System for improving the accuracy of cost estimates

Abstract

For improving and controlling cost-estimation performance, one systematically collects the percentage discrepancies (%Ds) of cost estimates with respect to each process handled by each estimator. The means and the standard deviations of these are recognized to be convenient quantitative indicators of performance, and are used to guide and to monitor the estimators' efforts in improving their estimating skills. These quantitative indicators also enable the management to identify the most suitable personnel for preparing the cost estimates of critical job orders.