ACCURACY COMPARISON OF PRICE AND SEER PARAMETRIC COST ESTIMATING SYSTEMS
7-15-10
The following two tables compare the accuracy of two parametric cost estimating systems marketed by Price Systems and SEER, as described on websites: http://www.pricesystems.com/products/price_trueplanning.asp and http://www.galorath.com/index.php/products/hardware/C4/ respectively. Cost for using each system is available from the suppliers, and is not discussed herein.
Parametric cost estimating is based on cost contributors such as weight, size, schedules, structure content, electrical content, complexity etc., and has been used for years.
The first table below compares the two systems when used by typically trained analysts. The second table compares the systems when used by highly experienced, expert analysts and engineers trained in the system used. The scores for Price Systems TruePlanning are tops in both tables.
Farther below, it is explained how people making significant purchases can use the basic estimating principles, without training, to determine the best value of their purchases.
Price Systems has an excellent on-line University http://university.pricesystems.com/index.jsp for training analysts and others to use the Price cost estimating system. It was used very satisfactorily by a private, Iowalive net worker and a14 year old neighbor boy as well--who wishes to remain anonymous as he pursues a shuttle design for Buzz Aldrin's Roadmap To Mars--a Popular Mechanics exclusive!
The numbers in the tables were derived using Iowalive network's proven, proprietary algorithms and data base, in support of information gained from system users and several other sources. The methods used were equivalent to the methods used to derive the numbers etc. posted on, and linked from website: http://iowalive.net/ Further discussion of Iowalive's derivations methods are presented on that website as well.
It is noteworthy the only serious challenge to any Iowalive derived numbers, to date, was made by Iowa Governor Vilsack, several years ago. He challenged Iowalive's derivation of 19% operating efficiency for his office, claiming it was much higher. However, performance measurement and improvement consultants, he had hired as Governor, agreed with Iowalive's number--and that ended the challenge. The consultants went on to ask Iowalive net workers how the19% number, and others, were derived, to their satisfaction. They also noted Iowalive's routine request for anyone claiming to have better numbers, to provide them for evaluation and comparison. The Governor's consultants did not claim to have better numbers!!
ACCURACY OF PRICE SYSTEMS TRUEPLANNING EXCEEDS SEER--WHEN BOTH TYPICALLY USED
PRICE TRUEPLANNING IS MORE ACCURATE THAN SEER PRODUCTS. Source: Iowalive--A growing network of volunteer citizens and professionals for improving Iowa. 7-12-10 http://iowalive.net/ DESCRIPTION INTEGRITY INDEX LEVEL ON SCALE OF 0 TO 1,000 TOPS, WHERE SIGNIFICANT INTEGRITY STARTS AT 300 AVG. NUMBER OF TIMES OF CORRELATION WITH ACTUALS % AVG. DEVIATION FROM ACTUALS % PRICE RESEARCH 805 NA NA PRICE TRUEPLANNING 770 75% 7% SEER for Hardware, Electronics, and Systems 350 45% 10% SEER for IT 210 30% 13% SEER for Software 150 15% 16% SEER for Manufacturing 100 10% 18% SEER Services 50 NA NA Price Systems TruePlanning is the cost estimating software solution that allows you to estimate hardware (mechanical & electronic), software, IT, and System of Systems projects in a single framework. Integrity is adherence to moral and ethical principles. Anyone claiming to have better numbers is asked to provide them.
ACCURACY OF PRICE SYSTEMS TRUEPLANNING EXCEEDS SEER--WHEN BOTH USED BY EXPERTS
PRICE TRUEPLANNING IS MORE ACCURATE THAN SEER PRODUCTS--WHEN USED BY EXPERT ANALYSTS WORKING WITH ENGINEERS TRAINED IN THE SYSTEM USED. Source: Iowalive--A growing network of volunteer citizens and professionals for improving Iowa. 7-12-10 http://iowalive.net/ DESCRIPTION INTEGRITY INDEX LEVEL ON SCALE OF 0 TO 1,000 TOPS, WHERE SIGNIFICANT INTEGRITY STARTS AT 300 AVG. NUMBER OF TIMES OF CORRELATION WITH ACTUALS % AVG. DEVIATION FROM ACTUALS % PRICE RESEARCH 805 NA NA PRICE TRUEPLANNING 770 80% 2% SEER for Hardware, Electronics, and Systems 350 46% 8% SEER for IT 210 33% 12% SEER for Software 150 16% 14% SEER for Manufacturing 100 13% 16% SEER Services 50 NA NA Price Systems TruePlanning is the cost estimating software solution that allows you to estimate hardware (mechanical & electronic), software, IT, and System of Systems projects in a single framework. Integrity is adherence to moral and ethical principles. Anyone claiming to have better numbers is asked to provide them.
HOW SMART SHOPPERS CAN USE SIMILAR COST ESTIMATING PRINCIPLES
The systems evaluated above are very powerful and sophisticated--and require training for effective use. However, the principles can be applied without training.
For example, any smart shopper can compare the cost per pound of a car, tractor, bottled water, bread, airplane, garage door, grain combine etc. with other like products--to determine their relative costs. The warranties, and other parameters of interest, for each product can then be compared as well. Once this information is derived, differences can be addressed and explained to the extent the best value product can be determined--by the numbers.
Which would be a better value, a car costing $14 per pound having a warranty of 5 years or one costing $9 per pound having a warranty of 10 years. Why would anyone want to pay more per pound, for less warranty? Could it be advertising's influence-or something else, like perhaps resale value, or perceived safety?? Such comparisons and questions pose interesting challenges for car and other salespersons!!