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Definition
| Any cost specifically identified with a particular final cost objective |
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Definition
| Any cost not specifically identified with a single final cost objective. (Overhead) |
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Definition
| A cost that does not change the rate of pdn |
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Definition
| A cost that changes with the rate of pdn |
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Definition
| A cost which occurs again and again, such as those associated with the assembly labor and material manufacture of a given quantity of items |
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Definition
| A 1 time type cost which is incurred produce items, such as engineering design and development, travel, purchase and installation of equipment |
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Definition
| Comparison of a new system with "similar" existing systems for which there is accurate cost and technical data |
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Definition
| Uses a data base of like elements and generates an estimate based upon a particular performance or design characteristic |
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Term
| Engineering Cost Estimate |
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Definition
| "Bottom-Up" compilation from lowest level in WBS |
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Definition
| Based on data from earlier units of the same system |
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Term
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Definition
| A mathematical way to explain and measure the rate of change of cost (in hours or dollars) as a function of quantity. As applied, as the total quantity of units produced doubles, the cost per unit decreases by some constant percentage. |
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Term
| How does the Govt. generally use Learning Curve Theory? |
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Definition
| As a quantitative tool to make future estimates of recurring costs in the production phase. |
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Term
Misinterpretation of scope
Omissions
Poor Definition of Work required |
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Definition
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Term
Overly optimistic schedule
Incorrect incomplete WBS
Vendor Changes |
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Definition
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Term
Inaccurate Lead Times
Application of improper skill levels
Industry/Economy Changes |
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Definition
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Term
Incorrect Cost Estimating Technique
Unplanned Risk Mitigation
Incorrect Overhead rates |
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Definition
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Term
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Definition
Total cost of acquisition and ownership of a system over its useful life. Includes:
1. Research & Development Costs
2. Investment Costs
3. Operating and Support (O&S) Costs
4. Disposal Cost |
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Term
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Definition
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Term
| Money found Investment Costs |
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Definition
Procurement (P_)
Military Construction (MILCON) |
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Term
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Definition
O&M
Military Personnel (MILPERS) |
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| Money found in Disposal Costs |
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Definition
| Operation and Maintenance (O&M) |
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Term
The Procurement Cost and Program Acquisition Cost are reported in the SAR and are subject to Nunn-McCurdy.
(T/F) |
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Definition
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Term
| In deciding what Cost Estimating Method to use consider: |
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Definition
Availability of historical data
Level of detail required
Adequacy of system description
Time/resource constraints |
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Term
| What cost estimating methods are primarily used at MS A |
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Definition
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Term
| What cost estimating methods are primarily used at MS B |
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Definition
Extrapolation
Engineering
Paremetric
Analogy |
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Term
| What cost estimating methods are primarily used at MS C |
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Definition
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Term
| Analogy Strengths & Weakness |
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Definition
Stength:
Quick
Inexpensive
Easy to Change
Weak:
High (system) level
Subjective
Not as precise |
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Term
| Parametric Strengths & Weakness |
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Definition
S:
Verifiable
Easy to "what if"
Inexpensive
OSD CAIG preferred method
W:
Moderately subjective
Precision only as good as your database
Historical data not always available |
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Term
| Engineering Strengths & Weakness |
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Definition
S:
Very accurate in later stages of E&MD
Limited subjectivity
W:
Very expensive
Very time consuming
Hard to do "What if" |
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Term
| Extrapolation Strengths & Weakness |
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Definition
S:
Little subjectivity
Very accurate
OSD CAIG preferred method
W:
Don't have actual costs until late phases
Budget may already be submitted |
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Term
| Learning Curve Theory: Why does it work? |
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Definition
Jab familiarization (low turn over)
Improvement in organizational coordination
More efficiency in producing sub-assemblies
More efficient parts supply system
More efficient tools & instructions |
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Term
| Criteria for Learning Curve Theory to occur. |
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Definition
Hi proportion of manual labor
Uninterrupted production
Production of complex item
Stable technological design
Continuos pressure to improve |
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Term
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Definition
Program Office Estimate
A detailed estimate of costs normally required for high-level decisions. |
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Definition
Independent Cost Estimate
Estimate prepared by an organization that is not under the supervision, direction, or control of agency that is directly responsible for carrying out the program |
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Term
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Definition
Cost Analysis Requirements Description
The common description of the salient technical and programmatic features of the program that is used by all the teams preparing cost estimates |
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