Analogous Estimating Vs Parametric Estimating

Analogous and Parametric Estimation

As a thumb rule, the major difference between Analogous and Parametric Estimation is mathematical operations. Like, in parametric we do more calculation while analogous is just an expert opinion like.

PMP, CAPM and other project management related certifications are always having some portion reserve for estimation techniques. Cost estimation and duration estimation are the most significant areas.

There are a number of techniques for estimations for a project like

  • Expert Judgement
  • Analogous Estimation
  • Parametric Estimation
  • Three Point Estimation
  • Bottom-up Estimation
  • Group Decision / Data Analysis
  • Decision Making

But, here in this blog, we will look at Analogous and Parametric Estimation as these two are most confusing at the exam.

Difference between Analogous and Parametric Estimation

Both techniques are mainly used for cost and duration of any project through historical/previous data.

Analogous and Parametric Estimation

Analogous Estimation

No calculations only we use historical data of the same project. It is just like an expert judgement. This only works if you analyze the same kind of projects but if you don’t have previous data then this technique is not applicable.

Advantages of Analogous Estimation

  • Most simple technique without any hectic calculations
  • Works best if only a few details are available
  • Quick and fast output
  • Lest costly and not time-consuming

The disadvantage of Analogous Estimation

Accuracy is a question unless you have a history of the same project.

Analogous estimation is done at initial stages of projects where management have to decide either to go for this project or not – or management is looking for a quick suggestion from a Project Manager.

Example of Analogous Estimation

We want to calculate how much concrete is required to build a house. For this, you need to have high-level historical data of similar house.

Parametric Estimation

Parametric Estimation is where we use estimation at parameters level. It involves mathematical calculations and hence is considered more accurate than Analogous Estimation.  Here, we do unit wise calculations of cost, duration, man-hours etc.

Advantages of Parametric Estimation

High accuracy than Analogous

Disadvantages of Parametric Estimation

Time taking as you need to calculate unit wise

Example of Parametric Estimation

We want to calculate how much concrete is required to build a house. For this, we need to know how much total unit meter the area is? Previous productivity rates to estimate the duration and to calculate human resources and the cost.

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