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

    Please complete the online application form.

    Read our Professional development (CPD) booking conditions.