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  • Essay / Evaluation of the Cost Estimation Process - 1827

    EVALUATION OF THE COST ESTIMATION PROCESS WHITE SANDS MISSILE RANGE1. EXECUTIVE SUMMARYCurrently, White Sands Missile Range cost estimates account for the majority of labor, material, contract, and equipment costs. Thus, based on the base cost alone, the cost estimation process of WSMR should be carefully monitored and evaluated. The problem of this study was to determine options for improving the current cost estimation process. Specifically, my search included becoming a member of the Integrated Product team focused on the Strategic Plan 1.1 initiative. My main objective was to determine the current level of existing cost estimation tools. I compared what the Army, Navy, WSMR, and NASA organizations were using and evaluated their performance to come up with an effective cost estimating tool for IPT to consider. Interviews with several department heads familiar with cost estimation provided the primary data for this study. Overall, almost everyone I interviewed agreed on the need for an effective tool that would provide a system for managing project costs, measuring earned value, analyzing budgets, actuals and costs. projections. However, I discovered that everyone has their own method for making cost estimates and how to archive them. During my investigation, I found forty-five existing cost estimation methods and narrowed it down to a list of five. I selected the best five that fit the needs of what IPT was looking for. I assessed each of their strengths and weaknesses. Therefore, I recommend that WSTC consider further study of the methods I have found to improve its current cost estimation process. In the meantime, I continue to work with the IPT on developing an effective cost estimation tool that meets the requirements of the 1.1.CONTENTS1 Initiative. EXECUTIVE SUMMARY 22. INTRODUCTION 43. OBJECTIVE AND SCOPE OF THE STUDY 44. RESEARCH PROCESS 55. RESEARCH RESULTS 66. CONCLUSIONS AND RECOMMENDATIONS 87. POTENTIAL BENEFITS 98. REFERENCES 10EVALUATION OF COST ESTIMATION PROCESS RANGE ISSILE SAT WHITE SANDSAndres Ruvalcaba2. INTRODUCTIONCost estimates are a rapidly growing and increasingly important factor in the future success of the White Sands Missile Range. Without an effective way of estimating costs, your chances of retaining current customers are minimal. However, by analyzing methods to improve cost estimates, we can improve our processes and become a dynamic organization. This study inspired me to become a member of the IPT focused on Initiative 1.1 outlined in the 2004 WSMR Strategic Plan. Our goal as a team is to develop a coordinated cost estimation process and tool for the White Sands Test Center (WSTC).).).