• Predictive Analytics for Improved Cost Management  



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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 ...
Original Post Date: Tuesday, April 20, 2010 In September of 2009 the United States Government Accountability Office (GAO) submitted a report[1] discussing the lack of robust Analysis of Alternatives for weapons systems. The report indicated that … “Cost, schedule, and performance problems in the Department of Defense’s (DOD) weapon system programs are serious. Why is it that DoD weapons programs experience a simultaneous cost growth and performance degradation? I believe the answer is found in unrealistic cost estimates and schedule estimates mostly driven by pressure to win a program within a certain budget constraint. Excessive requirements change either through poor ...
Original Post Date: Monday, June 7, 2010 Currently we are exploring the best approach to including a more comprehensive cost estimate for Total Ownership Costs (TOC) into TruePlanning. The current version of the software has focused on development and production costs with some life cycle costing including. The life cycle costs included are focused on the system specific O&S costs such as initial spares for priming the supply pipeline, maintenance, replenishment spares, etc. It is a system view as opposed to a program view of TOC. As we better understand the need to conduct affordability studies it has become clear that design decisions ...
Original Post Date: Monday, September 20, 2010 I have been fortunate in my career to have been associated with some great mentors. Each individual has provided me a bit of a golden nugget to carry with me as I tried to navigate my way through the professional waters. My first “civilian” manager, after I left the service and joined industry, provided me a list of the Laws of Analysis (I had just started a position as an operations research analyst). He explained that this list was a mix of serious and tongue in cheek snippets of wisdom. I looked at ...
Original Post Date: Wednesday, September 29, 2010 In May of this year the Washington Post published an editorial article on the need to reduce waste in the Defense Department. The byline of the article was “Defense Secretary Gates’s war of necessity against wasteful spending.” In this article the writer points out that the secretary is taking on the challenge of maintaining our military force [at reasonable level of effectiveness] during a time in which the President and Congress are seeking cost savings / reductions based on the decrease in our presence in Iraq.  Mr. Gates goal is to look for efficiencies ...
Original Post Date: Wednesday, August 25, 2010 To me the greatest strength of TruePlannning®  is its flexibility and wide range of parameters. AND, to me the greatest weakness of TruePlanning®  is its’ flexibility and wide range of parameters. The nature of the TruePlanning® framework, the idea of cost catalogs with cost objects, and the implementation of activity based costing allows or provides for a wide range of solutions to our cost estimating requirements. TruePlanning’s ® ability to address a wide range of cost problems lies in its flexibility and extensibility. The clever use of worksheets, multipliers, and the product breakdown ...
Original Post Date: Monday, August 18, 2014 I had the distinct pleasure last week of attending the 2014 NASA Cost Symposium.  While to the uninitiated this might sound like a bit of a snoozer – it was actually quite interesting and proved to be the source of a ton of valuable information.  The event took place at Langley Research Center in Hampton, VA – near Williamsburg, Newport News, and not too far from Virginia Beach.  My participation was somewhat self-serving in that I was there to talk about PRICE’s new Space Missions Cost Models for TruePlanning®.  This model – discussed ...
Original Post Date: Friday, July 25, 2014 July 2014 marked the 25th anniversary of Neil Armstrong’s historic stroll on the moon.  If you go to the NASA website and select Missions you’ll probably be amazed at the number of missions in NASA's past, present, and future.  Unless you’re living under a rock, you know about the International Space Station, and the Hubble telescope but I’m guessing there’s a lot about space missions that many of us are unaware of.  The Dawn spacecraft, which was launched in 2007 from Cape Canaveral, was sent into Space to help NASA scientists learn about the history ...
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 ...