Recent and future trends in cost estimation

Towards the derivation of an integrated process cost-modelling technique for complex manufacturing systems

“…Gray (Gray, MacDonell et al 1999) argues that cost judgements from experts and knowledgeable people cannot be done away with considering the fact that it takes a relatively long time to collect and analyse cost information. But Caputo (Caputo and Pelagagge 2008 (Asiedu, Besant et al 2000;Layer, Brine et al 2002;Caputo and Pelagagge 2008) into: 1) statistical; 2) analogous 3) generative or analytical and 4) feature based. They explained that statistical models adopt statistical criteria to identify causal links and correlate cost and product characteristics to obtain a parametric function with one or more variables.…”

“…Analogous cost models identify the cost models of products or projects of similar characteristics and features. Thus the strength of the similarity is proportional to the correspondence of the relevant characteristics (Layer, Brine et al 2002). Generative or analytical cost modelling methods attempt to decompose and model processes associated with the development of the product or project (Caputo Rush (Rush and Roy 2001) indicated that, in general terms, cost modelling requires a combination of high skills and extensive knowledge of multiple disciplines and relies on the accurate understanding of design and manufacturing capabilities of companies and their suppliers.…”

“…In his extensive research on the economics of software engineering, he classified and described 7 cost modelling techniques as: 1) Parametric; 2) Expert judgement; 3) Analogy; 4) Parkinson; 5) Price to win; 6) Top down; and 7) Bottomup. Later researchers such as Hughes and Curran However from a methodological point of view, cost estimating techniques may be based on qualitative or quantitative approaches (Layer, Brine et al 2002;Foussier 2006). Cost models based on qualitative methods adopt expert judgement and heuristic rules as means of estimating cost (Caputo and Pelagagge 2008).…”

Data-driven through-life costing to support product lifecycle management solutions in innovative product development

“…In order to estimate the cost of making a product, there are different costing methods and techniques available. Traditional costing methods and techniques are usually performed using historical data and knowledge (Niazi, et al, 2006) and (Layer, et al, 2002). Whether it is in the design, the manufacturing or other stages of a product's development, cost estimation depends on the availability of data and knowledge.…”

A new approach for product cost estimation using data envelopment analysis

“…According to Layer et al (2002), product cost assessment may be classified as pre-assessment, intermediate assessment and post-assessment. Pre-assessment is the process of estimating product costs using historical cost data of related products; intermediate assessments are required for controlling costs during the product development cycle.…”