• Predictive Analytics for Improved Cost Management  



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Original Post Date: Monday, April 2, 2012 In my previous blog, I introduced the relationship between three “breakdown structures” commonly used in project management, and how cost estimates are linked to them and aid in their usefulness.  In this blog, I’ll dig further into these relationships, and explain their impact on my Total Ownership Cost (TOC) solution in TruePlanning.   Let’s use an example of an aircraft being built for the Army.  In this hypothetical example, the prime contractor is Boeing, and they have different departments working on various parts of the aircraft.  Department 10 is responsible for the wings and ...
Original Post Date: Thursday, March 29, 2012 Introduction The new TruePlanning COM Application Programming Interface (API) found in the 2012SR1 release of TruePlanning provides a powerful mechanism for leveraging the power of TruePlanning within custom solutions. Through the COM API TruePlanning projects can be created, updated, calculated and saved allowing for near limitless potential for integration with TruePlanning.  That said it is an “API” which means some programming will need to be done. This discussion is focused on how to get started using the TruePlanning COM API. Development Environments The TruePlanning COM API is written in C++, but is available to any programming ...
Original Post Date: Monday, March 26, 2012 In my research on project management and cost estimation, I often come across three different “breakdown structures” which are useful in dissecting a project from various points of view.  The work breakdown structure (WBS) is oriented around project deliverables; it breaks a system down into subsystems, components, tasks and work packages.  The organization breakdown structure (OBS) shows the structure of the organizations involved in the project, including how these organizations break down into sites, divisions, teams, etc.  Finally, the cost breakdown structure (CBS) examines a project in terms of useful cost categories, ...
Original Post Date: Thursday, February 9, 2012  Model Driven Engineering is a software development methodology focused on creating domain models that abstract the business knowledge and processes of an application domain.  Domain models allow the engineer to pursue a solution to a business problem without considering the eventual platform and implementation technology.  Model Driven Development is a paradigm within Model Driven Engineering that uses models as a primary artifact of the development process using automation to go from models to actual implementation.  Model Driver Architecture is an approach for developing software within the Model Driven Development paradigm.  It was ...
Original Post Date: Monday, November 28, 2011  Check out this blog post  on project estimation.  The author discusses the practice of ‘padding’ effort estimates and how destructive this practice can be to healthy project management.  She suggests that project team members, rather than padding their individual efforts at a task level, should collaborate with project management in order to produce a good solid project plan with sufficient contingency reserves.  This allows for the project plan to reflect the most likely case but contains a safety net for those cases where the stuff that was unknown at the time of project ...
Original Post Date: Tuesday, November 8, 2011  Last week I attended the 26th annual COCOMO forum.  This meeting is an interesting combination of conference and working group and for me it’s a great place to take the pulse of the software and systems estimating community.  Lots of times you’ll go to a conference like this and feel as though the same old things are repeated year after year.  Not so with this conference – it is always a great mix of seasoned practitioners and graduate students with both groups providing forward looking information and inspiration on a variety of ...
Original Post Date: Thursday, October 20, 2011  Check out this article.   “Why IT Projects May be Riskier than you Think”.  If you read through the comments you will see that this article truly resonates with many in the field.  In the article the authors discuss research of over 1471 IT projects (large projects with an average cost of $167 million) comparing budgets and expected performance with actual costs and results.  Their results were surprising in that the average overrun was only 27%.  Turns out that the average isn’t what requires study but rather the outliers.  The study found that ...
Original Post Date: Thursday, August 25, 2011  Check out this Report on Big Data from McKinsey & Company published in June 2011.  Back in the day, when personal computers were becoming widely accepted and Microsoft Windows© was the new cool thing, SneakerNet was a common means of sharing data.   Certainly the introduction and subsequent improvements of networking technology and the Internet have made data sharing a whole lot easier and quicker.  But the concept of Big Data creates a whole new level of opportunity and potential for collecting and using data in ways heretofore unthinkable. So what is Big Data?   According ...
Original Post Date: Monday, August 1, 2011 After many years of working with systems engineers and design engineers it became apparent to me that the cost of the system they were designing / building mostly seemed to be an after thought. Maybe not by the Lead Systems Engineer or Program Manager but certainly down in the trenches. The engineers working at the subsystem, component, and element levels always expressed frustration with having too much to think about to add one more variable, such as cost estimation, to their work load. I posit that this can no longer be the case. In ...
Original Post Date: Friday, July 29, 2011 PRICE Systems is integral in the INCOSE Design for Affordability Initiative as a vital member of the Working Group Internationally. The INCOSE Affordability Working Group’s definition of Affordability is: Affordability is the balance of system performance, cost and schedule constraints over the system life while satisfying mission needs in concert with strategic investment and organizational needs. The INCOSE Affordability Working Group’s definition of SE Design for Affordability is: Design for Affordability is the Systems Engineering practice of balancing system performance and risk with cost and schedule constraints over the system life satisfying system operational needs in ...