Analogous Estimating is a technique used to estimate the duration, cost, or resource requirements for a project or activity based on historical data from similar past projects. It is a high-level estimating method often used when detailed project information is limited.
Key Aspects of Analogous Estimating
- Uses Historical Data – Relies on past project experiences to predict outcomes.
- Quick and Cost-Effective – Requires minimal effort compared to detailed estimation techniques.
- Less Accurate than Other Methods – Provides broad estimates that may need refinement.
- Best for Early Planning Phases – Helps establish initial budget and schedule baselines.
When to Use Analogous Estimating
- Limited Project Data – When there is not enough detailed information for bottom-up estimating.
- High-Level Budgeting and Scheduling – For creating rough estimates before detailed planning.
- Early Feasibility Studies – When evaluating project viability with limited resources.
Example Scenarios
Software Development
A company developing a new mobile app estimates its cost based on a similar app built last year. If the previous app took six months and cost $500,000, the new app is estimated to require the same timeline and budget.
Construction Project
A construction firm planning a new office building estimates its cost based on a similar project completed two years ago, adjusting for inflation and material costs.
Marketing Campaign
A marketing team estimates the cost of a new product launch campaign by referencing the budget and timeline of a past successful campaign with a similar scope.
Why Analogous Estimating Matters
- Speeds Up Decision-Making – Allows project teams to develop estimates without extensive analysis.
- Provides a Baseline for Further Refinement – Can be adjusted with more precise techniques later.
- Reduces Planning Effort – Helps estimate costs and timelines efficiently in the early stages.
See also: Bottom-Up Estimating, Parametric Estimating, Program Evaluation and Review Technique (PERT), Multipoint Estimating.