Basics of military operation costs estimate

Abstract

An estimate of costs is a judgment, opinion, forecast, or prediction of how many resources need to be preplanned or provided in order to perform a certain process. An operation cost estimate is a forecast of the probable future value of the operation elements process and is based on an estimate of expenditures of respective activities. In order to make a proper estimate of operation costs, it is necessary to know the techniques of cost estimate and the calculation elements. Having in mind that the spending of one type of resources creates new values, resources or capabilities during the operation planning, special attention is paid to costs and their estimate. To evaluate the costs and identify the expenditures required to execute the operation plan is often essential for successful work. The cost estimate can be made using methods and techniques of the cost estimate. These methods and techniques provide a critical mass of information necessary for decision making in planning, estimating and reporting the costs for the future period. The paper describes the cost estimate technique based on activities. Calculation elements are: norms, standards, criteria, and units of standardization. Their application is a requirement for precise interpretation of needs. They are designed for value-based sizing of elements of the operation plan in relation to resources and can be instruments by which basic conditions to be provided for the implementation of planned tasks and activities can be systematically identified in advance.

Keywords

• costs
• cost estimates
• calculation elements
• resources
• value-based sizing