• Predictive Analytics for Improved Cost Management  



Blog



We will pick up where we left off on estimating the cost of cyber security by looking at requirements.  Recall from a previous blog that the requirements for Cyber Security are outlined in Appendix E of the National Institute of Standards and Technology (NIST) Special Publication 800-171 document titled “Protecting Controlled Unclassified Information in Nonfederal Information Systems and Organizations.”  In Appendix E, there are a series of tables that outline the requirement, as well as the responsible authority for ensuring those requirements are met.  There are four categories of requirements*: NCO: Not directly related to protecting ...
A recent article in the National Defense Magazine highlighted the ever increasing need for cyber security.  (See http://www.nationaldefensemagazine.org/blog/lists/posts/post.aspx?ID=2268)  When working on a software estimate for a program office here at Wright-Patterson AFB, I was asked “how do you handle cyber security requirements?”  My response was, “What does that mean for your program?  How are the requirements different?”  There was no good answer.  We may be required to incorporate cyber security requirements into a new software project, but there is no really good guidance as to what that exactly means.  We can probably assume that costs are higher for a ...
We’ve added many cool new features to our Hardware estimating model in TruePlanning® 2016, and I’d like to introduce the new Learning Curve features in this blog. First, we’ve added the ability to pull out the theoretical cost of any individual production unit, anywhere along the learning curve.  We call it the “Nth Unit Cost” metric.  This has been requested by many users, notably Air Force users and aircraft manufacturers, where it is common to use the 100th unit cost as a reference point to compare different types of aircraft.  Simply enter a value for “N”, and the Metrics tab ...
TrueMapper strives to provide an environment that allows users to be as efficient as possible when creating mappings. Sometimes users need to map all of a specific type of Cost Object, Activity or Resource to specific WBS items. In this case users would use the “Generic” tab of the Mapping Assignment Window. Assignments made from this tab can be stored off in a *.tpgen file and used against any PBS structure. Recently, some TruePlanning users came across a situation where they needed to assign all Resources from specific Cost Objects to a specific WBS element, except one. Those familiar with ...
TruePlanningXL is the TruePlanning/Excel interface reboot. Excel is a popular topic in the PRICE universe because Excel is clearly the most popular tool in the cost analytics quiver. Customers such as the Air Force, Army and the majority of the primary suppliers have processes inextricably based on Excel. One of the primary design goals of TruePlanningXL is for it to be as easy to use as possible. To support this, great effort is being made to study how it is used and improve TruePlanningXL’s usability based on the research. A second primary design goal is for TruePlanningXL to be ...
In our previous blog, we defined PCA and PRICE’s unique approach via TruePlanning.  This blog is the seventh of seven to describe by specific impacts on key business processes and functional areas that benefit from this capability. Affordability is an abstract term that most people think they understand but have difficulty articulating. The United States Department of Defense defines affordability as the degree to which the life-cycle cost of an acquisition program is in consonance with the long-range investment and force structure plans of the Department of Defense or individual DoD Components. However, the Department of Defense acquisition regulations require program ...
In our previous blog, we defined PCA and PRICE’s unique approach via TruePlanning.  This blog is the fifth of seven to describe by specific impacts on key business processes and functional areas that benefit from this capability. Estimates based more on engineering judgment than statistical data lack credibility. This comparison is especially true when proposing design alternatives to meet a customer’s unique program requirements. Companies that can’t demonstrate a rigorous affordability management process score low with their proposals because their bids presented without statistical data to back their estimates appear over-optimistic and risky, or too expensive. This situation ultimately has a ...
In our previous blog, we defined PCA and PRICE’s unique approach via TruePlanning.  This blog is the fifth of seven to describe by specific impacts on key business processes and functional areas that benefit from this capability. So what are my competitors most likely to bid? Competition Ghosting (sometimes called competitive analysis), can be an important capability when preparing for opportunity qualification or the bid & proposal development. Estimating what you believe your competition might do is extremely useful intelligence for your own Price-to-Win process. Ghosting empowers the user with an objective assessment of the competitor’s offering.  This is done for two ...
In our previous blog, we defined PCA and PRICE’s unique approach via TruePlanning.  This blog is the fourth of seven to describe by specific impacts on key business processes and functional areas that benefit from this capability. Effective management of a system or program starts with a budget in the front end and execution control and evaluation in the back end. Effective cost control can be achieved if the organization has a dynamic and flexible cost estimation capability which sets a baseline in the budgeting process and updates the costs / estimate-to-complete quickly and with minimum effort. Effective cost control is ...
In our previous blog, we defined PCA and PRICE’s unique approach via TruePlanning.  This blog is the third of seven to describe by specific impacts on key business processes and functional areas that benefit from this capability. Budgeting is a critical first step in developing an effective cost management plan. The ability to integrate your specific budget tools with a predictive cost estimation engine, whose output can be tailored to your organization’s cost activity center structure, is a very powerful capability. The requirements to achieve this level of budget management consist of the following: Accessing historical budget ...