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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, September 25, 2013 We all pull data and research from various sources when creating a project estimate.  You may pull together public CERS, internal research, subscription based data or commercial models.  In the end you want your entire estimate in one format.  If you use TruePlanning, you may have used the “Other Direct Cost Object” in the past to include costs estimated in another model.  You may have utilized the “Equation Cost Object” to include a CER with up to 5 variables, which would allow you to account for the size and complexity of an ...
Original Post Date: Thursday, September 27, 201 I am frequently questioned by clients and prospects about the applicability of PRICE’s parametric software estimation model to agile software development projects.  There are several ways one could respond to this.  My first thought is that if a shop is truly agile, they don’t need an estimation tool.  They know their development team velocity because agile teams are committed to measurement.  They also either know when they need to make a delivery – in which case whatever amount of software they’ve build by that point will be released.  Alternatively they may know ...
Original Post Date: Wednesday, February 23, 2011 In the world of estimating, accuracy is the first question out of people’s mouths.  Above all else they want to know the accuracy of an estimate.  How accurate is that approximate judgment?  Craziness! True accuracy can only be determined after the project or effort has been completed and a post-audit analysis reconciles what was expected to happen with what did happen.  This is a very expensive, time consuming process that many preach about but few actually attempt.  In my experience, when people ask about accuracy what they are really interested in is ...
Original Post Date: Tuesday, February 22, 2011 In the February 2011 issue of National Defense, I was struck by the article “Uncertain Path Ahead for Military Truck Fleet”[1]. This article centered on the best strategies for modernization of the aging fleet of Humvees. The recapitalization of 150,000 Army and 25,000 Marine Corps Humvees is creating a “fix or buy new” dilemna for decision makers. According to the article, GAO analyst Michael J. Sullivan should include a “cost-benefit analysis that would minimize the collective acquisition and support costs of the various truck programs, and reduce the risk of overlap or ...
Original Post Date: Monday, January 17, 2011 While I don’t like to admit to visiting a website entitled geekArticles.com, I did stumble across a reprint of an essay by Grant Rule “Bees and the Art of Estimating”  that some of you may find interesting and instructive.  The author participates in his own form of “Estimation Trivia” by posing the following challenge “Take paper and pencil and write your estimate for the number of insects in the average hive of English honeybees.”  Of the approximately 1100 software measurement and process improvement professionals he has challenged thusly,  only about 10 have ...
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: Thursday, January 6, 2011 Today, PRICE Systems, Senior Research Analyst, Bob Koury, will be presenting on Will Cost/Should Cost management. The presentation will focus on two main requirements mandated in the Ash Carter memo (mentioned here several times): Developing Should Cost/Will Cost targets and establishing Affordability as a requirement.  An example will be provided of how parametric estimating models were used to establish “Should Cost” targets and how they can be used by a budget authority (government or Industry) to be an informed consumer of contractor or sub-contractor bids. The demonstration portion of this webinar will focus on ...
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 ...