10 Step Estimation Process Sample Checklist
View our 10 Step Estimating Process Checklist. This checklist should be tuned to the individual company’s needs and suggestions.
I am continually amazed at the wide variety of opinions about what Price-To-Win is and who plays what role in Price-To-Win.
I have spoken to some customers that are offended by the term Price-To-Win. They hear it as “trick the customer to win.” Of course that is not what price-to-win is all about. Price-to-Win is about choosing the most affordable alternative that fulfills the customer need and that also will be successful against competition.
PRICE-TO-WIN GOALS
Price-to-Win identifies the correct balance of capability that can be delivered to the customer at the value the customer wants. Price-to-Win provides management insight for:
- Competitive positioning
- Strategic partnering
- Risk tolerance
- Customer relations
- Optimal bid strategy
This information is derived by:
- Market inputs
- Engineering identification of viable alternatives
- Engineering architectural design of each alternative
- Cost and risk analysis of alternatives and risk alternatives
- Price analysis (cost and price are two different issues)
PRICE-TO-WIN 8 STEP PROCESS
- Step 1: Gather market intelligence: Marketing personnel identify competitors possible strategies and
- Step 2: Determine requirements & features
- Step 3: Sketch out Architecture Design
- Step 5. Determine viable alternatives
- Step 6: Cost Analysis & Estimation of Alternatives
- Step 7: Select best alternative
- Step 8: Establish price
GALORATH ROLE IN PRICE-TO-WIN
Galorath and SEER primarily support the estimation and analysis of alternatives, taking inputs from engineering, marketing and others. The result of this includes cost and cost risk. Once that cost is determined, price analysis will determine the actual price to bid. This price may vary significantly from the cost based on business decisions.
Estimating Total Cost of Ownership (TCO)
Find out how you can use Total Cost of Ownership (TCO) model to create an estimate which includes all the costs generated over the useful life of a given application.
Should Cost Analysis
Learn how Should-Cost Analysis can identify savings opportunities and drive cost efficiency in procurement and manufacturing processes.
ROM Estimate: The First Step Towards a Detailed Project Plan
Find out what ROM (rough order of magnitude) estimate is and why is it a crucial element of every project planning cycle.
Software Maintenance Cost
Find out why accurate estimation of software maintenance costs is critical to proper project management, and how it can make up to roughly 75% of the TCO.
