• Predictive Analytics for Improved Cost Management  



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Original Post Date: Monday, December 6, 2010  In his August blog-entry here, Zach Jasnoff outlined typical client perspectives for the different types of analyses that TruePlanning can accommodate. Working on a large project, we’ve experienced situations that, realistically, can happen where the initial intent and model structuring later have the boundaries of model appropriateness stretched. An Analysis of Alternatives (AoA), for example, is meant to measure deltas between baseline and its alternatives. If common costs “wash” then they can be excluded… which becomes an issue when treated as a Rough Order Magnitude for customer budgeting.  Likewise, if a ROM or Independent Cost Estimate ...
Original Post Date: Tuesday, August 24, 2010 Over the past several weeks several users have inquired about the best way to estimate costs associated with porting existing software to a new hardware environment. Normally for this situation some of the existing software will require some amount of adaptation to operate on a new server. However, a large portion of the existing software will only require integration into the new environment.   Estimating software costs associated with the above will require the use of several cost objects: - Systems cost object if program management, Quality Assurance, configuration, and    documentation costs are to be included in ...
Introduction: The goal of this blog is to show how data can flow between TruePlanning and ProPricer. This walkthrough is based on estimating a software application that will provide users the ability to track objects orbiting the Earth using a feed from some fictitious data stream. The benefit is the ability to get the labor requirement (effort in hours) estimated by TruePlanning into ProPricer in a seamless, easily repeatable process.   1. Create ProPricer Proposal for the Orbiting Body Tracking application The first step is to create a proposal in ProPricer with a WBS. Each task in ProPricer will have a set of ...
Original Post Date: Thursday, July 17, 2014 Introduction Parametric cost estimates provide high quality, defendable estimates early in a project’s life cycle. This makes them ideal when producing bid and proposals. The nature of parametric cost estimates, however, requires the results of the estimate to be framed in terms of specific CERs and Activities and Resources. It is common for an organization to have a more granular set of Resources than the ones used to support the CERs. One approach to resolving this issue would be to use the TrueMapper application from PRICE Systems to map TruePlanning Resources to a more ...
Original Post Date: Thursday, July 10, 2014 Introduction TruePlanning provides a powerful and highly customizable reporting environment. Project data can be viewed from many different perspectives and those perspectives can be saved and reused across all projects. Results can be exported to Excel and Word as custom reports. There are, however, some instances where there is a need to get beyond the two axes used in TruePlanning’s reporting engine. This need is sometimes expressed by users preparing TruePlanning cost estimating project data for use in a bid or proposal. Perhaps the data needs to be split by phase and labor/non-labor over ...
Original Post Date: Tuesday, July 1, 2014 Whether you’re doing a software cost estimate to support a Bid and Proposal effort, a software valuation, should cost analysis, or to develop a detailed project plan, it is vitally important to understand the ‘size’ of the software you are estimating.  The problem with software size is that it tends to fall into the intangible realm of reality.  If you tell me you are building a widget that weighs 13 pounds, I can really start to get my head around the task at hand.  If I’m chatting about this with my European colleagues, ...
Original Post Date: Friday, June 20, 2014 Proposal estimates based on grassroots engineering judgment are necessary to achieve company buy-in, but often are not convincing or not in sync with the price-to-win.  This contention can be resolved through by comparing the grassroots estimate to an estimate developed using data driven parametric techniques.  Parametric estimates apply statistical relationships to project data to determine likely costs for a project.  Of course, for a parametric model to properly support this cross check of the grassroots estimate, the proper data must be fed into the model.  This most likely requires the estimator to reach ...
Original Post Date: Wednesday, April 2, 2014 Introduction Parametric estimates provide reliable, reproducible, and flexible views into cost and effort so it’s only natural to want to include this data in a bid and proposal workflow. With TruePlanning 2014 big steps have been taken to make such integration seamless and easily reproducible.  New tools in the TruePlanning suite of products, as well as, integrations with some of the major bid and proposal software applications are at the heart of this new feature set. You can learn more about TruePlanning 2014 and the PRICE cost estimation models at our website, but let's ...
Original Post Date: Thursday, March 20, 2014 Here’s a conundrum.  You are a software estimator responsible for helping the decision makers in your company determine what business to pursue and what business to steer clear of.  You know, that to win profitable business, your company first needs to decide which opportunities are golden and which should be avoided.  You also know, that at the point at which this decision needs to be made, there is very little information available to support a quality estimate.  Add to this the fact that software estimation is hard   at almost any stage.  What’s ...
Original Post Date: Thursday, March 20, 2014 One of the complications in generating Bids and Proposals for Modules and Microcircuits is determining the “Should Cost” for better cost realism. Most of the electronic modules and their components in the proposals are not actually manufactured by the Proposer, but rather by a subcontractor, thus becoming a Purchased item. It is difficult to determine the cost of making the Module, and determining a fair cost. Costs for the modules include Assembly and Test costs together with the component costs. Components such as ASIC’s (Application Specific Integrated Circuits), have both the cost of developing the devices and ...