(26a) Simplified Cost Estimation and Its Application to Decision Making: What Do You Really Need to Know?

In an environment where new product and process concepts are actively encouraged, competition for both money and people will usually result.  While it is true that this is a ‘nice problem to have’, this forces organizations to make decisions about where to expend limited resources.  Valid economic forecasts are required but can be difficult to make in the formative stages of an idea’s development since much of the required data is not available.  However, in many cases, the impact that a particular unknown has on the economic results can be computed using reasonable ranges of input values and to clarify the economic picture.  Case studies will be shared where decision-making was enhanced significantly using economic calculations that were sufficiently simplified that only a few days of effort were required.