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 only possible if an organization has a coordinated and synchronized cost estimation, budget development, and execution management process. As has been the theme in the other two cost management sections; data, estimation, tool integration and a feedback loop are the keys to successful cost control and execution monitoring. The PRICE® Cost Analytics Framework provides such capability.

From management’s perspective, per Zach Jasnoff’s blog, cost control can occur through answering any of the following:

  • Analysis of Alternatives – What mix of offerings are feasible solutions for my customer?
  • Should Cost – Are my vendor/suppliers quoting us the best price?
  • Ghosting the Competition – What are my competitors most likely to bid?
  • Independent Cost Estimate (ICE) – What does an completely independent look say about my bid? Are we competitive?
  • Risk Analysis – Is our bid over conservative, how much risk are we willing to take and how much cost exposure can we absorb.
  • Schedule Estimating – Can we really do the job within the schedule constraints?
  • Trade Studies – What other configurations, materials or technologies might we consider?

 

Success can be accelerated by the PRICE® Predictive 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!