.