The Framework -- Cost Estimating: Definition -- Cost Measurement -- Overview of Cost Estimating -- "Elementary" Cost Estimating -- An Introduction to Parametrics for the Beginner -- Preparing the Data -- Data Collection and Checking -- Economics -- The Cost Improvement Curves -- Plant Capacity and Load -- Other Normalizations -- About General Models -- Definition of a General Model: Example -- Building a General Model -- New Concepts in General Modelization for Hardware -- Modelization in Other Classes -- A Word About the Future -- Using Models: Parametric Models Within a Business -- Using a Specific Model -- Using a General Model -- to "Risk" Analysis -- Auditing Parametrics.

Parametric cost estimating, when properly used, is a very powerful and cost effective technique. Unfortunately, this technique is often misunderstood and rejected by many potential users for whom it could be a beneficial tool. The development of an agreement on how to use it and how to recognise its limitations is a major benefit to the cost estimating community. From Product Description to Cost: A Practical Approach: • presents different ways of parametrically forecasting costs, and the advantages and disadvantages of these methods by using real examples from the mechanical, software and building industries; • discusses most of the mathematical procedures which are useful for parametrically forecasting costs; and, • introduces the judgement needed to audit the ways in which these forecasting techniques are used, firstly as a process, and secondly as a tool to generate estimates. Volume 1: The Parametric Approach contains four parts. Over the course of this volume, cost estimating is introduced; the preparation of data before utilization is discussed; the basic concepts of 'general' cost estimating models are examined; the use of cost models is considered and finally, risk analysis (as it can be used during parametric cost estimating) is introduced. The Decision Engineering series focuses on the foundations and applications of tools and techniques related to decision engineering, and identifies their relevance in 'engineering' decisions. The series provides an aid to practising professionals and applied researchers in the development of tools for informed operational and business decision making, within industry, by utilising distributed organisational knowledge.