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How to Manage Development Team Capacity Planning?

How to manage development team capacity planning?

Manage capacity by calculating available hours per sprint (minus meetings, PTO, holidays), using velocity history for realistic planning, adjusting for seniority mix, accounting for support rotations, and leaving buffer for unknowns. Track planned vs actual to calibrate over time. Update capacity at sprint planning based on known absences.

Capacity calculation template

## Sprint [X] Capacity Planning

### Team Members
| Person | Available Days | Notes |
|--------|----------------|-------|
| Dev A | 10 | Full sprint |
| Dev B | 8 | 2 days PTO |
| Dev C | 10 | Full sprint |
| Dev D | 5 | On-call rotation |
| Dev E | 9 | 1 day training |

### Calculation

**Raw capacity:**
- Total person-days: 42
- Productive hours/day: 5
- Raw hours: 210 hours

**Deductions:**
- Sprint ceremonies: 4h × 5 = 20 hours
- On-call overhead: 10 hours
- Buffer (15%): 27 hours

**Net capacity:** 153 hours

**Velocity conversion:**
- Average velocity: 45 points
- Hours per point: 3.4 hours
- Sprint capacity: ~45 points

### Commitment
Committed: 42 points (94% capacity)
Buffer: 3 points for bugs/support

Capacity labels

LabelPurpose
capacity:fullFull sprint available
capacity:partialReduced availability
capacity:on-callOn support rotation
capacity:trainingLearning time

Capacity factors

FactorAdjustment
PTOSubtract days
HolidaysSubtract days
On-call duty50% capacity
New team member50% first month
Training day0% that day
MeetingsSubtract hours
Unknown work15-20% buffer

NoteVault capacity documentation

# Capacity Planning Guide

## Standard Assumptions
- Productive hours per day: 5-6
- Sprint ceremonies: 4 hours per person
- Buffer for unknowns: 15%

## Velocity History
| Sprint | Capacity | Committed | Completed |
|--------|----------|-----------|-----------|
| Sprint 10 | 45 pts | 42 pts | 40 pts |
| Sprint 11 | 50 pts | 48 pts | 52 pts |
| Sprint 12 | 40 pts | 38 pts | 36 pts |
| Average | 45 pts | 43 pts | 43 pts |

## Capacity by Seniority
| Level | Points/Sprint | Notes |
|-------|---------------|-------|
| Senior | 12-15 pts | Independent work |
| Mid | 8-12 pts | Some guidance |
| Junior | 5-8 pts | More support needed |

## Support Rotation Impact
On-call developer: 50% sprint capacity
Reason: Interruptions, incident response

## Seasonal Adjustments
- December: 70% (holidays)
- Summer: 80% (vacations)
- Normal: 100%

Capacity planning workflow:

  1. Collect availability - PTO, holidays, training
  2. Calculate raw capacity - Person-days × hours
  3. Subtract overhead - Meetings, ceremonies
  4. Apply buffer - 15-20% for unknowns
  5. Convert to points - Using velocity history
  6. Team commitment - Not more than capacity
  7. Track actuals - Compare planned vs done
  8. Calibrate - Adjust factors over time

Common capacity mistakes

MistakePrevention
100% allocationAlways include buffer
Ignoring meetingsSubtract meeting hours
Best sprint velocityUse average, not peak
Ignoring on-call50% capacity when on-call
Same for allAdjust for experience