Economics and My Daily Life

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Airbus Defence and Space PARTNERING WITH PRICE® TO USE THE INNOVATIONS OF TRUEPLANNING® FOR MORE COMPETITIVE BIDDING ON ADVANCED TECHNOLOGY PROJECTS Challenge: Verify cost estimates to ensure bids are priced to win but are accurate and profitable for each stakeholder in a project’s supply chain. Solution: Create a Cost Estimation Framework (CEF) that uses TruePlanning® top-down, parametric estimating to set cost targets with TrueMapper® feature to cross-check estimators’ bottom-up estimates in Excel based on Work Breakdown Structure (WBS). Improve knowledge capture by creating an historical data repository of cost models to source information for future projects. CASE STUDY “PRICE provides us with more than your typical…show more content…
As a long-time user of PRICE for estimates of hardware components - just part of entire system bids - it was easy to discuss his broader vision with PRICE® Systems International. “PRICE provides us with more than your typical vendor/customer relationship; we work closely together in a real partnership,” says Manuel. “When we wanted to verify cost estimates for all bid processes that go into proposals, they listened, understood and collaborated with us on precisely what we wanted to achieve with an integrated Cost Estimation Framework.” Manuel’s vision for the CEF was to not disrupt bid processes that were already familiar and comfortable to estimation teams, but rather to add better direction at the early stages of a project, improve data sharing, and verify bottom-up estimates against pre-defined top-down cost targets. The CEF introduces tools and methods for Airbus’ existing estimation specialists without changing their processes. Integrating Parametric and Bottom-Up Estimating Tools Across a project’s life cycle, the CEF in effect synthesizes three costing methods: analytic, similarity and parametric. Key tools include ProMo+ from IAES Company for database management; QDV from Quotalys Ltd for managing analytical estimates and versioning; and TruePlanning® from PRICE® Systems to set cost targets, map topdown parametric estimates of Cost Element Structure to bottom-up WBS estimates in Excel, and share information contained in
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