W6 Benchmark Of Cost Estimate Process refer to US Government Accountability Office/GAO

1.Problem Definition

Referring to the suggestion given by Dr. Paul on previous blog posting, at this occasion a process of estimation will be made using US Government Accountability Office/GAO references against on current process on author company.

2.Identify The Possible Alternative

On this occasion a checklist of estimation stages will be performed at the company following the estimation phases that have been prepared by US Government Accountability Office/GAO and find strengths and weaknesses at each stage of the process.

3.Development of the Outcome for Alternative 

GAO Cost Estimating and Assessment Guide suggest 12 step of estimating process as shown on following figure-1,these 12 steps shown on above figure could be categorized into 4 main process,  these main process are Initiation and Research, Assessment, Analysis and Presentation :

Figure-1 : GAO Step Process

4.Selection Criteria

We will perform a checklist of each stage proposed by GAO approach in the estimation process. If it finds some difference and has the potential to improve and improve the procedure of the feeding estimation process it will greatly help improve the quality of the project estimation process.

5.Analysis and Comparison of Alternative

Based on check list assessment, below are the summary shown on Tabel-1

Table-1 : GAO Step Process Checklist on Author Current Estimate Process

Based on the stages of the approach made by the GAO can be seen that not all steps are done by the company, where from 12 steps there are 4 stages that are not implemented, namely Develop point estimate and compare it to an independent cost estimate, Conduct sensitivity analysis, Conduct risk and uncertainty analysis, Update the estimate to reflect actual costs and changes and 2 stages that sometimes implemented sometimes not is Define program characteristics and Document the estimate. Regarding to our previous blog posting on week-5 using  Humphrey Associations and related to GAO estimate process check list, we still founding a same thing that a estimate process not use a best practice guidelines such as GAO, and it can effect to project running behind schedule and over budget. An Unique founding on step-12 purposed by GAO “Update the estimate to reflect actual costs and changes” it will be helpful for us to get more lesson learn in future on estimate process, because it can controlling us on estimate.

6.Selection of the Preferred Alternative

Based on above assessment and analysis, company must consider unimplemented step as per a best practice guidelines such as GAO and or Humphreys, and a possible mixed step between GAO and Humphreys.

7.Performance Monitoring and The Post Evaluation of Result

Management should consider the use a best practice estimate process because it could help project running well and on budget.

 

REFERENCES :

  1. Ardiansyah (2017), W5_A_Benchmark Of Cost Estimate Process refer to Humphreys Association. Retrieved from : http://emeraldaace2017.com/2017/09/03/w5_a_benchmark-of-cost-estimate-process-refer-to-humphreys-association/
  2. United State Government Accountability Office (GAO) (2009), Cost Estimating and Assessment Guide, Chapter 1, pp.8-14
  3. Yushadi, Edi (2015), W9_EY_Estimating Process Benchmark. Retrieved from https://garudaaace2015.wordpress.com/2015/04/23/w9_ey_estimating-process-benchmark/
  4. Permana, Arif (2013), W16_APE_Comparison Cost Estimate Process, Retrieved From:  https://simatupangaace2014.wordpress.com/2013/11/12/w16_ape_comparison-cost-estimate-process/
 

2 thoughts on “W6 Benchmark Of Cost Estimate Process refer to US Government Accountability Office/GAO”

  1. Another outstanding posting, Pak Ardi……. The only weakness was in Step 7. IF management was to accept your recommendations and make changes to their estimating process (which they honestly should consider doing!!!) then how would you know that your recommended interventions had succeeded or not?

    IF this topic is important to you (and it should be as I know for a fact that your estimating system is not working very well) then for another blog posting, why not use the GAO checklist and then set up a PARETO ANALYSIS against which you could do a “Before” and “After” comparison? https://www.projectsmart.co.uk/pareto-analysis-step-by-step.php. That would address Step 7 very nicely.

    You are doing such a great job on your blog postings, is there any way you can help Pak Fakhri out please? I would appreciate that and I am sure he would as well….

    BR,
    Dr. PDG, Jakarta

     

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