L7 - A Cost Model for Hardware

Question 1

Understand the factors of weight and complexity in creating cost-estimating relationships

Answer 1

• Weight is a cost driver, but not absolutely – there is also cost density
o Manufacturing complexity – operating specs, # of parts, maturity, precision, machinability
o Different sensitivity against different complexity drivers
• Space begins at 2.0 and shows a huge jump b/c of huge documentation needs
o A function of technology and productivity

Question 2

Understand the price systems estimation approach

Answer 2

• Parameters – describe size and scale of product, the project in which it is pursued, as well as the organization and economic environment
• See “onion” image in previous lecture
o Primary CERs – weight, manufacturing complexity
o Secondary CERs – operating specs, engineering complexity (personnel skill level), design repetition, prototype support, tech improvement, learning, schedule adjustment
o Final adjustment relationships – inflation, labour rates, overhead, admin costs, fee/profit
• Obtain complexity factor from tables/databases, the models generators, calibration

Question 3

Understand the drivers of development engineering cost

Answer 3

• Usually very large in space
• Operating specification has strong impact on cost
• Engineering complexity – measure of personnel’s skill level

Question 4

Understand the drivers of production manufacturing cost

Answer 4

• Learning has a + impact on cost, while schedule adjustment has a – impact on cost
• Only piece cost – cost to manufacture only one piece, all manufacturing cost calculations based on this, based on weight and complexity
• Theoretical number one cost – cost to manufacture the first unit of a production batch