Price H

A World-Class Hardware Coast Estimating Tool

PRICE H estimates the cost and schedule of hardware projects, for electronics and mechanics in development and production. It does it using high level quantitative parameters such as q uantity, weight, and size; qualitative parameters such as operational environment, design descriptors, level of integration and amount of new design; and schedule parameters.

Principle

• Data acquisition
  Price H is a model based on thousands of equations requiring parameters of 2 levels, processed with default global and economic data
  
  
• Level 1 parameters
  -Programmatic data: Schedule and quantity
  -Physical characteristics: Weight and volume
  -Complexity level, represented by a Manufacturing Complexity Factor used with the weight in the model's core equation.
  -Operating environment, design reuse, integration difficulty
  
  
• These parameters are entered into an Estimating Breakdown Structure (EBS), based on the Product Tree of the system. Each of the hardware elements can be composed of one or several technologies such as machining, sheet metal, cabling, power supply, RF electronics, etc., and the complexity level of these technologies can be established through, on the one hand the PRICE Tables or calibration, and on the other hand the second level parameters.
  
  
• Price Tables
  Embedded in the model or available on the Price Systems Web site, they contain reference (Industry Average) Complexity Factors based on the data collected over the last 25 years. These factors can be used to generate a Should Cost when internal data is missing.
  
  
• Calibration
  When actual costs are known, either internal or subcontracting, the model can be calibrated against these costs to your organization. The resulting Complexity Factors can then be used to generate which will reflect your productivity.
  
  



• Level 2 parameters
  For each of the technologies involved in the hardware elements, the Complexity Factor (level 1 parameter) can be calculated from technical detailed descriptors in the Complexity Generators (one for the mechanics, one for the electronics).
  

Calculation

Once the system has been described in the EBS, one can get the output cost and schedule from the various output reports available, or through the Excel Interface which has a dynamic link with Price H. The types of report are: Basic Estimate, probabilistic estimate (from the embedded Risk Analysis), schedule Gantt chart, spread, etc.

Price H generates MTBF and other LCC inputs to allow LCC and TOC modelling. The use of Purchasing Power Parities (from OECD) which reflect the differences in productivity between the countries, allows the modelling of multinational projects.