Cost modeling and analysis
*background - the 70’s estimating system
*primary system-bottom-up - grass roots
*slow-time consuming-nonflexible in a highly competitive environment
*cost evaluation difficult-how high is high? How low is low?
*no cost model as yardstick for comparison
*bottom-up estimate difficult to support without extensive costing data bases
Cost’ modeling and analysis organization
Primary effort
*develop extensive technical/cost/schedule coordinated database
* established analogy methods for “should cost” activity to support our “grass roots” methods for detailed costing
*recognized parametric analysis for cost estimation as a sizing tool for advanced studies and acquisition proposal activity
*methods to be reconciled-bottom-up - top-down throughout management review process