• Korean Journal of Computational Design and Engineering
• /
• v.8 no.2
• /
• pp.101-108
• /
• 2003

Presented in this paper is the development of an product cost estimation system at the product design stage. The efficient cost estimation function at the design stage is essential for the cost reduction activities through the entire product life cycle. For this purpose, it is necessary to establish a systematic working procedure, and to develop information system for managing a great deal of production and product-related data required for the cost estimation. The developed system has the capability of estimating a cost of assembly type products as well as unit-item type products. As proposed system is based on the variant approach, it can be used easily at an early design stage without the need for detail design information. Also, this system is integrated with legacy PDM (Product Data Management) and ERP (Enterprise Resource Planning) system for fast. accurate and easy product cost estimation. The estimated cost includes material cost, overhead cost as well as labor cost.

• Journal of Korean Society for Quality Management
• /
• v.52 no.2
• /
• pp.275-286
• /
• 2024

Purpose: The spare part cost is one of the most important cost factors with which construct Life Cycle Cost. The LCSP(Life Cycle Sustainment Plan) Guidebook issued by Korea Ministry of Defense, however, suggests a simple equation to estimate the spare part cost using maintenance task frequencies and each part cost. Therefore, following the cost estimation method in the LCSP Guidebook may lead to an improper cost estimation result since both the hierarchical structure of the weapon system and the part discard rate are not considered. The purpose of this study is to develop a new life cycle cost estimation method for spare parts of weapon system during its life cycle. Methods: In this study, the detailed cost structure of spare parts is provided. Also a new spare part cost estimation methods for the each cost element are proposed, considering the hierarchical structure of weapon system and the part discard rate. And the proposed spare cost estimation methods are applied to K system for a case study. Results: Based on the case study of K system, the spare part cost estimation method, proposed by this study, shows that it can complement the estimation method suggested by the LCSP Guidebook. It also shows that it is applicable to the weapon systems for Korea armed forces. Conclusion: The proposed life cycle cost estimation method for spare parts has an advantage of estimating the spare part cost more accurately. It is expected to be useful in analyzing the procurement alternatives objectively and making up the Korea armed forces budget effectively.

• Journal of Korean Institute of Industrial Engineers
• /
• v.15 no.2
• /
• pp.77-86
• /
• 1989

A fully automated cost estimation system(FACES) has been developed. Since speed, accuracy, and consistency are essential factors in automating a cost estimation, the use of computers in cost estimation system(CES) has grown rapidly in the last few years. FACES is a micro computer based cost estimation system that employs a manufacturing knowledge base. A Group Technology(GT) based part classification and coding(C&C) scheme is used to automate the process planning aspects of cost estimation. Variant process planning methods are employed to generate workstation routings from form features of the part. The system has been tested for an assembly of six machined parts. Results indicate that the system could provide a substantial improvement in accuracy, productivity, and performance over the more traditional full dialog approach to cost estimation. It also provides a good foundation for a factory automation by using a common GT based database through design to production.

• Plant Journal
• /
• v.8 no.1
• /
• pp.50-59
• /
• 2012

The current dual-watchdog estimation system has individually calculated the construction, the engineering and the procurement cost. The dual-watchdog estimation system is inefficient and prolonged estimation period because of the lack of the interoperability and the difference of material unit cost and construction unit cost. In order to resolve this problem, new estimation software was developed. The estimation software is developed by making up for the weak points in existing estimation method. The cost data with the same standard is the key point. And this software enhanced accuracy and speed of the data search in stylized estimation standard. A summary of the construction, the engineering and the procurement cost was generated in this estimation software. The unit rate about the labor cost, equipment and expense through a sheet was handled. The developed estimation software has five categories on engineering cost, procurement cost, construction cost and subcontractor management sheet. In this study, the estimation software to supplement the faults of the existing estimation method was developed. And estimation software on petrochemical projects increases an efficiency of the estimation work.

• Proceedings of the KIEE Conference
• /
• 2008.07a
• /
• pp.2092-2093
• /
• 2008

Since Jan. 2004, the Ministry of Construction and Transportation has partly introduced estimation system of historical cost data in order to reflect result cost of construction market to cost estimation for public construction. And KEPCO started estimation system of historical cost data in the electrical construction works. Electrical construction cost index a matter of great importance. This paper was conducted to examine estimation methods of the items of the price index estimation system of historical cost data and suggest reasonable applications.

• Proceedings of the KIEE Conference
• /
• 2009.07a
• /
• pp.2129_2131
• /
• 2009

Since Jan. 2004, the Ministry of Construction and Transportation has partly introduced estimation system of historical cost data in order to reflect result cost of construction market to cost estimation for public construction. It is expected that the purpose of the introduction would be evaluated considering the long-term development of domestic construction industry. In article 3, paragraph 4 of the planning criteria of estimated cost of financial regulation related to government contract rule, the profit estimated by historical cost data indicates sales profit and it is calculated by multiplying the sum of direct cost, indirect cost and general overhead by rate of profit. Finally, it is said that rate of profit cannot exceeds 10%. However, there are a lot of constructions for electronic equipment in the electronic construction and the proportion of government furnished material is very high, not like engineering works or constructions. Therefore, as the proportion of material cost over direct cost is relatively lower, if current rate of profit (10%) is applied, there would be a wide difference of cost in the items of profit under the estimation system of historical cost data. This paper was conducted to examine estimation methods of the items of profit under the estimation system of historical cost data and suggest reasonable applications.

• Proceedings of the KIEE Conference
• /
• 2007.04b
• /
• pp.155-159
• /
• 2007

Since Jan. 2004, the Ministry of Construction and Transportation has partly introduced estimation system of historical cost data in order to reflect result cost of construction market to cost estimation for public construction. It is expected that the purpose of the introduction would be evaluated considering the long-term development of domestic construction industry. In article 3, paragraph 4 of the planning criteria of estimated cost of financial regulation related to government contract rule, the profit estimated by historical cost data indicates sales profit and it is calculated by multiplying the sum of direct cost, indirect cost and general overhead by rate of profit. Finally, it is said that rate of profit cannot exceeds 10%. However, there are a lot of constructions for electronic equipment in the electronic construction and the proportion of government furnished material is very high, not like engineering works or constructions. Therefore, as the proportion of material cost over direct cost is relatively lower if current rate of exceeds (10%) is applied, there would be a wide difference of cost in the items of profit under the estimation system of historical cost data. This paper was conducted to examine estimation methods of the items of profit under the estimation system of historical cost data and suggest reasonable applications.

• The Transactions of the Korea Information Processing Society
• /
• v.7 no.6
• /
• pp.1810-1817
• /
• 2000

The purpose of this research is to develop an estimation model for information systems operating costs. Current cost estimation practices and types of sytem management projects have been reviewed an analyses. Typical operating project types of information systems are determined. They are application system operation, help disk operation, network management and operation, and hardware management. For each type of projects, cost factors ar identified and a structure of cost estimation model is defined. Cost estimation models have been constructed and tested by 24 real operation projects data. Statistical analysis shows derived models are statistically significant. User groups' opinion on these draft cost estimation model has been surveyed and summarized. The results of this research can be used as a cornerstone for future research on operating cost estimation, and for cost estimation guideline of information systems operation projects.

• Journal of Information Technology Applications and Management
• /
• v.10 no.3
• /
• pp.75-92
• /
• 2003

In order to investigate IS(Information Systems) outsourcing cost estimation model preference of firms, this study reviews previous literatures on outsourcing and firm characteristics. The relationships between firm characteristics and IS outsourcing cost estimation model preference are analysed. Four major factors of firms characteristics are found and classified. IS outsourcing cost estimation model with SLA are found to have a strong relationship with organizational culture. Future research will be needed to verify the result of this exploratory study.

• Journal of the Korea Institute of Building Construction
• /
• v.4 no.4
• /
• pp.117-126
• /
• 2004

Construction industry is faced with the problems such as the quickly changeable circumstance and increasing construction companies due to regulation mollification of company registration. In order to overcome these problems, new estimation system based on historical estimation cost is ready to introduce by government step by step. But the time of transition for estimation system causes another problems such as chaos addition to simultaneity of a standard of estimation system and new estimation system, lack of related regulation, accumulation of historical extensive cost data, and adjustment methodology when historical estimation data is applied to next projects. The purpose of this study is to suggest the change factors by activities for estimating historical cost for apartment housing projects. New estimation system is based on historical construction data. For application of this system, the standard adjustment methodology system is necessary. and extensive cost data should be accumulated under an unified construction work classification system. Therefore in this study, according to the construction work classification system, every apartment housing project was classified to 16 work classifications, and 7 major composed items which occupy more than 85% of construction costs are analyzed by detailed activities and by average ratio and maximum ratio each of them. In the result of the study, furniture work, foundation work and masonry work are the works which have big gap of costs between average ration and maximum ratio. In addition to suggestion of change factor by work species, 5 qualified construction specialists are interviewed and change factors in 7 major works are analyzed.