Chapter 9 - Manufacturing Cost Estimating

Defense Manufacturing Management Guide for Program Managers
Chapter 9 - Manufacturing Cost Estimating

9.1 Objective

9.2 Background

9.3 Introduction

9.4 Nature of Manufacturing Costs
     9.4.1 Fixed Cost
     9.4.2 Variable Cost
     9.4.3 Direct Cost
     9.4.4 Indirect Cost
     9.4.5 Nonrecurring Cost
     9.4.6 Recurring Cost
     9.4.7 Other Cost

9.5 Cost Accounting
     9.5.1 Uniformity in Cost Accounting Systems
     9.5.2 Cost Accounting Systems
     9.5.3 Historical Cost Systems
     9.5.4 Predetermined Cost Systems

9.6 Importance of Cost Estimating

9.7 Estimating Methodologies
     9.7.1 Analogy
     9.7.2 Parametric (Statistical)
     9.7.3 Engineering (Bottoms-Up)
     9.7.4 Actuals
     9.7.5 Estimating Considerations

9.8 The Learning Curve
     9.8.1 Concept
     9.8.2 Components of Improvement
     9.8.3 Characteristics of Learning Environment
     9.8.4 Key Words Associated With Learning Curves
     9.8.5 Learning Curve Theories
     9.8.6 Developing Slope Measures
     9.8.7 Selection of Learning Curves
     9.8.8 Production Breaks

9.9 Manufacturing Rate and Quantity Cost Relationship

9.10 Other Cost
     9.10.1 Design to Cost
     9.10.2 Will Cost
     9.10.3 Should Cost
     9.10.4 Activity Based Cost (ABC) Accounting
     9.10.5 Earned Value Management
     9.10.6 Work Measurement

9.11 Some Interesting Points

9.12 Summary

9.13 Related Links and Resources 

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