W18_EY_Cost Estimating Process Selection


  1. Problem Definition

Before to start to develop cost estimate for the project, Author need to plan how the cost estimate process will work and identify step by step process from start up to cost estimate process complete. Follow up the comment on W16 blog posted in this blog Author will do the assessment and analyze which estimating process model is best to adopt for my company 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 Estimating Process in Humphreys Association, Project Management Using Earned Value and find out what is the strong or weakness on each process.

  1. Development of the Outcomes for Alternative

In Humphreys Association, Project Management Using Earned Value provides 15 step of estimating process as shown on following figure:

W18 EY Fig1

Figure 1. Estimating Process [1]

Author will do the step by step check list comparison with current process applied in the company.

  1. Selection of the Acceptable Criteria.

Author will check and analysis what are the missing step, weakness or other beneficial of estimating process if compare to 15 step of Humphreys Association 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:

W18 EY tab1

Table. 1. Checklist Comparison Result

Based on above checklist, all the step mention in the Humphreys Association approach already implemented and some of the current company steps implementation is beyond in these list. These cost like Cost Estimate Basis, Plan, Cost Model and Documentation process is not clear mention on the 15 step stated above.

  1. Selection of the Preferred Alternative

Based on above assessment and analysis, all the process already implemented in the current company cost estimating process. However the other references check list comparison should assess to have a better process.

  1. Performance Monitoring and Post-Evaluation of Results

All the process implemented already met the standard process. However the improvement, skill training, cost estimating software should implemented.

To look after the process improvement, next blog posting will do the assessment and analysis to include United State Government Accountability Office (GAO) and AACEI Recommended Practice in the checklist comparison.

 

Reference:

  1. Humphreys, C, G (2014), Project Management Using Earned Value 3rdEdition, Chapter 21, Estimating Development, pp.413-417
  2. Yushadi, Edi (2015), W9_EY_Estimating Process Benchmark. Retrieved from https://garudaaace2015.wordpress.com/2015/04/23/w9_ey_estimating-process-benchmark/
  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. Hollman, John K. (2003), AACE International Recommended Practice No. 19R-97 Estimating Preparation Cost – As Applied for Process Industries.
Advertisements
This entry was posted in Tak Berkategori. Bookmark the permalink.

One Response to W18_EY_Cost Estimating Process Selection

  1. drpdg says:

    EXCELLENT, Pak Edy!!! Really nice case study and you set it up and analyzed it correctly……

    Keep up the great work and looking forward to more postings like this in the closing weeks.

    Ramadan Kareem!!!

    BR,
    Dr. PDG, Dubai Int Airport on my way back to Jakarta

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s