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Developing Case‐Based Costs Estimation: A Recursive Approach and Case Study
Author(s) -
Zhu Haifeng
Publication year - 2018
Publication title -
incose international symposium
Language(s) - English
Resource type - Journals
ISSN - 2334-5837
DOI - 10.1002/j.2334-5837.2018.00553.x
Subject(s) - hvac , activity based costing , computer science , cost estimate , leverage (statistics) , industrial engineering , estimation , air conditioning , scratch , reliability engineering , operations research , mathematical optimization , machine learning , systems engineering , engineering , mathematics , mechanical engineering , business , operating system , marketing
Today many complex systems are built starting from certain prior products. Traditional cost estimation methods assuming products are built from scratch and using simple methods such as linear regressions can lead to significant errors. This paper studies the switching costs, the costs of developing a new product that is built based upon a previously developed product. It presents a series of systematic study results including its concept, properties, an estimation method, and operation principles. Our approach is an automated method that is able to minimize manual efforts. It can leverage historical data, acquisition information, existing cost models, commercial costing tools, and Expert Judgments (EJ). An HVAC (Heating, Ventilation, and Air Conditioning) system design example case was used to demonstrate our approach.