Master's thesis in Industrial economisesOne of the most critical variables in an engineering project is cost. In cost estimations this variable is studied, analysed, and optimized in order to predict the expected future cost for a project and to control the project execution. The estimated expected cost determines if a project will go ahead or not. It will set the frames for the design, and it provides the foundation of success. But, a cost estimat is only an estimate and have no value if the assumptions, complexity factors, risk and uncertainties haven’t been assessed properly and documented as this is the basis for the investment’s decisions. Adding the different complexity and risk factors requires a good knowledge of previous similar projects. Even though the cost estimates are predicting the future cost, the history can teach us about previous complexities and risks in order to make better expected estimates.
Apply, have since 1979 delivered engineering-, procurement, installation, commissioning and operations support for modifications and maintenance projects on offshore facilities for oil and gas companies in the Norwegian shelf in the North Sea.
Apply is now expanding and in 2018 new business area were defined; Studies, Large Projects and Technology. The objective is to meet the market requirements for more effective project execution.
Cost estimation in Apply is used as input to project planning and execution and are also providing essential information to the Clients decision gates. Good and accurate estimates are important for the business to avoid overruns. On the other hand, overestimating should also be avoided since this will bind up funds and resources that could have been utilised elsewhere. Cost estimation is also part of the tendering process and pay a large role in the company’s competitiveness.
How can Apply meet the clients demand for better predictability in the estimates and increase the company’s competitiveness considering the ongoing improvement processes and new business area?Apply A
