Product Cost Estimation: Technique Classification and Methodology Review

TLDR

Cost estimation is crucial early in the design cycle, and current trends and future directions are briefly discussed. The study reviews state‑of‑the‑art product cost estimation techniques and methodologies developed over time. The authors categorize cost‑estimation techniques into qualitative (intuitive and analogical) and quantitative (parametric and analytical) methods, describe each in detail, and review application‑specific research. The review offers a comprehensive literature overview useful to researchers and practitioners.

Abstract

This paper provides a detailed review of the state of the art in product cost estimation covering various techniques and methodologies developed over the years. The overall work is categorized into qualitative and quantitative techniques. The qualitative techniques are further subdivided into intuitive and analogical techniques, and the quantitative ones into parametric and analytical techniques. Each of the techniques is then described and discussed, in detail, with further subdivisions. The paper also signifies the importance of cost estimation in the early phases of the design cycle and, as such, briefly discusses the current trends and future directions in the area. Research work carried out in the field with reference to specific applications is also reviewed. The paper provides a comprehensive literature review in the field and should be useful to researchers and practitioners interested in this field.