The graphics on the left side shows high level users' view of this estimation model.
The selection of the choice of estimation model-I or model-II is done while configuration the estimation project. However, you can change it any time. The selected estimation method is tied up with estimation reports.
User Requirements are used to create a Work Breakdown Structure (WBS), tasks are classified as small or medium or large. Depending on the model used, 3-Points estimates for medium sized tasks are entered, resources assigned and tasks on critical path identified. Outsource Profiles are assigned to tasks to produce outsource estimates.
The whole process is systematic and straight forward. You can create WBS components for standard tasks, store them and use then to rapidly build a WBS. Here you need not enter the 3-Points estimates as these will be present in the WBS components.
The models provide you ways to speed up the estimation process.