Auditing parametrics is rather trivial: it is like all other auditing process which are carried out in a company. It is after all normal that, from time to time, someone external to the cost estimating department has a look on the way cost estimates are produced. Cost estimates are prepared in order to make decisions; this means the company relies (at least partly) on them for its future: it is important!
Looking at the models utilization. This can occur frequently (let us say once a year), as it is the basis of the cost estimates. This is the job of the cost estimators.
Looking at the models preparation. This is the job of the cost analyst. Models are the tools which are going to be used. These tools are either made internally (generally speaking for the specific models) or bought from external sources (for general models). In the first case, one must check if these models are professionally made. In the second case, the cost analyst must prepare the usage of the model by establishing and communicating the rules to be observed inside the company on one hand, adjust the model to the company experience on the second hand. This should be done every 2 or 3 years.
Looking at the process. This is the job of the cost estimating department manager. All the steps of the process for preparing reliable cost estimates should be checked. This can be done every 5 years.
KeywordsCost Estimate Cost Estimator Product Family Subjective Variable Model Builder
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