How to calculate Burn-down and Burn-up Charts and Velocity?

A Burn-down chart is used to depict the work which is left at a specific point of time in a Sprint. In this graph, y-axis depicts the work, which is left, and x-axis represents the time of the Sprint. It is used by the Scrum team to predict the work to be completed in a Sprint. There is one more chart, which is opposite to a Burn-down chart, is called Burn-up chart. In a Burn-up chart, work, which is completed at a given point of time in a Sprint, is plotted in y-axis. If Product Backlogs are continuously added to a Sprint one after another, the Burn-up or Burn-down charts cannot capture the progress visually. In reality, when a Sprint Backlog is completed in a Scrum team before the Sprint ends, the developer pulls a new Product Backlog to the Sprint, informs the product Owner and starts working on it.

Velocity in a Scrum framework is defined as the average number of Story Points a Scrum team can complete in a Sprint. Story Points are defined correctly if the complexity of a work is correctly segmented with numbers. The accuracy of Velocity depends on the accurate estimation of Story Points. However, if a task is blocked in the middle of the Sprint, the calculation of Velocity will not be accurate. The calculation of Velocity is accurate when the workflows through a Sprint without getting blocked because of some reason or blocker. Another use-case of Velocity can be comparison of estimated and actual Velocities in every Sprint. This can help the Scrum Team understand if they are overestimating their capabilities.

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