Which LCC analysis method involves estimates performed by one or more experts using their experience and judgement?

Which LCC analysis method involves estimates performed by one or more experts using their experience and judgement?

• A. Expert Judgement
• B. Parametric
• C. Price to win
• D. Taconomy method

Answer: (A)

Expert judgement in LCC analysis relies on estimates made by experienced engineers or cost analysts using their knowledge of the system, maintenance practices, supplier behavior, and lessons from similar programs. When data is limited or uncertainty is high, tapping this experience helps produce plausible cost estimates and defines realistic ranges, guiding decisions even though the numbers are subjective. This contrasts with parametric methods, which use historical data and statistical relationships to estimate costs, and with approaches like price to win or less-standard methods that don’t hinge on expert experiential estimates.

Expert judgement in LCC analysis relies on estimates made by experienced engineers or cost analysts using their knowledge of the system, maintenance practices, supplier behavior, and lessons from similar programs. When data is limited or uncertainty is high, tapping this experience helps produce plausible cost estimates and defines realistic ranges, guiding decisions even though the numbers are subjective. This contrasts with parametric methods, which use historical data and statistical relationships to estimate costs, and with approaches like price to win or less-standard methods that don’t hinge on expert experiential estimates.