Cycles and Iterations
The smooth integration of MSF in Team System supports rapid iterative development with continuous learning and refinement.
Product definition, development, and testing occur in overlapping, iterations, resulting in incremental completion of the project. Different iterations have different focus as the project approaches release.
Small iterations allow you to reduce the margin of error in your estimates and provide fast feedback about the accuracy of your project plans.
Each iteration should result in a stable portion of the overall system.