A burndown chart is a graphical representation of outstanding work versus time and is useful for predicting when all of the work will be completed. A burndown chart can be created by estimating the required effort to complete a project and tracking daily task progress. For the duration of the project, the team must also determine its actual effort against the estimated effort and plot the dataset to evaluate progress. A burndown chart is simple to understand and provides clarity on project scope and progress. However, the accuracy of a burndown chart relies on estimations invariably influenced by cognitive biases. In poorly defined projects, the quality of the resultant chart will be similarly poor.
Understanding a burndown chart
Successful project managers realize the importance of statistics and graphical illustration tools in facilitating communication and collaboration amongst team members.
One of the more popular tools is the burndown chart, favored because of its simplicity and effectiveness.
Broadly speaking, a burndown chart displays how much work remains to be completed on the y-axis with the number of days since work began on the x-axis.
By comparing its actual progress with an ideal rate of progress, the project team can determine whether it is on or behind schedule.
In agile software development methodologies such as Scrum, these charts graphically illustrate the speed with which a team is working by plotting user stories against time.
After the successful completion of a user story, the chart is updated.
The chart can also record the pace of a team โ otherwise known as velocity โ and predict its performance.
Creating a burndown chart
Though the burndown chart can be used in almost any context, it has seen renewed interest in agile software development.
With that in mind, we will now detail the steps required to complete a burndown chart:
Estimate effort
What is the ideal baseline for using the available hours throughout the sprint?
In most cases, this is determined by dividing the available hours by the number of days the sprint will run across.
For a sprint of 80 hours over 8 days, the effort required is 10 hours per day.
Team leaders must then quantify the burndown as a daily running total with 80 hours remaining on Day 0, 70 hours remaining on Day 1, 60 hours remaining on Day 2, and so forth.
Track daily progress
Daily progress is then captured in the table against each daily task.
Note that the hours assigned to each task are the estimated effort required for completion and not the actual effort.
Determine the actual effort
At the conclusion of each day, the total remaining effort must be calculated by subtracting the actual effort from the running total.
As the project progresses, the actual effort will fluctuate above and below the estimated effort.
These disparities depend on how accurately the initial project work was estimated and whether individuals can work effectively as a team.
Plot the final dataset
Using the data from step three, the burndown chart itself can be created by using a simple application such as Microsoft Excel.
Once plotted, the project team can compare planned and actual progress.
Benefits and limitations of burndown charts
Benefits
The most obvious benefit of a burndown chart is that it provides a clear and visible progress update to all members of the project team.
The chart is easy to understand, which increases employee motivation and buy-in.
Burndown charts also help the project team deal with small issues before they become large problems.
By tracking actual progress against ideal progress, the conversation is naturally steered toward the project and any obstacles to its timely completion.
Limitations
The effectiveness of the burndown chart as a project management tool relies on the accuracy of time estimates.
Unfortunately, these estimates are notoriously inaccurate because they are influenced by cognitive biases.
In a sprint, where story points deal with complexity and relative sizing, the problem isnโt as pronounced.
But the cognitive biases associated with estimation remain. If a team overestimates project time requirements, progress will appear on track or ahead of schedule.
Conversely, if a team underestimates time requirements, the chart will suggest they are behind schedule.
What’s more, the charts also show progress without providing clarity on whether the team is working on the right thing.
In poorly defined projects, burndown charts do not reflect how close the team is to completing the work.
This can lead to exaggerated or unrealistic expectations and team disunity.
Burndown Chart Vs. Burn Up Chart
Whereas in a Burndown Chart, you can track how much is left for the completion of a project, on the converse, in a burn-up chart, you can see the amount of work that has been put on that project’s task.
Thus the two tools combined can give you a much more complete understanding of the project’s completion and development.
Burndown Chart, Scrum, And Agile
Since Burndown charts are a way to track the progress of a project, that also fits nicely into Scrum.
Indeed, a Burndown chart enables teams to evaluate the efforts needed for specific tasks and track their completion as the project moves forward.
It’s critical that for a burndown chart to be effective in Scrum, it needs to fit into an agile mindset.
Where there is a continuous innovation approach.
Case Studies
- Software Development:
- Description: A software development team is working on a new application.
- Application of Burndown Chart:
- Estimate the effort required for each feature or user story.
- Track daily progress by updating the chart with completed tasks.
- Visualize the remaining work to ensure the project stays on schedule.
- Outcome: The team can monitor the project’s progress, identify potential delays, and adjust their work to meet the deadline.
- Project Management:
- Description: A project manager is overseeing a construction project.
- Application of Burndown Chart:
- Estimate the tasks and resources required for each construction phase.
- Update the chart daily with completed tasks or milestones.
- Identify areas where the project is falling behind and take corrective actions.
- Outcome: The project manager can ensure that construction stays on track, allocate resources efficiently, and meet project deadlines.
- Product Development:
- Description: A product development team is creating a new consumer gadget.
- Application of Burndown Chart:
- Break down the product development process into key stages.
- Monitor daily progress in each stage and update the chart.
- Ensure that the development timeline aligns with product launch goals.
- Outcome: The team can visualize the development progress, identify bottlenecks, and adjust their workflow to meet product launch deadlines.
- Marketing Campaign:
- Description: A marketing team is running a campaign to launch a new product.
- Application of Burndown Chart:
- Estimate and plan the tasks required for the campaign, such as content creation, advertising, and social media promotion.
- Update the chart daily with completed campaign activities.
- Monitor the campaign’s progress and make real-time adjustments to meet launch goals.
- Outcome: The marketing team can ensure that the campaign stays on schedule, track the completion of essential tasks, and optimize marketing strategies for better results.
- Manufacturing:
- Description: A manufacturing company is producing a new line of electronics.
- Application of Burndown Chart:
- Estimate the production tasks for each component of the electronics.
- Daily updates on completed production tasks.
- Monitor the production timeline to ensure on-time product delivery.
- Outcome: The manufacturing team can track production progress, identify production delays, and ensure timely delivery of the electronics.
- Customer Support:
- Description: A customer support team is addressing a high volume of support tickets.
- Application of Burndown Chart:
- Estimate the effort required to resolve each support ticket.
- Update the chart daily with resolved tickets.
- Monitor the team’s progress in addressing customer issues.
- Outcome: The customer support team can track their workload, prioritize tickets effectively, and ensure that customer issues are addressed in a timely manner.
- Supply Chain Management:
- Description: A logistics company is managing a complex supply chain operation.
- Application of Burndown Chart:
- Estimate the tasks required at each stage of the supply chain, such as procurement, transportation, and distribution.
- Daily updates on completed tasks.
- Monitor the progress of the supply chain operation to avoid delays and bottlenecks.
- Outcome: The logistics team can optimize supply chain operations, identify potential disruptions, and ensure timely delivery of goods to customers.
Key Highlights
- Definition of Burndown Chart: A burndown chart is a graphical representation of outstanding work versus time. It predicts when all work will be completed and is created by estimating effort and tracking daily progress.
- Creating a Burndown Chart:
- Estimate Effort: Determine the ideal effort for each day by dividing total available hours by the number of days in the sprint.
- Track Daily Progress: Record daily progress against tasks, using estimated effort.
- Determine Actual Effort: Calculate daily remaining effort by subtracting actual effort from the running total.
- Plot the Chart: Create the burndown chart using a tool like Microsoft Excel, comparing planned vs. actual progress.
- Benefits of Burndown Charts:
- Provides clear visibility of progress to the project team.
- Easy to understand, boosting motivation and engagement.
- Helps identify and address issues before they become major problems.
- Limitations of Burndown Charts:
- Relies on accurate time estimates, which can be influenced by cognitive biases.
- Inaccurate estimates can lead to misleading progress indications.
- Doesn’t provide insight into whether the team is working on the right tasks.
- In poorly defined projects, may lead to unrealistic expectations and team discord.
- Burndown Chart vs. Burn Up Chart:
- Burndown Chart tracks remaining work over time.
- Burn Up Chart displays completed work over time.
- Using both charts together provides a comprehensive view of project completion and development.
- Burndown Charts in Scrum and Agile:
- Burndown charts align well with Scrum methodology.
- They enable task evaluation and tracking during the project.
- Effective burndown charts fit into the agile mindset, emphasizing continuous feedback and iteration.
- Agile methodology focuses on customer-centric problem-solving and continuous innovation.
Connected Agile Frameworks
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Innovation, Agile Methodology, Lean Startup, Business Model Innovation, Project Management.
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