Browsing by Author "Mattila, Jarkko L."

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Dynamic cost estimation concept for engineered-to-order projects: An analysis for a case company
(2022-08-22) Lindström, Emil
Sähkötekniikan korkeakoulu | Master's thesis
Accurate cost estimation has become more significant for businesses utilizing engineer-to-order projects (ETO) due to increased competition and price consciousness. For this reason, companies such as the case company of this thesis have begun to pursue methods for improving their competitive ability through accurate cost forecasts. However, concrete methods have not been developed for implementing cost estimation systems in complex ETO environments. Therefore, this thesis aimed to define a work hour estimation concept for a case company that would address the challenges of ETO projects. Specifically, this thesis aimed to identify methods that could reliably measure and dynamically evaluate incurring project work costs. In order to identify requirements for the proposed concept, qualitative interview data was gathered from delivery process stakeholders. This data was then subjected to thematic analysis to define themes encompassing the case company’s readiness for a cost estimation system. The identified themes were compared to historical project cost data to evaluate the reliability of existing estimates. The thematic analysis showed that cost estimation was significantly affected by human factors, which in turn revealed structural issues in the case company that need to be addressed. Overcoming these issues could enable additional value-adding initiatives in the case company beyond improving time measurements and cost forecasts. Furthermore, the results of this thesis indicate that human factors should become a more prominent focus in the cost estimation literature.