Analogous estimating is a project management technique that uses information from similar projects to estimate the cost, duration, and resources required for a new project. The resulting estimate is generally a rough order of magnitude (ROM.)
Analogous estimating means using the actual or historical data of a project with similar activities as the basis for the new project estimate. Analogous estimating is a form of expert judgement. In other words, those individuals with the most experience are the best source for the estimates.
The Subject Matter Experts or SMEs submit their estimates and assumptions to the project manager or an estimating facilitator.
Prerequisites
- Recognized group of experts with experience on similar a project(s)
- Product Description and Project Charter
Steps
- Identify similar projects or activities
- Obtain actuals or historical data from these projects. How much did the similar project or activities cost?
- Re-evaluate and document the similarities and differences
- Apply expert judgement and decide on estimate
- Document the estimate and estimating assumptions