Cost Elimination Techniques Flashcards
Top-down approach
top-down uses historical data from similar projects.
best used when alternatives are being developed
Bottom-up approach
bottom-up is more detailed and works best when the details concerning the desired output has been clarified
Example 1 top-down approach
Example 2 Bottom-up approach
the integrated cost elimination approach has 3 major components
1 Work break down structure (WBS)
2 Cost and revenue structure
3 Estimating techniques
Work breakdown structure (WBS)
Work breakdown structure list of steps
Work Breakdown structure
- contains a list of activities for a project derived from
- WBS helps in
WBS Formats
WBS Activity levels
WBS how much detail do you need
other characteristics of WBS
Creating a WBS
Example of a phase-based approach
example of a product-based approach
example of a function-based approach
Example of a WBS construction Project
Categories of costs and revenues that are typically needed in engineering economics
Estimating techniques
the level of detail and accuracy of estimates depends on
indexes formula
