EM/SDOE 620 Engineering Cost Management



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Schl f Systems and Enterprises Stevens Institute f Technlgy Castle Pint n Hudsn Hbken, NJ 07030 Syllabus January 2009 EM/SDOE 620 Engineering Cst Management PURPOSE: This memrandum prvides each student the administrative details and guidance necessary t successfully cmplete EM/SDOE 620. TEXT: Systems Life Cycle Csting: Ecnmic Analysis, Estimatin, and Management, Jhn V. Farr, Draft Textbk, Versin 1.0. SOFTWARE: Crystal Ball Simulatin Sftware, Excel COURSE DESCRIPTION: This curse will prvide an understanding f bth the tls and mdels that can be used thrughut the design, develpment, and supprt phases f a system t cnduct trade-ffs between system perfrmance and life-cycle cst (LCC). The students will be expsed t the methds, prcesses, and tls needed t cnduct ecnmic analysis, estimatin, and management frm a life cycle perspective f cmplex systems. The fundamentals f engineering ecnmy and simulatin based csting are presented t supprt ecnmic analysis. Parametric cst estimatin, the COCOMO family f mdels, ff the shelve and pen surce, and bttms up estimating are presented in supprt f ecnmic estimatin. Cst as an Independent Variable, cst f quality, and prject management are all discussed t prvide the students with an understanding f cst management frm a LCC perspective. COURSE OBJECTIVES: This purpse f this curse is t prvide the students with the fllwing capabilities: Objective 1: T apply mdern sftware packages t cnduct analysis f real wrld data. Objective 2: T understand the technical underpinning f engineering ecnmic analysis. Objective 3: The ability t apply the apprpriate analytical techniques t a wide variety f real wrld prblems and data sets. Objective 4: T summarize and present the analysis results in a clear and cherent manner.

Schl f Systems and Enterprises Stevens Institute f Technlgy Castle Pint n Hudsn Hbken, NJ 07030 STUDENT PERFORMANCE ASSESSMENT: Graded Events % f Curse Class Prblem Prtfli 50 Curse Prject 50 Curse Ttal 100 Prject and Hmewrks Prject and hmewrks are scheduled fr submissin n the dates shwn n the "Lessn Schedule." Fr SDOE classes they are due 10 weeks frm the day f the last class. Prir apprval must be received fr late submissins. Regrading If yu wuld like t submit a hmewrk assignment, exam, r prject fr regrading, please d nt write anything n yur paper befre yu resubmit it. Instead, simply attach a sheet f paper listing the prblem numbers yu wuld like t be regarded and what yur issues are with the grading. Yu must submit yur cncerns in writing in rder fr a prblem r prject t be regraded. GRADING AND CRITERIA FOR PASSING: (1) Turn in all written material (see Lessn Schedule). (2) Final grades will be awarded in accrdance with the fllwing scale: Grade Percentage A 93-100 A- 90-93 B+ 87-90 B 83-87 B- 80-83 C+ 77-80 C 73-77 C- 70-73 F <70

Schl f Systems and Enterprises Stevens Institute f Technlgy Castle Pint n Hudsn Hbken, NJ 07030 ADDITIONAL INSTRUCTION (AI): If yu feel yu need a tutr r are having truble with the curse, please get in tuch with me. In additin, feel free t cme and talk with me abut any prblems yu might have with this curse. Attachment A - Lessn Schedule Jhn V. Farr, PhD., P.E. Prfessr and Assciate Dean f Academics Schl f Systems and Enterprises

Schl f Systems and Enterprises Stevens Institute f Technlgy Castle Pint n Hudsn Hbken, NJ 07030 Attachment A Lessn Schedule fr EM 620 Engineering Cst Management Tpic Day 1 Overview f Class and Team Prject Review Operatinal Effectiveness Discussin and place in cntext SE Prcess and Csting Engineering Cst Estimatin Clrs f Mney/Csting: Acquisitin, Prcurement, Systems Life Cycle Cst Estimatin (SLCC), Design/Develpment, TOC Clrs f Mney, Varius names, and need t understand as the SE what can pay fr what Cst Estimatin JSF Case Study Cst Analysis Review f Engineering Ecnmics I Chice Amng Alternatives Cash Flws Time Value f Mney Equivalence Ecnmic Wrth Review f Engineering Ecnmics II Review Figures f Merit Lease Versus Buy Sme Case Studies Day 2 LCC What is LCC Fur Ways f LCC Analgy Parametric Engineering Cst Methds Cst Accunting Simulatin Based Csting I Intrductin t Simulatin Based Acquisitin Simulatin Overview Prcess Generatrs Reading/Assignments Lecture 0 Class Slides Chapter 1 f LCC Text Lecture 1 - Class Slides Chapter 2 f LCC Text Prtfli Prblems 1 and 2 Lecture 2 - Class Slides Chapter 3 f LCC Text Lecture 3 - Class Slides Chapter 4 f LCC Text Prtfli Prblem 3 Lecture 4 - Class Slides Chapter 5 f LCC Text Lecture 5 - Class Slides Crystal Ball Sftware

Schl f Systems and Enterprises Stevens Institute f Technlgy Castle Pint n Hudsn Hbken, NJ 07030 Simulatin Using Spreadsheets Using Crystal Ball Day 3 Simulatin Based Csting II (cnt) Estimating Systems Engineering Scping and Cst Estimatin I Design t Cst (DTC) Trade Studies Baseline and Standards Management Requirements Make sure that the stakehlders understand the differences and cnsciusly chse frm: Design t Value Design t Cst Design t Affrdability Design t Schedule Design t Perfrmance Day 4 Systems Engineering Scping and Cst Estimatin II WBS Develpment Systems Estimating Techniques Hardware and Sftware COSYSMO/COSYMOR Sftware Sizing Cst Estimatin COCOMO Other tls: Price S/H, Galrath s SEER-SEM, etc. Handling the varius cde types: Develped, reused, mdified, purchased COTS, tailred COTS, pen surce, etc. Parametric Cst Estimating Cst Estimating Relatinships Management Cst as An Independent Variable (CAIV) Definitins Tradeffs Case Study Chapter 5 f LCC Text Lecture 5 - Class Slides Prtfli Prblems 4 and 5 Chapter 6 f LCC Text Lecture 6 - Class Slides Chapter 6 f LCC Text Lecture 6 -Class Slides Chapter 7 f LCC Text Lecture 7 - Class Slides Prtfli Prblem 6 Chapter 8 f LCC Text Lecture 8 - Class Slides Chapter 9 f LCC Text Lecture 9 - Class Slides

Schl f Systems and Enterprises Stevens Institute f Technlgy Castle Pint n Hudsn Hbken, NJ 07030 COTS and Open Surce COTS, GOTS, MOTS Technlgy Refreshment Open System Standards Cst f Sftware Reuse FCS Case Study Day 5 Cst f Quality Prject Management Summary and Curse Review Glbal Ecnmic Perspective The Rle f Engineers in Gvernment The Rle f Engineers in the Private Sectr Summary Graded Requirements Chapter 10 f LCC Text Lecture 10 - Class Slides Chapter 11 f LCC Text Lecture 11 - Class Slides Chapter 12 f LCC Text Lecture 12 - Class Slides Prtfli Prblem 7 Lecture 13 - Class Slides