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Massachusetts Institute of Technology

Cost estimation of functional and physical changes made to complex systems

Abstract

dc:description.abstract

Current cost estimation practices rely on statistically relating physical parameters of a system to historical cost data. Unfortunately, this method is unable to effectively communicate the increasing complexity of system design to cost data. Additionally, current cost estimation techniques have had a historical inability to produce credible and explainable results. It is often considered to be a "black art" with the recurring question: "Where did that number come from?" This thesis systematically links design and cost information together, and demonstrates the utility of that link by estimating the impact of functional and physical design changes on the life-cycle cost and determining key cost drivers. The ability to quickly estimate the cost impact of design changes is important for decision makers and serves as a medium of communication between customers and developers. Credible estimation is gained by intimately linking the axiomatic design framework to the already existing costing unit (or component) domain and providing design traceability. Development cost is predicted by determining the functional requirements (FRs) affected by a change in customer needs or constraints, then by determining the propagation of that change from FRs to design parameters (DPs) to costing units. The list of affected components and the magnitude of the impact on each component is found and then used to determine through a parallel iteration process model how much development labor will be necessary to implement those changes. The labor is directly related to development costs. A formal method to designing operations using axiomatic design is presented in this thesis. Operations exist due to the time-variant combinatorial complexity of FRs.

Degree

thesis:*
Department dc:contributor.department
Massachusetts Institute of Technology. Department of Mechanical Engineering
Grantor dc:publisher
Massachusetts Institute of Technology
Year dc:date.issued
2005

Author and committee

dc:creator, dc:contributor.*
Author dc:creator
  • Jeziorek, Peter Nicholas, 1981-
Advisor dc:contributor.advisor
  • Nam P. Suh.

Subjects

dc:subject × 1

Rights

dc:rights
Statement dc:rights
  • M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.
Language dc:language.iso
eng

Identifiers

dc:identifier.*
Handle dc:identifier.uri
http://hdl.handle.net/1721.1/30313
OAI identifier oai:identifier
oai:dspace.mit.edu:1721.1/30313

Chain of custody

source
Harvested from
MIT
Base URL
dspace.mit.edu/oai/request
Last updated
2026-07-22
Source record
OAI-PMH GetRecord
citation

Jeziorek, Peter Nicholas, 1981-. Cost estimation of functional and physical changes made to complex systems. Massachusetts Institute of Technology, 2005. http://hdl.handle.net/1721.1/30313