Estimating and controlling the cost of extending technology: A revision and extension
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Authors
Moses, O. Douglas
Subjects
Technology Cost Estimation, Cost Control
Technology cost estimation
Cost control
Technology cost estimation
Cost control
Advisors
Date of Issue
1989-03
Date
1989-03
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
When firms undertake new development projects, there is considerable uncertainty as to the amount of cost that will eventually be incurred. This study tests hypotheses concerning the relationships between extensions in technology and costs, and provides approaches for estimating and controlling costs. The study begins by examining the techniques currently available for measuring the state-of-the-art of technology. Next, methods for quantifying the incremental progress represented by a particular project are reviewed and extended. Third, relationships between technology measures and development time and development costs are formulated and tested. Fourth, variance measures related to development cost are specified. Fifth, relationships between the scope of the development phase of a program and subsequent production costs are examined. Finally, the idea of a development cost premium, used to relate development costs to production costs, is introduced and tested. The workability of the approach for cost prediction and control is tested and demonstrated by using technological and cost data from 18 satellite programs. (kr)
Type
Technical Report
Description
Series/Report No
Department
Administrative Sciences
Identifiers
NPS Report Number
NPS-54-89-06
Sponsors
Prepared in conjunction with research conducted for Naval Sea System- Command Cost Estimating and Analysis Division and funded by the Naval Postgraduate School.
Funder
O&MN, Direct Funding
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.