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Cost-estimating relationships for space programsCost-estimating relationships (CERs) are defined and discussed as they relate to the estimation of theoretical costs for space programs. The paper primarily addresses CERs based on analogous relationships between physical and performance parameters to estimate future costs. Analytical estimation principles are reviewed examining the sources of errors in cost models, and the use of CERs is shown to be affected by organizational culture. Two paradigms for cost estimation are set forth: (1) the Rand paradigm for single-culture single-system methods; and (2) the Price paradigms that incorporate a set of cultural variables. For space programs that are potentially subject to even small cultural changes, the Price paradigms are argued to be more effective. The derivation and use of accurate CERs is important for developing effective cost models to analyze the potential of a given space program.
Document ID
Acquisition Source
Legacy CDMS
Document Type
Conference Proceedings
Mandell, Humboldt C., Jr.
(NASA Johnson Space Center Houston, TX, United States)
Date Acquired
August 15, 2013
Publication Date
January 1, 1992
Publication Information
Publication: In: Space economics (A93-11976 02-83)
Publisher: American Institute of Aeronautics and Astronautics
Subject Category
Economics And Cost Analysis
Accession Number
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