Affordability Management Symposium
December 7, 2006 (8:00am-1:00pm) Complimentary Breakfast and Lunch
Hilton Montreal Airport Hotel, Dorval, Canada
Cost
Overruns and Performance Shortfalls
In the public sector and the private sector as well, there
is a great well competition for resources.
There are also significant rewards to managers that succeed in getting
their projects approved. Therefore,
some authors have noted the strong disincentives for project champions to
accurately predict costs and performance for evaluation by decision-makers.
In particular, the evidence shows that costs have been consistently
underestimated and performance consistently overestimated.
One author asks the question: does a project manager have to be
‘delusional’ to get his or her project approved?
This paper will trace some historical case studies from the private
sector, the private-public sector and the public sector.
In the public sector in
The
Evolution of Program Affordability Management
For nearly 30 years, PRICE Systems has enabled government agencies, defense programs, and commercial organizations to increase visibility; minimize risk and cost; accelerate project development and improve the effectiveness of project control and delivery. Mr. DeMarco will address PRICE Systems’ rich legacy, latest technology developments, and explore the roadmap for the future.
Performance
Cost Modeling - Bridging the Gap Between Engineering and Finance
Jim Otte , Director of Integrated Affordability Solutions PRICE Systems
LLC.
The biggest challenge facing Aerospace and Defense organizations is baseline estimating. During the early concept-exploration phase, cost analysts must predict the cost of advanced systems to be built with immature or non-existent technology lacking technical definition and relevant analogous data. Many times there is a disconnect between cost/performance requirements and the financial limitations on these programs. This paper will present an overview of how Aerospace and Defense organizations utilize parametric models to validate cost estimates and perform cost trade studies. Utilizing cost models, organizations streamline communications between cost engineering and finance for project control and excellence.
Total
Ownership Cost and Performance Based Modeling
Grant Soremekun ,
DoD initiatives such as Cost As An Independent Variable (CAIV)
and Total Ownership Cost (TOC) continue to drive the need towards early and
persistent use of cost, schedule and performance trade-offs. Integration between
parametric cost models and performance models allow full exploration and
optimization of the trade space, treating cost as another design parameter. Thus,
there exists the need to estimate and optimize System-of-Systems (SoS) costs in
a model capable of combining hardware and software cost objects.
This presentation will discuss the need for
Systems-Of-Systems cost estimating and demonstrate how a conceptual engineering
cost/performance model originally implemented in EXCEL can be extended by
TruePlanning to estimate both Systems and Systems-of-Systems cost. Then,
we will further expand the analysis in Model Center 7.0 to develop the CAIV
trade space and optimize the best value design.
Overcoming
the Challenges of Estimating Software Intensive Systems
Arlene
Minkiewicz, Chief Scientist PRICE Systems L.L.C.
Exponential improvements in
software development environments and increased vulnerability to security couple
with an ever widening circle of applicable uses for software in large scale
systems. Add to this the growing trend toward non-traditional methods of
delivering software solutions such as outsourcing software development,
integrating commercial off-the-shelf (COTS) solutions, and incorporating open
source solutions and you wind up with software estimating challenges that
transcend the current state of the art of estimating.
