City Research Online

Abstract

The application of engineering practices and scientific principles to the creation of cost estimates along a product life cycle is one of the basic aspects of Cost Engineering. Cost estimates are used as fundamental criteria to make design decisions in the development stage and also to make business decisions in collaboration between OEMs and their supply chain. The achievement of an estimate requires experience and knowledge of different techniques and methodologies. Key aspects on its creation are the adoption of a cost estimating process, the availability of the needed data and the proper management of the information used during the process. The collaboration between the OEM and its supplier can be facilitated by having a better common understanding of how the cost estimates have been created. The cost estimating process used is then a fundamental piece of trust. In this context, the main purpose of this paper is to present the research conducted in the definition of cost estimating processes and the virtual framework selected. They are the key elements in the development of a prototype set of virtual tools to support the creation of cost estimates, the improvement of competences of the Cost Engineering Community, and the common understanding on cost between OEMs and their supply chain.

Publication Type:	Conference or Workshop Item (Paper)
Additional Information:	© 2006 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.
Publisher Keywords:	Cost Estimating Processes, Product Cost Estimating, Virtual Cost Estimating, Cost Engineering
Subjects:	H Social Sciences > HD Industries. Land use. Labor T Technology > TA Engineering (General). Civil engineering (General)
Departments:	School of Science & Technology

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