{"product_id":"cost-estimation-methods-and-tools","title":"Cost Estimation: Methods and Tools","description":"\u003cdiv id=\"bookDescription_feature_div\" class=\"celwidget\" data-feature-name=\"bookDescription\" data-csa-c-type=\"widget\" data-csa-c-content-id=\"bookDescription\" data-csa-c-slot-id=\"bookDescription_feature_div\" data-csa-c-asin=\"1894020928\" data-csa-c-is-in-initial-active-row=\"false\" data-csa-c-id=\"dpt3t1-2t2uxg-b649pi-d9hvdo\" data-cel-widget=\"bookDescription_feature_div\"\u003e\n\u003cdiv data-a-expander-name=\"book_description_expander\" data-a-expander-collapsed-height=\"140\" class=\"a-expander-collapsed-height a-row a-expander-container a-spacing-base a-expander-partial-collapse-container\"\u003e\n\u003cdiv aria-expanded=\"false\" class=\"a-expander-content a-expander-partial-collapse-content\"\u003e\n\u003cdiv id=\"bookDescriptionBox\" itemprop=\"reviewBody\"\u003e\n\u003cdiv id=\"bookDescriptionBox\" itemprop=\"reviewBody\"\u003e\n\u003cdiv data-cel-widget=\"bookDescription_feature_div\" data-csa-c-id=\"5zklon-bw1u6k-z3892-tavvr7\" data-csa-c-is-in-initial-active-row=\"false\" data-csa-c-asin=\"3764370327\" data-csa-c-slot-id=\"bookDescription_feature_div\" data-csa-c-content-id=\"bookDescription\" data-csa-c-type=\"widget\" data-feature-name=\"bookDescription\" class=\"celwidget\" id=\"bookDescription_feature_div\"\u003e\n\u003cdiv class=\"a-expander-collapsed-height a-row a-expander-container a-spacing-base a-expander-partial-collapse-container\" data-a-expander-collapsed-height=\"140\" data-a-expander-name=\"book_description_expander\"\u003e\n\u003cdiv class=\"a-expander-content a-expander-partial-collapse-content\" aria-expanded=\"false\"\u003e\n\u003cdiv data-cel-widget=\"bookDescription_feature_div\" data-csa-c-id=\"sg190u-1rtisr-p8f0cr-6wwolk\" data-csa-c-is-in-initial-active-row=\"false\" data-csa-c-asin=\"007041999X\" data-csa-c-slot-id=\"bookDescription_feature_div\" data-csa-c-content-id=\"bookDescription\" data-csa-c-type=\"widget\" data-feature-name=\"bookDescription\" class=\"celwidget\" id=\"bookDescription_feature_div\"\u003e\n\u003cdiv class=\"a-expander-collapsed-height a-row a-expander-container a-spacing-base a-expander-partial-collapse-container\" data-a-expander-collapsed-height=\"140\" data-a-expander-name=\"book_description_expander\"\u003e\n\u003cdiv class=\"a-expander-content a-expander-partial-collapse-content\" aria-expanded=\"false\"\u003e\n\u003cdiv id=\"bookDescriptionBox\" itemprop=\"reviewBody\"\u003e\n\u003cdiv aria-expanded=\"true\" class=\"a-expander-content a-expander-partial-collapse-content a-expander-content-expanded\"\u003e\n\u003csection class=\"page-section product-long-description\" id=\"description-section\"\u003e\n\u003cdiv class=\"description\"\u003e\n\u003cp\u003e\u003cb\u003ePresents an accessible approach to the cost estimation tools, concepts, and techniques needed to support analytical and cost decisions\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003eWritten with an easy-to-understand approach,\u003ci\u003e\u003cspan\u003e \u003c\/span\u003eCost Estimation: Methods and Tools\u003c\/i\u003e\u003cspan\u003e \u003c\/span\u003eprovides comprehensive coverage of the quantitative techniques needed by professional cost estimators and for those wanting to learn about this vibrant career field. Featuring the underlying mathematical and analytical principles of cost estimation, the book focuses on the tools and methods used to predict the research and development, production, and operating and support costs for successful cost estimation in industrial, business, and manufacturing processes.\u003c\/p\u003e\n\u003cp\u003eThe book begins with a detailed historical perspective and key terms of the cost estimating field in order to develop the necessary background prior to implementing the presented quantitative methods. The book proceeds to fundamental cost estimation methods utilized in the field of cost estimation, including working with inflation indices, regression analysis, learning curves, analogies, cost factors, and wrap rates. With a step-by-step introduction to the practicality of cost estimation and the available resources for obtaining relevant data,\u003cspan\u003e \u003c\/span\u003e\u003ci\u003eCost Estimation: Methods and Tools\u003c\/i\u003e\u003cspan\u003e \u003c\/span\u003ealso features:\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eVarious cost estimating tools, concepts, and techniques needed to support business decisions\u003c\/li\u003e\n\u003cli\u003eMultiple questions at the end of each chapter to help readers obtain a deeper understanding of the discussed methods and techniques\u003c\/li\u003e\n\u003cli\u003eAn overview of the software used in cost estimation, as well as an introduction to the application of risk and uncertainty analysis\u003c\/li\u003e\n\u003cli\u003eA Foreword from Dr. Douglas A. Brook, a professor in the Graduate School of Business and Public Policy at the Naval Postgraduate School, who spent many years working in the Department of Defense acquisition environment\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003e\u003ci\u003eCost Estimation: Methods and Tools\u003c\/i\u003e\u003cspan\u003e \u003c\/span\u003eis an excellent reference for academics and practitioners in decision science, operations research, operations management, business, and systems and industrial engineering, as well as a useful guide in support of professional cost estimation training and certification courses for practitioners. The book is also appropriate for graduate-level courses in operations research, operations management, engineering economics, and manufacturing and\/or production processes.\u003c\/p\u003e\n\u003cp\u003e \u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/section\u003e\n\u003csection class=\"page-section section-author-wr\" id=\"author-section\"\u003e\n\u003cdiv class=\"page-section-content section-author\"\u003e\n\u003ch2 class=\"section-title collapsed\" data-target=\"#author-section-item\" data-toggle=\"collapse\"\u003eABOUT THE AUTHOR\u003c\/h2\u003e\n\u003cdiv class=\"collapse\" id=\"author-section-item\"\u003e\n\u003cb\u003e\u003ci\u003eGregory K. Mislick\u003c\/i\u003e\u003c\/b\u003e\u003cspan\u003e \u003c\/span\u003eis Senior Lecturer in the Department of Operations Research and Program Manager for the Masters Degree Program in Cost Estimating and Analysis at the Naval Postgraduate School (NPS). A retired U.S. Marine Corps Lieutenant Colonel aviator and past associate dean of the Graduate School of Operational and Information Sciences at NPS, his research interests includes life cycle cost estimating and modeling, probability and statistics, regression analysis, learning curves, and optimization.\u003cbr\u003e\u003cbr\u003e\u003cb\u003e\u003ci\u003eDaniel A. Nussbaum, PhD,\u003c\/i\u003e\u003c\/b\u003e\u003cspan\u003e \u003c\/span\u003eis Visiting Professor in the Department of Operations Research at the Naval Postgraduate School in Monterey, California. With over 30 years of professional experience providing financial estimating and analysis services to senior levels of the U.S. Federal government, Dr. Nussbaum's research interests includes cost\/benefit analyses, life cycle cost estimating and modeling, and financial modeling.\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"section-permissions\" id=\"permission-section\"\u003e\n\u003ch2 class=\"section-title collapsed\" data-target=\"#permission-section-item\" data-toggle=\"collapse\"\u003e\u003c\/h2\u003e\n\u003cdiv class=\"collapse\" id=\"permission-section-item\"\u003e\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/section\u003e\n\u003csection class=\"page-section\" id=\"content-section\"\u003e\n\u003cdiv class=\"page-section-content\"\u003e\n\u003ch2 class=\"section-title collapsed\" data-target=\"#content-section-item\" data-toggle=\"collapse\"\u003eTABLE OF CONTENTS\u003c\/h2\u003e\n\u003cdiv class=\"collapse\" id=\"content-section-item\"\u003e\n\u003cp\u003eForeword xiii\u003c\/p\u003e\n\u003cp\u003eAbout the Authors xvii\u003c\/p\u003e\n\u003cp\u003ePreface xix\u003c\/p\u003e\n\u003cp\u003eAcronyms xxiii\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e1 “Looking Back: Reflections on Cost Estimating” 1\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003eReference 10\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e2 Introduction to Cost Estimating 11\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e2.1 Introduction 11\u003c\/p\u003e\n\u003cp\u003e2.2 What is Cost Estimating? 11\u003c\/p\u003e\n\u003cp\u003e2.3 What Are the Characteristics of a Good Cost Estimate? 13\u003c\/p\u003e\n\u003cp\u003e2.4 Importance of Cost Estimating in DoD and in Congress. Why Do We Do Cost Estimating? 14\u003c\/p\u003e\n\u003cp\u003e2.4.1 Importance of Cost Estimating to Congress 16\u003c\/p\u003e\n\u003cp\u003e2.5 An Overview of the DoD Acquisition Process 17\u003c\/p\u003e\n\u003cp\u003e2.6 Acquisition Categories (ACATs) 23\u003c\/p\u003e\n\u003cp\u003e2.7 Cost Estimating Terminology 24\u003c\/p\u003e\n\u003cp\u003eSummary 30\u003c\/p\u003e\n\u003cp\u003eReferences 31\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 31\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e3 Non-DoD Acquisition and the Cost Estimating Process 32\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e3.1 Introduction 32\u003c\/p\u003e\n\u003cp\u003e3.2 Who Practices Cost Estimation? 32\u003c\/p\u003e\n\u003cp\u003e3.3 The Government Accountability Office (GAO) and the 12-Step Process 33\u003c\/p\u003e\n\u003cp\u003e3.4 Cost Estimating in Other Non-DoD Agencies and Organizations 38\u003c\/p\u003e\n\u003cp\u003e3.4.1 The Intelligence Community (IC) 38\u003c\/p\u003e\n\u003cp\u003e3.4.2 National Aeronautics and Space Administration (NASA) 38\u003c\/p\u003e\n\u003cp\u003e3.4.3 The Federal Aviation Administration (FAA) 39\u003c\/p\u003e\n\u003cp\u003e3.4.4 Commercial Firms 39\u003c\/p\u003e\n\u003cp\u003e3.4.5 Cost Estimating Book of Knowledge (CEBOK) 40\u003c\/p\u003e\n\u003cp\u003e3.4.6 Federally Funded Research and Development Centers (FFRDCs) 41\u003c\/p\u003e\n\u003cp\u003e3.4.7 The Institute for Defense Analysis (IDA) 41\u003c\/p\u003e\n\u003cp\u003e3.4.8 The Mitre Corporation 42\u003c\/p\u003e\n\u003cp\u003e3.4.9 Rand Corporation 42\u003c\/p\u003e\n\u003cp\u003e3.5 The Cost Estimating Process 43\u003c\/p\u003e\n\u003cp\u003e3.6 Definition and Planning. Knowing the Purpose of the Estimate 43\u003c\/p\u003e\n\u003cp\u003e3.6.1 Definition and Planning. Defining the System 47\u003c\/p\u003e\n\u003cp\u003e3.6.2 Definition and Planning. Establishing the Ground Rules and Assumptions 48\u003c\/p\u003e\n\u003cp\u003e3.6.3 Definition and Planning. Selecting the Estimating Approach 49\u003c\/p\u003e\n\u003cp\u003e3.6.4 Definition and Planning. Putting the Team Together 51\u003c\/p\u003e\n\u003cp\u003e3.7 Data Collection 52\u003c\/p\u003e\n\u003cp\u003e3.8 Formulation of the Estimate 52\u003c\/p\u003e\n\u003cp\u003e3.9 Review and Documentation 53\u003c\/p\u003e\n\u003cp\u003e3.10 Work Breakdown Structure (WBS) 53\u003c\/p\u003e\n\u003cp\u003e3.10.1 Program Work Breakdown Structure 53\u003c\/p\u003e\n\u003cp\u003e3.10.2 Military-Standard (MIL-STD) 881C 56\u003c\/p\u003e\n\u003cp\u003e3.11 Cost Element Structure (CES) 56\u003c\/p\u003e\n\u003cp\u003eSummary 58\u003c\/p\u003e\n\u003cp\u003eReferences 59\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 59\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e4 Data Sources 61\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e4.1 Introduction 61\u003c\/p\u003e\n\u003cp\u003e4.2 Background and Considerations to Data Collection 61\u003c\/p\u003e\n\u003cp\u003e4.2.1 Cost Data 63\u003c\/p\u003e\n\u003cp\u003e4.2.2 Technical Data 63\u003c\/p\u003e\n\u003cp\u003e4.2.3 Programmatic Data 64\u003c\/p\u003e\n\u003cp\u003e4.2.4 Risk Data 64\u003c\/p\u003e\n\u003cp\u003e4.3 Cost Reports and Earned Value Management (EVM) 65\u003c\/p\u003e\n\u003cp\u003e4.3.1 Contractor Cost Data Reporting (CCDR) 65\u003c\/p\u003e\n\u003cp\u003e4.3.2 Contract Performance Report (CPR) 66\u003c\/p\u003e\n\u003cp\u003e4.3.3 EVM Example 70\u003c\/p\u003e\n\u003cp\u003e4.4 Cost Databases 74\u003c\/p\u003e\n\u003cp\u003e4.4.1 Defense Cost and Resource Center (DCARC) 75\u003c\/p\u003e\n\u003cp\u003e4.4.2 Operating and Support Costs Databases 75\u003c\/p\u003e\n\u003cp\u003e4.4.3 Defense Acquisition Management Information Retrieval (DAMIR) 76\u003c\/p\u003e\n\u003cp\u003eSummary 76\u003c\/p\u003e\n\u003cp\u003eReference 77\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 77\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e5 Data Normalization 78\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e5.1 Introduction 78\u003c\/p\u003e\n\u003cp\u003e5.2 Background to Data Normalization 78\u003c\/p\u003e\n\u003cp\u003e5.3 Normalizing for Content 80\u003c\/p\u003e\n\u003cp\u003e5.4 Normalizing for Quantity 81\u003c\/p\u003e\n\u003cp\u003e5.5 Normalizing for Inflation 83\u003c\/p\u003e\n\u003cp\u003e5.6 DoD Appropriations and Background 87\u003c\/p\u003e\n\u003cp\u003e5.7 Constant Year Dollars (CY$) 88\u003c\/p\u003e\n\u003cp\u003e5.8 Base Year Dollars (BY$) 90\u003c\/p\u003e\n\u003cp\u003e5.9 DoD Inflation Indices 91\u003c\/p\u003e\n\u003cp\u003e5.10 Then Year Dollars (TY$) 95\u003c\/p\u003e\n\u003cp\u003e5.11 Using the Joint Inflation Calculator (JIC) 97\u003c\/p\u003e\n\u003cp\u003e5.12 Expenditure (Outlay) Profile 99\u003c\/p\u003e\n\u003cp\u003eSummary 103\u003c\/p\u003e\n\u003cp\u003eReferences 103\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 103\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e6 Statistics for Cost Estimators 105\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e6.1 Introduction 105\u003c\/p\u003e\n\u003cp\u003e6.2 Background to Statistics 105\u003c\/p\u003e\n\u003cp\u003e6.3 Margin of Error 106\u003c\/p\u003e\n\u003cp\u003e6.4 Taking a Sample 109\u003c\/p\u003e\n\u003cp\u003e6.5 Measures of Central Tendency 110\u003c\/p\u003e\n\u003cp\u003e6.6 Dispersion Statistics 113\u003c\/p\u003e\n\u003cp\u003e6.7 Coefficient of Variation 117\u003c\/p\u003e\n\u003cp\u003eSummary 119\u003c\/p\u003e\n\u003cp\u003eReferences 119\u003c\/p\u003e\n\u003cp\u003eGeneral Reference 119\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 119\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e7 Linear Regression Analysis 121\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e7.1 Introduction 121\u003c\/p\u003e\n\u003cp\u003e7.2 Home Buying Example 121\u003c\/p\u003e\n\u003cp\u003e7.3 Regression Background and Nomenclature 126\u003c\/p\u003e\n\u003cp\u003e7.4 Evaluating a Regression 132\u003c\/p\u003e\n\u003cp\u003e7.5 Standard Error (SE) 133\u003c\/p\u003e\n\u003cp\u003e7.6 Coefficient of Variation (CV) 134\u003c\/p\u003e\n\u003cp\u003e7.7 Analysis of Variance (ANOVA) 135\u003c\/p\u003e\n\u003cp\u003e7.8 Coefficient of Determination (R2) 137\u003c\/p\u003e\n\u003cp\u003e7.9 F-Statistic and t-Statistics 138\u003c\/p\u003e\n\u003cp\u003e7.10 Regression Hierarchy 140\u003c\/p\u003e\n\u003cp\u003e7.11 Staying Within the Range of Your Data 142\u003c\/p\u003e\n\u003cp\u003e7.12 Treatment of Outliers 143\u003c\/p\u003e\n\u003cp\u003e7.12.1 Handling Outliers with Respect to X (The Independent Variable Data) 143\u003c\/p\u003e\n\u003cp\u003e7.12.2 Handling Outliers with Respect to Y (The Dependent Variable Data) 144\u003c\/p\u003e\n\u003cp\u003e7.13 Residual Analysis 146\u003c\/p\u003e\n\u003cp\u003e7.14 Assumptions of Ordinary Least Squares (OLS) Regression 149\u003c\/p\u003e\n\u003cp\u003eSummary 149\u003c\/p\u003e\n\u003cp\u003eReference 150\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 150\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e8 Multi-Variable Linear Regression Analysis 152\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e8.1 Introduction 152\u003c\/p\u003e\n\u003cp\u003e8.2 Background of Multi-Variable Linear Regression 152\u003c\/p\u003e\n\u003cp\u003e8.3 Home Prices 154\u003c\/p\u003e\n\u003cp\u003e8.4 Multi-Collinearity (MC) 158\u003c\/p\u003e\n\u003cp\u003e8.5 Detecting Multi-Collinearity (MC) Method #1: Widely Varying Regression Slope Coefficients 159\u003c\/p\u003e\n\u003cp\u003e8.6 Detecting Multi-Collinearity Method #2: Correlation Matrix 160\u003c\/p\u003e\n\u003cp\u003e8.7 Multi-Collinearity Example #1: Home Prices 161\u003c\/p\u003e\n\u003cp\u003e8.8 Determining Statistical Relationships between Independent Variables 163\u003c\/p\u003e\n\u003cp\u003e8.9 Multi-Collinearity Example #2: Weapon Systems 164\u003c\/p\u003e\n\u003cp\u003e8.10 Conclusions of Multi-Collinearity 167\u003c\/p\u003e\n\u003cp\u003e8.11 Multi-Variable Regression Guidelines 168\u003c\/p\u003e\n\u003cp\u003eSummary 169\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 170\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e9 Intrinsically Linear Regression 172\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e9.1 Introduction 172\u003c\/p\u003e\n\u003cp\u003e9.2 Background of Intrinsically Linear Regression 172\u003c\/p\u003e\n\u003cp\u003e9.3 The Multiplicative Model 173\u003c\/p\u003e\n\u003cp\u003e9.4 Data Transformation 174\u003c\/p\u003e\n\u003cp\u003e9.5 Interpreting the Regression Results 178\u003c\/p\u003e\n\u003cp\u003eSummary 178\u003c\/p\u003e\n\u003cp\u003eReference 179\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 179\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e10 Learning Curves: Unit Theory 180\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e10.1 Introduction 180\u003c\/p\u003e\n\u003cp\u003e10.2 Learning Curve Scenario #1 180\u003c\/p\u003e\n\u003cp\u003e10.3 Cumulative AverageTheory Overview 182\u003c\/p\u003e\n\u003cp\u003e10.4 UnitTheory Overview 182\u003c\/p\u003e\n\u003cp\u003e10.5 UnitTheory 185\u003c\/p\u003e\n\u003cp\u003e10.6 Estimating Lot Costs 188\u003c\/p\u003e\n\u003cp\u003e10.7 Fitting a Curve Using Lot Data 191\u003c\/p\u003e\n\u003cp\u003e10.7.1 Lot Midpoint 192\u003c\/p\u003e\n\u003cp\u003e10.7.2 Average Unit Cost (AUC) 194\u003c\/p\u003e\n\u003cp\u003e10.8 UnitTheory Final Example (Example 10.5) 197\u003c\/p\u003e\n\u003cp\u003e10.9 Alternative LMP and Lot Cost Calculations 200\u003c\/p\u003e\n\u003cp\u003eSummary 202\u003c\/p\u003e\n\u003cp\u003eReferences 202\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 202\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e11 Learning Curves: Cumulative Average Theory 204\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e11.1 Introduction 204\u003c\/p\u003e\n\u003cp\u003e11.2 Background of Cumulative AverageTheory (CAT) 204\u003c\/p\u003e\n\u003cp\u003e11.3 Cumulative AverageTheory 206\u003c\/p\u003e\n\u003cp\u003e11.4 Estimating Lot Costs 210\u003c\/p\u003e\n\u003cp\u003e11.5 Cumulative AverageTheory Final Example 210\u003c\/p\u003e\n\u003cp\u003e11.6 UnitTheory vs. Cumulative AverageTheory 214\u003c\/p\u003e\n\u003cp\u003e11.6.1 Learning Curve Selection 215\u003c\/p\u003e\n\u003cp\u003eSummary 216\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 216\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e12 Learning Curves: Production Breaks\/Lost Learning 218\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e12.1 Introduction 218\u003c\/p\u003e\n\u003cp\u003e12.2 The Lost Learning Process 219\u003c\/p\u003e\n\u003cp\u003e12.3 Production Break Scenario 219\u003c\/p\u003e\n\u003cp\u003e12.4 The Anderlohr Method 220\u003c\/p\u003e\n\u003cp\u003e12.5 Production Breaks Example 221\u003c\/p\u003e\n\u003cp\u003e12.6 The Retrograde Method Example 12.1 (Part 2) 224\u003c\/p\u003e\n\u003cp\u003eSummary 229\u003c\/p\u003e\n\u003cp\u003eReferences 229\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 230\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e13 Wrap Rates and Step-Down Functions 231\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e13.1 Introduction 231\u003c\/p\u003e\n\u003cp\u003e13.2 Wrap Rate Overview 231\u003c\/p\u003e\n\u003cp\u003e13.3 Wrap Rate Components 232\u003c\/p\u003e\n\u003cp\u003e13.3.1 Direct Labor Rate 233\u003c\/p\u003e\n\u003cp\u003e13.3.2 Overhead Rate 233\u003c\/p\u003e\n\u003cp\u003e13.3.3 Other Costs 234\u003c\/p\u003e\n\u003cp\u003e13.4 Wrap Rate Final Example (Example 13.2) 235\u003c\/p\u003e\n\u003cp\u003e13.5 Summary of Wrap Rates 236\u003c\/p\u003e\n\u003cp\u003e13.6 Introduction to Step-Down Functions 236\u003c\/p\u003e\n\u003cp\u003e13.7 Step-Down Function Theory 237\u003c\/p\u003e\n\u003cp\u003e13.8 Step-Down Function Example 13.1 238\u003c\/p\u003e\n\u003cp\u003e13.9 Summary of Step-Down Functions 240\u003c\/p\u003e\n\u003cp\u003eReference 240\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 240\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e14 Cost Factors and the Analogy Technique 242\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e14.1 Introduction 242\u003c\/p\u003e\n\u003cp\u003e14.2 Cost Factors Scenario 242\u003c\/p\u003e\n\u003cp\u003e14.3 Cost Factors 243\u003c\/p\u003e\n\u003cp\u003e14.4 Which Factor to Use? 246\u003c\/p\u003e\n\u003cp\u003e14.5 Cost Factors Handbooks 246\u003c\/p\u003e\n\u003cp\u003e14.6 Unified Facilities Criteria (UFC) 247\u003c\/p\u003e\n\u003cp\u003e14.7 Summary of Cost Factors 248\u003c\/p\u003e\n\u003cp\u003e14.8 Introduction to the Analogy Technique 248\u003c\/p\u003e\n\u003cp\u003e14.9 Background of Analogy 249\u003c\/p\u003e\n\u003cp\u003e14.10 Methodology 250\u003c\/p\u003e\n\u003cp\u003e14.11 Example 14.1 Part 1: The Historical WBS 250\u003c\/p\u003e\n\u003cp\u003e14.12 Example 14.1 Part 2: The New WBS 253\u003c\/p\u003e\n\u003cp\u003e14.13 Summary of the Analogy Technique 255\u003c\/p\u003e\n\u003cp\u003eReference 256\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 256\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e15 Software Cost Estimation 257\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e15.1 Introduction 257\u003c\/p\u003e\n\u003cp\u003e15.2 Background on Software Cost Estimation 257\u003c\/p\u003e\n\u003cp\u003e15.3 What is Software? 258\u003c\/p\u003e\n\u003cp\u003e15.4 The WBS Elements in a typical Software Cost Estimating Task 259\u003c\/p\u003e\n\u003cp\u003e15.5 Software Costing Characteristics and Concerns 260\u003c\/p\u003e\n\u003cp\u003e15.6 Measuring Software Size: Source Lines of Code (SLOC) and Function Points (FP) 261\u003c\/p\u003e\n\u003cp\u003e15.6.1 Source Lines of Code: (SLOC) 261\u003c\/p\u003e\n\u003cp\u003e15.6.2 Function Point (FP) Analysis 263\u003c\/p\u003e\n\u003cp\u003e15.7 The Software Cost Estimating Process 264\u003c\/p\u003e\n\u003cp\u003e15.8 Problems with Software Cost Estimating: Cost Growth 265\u003c\/p\u003e\n\u003cp\u003e15.9 Commercial Software Availability 267\u003c\/p\u003e\n\u003cp\u003e15.9.1 COTS in the Software Environment 268\u003c\/p\u003e\n\u003cp\u003e15.10 Post Development Software Maintenance Costs 268\u003c\/p\u003e\n\u003cp\u003eSummary 269\u003c\/p\u003e\n\u003cp\u003eReferences 269\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e16 Cost Benefit Analysis and Risk and Uncertainty 270\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003e16.1 Introduction 270\u003c\/p\u003e\n\u003cp\u003e16.2 Cost Benefit Analysis (CBA) and Net Present Value (NPV) Overview 270\u003c\/p\u003e\n\u003cp\u003e16.3 Time Value of Money 273\u003c\/p\u003e\n\u003cp\u003e16.4 Example 16.1. Net Present Value 277\u003c\/p\u003e\n\u003cp\u003e16.5 Risk and Uncertainty Overview 281\u003c\/p\u003e\n\u003cp\u003e16.6 Considerations for Handling Risk and Uncertainty 283\u003c\/p\u003e\n\u003cp\u003e16.7 How do the Uncertainties Affect our Estimate? 284\u003c\/p\u003e\n\u003cp\u003e16.8 Cumulative Cost and Monte Carlo Simulation 287\u003c\/p\u003e\n\u003cp\u003e16.9 Suggested Resources on Risk and Uncertainty Analysis 289\u003c\/p\u003e\n\u003cp\u003eSummary 290\u003c\/p\u003e\n\u003cp\u003eReferences 290\u003c\/p\u003e\n\u003cp\u003eApplications and Questions 290\u003c\/p\u003e\n\u003cp\u003e\u003cb\u003e17 Epilogue: The Field of Cost Estimating and Analysis 291\u003c\/b\u003e\u003c\/p\u003e\n\u003cp\u003eAnswers to Questions 295\u003c\/p\u003e\n\u003cp\u003eIndex 309\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/section\u003e\n\u003csection class=\"page-section\" id=\"reviews-section\"\u003e\n\u003cdiv class=\"page-section-content\"\u003e\n\u003ch2 class=\"section-title collapsed\" data-target=\"#reviews-section-item\" data-toggle=\"collapse\"\u003eREVIEWS\u003c\/h2\u003e\n\u003cdiv class=\"collapse\" id=\"reviews-section-item\"\u003e\"This book is a manual of how to effectively internally manage a company, and maximise operational external efficiency of a contractor. On this basis it is essential reading for anyone in a decision-taking role, even if only a relatively minor role in bringing productions to market.\" (Chromatographia 2016)\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/section\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv id=\"gtx-trans\" style=\"position: absolute; left: -4px; top: 1055.52px;\"\u003e\n\u003cdiv class=\"gtx-trans-icon\"\u003e\u003c\/div\u003e\n\u003c\/div\u003e","brand":"ebooklok","offers":[{"title":"PDF","offer_id":56753777770827,"sku":null,"price":29.99,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1031\/1204\/8971\/files\/NatureTravelYoutubeVideoIntro_1000x1000px_42.png?v=1773058852","url":"https:\/\/bookread.io\/products\/cost-estimation-methods-and-tools","provider":"bookread","version":"1.0","type":"link"}