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The Last Cost Estimate I Performed was the BEST I Ever Did

By PRICE® Customer Success TeamJuly 13, 2021

Upcoming Webinar (June 22nd, 2021) registration link — CLICK HERE

Host: Jim Golden, Solution Consultant, Government Sector

Sometimes it is difficult to see where improvements can be made in our own processes and methods to produce a cost estimate. My mantra for continuously improving my cost estimates revolved around the idea that “the last cost estimate I performed was the best I ever did”.  I always tried to improve my estimates by standardizing my processes and slightly tweaking things. Still, something was missing in terms of a consistent, repeatable process to collect cost and technical data and produce cost estimates that could map to capabilities by program.  Fortunately, I was provided an opportunity by the U.S. Army to learn how to use the tenets of Lean Six Sigma (LSS) to improve my organization’s processes, which is geared to finding ways to avoid or save costs by using better, more efficient processes.

On applying the LSS methodology to my own cost estimating processes, I discovered that there were several gaps in my methods.  Perhaps my biggest issue was the way I gathered and analyzed data.  Improving this process would improve my estimates and help avoid large risk markups to program budgets; provide more budget for other programs; and provide more scope for programs being estimated.  LSS helped me find a consistent, repeatable process to collect cost and technical data, and produce cost estimates that could map to capabilities by program.

In this webinar, I describe the evolution of implementing this effort and characterize the significant drivers and barriers to include challenges, processes, and internal controls associated with implementation.  I also discuss activities leading to successful implementation (e.g., Tiger Teams, TruePlanning®, etc.) and elaborate on a practical approach for other organizations seeking to improve their estimating operations.  I hope you will join me!

Registration link — CLICK HERE