I've worked at places with hundreds of status and even more workflows.
It absolutely WILL complicate things, but it won't break stuff. Your users may get confused if they are using many projects. My usual recommendation is to have a set of standard ways of doing things and share the schemes so that you effectively have project "types" and stick to standards within them. (E.g. "Scrum development", "Support", "IT Helpdesk" - many projects, but if you move from one scrum team to another, the setup is the same)
I setup my systems the same as Nic. No matter what project you're in, if you're working with issue 'type A' the workflow is the same. If you don't handle it that way the user will be confused and the JIRA admin will go crazy trying to keep everything straight.
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My advice would be to have workflow imitate actual real-life workflow. You probably know you are missing something if you find yourself going back to closed tickets to update them (perhaps to mark it as having been tested or to mark who to bill it to). Don't let someone close it until it is really actually done, if you can do that. That is my opinion on the matter.
That being said, if a status confuses users/customers, it may be over the top.
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I don't understand the question. Workflows are made up of statuses and transitions. 8 statuses in a workflow isn't an issues.
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Sorry for not being clear. This was what I intended to ask. Our requirement is to customize the workflow with the following statuses - Open, Acknowledged, In Progress, Resolved, Verified, Re-open and Closed. Can we create a customized workflow with these statuses? I would ideally want to copy the default work flow and include the required custom statuses in the copy of work flow. Can this be done? If yes, how? I hope I have made myself clear now. Have I ?
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