Cost Model Development using Costmod Dave Stockton Taqui Shaik
Contents Basics of the cost model development process Basics of Costmod – project scoping and the model identification process Exercise: Developing cost models using Costmod Costmod – EPSRC Funded research project. Collaborators included: Airbus, Rolls-Royce & Cognition
Identified Existing Methods Data Identification - methods for identifying variables required to generate models Data Collection - methods by which the data required to generate models could be collected Data Analysis - methods by which the cost estimating relationships could be determined
Data Identification Methods Affinity Diagrams Brain storming Case Base Reasoning Consensus building. Data mining. Fishbone diagram. Force field diagrams Fuzzy logic Heuristics. Histogram. Normal test plot. Radar chart. Relationship diagrams Repertory grids Scatter plot. Simulation
Data Collection Methods 2-D & 3-D Flow Diagrams Activity Sampling Analytical Estimating Checklists Direct observation Film analysis sheet. Flow Process Charting Interview Methods Time Measurement Operational Experiments Outline Process Chart Production Studies Questionnaires Records, Files and Documents Time Study Video tape recording Patents
Data Collection Methods Neural networks Factorial Analysis Fuzzy logic Genetic Algorithm Least Squares Linear Programming Multiple Linear Regression Multiple Non Linear Regression Pareto Analysis (80-20 rule) Queueing Models Simultaneous Equations Stepwise Regression Analysis System Pyramid. Taguchi Methods
Data Sources
COSTMOD Cost Model Development Process Selection of data sources and data collection methods Process Scoping define processes & products that need models define the characteristics of these cost models Data Collection & Model Identification Develop the Cost Estimating Relationships
Project Scoping – 1 of 6
Project Scoping 2 of 6
Project Scoping 3 of 6 Business Objective and Decision Levels applicable to the cost model
Project Scoping 4 of 6
Project Scoping 5 of 6 Enter required Estimating Accuracy 25%
Project Scoping 6 of 6
Model identification process
Exercise: Develop a cost model Form groups of 3-4 Use the Costmod process to develop a suitable model for estimating the time required to sharpen a pencil within a medium volume production environment