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Original Post Date: Monday, February 28, 2011 PRICE Systems recently accepted an assignment to complete a "Should Cost" estimate for a U.S. ally on a weapon system. The estimate included not only analysis on production costs, but also should cost on various operations and support costs. The only information provided by the client was quantity and time frame for production. A major ground rule for the estimate was that all data specific to the weapon system must come from publicly available information.  For example, mass, manufacturing process, and learning curve information must come from the public domain.  After reviewing the scope for the estimate, we decided to also ...
Original Post Date: Monday, February 28, 2011 I recently attended the Wharton Aerospace Conference and Federal Networks 2011.  Amid the obligatory discussions about the economic climate and federal budget deficit, an interesting topic bubbled up.  There  was a certain preoccupation with an idea called ‘consumerism.’  According to Webster, consumerism means "...the promotion of the consumer's interests; the theory that an increasing consumption of goods is economically desirable; a preoccupation with and an inclination towards the buying of consumer goods." As is often the case, there is a difference between definition and connotation. The intended meaning of consumerism at these events was the ...
Original Post Date: Monday, February 28, 2011 What follows is PRICE's interpretation of the DOD-HDBK-343, which addresses design, construction and testing requirements for a type of space equipment. Within the document are specified several levels of Class Definitions for space programs, space vehicles and space experiments. The classes are briefly described below. Class A - High Priority, Minimum Risk Class B - Risk with Cost Compromises Economically Re-flyable or Repeatable Minimum Acquisition Cost HDBK-343, originally published in 1986, was reviewed and found to be still valid in 1992.  We can't due ...
Original Post Date: Friday, February 25, 2011 PRICE Systems is currently developing a COM interface for TruePlanning. I know, I know…  What’s COM you say? COM stands for (Component Object Model) and it's a programmable interface which exposes the TruePlanning estimating brains for integration and analysis!  I know it sounds boring but it’s really cool because it allows anyone, including our users, to build “apps” for TruePlanning similar to the way “apps” are built for the iPhone.  Let me give you some examples of some apps that you can build:  Excel solution, sensitivity analysis,  project comparison, risk simulation, total cost of ...
Original Post Date: Friday, February 11, 2011 The DoD Cost Analysis Symposium (DODCAS 2011) is next week, Feb 15-18.  I’ll be there along with several of my colleagues at PRICE Systems.  This conference consistently provides an excellent source of information and shared experiences for the acquisition community and I am anxious to attend again this year.  Last year the conference occurred shortly after Congress passed the Weapons System Acquisition Reform Act of 2009 (WSARA) - and the majority of the sessions were focused on discussions about how the services, contractors and the government leadership planned on dealing with this new law.  From ...
Original Post Date: Wednesday, January 12, 2011  TruePlanning 2010 SR1 estimation software is now available as an upgrade for existing PRICE customers. The most significant update to this version of TruePlanning is the capability to use both parametric estimating models as well as analogous data to produce estimates. This capability validates and increases the defensibility of estimates. TruePlanning provides a framework that allows content driven parametric models to be estimated in one system. Most notably, hardware, software, IT and Systems of Systems (SoS). No other commercially available estimating tool can make that claim. However, whereas in previous versions estimates relied on ...
Original Post Date: Tuesday, January 11, 2011 Last week I gave a webinar which detailed the PRICE perspective on Should Cost & Will Cost Management. The responses I have received have been very positive and also informing. For those of you who could not attend you can view the recorded version of that webinar here. Below is a brief summation of that presentation and some key takeaways. The Under Secretary of Defense issued a memo late last year. The thrust of the memo was the current need for greater efficiency and productivity in defense spending. His guidance contained 23 principal actions for improving the ...
Original Post Date: Friday, December 3, 2010 Yesterday I had the pleasure of speaking at the New England SCEA Chapter December. The attendees were a great mix of experienced, seasoned cost estimators and young, new talent, eager to learn techniques to apply on the job.  My topic was the program management value of combining estimating Rules of Thumb with more rigorous cost estimating models and databases [link to presentation .pdf].  Rule of Thumb estimating is used every day by program managers to help guide their projects.  Oversight authorities rarely have the resources to perform detailed program estimates, so they ...
Original Post Date: Wednesday, November 17, 2010 Unfortunately this is a true story. I decided to have a couple of gold fish in a nice glass bowl, having done my sums I estimated the cost should be: Bowl £20.00 Gravel £5.00 Two gold fish £8.00 Food £4.00 Making a total of £37.00, ok I can afford this, off I go to the pet shop. The pet shop advised “fish don’t like bowls”, plus “it’s cruel to keep them in one”, but as a child I often won fish at the ...
Original Post Date: Thursday, September 23, 2010 You need 3 things for your software estimates to be successful. And I will add a fourth one in after I talk about the first 3. 1. You need qualified and experienced people to generate the estimates. They have to know how to estimate and they have to understand what the problem is that the project is going to solve…..at least well enough to estimate it. This can be one person or many depending on the difficulty of the business area. The harder it is, the better having more brains look at the problem. But not to the point ...