Impacts of Advanced Manufacturing Technology on Parametric Estimating
Abstract
THe introduction of advanced manufacturing technology in the aerospace industry poses serious challenges for government cost analysts. Traditionally, the analysts have relied on parametric estimating techniques for both planning and budgeting. Despite its problems, this approach has proven to be a remarkably useful and robust tool for estimating new weapon system costs. However, rapid improvements in both product and process technology could exacerbate current difficulties, and diminish the utility of the parametric approach. This paper reviews some weakness associated with parametrics, then proceeds to examine how specific aspects of the factory of the future may further impact parametric estimating, and suggests avenues of research for their resolution. This paper is an extended version of Cost Estimating for the Factory of the Future. Parametric estimating is a method by which aggregated costs are derived as a function of high-level product characteristics or parameters. The resulting equations are known as cost estimating relationships (CERs). Such equations are particularly useful when detailed technical specifications are not available.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1989
- Accession Number
- ADA228232
Entities
People
- Paul G. Hough
Organizations
- RAND Corporation