Cost Estimating

Manufacturing Estimates

When estimating a manufacturing build, the first step is to define the indentured part configuration, creating a "proposal BOM". This bill of material is often unique, based on re-usable elements from previous work, including similar-to items with complexity factors

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Create proposal BOMs from a configuration imported from SAP or PLM, and adjust make/buy, producing site and other pricing parameters by part or program phase

Then run a "simulative-MRP" algorithm which converts proposal line item (CLIN, phase or option) demands into lower level part requirements, groups demands based on lot-sizing rules, and creates aggregated production proposals. Convert these proposals into resource utilization estimates using routing standards, learning curve logarithmic calculations and production history

Procurement & Subcontract Estimates

To accurately estimate purchase or sub-contract material costs you must combine the closest matching historical buy, based on recency and quantity price-breaks, with the option to incorporate vendor quotations from major subs and for high value parts

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Twenty5's purchased part estimating module scans your entire purchasing history (POs, LTAs, PIRs, RFQs) to find the best matching source, and automatically initiates vendor RFQs based on a combination of part value and estimating confidence

Travel Estimates

Travel costs can also be estimated by expense category (flights, cars, hotels, per diem) or by trip, covering both international and domestic travel. Or use parametric estimating formula to calculate travel as a fixed % of certain (e.g. on-site) labor

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Integration to US Gov't GSA website is already in development, for automated per diem rates by city

Add Indirect Costs

Automatically calculate indirect costs such as Overhead, Fringe and G&A using overhead rules and rates based on cost element groups, just like SAP's costing sheets. Re-use overhead rates read directly from SAP, or maintain your own inflation adjusted, or proposal-specific, rates and overhead pools

Other Costs

Add other costs such as currency hedging, sales commissions, introduction fees, and so on, to your proposal WBS.  Factor these into your margin or associate other costs with specific risks, distributed over your proposal timeline

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Speaking of currency hedges and vendor management costs, we provide reports of total cost by source currency, country and vendor SBA classification to help you decide what hedges to buy

Factors, CER's and Autocalcs

There is no limit to the scope and number of indirect cost "factors" or cost estimating relationships (CERs) you can apply. For example, in-bound/out-bound freight, shipping & handling and hazardous materials handling - all can be automatically calculated using base parameters and formulae

Base parameters contain business rules for what costs to include, for example "all labor in India", "cost elements A, B & C in 2020" or even all estimates with custom tags filled out in a specific way. Factors & rates can be a fixed %, varying by fiscal year, or formula based