Estimating Methodologies - Analogy

Definition

Forecasting the cost of future systems based on historical cost of similar or analogous system.

When used

Early stages of product/process development.

Method

• Break the system to subsystem/components.
• For each subsystem/components, select an analogous system.
• Adjust for the new system for complexity, efficiency, etc.
• Estimate the cost of the new system.
• Review the estimate.