Analogous Estimating in Project Management Made Simple: Practical Examples and Uses

Project management is an ever-evolving field, constantly updating techniques and strategies.

Among the many methods utilized, analogous estimating is a practical approach, especially when project details are scarce. In this post, we'll explore the intricacies of analogous estimating, providing a clear definition, practical examples, and its varied use cases.

What is Analogous Estimating?

Analogous estimating is a technique in project management where historical data from past projects is used to estimate the length or cost of a current project. This method assumes that current project tasks are similar to past projects.

Five Practical Examples of Analogous Estimating

1. Website Development

‍Consider a previous project that involved creating a 10-page website in 3 weeks. This can be a reference for a new project of similar scope, adjusted for any design complexity or content volume differences.

2. Home Construction

‍If a 2000 sq. ft. house was previously built in 6 months, this timeline could be a reference point for estimating a new house of similar size and design, considering the same geographical area.

3. Marketing Campaign

‍The duration of a past social media marketing campaign for a product launch, say 2 months, can be a useful estimate for planning a new campaign for another product.

4. Software Upgrade

‍If a software system upgrade required 80 hours in a past project, this figure could guide the estimation for a similar upgrade, adjusting for changes in system complexity or additional features.

5. Event Planning

‍The time taken to plan and execute a previous corporate event for 100 people, let's say 4 weeks, can be used to estimate the planning duration for a similar future event.

Use Cases in Project Management

1. Early Project Planning

‍Analogous estimating shines in the early stages of project planning where detailed information is often not available. It provides a quick and efficient estimation method for project duration and cost.

2. Small or Simple Projects

‍This method is ideally suited for small or simple projects where the time and effort required for detailed estimating methods may not be justified.

3. Strategic Decision-Making

‍Analogous estimating can facilitate rapid cost and time comparisons between multiple project options, aiding in strategic decision-making.

4. Benchmarking

It can be used to validate more detailed estimates. Significant deviations from the analogous estimate might signal the need for a more thorough analysis.

In conclusion, analogous estimating is a valuable tool in the project manager's arsenal. It leverages historical project data to make informed estimates for new projects.

However, its accuracy heavily relies on the similarity between new and past projects and the quality of historical data. As such, it should be employed wisely, often in combination with other estimating techniques to achieve the best results.

Whether you're a project manager with years of experience or just starting, understanding and utilizing analogous estimating can significantly improve your project planning and execution strategies.