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The Dangers of Parametrics

Building a parametric cost model is hard work. The data is noisy and often does not behave like we want it to. We need statistics to give us an indication of the goodness of our models, but; statistics can be manipulated and mislead. On top of all of that, our own very human biases can lead us astray; causing us to see patterns in the noise and draw false conclusions from the data. Yet, it is the data itself that is the foundation for making better cost estimates and cost models. I believe the mistake we often make is we believe that our models are representative of the data; that our models summarize the experiences, the knowledge, and the stories contained in the data. However, it is the opposite that is true. Our models are but imitations of reality. They give us trends, but not truth. The experiences, the knowledge, and the stories that we need in order to make good cost estimates is bound up in the data. You cannot separate good cost estimating from a knowledge of the historical data. One final thought. It is our attempts to make sense out of the randomness that leads us astray. In order to make progress as cost modelers and cost estimators, we must accept that there are real limitations on our ability to model the past and predict the future. I do not believe we should throw up our hands and say this is the best we can do. Rather, to see real improvement we must first recognize these limitations, avoid the easy but misleading solutions, and seek to find ways to better model the world we live in. I don't have any simple solutions. Perhaps the answers lie in better data or in a totally different approach to simulating how the world works. All I know is that we must do our best to speak truth to ourselves and our customers. Misleading ourselves and our customers will, in the end, result in an inability to have a positive impact on those we serve.

Prince, Frank A.↗

The Dangers of Parametrics

Building a parametric cost model is hard work. The data is noisy and often does not behave like we want it to. We need statistics to give us an indication of the goodness of our models, but; statistics can be manipulated and mislead. On top of all of that, our own very human biases can lead us astray; causing us to see patterns in the noise and draw false conclusions from the data. Yet, it is the data itself that is the foundation for making better cost estimates and cost models. I believe the mistake we often make is we believe that our models are representative of the data; that our models summarize the experiences, the knowledge, and the stories contained in the data. However, it is the opposite that is true. Our models are but imitations of reality. They give us trends, but not truth. The experiences, the knowledge, and the stories that we need in order to make good cost estimates is bound up in the data. You cannot separate good cost estimating from a knowledge of the historical data. One final thought. It is our attempts to make sense out of the randomness that leads us astray. In order to make progress as cost modelers and cost estimators, we must accept that there are real limitations on our ability to model the past and predict the future. I do not believe we should throw up our hands and say this is the best we can do. Rather, to see real improvement we must first recognize these limitations, avoid the easy but misleading solutions, and seek to find ways to better model the world we live in. I don't have any simple solutions. Perhaps the answers lie in better data or in a totally different approach to simulating how the world works. All I know is that we must do our best to speak truth to ourselves and our customers. Misleading ourselves and our customers will, in the end, result in an inability to have a positive impact on those we serve.

Prince, Frank A.↗

Cost model validation: a technical and cultural approach

This paper summarizes how JPL's parametric mission cost model (PMCM) has been validated using both formal statistical methods and a variety of peer and management reviews in order to establish organizational acceptance of the cost model estimates.

cost model validation↗

Process Cost Modeling for Multi-Disciplinary Design Optimization

For early design concepts, the conventional approach to cost is normally some kind of parametric weight-based cost model. There is now ample evidence that this approach can be misleading and inaccurate. By the nature of its development, a parametric cost model requires historical data and is valid only if the new design is analogous to those for which the model was derived. Advanced aerospace vehicles have no historical production data and are nowhere near the vehicles of the past. Using an existing weight-based cost model would only lead to errors and distortions of the true production cost. This report outlines the development of a process-based cost model in which the physical elements of the vehicle are costed according to a first-order dynamics model. This theoretical cost model, first advocated by early work at MIT, has been expanded to cover the basic structures of an advanced aerospace vehicle. Elemental costs based on the geometry of the design can be summed up to provide an overall estimation of the total production cost for a design configuration. This capability to directly link any design configuration to realistic cost estimation is a key requirement for high payoff MDO problems. Another important consideration in this report is the handling of part or product complexity. Here the concept of cost modulus is introduced to take into account variability due to different materials, sizes, shapes, precision of fabrication, and equipment requirements. The most important implication of the development of the proposed process-based cost model is that different design configurations can now be quickly related to their cost estimates in a seamless calculation process easily implemented on any spreadsheet tool. In successive sections, the report addresses the issues of cost modeling as follows. First, an introduction is presented to provide the background for the research work. Next, a quick review of cost estimation techniques is made with the intention to highlight their inappropriateness for what is really needed at the conceptual phase of the design process. The First-Order Process Velocity Cost Model (FOPV) is discussed at length in the next section. This is followed by an application of the FOPV cost model to a generic wing. For designs that have no precedence as far as acquisition costs are concerned, cost data derived from the FOPV cost model may not be accurate enough because of new requirements for shape complexity, material, equipment and precision/tolerance. The concept of Cost Modulus is introduced at this point to compensate for these new burdens on the basic processes. This is treated in section 5. The cost of a design must be conveniently linked to its CAD representation. The interfacing of CAD models and spreadsheets containing the cost equations is the subject of the next section, section 6. The last section of the report is a summary of the progress made so far, and the anticipated research work to be achieved in the future.

Bao, Han P.↗

Estimation Model of Spacecraft Parameters and Cost Based on a Statistical Analysis of COMPASS Designs

The Collaborative Modeling for Parametric Assessment of Space Systems (COMPASS) team at Glenn Research Center has performed integrated system analysis of conceptual spacecraft mission designs since 2006 using a multidisciplinary concurrent engineering process. The set of completed designs was archived in a database, to allow for the study of relationships between design parameters. Although COMPASS uses a parametric spacecraft costing model, this research investigated the possibility of using a top-down approach to rapidly estimate the overall vehicle costs. This paper presents the relationships between significant design variables, including breakdowns of dry mass, wet mass, and cost. It also develops a model for a broad estimate of these parameters through basic mission characteristics, including the target location distance, the payload mass, the duration, the delta-v requirement, and the type of mission, propulsion, and electrical power. Finally, this paper examines the accuracy of this model in regards to past COMPASS designs, with an assessment of outlying spacecraft, and compares the results to historical data of completed NASA missions.

cost modeling↗

On Convergence of Development Costs and Cost Models for Complex Spaceflight Instrument Electronics

Development costs of a few recent spaceflight instrument electrical and electronics subsystems have diverged from respective heritage cost model predictions. The cost models used are Grass Roots, Price-H and Parametric Model. These cost models originated in the military and industry around 1970 and were successfully adopted and patched by NASA on a mission-by-mission basis for years. However, the complexity of new instruments recently changed rapidly by orders of magnitude. This is most obvious in the complexity of representative spaceflight instrument electronics' data system. It is now required to perform intermediate processing of digitized data apart from conventional processing of science phenomenon signals from multiple detectors. This involves on-board instrument formatting of computational operands from row data for example, images), multi-million operations per second on large volumes of data in reconfigurable hardware (in addition to processing on a general purpose imbedded or standalone instrument flight computer), as well as making decisions for on-board system adaptation and resource reconfiguration. The instrument data system is now tasked to perform more functions, such as forming packets and instrument-level data compression of more than one data stream, which are traditionally performed by the spacecraft command and data handling system. It is furthermore required that the electronics box for new complex instruments is developed for one-digit watt power consumption, small size and that it is light-weight, and delivers super-computing capabilities. The conflict between the actual development cost of newer complex instruments and its electronics components' heritage cost model predictions seems to be irreconcilable. This conflict and an approach to its resolution are addressed in this paper by determining the complexity parameters, complexity index, and their use in enhanced cost model.

Kizhner, Semion↗

Parametric and Nonparametric Models of U.S. Cost Overruns for Nuclear Power Plants

This study presents new data-driven models to estimate the effect of capacity on the percentage of cost overruns in the United States for nuclear power plant construction projects before and after the Three Mile Island accident. Parametric and nonparametric models have been developed that describe the significant shifts in nuclear energy costs during the dynamic environment. Employing a contemporary descriptive methodology and a quantitative analysis, we furnish a comprehensive overview of the alterations in cost overrun distribution and show the changes observed in other pivotal metrics alongside cost overruns. Our emphasis lies in documenting the fluctuations in cost overruns alongside nuclear reactor capacity levels and the increase of the overnight capital costs to build nuclear reactors. Our results show that increasing the size of nuclear reactors is not a factor statistically significant to decrease the percentage of cost overruns, and the probit model results provide evidence that an increase in size increases the probability of having cost overruns larger than 100% (double the estimated cost). We also compare our findings to two other regions: Asia and Europe.

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗

Predicting Production Costs for Advanced Aerospace Vehicles

For early design concepts, the conventional approach to cost is normally some kind of parametric weight-based cost model. There is now ample evidence that this approach can be misleading and inaccurate. By the nature of its development, a parametric cost model requires historical data and is valid only if the new design is analogous to those for which the model was derived. Advanced aerospace vehicles have no historical production data and are nowhere near the vehicles of the past. Using an existing weight-based cost model would only lead to errors and distortions of the true production cost. This paper outlines the development of a process-based cost model in which the physical elements of the vehicle are soared according to a first-order dynamics model. This theoretical cost model, first advocated by early work at MIT, has been expanded to cover the basic structures of an advanced aerospace vehicle. Elemental costs based on the geometry of the design can be summed up to provide an overall estimation of the total production cost for a design configuration. This capability to directly link any design configuration to realistic cost estimation is a key requirement for high payoff MDO problems. Another important consideration in this paper is the handling of part or product complexity. Here the concept of cost modulus is introduced to take into account variability due to different materials, sizes, shapes, precision of fabrication, and equipment requirements. The most important implication of the development of the proposed process-based cost model is that different design configurations can now be quickly related to their cost estimates in a seamless calculation process easily implemented on any spreadsheet tool.

Bao, Han P.↗

Constellation Program Life-cycle Cost Analysis Model (LCAM)

The Constellation Program (CxP) is NASA's effort to replace the Space Shuttle, return humans to the moon, and prepare for a human mission to Mars. The major elements of the Constellation Lunar sortie design reference mission architecture are shown. Unlike the Apollo Program of the 1960's, affordability is a major concern of United States policy makers and NASA management. To measure Constellation affordability, a total ownership cost life-cycle parametric cost estimating capability is required. This capability is being developed by the Constellation Systems Engineering and Integration (SE&I) Directorate, and is called the Lifecycle Cost Analysis Model (LCAM). The requirements for LCAM are based on the need to have a parametric estimating capability in order to do top-level program analysis, evaluate design alternatives, and explore options for future systems. By estimating the total cost of ownership within the context of the planned Constellation budget, LCAM can provide Program and NASA management with the cost data necessary to identify the most affordable alternatives. LCAM is also a key component of the Integrated Program Model (IPM), an SE&I developed capability that combines parametric sizing tools with cost, schedule, and risk models to perform program analysis. LCAM is used in the generation of cost estimates for system level trades and analyses. It draws upon the legacy of previous architecture level cost models, such as the Exploration Systems Mission Directorate (ESMD) Architecture Cost Model (ARCOM) developed for Simulation Based Acquisition (SBA), and ATLAS. LCAM is used to support requirements and design trade studies by calculating changes in cost relative to a baseline option cost. Estimated costs are generally low fidelity to accommodate available input data and available cost estimating relationships (CERs). LCAM is capable of interfacing with the Integrated Program Model to provide the cost estimating capability for that suite of tools.

Prince, Andy↗

NASA Air Force Cost Model (NAFCOM): Capabilities and Results

NAFCOM is a parametric estimating tool for space hardware. Uses cost estimating relationships (CERs) which correlate historical costs to mission characteristics to predict new project costs. It is based on historical NASA and Air Force space projects. It is intended to be used in the very early phases of a development project. NAFCOM can be used at the subsystem or component levels and estimates development and production costs. NAFCOM is applicable to various types of missions (crewed spacecraft, uncrewed spacecraft, and launch vehicles). There are two versions of the model: a government version that is restricted and a contractor releasable version.

McAfee, Julie↗

Business Intelligence Modeling in Launch Operations

This technology project is to advance an integrated Planning and Management Simulation Model for evaluation of risks, costs, and reliability of launch systems from Earth to Orbit for Space Exploration. The approach builds on research done in the NASA ARC/KSC developed Virtual Test Bed (VTB) to integrate architectural, operations process, and mission simulations for the purpose of evaluating enterprise level strategies to reduce cost, improve systems operability, and reduce mission risks. The objectives are to understand the interdependency of architecture and process on recurring launch cost of operations, provide management a tool for assessing systems safety and dependability versus cost, and leverage lessons learned and empirical models from Shuttle and International Space Station to validate models applied to Exploration. The systems-of-systems concept is built to balance the conflicting objectives of safety, reliability, and process strategy in order to achieve long term sustainability. A planning and analysis test bed is needed for evaluation of enterprise level options and strategies for transit and launch systems as well as surface and orbital systems. This environment can also support agency simulation .based acquisition process objectives. The technology development approach is based on the collaborative effort set forth in the VTB's integrating operations. process models, systems and environment models, and cost models as a comprehensive disciplined enterprise analysis environment. Significant emphasis is being placed on adapting root cause from existing Shuttle operations to exploration. Technical challenges include cost model validation, integration of parametric models with discrete event process and systems simulations. and large-scale simulation integration. The enterprise architecture is required for coherent integration of systems models. It will also require a plan for evolution over the life of the program. The proposed technology will produce long-term benefits in support of the NASA objectives for simulation based acquisition, will improve the ability to assess architectural options verses safety/risk for future exploration systems, and will facilitate incorporation of operability as a systems design consideration, reducing overall life cycle cost for future systems. The future of business intelligence of space exploration will focus on the intelligent system-of-systems real-time enterprise. In present business intelligence, a number of technologies that are most relevant to space exploration are experiencing the greatest change. Emerging patterns of set of processes rather than organizational units leading to end-to-end automation is becoming a major objective of enterprise information technology. The cost element is a leading factor of future exploration systems.

Bardina, Jorge E.↗

Advanced Technology Lifecycle Analysis System (ATLAS)

Developing credible mass and cost estimates for space exploration and development architectures require multidisciplinary analysis based on physics calculations, and parametric estimates derived from historical systems. Within the National Aeronautics and Space Administration (NASA), concurrent engineering environment (CEE) activities integrate discipline oriented analysis tools through a computer network and accumulate the results of a multidisciplinary analysis team via a centralized database or spreadsheet Each minute of a design and analysis study within a concurrent engineering environment is expensive due the size of the team and supporting equipment The Advanced Technology Lifecycle Analysis System (ATLAS) reduces the cost of architecture analysis by capturing the knowledge of discipline experts into system oriented spreadsheet models. A framework with a user interface presents a library of system models to an architecture analyst. The analyst selects models of launchers, in-space transportation systems, and excursion vehicles, as well as space and surface infrastructure such as propellant depots, habitats, and solar power satellites. After assembling the architecture from the selected models, the analyst can create a campaign comprised of missions spanning several years. The ATLAS controller passes analyst specified parameters to the models and data among the models. An integrator workbook calls a history based parametric analysis cost model to determine the costs. Also, the integrator estimates the flight rates, launched masses, and architecture benefits over the years of the campaign. An accumulator workbook presents the analytical results in a series of bar graphs. In no way does ATLAS compete with a CEE; instead, ATLAS complements a CEE by ensuring that the time of the experts is well spent Using ATLAS, an architecture analyst can perform technology sensitivity analysis, study many scenarios, and see the impact of design decisions. When the analyst is satisfied with the system configurations, technology portfolios, and deployment strategies, he or she can present the concepts to a team, which will conduct a detailed, discipline-oriented analysis within a CEE. An analog to this approach is the music industry where a songwriter creates the lyrics and music before entering a recording studio.

O'Neil, Daniel A.↗

NASA/Air Force Cost Model: NAFCOM

The NASA/Air Force Cost Model (NAFCOM) is a parametric estimating tool for space hardware. It is based on historical NASA and Air Force space projects and is primarily used in the very early phases of a development project. NAFCOM can be used at the subsystem or component levels.

Winn, Sharon D.↗

Evidential Deep Learning: Enhancing Predictive Uncertainty Estimation for Earth System Science Applications

Abstract Robust quantification of predictive uncertainty is a critical addition needed for machine learning applied to weather and climate problems to improve the understanding of what is driving prediction sensitivity. Ensembles of machine learning models provide predictive uncertainty estimates in a conceptually simple way but require multiple models for training and prediction, increasing computational cost and latency. Parametric deep learning can estimate uncertainty with one model by predicting the parameters of a probability distribution but does not account for epistemic uncertainty. Evidential deep learning, a technique that extends parametric deep learning to higher-order distributions, can account for both aleatoric and epistemic uncertainties with one model. This study compares the uncertainty derived from evidential neural networks to that obtained from ensembles. Through applications of the classification of winter precipitation type and regression of surface-layer fluxes, we show evidential deep learning models attaining predictive accuracy rivaling standard methods while robustly quantifying both sources of uncertainty. We evaluate the uncertainty in terms of how well the predictions are calibrated and how well the uncertainty correlates with prediction error. Analyses of uncertainty in the context of the inputs reveal sensitivities to underlying meteorological processes, facilitating interpretation of the models. The conceptual simplicity, interpretability, and computational efficiency of evidential neural networks make them highly extensible, offering a promising approach for reliable and practical uncertainty quantification in Earth system science modeling. To encourage broader adoption of evidential deep learning, we have developed a new Python package, Machine Integration and Learning for Earth Systems (MILES) group Generalized Uncertainty for Earth System Science (GUESS) (MILES-GUESS) ( https://github.com/ai2es/miles-guess ), that enables users to train and evaluate both evidential and ensemble deep learning. Significance Statement This study demonstrates a new technique, evidential deep learning, for robust and computationally efficient uncertainty quantification in modeling the Earth system. The method integrates probabilistic principles into deep neural networks, enabling the estimation of both aleatoric uncertainty from noisy data and epistemic uncertainty from model limitations using a single model. Our analyses reveal how decomposing these uncertainties provides valuable insights into reliability, accuracy, and model shortcomings. We show that the approach can rival standard methods in classification and regression tasks within atmospheric science while offering practical advantages such as computational efficiency. With further advances, evidential networks have the potential to enhance risk assessment and decision-making across meteorology by improving uncertainty quantification, a longstanding challenge. This work establishes a strong foundation and motivation for the broader adoption of evidential learning, where properly quantifying uncertainties is critical yet lacking.

Schreck, John S.↗

The 25 kW power module evolution study. Part 3: Conceptual designs for power module evolutions. Volume 3: Cost estimates

Cost data generated for the evolutionary power module concepts selected are reported. The initial acquisition costs (design, development, and protoflight unit test costs) were defined and modeled for the baseline 25 kW power module configurations. By building a parametric model of this initial building block, the cost of the 50 kW and the 100 kW power modules were derived by defining only their configuration and programmatic differences from the 25 kW baseline module. Variations in cost for the quantities needed to fulfill the mission scenarios were derived by applying appropriate learning curves.

Source record↗

Cost Breakeven Analysis of Lunar ISRU for Human Lunar Surface Architectures

The return of humans to the lunar surface encompasses a range of possible architectures from brief Apollo-like sorties to long-term sustainment of human presence. Any architecture in this span requires propellant for the crew’s ascent from the lunar surface, as well as consumables to support their presence on the Moon. Oxygen and hydrogen are candidates for the propellant for the ascent vehicle due to their high specific impulse and potential for production from lunar resources and also constitute important consumables for the crew. Thus, the production of oxygen and/or hydrogen from lunar resources could significantly reduce the mass that must be sent from Earth to enable future human lunar missions. To assess the merits of using lunar resources, the costs associated with developing, producing, launching, operating, and maintaining those systems must be considered relative to the costs of delivering the needed resources from Earth. The demand for those resources depends upon the nature of the lunar mission, while the costs of both Earth-derived and lunar-derived resources depend on the performance requirements and technology capabilities associated with each approach. Thus, determining which approach is more cost efficient requires modeling the performance and cost of the associated systems as well as the range of possible architectures over which such a determination might apply. This research proposes a model that parametrically captures the factors influencing the relevant costs of providing propellant and crew consumables on the lunar surface from Earth and from the Moon. Two ISRU system models are assessed relative to propellant delivery from Earth. In this model, lunar ISRU breaks even with propellant delivery from Earth at high propellant demands and mission durations with multi-year ISRU system lifetimes; however, the costs of developing the necessary technologies to support a highly reliable and autonomous lunar ISRU system were not included.

ISRU↗

Cost Estimation and Control for Flight Systems

Good program management practices, cost analysis, cost estimation, and cost control for aerospace flight systems are interrelated and depend upon each other. The best cost control process cannot overcome poor design or poor systems trades that lead to the wrong approach. The project needs robust Technical, Schedule, Cost, Risk, and Cost Risk practices before it can incorporate adequate Cost Control. Cost analysis both precedes and follows cost estimation -- the two are closely coupled with each other and with Risk analysis. Parametric cost estimating relationships and computerized models are most often used. NASA has learned some valuable lessons in controlling cost problems, and recommends use of a summary Project Manager's checklist as shown here.

Hammond, Walter E.↗

Modeling Personnel Turnover in the Parametric Organization

A primary issue in organizing a new parametric cost analysis function is to determine the skill mix and number of personnel required. The skill mix can be obtained by a functional decomposition of the tasks required within the organization and a matrixed correlation with educational or experience backgrounds. The number of personnel is a function of the skills required to cover all tasks, personnel skill background and cross training, the intensity of the workload for each task, migration through various tasks by personnel along a career path, personnel hiring limitations imposed by management and the applicant marketplace, personnel training limitations imposed by management and personnel capability, and the rate at which personnel leave the organization for whatever reason. Faced with the task of relating all of these organizational facets in order to grow a parametric cost analysis (PCA) organization from scratch, it was decided that a dynamic model was required in order to account for the obvious dynamics of the forming organization. The challenge was to create such a simple model which would be credible during all phases of organizational development. The model development process was broken down into the activities of determining the tasks required for PCA, determining the skills required for each PCA task, determining the skills available in the applicant marketplace, determining the structure of the dynamic model, implementing the dynamic model, and testing the dynamic model.

Dean, Edwin B.↗