Original Post Date: September 30, 2015

One of our larger commercial customers asked for the ability to estimate the “learned out” Nth unit.  

As always, we are here to hear you and your immediate needs.  Still in beta-test, the following is our pending new solution.  But we’d like to hear from you too here.

On the "Metrics" tab, there will be an output called "Cost of Nth Unit".  This new value represents the theoretical cost of the Nth production unit, based on learning curve calculations— unless you override with your own curve values.  You will see this learned-out unit cost at any object level.  It also shows Nth unit labor and material separately.  And very important to our commercial customer:  it will work for both Hardware COTS, as well as the Hardware Component!  {We’re working now on the Assembly object’s contributions.}  

 

The value for "N" will be set in the global inputs (found on any "Folder" in your PBS).  This input is called "Cost of Nth Unit - What is N?"); it has no effect other than changing the value for the "Cost of Nth Unit" metric.  The default value for "N" will be 100, which means the above output shows the theoretical cost of the 100th production unit.  Of course, you can override with any point value up to your total quantity.


For risk analysis, again at any object level, we are working on exposing FRISK to this “learned out” metric;  for now, we are using a risk-percentile ratio work-around, applied to this Nth Unit Cost. 

Again, we’re in Beta-test evaluation right now.  Tell us what you think.  Can you use it now?  How can
we adapt/expand for your needs?  What else comes to mind?

 

Success can be accelerated by the PRICE® Cost Analytics (PCA) integration of business, engineering, and program management objectives in order to produce competitive solutions. 

TruePlanning immediately facilitates objective quantitative assessment of customer needs/requirements, winning-business solutions, and project lifecycle cost management.

Contact me for a demonstration, either in person or via telecon. We’ve had many success stories here.  You can be next!