Term
1. Definition & Planning
(5 steps)
2. Data Collection & Analysis
(identify, specifiy, & collect raw data on cost drivers)
3. Estimate Formulation
4. Review & Presentation
5. Final Documentation
(introduction, main body, summary)
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Definition
| What are the 5 steps in the Cost Estimating Process? |
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Term
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Definition
| 'An estimate's validity, completeness, and credibility depend on the cost estimators being involved at the outset of the task' best describes which step in the cost estimating process? |
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Term
1. Budget Formulation
2. Comparative Studies |
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Definition
| Analysts can group the purpose of estimates into two categories, what are they? |
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Term
Work Breakdown Structure (WBS)
WBS and Cost Element Structure are the two categories in which to focus the system being estimated |
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Definition
| What provides a framework for program and technical planning, cost estimating, resource allocations, performance measurements, and status reporting? |
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Term
| Data Collection & Analysis |
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Definition
| 'The direction taken in collecting historical data will be determined by the choice of estimating methodologies' defines what part of the Cost Estimating Process? |
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Term
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Definition
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Term
Helps determine the cost of future programs as well as focus estimating effort.
1st Group - looks at functions or characteristics of items that help in understanding why cost change from system to system
2nd Group - help focus estimating efforts towards the parts of the estimates that is large or ambiguous |
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Definition
| Cost drivers fall into two groups, what are they? |
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Term
- Based on historical data too limited to allow statistical estimating
- Characterized by use of a single historical data point serving as the basis for a cost estimate or portion thereof
- Also called analog, analogous, or comparative cost estimate
Adjust cost of 1 historical project
Adjust analogous system cost or create cost factor
Fast, inexpensive, easy to change |
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Definition
| What are analogy cost estimates? |
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Term
adjustment
(scaling or adj of a historical data point)
or
cost factors
(Cost Estimating Relationships - ratio or percentage)
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Definition
| How can analogy methods be applied? |
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Term
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Definition
| What is a CER known as that is proportionate to a single independent variable? |
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Term
1. It attempts to describe relationship between physical or performing characteristics of an item & its cost to help understand why cost vary
2. It needs at least five historical data points
Measure of trends across programs
Apply statistical methods to cost of several systems (CER)
Based on greater than 1 data point
Can measure error
Easy for what-ifs |
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Definition
| What are two characteristics of the Parametrics method that separate it from the analogy method? |
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Term
- Widely used in all cost estimates
- useful in cases where detailed information about the new system is limited
Some details on plan of action |
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Definition
| What is a typical use for Parametric cost estimating? |
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Term
done using correlation statistics
"regression equations"
(standard error, coefficient of variation, coefficient of determination) |
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Definition
| One of the strengths of parametric estimates is the ability to quantify how precise the estimate can be. how is this accomplished? |
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Term
Engineering
used: initial deployment elements/process known
labor intensive, slow expensive
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Definition
What is referred to as Detailed, Grass-roots, or Bottoms-Up estimating?
Rarely ever used by analysts
Lab, Mtl & OH $
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Term
- Very detailed data to accomplish this methodology successfully
- Very time consuming task
most cost is known - pro
too late to adjust or build budget - con
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Definition
| What must analysts have access to in order to accomplish the Engineering method? |
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Term
Used after the project has begun (established process)
- Based on the assumption trends that exist at the time of the estimate will continue into the future |
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Definition
| When is the Actual Cost (Extrapolation) method used? And on what assumption is it based? |
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Term
EACs - Estimates at Completion
(use earned value data provided by a contrator to discuss how well a contractor is doing)
Learning Curves
(allow the capture of efficiencies achieved in repetitive task environments) |
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Definition
| What are the main techniques used when applying the Actual Cost method? |
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Term
| consulting with one or more experts (specialists), who use their experience and understanding of the proposed project to arrive at an estimate of its cost |
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Definition
| What is the Expert Judgement (Opinion) Technique? |
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Term
- Business Forecasting
- Eliciting of expert opinion is often the only approach possible to obtain technological forecasts for 10 to 20 years or more into the future
- Determine level & allocation of basis research effort
- Use this approach in both industry and in DoD |
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Definition
| What is a typical use of Expert Opinion? |
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Term
1. Determine the purpose of the estimate - 2 categories
2. Define the system (what) being estimated 2 categories
3. Identify ground rules and assumptions
4. Select the estimating approach(es)
5. Put the team together |
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Definition
| Definition and Planning stage goal is to get at the hart of what is required to perform the task. This stage is further subdivided into the following activities? |
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Term
a Work Breakdown Structure (WBS-like) structure that is used to estimate and collect costs associated with O&M.
established a standard vocabulary for identifying and classifying the O&M costs of a system. |
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Definition
| What is a Cost Element Structure (CES)? |
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