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Systems Cost Engineering: Program Affordability Management and Cost Control
Ashgate Publishing, Aug 2009, Pages: 328
Parametric cost estimating models are flexible tools which bring engineering, scientific and mathematical rigour to cost and schedule estimating, but great tools alone will not keep programs affordable. Tools must be applied as part of a credible process if estimates and analyses are to be accepted.
Complex major projects involving engineering, hardware, software, service and IT, all suffer from two basic problems: the project sponsors often struggle to specify the project effectively, and project managers find themselves wrestling with unpredicted cost or schedule overruns. Everyone wants to be successful with the tools and solutions they use, so this book is a comprehensive collection of methods with proven success. The applications described by Dale Shermon and his co-authors have evolved over 30 years of cost engineering experience during which time they have been matured by the parametric community. Each chapter explores a different application of parametrics, based on real-life case examples, providing you with a detailed guide to the rationale and value of cost engineering in a different industry or program context.
Systems Cost Engineering will help cost engineers, project and program directors, and the champions that support them, to understand and apply parametrics to ensure that their programs:
- offer a credible analysis of alternative cost options
- are never initiated with insufficient funding because of inaccurate estimates of cost or quantification of risks
- are never diverted from their objective because of a lack of credible cost management
- share and communicate knowledge of realistic and dynamic cost and productivity metrics amongst the program team
- are never derailed by surprise cost overruns or schedule delays
The information in this book will give projects sponsors and bid managers confidence in the business case that they are developing and enable them to communicate a clear and transparent picture of the risks, opportunities and benefits to stakeholders and project owners.
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