Cost Estimation Methods in Quality Management and Continuous Improvement

2021 ◽  
Vol 12 (1) ◽  
pp. 38-61
Author(s):  
Brian J. Galli
Keyword(s):  
Project Management ◽  
Continuous Improvement ◽  
Cost Estimation ◽  
Estimation Methods ◽  
Key Factors ◽  
Quality Model ◽  
Management Planning ◽  
Pdca Cycle ◽  
In The Beginning ◽  
The Cost

This paper investigated cost estimation methods and continuous improvement in terms of project management planning, as well as the factors that influenced these actions. Estimating the cost was one of the most imperative tasks to be done by the managers for a project. Key factors, such as cost, size, schedule, quality, people resources, maintenance costs, and complexity, were usually estimated in the beginning of project development. The techniques used for cost estimation included data composed from past projects that were combined with mathematical formulae to get the closest estimation. In regards to continuous improvement, the four-step quality model (PDCA cycle) was used as an ongoing effort to improve products or services. PDCA stands for plan, do, check, and act, which were the steps to successfully implement change. Notably, project management, when tasked with cost estimation and continuous improvement, was challenged to cope with evolving and situational alterations, which required a different set of skills.

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

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.

Manufacturing Feature Based Dynamic Cost Estimation for Design

2004 ◽  
Author(s):  
Harshal Patwardhan ◽  
Karthik Ramani
Keyword(s):  
Cost Estimation ◽  
Estimation Methods ◽  
Design Stage ◽  
Design Parameters ◽  
User Requirements ◽  
Geometric Information ◽  
Early Stages ◽  
Feature Based ◽  
The Cost ◽  
Manufacturing Feature

Due to the ever-increasing competition in today’s global markets, the cost of the product is rapidly emerging as one of the most crucial factors in deciding the success of the product. Decisions made during the design stage affect as much as 70–80% of the final product cost. Hence, a manufacturing cost estimation tool that can be used by the designer concurrently during the design phase will be of maximum benefit. A literature study of the available cost estimation tools suggests that a majority of these tools are meant for use in the later stages of the product development lifecycle. In the early stages of a product lifecycle, the only information that is available to the designer is related to geometry and material. Hence, the cost estimation methods that have been developed with the intent of being used in the early stages of design make use of the geometric information available at that stage of the design. Most of the earlier models that use parametric cost estimation and features technology consider the design features in their implementation. However, such models fail to consider “manufacturing based features” such as cores and undercuts. These manufacturing based features are very important in deciding the manufacturability and the cost of the part. The Engineering Cost Advisory System (ECAS) is a knowledge-based system that presents cost advice to the designer at the design stage after considering various design parameters and user requirements. Some of these design parameters can be extracted via standard Application Programming Interfaces (APIs). Moreover, ECAS uses innovative techniques of geometric reasoning and the hybrid B-rep-voxel model approach to extract manufacturing feature-based geometric information directly from the CAD input. By considering the manufacturing based features along with the design parameters, the ECAS architecture is applicable to a much wider variety of manufacturing processes. The complexity of the part, which is derived from the geometric parameters (manufacturing based and design based) and other non-geometric user requirements (e.g. quantity, material), is used to estimate the manufacturing effort involved in process specific activities. The final cost is then estimated based on this manufacturing effort and considering the hourly rates of labor and other contextual resources as well as material rates.

scholarly journals IPTEKS PERENCANAAN LABA KONTRIBUSI PADA USAHA MANUFAKTUR

2020 ◽  
Vol 4 (2) ◽  
pp. 30
Author(s):  
Novi Swandari Budiarso ◽  
Winston Pontoh
Keyword(s):  
Cost Estimation ◽  
Accounting Information ◽  
Estimation Methods ◽  
Fixed Costs ◽  
Planning And Control ◽  
Cost Behavior ◽  
The One ◽  
Implicit And Explicit ◽  
The Cost ◽  
And Control

The manufacturing firms have implicit and explicit goals and objectives. In order to achieve these goal and objective then manager needs accounting information. The accounting information created and used by management is intended primarily for planning and control decisions. One of the accounting information is cost accounting that can be used as a tool for planning the profit as the objective of the companies. Manufacturing costs are identified as variable costs or fixed costs under cost behavior analysis. Regression analysis is the one of the cost estimation methods in term to estimate the fixed costs and variable costs where the results of estimation are used to calculate the contribution margin.

A Rough-Cut Cost Estimation in a Finite-Capacity Stochastic Environment Based on Forced Idle Time Prediction

2008 ◽  
Author(s):  
Mark Eklin ◽  
Yohanan Arzi ◽  
Avraham Shtub
Keyword(s):  
Cost Estimation ◽  
Estimation Method ◽  
Idle Time ◽  
Estimation Methods ◽  
Shop Floor ◽  
Limited Capacity ◽  
Time Prediction ◽  
The Cost ◽  
Rough Cut ◽  
Cost Estimation Models

In recent years several researchers suggested cost estimation models that consider the limited capacity of the shop. In these studies, the stochastic nature of the shop floor is modeled by a time-consuming simulation. This paper proposes five alternative rough-cut cost estimation methods that can replace the simulation. Three of five methods based on forced idle time prediction. The study compares the cost estimations derived from these methods. A cost estimation method, based on the forced idle time of the bottleneck workstation, was found to be outperform the others. As the best method, the bottleneck-based method was compared to the actual order’s cost and was found as a replacement to simulation.

FEATURES OF SERVICE OF LEASING EQUIPMENT OF INDUSTRIAL ENTERPRISES

2020 ◽  
Vol 2 (5) ◽  
pp. 37-43
Author(s):  
S. M. MOLCHANOVA ◽  
◽  
A. P. DROZDOVA ◽  
Keyword(s):  
Cost Estimation ◽  
Life Cycle Cost ◽  
Estimation Methods ◽  
Industrial Enterprises ◽  
Construction Organizations ◽  
Optimal Service ◽  
Fixed Assets ◽  
System Life ◽  
High Level ◽  
The Cost

The article substantiates the need to use leasing in industrial plants using sophisticated equipment. The essence of the optimal service strategy, the structural dependence of a multi-element system, life cycle cost estimation methods and decision-making methods in the construction industry are disclosed. The necessity of developing a leasing strategy under conditions of an uncertain period of use and price fluctuations to minimize the cost of using equipment and an optimal service policy for extending the lease term was emphasized. Slow renewal of the active part of the fixed assets of construction organizations, a high level of depreciation of fixed assets and the need for their modernization using leasing tools and state support were noted.

scholarly journals An Accuracy Investigation of Product Cost Estimation in Automotive Die Manufacturing

2017 ◽  
Vol 8 (7) ◽  
pp. 1 ◽  
Author(s):  
Julia Bendul ◽  
Vasile Apostu
Keyword(s):  
Cost Estimation ◽  
Cost Reduction ◽  
Real Data ◽  
Estimation Methods ◽  
Design Phase ◽  
Cost Information ◽  
Capacity Decisions ◽  
Accuracy Level ◽  
Application Fields ◽  
The Cost

Automotive die manufacturers face the constant challenge of producing qualitative products while having to reduce costs. However, cost reduction measures are rather insignificant during the actual manufacturing process as the most important cost-impacting decisions are taken during the design phase. Cost estimation methods attempt to determine the production cost already in the design phase; the cost can be broken down and therefore the plan times of manufacturing processes can be pre-calculated, thus enabling early capacity decisions. Many researchers have been focusing for decades on developing efficient cost estimation methods. Yet their scarce access to cost information meant that most of the developed methods could not be evaluated with real data and thus their implementation in practice being challenged. This paper reviews and classifies cost estimation methods and investigates the accuracy of the estimate based onpractical application in 190 cases. The overall aim is to determine the accuracy level of the studied methods in practice and therefore identify their application fields.

scholarly journals Estimation Methods of Cost of Competitiveness Potential of a Transport Enterprise

2019 ◽  
Vol 8 (4S) ◽  
pp. 1-4
Keyword(s):  
Cost Estimation ◽  
Traditional Approach ◽  
Methodological Approach ◽  
Estimation Methods ◽  
Competitive Advantages ◽  
Cost Of Transport ◽  
Related Services ◽  
Average Value ◽  
Transportation Service ◽  
The Cost

The article deals with a methodological approach to the cost estimation of competitiveness potential of a transport enterprise. The sequence of estimation of competitiveness potential of a transport enterprise is suggested to be carried out in several stages. A competitive status of the transport enterprise is defined at the first stage by means of a construction of competitiveness matrix. The competitiveness coefficient of transportation service is defined at the second stage. Then competitiveness of all services of transport enterprise is analyzed and the average value of competitiveness of all transport and related services is obtained by means of defining the estimation. Having defined the indicators of competitiveness and the cost of transport enterprise, we estimate market cost of competitiveness potential appropriately. At the next stage of the analysis of efficiency of control of competitiveness potential it is necessary to estimate achievement of development aims and strategic plan of the transport enterprise. In order to estimate the development efficiency and competences implementation and competitive advantages in terms of the market we use traditional approach to the analysis of efficiency according to the effect and cost of the resources spent for its obtaining.

scholarly journals Analyse der Methoden zur Aufwand- und Kostenschätzung eingesetzt in IT-Projekten

2021 ◽  
Vol 14 (1) ◽  
pp. 31-49
Author(s):  
Alexandru Drăgan ◽  
Uwe Götze
Keyword(s):  
Project Management ◽  
Literature Review ◽  
Cost Estimation ◽  
Management Teams ◽  
Estimation Methods ◽  
Effort Estimation ◽  
It Projects ◽  
Research Results

This paper aims to provide a comparison of different methods for the process of effort and cost estimation used by an IT company in IT-projects. Based on a literature review on the topic of effort estimation methods, the tool for effort and cost estimation operated by project management teams is getting investigated for the purpose of further improvement. The findings obtained are derived and presented to the involved parties as well as to other stakeholders that might benefit from this research results.

scholarly journals Examination of the cost ratio of the formwork

2021 ◽  
Author(s):  
Zsolt Huszár ◽  
Eva Lubloy
Keyword(s):  
Reinforced Concrete ◽  
Cost Analysis ◽  
Cost Estimation ◽  
The Other ◽  
Estimation Methods ◽  
Cost Ratio ◽  
Reinforced Concrete Structures ◽  
Single System ◽  
Total Cost ◽  
The Cost

In case of construction investments, the cost estimation was always important. The reason for this is that after the planning, the most important issue is the cost of the investment. There are many different estimation methods. These estimates may vary in depth, depending on the task and the plan. The question is what happens if we wanted to predict not only the total cost of the investment but also the cost of some parts and structures. Such a cost element is the formwork cost of the monolithic reinforced concrete structures. This is a special processing aid, which makes it difficult to calculate accurately. The study is based on a cost analysis of the construction of 22 completed buildings over the last 10 years. Here, the cost of the formwork was compared to the total cost of the construction. By examining the 22 buildings together, we made findings over the years. We wanted to find out how much the construction price changes affected the structure and the formwork costs. The other direction of our research was the cost analysis within each building type, focusing on the formwork. In this analysis, we defined six types of buildings, such as detached, dwelling, condominium, public, office buildings, and other types of buildings. This study does not include the cost of the formwork types specific to each component, but from the foundation to the ascending structures, it analyses them in a single system.

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