Guide to Analogous Estimating (Estimation Techniques)

Analogous Estimating is a significant technique in project management, which is essential in creating realistic project plans and schedules. Here's a breakdown of the Analogous Estimating:

Why it is important: Analogous estimating provides the base or initial phase in any quality management plan. This technique is efficient, less time-consuming and less costly compared to other estimation techniques (such as bottom-up estimating). It serves as an excellent tool for making a quick or preliminary budget and time estimation.

What it is: Analogous Estimating is a technique in project management for estimating the duration or cost of an activity or a project using historical data from a similar activity or project. It relies on the fundamental idea that a task will take a similar amount of time as it did previously.

How it works: The process includes comparing the current project with similar ones to arrive at an estimate. It uses relevant historical data to produce estimates for current tasks.

How to answer questions regarding Analogous Estimating in an exam: Comprehend the fundamental concept and how it works when dealing with analogous estimating. Ensure to explain that it's a form of expert judgement, and uses historical information of past activities that are similar to the current task.

Exam Tips: Answering Questions on Analogous Estimating
1. Remember to highlight the efficiency and cost-effectiveness of analogous estimating in your answers.
2. Understand and explain clearly how the technique uses past project data.
3. Emphasise that Analogous Estimating often forms the initial basis for further, more detailed analysis.
4. Be sure to mention that the accuracy of Analogous Estimating is wholly dependent on the similarity between the current and previous projects.
5. Make a note that although it’s often less accurate than other techniques, it is quite helpful in the early stages of project planning.