ATI's Cost Estimating course

Summary: This tutorial covers the primary methods for cost estimation needed in systems development, including line item estimation, parametric estimation, level-of-effort, front- and rear-loaded estimation, and probabilistic loading. The estimation methods are placed in context of a Work Breakdown Structure and program schedules, while explaining the entire estimation process. Many system development programs have cost control difficulties, often because the cost basis was originally mis-estimated. This tutorial provides a walk-through of the common pitfalls in cost estimation, providing well-proven methods to establish workable, winning cost basis. Instructor: Eric Honour, international consultant and lecturer, has a 38-year career of complex systems development & operation. Founder and former President of INCOSE. Author of the “Value of SE” material in the INCOSE Handbook. He has led the development of 18 major systems, including the Air Combat Maneuvering Instrumentation systems and the Battle Group Passive Horizon Extension System. BSSE (Systems Engineering), US Naval Academy, MSEE, Naval Postgraduate School, and PhD candidate, University of South Australia. What You Will Learn: How to use a WBS to define scope. Five pitfalls in WBS creation and how to avoid them Cost estimation methods that work How to apply cost estimation to the types of system development effort Quantifying risk as part of the costing Six principles for effective cost estimation Course Outline: Introduction – Cost estimation in context of system life cycles. Why proper cost estimation is important. How estimation fits into the proposal cycle. The link between cost estimation and scope control. Scope Definition – Creation of a technical work scope. Definition and format of the Work Breakdown Structure (WBS) as a basis for accurate cost estimation. Five pitfalls in WBS creation and how to avoid them. Task-level work definition. Class exercise in creating a WBS. Cost Estimation Methods – Different ways to establish a cost basis, with explanation of each: line item estimation, parametric estimation, level-of-effort estimation. Benefits and detriments of each. Typical applications. Schedule estimation coupled with cost estimation. Use of loading curves (front-, rear-, and others) to establish cost loading over time. Typical overhead, administration, and profit loading. System Cost Estimation – The classes of effort that need estimation in a systems development, and the types of cost estimation methods that can apply to each. Primary design work estimation in software, electronics, and mechanical engineering. Systems engineering estimations, including design tasks, test & evaluation, and technical management. Specialty engineering estimation. Methods to obtain estimation of materials, purchasing, and production. Percentage-loaded level-of-effort tasks: project management, quality assurance, configuration management. Class exercise in estimating against the WBS. Risk Estimation – How to handle uncertainties in the cost estimation process. The link between cost estimation and risk management. Probabilistic cost estimation and effective portrayal of the results. The link among cost estimation, risk levels, and pricing. Class exercise in probabilistic estimation. Course Summary – Course summary and refresher on key points. Six principles for effective cost estimation. Tuition: Please call us at 410-956-8805 or send an email to ati@ATIcourses.com for pricing information and on site delivery of this course. Register Now Without Obligation