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Cost Estimation Models
Cost estimation models are mathematical algorithms or parametric equations used to estimate the costs of a product or project. The results of the models are typically necessary to obtain approval to proceed, and are factored into business plans, budgets, and other financial planning and tracking mechanisms. These algorithms were originally performed manually but now are almost universally computerized. They may be standardized (available in published texts or purchased commercially) or proprietary, depending on the type of business, product, or project in question. Simple models may use standard spreadsheet products. Models typically function through the input of parameters that describe the attributes of the product or project in question, and possibly physical resource requirements. The model then provides as output various resources requirements in cost and time. Some models concentrate only on estimating project costs (often a single monetary value). Little attention has be ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Algorithm
In mathematics and computer science, an algorithm () is a finite sequence of Rigour#Mathematics, mathematically rigorous instructions, typically used to solve a class of specific Computational problem, problems or to perform a computation. Algorithms are used as specifications for performing calculations and data processing. More advanced algorithms can use Conditional (computer programming), conditionals to divert the code execution through various routes (referred to as automated decision-making) and deduce valid inferences (referred to as automated reasoning). In contrast, a Heuristic (computer science), heuristic is an approach to solving problems without well-defined correct or optimal results.David A. Grossman, Ophir Frieder, ''Information Retrieval: Algorithms and Heuristics'', 2nd edition, 2004, For example, although social media recommender systems are commonly called "algorithms", they actually rely on heuristics as there is no truly "correct" recommendation. As an e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Software Development Effort Estimation
In software development, effort estimation is the process of predicting the most realistic amount of effort (expressed in terms of person-hours or money) required to develop or maintain software based on incomplete, uncertain and noisy input. Effort estimates may be used as input to project plans, iteration plans, budgets, investment analyses, pricing processes and bidding rounds. State-of-practice Published surveys on estimation practice suggest that expert estimation is the dominant strategy when estimating software development effort. Typically, effort estimates are over-optimistic and there is a strong over-confidence in their accuracy. The mean effort overrun seems to be about 30% and not decreasing over time. For a review of effort estimation error surveys, see. However, the measurement of estimation error is problematic, see Assessing the accuracy of estimates. The strong overconfidence in the accuracy of the effort estimates is illustrated by the finding that, on average, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Parametric Model
In statistics, a parametric model or parametric family or finite-dimensional model is a particular class of statistical models. Specifically, a parametric model is a family of probability distributions that has a finite number of parameters. Definition A statistical model is a collection of probability distributions on some sample space. We assume that the collection, , is indexed by some set . The set is called the parameter set or, more commonly, the parameter space. For each , let denote the corresponding member of the collection; so is a cumulative distribution function. Then a statistical model can be written as : \mathcal = \big\. The model is a parametric model if for some positive integer . When the model consists of absolutely continuous distributions, it is often specified in terms of corresponding probability density functions: : \mathcal = \big\. Examples * The Poisson family of distributions is parametrized by a single number : : ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost Overrun
A cost overrun, also known as a cost increase or budget overrun, involves unexpected incurred costs. When these costs are in excess of budgeted amounts due to a value engineering underestimation of the actual cost during budgeting, they are known by these terms. Cost overruns are common in infrastructure, building, and technology projects. For IT projects, a 2004 industry study by the Standish Group found an average cost overrun of 43 percent; 71 percent of projects came in over budget, exceeded time estimates, and had estimated too narrow a scope; and total waste was estimated at $55 billion per year in the US alone. Many major construction projects have incurred cost overruns; cost estimates used to decide whether important transportation infrastructure should be built can mislead grossly and systematically. Cost overrun is distinguished from cost escalation, which is an ''anticipated'' growth in a budgeted cost due to factors such as inflation. Causes Recent works by Ahi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elemental Cost Planning
Elemental cost planning is a system of Cost planning and Cost control, typically for buildings, which enables the cost of a scheme to be monitored during design development. 1951 saw the publication of the Ministry of Education Building Bulletin No 4 which essentially introduced the concept of elemental cost planning to the UK construction industry. Its Author was James Nisbet. The concept has been refined and developed over more than 50 years in the UK by BCIS (the Building Cost Information Service of the Royal Institution of Chartered Surveyors).... Elemental Cost Planning relies upon the adoption of a Standard Form of Cost Analysis for buildings which allows costs to be compared on a common format and forms the basis of the benchmarking analysis central to the concept of Elemental Cost Plans. It should :- *Ensure that the tender amount is close to the first estimate, or that any likely difference between the two is anticipated and is acceptable. *Ensure that the money availabl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Estimation
Estimation (or estimating) is the process of finding an estimate or approximation, which is a value that is usable for some purpose even if input data may be incomplete, uncertain, or unstable. The value is nonetheless usable because it is derived from the best information available.C. Lon Enloe, Elizabeth Garnett, Jonathan Miles, ''Physical Science: What the Technology Professional Needs to Know'' (2000), p. 47. Typically, estimation involves "using the value of a statistic derived from a sample to estimate the value of a corresponding population parameter".Raymond A. Kent, "Estimation", ''Data Construction and Data Analysis for Survey Research'' (2001), p. 157. The sample provides information that can be projected, through various formal or informal processes, to determine a range most likely to describe the missing information. An estimate that turns out to be incorrect will be an overestimate if the estimate exceeds the actual result and an underestimate if the estimate f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Parametric Estimating
Estimation theory is a branch of statistics that deals with estimating the values of parameters based on measured empirical data that has a random component. The parameters describe an underlying physical setting in such a way that their value affects the distribution of the measured data. An ''estimator'' attempts to approximate the unknown parameters using the measurements. In estimation theory, two approaches are generally considered: * The probabilistic approach (described in this article) assumes that the measured data is random with probability distribution dependent on the parameters of interest * The set-membership approach assumes that the measured data vector belongs to a set which depends on the parameter vector. Examples For example, it is desired to estimate the proportion of a population of voters who will vote for a particular candidate. That proportion is the parameter sought; the estimate is based on a small random sample of voters. Alternatively, it is ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Estimation In Software Engineering
Cost estimation in software engineering is typically concerned with the financial spend on the effort to develop and test the software, this can also include requirements review, maintenance, training, managing and buying extra equipment, servers and software. Many methods have been developed for estimating software costs for a given project. Methods Methods for estimation in software engineering include these principles: * Analysis effort method * Parametric Estimating * The Planning Game (from Extreme Programming) * ITK method, also known as Method CETIN * Proxy-based estimating (PROBE) (from the Personal Software Process) * Program Evaluation and Review Technique (PERT) *Putnam model, also known as SLIM * PRICE Systems Founders of Commercial Parametric models that estimates the scope, cost, effort and schedule for software projects. * SEER-SEM Parametric Estimation of Effort, Schedule, Cost, Risk. Minimum time and staffing concepts based on Brooks's law * The Use Case Poin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
New Product Development
New product development (NPD) or product development in business and engineering covers the complete process of launching a new product to the market. Product development also includes the renewal of an existing product and introducing a product into a new market. A central aspect of NPD is product design. New product development is the realization of a market opportunity by making a product available for purchase. The products developed by an commercial organisation provide the means to generate income. Many technology-intensive organisations exploit technological innovation in a rapidly changing consumer market. A product can be a tangible asset or intangible. A service or user experience is intangible. In law, sometimes services and other processes are distinguished from "products". NPD requires an understanding of customer needs and wants, the competitive environment, and the nature of the market. Cost, time, and quality are the main variables that drive customer needs. Ai ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Parametric Equations
In mathematics, a parametric equation expresses several quantities, such as the coordinates of a point, as functions of one or several variables called parameters. In the case of a single parameter, parametric equations are commonly used to express the trajectory of a moving point, in which case, the parameter is often, but not necessarily, time, and the point describes a curve, called a parametric curve. In the case of two parameters, the point describes a surface, called a parametric surface. In all cases, the equations are collectively called a parametric representation, or parametric system, or parameterization (also spelled parametrization, parametrisation) of the object. For example, the equations \begin x &= \cos t \\ y &= \sin t \end form a parametric representation of the unit circle, where is the parameter: A point is on the unit circle if and only if there is a value of such that these two equations generate that point. Sometimes the parametric equations f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Manufacturing
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the secondary sector of the economy. The term may refer to a range of human activity, from handicraft to high-tech, but it is most commonly applied to industrial design, in which raw materials from the primary sector are transformed into finished goods on a large scale. Such goods may be sold to other manufacturers for the production of other more complex products (such as aircraft, household appliances, furniture, sports equipment or automobiles), or distributed via the tertiary industry to end users and consumers (usually through wholesalers, who in turn sell to retailers, who then sell them to individual customers). Manufacturing engineering is the field of engineering that designs and optimizes the manufacturing process, or the steps through which raw materials are transformed i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Software Development
Software development is the process of designing and Implementation, implementing a software solution to Computer user satisfaction, satisfy a User (computing), user. The process is more encompassing than Computer programming, programming, writing source code, code, in that it includes conceiving the goal, evaluating feasibility, analyzing software requirements, requirements, software design, design, software testing, testing and software release life cycle, release. The process is part of software engineering which also includes management, organizational management, Software project management, project management, configuration management and other aspects. Software development involves many skills and job specializations including software programmer, programming, software test, testing, Technical writing, documentation, graphic design, user support, marketing, and fundraising. Software development involves many software tools, tools including: compiler, integrated develo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
