Cost Estimating Body of Knowledge (CEBok) Now Available From SCEA
June 16, 2009 · Filed Under Estimating - 2 Comment(s)
The Cost Estimating Body of Knowledge (CEBok), the most robust cost guidebook available, is the product of SCEA (Society of cost estimating and analysis) The CEBok covers every aspect of cost estimating. CEBok is available for e nominal licensing fee from SCEA.
The following is the outline of the CEBok.
•I. Cost Estimating
In which we present the bread-and-butter work of turning data into cost estimates.
1.Cost Estimating Basics
Why cost estimating (and an overview of how)
Introduction to Cost Estimating and Analysis
Definition of Cost Estimating
Purpose of Cost Estimating
Reasons for Cost Estimating
Budgeting
Measured by track record
Planning
Measured by EVM Performance Indices
Trade-Offs
Measured by periodic Life Cycle Cost Estimate (LCCE)
Applications of Cost Estimating
Program Affordability
Acquisition Milestone Decisions
Budgets
Technology Changes
Analysis of Alternatives (AoA)
New Business Proposals
Source Selection
In-Process Reviews (IPRs)
Contracting and Project Management
Design Trade-Offs
Program Oversight
Cost Estimating Organizations
Cost Estimating Organizations Related Information
Examples
Estimates
Estimate Scope
View of Risk
Public Level
Press
Think Tanks
Academia
Government Level
Executive Branch
Office of Management and Budget (OMB)
Legislative Branch
Congressional Budget Office (CBO)
Government Accountability Office (GAO)
Department Level
Office of the Secretary of Defense (OSD) Cost Analysis Improvement Group (CAIG)
Office of the Director of National Intelligence (ODNI) CAIG
Mission Level
Service/Agency/Office
Naval Center for Cost Analysis (NCCA)
Air Force Cost Analysis Agency (AFCAA)
U.S. Army Cost and Economic Analysis Center (CEAC)
Architecture Level
Directorate/Systems Command (SYSCOM)
Program Level
Program Executive Office (PEO)/Program Office
Contract Level
Prime Contractor/Lead Systems Integrator (LSI)
Subcontractors
Cost Estimators
Cost Estimating Disciplines
Mathematics
Arithmetic
Algebra and Functional Forms
Probability and Statistics
Numerical Methods
Operations Research (OR)
Management Science
Modeling and Simulation (M&S)
(Constrained) Optimization
Industrial Engineering (IE)
Economics
Econometrics
Business
Finance
Budgeting
Programming, Planning, Budgeting, and Execution System (PPBES)
Accounting
Financial Systems
Enterprise Resource Planning (ERP)
Management Accounting
Computer Science
Software Development
Engineering
Mechanical Engineering
Electrical Engineering
Aerospace Engineering
Naval Architecture
Systems Engineering
Physics
Production Engineering/Manufacturing
Logistics
Marketing
Sales
Business Development
Voice of the Customer (VoC)
Written Communication
Public Speaking / Presentation Skills
Contracting
Contract Pricing
Overview of Cost Estimating and Analysis
Context for Cost Estimating
Requirements Process
Joint Capabilities Integration Development System (JCIDS)
Initial Capabilities Document (ICD)
Formerly Mission Needs Statement (MNS)
Capabilities Development Document (CDD)
Formerly Operational Requirements Document (ORD)
Capability Production Document (CPD)
Budgeting Process
PPBES
Acquisition Process
DoD 5000 series
Benefits of Cost Estimating
Cost Estimate Qualities
Limitations of Cost Estimating
Cost Estimating Challenges
Cost Products
Program/System Baseline
Cost Analysis Requirements Description (CARD)
System Technical Description
Work Breakdown Structure (WBS)
Predecessor System Description
Manpower Requirements
Risk
Operational Concept
Deployment
Logistics Support Concept
Training
Cost and Software Data Reporting (CSDR) Plan
Acquisition Schedule
Acquisition Strategy
System Test and Evaluation (ST&E)
Environmental Impact Analysis
Track to Prior CARD
Intelligence Capability Baseline Description (ICBD)
Cost Analysis Data Requirement (CADRe)
Types of Cost Estimates
Life Cycle Cost Estimate (LCCE)
Independent Cost Estimate (ICE)
Positional Definition of Independence
Budget Estimate
Rough Order of Magnitude (ROM)
AKA Quick-Look Assessment, WAG, SWAG
Independent Cost Assessment (ICA)
AKA Budget Sufficiency Review (BSR), Independent Cost Evaluation (ICE)
Estimate At Complete (EAC)
Cost/Price Proposal
Analysis of Alternatives (AoA)
Economic Analysis (EA)
Cost Estimate
Cost Model
Cost Model Components
Inputs
Outputs
Methods
Constraints
Cost Model Characteristics
Estimate Documentation
Cost Estimating Process
Work Breakdown Structure (WBS) Development
WBS and Cost Element Structure (CES)
Program WBS
CCDR Data Item Descriptions (DIDs)
Contract WBS
WBS Dictionary
MIL-HDBK-881A
Commodity-specific CES
Program/System Baseline Definition
Data Collection, Normalization, and Analysis
Cost Element Methodology
Model Development and Validation
Risk Analysis
Time Phasing
Cross-Checks
Results and Report Generation
Estimate Reconciliation
Murder Boards and Formal Reviews
Cost Estimating Certification
Cost Estimating Regulations
Title 10 U.S.C.
Intelligence Reform and Terrorism Prevention Act (IRTPA)
Clinger-Cohen Act
DoD 5000 series
DoDI 7041.3
CJCSI 3170.10F
“Hilbert’s Problems” for Cost Estimating
Technology Readiness Levels (TRLs)
The basic types of cost estimates
The Cost Estimating Framework
Past:� Understanding your historical data
Present: Developing estimating tools
Future:� Estimating the new system
Uncertainty and Risk
Precision vs. accuracy
Costing Techniques
Costing Techniques Related Information
Method
Application
Strengths
Weaknesses
Challenges
Example
Quantification of Uncertainty and Risk
Analogy
AKA Comparison Estimating, Scaling, Analysis of Analogues
Parametric
Calibrated CERs and Adjusted Analogies
Build-Up
AKA Engineering Build-Up, Grass-roots Estimate
Subordinate Techniques
Extrapolation from Actuals
AKA Empirical Estimating
Averages
Learning Curve
Estimate at Complete (EAC)
Expert Opinion
AKA Engineering Judgment, Round Table, Delphi Technique
Using Costing Techniques
Estimate Requirements and Program Status
Adequacy of program definition
Availability of data
Time constraints
Top Down vs. Bottom Up
Cost Element Structure (CES)
Technique Selection
Checking Results
Documentation
Comparison of Techniques
Advocacy
Life-Cycle Applicability
Analogies and Rates
Below-The-Line (BTL) Factors
AKA “Cost-on-Cost” CERs
Schedule Estimating
Reliability Theory
3.� Parametric Estimating
From data to CERs
Parametric Estimating Process
Data Collection
Parametric Values
Cost Driver Identification
Cost Drivers vs. Cost Passengers
Proxy Variables
Dummy Variables
Cost Estimating Relationship (CER) Development
Rates, Factors, and Ratios
Functional Forms
Regression
Calibration
Parametric Model Development
Validation of Parametric Inputs
Updating CERs
Cost Response Curves (CRCs)
Sensitivity Analysis
Multivariate CERs
Parametric Analysis of Technical Parameters
Off-The-Shelf Models
Parametric Estimating Models
PRICE
SEER
COCOMO II
Model Development Tools
ACE-IT
II.Cost Analysis Techniques
In which we present the techniques used to collect, normalize, and (de)escalate cost data as an input to the cost estimating process.
4.� Data Collection and Normalization
How to get the data and how to normalize it
Importance of Data
Data Key Principles
Reducible and Irreducible Noise
Sampling / Measurement Error
Types of Data
Cost, Technical, Programmatic
Primary vs. Secondary
Quality of Data Types
Quantitative vs. Qualitative
Objective vs. Subjective
Univariate, Bivariate, Multivariate
Data Collection Considerations
Contextual Completeness
Availability
Accessibility
Validity
Time Constraints
Estimate Requirements
Pitfalls
Special Data Needs
Data Collection Process
Understand Data Requirements and Resources
Establish Estimate Structure and Boundaries
Understand Estimate Technique Data Collection Needs
Develop Data Collection Plan
Data Collection Techniques
Site/Plant Visits (Observations)
Interviews
Surveys
Questionnaires
Focus Groups
Test and Assessments (historic)
Document Review
Data Mining
Data Sources
CARD/ICBD
Requirements Documents
Contractor Accounting Systems
Contractor Cost Reports
Cost and Software Data Reports (CSDRs)
Contractor Cost Data Reports (CCDRs)
Cost Performance Reports (CPRs)
Formats 1-5
Contract Funds Status Reports (CFSRs)
Other CDRLs
Databases
DoD Historical Databases
Defense Cost Analysis Resource Center (DCARC)
ACDB
Organization commodity-specific databases
Technical Databases
Contractor-Provided Documentation
Time Standards
AKA Work Measurement Standards
Contracts and Cost Proposals
Priced Bill Of Materials (BOM)
Cost Analysis Studies
Catalogs
Budget Data
Competitive Intelligence, Market Analysis, Benchmarking
The Internet
Data Normalization
Cost, Quantity, and Sizing
Escalation
Unit Conversion
Content
Cost Types
Overhead Changes
End-Item Homogeneity
WBS Mapping
Make-Buy Changes
State of Development
Key Groupings
Non-Recurring vs. Recurring Cost
TRLs Descriptions
Data Collection for Risk Analysis
Initial and Final Values
5.� Inflation and Index Numbers
How to adjust for the general rise in prices over time
Inflation and Cost Estimating
Base-Year Estimating Paradigm
Inflation Impact on Estimates
Inflation Concepts and Definitions
Inflation and Escalation
Escalation vs. Discounting
Index Numbers
Consumer Price Index (CPI)
Current-Year dollars
Constant-Year dollars
Then-Year (budget) dollars
Base-Year dollars
Appropriations
Commitments
Obligations
Expenditures
Outlay profiles
Colors of Money
Research, Development, Test and Evaluation (RDT&E)
Procurement
Operations and Maintenance (O&M)
Inflation Indices
Raw indices
Composite Indices
Weighted Average
Weighted indices
Budget year multipliers (BYM)
Inflation Tables and Escalation Procedures
Index Tables
Layout
Creating tables
Shifting Base Year of tables
Conversions
CY$ to CY$
CY$ to TY$
TY$ to CY$
TY$ to TY$
Time Phasing Methodologies
Doubling Time
Custom Indices
Mathematical Means
Arithmetic Mean
Geometric Mean
Harmonic Mean
Inflation Pitfalls and Means
III.� Analytical Methods
In which we present the mathematical tools needed to address correlation, cost improvement, and uncertainty in cost estimating.
6.� Basic Data Analysis Principles
What to do once you get the data
Types of data
Univariate
Bivariate
Multivariate
Time Series
Autocorrelation
Univariate Data Analysis
Visual Display of Information
Histograms
Box plots
Stem-and-leaf plots
Pie charts
Measures of Central Tendency
Mean
Average Cost
Mental Math Trick
Median
Mode
Measures of Variability
Range
Variance
Standard Deviation
Coefficient of Variation (CV)
Measures of Uncertainty
Confidence Intervals
Sufficiently Large and
Sample Size Thumb Rule
Prediction Intervals
Statistical Tests
t test for means
Chi-Square and K-S tests for distribution
Scatter Plots
Variables
Cost vs. parameter
Cost vs. time
Cost vs. cost
Axes
Unit Space (standard Cartesian)
Semi-log
Log-log
Function types
Linear
Power
Exponential and logarithmic
Constant terms
Data Validation
Descriptive statistics
Bar charts
Outliers
Rules of thumb
Visual Display of Information
7. Learning Curve Analysis
How to account for cost improvement
Learning Curve Theory
Learning Curve Concepts
Slope
Theoretical First Unit (T1)
Equation
Learning Curve Data
Unit Cost Data
Cumulative Cost Data
Cumulative Average Cost Data
Lot Data
Cumulative Average Learning Curve Theory (CUMAV)
AKA Wright
Unit Learning Curve Theory (ULC)
AKA Crawford
Lot Data and Lot Midpoints (LMP)
LMP Formula
Quadratic? Cf. chapter in David Lee’s Cost Analyst’s Companion
LMP Heuristic
LMP Approximation
LMP Rules of Thumb
Learning Curve Application
Choosing a Learning Curve Theory
Fitting a Learning Curve
Industry Average Curves
Factors Affecting Slope
Learning Curves for New Programs
Prototypes and Step-Up/Step-Down Factors
Quantity As an Independent Variable (QAIV)
Laws of Logarithms
Production Break Effects
Break Point
Andelohr
New Work Effects
Production Rate Effects
8.� Regression Analysis
How to develop and assess a CER
Bivariate Data Analysis
Visual Display of Information
Scatter plot
Residual plots
Measures of Central Tendency
Y-hat from regression equation
Measures of Variability
Standard Error of the Estimate (SEE)
R-squared
Measures of Uncertainty
Confidence Intervals
Prediction Intervals
Statistical Tests
F test
t test
Analysis of Variance (ANOVA)
Regression Models
Ordinary Least Squares (OLS)
Linear Regression
Non-Linear Models
Multivariate Regression
Non-OLS Models
Generalized Least Squares
General Error Regression Models (GERM)
Iteratively Reweighted Least Squares (IRLS)
Weighted Least Squares (WLS)
Minimum Unbiased Percent Error (MUPE)
Zero Percent Bias (ZPB) Minimum Percent Error (ZMPE)
Regression Analysis in Excel
Data Analysis ToolPak macro
LINEST() and LOGEST() formulae
Trendlines
Definition of Regression
Regression Analysis in Cost Estimating
Preliminary Concepts
Correlation
Causation
Functional Forms
Linear Relationships
Power Functions
Exponential Functions
Logarithmic Functions
Polynomial Functions
Linear Regression
Assumptions for Linear Regression Models
Finding the Equation
Slope
Intercept
Residual Analysis
Goodness of Fit
Analysis of Variance (ANOVA)
Regression Sum of Squares (SSR)
Sum Squared Error (SSE)
Total Sum of Squares (SST)
Uncertainty
Standard Error of regression coefficients
Coefficient of Variation (CV)
Statistical Significance
Significance Level
t statistic
F statistic
Explained Variation
R-squared
Confidence Intervals
Prediction Intervals
Multivariate Regression Analysis
Adjusted R-squared
Multicollinearity
Paring down the multiple regression model
Selecting the Best Model
Selecting “Within Type”
Selecting “Across Type”
Geometric Interpretations
Derivation of Formulae
The Bivariate Normal Distribution and the Geometry of Regression
9.� Cost and Schedule Risk Analysis
How to adjust your estimate for uncertainty and historical cost and schedule growth
Concepts and Definitions
Independence and Cost Realism
Cost Growth
Cost Risk
Cost Estimating Risk
Schedule/Technical Risk
Requirements Risk
Threat Risk
Risk and Uncertainty
Risks and Opportunities
Types of Cost Risk Models
Historically-Based vs. Expert-Opinion-Based
Inputs Risk vs. Outputs Risk
Risk Model Architecture
Inputs – Scoring
Inputs – Dollar Basis
Structure – Organization
Coverage and Partition
Assigning Cost to Risk
Below-the-Line
Structure – Probability Model
Distribution
Correlation
Functional Correlation
Relational Correlation
Injected Correlation
Execution – Computation
Execution – Cross-Checks
Risk Management
Risk Cube
Historical Cost Growth Analysis
Selected Acquisition Reports (SARs)
Contract Data
Common Problems
Applicability
Currency
Program Phase
Commodity
Phase-to-Phase Correlation
Risk and Uncertainty of OLS CER-Based Estimates
Schedule Risk Analysis
Schedule Networks
Distribution of Schedule Risk
Schedule and Cost Growth
Predicting EAC Growth
Size Adjustments
Self-Fulfilling Prophecy
Geometry of the Bivariate Normal
10.� Probability and Statistics
Mathematical underpinnings of cost estimating
Concepts and Definitions
Probability
Statistics
Role of Probability and Statistics in Cost Estimating
Population vs. Sample
Random Variables
Discrete vs. Continuous
Probability Density Function (PDF)
Cumulative Distribution Function (CDF)
Descriptive vs. Inferential Statistics
Parametric vs. Non-Parametric Statistics
Measures of Central Tendency
Mean
Median
Mean, Median, and Skew
Mode
Measures of Variability
Variance
Standard Deviation
Coefficient of Variation (CV)
Probability Distributions
Normal
Central Limit Theorem
Bivariate Normal
Student’s t
Lognormal
Normal vs .Lognormal
F
Triangular
Other Continuous Distributions
Chi-Square
Rayleigh
Beta
Extreme Value
Discrete Distributions
Bernoulli
Relationships between Distributions
Covariance and Correlation of Random Variables
Hypothesis Testing
Null Hypothesis and Alternative Hypothesis
One-Tail vs. Two-Tail Tests
Statistical Significance
Type I and Type II Errors
Test Statistic
Critical Value
P-Values
Confidence Intervals
Statistical Tests
t test
One-sample
Two-sample
F test
Chi Square test for variance
k-Sample test for means
Chi Square goodness of fit test
Kolmogorov-Smirnov (K-S)
Monte Carlo Simulation
Inverse CDF technique
Off-the-Shelf Risk Tools
Crystal Ball
@Risk
IV.� Specialized Costing
In which we present the particular issues associated with two important cost estimating environments.
11.� Manufacturing Cost Estimating
Techniques for estimating in a manufacturing environment
Manufacturing Process Overview
Manufacturing Functional Cost Elements
Engineering
Prototyping
Advanced Development Models (ADMs)
Engineering Development Models (EDMs)
Tooling
Production Setup
Setup Time
Fixed vs. Variable Cost
Test Equipment
Facilities
Manufacturing
Run Time
Quality Control (QC)
Labor Estimating
Time Standards
AKA Labor Hour Standards, Standard Hour Cost
Time and Motion Studies
Personal Fatigue and Delay (PF&D)
Variance Factor (VF)
Realization Factor (RF)
AKA Efficiency, Performance To Standards (PTS), Performance Factor
Support Labor
CERs for “Non-Standard” Elements
Standard Cost Accounting Elements
Direct Labor
Direct Salary
Fringe Benefits
Indirect Cost
Overheads
AKA Burdens
Absorption Costing
General and Administrative (G&A)
Facilities Capital Cost of Money (FCCOM)
Profit/Fee
Labor Concerns
Learning Curve
Production Breaks
Green Labor
Process Improvements
Equipment Utilization Rate
Make or Buy
Rates Estimating
Forward Pricing Rate Agreements (FPRAs)
Composite Labor Rates
Correct Labor Mix
Rate Premiums
Organized Labor
Material Estimating
Material Costs
Raw Material
Purchased Parts
Subcontractor Costs
Types of Raw Materials
Material Concerns
Tolerances
Quality
Scrap Rates
AKA Yield Rates, Material Usage Allowance (MUA)
Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM)
Material Take-Off List (MTOL)
Material Manufacturability
Manufacturing Process Issues
3D Modeling
Integrated Product and Process Development (IPPD)
Lean Manufacturing
Six Sigma
Agile Manufacturing
Quality Assurance (QA)
Correcting Standards and RF as a Metric
Classified Manufacturing Issues
12.� Software Cost Estimating
Techniques for estimating in a software development environment
Software Overview
Software Development Process
Work Breakdown Structure (WBS) for Software Programs
Comparison and Contrast to Hardware
Major Categories
Platform
Enterprise Resource Planning (ERP) Systems
Automated Information System (AIS)
Software Development Approaches
Programming
Linear
Object-Oriented
Life Cycle Methodologies
Waterfall
Incremental
Evolutionary
Spiral
Software Cost Drivers
Size
Source Lines Of Code (SLOC)
Code Reuse and Equivalent SLOC (ESLOC)
Function Points
Object Points
Complexity
Capability
Development Schedule
Schedule Compression
Post-Deployment Software Support
Software Maintenance
Help Desk
Estimating Techniques Applied to Software
Analogy
Parametric
Challenges in Estimating Software
Sizing
Technology
Quality
COTS Software
Calibration
Databases
Code Growth
Labor Supply and Demand
Industry Standards and Rules of Thumb
Software Data Collection
Software Resources Data Reports (SRDRs)
Off-The-Shelf Models
COCOMO II
SEER SEM
True S
Software Buzzwords
Firmware
Agile Development
Software as a Service (SaaS)
Service Oriented Architecture (SOA)
Interoperability
Net-Centric Operations
Data-Centric Architectures
Open Source Software
V.� Management Applications
In which we present the use of cost estimating within project management, relating cost to value and in so doing returning to our starting point of why we do cost estimating in the first place.
13.� Economic Analysis
How to choose between investment options
Principles of Economic Analysis (EA)
Definition and Purpose
AKA Cost-Benefit Analysis, Business Case Analysis
EA Regulations
DoD Guidance
Clinger-Cohen Act
OMB
Capital Budgeting
EA Process
Define the Objective
Formulate and Validate Assumptions
Strict Constraints
Assumptions of Convenience
Identify and Examine Alternatives
Status Quo
Modernize existing assets
Lease/Privatization
New Acquisition
Develop Cost and Benefits Estimates
Economic Life
Physical Life
Mission Life
Technological Life
Period of Analysis
Shortest Life
Common Denominator Life
Uniform Annual Cost
Type of Dollars
Constant Dollars
Current Dollars
Base Year
Costs
LCC
Opportunity costs
Imputed costs
Status Quo phase-out costs
Sunk costs
Wash costs
Benefits
Quantifiable, monetary
Quantifiable, non-monetary
Non-quantifiable
Cost savings
Cost avoidance
Improved productivity
Residual value
Terminal value
Salvage value
Realized benefits
Wash benefits
Compare and Rank Alternatives
Time Phasing
Inflation
Discounting
Time Value of Money
Present Value
Real Discount Rates
Nominal Discount Rates
Discount Factors (mid-year and end-of-year)
Comparison Techniques
Net Present Value (NPV)
Uniform Annual Cost (UAC)
Cost/Benefit Ratio (C/BR)
Savings/Investment Ratio (SIR)
Internal Rate of Return (IRR)
AKA Return on Investment (ROI)
Payback Period Analysis
Break-Even Analysis
Test Sensitivity of Alternative Rankings
Formulate Recommendation
Special Cases
Functional Economic Analysis (FEA)
Commercial Activities (A-76)
Analysis of Alternatives (AoA)
AKA Cost and Operational Effectiveness Assessment (COEA)
Lease-Purchase Decisions
Other Special Cases
MILCON Projects
Overseas Activities
Warranty Analysis
Asset Sale Analysis
Quantifying Non-Monetary Benefits
Depreciation Methods
Straight Line
Multiple Straight Line
Sinking Fund
Declining Balance
Modified Accelerated Cost Recovery System (MACRS)
Sum of the Years’ Digits
Units of Production
Units of Time
14.� Contract Pricing
The role of cost estimating in the contracting process
Background
Acquisition Planning
Acquisition Process
Contracting Process
Contract Pricing Process
Determining the Contract Vehicle
Program Risk
Program Phase
Commodity-specific concerns
Creating the Cost/Pricing Proposal
Performing the Cost/Price Comparative Analysis
Pricing Contract Changes
Contract Types
Federal Acquisition Regulation (FAR) Section 16
Cost Reimbursable vs. Fixed Price
Incentive vs. Non-Incentive
Share-Lines and Share Ratios
Completion vs. Best Efforts
Contract End Items
Contract Types and Risk
Default Risk
Good Will Risk
Fee, Profit, and Margin
Revenue
Fixed Price
Firm Fixed Price (FFP)
Fixed Price Incentive (FPI)
Firm and Successive Targets
Ceiling Price
Point of Total Assumption (PTA)
Share Ratios
Cost Plus
Cost Plus Award Fee (CPAF)
Cost Plus Incentive Fee (CPIF)
Minimum and maximum fee
Cost Plus Fixed Fee (CPFF)
Not-to-Exceed Cost
Other Contract Types
Indefinite-Delivery Indefinite Quantity (ID/IQ)
Time-and-Materials (T&M)
Labor-Hour
Letter Contracts
Uniform Contract Format
Basis of Estimate (BOE) Documentation
Estimating Methodologies
Estimate Qualities
Estimate Validity
BOE Review
Uniform Contract Format
Cost Accounting Standards (CAS)
Allowable Costs
Labor Cost Accounting
Material Cost Accounting
15.� Earned Value Management (EVM)
Tracking cost and schedule performance on projects
Earned Value Management (EVM) Introduction
EVM Purpose and Benefits
EVM Applicability
EVM History
EVM Regulations
EVM Components
Integrated Baseline
Resource-Loaded Schedule = Time-Phased Budget
Work Breakdown Structure (WBS)
Organizational Breakdown Structure (OBS)
Control Accounts and Control Account Managers (CAMs)
Performance Measurement Baseline (PMB)
Work Packages
Planning Packages
Undistributed Budget
“Rolling Wave”
Management Reserve (MR)
Contract Budget Base (CBB)
Earned Value Data Elements
Planned Value (PV) = Budgeted Cost of Work Scheduled (BCWS)
Earned Value (EV) = Budgeted Cost of Work Performed (BCWP)
Actual Cost (AC) = Actual Cost of Work Performed (ACWP)
Budget At Complete (BAC)
Latest Revised Estimate (LRE)
Earned Value Techniques
Milestone (Weighted)
Percent Complete
0/100
50/50 (or X%/Y%)
Level Of Effort (LOE)
Earned Value Analysis
Analysis of Past Performance
Cost Variance (CV)
Schedule Variance (SV)
Cost Performance Index (CPI)
Schedule Performance Index (SPI)
MR Usage
Percent Planned
Percent Complete
Percent Spent
Past Performance Root Causes
Past Performance Anomalies
Variance Reports
Projection of Future Performance
Estimate At Complete (EAC)
Variance At Complete (VAC)
To-complete Cost Performance Index (TCPI)
Earned Value Review Process
Cost Reports
Contract Performance Report (CPR)
Formats 1-5
Contract Funds Status Report (CFSR)
Integrated Baseline Review (IBR)
Baseline Analysis
Rebaselining
Over Target Baseline (OTB)
Over Target Schedule (OTS)
EVM Tripwires
EV and the Integrated Master Schedule (IMS)
Earned Schedule
Risk Management Integration with EVM
Advanced EACs
Progress-Based EACs
Rules of Thumb
Earned Value Tools
EV Engines
Artemis CostView
Dekker TRAKKER
Cobra
MicroFrame Project Manager (MPM)
EV Analysis Tools
wInsight
Dekker iPursuit
16.� Cost Management
Managing cost, performance, and value
Cost Management Overview
Impetus for Cost Management
Definition of Cost Management
Objectives of Cost Management
Product and Process Costs
Methodologies and Tools
Government Perspective
Performance-Based Logistics (PBL
Total Life Cycle Systems Management
Cost As an Independent Variable (CAIV)
Simulation-Based Acquisition (SBA)
Open Systems Architecture (OSA)
Commercial Off-The-Shelf (COTS) technology
Affordability Through Commonality (ATC)
Specifications and Standards
Concurrent Engineering and Supportability Analysis (CESA)
Integrated Product and Process Development (IPPD)
Activity-Based Costing and Management (ABC/M)
Performance and contract incentives
Outsourcing and Right-sourcing
Defense Industrial Base
Commercial Perspective
ABC/M
Life Cycle Costing
Target Costing
Time To Market
Value Engineering
Quality Function Deployment (QFD)
Capacity Management
Lean Manufacturing and Agile Manufacturing
Statistical Process Control (SPC) and Six Sigma
Benchmarking
Voice of the Customer (VOC)
Customer Relationship Management (CRM)
Supply Chain Management
Process Management and Business Process Reengineering (BPR)
Continuous Improvement (Kaizen)
Total Ownership Cost (TOC)
Life Cycle Costing
Linked Indirect Costs
Life Cycle Cost Elements
Sunk Costs
Acquisition Costs
Research and Development (R&D)
Production
Rollaway/sailaway/flyaway
Average unit procurement cost (AUPC)
Operations and Support (O&S) Costs
Disposal Costs
TOC Reduction and Cost Management
Cost As an Independent Variable (CAIV)
CAIV Definition
Cost/Performance Trades
Linkage
Performance
Measures of Effectiveness
Cost
Exchange Rate
Equal Preference Curves
Decision Analysis
Dominance
“Bang for the buck”
Extreme Cost Curves
Setting Thresholds and Objectives
Role of Cost Estimating
Performance Estimating Relationships (PERs)
Should Cost
Target Costing
Evolution of Target Costing
Target Costing Definition
Price led
Customer focused
Design centered
Design to Cost (DTC)
Cross functional
Life-cycle oriented
Value-chain based
Target Costing vs. CAIV
Target Costing Tools
Benefits of Target Costing
Activity Based Costing (ABC)
ABC Model
Resources
Activities
Outputs (Cost Objects)
ABC and Activity-Based Management (ABM)
Role of Cost in ABC/M
Initiatives and Cost Estimating
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2 Responses to “Cost Estimating Body of Knowledge (CEBok) Now Available From SCEA”
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Hello
I am a university professor doing research on the definition of setup time and setup cost as used in product costing systems.
My prior work has focused on reducing setup times and costs from the operations and engineering perspective. Now I am curious as to how the cost accounting function accounts for setup (changeover) costs. My experience may suggest an enriched definition is warranted.
Questions:
Can you direct me to a first hand source?
Is there a standard definition/method prescribed by the cost accounting community?
What are alternative definitions of setup time/cost, if any?
How are setup costs calculated in common ERP cost accounting modules? What fields are provided? What drivers are suggested?
Are such systems flexible enough to allow custom definitions?
Any help you can provide will be appreciated.
Sincerely
John Leschke, MBA, PhD (U of Wisconsin- Stevens Point starting Fall 2010)
Galorath’s Joe Falque provided an answer at http://www.galorath.com/wp/accounting-definitions-for-steup.php