Many times during the sales process we are asked to give a cost estimation based on our early understanding of an application’s core features. In order to responsibly and efficiently estimate, we conduct a range analysis. We use this technique because we want to establish a responsible middle ground between our optimistic and pessimistic estimates. Our estimate is appropriately buffered for the risk we see in the defined tasks.
This spreadsheet is the tool that we use to conduct our analysis. Tasks can be estimated in any time duration that you choose (i.e. hours, days, weeks). At the start of a large project we generally estimate tasks in days or weeks.