by John Swaren
| November 1, 2016
In our previous blog, we defined PCA and PRICE’s unique approach via TruePlanning. This blog is the second of seven to describe by specific impacts on key business processes and functional areas that benefit from this capability.
For estimators and engineers, the PRICE Cost Analytic Framework® improves cost estimating speed and accuracy, with built-in flexibility to evaluate multiple alternatives quickly. The integrated set of data, tools, and processes enables organizations to successfully estimate and analyze the effort, schedule, and cost of projects. Specific estimation applications include Independent Cost Estimation (ICE), should-costing, vendor/supplier assessments, cost-benefit trade studies, proposal baselining… and more.
PRICE® Systems develops and supports cost estimating, analysis and knowledge capture tools to help customers manage cost/schedule throughout a project’s lifecycle. These tools embedded in our Analytics Framework enable the execution of a standard, repeatable cost estimating discipline. Our approach facilitates the use of historical data and integrated cost models to build and calibrate activity-based cost estimates.
The power of this approach is that the estimate is based on the specific parameters of the system being built and the characteristics of the individual organization which is developing the product. Cost estimates are created using a product-focused Work Breakdown Structure which allows the estimator, Subject Matter Experts (SMEs) and management to cost the product as it is planned to be built.
The PRICE Cost Analytic Framework® further allows each of the different stakeholders (estimators, SMEs, and management) to view the inputs and outputs in accordance with their functional paradigm. Cost is created once and can be “slices and diced” into any custom view to support the cost estimation needs of the particular stakeholder.
Overall, the implementation of the PRICE Cost Analytic Framework® and TruePlanning immediately affords a more strategic view of life cycle cost estimation to improve the organization’s efficiency— from better planning and better priority setting, through cost estimation of the entire program life cycle. This improved cost estimating accuracy and insight according to actual experience improves customer trust, improve confidence in innovation, and ultimately improve both top-line as well as bottom-line growth.
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!