Cost Estimation in a Capacitated Environment

In this chapter we discuss rough-cut cost estimation in a capacitated made-to-order environment. We develop models that analyze the effects of shop workload, machine loading, and outsourcing decisions on product unit cost estimation. A comparative study of five alternative rough-cut cost estimation methods is presented. An activity based cost estimation model, which takes into account stochastic process characteristics as well as setup time, machine failures and product yields, was developed. The activity based cost estimation was found to perform better than the traditional cost estimation. We found that by taking into account the capacity and stochastic nature of the parameters, the cost estimation accuracy is improved significantly.

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Insights on Cost Estimation Methods and its Uses in Software Project Design

International Journal of Advanced Information and Communication Technology ◽

10.46532/ijaict-2020033 ◽

2020 ◽

pp. 166-169

Author(s):

Aravindhan K

Keyword(s):

Project Management ◽

Cost Estimation ◽

Estimation Methods ◽

Software Project ◽

Estimation Model ◽

Software Projects ◽

Software Applications ◽

Software Companies ◽

Cost Estimation Model ◽

The Cost

Cost estimation of software projects is risky task in project management field. It is a process of predicting the cost and effort required to develop a software applications. Several cost estimation models have been proposed over the last thirty to forty years. Many software companies track and analyse the current project by measuring the planed cost and estimate the accuracy. If the estimation is not proper then it leads to the failure of the project. One of the challenging tasks in project management is how to evaluate the different cost estimation and selecting the proper model for the current project. This paper summarizes the different cost estimation model and its techniques. It also provides the proper model selection for the different types of the projects.

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Rough-Cut Cost Estimation in a Capacitated Environment

IT Outsourcing ◽

10.4018/978-1-60566-770-6.ch123 ◽

2010 ◽

pp. 1935-1953

Author(s):

Mark Eklin ◽

Yohanan Arzi ◽

Avraham Shtub

Keyword(s):

Cost Estimation ◽

Capacity Planning ◽

Deterministic Model ◽

Unit Cost ◽

Greedy Heuristic ◽

Shop Floor ◽

Machine Loading ◽

Proposed Model ◽

Traditional Costing ◽

Rough Cut

This article presents a deterministic model for rough-cut cost estimation in a capacitated madeto- order environment. We assume that a firm can execute each job either at its own shop or by outsourcing it. The model calculates the unit cost of each product while taking into account the shop floor rough-cut capacity planning, and by determining what to produce in the firm’s shop and what to outsource. In order to reduce run times, a greedy heuristic algorithm was developed. Comparison of the proposed model with a model that takes into account precedence between operations and with a traditional costing approach was conducted. The article gives insight on the affect of shop workload, machine loading, and outsourcing decisions on the product unit cost estimation.

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Estimating Cleanup Costs for Oil Spills

International Oil Spill Conference Proceedings ◽

10.7901/2169-3358-1999-1-35 ◽

1999 ◽

Vol 1999 (1) ◽

pp. 35-39 ◽

Cited By ~ 32

Author(s):

Dagmar Schmidt Etkin

Keyword(s):

Oil Spill ◽

Cost Estimation ◽

Oil Spills ◽

Unit Cost ◽

Cost Data ◽

Cost Estimating ◽

Estimation Model ◽

Cost Estimation Model ◽

Cleanup Cost ◽

Oil Type

ABSTRACT The factors that affect cleanup cost are complex and interrelated. Each spill involves a unique set of circumstances that determine cleanup cost. Estimating a universal per-unit cleanup cost is essentially meaningless without taking into consideration factors such as location and oil type, which can profoundly influence costs. This paper examines the host of factors that impact cleanup cost in an effort to more accurately assess per-unit cleanup cost. A cost-estimation model, based on an analysis of cost data in the Oil Spill Intelligence Report (OSIR) International Oil Spill Database (a 38-year record of over 8,600 oil spills worldwide) is presented as an alternative to a universal per-unit cost value.

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Cost Estimation Model Using Modified Parameters for Construction Projects

Advances in Civil Engineering ◽

10.1155/2019/8290935 ◽

2019 ◽

Vol 2019 ◽

pp. 1-10 ◽

Cited By ~ 1

Author(s):

Sae-Hyun Ji ◽

Joseph Ahn ◽

Hyun-Soo Lee ◽

Kyeongjin Han

Keyword(s):

Cost Estimation ◽

Construction Projects ◽

Cost Model ◽

Influence Factors ◽

Influential Factors ◽

Estimation Accuracy ◽

Estimation Model ◽

Proposed Model ◽

Cost Estimation Model ◽

The Cost

Construction projects require huge amounts of capital and have many risk factors due to the unique industry characteristics. For a project to be successful, accurate cost estimation during the design phase is very important. Thus, this research aims to develop a cost estimation model where a modification method integrates influential factors with significant parameters. This study identified a modified parameter-making process, which integrates many influential factors into a small number of significant parameters. The proposed model estimates the cost using quantity-based modified parameters multiplied by their price. A case study was conducted with 24-residence building project, and the estimation accuracy of the suggested method and a CBR model were compared. The proposed model achieved higher overall cost-estimation accuracy and stability. A large number of influence factors can be modified as simple representatives and overcome the limitations of a conventional cost estimation model. The paper originality relates to providing a modified parameter-making process to enhance reliability of a cost estimation. In addition, the suggested cost model can actively respond to the iterative requirements of recalculation of the cost.

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