To what extent this type of methodology is still in practice and what about its standing in comparison to other methods presently being deployed for cost estimation in software engineering.
We (www.sig.eu) have recently developed a new analogy-based estimation technique where we use analogy between the architectural components of a new to be built system with the architectural components of systems in our software analysis warehouse. So far, we obtained similar accuracy as with estimation based on manual function point analysis.
we have developed and implemented one new model for reducing defects during project development time and that model easily to predict for cost estimation and shows significant improvement in the quality of the software projects(http://www.hindawi.com/journals/tswj/2014/491246/abs/).
Analogy based estimation is extensively used for very large projects. I propose that the reason it works so well is that we get better scoping of the problem. A software project is not entirely a problem of developing code.
There are many other elements of scope that have to be considered. Consider the definition of the word "scope" to be "anything that must be delivered to a stakeholder outside the project team." Thus the definition includes documentation, testing in a certification facility and demonstrations.
These are likely to be captured by analogy and likely to be missed by parametric methods.