Definition and Feature
A Cost Model is a mathematical model that needs parametric equations for estimating the costs of a product. It is typically necessary to get approval to proceed for a business plan or budget or financial planning. Initially, these equations were performed manually but it has become computerized for a long time now. The algorithm processes, depending on the product or project, are sometimes standardized or sometimes proprietary. Also standard spreadsheets are often used for simple models.
Usually, the models work through a way where the inputs of parameters are given of the product or project under query. Then it provides the necessary outputs of requirements that are needed for cost and time. Also some of the models only focus on estimating the project cost. Better attention is always needed for the development of any product or project through the estimation of resources necessary for that very product. There are other models more accurate that provide the cost of equipments needed for a project. Cost modeling practitioners often are known under the name of Cost Estimators, Parametric Analysts etc.
Software Development and
There are a few ways through which one can plan a cost model-
Data gathering is the first and the most important phase for a cost model. One has to collect the particular data relevant for the particular industry and the pricing history as well. The external data and economic indicators are as important as the internal data and this can influence the commodity price.
Data preparation through removing and replacing missing data or standardize the data is the next step once the data is gathered.
Through an accurate Model building and validation technique a prediction can be made on the commodity cost through a time window.
In order to deploy the model built in the previous step and to have a forecast or prediction over the commodity price by manipulating the key variants found in the previous step it is important to make a Dashboard.
Through these steps one can achieve a perfect Cost Modeling scenario.
Rationalize Maintenance Inventories with Analytics: Smarter Onshore and Offshore Warehouse Management for Upstream Oil & Gas Operations
White Paper By: Oniqua Intelligent MRO
Warehouse Inventory management and rationalization helps upstream oil and gas companies keep assets running more productively and safely. Rationalizing maintenance inventory with analytics optimizes warehouse management by optimizing space, resource time, and eliminates the compulsion to overstock. Warehouse Inventory management and rationalization helps upstream oil and gas...
White Paper By: DataLyzer
Failure mode and effect analysis (FMEA/FMECA) is a powerful reliability tool to improve product or process designs early in the manufacturing process. Generating a FMEA can help to build your team and improve your communication, as well as saves considerable cost of future testing and field warranty. It is worth the effort to get the tool implemented in an effective manner. Taking the right...
White Paper By: Concert Technologies
The rapid deployment of multi-technology, multi-service, multi-site field rollouts requires well- defined processes, robust management skills, and a unique understanding of how to get the job done. Today's Technology Rollout Systems are a comprehensive, multi-technology, multi-service, multi-site system designed to meet varying project requirements in an ever-changing...
White Paper By: KINGSTAR
OEMs traditionally used DSP-based hardware, plugged into a PC, for motion control. But new software-based solutions have challenged this approach, claiming equal or better performance at lower cost. How does soft motion really compare to hardware? In this whitepaper, we break it down component-by-component for a down-to-the-dollar cost and performance comparison. Topics covered include:...
White Paper By: CloudCheckr
Planning and understanding the AWS costs and cloud consumption is an essential part of realizing the benefits offered by the AWS Cloud. In this changing IT world, new challenges come along with the latest trends, one of which being the management of AWS costs within a dynamic virtual environment. This can be overcome through the AWS cost management tools as well as methods to have clear...
White Paper By: Intratem
In Mobility Management, Mobility-as-a-Service means total control over devices and user patterns while reducing costs by adopting standards and procedures for effectively managing your wireless service and expenses. Mobility-as-a-Service goes beyond software tools to help you organize your workforce. Mobility management along with Mobility-as-a-Service simplifies mobility rollouts...