Effort estimation is to evaluate the total efforts of completing a project. The estimation is created after receiving the requirements. The content of the estimation usually includes:
Scope of the project and assumptions.
Rough timeline.
Team structure of all the teams that need to be involved,
Total efforts based on the person-days of each team role and the number of sprints of each team.
An accurate effort estimation represents a project's rough timeline and cost and the team resources that need to be invested. Thus it helps the stakeholders to decide if it is feasible and worth taking the project based on the current team workload.
The effort estimation is provided when a potential project comes. The key members, including the project manager and design and development team lead, should analyse and understand the requirements as much as possible and deliver the estimation.