University of Twente Student Theses
Engineering Efficiency: Leveraging Data for Optimized Man Hour Estimation
Jansink, Fabian (2023) Engineering Efficiency: Leveraging Data for Optimized Man Hour Estimation.
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| Abstract: | Accurate cost estimation is crucial in an engineering company's project management as it involves forecasting project costs, enabling effective resource allocation, project feasibility assessment, and informed decision-making. Traditional cost estimation methods often rely on subjective expert estimates, while data-based approaches have shown potential but lack practical implementation. The study utilizes a design science methodology to bridge this gap and generate actionable knowledge and solutions. Through a literature review and collaboration with experts, a regression model is selected for cost estimation using available data. However, due to limited and unstandardized data, only 71 projects are included in the model. Various regression methods are tested, and the best-performing model achieves an adjusted R-squared of 0.807 using four significant variables. Nevertheless, the model's high mean absolute percentage error indicates its instability and unsuitability for practical implementation currently. The study highlights challenges such as fragmented data management practices, poor data quality, establishing model trust, and cultural adoption of a bottom-up decision-making approach. Amidst these challenges, there is widespread recognition of the potential value of incorporating data for cost estimation in the future. Addressing these challenges is essential to bridge the gap between academic potential and practical application, ultimately enhancing the effectiveness and real-world utility of cost estimation models. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/96378 |
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