1. Why should I use parametric estimating?
2/24/2019
Why should I use parametric estimating?
Presented by EastWise Technology, Beijing, China
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

2. We already know what the predecessor systems cost.
The Shenzhen 5 program cost 2 billon U.S dollars to build. (Tu Yun, CRI news)
The accounting system can only report incurred costs and the cost elements of the system costs are not clear.
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

3. What are the alternatives to determining the next or new system cost?
2/24/2019
What are the alternatives to determining the next or new system cost?
Use prior system costs and extrapolate (analogy method).
Attempt to determine the detailed cost elements of a system that may not be designed (bottoms-up estimate).
Use a parametric cost estimating system to incorporate the best of both alternatives.
The PRICE System Suite of parametric estimating systems is based upon your known rates and factors and proven detailed actual industry estimating relationships.
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

4. PRICE Suite of parametric models
PRICE (H) Hardware Estimating Model
PRICE (HL) Hardware Life Cycle Estimating Model
PRICE (S) Software Development and Support Cost Model
PRICE (M) Electronic Module and Microcircuit Estimating Model
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

5. How can the PRICE (H) Hardware Estimating Model help you?
The PRICE H model is used to estimate costs, resources (labor and material) and schedules for electronic, electromechanical and structural assemblies (from small to large):
Line replaceable unit (LRU): End product: Shenzhen 5
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

6. How can the PRICE (HL) Hardware Life Cycle Estimating Model help you?
The PRICE HL model together with PRICE H produce comprehensive cost and schedule estimates from initial concept to multi-year production and deployment and support.
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

7. How can the PRICE (S) Software Estimating Model help you?
PRICE S can estimates the entire life cycle of all types of software from business systems to command and control, avionics, and space systems .
PRICE S estimates the entire software development process:
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

8. How can the PRICE (M) Electronic Module Estimating Model help you?
The PRICE M model is used to estimate costs, resources (labor and material) and schedules for development and production of custom microcircuit chips and /or electronic modules.
PRC manufactured chip: PRC manufactured (Shanghai) microcircuit: (Shijiazhuang)
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

9. How can a “foreign” based estimating system make sense in China?
The PRICE parametric models can be calibrated (adjusted) for your specific situation and probably should be calibrated for on-going programs and if high accuracy (auditable) projection are required. You may not want to calibrate if you are estimating your sub-contract bids (you want to know what the sub-contracter bids should cost, not what they did cost). If you are setting engineering targets or are doing an independent estimate, or if you want to know what your competitors likely bidding price will be, then you may not want to calibrate (adjust) the PRICE models.
In all cases you will want to use your country specific financial rates and factors and you will use you own engineering factors (unless you want to use PRICE’s).
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

10. Copyright 2004 RWF Consulting
In summary:
Using parametrics and the PRICE models can provide you with an accurate, unbiased, repeatable tool to estimate your hardware (and its logistics) with PRICE H and HL, your software with PRICE S and semiconductor chips and microelectronics modules with PRICE M. All of these models are integrated with Microsoft Excel and/or RDD-100 via PRICE Enterprise (E).
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting

11. Copyright 2004 RWF Consulting谢谢
2/24/2019 3:16:49 PM
Copyright 2004 RWF Consulting