TruePlanning® Cost Estimation Framework
A Solution for Better, Faster Decision-Making
Designed for Speed & Accuracy
The structure, speed and statistical rigor of the TruePlanning® cost estimation framework provides multiple advantages for efficient, accurate estimating outcomes.
- Reduce estimating cost and effort by 30%-60%, as reported by TruePlanning® users.
- Quickly produce independent estimates to compare with bids or engineering judgment.
- Simplify rapid design trade studies/analysis of alternatives.
- Provide quick analysis for early bid/no-bid decisions.
- Enhance estimating precision with discrete numerical values correlated to historical data.
- Use established methodology to avoid inaccurate calculations or overlooked factors in homegrown spreadsheets.
- Assure data-driven accuracy of industry-proven cost models.
- Promote credibility among management executives with customer-data-driven models
- Ensure complete coverage with a comprehensive model of all activities and resources for all program phases.
Regardless of project size or complexity, the TruePlanning® cost estimation framework intelligently integrates Predictive Models for TruePlanning® into a unified product breakdown structure (PBS). This integration means that a project incorporating hardware structures, software, electronic components, and assembly, as well as integration, test, systems engineering, and program management activities can be estimated as a single, comprehensive estimate.
This hierarchical, unified PBS is a structured representation of a program including intelligent relationships between linked models, so that changes to one area are reflected across all related components in the estimate. Users have access to more than 150 predictive models to generate reliable, data-driven cost estimates for greater speed and confidence in estimating and decision-making processes.
The Predictive Models for TruePlanning® are unique in that when combined with the TruePlanning framework and informed by your organizational data, they can be used to create extremely accurate templates that reflect historical cost performance. These templates are then used to estimate future projects with improved consistency, transparency and accuracy.
TruePlanning® is the solution that “makes more sense” than labor-intensive homegrown spreadsheets, that make it easy to overlook an entry or to miss an inaccurate calculation (according to research cited in a recent Wall Street Journal MarketWatch article, more than 80% of all spreadsheets have errors), or legacy parametric tools that estimate only one discipline of a program.
Structured for credibility and standardization
- Estimators define a functional breakdown of their project systems, subsystems, activities, and resources, and assign values for known parameters of their system design—including weight, design complexity, degree of new technology or new designs, etc.
- TruePlanning calculates the costs of all activities and resources (Activity-based Costing) based on relevant cost models and client-defined parameters. Users with historical data from previous projects can use that data to fine-tune the Predictive Models for TruePlanning® to reflect their way of doing business.
- Decision-makers are free to test assumptions and compare the relative impacts of changing assumptions or specifications within the original estimating parameters.
- Organizations with credible cost models can publish them into the TruePlanning framework, to be used along with the Predictive Models for TruePlanning®.
Framework Analysis & Forecasting Features
Capabilities provided by the TruePlanning® framework, which are automatically leveraged by the predictive models include but are not limited to:
- Direct Labor
- Material Burden
- General & Administrative (G&S)
- Fee or Profit
- Cost of Money
- Cost & Labor auto-spread distribution algorithms
Economic & Escalation Calculations
- Escalation Rates & Calculation
- Default Escalation Rates
- Foreign Currency Exchange
- Foreign Currency Exchange Calculation
- Exchange Rates
- Purchasing Power Parity Conversion Rates
- Frisk Calculation Execution
- Auto inputs