Guidelines for Cost Estimation by Analogy
ARMY ELECTRONICS COMMAND FORT MONMOUTH NJ
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The increasing ability to tailor the designs of electronic circuitry to uniqure requirements and the rapid technological advances in electronics tends to limit the derivation of mathematical cost estimating relationships CER. Estimates made for electronic item costs therefore have relied heavily on engineering judgement and analogy estimating. The report covers, in an exploratory sense, the weaknesses of many estimates by analogy and the considerations that may be entertained to approve the estimating procedure. It is the intent of the report to provide a critique of a poor estimate, identify the basic problem areas, and provide suggested procedures to minimize the weaknesses of analogy estimating. Detailed step-by-step procedures are introduced and use of some basic statistical measures are presented. The report concludes with a checklist of questions the estimator should ask himself to determine the adequacy of his estimating endeavor.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies