SMS CostIt

Parametric Cost Modelling Software

Parametric Cost Modelling (PCM) is the science of modelling the cost of any object or task by a series of formulae. If formulae are used to represent the relevant aspects of both the objects and tasks in a cost model then we have a parametric cost model. A parametric cost model consists of an unlimited number of formula based costing elements structured into a hierarchical layout.

SMS Cost-it is a standalone parametric cost modelling system. In principal the cost of any item is the sum of the cost of its component objects plus the costs of any tasks needed to process these components into the finished object. A component object is itself the sum of its component objects and the relevant tasks. This principle can be represented by the following formula:-

• • The cost of any item or service can be represented by this rule.
• • This is a fully recursive concept capable of defining the cost of a single bolt or an aircraft carrier.