Engineering Cost Estimation

Introduction:

This cost estimation engineering course strives to clearly communicate basic principles, practices, and procedures by introducing the right documents in a logical yet simplified manner. It explains why there is a need for estimates, and what problems can arise when accuracy is not achieved, which are sometimes vital for the success of a project. Emphasizing concepts and ideas rather than complex formulas and statistics, the course is designed to address both an overview and each interaction in the process of estimating costs.

Targeting Engineering Cost Analysts, Estimators, Engineers, Business Analysts, as well as other related professionals, the training empowers participants with practical approaches to management, labor-time, material, and parametric cost estimation. Using the specific systematic method proposed, learners will be able to interpret the correlation between the resources used and the work done, with a greater focus on the cost of labor, making more valuable contributions to their firms.

Objectives:

Participants completing this cost estimation engineering course shall be able to:

• State-of-the-art estimation of costs through the use of engineering cost and estimation techniques.
• Undertake cost-effective engineering projects to enhance value for money through engineering cost estimating techniques.
• Make appropriate estimates for costs incurred in an undertaking.
• Manage, prepare, and control costs, budgets, plans, and estimates.
• Understand the intricacies involved in project designs.

Training Methodology:

• Interactive lectures
• Case study analysis
• Hands-on exercises
• Group discussions
• Project real-time recreation
• Q&A
• Software Brown Bag Sessions

Course Outline:

Unit 1: The Imperative of Cost Estimating:

• Understand the importance of estimation in a world with limited resources.
• Increased productivity as a strategic response.
• Establish productivity with the profit argument.
• The "safety net" aspect of cost estimation and the organizational "good name."
• Understand cost estimating procedures in detail.
• Directions of internal basic estimating processes.

Unit 2: Fundamentals of Cost Estimating:

• Differentiate four work output types.
• Clarify what is meant by the engineering method of estimating costs.
• Distinction between cost and price.
• The ingredients and tools for estimating.
• The corporate issue: The estimating engineer.
• Eviscerate an estimate anatomy.
• Provide discussion on cost types.
• Gather the components needed for a correct estimate.

Unit 3: Defining The Work Scope:

• Initial questions in the estimation process.
• Structured estimating:
  • Work Breakdown Structure (WBS).
  • The hierarchy in WBS.
  • Functional aspects within WBS.
  • Building blocks of the WBS.
  • Assimilate normal and abnormal processes.
  • Dependencies within WBS parts.
• Clarify the Estimate Ingredients.
• Recognize prospective parts in order to be cost-effective.

Unit 4: Tools Required For Estimating:

• Four important factors for unique assessments.
• Collection of information before any step of estimation is taken.
• Strategies used in estimate development.
• How information technology improves cost estimation.
• Determine time estimates to gain optimum results.
• Determine major competencies for cost estimators.

Unit 5: Developing the Schedule, Estimate Elements, and Guidelines:

• Understand the significance of time in cost-oriented output.
• Coordinate the provision of goods and services with need timelines.
• Prepare a full schedule.
• Methods of scheduling and planning.
• Phasing skills in multi-output organizations.
• Control issues resulting from long-deadline materials.
• Timelines for the development and production of products.
• Provide estimation for time elements.
• Write proposals.
• Provide necessary conditions.
• Conditions for Estimation.

Unit 6: Estimating Direct Material Costs and Labor Hours:

• Estimate Basic Engineering Material Costs.
• Estimating Engineering Activities.
• Engineering for manufacturing/production.
• Degrees of estimating manufacturing/production, assembly, and construction activity.
• Manufacturing Activities.
• Engineering construction activities.
• Inspections during the process.
• Estimating computer software costs.
• Labor Allowance.
• Estimating supervision, direct management, and other direct costs.
• Estimating usage of factors.

Unit 7: Estimating Labor Rates, Indirect Costs, and Administrative Expenses:

• Assessing correct labor rates for cost and estimation engineer roles.
• Source of labor rate information.
• Range of indirect cost headings.
• Integrity costs to be removed.
• General and administrative expenses should be dealt with comprehensively.
• Managing bid and proposal costs, as well as self-initiated research and development costs.