Cost estimating system using parametric estimating and providing a split of labor and material costs

• US 5,793,632 A
• Filed: 03/26/1996
• Issued: 08/11/1998
• Est. Priority Date: 03/26/1996
• Status: Expired due to Fees

• Current Assignee: Lockheed Martin Corporation (Martin Marietta Corporation)
• Original Assignee: Lockheed Martin Corporation (Martin Marietta Corporation)
• Inventors: DeMarco, Anthony, Walter, James, Fad, Bruce, King, Earl, Geiser, Todd, Chackman, Ben, Summers, Roy
• Primary Examiner(s): Cosimano, Edward R.
• Application Number:
  US08/624,717
• Time in Patent Office: 868 Days
• Field of Search: 364/400, 364/464.01, 364/464.1, 364/468.03, 395/201, 395/229
• US Class Current: 705/400
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

A parametric cost estimating model, which can be software-based, provides a capability for inputting specific labor rates and burdening or overhead information for a given installation. Other inputs are project-specific depending on whether a hardware or a software system is being estimated. The process and model provide estimating information as to costs to develop and produce specific hardware or software systems and also provide a split as to labor and material costs for such systems.

Claims

1. An estimating system for providing a user estimates of labor costs and material costs needed to implement a predetermined, unbuilt project in the absence of information of a type needed to create bills of materials, the method comprising:

storage means;

means for entering at least one unit labor cost value, at least one overhead parameter value and at least one material cost parameter value and for writing said entered values into said storage means;

means, coupled to said storage means, for processing said entered values and for providing total estimated cost as well as separate percentage estimates of project labor and material.

2. A system as in claim 1 wherein at least said means for entering includes a keyboard.

3. A system as in claim 1 wherein said processing means includes a digital processor and wherein said storage means includes a parametric cost estimating engine stored in the form of executable instructions.

4. A system as in claim 1 which includes a display and means for presenting on said display said separate estimated percentages of project labor and material.

5. A system as in claim 1 which includes further means for combining said percentage estimate of material with a local labor cost rate so as to produce an estimated updated labor cost.

6. A system as in claim 5 which includes means for establishing a material cost.

7. A method of cost estimating comprising:

providing a selected set of parameter values exclusive of a bill of materials or labor hour estimates;

providing a parametric-type cost estimating engine;

providing a total output cost using the engine;

providing a software element for establishing a breakout of labor and material costs wherein the element, using the total cost information establishes at least one material percent parameter and at least one labor percent parameter.

8. A method as in claim 7 which includes converting the percent of material parameter to a currency based material cost.

9. A method as in claim 8 which includes converting the percent of material to a currency based labor cost.

10. A method as in claim 9 which includes providing a selected labor rate and determining a corresponding labor cost.

11. A method as in claim 10 which includes determining project management direct costs.

12. A method as in claim 10 which includes entering actual unit labor costs and making an updated labor cost determination based thereon.

13. A cost estimating apparatus comprising:

a parametric cost estimating element;

an input device coupled to said element; and

means for producing a material and a labor breakout in response to an estimated total project cost from the element in the absence of labor hour estimates.

14. An apparatus as in claim 13 wherein said element includes a software based cost estimating engine.

15. An apparatus as in claim 13 which includes a programmable processor coupled to said input device.

16. An apparatus as in claim 13 which includes means for storing entered, actual labor rates and for storing default labor rates.

17. An apparatus as in claim 13 wherein said producing means includes software for establishing a percent of material as an output.

18. An apparatus as in claim 17 wherein said software provides a cost of material as an output.

19. An apparatus as in claim 18 wherein said software provides a percent of labor as an output.

20. An apparatus as in claim 19 wherein said software provides a cost of labor as an output.

21. A method of estimating labor and material costs for a new project without using either bill of material-type information or estimated hours of labor, the method comprising:

providing project input information, including operating environment, manufacturing complexity, production quantity parameters exclusive of bill of material-type information and labor hour estimates,

carrying out a parametric cost estimating project to estimate product cost;

establishing a material percent parameter for the project using project cost estimates and the input information;

establishing a labor percent parameter for the project using the estimated cost information and the material percent parameter.

22. A method as in claim 21 wherein the value of the material percent parameter is reduced by an increasing value of the operating environment parameter.

23. An apparatus for estimating labor and material costs for a project in the absence of detailed manufacturing-type information comprising:

circuitry for storing project specifying parameters including type of environment, manufacturing complexity, labor rates and overhead expense;

a first processing element coupled to the storing circuitry for generating a total cost estimate for the project in response to the stored parameters;

a further processing element, coupled to the storing circuitry, for generating a percent of labor parameter in response to at least the environmental parameter and the total cost estimate.

24. A control element for estimating labor costs for a selected project based on parametric information and in the absence of total labor hour estimates, the element comprising:

a first plurality of commands for enabling a user to enter at least an environmental specification parameter and a labor rate parameter;

pre-established relationship information defining a relationship between percent of total cost of the project associated with project material as a function, at least in part, of the entered environmental parameter;

a second plurality of commands coupled to the first plurality and the relationship information for forming an estimate of total project cost using entered project parameters in the absence of project labor hour estimates;

a third plurality of commands, coupled to the second plurality for determining a percent of total cost for material for the project in response to at least total cost and the relationship information; and

a fourth plurality of commands for establishing a percent of total cost for labor for the project in response to at least the percent of material cost.

25. An element as in claim 24 wherein the pluralities of commands and the relationship information can be stored on a movable medium.

26. An element as in claim 24 which includes additional commands for estimating total labor hours as a function of the estimated total cost, the labor rate parameter and the percent of labor cost for the project.

27. An element as in claim 26 which includes further commands enabling a user to adjust the labor rate parameter and to generate updated estimated total cost and total labor hours in response thereto.