• Predictive Analytics for Improved Cost Management  



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I hope you have enjoyed my series of blogs on the Four Pillars of Affordability. I have tried to impart to you what I have learned during my 30 years in the Defense Industry and the last 25 years as an Affordability Manager and cost estimator. The purpose of the Four Pillars of Affordability is to enable you, and your program, to develop a product for your customer that is considered affordable and ultimately, a value to them. My definition of Affordability is: Affordability is the process that balances performance with price to meet customer needs. A product is ...
In my first blog of this series I introduced you to the Four Pillars of the Affordability Process. They are: 1.       Management Support 2.       Methodology 3.       Training 4.       Tools/Automation In this fifth blog I write about the Fourth Pillar; Tools/Automation, teaching you what I have learned over the past 25 years as an Affordability Manager and Cost Estimator. Now that Management Support is in place, a written Methodology has been published giving Affordability the legitimacy it needs, responsibilities delineated, and templates to follow, and both Management and Design IPT Members have been trained, it is time to focus on the tools, automation, and support personnel ...
In my first blog of this series I introduced you to the Four Pillars of the Affordability Process. They are: 1.       Management Support 2.       Methodology 3.       Training 4.       Tools/Automation In this fourth blog I will provide you with the benefit of my insight and years of experience by writing about the Third Pillar; Training. Once Management Support has been obtained (The Key) and a written Methodology (The Heart) published to breathe life into the process it’s time to train management and the members of Design Integrated Product Teams (IPT) in Affordability Methodology and its application at the program and IPT levels. Affordability training is best focused ...
In my first blog of this series I introduced you to the Four Pillars of the Affordability Process. They are: Management Support Methodology Training Tools/Automation In this third blog I will give you the benefit of my insight and experience by writing specifically about the Second Pillar; Methodology. In my experience it is a written Affordability Methodology that is the heart of the Affordability Process. The Methodology breathes life into the process and details the specific requirements to implement and make an Affordability effort successful. A written Affordability Methodology does ...
In my first blog of this series I introduced you to the Four Pillars of the Affordability Process (As a reminder: the definition of Affordability is: Affordability is the process that balances performance with price to meet customer needs.). They are: Management Support Methodology Training Tools/Automation In this second blog, I will give you my insight and write specifically about the First Pillar: Management Support. It is my personal experience that Management Support of the Affordability Process is the single most important factor that will enable Affordability to flourish ...
My name is Bill Williamson. Welcome to my blog. I have been in the Defense Industry for over 30 years. I am an affordability and cost estimating subject matter expert (SME). I have 25 years of experience as an Affordability Manager and Cost Estimator. I am an expert in both the PRICE TruePlanning and ACEIT cost models. For my first series of blogs I am going to write about the four pillars of the Affordability Process and provide you my unique insight into making the process work for your program. The definition of Affordability is: the process that balances performance ...
Original Post Date: Wednesday, November 10, 2010 I was recently struck by Ash Carter’s (Under Secretary of Defense for Acquisition, Technology & Logistics) Memorandum for Acquisition Professionals, Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending (14 September 2010). Within this broad sweeping memo, Ash Carter outlines 23 principal actions in five major areas aimed at increasing efficiency in Defense acquisition.  The first major area covered is “Target Affordability and Control Cost Growth”. Within this major area, program managers must treat affordability as a requirement before milestone authority is granted to proceed (starting with Milestone A). This ...
Original Post Date: Friday, December 17, 2010 In last month’s blog I wrote about Ash Carter’s (Under Secretary of Defense for Acquisition, Technology & Logistics) Memorandum for Acquisition Professionals, Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending (14 September 2010). I concluded the TruePlanning unified framework and comprehensive cost models, is a tool very well suited to provide the types of analysis outlined in the memorandum. In terms of Should Cost and Independent Cost Estimates (ICE), TruePlanning estimation software provides the industry standard capability to conduct Should Cost and calibration (actual program history) for ICE. Most ...
Original Post Date: Wednesday, October 17, 2012 A frequent question from students and consulting clients is how to estimate software size when either: detailed functional requirements descriptions are not yet documented or, even if the latter do exist, the resources necessary (in cost and time) for detailed function point (“FP”) counting are prohibitive. If appropriate analogies or detailed use cases are not available, fast function point counting can be a non-starter, without nominal understanding of pre-design software transactions and data functions.  Hence, the challenge is to find an estimating basis for functional measure (i.e., ...
Original Post Date: Monday, September 24, 2012 The purpose of this blog is to describe the role Value Engineering plays within the affordability process. The blog is not a step by step “How To Conduct or Execute” Value Engineering (VE) but, it is a discussion of the context, input, setup, execution hints, and output of Value Engineering in support of conducting affordability analysis and management. As such, it is important to understand the concept of affordability within the Systems Engineering paradigm. This blog is designed to provide insights, lessons learned, and suggestions for using Value Engineering in the affordability process. In ...