This module can be taken as a Standalone Short Course.

The module aims to enable you to understand the basic principles of cost estimation and its place use within the acquisition and through life support processes.

At a glance

  • Dates
    • Please enquire for course dates
  • Duration5 days
  • LocationOnline

What you will learn

  • Distinguish between and define different terms applied to cost estimation, e.g. total cost of ownership, whole life costs etc.,
  • Critically evaluate the use of cost estimation methods at different stages of the lifetime of equipment or a service,
  • Compare the strengths and weaknesses of different cost modelling techniques,
  • Critically evaluate the importance of uncertainty and risk and their relative importance in different situations,
  • Apply different methods to define the scope of a cost estimation study,
  • Design a data collection and management plan for a cost estimation study,
  • Use a cost model to cost different options for supplying a capability and to carry out a sensitivity analysis on their results,
  • Conduct Monte-Carlo simulation based on three-point estimates using suitable software,
  • Interpret different outputs from cost models within the context of a particular study.
  • Core content

  • The concept of cost estimation and its use within the acquisition process,
  • The importance of considering whole life cost,
  • The cost estimation process:
  • Defining the scope of the study,
  • Data collection and management,
  • Costing using benchmarks,
  • Costing by analogy,
  • Parametric cost modelling,
  • Verification and validation,
  • Sensitivity analysis,
  • Dealing with uncertainty and risk:
  • Use of three-point estimates and Monte-Carlo simulation,
  • Outputs and uses of cost estimation:
  • Balance of investment studies,
  • Identification of key cost drivers,
  • Budget support,
  • Negotiation support,
  • Through life capability management.
  • Location and travel


    How to apply

    Online application form. UK students are normally expected to attend an interview and financial support is best discussed at that time. Overseas and EU students may be interviewed by telephone.

    Read our Professional development (CPD) booking conditions.