1784. Use of a Detail Cost Model to Perform Conceptual Phase Cost Analysis


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P Schwartz: 1784. Use of a Detail Cost Model to Perform Conceptual Phase Cost Analysis. 1987.



The PRICE H model was originally developed as a ”black box” level cost analysis tool. Due to the nature of the model, with the proper calibrations, it can be used at higher levels of the Work Breakdown Structure (WBS). The Design-To-Cost philosophy establishes the need to perform meaningful cost verses system parameter evaluations early in a programs life cycle (i.e., the conceptual phase). Using multiple models, at this point in the design cycle, allows the confidence level of our results to be established. In search of addition up-front models, a methodology was developed to determine subsystem level manufacturing complexity values to enable the use of PRICE H during this conceptual phase. The method also allow new technologies to be factored into an historic database model by effecting subsystem complexity factors. In developing the methodology, interesting insights evolved as to the estimating sensitivity of PRICE H in the RDT&E phase.


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