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One of the most frequently asked questions from new users is:  At what level should I be estimating my project in TruePlanning®?  To be clear, the question involves how detailed the product breakdown structure should be.  The answers can vary widely, as seen in the two examples below for an aircraft. Figure 1.  F-22 template available in TruePlanning® 2016 Note: subassemblies collapsed to fit PBS onto one page.   Figure 2.  F-22 estimated as one hardware cost object. The preceding examples might be extreme ends of a spectrum.  In the first example, we have provided a template in TruePlanning® 2016 that models a fighter ...
We have all likely heard of “should cost” estimates.  Boiled down: If everything goes as planned, how much should program cost?  Are there efficiencies or best practices we can employ to get the job done faster and cheaper?  We may use analogies, parametrics, bottom up estimates, or extrapolation of actual costs to make a determination.  How many of us have heard of “should price”?  “Should price” is the determination of reasonableness of price for commercial items.  When contracting personnel receive quotes for off-the-shelf items, they need tools at their disposal to determine if the item is fairly priced.  On ...
Recently, I was contacted by an Air Force estimator with a novel challenge.  The estimator’s product breakdown structure modeled the development and production of various hardware items over several years.  TruePlanning can easily assist in spreading production quantities or tracking “ship sets” of items required for a weapon system.  In this case, the user wished to have different quantities for different items.  Typically, we use a System cost object or the System Folder to spread production, which is then attributed to all components within the estimate.  Coming up with multiple production schedules within the same estimate presented a challenge. In ...
In the previous (second) blog in this series, we discussed using the NIST Special Publication 800-171 Appendix E to list all possible cyber security requirements.  We then down selected the entire list of 123 items into roughly 60 that may directly impact the software development process.  Now, we will cover how the impact of those 60 items could possibly be included in a TruePlanning® estimate. I will offer three primary methods for accounting for additional effort of cyber security requirements.  We will look at modeling the requirements as individual cost objects in the estimate.  We will then consider setting inputs ...
We will pick up where we left off on estimating the cost of cyber security by looking at requirements.  Recall from a previous blog that the requirements for Cyber Security are outlined in Appendix E of the National Institute of Standards and Technology (NIST) Special Publication 800-171 document titled “Protecting Controlled Unclassified Information in Nonfederal Information Systems and Organizations.”  In Appendix E, there are a series of tables that outline the requirement, as well as the responsible authority for ensuring those requirements are met.  There are four categories of requirements*: NCO: Not directly related to protecting ...
A recent article in the National Defense Magazine highlighted the ever increasing need for cyber security.  (See http://www.nationaldefensemagazine.org/articles/2016/12/12/pentagon-paying-more-to-be-hacked)  When working on a software estimate for a program office here at Wright-Patterson AFB, I was asked “how do you handle cyber security requirements?”  My response was, “What does that mean for your program?  How are the requirements different?”  There was no good answer.  We may be required to incorporate cyber security requirements into a new software project, but there is no really good guidance as to what that exactly means.  We can probably assume that costs are higher for a ...
Use of additive manufacturing (AM) has increased dramatically in the last 10 years, particularly in the automotive, healthcare and aerospace and defense industries.  AM differs from traditional manufacturing processes in that raw materials are slowly added together by a chemical or heat process to form the finished component.  In traditional manufacturing, material is typically removed from a larger piece of raw material until the finished component remains. With the increased use of AM comes an increase in capability, quality, and capacity.  We will examine how additive manufacturing could change the way we estimate compared to traditional manufacturing processes. A key ...
Importance of proper PBS structure Properly organizing your Product Breakdown Structure (PBS) in TruePlanning® is a critical first step to an accurate and defensible estimate.  The fundamental questions to ask are: What are you estimating? How is the system built? Where does integration occur? The answers to these three questions will assist the estimator in developing a PBS that truly reflects the work being accomplished.  Incorrectly structured projects may result in overestimation due to unnecessary levels of integration and test.  There is also a risk of underestimation by leaving out necessary levels ...
Original Post Date: Wednesday, September 25, 2013 We may all agree that risk analysis is a necessary, vital part of any valid/defensible cost estimate.  We may not agree as much on the best approach to take to quantify risk in an estimate.  All estimates contain risk.  In the words of a wise cost estimator I know, “That’s why they’re called estimates, and not exactimates!”  We must quantify and manage levels of risk.  Why?  One vital part of a successful program is the ability to build a budget based on reliable cost projections.  Reliability increases when we can analyze inherent risk, ...
Original Post Date: Wednesday, September 25, 2013 It is impossible to find a news website or magazine that is not full of articles on the effects of Sequestration.  As a cost estimator, I find the topic very interesting (and troublesome).  The immediate effects of Sequestration are widely discussed.  However, I do not see quite as much news coverage on the second and third order effects of this extremely complex policy decision. The Department of Defense (DoD) has a specific target that must be removed from the budget over the next 10 years.  Some analysts claim a doomsday scenario.  Others claim it ...