Planning Level Cost Estimating-Science, Art or Witchcraft?

Abstract

Development of a planning level cost estimate is a different process than development of estimates based on detailed plans and specifications. Because it is part of an iterative process, planning level estimating requires an approach that yields estimates quickly and reproducibly while accounting for the effects of the most important design parameters. There are tradeoffs between accuracy and level of effort involved in preparing these estimates. As the input data becomes less precise, less effort should be expended in performing the estimate. Some guidelines are presented in this paper for developing cost functions. While the functions can be based on historic or synthetic cost data, it is easier to work with synthetic data. However, the functions must be checked with historic data before they are used. Estimating should not be considered as a process separate from planning. Planning level cost estimating is evolving from a mysterious art into a rigorous science. As such, planning level cost estimates are becoming more accurate and reproducible and easier to prepare, and thus, of greater value in decision making. (Author)

Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1983
Accession Number
ADP001902

Entities

People

  • Thomas M. Walski

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Accounting
  • Accuracy
  • Cost Estimates
  • Costs
  • Specifications
  • Water
  • Water Supplies

Readers

  • Educational Psychology
  • Life Cycle Cost Analysis
  • Systems Analysis and Design