Analogous Estimating

The simplest forecasting method in project management by far is analog estimating. Analog estimating is a popular project management method that uses projects that were previously carried out by comparing them with the current project, going over the differences and similarities identified. Quite simple.

As we know, the main characteristic of projects is being temporary efforts and being progressively elaborated. Accordingly, while at the early stages of the project, when there is no sufficient data to have a thorough understanding of the nature of the project, the margin of error of the estimates that need to be made may be higher, the confidence interval of the estimates is expected to be tighter as the project progresses and more detailed information is needed.

One of the reasons for this struggle at early stages and proximity of estimations later, may be the increase in the achievability of data that will be the basis for estimates as the project progresses, the disappearance of uncertainties, as well as the specific constraints of the project. Analogous estimating is usually used in the early stages of the project to obtain non-detailed approximate estimates about resource management, cost management, or schedule management domains by estimating the duration of the project activities. In the absence of sufficient data, a prediction from the results of a similar project can be quite valuable. Analogous estimating is categorized as estimating methods that is recommended to be used in planning performance domain.

The processes in which the analog estimation technique is used as a tool and technique are as follows.

The other commonly using estimating methods are;
  • Affinity grouping
  • Analogous estimating
  • Function points
  • Multipoint estimating
  • Parametric estimating
  • Relative estimating
  • Single-point estimating
  • Story point estimation
  • Wideband Delphi