The QUELCE Method: Using Change Drivers to Estimate Program Costs

Abstract

Problems with cost estimation, ranging from estimator overconfidence to unintegrated tools, result in potentially billions of dollars of unanticipated expenses for Department of Defense programs. Quantifying Uncertainty in Early Lifecycle Cost Estimation (QUELCE) is a method, developed by the Carnegie Mellon University Software Engineering Institute, for estimating potential program costs in a way that acknowledges and uses uncertainty that occurs early in the development lifecycle. This report first familiarizes the reader with the QUELCE method. QUELCE computes a distribution of program costs based on Monte Carlo analysis of program cost driversassessed via analyses of dependency structure matrices and Bayesian belief networksand a standard project estimation tool. The analyses are based on change drivers, or changes that might occur that would substantially change the cost outcome of a program. The report then provides the current organization scheme of change drivers and describes how each one is used to determine any additional impacts that should be folded into the cost estimate. Finally, it introduces elaborations to the change drivers for application to sustainment-phase programs.

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Document Details

Document Type
Technical Report
Publication Date
Aug 01, 2016
Accession Number
AD1045009

Entities

People

  • Sarah Sheard

Organizations

  • Carnegie Mellon University

Tags

Communities of Interest

  • Cyber
  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Contractors
  • Cost Estimates
  • Costs
  • Data Rights
  • Employment
  • Engineering
  • Governments
  • Information Assurance
  • Law
  • Logistics
  • Maintenance
  • Probability
  • Probability Distributions
  • Software Development
  • Standards
  • Supply Chain

Fields of Study

  • Computer science

Readers

  • Life Cycle Cost Analysis
  • Regression Analysis.

Technology Areas

  • AI & ML
  • AI & ML - Bayesian Inference