MIT tool aids cost estimates for complex projects

Cambridge, MA: Consider the following scenario: A project manager at an aerospace company is about to bid on the development of a new air fighter for the U.S. Air Force. The bid must bring the project in on time, on budget and meet all the government's requirements. If the bid is too low, the project will miss these markers; too high and the company will be seen as wasteful or inefficient and may disqualify itself from the competition.

Now a new, first-of-its-kind systems engineering cost-estimation model developed by an MIT researcher can ensure that the bid is right on target.

The model allows companies and organizations to develop more accurate bid proposals, thereby eliminating excess "cost overrun" padding that is often built into these proposals. The Constructive Systems Engineering Cost Model (COSYSMO), now available commercially, was developed by Ricardo Valerdi, a researcher at MIT's Lean Aerospace Initiative.

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