MAXIM Periscope Module

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MAXIM Periscope Module

• PRICE H Cost Modeling
• Bill Lawson
• 25 April 2003

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PRICE H Cost Model

• PRICE H Commercial Parametric Hardware Cost
  Modeling Tool
• Tool Heritage DOD
• Global Parameters
• Labor Costs GSFC bid rates (used for in-house
  builds of spacecraft/instrument)
• Inflation NASA Inflation Index (MAXIM costs
  presented in Constant 2003 dollars)
• Engineering Environment
• NASA environment defined by PRICE Systems, Inc.
  calibration study
• Baseline environment emphasizes System
  Engineering, Project Management, and automated
  design capabilities
• Key Component Parameters
• Complexity Factors (Table driven from industry
  experience)
• Modification Level/Remaining Design Factor
  (Heritage)
• Quantity and Design Repeat (Learning Curve)
• Composition (Structure, Electronic, Purchased,
  Cost Pass-through)
• Mass
• Operating Platform (Unmanned-Space)

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ISAL PRICE H Cost Modeling

• Study begins with a blank model
• Instrument payloads vary making a template
  approach difficult
• Similar components (e.g., electronics) from prior
  studies were incorporated and modified
• ISAL study output products
• Powerpoint presentation
• PRICE H model exported to Summary Excel
  Spreadsheet
• PRICE H model exported to Detailed Excel
  Spreadsheet
• PRICE model file (requires PRICE H software)
• Upon request Text reports containing
  input/outputs for each cost element

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Top-Level Cost Model
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Expanded Model
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PRICE Cost Summary1st Periscope-Pair
Cost Element (Summary Report Available for each
cost element)
Engineering
Year Dollars (03)
Project Management
Production
Manufacturing
Development
Total Cost Estimate 23.9M
Schedule
Mass
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PRICE Cost Estimate Summary Incremental Cost of
2nd Unit (T2)
T1
T1 T2
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Learning Curve Basics

• PRICE H Users Manual
• Basis for improvement is the human learning
  process
• Learning curves in PRICE H apply to production
  run (not development)
• The more one produces, the more efficient one
  becomes
• Production learning improvement is virtually
  non-existent for automated manufacturing methods
• PRICE H provides a parameter to adjust the degree
  of automation (MPI)
• Typically, automation lowers Theoretical First
  Piece (T1) cost and flattens the Unit Learning
  Curve
• NASA Cost Estimating Handbook (April 2002)
• The learning curve concept is used primarily for
  uninterrupted manufacturing and assembly tasks
• The major premise of learning curves is that each
  time the product quantity doubles the resources
  (labor hours) required to produce the product
  will reduce by a determined percentage.

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Multiple Unit Studies (PRICE H Learning Curve)

• PRICE H
• Calculates Theoretical First Piece (T1)
  production unit (most costly to produce)
• Incorporates industry standard Boeing Unit
  Learning Curve (ULC)
• Applies a correction factor to improve accuracy
  (for lower quantity studies)
• Includes Stanford-b formula to transfer prototype
  learning to manufacturing
• Calculates Production Average Unit Cost (UPC)

• A

• A

• (QTY QCF Stan_b) - (QCF Stan_b)

• Production Cost T1

• - ULCF

• A

• Where

• (A 1) (A 2)

• ULCF is PRICE H correction factor

• ULCF

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• ln(UNITLC)

• Part of Boeing Equation

• A 1

• ln(2)

• Quantity dependent correction factor

• QCF 0.5151 0.001116 ln(QTY)

• Stan_b (input )(Protos)

• Percent of Prototypes to include

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Learning Curves
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Summary Cost Estimate
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MAXIM_PRICEcost.xlsDetailed Cost Estimate (1st
Periscope-Pair)