Cost Elimination Techniques Flashcards
(37 cards)
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
The integrated cost elimination cost has three major components
- Work breakdown structure
- Cost and revenue structure
- Estimating techniques
Categories of costs and revenues that are typically needed in engineering economics
Estimating techniques
the level of detail and accuracy of estimates depends on
the models can be used in many types of estimates
1 index’s
2 unit technique
3-factor technique
indexes formula
indexing cost of a boiler example
