Engineering estimate

The engineering or “bottoms-up” method of cost analysis is the most detailed of all the techniques and the most costly to implement. It reflects a detailed build-up of labor, material and overhead costs. Estimating by engineering is typically performed after Milestone C (i.e., Low Rate Initial Production (LRIP) approval) when the design is firm, minimal design changes are expected to occur, data is available to populate the Work Breakdown Structure (WBS), drawings and specifications are complete and production operations are well-defined in terms of labor and material.