This article focuses on the products defined by dimensions and tolerances, made from solid materials, and fabricated by some manufacturing process. It describes three methods of cost estimations: parametric methods, empirical methods, and the complexity theory. The article presents an example to illustrate the parametric cost estimation of aircraft. An example to illustrate the cost estimation of sheet metal and riveted parts is also provided.
This article focuses on products defined by dimensions and tolerances and fabricated by some manufacturing process. It describes the general concepts associated with cost estimation. These include domain limitation, database commonality, cost allocation, and elements of cost. The article discusses the three methods of cost estimation, namely, parametric methods, empirical methods, and complexity theory. Examples of the methods of cost estimation are presented. The article concludes with a discussion on recommendations for cost estimation.