W9_EY_Estimating Process Benchmark


  1. Problem Definition

Follow up the suggestion in W5 blog posted by Author with regard to benchmark the estimating process to US Government Accountability Office (GAO) with the current Author Estimating process application. Author will do the best practise check list and will review if there is any strong or weakness point compare to current process and find the propose improvement for a better future process and credible cost estimate.

 

  1. Development of Feasible Alternatives.

In this case, Author will do the check list compare to GAO Estimating process and find out what is the strong or weakness on each process

  1. Development of the Outcomes for Alternative

In GAO Cost Estimating and Assessment Guide provides 12 step of estimating process as shown on following figure:

EY9 Fig1

Figure 1. GAO Cost Estimating Process1

These 12 steps shown on above figure could be categorized into 4 main process. These main process are:

  • Initiation and Research
  • Assessment
  • Analysis
  • Presentation
  1. Selection of the Acceptable Criteria.

 

In this checklist Author will check what are the missing step of estimating process if compare to GAO approach. Also raise the concern to management for improvement and develop guidance and procedure for implementation.

 

  1. Analysis and Comparison of the Alternatives.

Based on check list assessment, below are the summary:

EY9 Tab1

Table. 1. Checklist Comparison Result

Based on above checklist, the missing step is on conduct sensitivity analysis and some concern on data validation and it resources. Other step on GAO already implemented including procedure and guidance to support them.

 

  1. Selection of the Preferred Alternative

With refer to GAO where it developed the step by step estimating process to provide the reliable output for estimating process, this step by step process is easily for auditable and accountable and traceable. Based on above checklist result, Author will propose to management by adopted the Force Field Tool for consideration and implementation.2&4

EY9 Fig2

Figure 2. Force Field Analysis

Based on above Force Field Analysis, Management need more focus on restraining forces.

  1. Performance Monitoring and Post-Evaluation of Results

Based on above result of estimating process check list, there is a missing process on conduct of sensitivity analysis and some of data validation and it resources. Author required to propose an idea and development of procedure to accommodate this process. Also the forces field Analysis above is a good to identify and understand the current state and represent the process needed for successful business setting.

 

Reference:

  1. United State Government Accountability Office (GAO) (2009), Cost Estimating and Assessment Guide, Chapter 1, pp.8-14
  2. Brassard, M. & Ritter, D. (2010), The Memory Jogger 2 Tools for Continuous Improvement and Effective Planning, Second Edition, Canada, Force Field Analysis, pp 86-90
  3. Permana, Arif (2013), W16_APE_Comparison Cost Estimate Process, Retrieved from https://simatupangaace2014.wordpress.com/2013/11/12/w16_ape_comparison-cost-estimate-process/
  4. Wells, Stephen. (2006), Force Field Analysis Mini-Tutorial Quality Management, Retrieved from http://www.freequality.org/documents/knowledge/Mini-Tutorial.pdf, 21 April 2015
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3 Responses to W9_EY_Estimating Process Benchmark

  1. drpdg says:

    AWESOME, Pak Edi!!!! Nice work…….. Great case study and you did a very professional job with your analysis and recommendations.

    Very pleased to see that when you benchmarked against what is clearly a “best in class” standard, that your organization came out looking very strong!!!

    The big question is how ACCURATE, RELIABLE and PRECISE are your cost and time estimates? The reason this is important is now that you know you have a good PROCESS in place, if your estimates are NOT ACCURATE, RELIABLE and PRECISE, then you need to do a Statistical Process Control analysis and a Pareto Analysis to help you identify what is wrong INSIDE THE PROCESS and what can you do to fix it…..

    Great job and looking forward to see what you can do next with this case study…..

    BR,
    Dr. PDG, Jakarta

    Like

  2. Pingback: W18_EY_Cost Estimating Process Selection | GARUDA AACE 2015

  3. Pingback: W6 Benchmark Of Cost Estimate Process refer to US Government Accountability Office/GAO – EMERALD AACE 2017 – WEEKLY BLOG

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