Design Space Exploration through Cost-Capability Analysis — An Implementation of “Better Buying Power” in Early System Design

Date
August 17, 2017
10:00 am America/New_York (EDT)
Presenters
Gurney Thompson
PRICE® Systems, LLC.
Nate Sirirojvisuth
PRICE® Systems, LLC.
Abstract

 

Many complex systems nowadays can cost billions of dollars to acquire, take decades to develop and will last several more decades in service, needing constant repair and support. Can a point estimate at the beginning of a big acquisition program stand the test of time? How should we address the uncertainty that is prevalent in engineering models today?

In this webinar, we will use a conceptual aircraft design example to demonstrate a good cost management approach to perform cost-capability trades faster with accurate cost estimates. ModelCenter and PRICE Systems’ updated TruePlanning plug-in provide the ability to determine how a major redesign and infusion of technology can impact the system’s total ownership cost, with a quantifiable sensitivity to performance benefits. This presentation will discuss the experience and challenges in applying Better Buying Power concepts during concept exploration.

“What will it cost?” is a question that stays in the back of decision maker’s minds and often sets in motion engineering teams to scramble helplessly for answers every time the question is invoked. Almost always, the answer is incorrect. Poor cost estimates result in cancelled programs, reduced production units in response to increased development costs, and missed delivery dates. What is needed is good cost management that can evolve and adjust as the program matures. History has shown that without this form of cost management programs run the risk of ending up in a death spiral.

These questions will be addressed by using a conceptual aircraft design example as a representation of a complex system in an early development stage. ModelCenter and PRICE Systems’ TruePlanning plug-in takes center stage in determining how a major redesign and infusion of technology can impact the system’s total ownership cost, with a quantifiable sensitivity to performance benefits. This presentation will discuss the experience and challenges in applying Better Buying Power concepts during concept exploration. With the new PRICE Systems’ TruePlanning plug-in for ModelCenter, the cost engineering team now can perform cost-capability trades and provide an increasingly more confident answer to previously unanswered questions.

PRICE® TruePlanning® is a cost estimating framework designed to reduce the time and expense required to satisfy credible, data-driven parametric estimating needs at all levels of an organization. See more at: http://www.pricesystems.com.

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