• Title/Summary/Keyword: Cost Estimating Relationship(CER)

Search Result 4, Processing Time 0.017 seconds

A Cost Estimation Development Methodology via CER's Linear Combination (CER 선형결합을 통한 비용추정 모델 개발)

  • Jung, Won-Il;Lee, Yong-Bok;Kim, Dong-Kyu;Kan, Sung-Jin
    • IE interfaces
    • /
    • v.25 no.3
    • /
    • pp.347-356
    • /
    • 2012
  • The acquisition cost of defense weapon system has been continuously increasing because of art-of-technology of it. This phenomenon requires efficiency and transparency in the weapon system acquisition process through cost estimation. Therefore cost estimation is very important to the government acquisition programs to support decisions about funding and to evaluate resource requirement as a key decision point. The Commercial parametric cost estimating models have been using extensively to obtain appropriate cost estimates in early acquisition phase. These models have many restrictions to ensure the cost estimating result in Korean defense environment because they are developed based on foreign R&D data. Also estimation results are different from Korean defense industry accounting system. So, some studies have been tried to develop a CER (Cost Estimation Relationship) based on the Korean historical data. However, there are some restrictions to improve the predictability and ensure the stability of the developed singular CERs which consider the following data characteristics individually. The the abnormal conditions of data that is multicollinearity, outlier and heteroscedasticity under rack of the number of observations. In this paper, a CER's Linear Combining Model is proposed to overcome those limitations which guarantee more accurate estimation (25.42% higher precision) than other singular CERs. At least, this study is meaningful as a first attempt to improve the predictability of CER with insufficient data. The methodology suggested in this study will be useful to develop a complex Korean version cost estimating model development in future.

A Study on Developing the Acquisition Unit Cost Estimating Model of the Guided Weapon System (유도무기 획득단가 추정 모델 개발에 관한 연구)

  • Kim, Yonghyun;Lee, Yongbok;Jung, Wonil;Kim, Dongkyu;Kang, Sungjin
    • Journal of the Korea Institute of Military Science and Technology
    • /
    • v.15 no.5
    • /
    • pp.565-576
    • /
    • 2012
  • Cost estimates are necessary for government acquisition program to support decisions about funding, to develop annual budget requests and to validate resource requirements at key decision points. Many researches have been done about cost estimating technique recently. Parametric cost estimating models based on CERs(Cost Estimating Relationships) have been mainly used using regression method with historical data. However, there are many restrictions in developing Korean version CERs because the number of data points are too small. Specially, data collection and data management system are unstable in Korean defense environment, when developing CERs. In this research, we analyzed the historical data, and found some cost drivers in guided weapon system area. We developed the Acquisition Unit Cost CER using the regression to remove multicollinearity in the historical data. So we could overcome the restriction of the insufficient sample number. This research as a first attempt is meaningful in terms of obtaining our own Acquisition Unit Cost CER using historical cost and physical characteristic in Korean development environment.

A Study On Developing Weapon System CERs With Considering Various Data Characteristics (다양한 데이터 특성을 고려한 무기체계 비용추정관계식 개발 연구)

  • Jung, Won-Il;Kim, Dong-Kyu;Kang, Sung-Jin
    • Journal of the military operations research society of Korea
    • /
    • v.36 no.3
    • /
    • pp.43-56
    • /
    • 2010
  • Recently, the acquisition environment of the Korean defense weapon system is emphasizing more the importance of cost analysis in terms of efficient execution for defense acquisition budget. While cost analysis, however, is emphasized in law and process, its infrastructures are still insufficient We have been using computerized cost models to obtain an estimate at early phase of project. But those models have been developed by foreign companies, and so they have many limitations when using in Korean defense environment. For this reason, it began to sympathize that we need the development of the Korean version cost estimation model suitable for our defense industry environment, and now many studies are proceeding. In this study, we suggest Cost Estimating Relationships(CERs) developing methodologies which is key logics of Korean version cost estimation model. Especially, we proposed a new CER's development process depending upon data characteristics such as, multicolinearity, outlier, small samples and heteroscedasticity. Also, we presented a case study for artillery weapon system using these methods we developed. We find that these CERs could be verified through theoretical methods.

Planned Depot Maintenance Interval Decision for Unmanned Aerial Vehicle through Reliability and Maintainability Based Simulation and Operating & Support Cost Analysis (신뢰도 및 정비도 기반 시뮬레이션과 운영유지 비용분석을 통한 무인항공기의 계획창정비 주기결정)

  • Sang Yeob Lee;Jun Hyun Son
    • Journal of Aerospace System Engineering
    • /
    • v.17 no.5
    • /
    • pp.1-10
    • /
    • 2023
  • This research sought to determine the optimal cycle of Planned Depot Maintenance (PDM) for Unmanned Aerial Vehicle (UAV), and PDM through Reliability and Maintainability-based simulation and Operating and Support (O&S) cost analysis using Reliability and Maintainability analysis results. The effectiveness of the PDM was verified economically, and the optimal PDM interval that balances UAV effective operations and sustaining engineering costs was presented.