The introduction of advanced manufacturing technology in the aerospace industry poses serious challenges for government cost analysts. Traditionally, these analysts have relied on parametric estimating techniques for both planning and budgeting. Despite its problems, this approach has proven to be a remarkably useful and robust tool for estimating new weapon system costs. However, rapid improvements in both product and process technology could exacerbate current difficulties and diminish the utility of the parametric approach. This paper reviews some weaknesses associated with parametrics, then examines how specific aspects of the factory of the future may further affect parametric estimating. Finally, it suggests avenues of research.
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